Wealth2k has introduced The Income for Life Model Income Choice Strategy, a solution “designed to guarantee a period of smooth, monthly retirement income, plus offer the opportunity to either participate in an investment account, or receive continuing guaranteed monthly income, for life,” according to a Wealth2k release.
Income Choice Strategy combines two fixed annuity contracts intended to provide guaranteed income for 14 years, and, beginning in year 8, a step-up in income equivalent to a 3% annual inflation adjustment.
The “choice” in Income Choice Strategy relates to the investor’s option to either participate in an investment portfolio, the value of which may be used to purchase additional guaranteed income beginning in year 15, or, purchase a deferred income annuity (DIA) that will provide guaranteed monthly retirement income, with a step-up, beginning in year 15.
According to Wealth2k founder and CEO, David Macchia, “Today, the average 6-month CD rate has dropped to a meager 0.4%. Factor in inflation and the situation for savers is dire. This has created the need for innovative, income-producing strategies.”
“For investors whose main concern favors guaranteed income over full liquidity, a hybrid investing strategy, one that seeks to combine guaranteed retirement income with an investment account, may better meet the investor’s objectives,” said Wealth2k Managing Director, Jason Ray.
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