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[patwayincome]

patwayincome

A fixed retirement income is an income stream that you receive for the rest of your life. It’s a good choice if you want to ensure a steady stream of income while living off your retirement savings. However, a fixed stream of income also has its drawbacks. You’re locked into a certain level of income, and if prices increase, your retirement income will go down, too. Fixed retirement income often fall in value, since inflation causes prices to rise. Unless you’ve invested in an inflation-protected bond, your fixed income may be hard-pressed to keep up with inflation. While you can invest in index-linked annuities to protect your money from inflation, it’s best to diversify your portfolio. A fixed index annuity is an insurance-based retirement income plan that pays interest based on a stock market index. It’s a great choice for older consumers looking to supplement their retirement savings and those who’ve already maxed out their 401(k) contributions. Some fixed index annuities even come with features that can help with long-term care costs or estate planning. Some also offer bonus features like Return of Premium or Accumulating Penalty-Free Withdrawals. Another option for a fixed income is a variable index annuity. These annuities pay out interest based on the performance of a specific index, which may not increase. Unlike fixed-rate annuities, these products do not post annual losses; instead, you only receive a share of the gain from the index during up years. The downside is that your income will not grow as fast as inflation, and some annuities don’t adjust for inflation.