Part II: Basics of Income Planning With Annuities

Income planning with annuities in retirement is not complex, regardless what any of the commercials on prime time TV suggest.  Taking things one step at a time is the key to simplifying the process.

There are all sorts of differences between the things that are important in retirement.  This one specifically addresses a very simple way to deal with the income side of things.  Once all forms of passive income have been added up you will find the monthly or annual income gap.  Many agents stop there and just recommend a product that fills the gap.  While that may be adequate I have found a different process to be more effective.

A monthly or annual income gap is important to identify but the cumulative, long-term cost is a much bigger indicator that will determine whether you are funding the annuity with the appropriate amount of money.  This builds from my previous post on maximizing social security, using numbers that are loosely related to a recent couple I worked with.

Check it out and let me know if you’d like me to run some numbers with you.