The Key to Lifelong Happiness
Retirement marks a significant life change going from the accumulation phase to the distribution phase and is often accompanied by dreams of leisure, travel, and relaxation. While many individuals diligently accumulate assets throughout their working years, recent research suggests that prioritizing a stable income in retirement may be even more crucial to one’s happiness and financial security. We will briefly explore why income takes precedence over assets in retirement planning and how a fixed guaranteed income annuity can play a vital role in achieving this financial peace of mind.
The importance of income as a key to happiness in retirement cannot be overstated. Why does guaranteed income in retirement bring happiness?
- Financial Security: One of the primary concerns in retirement is ensuring a steady income stream to cover essential expenses (and the fun stuff, too). Relying solely on assets may lead to anxiety about market volatility and the fear of outliving one’s savings.
- Peace of Mind: A predictable income allows retirees to plan confidently, knowing they can meet their daily needs without the stress of market fluctuations. This peace of mind is invaluable for overall health and well-being, especially in your retirement years.
- Maintaining Lifestyle: Income in retirement can help maintain the desired lifestyle, whether it involves travel, hobbies, or supporting loved ones. Assets alone may not guarantee the same level of financial flexibility and can be lost if not guaranteed.
So, how do these products deliver happiness and less stress?
- Steady Income Stream: Fixed guaranteed income annuities provide a reliable source of income, often in the form of monthly payments, for the duration of the contract (typically lifetime). This stable income helps retirees meet their basic needs comfortably and reduces the worry of running out of money before you run out of life.
- Protection Against Market Risk: Unlike investments tied to the stock market, fixed annuities are not subject to market volatility. This shields retirees from the stress of market downturns, ensuring that their income remains consistent.
- Longevity Protection: One of the greatest fears in retirement is outliving one’s savings. Fixed annuities may include options that guarantee payments for life, effectively addressing this concern.
- Customizable Features: Fixed annuities may be tailored to individual needs. Some offer inflation-adjusted payments, joint options for spouses, or even incomes that can grow, providing flexibility in retirement planning.
- Tax Advantages: In some cases, income from fixed annuities may have tax advantages, depending on local tax laws. Consultation with a Certified Financial Fiduciary® is recommended to understand the tax implications fully.
Happiness and peace of mind often hinge on a dependable income source in retirement. While assets are undoubtedly important, they can be subject to market volatility and may not provide the financial security retirees desire. Fixed guaranteed income annuities offer a solution by providing a steady and predictable income stream, shielding retirees from market risk, and helping “insure” a comfortable and worry-free retirement. When considering retirement planning, it’s wise to prioritize income alongside your asset accumulation strategies to build a solid financial foundation for your golden years.
Get with an independent Certified Financial Fiduciary® today to determine the best plan for your situation.
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