How to Create Guaranteed Retirement Income

Guaranteed income is money that arrives every month no matter what the markets do. The three main sources are Social Security, traditional pensions, and annuities.

Start by adding up your essential monthly expenses — housing, food, utilities, healthcare, transportation. The goal is to have enough guaranteed income to cover these no matter how long you live or how markets perform.

Next, identify the gap between guaranteed income and essential expenses. If there is one, an annuity can be used to fill it — turning a portion of your savings into a paycheck for life.

The rest of your savings can stay invested for growth, with less pressure to sell at the wrong time. This approach trades a portion of potential upside for the peace of mind of knowing the bills will always be paid.