{"id":504,"date":"2012-09-02T18:08:58","date_gmt":"2012-09-02T18:08:58","guid":{"rendered":"https:\/\/eagleoneresources.com\/?p=504"},"modified":"2012-09-02T18:08:58","modified_gmt":"2012-09-02T18:08:58","slug":"help-im-retired-and-cant-afford-to-run-out-of-money","status":"publish","type":"post","link":"https:\/\/eagleoneresources.com\/?p=504","title":{"rendered":"Help! I’m Retired and Can’t Afford to Run Out of Money!"},"content":{"rendered":"
\n\t\t\t\t\t\n\t\t\t\t\t\t\"Fb-Button\"\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>
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My friend Jack’s widow called me recently and told me that her brother had died.\u00a0 She still hasn’t finished settling her husband’s estate and now she’s responsible for settling her brother’s estate, too.\u00a0 While going through her brother’s papers, she found that she would be receiving a significant sum of money from the sale of his property.<\/p>\n

“Help,” she said.\u00a0 I need to create an income that I can’t outlive.\u00a0 This is all the money I’ve ever have.\u00a0 I can’t take a chance that it will be gone before I am.”<\/p>\n

I was happy to tell her that there is a way to create an income that will last as long as she does.\u00a0 It is called an annuity.<\/p>\n

An annuity is a contract issued by an insurance company that can turn a lump sum of money into a monthly income.\u00a0 The person receiving the income is called the annuitant.\u00a0 The annuitant can receive this income for as long as he or she lives; or, by using an option known as “life income with period certain”, can receive an income for a specific number of years or for life; whichever is longer.\u00a0 Consider this example:<\/p>\n

Mark and Martina recently retired after selling the business that they had owned for 30 years.\u00a0 They planned to travel and see all of the sites that they had dreamed of visiting over the years.\u00a0 Sadly, Mark suffered a massive heart attack and died.<\/p>\n

Quite naturally, Martina feared that she might outlive the money that they had received from the sale of their business.\u00a0 To ensure that this could not happen, she purchased an annuity from the Shifting Sands of Daytona Insurance Company.\u00a0 However, she also wanted to make certain that, if she died in the near future, the money that was left from the sale of the business would go to her daughter. <\/em><\/p>\n

Her insurance agent recommended that she create a lifetime income guaranteed for a minimum of 10 years.\u00a0 The annuity would pay her a monthly income of $1,500.\u00a0 If she died at the end of the second year of payments, the contract would pay her daughter the remaining eight years (96 months) of payments; $1,500 per month.\u00a0 On the other hand, if Martina lives another 20 years, the annuity will pay her $1,500 per month for as long as she lives.\u00a0 Martina cannot outlive the monthly income; but, the income could outlive her for the benefit of her daughter.<\/em><\/p>\n

Clearly, annuities are not the perfect answer for every situation.\u00a0 But, if Jack’s widow is concerned that she might outlive the money she receives from her brother’s estate, an annuity might be the answer to her concerns.<\/p>\n","protected":false},"excerpt":{"rendered":"

My friend Jack’s widow called me recently and told me that her brother had died.\u00a0 She still hasn’t finished settling her husband’s estate and now she’s responsible for settling her brother’s estate, too.\u00a0 While going through her brother’s papers, she found that she would be receiving a significant sum of money from the sale of […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_s2mail":"","footnotes":""},"categories":[44,61,66,13,62,65,35,64,49],"tags":[15,27,25,22,28],"class_list":["post-504","post","type-post","status-publish","format-standard","hentry","category-financial-planning","category-investing","category-making-money-last","category-money-management","category-pension-planning","category-pension-planning-retirement-planning","category-personal-finances-2","category-retirement-income","category-retirement-planning","tag-finance","tag-getting-the-most-for-you-money","tag-money-management-2","tag-money-safety","tag-personal-finances"],"_links":{"self":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/504","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=504"}],"version-history":[{"count":2,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/504\/revisions"}],"predecessor-version":[{"id":506,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=\/wp\/v2\/posts\/504\/revisions\/506"}],"wp:attachment":[{"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=504"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=504"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eagleoneresources.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=504"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}