The 3 Kinds of Guaranteed Retirement Income (And Why You Rarely Get All Three)

A viewer named Tom asked whether he should buy annuities for guaranteed income or build a TIPS ladder. This video zooms out and covers three things. First, what is actually being guaranteed. I walk through three kinds of guarantee: the payment will arrive, the payment lasts for life, and the payment adjusts for inflation. Then I use that framework on the four main sources of guaranteed retirement income. Social Security is the one that hits all three. A pension usually covers payment and lifetime income; inflation protection depends on the plan. A SPIA is backed by an insurance company, with state guaranty limits that vary, and it pays for life, but it no longer tracks inflation. A TIPS ladder is backed by the government and adjusts for inflation, but the longest ladder is 30 years, not a lifetime. I compare a $100,000 SPIA quote from Schwab with a $100,000 TIPS ladder on tipsladder.com, and I explain why I personally prefer the TIPS ladder: inflation protection, enough years for most retirements, control, and money left for heirs. Finally I talk about how to use this in a plan. Cover essential living expenses. See how much Social Security and a pension already cover. Guaranteed income always has a cost. If the leftover spending is a small slice of your portfolio, you may not need more guarantee at all. Resources mentioned in the video: NOLHGA How You’re Protected: https://nolhga.com/policyholders/how-... Schwab income annuity: https://www.schwab.com/annuities/inco... TIPSLadder.com: https://www.tipsladder.com TreasuryDirect TIPS: https://www.treasurydirect.gov/market... Social Security COLA: https://www.ssa.gov/oact/cola/latestC... Join the Newsletter. It's Free: https://robberger.com/newsletter/?utm... Financial tools I use: I track all of my investments, performance, fees, and asset allocation with Empower. It's Free: https://go.robberger.com/empower/yt- I use Monarch Money to manage our budget: https://go.robberger.com/monarch-yt/y... My retirement plan comes from Boldin, the most robust retirement planner available at a reasonable cost: https://go.robberger.com/boldin/yt- I used Capitalize for my last 401(k) rollover. They did all of the work, and it's Free: https://go.robberger.com/capitalize/yt- My Book (Retire Before Mom and Dad): https://amzn.to/4d9qbhA #retirement #investing #robberger 0:00 What this video covers 1:08 The 3 kinds of guarantee 2:54 Social Security 4:34 Pensions 6:54 Annuities and state guaranty limits 9:38 TIPS ladders 10:36 $100,000 SPIA vs TIPS ladder 14:54 Why I prefer a TIPS ladder 16:30 How this fits a retirement plan 17:46 Guaranteed income always has a cost 18:47 Do you need guaranteed income at all? 19:48 Covering all your essential expenses ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. I've since sold my websites, bought them back, and started a new website and this YouTube channel. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE) LET'S CONNECT Youtube: @rob_berger Facebook: Facebook: financialfreedomguy Twitter: Twitter: Robert_A_Berger DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. *Disclosure*: Some of the links in this description are from partners who compensate us. This means — at no extra cost to you — I may earn money if you click and sign up for a product or open an account. This creates a financial relationship that may influence my recommendations, but I only recommend products and services I believe in and would recommend to my own mom. Advertisers have no control over my content. Read the full advertiser disclosure here: https://robberger.com/how-we-make-money/