<Finding Money For More Retirement Income>

R e t i r e m e n t   I n c o m e   S o l u t i o n s, L L C

Because . . . retirement is for a long time and a LOT of money!


Starting Strong and Staying Strong .  .  .

Finding money in the later retirement years often can be difficult. Many times interest income and investment earnings may be insufficient to meet increased living expenses and health care costs.

This often occurs as the investment profile becomes more “conservative” during retirement years, and when interest rates decline and remain low for long periods. This circumstance must be anticipated by those doing their retirement planning at the present time.

The Real Problem May Be
In addition to the obvious--there may really be insufficient assets to meet all the needs --income insufficiency also may be caused by:

  • Inappropriate type of investment vehicle
  • Insistence on principal preservation
  • Changing (increasing) needs
  • Uncertainty over duration of need.

For many seniors who find they need greater income, the real problem is not insufficient income-producing assets, but assets which are not capable of producing sufficient income without consistently consuming the investment base, and thereby producing less and less income in succeeding years.

Often, the need is for more investment income, but the desire is to not diminish investment principal. The desire not to diminish principal may be so that the interest-earning base is not reduced. It also may be to preserve the asset for loved ones.

It frequently happens that the portfolio producing the interest, dividend, and "capital gain" income does so at the risk of its market value. Bonds and bond funds (utility, industrial, and government issues) can be very volatile and lose considerable principal in periods of rising interest rates. Dividends can go up and go down (they often do both). And we know how much investment principal can decline in periods of down markets. These negative results usually seem to happen at the wrong time.

A powerful and exciting tool is now available to improve the likelihood of safety, stability, and moderate/"reasonable" mid-range growth of your assets. Growth which guarantees against any loss of principal, and which offers a "higher-than-average chance at higher-than-average growth". This tool is designed to safely return a level of income (should that be your wish) which exceeds the examples above, on average, and enables principal conservation. Click on "Stock Market Gains Without Losses" for a presentation.

Income shortage may be the result of specific conditions such as low interest rates in general, pension COLA's that may not have kept up with inflation, or it may be the result of greatly increased expenses related to health care/long-term care issues. And with respect to long-term care, often the concern is how long assets may last given $50,000 to $80,000 annual expenses. Even total assets of $1,000,000 may be entirely consumed, and may not last as long as the need.

Sometimes, Our Parents Keepers
The insufficiency of investment or interest income during retirement may also be a big consideration for those who have parents in their seventies and eighties. Either the parents find things difficult, and/or the adult “children” in their forties, fifties, and sixties, who are planning for their own retirement, have nagging concerns whether they may need to provide some financial support to their parents, at some time in the future.

Happily, for many there is a way to accomplish these objectives, safely and simply, and leave everyone in a better position. We have termed the concept “Finding Money"
(see discussion below).

The “Finding Money" Concept

We have been able to “find” as much as 30%, 50%, yes, even 100% and more, additional interest income for retirees by repositioning their current low yielding investments. This is done by way of a SPIA (a Single Premium Immediate Annuity).

A "variation on the theme" may involve the use of a life insurance policy to replace the assets that go into the SPIA. The use of a specially constructed SPIA and a specially constructed life insurance policy can guarantee these results.

The SPIA pays a lifetime income beginning 30 days after issuance. The life insurance is guaranteed to last longer than the insured! And, after paying the insurance policy premium, the monthly increased income is 30%, or 50%, and even 100%, and is guaranteed for life.

The principal that is replaced by the life insurance will pass to children, grandchildren, or whomever is desired, income tax-free!!   Safe, Simple, and Sure.

Could these ideas benefit you?  Help is only a mouse click away!

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