Are you concerned about running out of money in retirement? As a soon-to-be retiree, do you desire to do all the things you put off during your working years but aren’t sure if that will cause major financial problems 10 or 20 years down the road? You are not alone. Many people without a company pension are in this exact situation. Read about the financial risks of a lengthy retirement to better understand some of the uncertainties you will face in retirement.
Qualified Longevity Annuity Contracts (“QLACs”) were created a few years ago by the Internal Revenue Service to help retirees manage financial risks in the later years of retirement. QLACs require an upfront investment from a portion of your 401k/403b/IRA balance, at the time of retirement, in exchange for a guaranteed monthly lifetime income that originates later in retirement. Best of all, income from a QLAC cannot be outlived regardless of what happens with other retirement savings during the earlier years of retirement.