Retirement

Determining income needs is the critical factor in successful retirement planning . Reaching a desired amount of savings is useful, but translating that lump sum of savings into an income stream that lasts for many years is the most important financial planning challenge that retirees face. "“When it comes to retirement planning, Americans need to look beyond the ‘number,’” said Fishbein. “We all know what the number is: That magic dollar figure that, when reached, means you’re set in...

Article discusses the importance of immediate annuities--particularly in light of hedging longevity risk . Pros and cons of immediate annuities relative to other forms such as variable and indexed annuities are addressed. A solid article written by an attorney that is likely focused more on an advisor than a consumer audience. "The retirement crisis facing our country for the next 15 years is profound. The Social Security system is under great pressure, lifetime pensions guaranteed by employers...

"Unlike traditional pensions, which provide participants with a steady stream of income for as long as they live, 401(k) plans generally pay out benefits as lump sums. Lump-sum payments mean that retirees have to decide how much to withdraw each year. That's really hard to do, because people don't know how long they are going to live. If they live longer than expected, they face the horrible prospect of running out of money in old age...The way to have the highest standard of living in...

This article addresses the process of using funds in an individual retirement account (IRA) to fund the purchase of an immediate fixed annuity . "Annuity in an IRA" and "trustee-to-trustee" rollovers both enable assets to be transferred directly from an IRA to an annuity. Tax implications are also addressed. Source: Wall Street Journal Full Story (subscription required)