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!
Home | About Us | Pre-Retirement Planning | Defined Benefit Pensions |
Finding Money | Long Term Care | Life Insurance Checkup | Additional Subjects | Contact Us |
Great effort has been made to assure accuracy of the representations on
these pages. It is possible that there may be technical inaccuracies or
typographical errors, Improvements, updates, and changes in the materials
contained herein or described on this site may be made at any time without
notice. Product availability and benefits are
subject to various state licensing and regulatory authorities.
Copyright © 2005 Retirement-Income-Solutions.com. All rights reserved.
