The #1 fear among seniors 20 years ago, was dying too early. Now the #1 fear among seniors is living a long time and running out of money. Running out of money for every day needs and then if they need additional care in the future.

So how do you know how much you should take out?

If you google, “How much should I withdraw from my 401(k) and not run out of money?” You will run into something called the 4% rule. Essentially you take all of your assets and withdraw 4% every year. If you have 1 million dollars, 4% is $40,000 per year.

It can seem almost depressing to read that someone who has worked hard and accumulated 1 million dollars, should only take $40,000/year out to live. And for most people that is before taxes.

One of the main benefits of annuities, is it can guarantee an income stream. Annuity stems from the Latin “annus,” which means year. It can contractually guarantee a set amount every year for the rest of your client’s life so they never have to run out of money. 

If they die early, then the balance goes to their family, if they live a long time, then they lived with confidence knowing they would continue to receive the same amount of money every year and never run out of money, regardless of what the market does, any macroeconomic concerns, or what is happening.

Who is this for?
The Nassau Personal Income Annuity is specifically designed for someone who is within 3 years of retirement and looking for the maximum amount in the form of a guaranteed income stream.

There are other Income based annuities that are designed for people retiring within 4-10 years. 

Always make sure you ask questions to understand what your client’s needs are and what they are looking to accomplish.