Income Planning And Math; Be That Nerd | Lang Capital


If you are a regular Pete's Blog reader, you have probably noticed that I end some columns with the statement "be vigilant and stay alert." I do believe that is some of the best advice I can give with respect to creating a sound financial system. I teach and preach that same mantra to my clients and, therefore, encourage them to read a lot and question even more.

So it is not surprising that a client called me last week to ask about a recent article she had read in Forbes Magazine that discusses creating an income plan for retirement.

The article she read focuses on a financial strategy that does not use any annuities for income planning. An annuity is a contract with an insurance company where you give them a sum of money and depending on the amount given, they guarantee a set amount of income for life. (A good example of an annuity is Social Security. You give Uncle Sam your money, paycheck after paycheck, and in turn, he pays you income for the rest of your life.) If you have been listening to mainstream media, annuities have somehow become the ugly stepsister to more traditional investment strategies.


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