This week’s article tells a story we are all too familiar with: “Approaching retirement at age 65, John and Jill Smith realized their monthly income from Social Security and pensions total $700 less than their fixed expenses. They have savings to fill the gap, but worry that their nest egg may not be sufficient to cover both their fixed expenses and their annual travel plans — especially if they are fortunate enough to enjoy a long retirement. Prudent investors often tackle this problem by becoming ultra conservative with their money. They commit to withdrawing so little from their savings that they have almost no chance of using it all up — say 4 percent of their account balance per year — or they simply forego travel and most other forms of discretionary spending. There is an alternative approach, one that could be considered even more fiscally conservative and yet simultaneously more freeing. It involves using some portion of your savings to purchase an annuity, which is a special type of insurance contract that can be used to generate a guaranteed stream of income for life. The idea is to use these payouts to cover your monthly income gap, which then frees you to use the balance of your savings as you like — without worrying that you’ll be unable to afford food and shelter down the road.” Sound like an option you’d like to pursue? Call us, we’re always here to help.