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Using Life Insurance for Supplemental Retirement Income
December 10, 2018
In today's unpredictable economic climate, many business owners are finding that the traditional means of funding a comfortable retirement may not be reliable enough. Even with a wise investment of the proceeds from the sale of your business, the ups and downs of the market can negatively affect its rate of return, causing a ripple effect through your other retirement income sources. This could limit your ability to generate a large enough annual income in retirement.
One rule of thumb is that individuals generally need 75 percent to 85 percent of their pre-retirement income each year for retirement. With this in mind, it's important that business owners consider creating a supplemental retirement strategy; one that provides for the accumulation of funds, tax advantages and flexibility.
Equity-Based Assets in a Down Market
A traditional way to save for retirement is equity-based investments. These investments allow you the potential to enjoy long-term growth and multiple years of market upside while you are working. However,...
Insurance products issued by Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA 01111-0001) and its subsidiaries, C.M. Life Insurance Company and MML Bay State Life Insurance Company (Enfield, CT 06082).