Will you outlive your funds? – St George News
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SPECIAL FEATURE –What if you live longer than expected? How do you make sure your money lasts for as long as you do it?
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Do you invest in stocks? Bind? Do you keep your money in the bank? Increased life expectancy increases the amount of time we need for our retirement plans, and making sure our money lasts as long as we do it has become the new “mantra” of baby boomers.
Many financial planners are turning to products that eliminate the risk of the longevity problem so that an insurance company can bear the longevity risk, annuity companies issue and manage annuity products.
There are many types of annuity products, including those that pay interest (yield), that are similar in structure to bank CDs. The real benefit of pensions, however, is income maintenance, an income that can be paid for any period of time, even for a lifetime.
The question that is often asked is, “What happens to the money from a pension if a person dies early? Does the pension insurance keep the money? “
The answer is no; It’s an old women’s tale that insurance benefits from an early death. The unused part of the pension will only be reimbursed to the named beneficiary. Funds are always settled, and it is the law.
Consider holding an insurance company responsible for your important, long-term, secure retirement income. Safety and protection is their top priority.
One last tip: shop around for the best prices. Prices can often be based on age, and the options are numerous.
Copyright © Lyle Boss, all rights reserved.
Lyle Boss is a member of Syndicated Columnists, a national organization that advocates a fully transparent approach to money management. As an asset protection instructor, he has helped thousands of seniors find their financial retirement options. Its clients include government employees, teachers, doctors, farmers and business people, to name a few. Boss has been actively teaching advanced estate planning and wealth preservation for more than 20 years in locations like the University of Utah and in over 200 Senior Retirement Consumer Education Workshops throughout Utah, Idaho, and Wyoming. Boss and his wife Deanna live in South Ogden and St. George, Utah.