How to Create Retirement Income You Cannot Outlive

It is the question that keeps many up at night: will my money last? With 10,000 baby boomers retiring every day, the need for reliable retirement income has never been greater. Traditional advice is to save in a 401(k), hope the market performs, and draw 4% a year. That leaves too much to chance.

Hope is not a strategy. Faithful stewardship means building a retirement that cannot be outlived, regardless of market volatility. To do that, you must add guarantees to your portfolio.

Why Market-Only Strategies Fall Short

Equities, real estate, and even business ownership are essential for growth, but they carry risk. If your $1 million portfolio drops 30% in a downturn, your balance is suddenly $700,000. That loss cuts income dramatically if you follow the 4% rule.

The danger is not just market loss. It is being forced to draw income from depleted assets. Pulling money in down years magnifies losses and can permanently damage retirement security. Without a guaranteed alternative, you may spend your later years adjusting lifestyle to market swings.

The Case for Guarantees

The real question to ask is: what portion of your portfolio is guaranteed? Guarantees provide stability, breathing room, and peace of mind. They allow volatile assets time to recover while still giving you income.

Two proven vehicles provide these guarantees: whole life insurance and annuities.

Whole Life Insurance as a Buffer Asset

Whole life insurance is not a retirement plan replacement, but it can serve as a powerful buffer asset. Its key features make it valuable in distribution years:

• Guaranteed growth every year. Whole life credits steady interest regardless of market conditions.

• Liquidity. Access funds without age restrictions or penalties. Structured properly, withdrawals or loans can be tax-advantaged.

• Volatility shield. When markets fall, you can draw from whole life values to cover expenses instead of liquidating equities at a loss.

For example, if your 401(k) drops in a downturn, you can temporarily pull income from a whole life policy. When markets recover, you can resume drawing from traditional accounts. This keeps your retirement plan intact without selling assets at depressed prices.

Annuities for Lifetime Income

Distribution requires a different mindset than accumulation. Annuities exist for this phase of life. By transferring a lump sum to a carrier, you receive a guaranteed paycheck for life, often at higher payout rates than the 4% rule.

• Predictable income. Carriers guarantee payments regardless of market conditions.

• Longevity protection. Even if you outlive your account balance, the paycheck continues for life.

• Higher potential payouts. Depending on age and product design, annuities may offer 6-7% guaranteed payout factors.

For someone with $1 million, the difference is striking. The 4% rule provides $40,000 per year. An annuity at a 7% payout factor could provide $70,000 per year guaranteed, for life.

The trade-off is clear. In retirement, stability and certainty matter more than chasing returns.

Faithful Stewardship in Retirement

As believers, we are called to manage resources with wisdom and foresight. That means not relying on hope, but structuring portfolios to provide certainty. Whole life and annuities are not speculative. They are steady tools that protect households from the fear of running out.

The goal is not to replace equities or IRAs. It is to add a guaranteed foundation, ensuring your retirement is built on rock, not shifting sand. That foundation provides peace of mind and the freedom to live generously in later years.

If you are ready to explore how guaranteed income strategies can protect your retirement and provide peace of mind, book a discovery call today.