From Wealth-Building to Lifetime Income
You spent your working years building wealth, a nest egg that would support you throughout your retirement years. Your focus was on producing income, creating savings and investments, and a home.
Your tools were likely:
- Working income
- Regular savings
- Regular investments
- Asset allocation
...to lifetime income
Retirement is the time when you can change your focus to using your wealth, rather than earning it. Since you are no longer going to focus on income production, it is important to use your assets wisely, and to generate a lifetime income that will let you realize all of your possibilities.
Your retirement tools are:
- External income - Social Security, Pension
- Lifestyle choices
- Cash flow management
- Guaranteed income products such as fixed annuities
- Prudent investment strategy
Asset allocation does not ensure a profit or protect against a loss.
Fixed annuities are long-term investment vehicles designed for retirement purposes. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply.