Guaranteed Income Floor: How to build it
The Annuity Man
With over 10,000 baby boomers reaching retirement age every single day, most are looking to establish a contractually guaranteed income floor. That income floor is the money that hits your bank account each month regardless of what happens in the stock market and the world.
Your income floor can be comprised of many different financial products and strategies. Social Security payments, pension payments (if so fortunate), RMDs (Required Minimum Distributions) from your IRA, dividends, interest, and annuities can all be a part of your guaranteed income floor.
Annuities are the only financial product on the planet that contractually guarantees a lifetime income stream. Regardless of how long you live and if there is a penny in your annuity account, that annuity company is on the hook to pay. That's the unique benefit proposition that only annuities can provide.
Using income annuities in your "income flooring" strategies can be done by implementing a lump sum to find out the income stream, or reverse engineering the quote to solve for a specific monthly income amount. Annuity income is a combination of return of principal plus interest, and is primarily based on your life expectancy at the time you take the payments. Interest rates play a secondary pricing role.
Contact Stan The Annuity Man to get the best and highest contractually guaranteed quotes with all carriers using Stan's proprietary annuity calculators. You can also receive Stan's 6 Annuity Owner's Manuals for free and under no obligation, and see a live feed of the best fixed rates for your specific state of residence.