Page 39 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know
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Receive lifetime income without giving up control of
your money
This is something that only insurance companies can provide and makes
planning for retirement extraordinarily easy compared to a traditional
money manager.
Long life vs. Good life
When you plan for income from your savings, you have to plan for one
(or two) individuals. You don’t know how long you will live, but you
must plan for a long life, and try to balance that against taking the
maximum amount of income so you can have a good life!
But the two are always in conflict. Long life says you spend less. Good
life says you spend more and run the risk of running out of money. So
typically, your advisor will tell you to take no more than 4% of your
investments every year. That means if you have accumulated $1
million, you get income of $40,000 per year. And you thought you were
going to be rich!
The insurance company doesn’t have to do this. It knows exactly how
long you will live, so it can give you the exactly correct amount of
money to live the best and longest life possible. Know-So Money!
Well, it doesn’t really know how long you will live, but it isn’t dealing
with just you. It is dealing with tens, maybe hundreds of thousands of
individuals with needs very similar to yours. So it can calculate with
scientific certainty how many people will live to what ages. And since
you are in that pool with an annuity, you get to take advantage of it.
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