How much does your 401(k) guarantee you per year for the rest of your life?

Nothing! Your 401(k) cannot guarantee you an income stream for the rest of your life. 

 When you’re at your job and you have a 401(k), you’re accumulating money for later on. Well you’re retiring, what do you do now that there has to be a distribution phase? 

You need a distribution plan of action for your money for the future. A good consideration for someone who is retiring in the next year to 5 years is an Income Annuity. 

This is how an Income Annuity works: 

Let’s use an example where you’re 67 years old and you put in a lump sum of $200,000. 

 In six years, at age 73, you decide to turn your income on. 

 This would give you $25,000 a year for the rest of your life. 

 Now if you’re older it will be more money per year because when you start income you lock it in. 

 I recently had a client and his wife said “Well, what about me? What if my husband passes away?” 

 Then you would get the balance of what’s left. 

 What’s better to do is a Joint Life Payout where both the husband and the wife are covered. 

 So if your husband predeceases you, the wife gets the same amount of money your husband was getting for the rest of your life. It pays both lives for the rest of your life forever. 

 The reason we’re talking about Income Annuities is because if you want to increase how much your guaranteed income is per month, this will do it for you. It will add on income to your Social Security, your Pension, and this is your annuity money that’s coming in every month no matter what happens.  

*Blog Disclosure: It's not the purpose of this blog post to provide tax, legal and/or financial advice and you should always seek counsel from your CPA, attorney, and/or advisors as these topics relate to your specific needs. This information is being presented in a very general way and it's for illustrative purposes only.