Profit Streams for Life
ldquo;Now his pension planrsquo;s been cut in half and he canrsquo;t afford to die,rdquo; sings John Rich, of the country music duo Big amp; Rich, in his new, controversial song, Shutting Detroit Down. Two things nobody is ever financially prepared for, especially if he or she is a money spender: retirement and death. Financially talking, it is hard to die at the right time, unless you know much more than anyone else and can plan your death. People are so wrapped up in saving for retirement, 401k plans, life insurance plans, IRAs, money markets, or anything else they can find that will provide further money for retirement and death. If you die too premature, the paychecks your family was living off of are finished. If you die too late, you impoverish your family or confine yourself to an distasteful local retirement home by depleting your savings.brbrOne unforeseen side effect of the recession is a jump in sales of fixed immediate annuities, which dispense guaranteed income for life. New York Life reported an 82% sales increase this quarter alone. A man at retirement age paying them $100,000 now will receive $650 a month for life, which is perfect for a retired man whose house and vehicle are paid off and bills are low. Thatrsquo;s equal to 7.8% of the total each year, twice over what most retirement investments pay out.brbrChristopher Blunt, who runs New York Lifersquo;s retirement division believes that annuities offer the top way to lock in guaranteed retirement income. Retirement income is generated from a stock-and-bond portfolio requires keeping plenty of assets in reserve in case theyrsquo;re needed to fund a extended life or contend with a nasty bear market,rdquo; he says. The point is that you can get the same retirement income as you could from your portfolio, with 25% to 40% less principal.brbrThe way they generate superior retirement income is by transferring it from those who do not collect it to those who do. For instance, if you pay them $100,000 and die three days later, your money is gone and goes to someone who is still collecting. Though, if you live until yoursquo;re 85 and you have been collecting since you were 65, you have received $156,000 over the tenure of the relationship, over 50% profit. If you are lucky to live to 95, you have likely received $234,000, with a profit of nearly 150% of what you paid. For those who are healthy at 65, it is a superior investment, especially if that person also has savings and stocks to tide over through bad times or to leave to their families. Assuming you are in good health, there are little downsides to a fixed annuity, especially if you keep your product features uncomplicated. You pay $100,000 of your savings to provide for the rest of your life. If you have been saving well for retirement, you likely still have $350,000 to leave to your family whether you save or not.brbrVisit a href=http://www.thelucrativeinvestor.com target=’_blank’Lucrative/a for free investment picks, resources, and news for the average investor to help level the playing field. a href=http://www.thelucrativeinvestor.com target=’_blank’Investing Investor/a, we help make every investment a lucrative one.brbra href=http://www.freeinvestmentblog.com/free-investment-tips/circulated-silver-coins-how-to-buy-junk-silver-coins/ target=’_blank’silver bullion bars/a - profitable investment and the best way to save paper money from inflation! Visit us and find out more!
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