Important New Government Retirement Discovery

 

If You’re Going to Live Forever, You Will be Required to Pay for It.

There are some in the “deep state” government who don’t want you to know this, but a recent heavily funded government survey discovered conclusively that during the 21st century, the vast majority of Americans will grow older rather than younger. (It should be noted that the potential error in this government survey is plus or minus 2.5 years.)

The government study also concluded that – so long as the individuals do not die – they will steadily grow older and at a certain age, will want to quit working and retire. Amazingly, while interviewing focus groups the government researchers discovered that even after retirement, the vast majority of individuals will still need a regular income to live on. Even more stunning was the conclusion that the income will be needed for the remainder of their lives. 

These groundbreaking government findings led to the realization that as fewer people grow younger, while more grow older and retire, this will strain the resources of Social Security and other government programs. There is even the possibility that these programs could become insolvent. Compounding this situation is the fact that thousands of corporations have terminated pension plans; leaving workers (but not highly paid executives) stranded without stable retirement income.

Getting Ready To Get Old

On a different front, another government agency has determined that many individuals, aware of potential income needs during retirement, have systematically accumulated savings and investments with the intent of converting these assets into income they will need during retirement.

There is only one problem. Most individuals have no idea how to convert assets into income. Americans have been conditioned to the ways of saving money and accumulating wealth, but very few have been educated as to how to create income. Ironically, in retirement, income is more important than wealth. After 40 years or more of working, most individuals find themselves to be asset wealthy but income poor. Consumers suddenly have a need to find products and services that will convert wealth into income.

Fortunately, a workable solution has been proposed that will guarantee needed income for individuals during retirement, even if they live forever.

New Plan for Guaranteed Retirement Income

A bi-partisan group of Republicans and Democrats, along with some reasonable individuals have quietly proposed a workable solution to the need for retirement income. The plan offers a revolutionary new type of financial product called “LIFE Insurance,” which stands for Life Income From Endowment. The LIFE (endowment) product could be structured in a way that allows the individual to transfer accumulated wealth into the plan; guaranteed competitive interest will be credited on the value until income is elected. Then at retirement a monthly income (like Social Security) will be paid for as long as the individual lives, even if it is forever.  

Distribution of the LIFE plan is structured after the Obamacare Healthcare Exchange. Individual insurance companies will be invited to develop a LIFE product and offer it on a web site. Individuals will be able to go to the LIFE website and easily compare LIFE income endowment products offered by various companies. If the individual decides to purchase a LIFE product from one of the participating companies, the entire transaction is completed online.

One of the most unique features of the LIFE product is that like the bank FDIC coverage, for products purchased on the LIFE Exchange, the US Government will guarantee that the individual will never lose any money and the income will be guaranteed for life, no matter what may happen to the insurance company.

SUMMARY

As Axios’ Felix Salmon recently reported, “401(k) plans and IRAs don’t generate steady and predictable income like pensions and Social Security. The result is a feeling of perpetual insecurity, even among those who’ve amassed substantial savings.”

The adoption of the LIFE retirement plan, supported by government guarantees, is the simplest and most efficient way for millions of retirees to enjoy a safe and secure retirement, even if they live forever.

                                                    ###

Bob MacDonald -- Founder of LifeUSA, retired chairman and CEO of Allianz Life of North America, author of a number of books on management and leadership. bobmac5201@gmail.com

Comments

Post a Comment

Popular posts from this blog

The Dirty Little Secret of Retirement Planning

What is the most difficult challenge you will encounter in retirement? It is the risk of running out of money and not having enough income to live on. Unfortunately, this is not an isolated risk.  After working for decades so you could enjoy decades of not working, what is the first thing that happens the very day you retire? Your income stops. After a career receiving a check every two weeks, you suddenly need to replace that income for your retirement years, no matter how many years that may be.  The truth is you need a plan to meet your income needs in retirement. Fortunately, there is no shortage of banks, investment firms and insurance companies, along with a bevy of financial planners eager and ready to help you create a retirement income plan.   A Dirty Little Secret  Unfortunately, there is a dirty little secret when it comes to retirement planning.  The secret is that even the most forward-looking retirement plans don’t fully protect against the ri...
Read more

Don't Die From Running Out of Money

  Most of us do what we can to lead a long, healthy and happy life. If health issues threaten our longevity, we do all we can to obtain the medical treatment intended to extend life. Of course, no matter how diligent we may be, eventually we will die from something. Among other things, it could be from an accident, heart disease, cancer, cerebrovascular disease or chronic lower respiratory disease. But there is another type of death that we do have the power to stave off till something else gets us. It is a living-death caused by running out of money during retirement and such a circumstance can be almost worse than physical death. Preparing to Extend Life During Retirement Most of us dutifully work at a job for most of our adult lives, all the while dreaming of the time when we can retire. Retirement is envisioned as a laid-back period of life with discarded alarm clocks, loose schedules, leisure travel and the freedom to do what we want to do, when we want to do it. Suc...
Read more

To Assure Continued Growth and Profitability, The Insurance Industry Needs Another Revolution

  During the last quarter of the 20 th century the life insurance industry was forced into a period of structural and product change that had not been seen in over 100 years. Most of the established insurance institutions, comfortable with the way things were, not only did not recognize the need for change, but they also stubbornly tried to ignore and resist it. The needed change was driven by several factors, but the primary trigger was the consumer who began to reject the traditional business model of the life insurance industry. At the time, the industry’s business model was predicated on offering, through a cadre of exclusive sales agents, long term products designed to protect against the economic cost of dying young. For almost a century this approach resonated with consumer needs and concerns and insurance companies grew to become financial behemoths.   However, during the 20 th century medical advances increased male life expectancy from 42 to 73 years.  As ...
Read more