In this episode, Alex and Wade answer questions on safe withdrawal rates, annuities, and retirement planning. They discuss the considerations for investing in a Qualified Longevity Annuity Contract (QLAC) and the difference between immediate and deferred annuities. They also explore the use of Single Premium Immediate Annuities (SPIAs) in combination with Fixed Index Annuities (FIAs) and the benefits of buffer assets in reducing sequence risk. Additionally, they address the challenges of finding automatic options for equity investments and provide insights for individuals who are considering retirement but are unsure about their options. Listen now to learn more.
 
Takeaways
Consider the insurance aspect of annuities and view them as a way to protect against longevity risk and provide guaranteed income in retirement.
When deciding between investing and buying a QLAC, focus on the insurance benefits and peace of mind rather than potential investment returns.
SPIAs and FIAs can be used in combination to provide both guaranteed income and growth potential in retirement.
Buffer assets can help reduce sequence risk and allow for a higher withdrawal rate from an investment portfolio.
Retirement decisions should not be solely based on financial considerations, but also on personal fulfillment and well-being.


Chapters

 
00:00 Introduction and Q&A on Safe Withdrawal Rate and Annuities
02:06 Considerations for Investing in a QLAC
04:16 Viewing Annuities as Insurance Products
06:07 Choosing Between Investing and Buying a QLAC
08:45 Using SPIA and FIA in Combination
16:59 Using Safe Withdrawal Rate and RMDs
21:37 Buffer Assets and Sequence Risk
24:47 Automatic Options for Equity Investments
28:40 Considering Retirement Options

 
Links 
Registration for the next Retirement Income Challenge is OPEN: Learn more and join us for this LIVE 4-Day event starting on March 4th-7th, 2024 from 12:00 -2:00 PM ET each day by visiting risaprofile.com/podcast 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"