How to turn your lifetime savings into income!

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During our working years our most valuable asset most definitely has to be our ability to work and thereby earn a monthly paycheck. Most people rely on that paycheck month after month so that bills that are due can be paid on time and families rely on the paycheck to maintain a certain living standard.  Those paychecks hopefully also gives an individual the ability to start saving for the future so that dreams such as buying a house, sending kids through college and most definitely retirement can happen.

Once you enter retirement and the paychecks are left behind it is now time to turn your lifetime savings into income and create a cash flow stream that can replace the paychecks that you were receiving while working as a nurse.

Over the years there has been many ideas on how to maximize income while making sure that the money lasts forever but during longer periods with lower than usual interest rates it can be more challenging to generate income without taking on too much risk.

There are multiple ways to generate income and some of the more popular ones are:

  • Create income through interest from an investment portfolio of stocks and bonds
    • Biggest risk loss of principal,market fluctuation and sequence of returns
  • Create a bond portfolio that produces income
    • Rates are historical low
  • Create income through a variable or fixed annuity with lifetime guaranteed* “paychecks”.
    • Fees can be higher than a regular investment account and money is not as liquid
  • Create income through a Single Premium Annuity
    • This can generate the highest payout but money is locked up

In Wade Phau’s white paper** he talks about the best ways to create income and analyses whether insurance, investments or a combination of both creates the most efficient retirement income and he concludes that by combining life insurance, income annuities and regular investment account there is a greater potential to generate higher income as well as legacy.

 

*All annuity guarantees are subject to the claims paying ability of the issuing insurance company.

**http://retirementresearcher.com :The material in this website, which includes Wade Phau’s white paper, was prepared by an independent third party and are not necessarily the opinions of Guardian

Written by CreativeNurse Team 2015-15646 Exp.12/17