Does Your Retirement Portfolio Include GUARANTEED Income? Here’s Why It Should
When most people think about retirement, they picture freedom: traveling, spending time with family, enjoying hobbies, and living life on their terms.
But here’s the question I always ask:
Does your retirement portfolio come with guaranteed income?
If you're like most Americans, you were handed a 401(k), TSP, or 401(a) at some point in your career—but you were probably never taught that there are ways to guarantee your income in retirement, no matter how long you live.
The 3 Sources of Lifetime Income
There are only three primary sources of income that can guarantee payments for life:
Social Security
It’s technically a form of annuity. But it’s also uncertain. With ongoing debates around funding and policy changes, many people aren’t comfortable relying on it as their only source of lifetime income.Pensions
These are becoming increasingly rare. Unless you work in government, military, or a legacy company, chances are you don’t have access to one.Annuities with Guaranteed Income
Think of this as a personal pension plan. It allows you to insure your retirement income, ensuring you'll receive regular payments for life—even if your original investment is depleted.
Why Guaranteed Income Matters
Here’s a quote from Time Magazine that says it best:
“Securing at least a base level of lifetime income should be every retiree’s priority—at least if they want to live happily ever after.”
Guaranteed income provides peace of mind. It means you won’t have to worry about outliving your savings, or being forced to penny-pinch when you’d rather be enjoying life.
The Psychology Behind Income Security
A 2019 white paper by financial researchers Dr. Michael Finke and Dr. Wade Pfau found that:
“Annuities give retirees a psychological license to spend their savings in retirement. Surveys reveal a clear preference among retirees to live off income, and many don’t feel comfortable spending down assets to fund a lifestyle.”
In other words, even people who have enough money often hesitate to spend it—because they fear running out.
The solution? Create income you can’t outlive.
Based on studies from financial PhDs, a smart retirement plan should include at least 40% of your portfolio in guaranteed income sources like annuities with lifetime payouts.
What Kind of Retirement Do You Want?
Take a moment and ask yourself:
Do I want to pinch pennies in retirement?
Or do I want to spend freely, knowing my income is secure for life?
If your answer is the latter, then now’s the time to explore your options.
Let’s Build Your Lifetime Income Plan
If you want to explore ways to diversify your portfolio and include guaranteed lifetime income, I can help. My consultations are no-cost, no-pressure, and backed by research-based strategies that prioritize your long-term financial wellbeing.
It’s your money. You deserve to retire with confidence.
Let’s talk about how to make that happen.