Lifetime Income: How to Plan for Your Retirement Early

What is the best way to ensure a constant stream of income for the rest of your life?

a. Investing in stocks and bonds

b. Saving money in a savings account

c. Enrolling in a retirement plan like annuities

Answer:

c. Enrolling in a retirement plan like annuities

Lifetime Income is a term that is used to describe a retirement plan that provides individuals with a constant stream of income for the rest of their life. Annuities are typically the only retirement plan that can offer this type of income, often referred to as "annuities for life."

By enrolling in a retirement plan like annuities, individuals like Alan can ensure a secure source of income during their retirement years. Planning for retirement early and formulating estimates of lifetime income can help individuals make informed financial decisions for the future.

Investing in stocks and bonds can carry risks and may not guarantee a steady income stream, while saving money in a savings account may not provide sufficient funds for retirement. Enrolling in a retirement plan like annuities is a reliable way to secure a lifetime income.