When it comes to your retirement: you could run out of money before you run out of… life.

Last week, I spoke with a gentleman in his 60s.

Within five minutes of conversation, I could already hear the quiet alarms going off in my head.

He told me he has three pensions and Social Security.“They barely cover half of my income when I was working,” he said.

That was alarm number one.

When I asked about investments, he replied:

That was alarm number two.

So I asked him a simple but revealing question:

“If all of your investments disappeared right now, could you still carry on with just your pensions and Social Security? And what are your top three concerns when it comes to your cash flow during retirement?”

He paused. “It would be tough for sure. I might have to work a bit more… and of course, taxes and running out of money.”

The Hidden Problem: Cash Flow vs. Market Dependency

Here’s the truth. If someone has a multi-million-dollar portfolio and still worries about running out of money, it’s not a lack of assets.

It’s a lack of guaranteed income strategy.

He mentioned he had thought about annuities before, but never took the time to learn about them. That’s when my inner bell started ringing.

Because the purpose of fixed income in retirement is simple: to make sure that no matter what happens to the market or the economy, your essential bills and lifestyle are protected by income you can’t outlive.

You should never have to keep working in retirement just to stay afloat. Work should be optional — for joy, purpose, or curiosity — not for survival.

The Goal: Match Fixed Income to Fixed Expenses

If you’re retired or approaching retirement, take five minutes to check your ratio:

1. Add up your monthly fixed expenses — housing, utilities, groceries, healthcare, insurance, and non-negotiables.

2. Add up your guaranteed income sources — Social Security, pensions, and any annuity income.

3. Subtract the two. That gap is your longevity risk — the amount of fixed expenses not covered by guaranteed income.

The goal?That gap should be as close to zero as possible.

Where Annuities Fit In

Annuities aren’t a one-size-fits-all product, but they’re one of the few financial tools designed to do one thing exceptionally well:

Create a lifetime paycheck you can’t outlive.

By converting a portion of your investment assets into a guaranteed income stream, you protect your retirement lifestyle from market downturns and outliving your savings.

You’re not giving up growth entirely — you’re just making sure your essential bills are never at the mercy of market performance.

That’s true risk management.

The Bottom Line

When I told Mr. A, “If longevity is your worry, make it stop being one,” he looked relieved.

Because deep down, most retirees don’t want more money — they want more certainty.

He smiled and said, “Send me some info.” And I did.

If you want to know what I sent him, stay tuned for next Tuesday’s post — I’ll walk through the exact income strategy we discussed, and how we designed it to make sure he’d never have to say,

-LTA

Disclaimer:

This article is for educational purposes only and does not constitute financial, tax, or legal advice. Product features, guarantees, and rates vary by insurer and state. Always consult your advisor and tax professional before implementing any strategy.