There are only two places you can go in the United States to get income that is guaranteed to be payable for your lifetime.
One is Social Security provided by the U.S. government, and the other is legal reserve insurance companies.
Social Security is guaranteed only to the extent Congress keeps it’s word on the guarantees. We have already seen the promise that Social Security would be a separate trust fund broken and we have seen the promise that Social Security income would never be taxed broken. It is a hard fact that the rules can be changed any time Congress wants to change the rules. Insurance companies, on the other hand, have to honor the terms of the contract they make with you -they are not free to change things the way Congress can.
Those are the two choices. Nothing else can guarantee a stream of income that will live as long as you do. Stocks, bonds, CDs, mutual funds, or anything else you can name cannot provide lifetime income on a guaranteed basis.
Guaranteed lifetime income from an insurance company -what we call a private pension, is also the perfect supplement to Social Security. If SS income is not, or will not, be enough for you to live on, then a private pension is the answer to increasing lifetime income. It is very simple to calculate exactly how much income you can receive lifetime for an amount of money put into a private pension. Plus, there are numerous other advantages, like safety, creditor protection, predictable growth, and tax deferral.
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