IN THE NEWS
For high-net-worth investors approaching retirement, managing consistent income is essential. One effective strategy is using variable annuities with income-for-life features to cover fixed expenses. These annuities provide a guaranteed income stream, regardless of market fluctuations*, helping ensure that essential costs are covered even during economic downturns. By allocating a portion of retirement accounts to variable annuities, investors can create a safety net.
This approach reduces reliance on more volatile assets, potentially offering more stability and growth potential. The income-for-life feature guarantees that investors receive consistent payouts, allowing them to meet living expenses like housing, healthcare, and daily costs. As rates fluctuate, locking in current rates through annuities can be especially beneficial, aligning with potential rate cuts anticipated in 2024.
In addition to annuities, blending fixed-income assets, such as municipal bonds, can provide tax-efficient returns and help optimize total income. This strategy supports long-term wealth preservation while facilitating a seamless transfer of assets, aligning with Thriving Asset Management’s commitment to building sustainable financial futures for clients.
If you’d like to explore how income-focused strategies can enhance your retirement planning, reach out to us at Thriving Asset Management for tailored advice.
MY WORST INVESTMENT
Paris, France, circa 1994—Randy and Jay’s American BBQ, an exciting little restaurant near the flat of Ernest Hemingway, was where I made my leap into the viper’s nest of opening a restaurant. At 26, after working there for months, I jumped at the chance to take over when Randy retired. My colleague and I partnered up, and I took a $2,000 cash advance on my credit card to cover the rent.
Reality struck quickly as we discovered that the charcoal grill was directly over the building’s main gas line, a serious safety hazard that required costly renovations. Unable to afford it, we had to close before the restaurant even reopened.
The lesson? Restaurants are a unique business requiring specific expertise, an exit strategy, and contingency plans—principles that apply to all investments. Proper risk assessment and preparation for the unexpected are crucial steps in any venture.
I aim to help clients build resilience, develop clear exit strategies, and prepare for potential setbacks. This experience taught me that turning obstacles into opportunities is not just a strategy—it’s a necessity. Sometimes, making lemonade from lemons is the only way forward.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Private Wealth Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning past performance are not intended to be viewed as an indication of future results.