When we talk with prospects and clients most have a common concern, "Will we have enough income to maintain our lifestyle in retirement?". Income, not investments, are on the mind of most people. The insurance industry is very aware of this concern and meets this concern with a variety of complex products, commonly known as "living benefits". These products "assure" people of a guaranteed income if you just hand over a pile of money to them. What they don't mention is how expensive these products are. One profitable product that the insurance industry pushes are Variable Annuities. It sounds good to get a "guaranteed" 5% return but the staggering expenses of these products deplete a fair portion of what one "invests" in these products.
In the following article Scott Burns works through the math of a VA product and offers a far more cost-effective solution which generates a guaranteed income and builds wealth at the same time.