In this episode, Alex and Wade answer questions on safe withdrawal rates, annuities, and retirement planning. They discuss the considerations for investing in a Qualified Longevity Annuity Contract (QLAC) and the difference between immediate and deferred annuities. They also explore the use of Single Premium Immediate Annuities (SPIAs) in combination with Fixed Index Annuities (FIAs) and the benefits of buffer assets in reducing sequence risk. Additionally, they address the challenges of finding automatic options for equity investments and provide insights for individuals who are considering retirement but are unsure about their options. Listen now to learn more.

Takeaways

• Consider the insurance aspect of annuities and view them as a way to protect against longevity risk and provide guaranteed income in retirement.
• When deciding between investing and buying a QLAC, focus on the insurance benefits and peace of mind rather than potential investment returns.
• SPIAs and FIAs can be used in combination to provide both guaranteed income and growth potential in retirement.
• Buffer assets can help reduce sequence risk and allow for a higher withdrawal rate from an investment portfolio.
• Retirement decisions should not be solely based on financial considerations, but also on personal fulfillment and well-being.
  

Chapters

00:00 Introduction and Q&A on Safe Withdrawal Rate and Annuities

02:06 Considerations for Investing in a QLAC

04:16 Viewing Annuities as Insurance Products

06:07 Choosing Between Investing and Buying a QLAC

08:45 Using SPIA and FIA in Combination

16:59 Using Safe Withdrawal Rate and RMDs

21:37 Buffer Assets and Sequence Risk

24:47 Automatic Options for Equity Investments

28:40 Considering Retirement Options

Links 

Click here to watch this episode on YouTube: https://youtu.be/i7m_2-uovIs?si=9Nqq_iaLiUNnb_UM

Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast 

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”