Worry-free Income for Life

This is a new addition to our financial management category - offering suggestions about personal investing ideas for those thinking about their retirement plans.

No one should be left worrying about money as they approach retirement and the years that follow.  Without advice and some personalized guidance however, many are afraid they will run out of money.  They’re unsure how they should invest.  They don’t know how to use current equity such as in their home.  And all this makes it impossible to securely plan a Lifestyle they want to enjoy.  

My prime and professional focus is to align financial resources with the life you want to enjoy.  This is true whether you’re looking to retire, selling a business, or continuing forward to enjoy partial or full retirement living. 

I grattefully share resources which can be immensely helpful for you.  These are not about buying anything;  they’re about your life and about having a plan that will competently support the life you choose.  You’ll find these resources via a website (Guaranteed Income 4Life), on Youtube, Slideshare, etc to aid financial decisions that continue supporting the life you want.

Today let’s consider a brief & very simple overview of investing for income.  I’m not telling you what to buy because you and I would need to work together and discuss personal investment suitability….however you may find it helpful to see what kinds of “categories” of investment can help support lifelong income.

Dividends:  someone told me they didn’t want to invest in the stock market.  I said, “well would you buy Canada’s largest bank?”  They replied, “well that should be fairly safe!”  So we discussed the role of dividend investments to support and increase your income over time.  Whether via a fund or another approach, investing for dividends can help protect your purchasing power now and for the years ahead.

Infrastructure:  a great word for scrabble, it’s even better for investing.  Imagine owning highway 407, or having your own toll booth on a busy bridge.  Would this type of investment provide a healthy form of income?  You bet!  Today we have ways to own infrastructure world-wide, including bridges, highways, airports, energy terminals, and so forth.  Income is comparatively stable, strong, and will increase….which can nicely protect your ongoing income needs.

Real estate:  you’ve always known the value of property, and you may either endure the tenant problems or give them away to others.  Easiest I think is to own a real estate fund that directly owns a diversified mix of properties (eg. residential, commercial, industrial, office) and passes net profits back to you as ongoing income.

Life Pay-out Annuities:  long ignored, high-income and tax-advantages can come with these unique annuities.  Simple strategies will provide high income, low tax, and the security of knowing you can never outlive your money!  In event of early death these can keep paying until you would have been 90.  But go ahead and live to 115 or more, the money just keeps coming.

Bonds now deserve caution but we can’t avoid them.  When interest rates were falling bonds paid coupons plus capital gains.  In today’s low-interest world, bonds pay next to nothing, and will face “capital losses” when interest rates turn upward.   So why not look at other parts of the world where bond issuers are paying higher rates.  A bond fund for instance can offer exposure to low-debt high-growth countries & corporations.  A worthy fixed-income strategy could include that kind of investment.

If you need a plan that can powerfully support Income-for-Life, the above ideas could be valuable to you.  Ask a close and trusted advisor if & how you should implement such ideas to best fit your financial plan.  If you don’t have such an advisor, or if you were thinking to get a second opinion on retirement-security and income-for-life then perhaps we can chat together and share what works for people we are serving.

Brian Weatherdon, MA, CFP, CLU, CPCA, of Sovereign Wealth Management Inc., is a financial advisor representing Freedom 55 Financial, a division of London Life Insurance Company and a range of financial companies. He can be reached through match@bm2b.ca.

The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. The views expressed are those of the author and not necessarily those of the issuer of any financial products for which the author may act as a distributor.  This article is not an offer for any kind of security, insurance, or program without due diligence and certified planning.

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