Lifetime Annuities

Want to keep receiving paychecks once you’ve clocked out for the last time? Social Security is a guaranteed paycheck (hopefully – read more about why Social Security might be in trouble). However, regardless of risk, Social Security probably won’t cover all of your expenses. If you want guaranteed income to fund your retirement, then you might want to consider a lifetime annuity.

An annuity is a financial product sold by insurance companies. It guarantees reliable income to the purchaser (annuitant) for life (a lifetime annuity) or a predetermined period of time (a term annuity).

 

A fixed lifetime annuity is the type of annuity used most often in retirement. In exchange for a certain premium, it guarantees income in a predetermined amount for life so you don’t run out of money – no matter how long you live.

In other words, it’s a consistent paycheck you can’t outlive. Use a lifetime annuity calculator to see how much lifetime income you can buy. Or, try out an annuity in your retirement plan.

 

The NewRetirement retirement planning calculatorlets you model annuities – and hundreds of other detailed scenarios – to assess how financial decisions impact your future.

Not sure? Learn more about lifetime annuities and how they might help set your mind at ease regarding future cash flow. Another idea for staying liquid: check out these ways to make money at home to earn actual income without the office hours.

Long-Term Care Insurance

Here’s the good news: our life expectancies are longer than ever.

But that means we’re likelier than ever to need some sort of long-term care during our lifetimes. And that doesn’t have to mean a nursing home. From house call professionals who can help with daily activities to home modifications like ramp and grab bar installations, long-term care can help you live comfortably and independently as long as possible.

Those services aren’t cheap, however.

 

According to AARP, out-of-pocket costs for long term care run about $140,000 on average. So even though long-term care insurance can cost as much as $2,700 annually, buying a plan could still end up saving you (and your loved ones) a significant amount of money.

If that sounds like a costly gamble to you, keep your eyes peeled for combination life insurance policies that include long-term care as part of their coverage. They’re more expensive than traditional life insurance plans, but they can maximize the benefits you get for your buck.

 

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