Page 129 - Ready Set Retire

Ready. Set. Retire!

pay deeply discounted price now, and receive the full $18,000
a year later? What might that bookie be called? And what might
the contract assuring you safe and secure lifetime income at a
much larger payout be called?

Here is one of my go-to strategies. A fixed-index annuity
contract that is guaranteed to double your income base over a
10-year period, and then pay you from 4.5% to 5.5% a year on
that base for life, based on your ages (the payout amount
fluctuates, not the lifetime guarantee). This means if you hold
that annuity for 10 years before taking income, you will get a
payout of between 9%-11% per year for the rest of, not just
your lifetime, but your spouse’s as well, assuming you are
around 55 to 60 when you purchase it. Splitting the difference
between 4.5%-5.5%, here is how this might work to provide
income for life at a deep discount.

$180,000 x 2 = $360,000 x 5% = $18,000

Okay, that got us back to $18,000 a year. How did it help?
Because in this case it’s income for life, not just 10 years! That
means your $180,000 for the time after a 10-year holding
period, pays out for the same amount you could get before for
10 years, but now for the rest of your life.

Wow! Just like the example above! Go figure!

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