Should You Use A Longevity Annuity For Retirement Income #59
Do you find yourself worrying about the stock market and how the events of the day will impact your investments? Are you looking for an alternative to investing your retirement money in the stock market? If you are someone who is more comfortable with playing it safe and taking a more conservative approach to investing, then this episode is for you! Join me as we dive into the topic of longevity annuities and if they are the right investment - you don’t want to miss it!
You will want to hear this episode if you are interested in...
Understanding what a longevity annuity is [1:15]
How to generate retirement income [3:45]
The benefits of a longevity annuity [6:30]
Closing thoughts [10:00]
Longevity Annuities
Have you ever heard of a longevity annuity? Is it a good option for long-term investing? What are the benefits and the drawbacks?
For our purposes, we will focus on a qualified longevity annuity contract (QLAC). This is a type of deferred annuity funded with an investment from a qualified retirement plan or an individual retirement account (IRA).
A QLAC annuity provides guaranteed monthly payments until death and is shielded from downturns in the stock market. As long as the annuity complies with Internal Revenue Service (IRS) requirements, it is exempt from the required minimum distribution (RMD) rules until payouts begin after the specified annuity starting date.
If you are more concerned with keeping a conservative investment portfolio and you need the security of a monthly payment coming to you in retirement, then you should consider a longevity annuity. To hear more about this critical topic and what it can mean for you and your investments, make sure to listen to this episode.
Find what works for you
If you’ve taken the time to learn about longevity annuities and you find that this option is not right for you, that’s great! Part of discovering what you need in your retirement portfolio is identifying the options out there that won’t work for you. Now that you’ve crossed this one off of your list, what is next to investigate? Have you turned over every rock? To find strategies and solutions that work for you and your investment needs, I hope you’ll continue to join me each week!
Resources Mentioned on This Episode
A Retirement Income Planning Strategy That Works, Ep #2