Amy and Ben are not sure if they will outlast their income in retirement and want to leverage financial products that can generate a secure and consistent income stream.

In order to help Amy and Ben, the first thing we might do is collect some basic goal-oriented information.


Amy and Ben’s Goals Are:


1. To not outlive their money
2. To provide for their children and grandchildren
3. To take advantage of any available tax efficiencies

In order to accomplish these goals, we may suggest a guaranteed income annuity as an option to generate lifetime income. Annuities are provided by insurance companies, who assume the risk. It may be helpful to think of an annuity as a financial tool where you leverage contractual guarantees from an insurance company that provides access to income for life.

Having an objective financial advisor help navigate you through the often confusing jargon of an annuity contract is always advisable.

A good way to understand the numbers of a fixed annuity with an income rider is to distinguish between the two associated values:

  • Regular Account Value: True market value
  • Income Account Value: The value of the guaranteed lifetime income

You can calculate how much lifetime income you can get from your income rider.

To address Amy and Ben’s wish to pass income onto their children, we might recommend a guaranteed income annuity with a protected income benefit rider and free death benefit.

Age is Important. Why?

The income stream calculated by your annuity is based on age, or mortality tables. For instance, someone who is expected to live ten years will get a different amount than someone living 30 years. When you stop to consider these variables, along with the different types of annuities to consider (fixed, indexed, variable, etc.), it can be a bit stressful to navigate your way through to pick the annuity that is best.

Additionally, Amy and Ben will want to work with an advisor who will help structure their financial plan in the most tax efficient way.

Taking Care of the Kids & Taxes

For instance, if you have children—as Amy and Ben do—you will want to know the best way to avoid heavy inheritance taxes on your estate. It is well-known that in general most beneficiaries inherit money in their peak earning years, when they are in their highest tax brackets.

However, with a little forethought and the objective guidance of a fiduciary advisor, you can possibly maximize the tax-deferred growth of your annuity by controlling when inheritance taxes are paid. It’s one of the core obstacles that many retirees face. If overlooked, it can take a significant bite out of the income you pass on and dramatically reduce your legacy.

If you face a similar predicament and are ready to seek more information, you can set up a complimentary consultation with one of The Terrio Group’s financial advisors by calling the number below or using our online appointment scheduler, also accessible below.


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Port St. Lucie, FL 34986
2104 SE Rays Way
Stuart, FL 34994
5201 Eden Ave.
Edina, MN 55436
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