Page 152 - Ready Set Retire
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Stephen J. Kelley
how much it will pay you in income if you start today, but how
much income it will pay you later if you delay. Here’s how it
works.
You give the insurance company your money, and it invests it
in very safe general fund accounts (the same accounts backing
its life insurance policies) for a period of time...say 10 years.
After that 10 year period the insurance company will guarantee
you a payout based on the time it has had to manage your
money and your age. Here your income for two people at age
70 after waiting 10 years would be about $55,000. Guaranteed.
For the rest of your lives. And you don’t have to take income
at 70. If you wanted income, at, say 65, it would be $35,039.
The longer you wait, the more your annual income.
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