Life after the Last Paycheck

LIFE after you hang up your work clothes is about living, not worrying! That is the reason for income planning. Before you receive your last paycheck you need to plan on how you will replace that income.

Most people won’t think too much about this. They will begin using their savings, and hope they have enough until they die. But one day, as they get older and older, worry may set in as their money continues to deplete. Or, maybe not! Maybe they are fully invested in the stock market and everything they own is going up, up, up! Not!

Wouldn’t it be smarter to have a plan? Do you know exactly how much money you need to live on each month? Do you want to be guaranteed a monthly check even if you live until 120? This is how longevity annuities can help you. A longevity annuity will guarantee you monthly income for as long as you live. The annuity company takes on the risk of you living longer than your money.

Here is how the simplest of longevity annuities works.

Meet SPIA (Single Premium Immediate Annuity). I like to think the “S” stands for SIMPLE because this annuity is so easy to understand. You give a lump sum of money, better known as a premium, to an insurance company that contracts SPIAs, and the insurance company will send you a monthly check guaranteed for the rest of your life. If you outlive the age projections made by the actuaries the insurance company will be on the hook to continue to pay you. Now honestly, this is the simplest definition of a SPIA. There is much more information you need to know before handing over a big check to an insurance company. Log onto for everything you need to know; the good and the bad.

Here’s a bit more food for thought. What if we were smart enough to learn to define our LIFE pre-retirement and post-retirement? (Kind of like going to college) You spend four or more years earning an education, so you can get a job in your chosen occupation, earn an income to live (eat, rent, car, travel, etc.). Then, after you worked at this occupation and saved enough money to stop working, you let your money provide you an income to live (eat, rent, car, travel, etc.). At this point you don’t want to be one of the “retirees” who looks like he/she has sucked on lemons all day and night. What I’m getting at here is you should plan ahead for your income!

Don’t get caught up with all the lies about what is available for “retirees” in the daily pamphlets in your mailbox. Don’t be sold a book of goods with pie in the sky promises. Do just one simple and extremely important thing! Make sure you focus on where your income is coming from. LIFE after work is about living and not worrying. Learn to plan your income, guarantee your income, and live your life without worry.

Here is a simple example of how a SPIA works: If you have $1,000,000 and you give it to an insurance company to purchase a SPIA contract, the insurance company, in turn, will send you a $5000 check each month for the rest of your life. (Remember, this is an example.) You are exchanging a lump sum of money for a guaranteed income for the remainder of your life.

If you are attempting to calculate the return on investment in this example… you are likely not a candidate for a single premium immediate annuity. You probably like complexity and would like to determine how to build your income from investing in bonds, stocks, REITs, MLPs, or other dividend producing assets. Then, you can continue to manage the zoo/investment portfolio you created,

otherwise known as spending your LIFE managing your money versus living it. There is nothing wrong with that, if that is your chosen course of action. You may want to log onto “” for additional insight.

A SPIA will give you security from the fear of outliving your money. A SPIA is like a KISS (Keep It Simple Sweetie) because you choose the lump sum amount, you choose the date the income will start, and you deposit your check every month. Your principle is guaranteed. There are no fees…ever. You can customize the income benefit. These are just a few tidbits about how a SPIA can help you if you are interested in the product. Remember, visit for all the simple answers to your questions, or get a free quote here Get a quote.

PS: SPIA has a cousin name DIA (Deferred Income Annuity) allowing you to defer your income until a later date. More to come on DIA!