July 1, 2014 – Your retirement safety net options just got a whole lot better.

Effective today, 401(k) plan participants now can choose to dedicate a portion of their retirement funds toward the purchase of “longevity insurance,” otherwise known as a deferred income annuity, in an effort to shore up their retirement security.

Here’s a good summary of what’s taken place from today’s New York Times.

These final rules now permit individuals to hedge their bet against one of the greatest risks to their retirement security – running out of money!

Because the road of life is of unknown distance making it critical to prepare for what’s around the next turn, prudent travelers will want to make sure they pack enough money for their journey so they can pay whatever tolls they might encounter along the way.

It’s especially critical to make sure you have enough funds for later on down the road when other cash resources may have been used up.

Social Security helps by providing you with income you can never outlive.

Pensions, once the staple of the American workforce but now nearly extinct, do the same.

But beyond that, conventional retirement planning leaves it up to you to be smart enough or lucky enough to manage your accumulated wealth in such a way that it will sustain you throughout your retirement.

Many financial professionals recommend planning on spending down your wealth over a thirty, sometimes forty, year time period.

There’s one major problem with this approach:

You don’t know how long you’re going to live.

What if you hit the 30-year or 40-year mark and are still kicking?

Wouldn’t having a little extra “just in case” security help you sleep a little bit better at night?

Longevity insurance helps solve this problem and these new Treasury rules make it possible for you to create your own pension-like cash flows you can never outlive.

Let us know how we can help!  We’re happy to assist you with creating your own safety net with any retirement funds you want to set aside to secure your future.

By allocating as little as ten percent of your funds, you can create a future security blanket that will give added assurance that you can take care of yourself in your later years.

Fad soal agat!