Income Now or Income Later

You've probably wondered whether life insurance or annuities make more sense for your retirement income strategy. This episode breaks down the key differences between these two approaches and helps you understand when each one works best.

We explore why life insurance is like a "crockpot" that needs time to develop - typically requiring at least 10 years before you should consider taking income from it. In contrast, annuities work more like a "microwave," allowing you to start guaranteed income payments much sooner, sometimes within months of purchase.

You'll learn about the significant tax advantages that life insurance offers, including tax-free distributions that don't affect your Social Security taxation. We also cover how annuities provide guaranteed income certainty but come with different tax implications that you need to consider.

The discussion includes specific scenarios based on your age and retirement timeline. If you're planning to retire within the next 10 years, annuities are likely a better option. If you have more time, life insurance could provide better long-term value.

We also address why you don't have to choose just one approach. Many clients successfully use both strategies as part of a comprehensive retirement income plan that maximizes their financial flexibility.
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Ready to explore which income strategy fits your situation? Contact us to discuss your specific retirement planning needs and see how these tools might work in your financial plan.