Safe Retirement Options

In retirement, you must generate enough income to maintain your lifestyle without exposing your assets to too much risk. Many retirees like using 401(k) accounts, retirement savings accounts, and social security payments as their main income streams. Others rely on cash savings or defined-benefit pensions, which are increasingly rare these days.

If you are wondering how to obtain a stable and reliable income in retirement, here are some options.

Fixed Annuities

Annuities offer income predictability. You pay into the plan for a period, then the plan offers guaranteed payments when you retire. These contracts can guarantee an income stream for a specified period or for the rest of your life.

One risk with an annuity is that you may not live long enough to collect a sufficient number of payments to fully justify the cost of the investment. Fixed annuities are also subject to inflation risks. Though, a fixed annuity will offer you guaranteed cash flow for life. This can provide peace of mind for seniors who are just trying to enjoy their retirement.


A bond represents debt. If you purchase a bond, that means somebody owes you money and will pay you interest on it. With bonds assembled into a portfolio, you can obtain a dependable source of retirement income. A safe approach is building a portfolio of different bonds at different levels of maturity.

Dividend-Paying Stocks

Stocks represent ownership in a company. As the owner of a stock, you may receive regularly scheduled dividends. These are often dispersed every quarter and dividends come in the form of cash payments to shareholders. Not all companies pay dividends, though. Dividends can also stop being dispersed if the company is in financial trouble.

You may be able to rely on the dividends of your stock investments. Just make sure to choose stable companies that aren’t at great risk of losing their market share.

Life Insurance

Most people don’t think of life insurance as an investment. Though, the cash value component of permanent life insurance options can be used to build equity that can be used to sustain your retirement. Policyholders are able to access the cash reserves of their life insurance policies via loans or actual withdrawals. Though, loans and withdrawals will reduce the policy’s death benefit by a similar amount. If you don’t pay the amount back, the death benefit will decrease.

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Alvarado Master Agency can help you secure a safe and stable retirement. Give us a call to schedule a consultation with one of our expert team members.

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