Retirement shouldn’t feel like a guessing game, especially when the market drops. If you’ve worked hard your whole life to save, the last thing you want is to watch your accounts nosedive during a bear market. That’s why creating lifetime income streams—ones that don’t flinch when the economy shakes—is the key to peace of mind.
Let me walk you through how we can make that happen.
Why Lifetime Income Planning Matters Now More Than Ever
The Retirement Reality Check
Many people today are entering retirement without a pension, relying entirely on market-based savings accounts like 401(k)s and IRAs. But here’s the catch: those accounts are vulnerable to market swings, and in a bear market, your nest egg can shrink just when you need it most.
The scary part? Most people don’t know the risk exposure of their investments, and thus don’t understand the extent to which a market downturn could impact them and their livelihood.
What Most Advisors Miss
Too many advisors focus solely on accumulation. But I’m here to tell you: income is everything in retirement. It’s not just about how much you’ve saved—it’s about how much you can consistently spend without fear.
Understanding Bear Markets and How They Affect Retirement
What is a Bear Market?
A bear market occurs when stock prices drop 20% or more from their recent highs. These aren’t just headlines—they can derail your retirement plan if you’re not properly protected.
Historical Impact on Retirement Portfolios
Think back to 2008. Millions lost 30-50% of their retirement savings overnight. That kind of loss at the wrong time could mean postponing retirement or running out of money later in life.
The Power of Guaranteed Income
Why You Need Predictable Cash Flow
When you have a monthly income you can count on—regardless of what the market does—you gain a powerful sense of freedom. You stop checking your portfolio every morning and start enjoying your retirement.
The Emotional Relief of Knowing You’re Covered
A guaranteed income stream gives you confidence. You’re not living in fear. You’re not dependent on stock performance or market trends. You’re in control.
Annuities: The Foundation of Income Stability
How Annuities Work
Annuities convert a lump sum of money into a steady stream of income. Think of it as creating your own personal pension. You hand over a portion of your savings to an insurance company, and they pay you a predictable monthly income—often for life.
Types of Annuities
It’s important to realize that not all annuities are created equal. Variable annuities can be overly risky and are not typically a good option for many people. However, there are certain fixed-indexed annuities that can offer a minimum guaranteed interest rate and income and tie earnings to market indexes like the S&P 500, offering upside potential with downside protection.
When to Consider a Fixed-Indexed Annuity in Your Portfolio
Fixed-indexed annuities can help protect against longevity risk and the fear of outliving your money. It’s a foundational tool for any solid retirement income plan.
The Role of Tax-Efficient Withdrawal Strategies
Why Taxes Are the Silent Wealth Killer
If you’re not careful, Uncle Sam could take a bigger bite out of your retirement income than you realize. Every dollar lost to taxes is a dollar you can’t spend.
Roth Conversions and Strategic Distributions
By converting traditional IRAs to Roths strategically and timing your withdrawals, you can significantly reduce your lifetime tax burden. Just remember to consult your tax professional and financial advisor to make sure the timing and amount of your conversion are beneficial for your situation.
Diversifying Your Retirement Income Streams
Social Security
It’s a foundational piece, but it won’t cover everything. Understanding when and how to claim can greatly impact your lifetime benefit. We can help you determine your best options based on your unique scenario.
Pensions
If you’re lucky enough to have one, that’s great. Just make sure you coordinate it properly with your other income sources. In addition, you’ll want to carefully consider your election for survivorship benefits as this will impact your benefit amount, as well as whether the benefit will continue to your surviving spouse upon your passing. This is an important consideration that we help our clients to understand by mapping out your income in a personalized Income for Life Blueprint. Schedule a time to get your complimentary Income for Life Blueprint now.
Real Estate and Business Income
Don’t overlook passive income streams like rental properties or part-time consulting. More income streams mean greater financial security and flexibility.
Building Your Personal Wealth Recovery Account™
What It Is and Why It Works
This is a special-purpose checking account that serves as a clearinghouse for recovered money—money that was otherwise being lost to fees, interest, and taxes.
How to Set Up Your WRA
Use a different bank than your primary checking account. Fund it automatically with “found money”—the dollars we’ve helped you recover from inefficiencies.
Funding Your WRA with Found Money
From reduced insurance premiums to cutting unnecessary subscriptions, you’d be surprised how many dollars are hiding in your everyday life. Your Wealth Recovery Account™ puts those dollars to work for you.
Inflation-Proofing Your Income Plan
Why Inflation Erodes Your Nest Egg
What costs $1,000 today might cost $1,500 or more ten years from now. If your income doesn’t grow, your lifestyle won’t keep up.
Income Strategies That Keep Pace
Include cost-of-living adjustments in your annuity contracts, invest in real estate with appreciating value, and maintain a balanced growth portfolio for long-term needs.
Avoiding Common Income Planning Mistakes
Relying Too Heavily on Market-Based Assets
Don’t let your entire retirement rest on stocks and mutual funds. A bear market can crush those plans and leave you helpless to the whims of the market.
Ignoring Required Minimum Distributions (RMDs)
Failing to plan for RMDs can lead to massive tax penalties and unexpected income spikes. This is why mapping out your future income in advance is a must. Understanding what you’re working toward helps you make better-informed decisions each step of the way with a clear, overall strategy guiding you forward.
Working With a Fiduciary Advisor Who “Gets It”
What Makes a Fiduciary Different
We’re legally and ethically bound to put your interests first—not commissions. That’s a game-changer in this industry.
Questions to Ask Before Hiring One
- Are you a registered fiduciary?
- Do you specialize in retirement income planning?
- What happens to my income if the market drops?
My Personal Philosophy on Income Planning
It’s All About Designing, Not Guessing
Retirement doesn’t have to be unpredictable. When we design income systems, we remove the guesswork and insert intention.
Every Dollar Deserves a Job
Your money should never sit idle. Every dollar should be working—earning, protecting, or creating more income.
Putting It All Together for Peace of Mind
Creating a Retirement Income Timeline
Map out what income starts when (Social Security, annuities, pensions, rental income, etc.) and align it with your lifestyle needs.
Running Your Plan Through Stress Tests
We test every plan against worst-case scenarios such as market downturns, rising inflation, and a spouse/partner passing away. Our aim is to help you sleep easy, knowing your financial well-being is secure.
Take Control of Your Retirement Story
I believe retirement should be a season of life you look forward to—not fear. With the right plan, including guaranteed income streams that you can rely on, you can live with confidence and clarity.
You’ve worked hard. You deserve a retirement that reflects that.
Let’s build it—by design.
Schedule your free consultation today by calling (619) 640-2622 or by clicking here.
