Retirement Income Strategies

The Floor-and-Ceiling Retirement Income Strategy

One of the hardest parts of retirement isn’t just leaving work — it’s replacing a steady paycheck with income that’s anything but steady. Markets fluctuate. Expenses come in waves. And the future is always uncertain. Retirees often find themselves stuck between two fears: spending too much and running out of money… or spending too little and missing out on the life they saved for.The floor-and-ceiling retirement income strategy is a flexible retirement income system that sets a safety net to protect your essentials (the floor) and a cap to prevent overspending (the ceiling). Within those limits, your income can adjust…
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Guardrails Retirement Income Strategy

The transition from saving for retirement to spending in retirement can feel like walking a tightrope. Spend too much early on, and you risk running out of money. Spend too little, and you may miss out on the very life you worked hard to enjoy. That’s where the guardrails retirement income strategy comes in—a flexible, rules-based approach designed to balance risk and lifestyle across your retirement years. What Is the Guardrails Strategy The guardrails strategy is a dynamic retirement withdrawal method that adjusts your income based on the performance of your investment portfolio. It was originally developed by financial planner…
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Navigating Variable Income Strategies in Retirement

Retirement income planning involves careful consideration of how to fund your lifestyle and future goals. Variable income strategies provide a flexible approach to withdrawing from a retirement portfolio by adjusting the amount withdrawn based on various factors like market performance, life expectancy, and portfolio sustainability. Unlike reliable income strategies, where income is drawn from sources like social security, pensions, or annuities, variable strategies seek to adapt over time to create a balance between spending and optimizing portfolio longevity.Nearly every retirement planner uses some variation of the strategies discussed here. However, there are many strategies out there, so I'll just be…
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Understanding Benefit Base vs. Cash Value in an Annuity

Annuities are a staple in retirement planning, offering a mix of benefits that can provide peace of mind in the later stages of life. However, navigating the components of an annuity, particularly the distinction between the benefit base and the cash value, can be confusing. To simplify this, let's explore these concepts using a relatable analogy: a store coupon. The Benefit Base: Your Special Store CouponImagine you receive a coupon from your favorite store. This coupon is not cash; it has no value outside the store. It’s only useful for getting a discount on a future purchase or redeeming a…
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The Basic Types of Annuities

Annuities are contracts with an insurance company that provide certain benefits. There are many types of annuities out there and the terminology and usage can be confusing. This article provides and overview of the basic types of annuities and their variations. Quick Annuity Primer Base Contract: Every annuity starts with a base contract. The base contract has certain guarantees embedded it such as minimum interest rates, annuitization factors, fees, surrender charges, how the cash value can be invested. Riders: Some annuities have the option to add riders. Riders are additional features that can be added to the base contract to provide additional…
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