How Many Millions Is Enough To Retire?

Shawn Plummer

CEO, The Annuity Expert

When it comes to retirement, many people think they need a lot of money saved to live comfortably. Fortunately, this isn’t always the case! You can retire comfortably without having millions of dollars saved in many different ways. This guide will discuss some of the best ways to retire comfortably on a budget. So don’t worry if you don’t have millions saved up – plenty of options are still available!

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You Don’t Have To Save Millions To Retire (Reduce The Anxiety)

A 43-year-old male desires to retire at age 65 and wants a consistent monthly income without worrying about running out of money. We reversed-engineered his income goals since annuities are the only type of retirement plan to guarantee this, but what did we discover?

A one-time deposit of $287,759 into a deferred annuity with a lifetime income rider generated $50,000 a year for the rest of his life, even after the annuity ran out of money. That’s not much savings at all. And guess what? He’ll control his money, pay less than average fees, never lose money to a stock market crash, and provide a death benefit to heirs if anything is left in the annuity’s account.

Let me say this another way. $575,518 in an annuity today, at age 43, will guarantee $100,000 a year for the rest of an annuity owner’s lifetime, starting at age 65. That’s less than $1 million saved!

Take Back Control And Guarantee Your Future Income

Annuities are the only retirement vehicle that can provide a guaranteed income for life because they’re a form of insurance. We can now plan for tomorrow’s future due to these guarantees.

You will never know the results of your IRA, 401k, equities, bonds, and other assets. And because the guessing game is accurate, you now have power over your future. Avoiding guesswork is why annuities are an excellent solution for those who want control over their lives.

Avoid Recovery Time At All Costs

Guess what? Most annuities are insurance policies protecting against a stock market crash. Most financial professionals don’t discuss the recovery time or “sequence of returns” when the market dips and we enter a Bear Market. It can take YEARS to break even; while the financial advisors collect their fees and manage your money, your savings are hurting.

Prepare For Inflation

The lifetime income generated from annuities can and will increase your monthly paychecks to either maintain or exceed inflation rates, and in the end, you’re ahead of the game.

Avoid Paying Taxes On Your Income In Retirement

Roth IRA annuities provide an income for life, and no taxes are owed on the distributions (as long as you follow the IRS rules). Maxing out Roth’s contributions should be the priority. Between increasing taxes and inflation, you will reduce your lifestyle somehow. Moving to a state that doesn’t tax retirement income or doesn’t have state taxes will help your retirement even more.

Note: Once a Roth annuity is depleted, any supplemental payments from the insurance company may be subject to tax, as they no longer originate from tax-exempt contributions or profits, contingent on the distribution method. 

Reduce Taxes On Everything Else

After your Roth IRA annuity is maxed out, a nonqualified deferred annuity should be your second priority. Why? Only the interest is taxable, and there are no contribution limits like other retirement plans.

Say No To Hefty Fees

Most annuities will deduct less than half the fees from the account that wealth managers charge. Fees should start between none and 1.5% annually. Use an expert to help you find the “right annuity”; otherwise, you could pay 3% to 4% annually.

Protect Your Loved Ones

Most annuities provide the annuity’s value at the owner’s death to the designated beneficiaries in a lump sum and most often avoid probate. Spouses can avoid the tax bill and continue the contract through Spousal Continuation.

Why Aren’t Financial Advisors Recommending Annuities To Me?

Reasons why is a dicey question. I’ll break my opinion into three categories:

  1. First, they don’t understand and are not willing to understand annuities.
  2. They can’t sell annuities because of their employer.
  3. If advisors are not managing your money in the market, they can’t charge fees; if they’re not, they’re not making money. Yes, a commission is made upfront from the sale of an annuity, but nothing else afterward. Who works for free?

Next Steps

There’s no doubt that annuities are one of the best options for retirement planning. And with so many different types of annuities available, everyone has an option. So, if you’re ready to start planning for your future and want to enjoy a comfortable retirement income, request a quote today. We can help you find the perfect annuity to fit your needs and provide you with all the information you need to make an informed decision. With our help, you can retire earning six figures a year without breaking the bank – so don’t wait any longer!

How To Retire On A Budget

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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