How To Get Paid in Retirement

Sometimes we hear retired and think of a couple who sits on the front porch and watches the world go by. The house and cars are paid for, so they have almost no expenses and little need for anything more than a basic income.

But retired isn’t dead. In fact, many clients spend 20 or more years in retirement. Wouldn’t it be nice to help them enjoy it? One of your biggest jobs as a financial advisor is securing that retirement income stream for your clients and also giving them the confidence to use it. Last July, ThinkAdvisor published an article called: “Why Annuities Work Like a License to Spend in Retirement,” and it brings up some valid reasons to include annuities in your planning.

A key point is that for every asset that is transferred from AUM to a guaranteed income source results in 50% more spendable income.

Generally, when a client takes income from an asset, they only take half the amount of income that an annuity can generate. And more spendable income means a more stress-free retirement.

I’d like to add two additional advantages to annuity planning:

1. By designating a specific piece of your client’s portfolio to providing guaranteed income — and an annuity is one of the best ways to do that — you can actually free up additional funds to add to your AUM. You don’t have to choose one or the other, and the guaranteed income will allow them to feel confident about spending in retirement.
2. If you have clients with more than one annuity, you can set up two equal annuity payments each month –one to pay on the 15th of the month and the other on the 30th. Your clients used to two regular paychecks a month will appreciate continuing this pattern in retirement, again reminding them that they have a disposable income right at their fingertips.

It’s a simple concept, but one that goes a long way to help clients feel confident with their retirement planning. Your Ash Retirement Income Consultant can help walk you through a specific strategy for each of your clients. Call us at (800) 589-3000.