How do you take the investments in your retirement plan and use them to generate a reliable stream of retirement income?
Do you choose safe, guaranteed investments that provide a low rate of return with little inflation protection, or do you invest for growth, taking on the risk of negative returns?
The Income For Life Model® provides a solution. It is a combination approach that helps to increase your retirement plan income while minimizing risk.
Most importantly it is easy to understand, which means you are more likely to stick with the strategy which gives it the best possible chance of achieving excellent results, and delivering a reliable stream of retirement income.
The model takes your retirement assets and helps you allocate them across six time segments as follows:
- Time Segment 1: To provide income for years 1 -5, using safe, guaranteed investments.
- Time Segment 2: To provide income for years 6-10, using medium risk, income producing investments.
- Time Segment 3: To provide income for years 11-15, using growth investments.
- Time Segment 4: To provide income for years 16-20, using growth investments.
- Time Segment 5: To provide income for years 21-25, using aggressive growth investments as you will not touch this bucket for the first twenty years of retirement, giving these investments the time they need to grow.
- Time Segment 6: To provide income for years 26-30, using aggressive growth investments, as you will not touch this bucket until your twenty-sixth year of retirement, giving these investments the time they need to grow.
Investing in growth and aggressive growth sounds scary, but the way the model works the largest portion of your investments go to the first two buckets which are invested conservatively.
For an example, and to see exactly how this strategy works, watch the Income For Life Movie, about ten minutes long. It provides a step by step animated guide as to how to create a source of reliable retirement income. It also has a search feature allowing you to seek an advisor that follows this type of model.
Take the time to watch the Income For Life movie all the way through; trust me, your retirement income is worth it.
