We think putting money in a low-cost tax deferred account and purchasing lifetime income at the end of that period will perform just as well and provide greater liquidity...
Bohemia, NY (PRWEB) May 03, 2013
On May 3, Jerry Golden, developer of Savings2Income, offers advice on annuities in an article published by the NY Daily News that details ways to preserve the longevity of retirement income.
According to the NY Daily News article titled “Worried about Outliving Your Money? More People Are Opting for Longevity Insurance to Fund Retirement” published on April 26, many people are beginning to invest in financial products that guarantee income for a long period of time, such as a deferred income annuity, also called “longevity insurance”. This type of annuity begins regular monthly payments at a later date that the investor chooses – typically at retirement age or later. Usually this means the payouts are higher than buying an annuity when payments start immediately.
The reporter asked Golden to comment on this product since he is an annuity industry innovator, and now heads his own Registered Investment Advisor. Thus, he has both product expertise, and the objectivity of a fiduciary.
Golden said that in today’s interest environment he doesn’t recommend these products for his own clients, but said they could have a place for others.
“We think putting money in a low-cost tax deferred account and purchasing lifetime income at the end of that period will perform just as well and provide greater liquidity,” Golden said. “But for an individual who doesn’t have sufficient savings to have their own investment advisor, they might consider a deferred income annuity.”
“If you do purchase one, be sure to go with a highly rated insurance company”, Golden added.
“While many agents suggest deferred income annuities, a no load variable annuity combined with immediate annuities could perform just as well or even better. A no load variable annuity is typically a better fit for people with a reasonable amount of personal savings, and particularly those who favor liquidity. To create the certainty of retirement income we favor the purchase of guaranteed income in stages.”
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution.