When it comes to having a secure retirement, one of the major concerns is income. How can you be sure to have the money you need to cover your expenses? One way to do this is by choosing a lifetime income plan. But with so many options out there, how do you know which one is right for you? In this blog post, Goldstone Financial Group helps you choose the best option for your needs.
Goldstone Financial Group on How To Choose The Right Type Of Lifetime Income Plan
There are a lot of different lifetime income options available, and it can be tough to decide which one is right for you. Here are five things, as per Goldstone Financial Group, to consider when choosing a lifetime income plan:
1. How long do you want the payments to last?
Some lifetime income plans only make payments for a certain number of years, while others will make payments for as long as you live. If you’re looking for a source of income that will last your entire life, choose a plan that offers lifelong payments.
2. How much income do you need?
Some lifetime income plans pay out a fixed amount each month, while others offer variable payments that can fluctuate based on the performance of the underlying investment. Make sure to choose a plan that will give you the income you need to cover your expenses.
3. How much risk are you willing to take?
Lifetime income plans can be either fixed or variable, and each comes with its own set of risks. Fixed plans offer predictable payments, but they may not keep up with inflation over time. Variable plans offer the potential for higher payments, but the amount you receive each month can go up or down depending on the performance of the underlying investment. Choose a plan that aligns with your risk tolerance.
4. What are the fees and expenses?
All lifetime income plans come with fees and expenses, so it’s important to compare the costs before you choose a plan. Some plans have higher fees than others, so make sure to factor that into your decision.
5. What are the tax implications?
Lifetime income payments are considered taxable income, so it’s important to understand the tax implications before you choose a plan. Make sure to consult with a tax advisor to see how your payments will be taxed.
Choosing the right lifetime income plan can be a complicated decision, says Goldstone Financial Group, but it’s important to do your research and choose a plan that’s right for you. Consider these five factors when making your decision, and be sure to talk to a financial advisor if you have any questions.
Goldstone Financial Group’s Concluding Thoughts
There are many factors to consider when choosing a lifetime income plan that is right for you. It is important, according to Goldstone Financial Group, to understand how each type of plan works and what the pros and cons are before making a decision.