Most Important Sources of Retirement Income

What are the most important sources of retirement income?

That question sounds simple, but it isn’t. Because the answer depends on one thing most people never think about until it’s too late.

Income.

Not account values.
Not balances.
Not statements.

Income.

You Already Own the Best Annuity on the Planet

Let’s start with the foundation.

You already own the best inflation annuity on the planet. It’s called Social Security.

If you’re here legally with a Social Security number, you own it. Period.

That check is part of your income floor, meaning it helps pay the bills and gives you money to live your life. Travel. See your kids. See your grandkids, if they’re still written into the will.

That’s where retirement income starts.

Why Annuities Get a Bad Reputation

This always leads to the same question.

Why is the annuity industry the curse word of the financial business?

I’ve worked on the other side of the ledger. Morgan Stanley. UBS. Big firms. And annuity is the “F-word” in the business.

And I know why.

Too many people learn one annuity product, run a seminar, and sell the same product to everyone in the room. That’s ridiculous. It would be like a doctor giving a seminar and prescribing the same medicine to everyone.

That’s not how this works.

Pensions and the Income Floor

If you’re one of the roughly nine percent of people who still have a pension, congratulations.

That pension is part of your retirement income floor. It usually applies to government workers or a small number of private companies.

It pays you for life. That’s income certainty.

Retirement Accounts Are Also Income Sources

Most people don’t have pensions.

They have defined contribution plans.

401(k)s.
403(b)s.
457 plans.

These are tax-deferred accounts you’ve been putting money into for years. Eventually, those accounts become part of your retirement income.

That money doesn’t just sit there forever. At some point, it turns into income, whether through Required Minimum Distributions or other structured payouts.

That’s still part of your income floor.

Other Sources of Retirement Income

Retirement income doesn’t only come from traditional sources.

It can also come from:

Side hustles
CDs or bonds where you peel off interest
Rental real estate that kicks off income
Any reliable cash flow that shows up consistently

If it hits your bank account and helps pay the bills, it counts.

Chapter Two Is About You

This is where people need to shift gears.

Chapter One of life is about work.
Chapter Two is about you.

It’s not about the kids.
It’s not about the job.

It’s about creating an income floor so solid that you don’t have to worry about markets, news cycles, or chaos.

If the income floor is in place, you’re golden.

Dealing With Inflation the Right Way

The only real enemy of retirement income is inflation.

And the way we deal with that is not with magic products or promises.

We reverse engineer the income need.

If today you’re fine on $5,000 a month, but five years from now you need $5,550, we solve for that difference. We quote all A-rated or better carriers and find the least amount of money required to guarantee that additional income.

That’s reality. Not hype.

How Annuities Fit Into Retirement Income

Annuities don’t have to be part of the plan.

If you don’t need one, don’t buy one.

But when there’s an income gap, annuities can be used in different ways.

A Multi-Year Guarantee Annuity is the annuity industry’s version of a CD. It protects principal. No annual fees. You can peel off interest just like a CD or bond.

Or, if the goal is lifetime income for you and your spouse, annuities can be structured to pay as long as one of you is breathing. And they can be structured so any unused money goes to beneficiaries.

Money does not “go poof.” That’s a myth.