Guaranteed Income Belongs on the Retiree Balance Sheet

June 15, 2021 by David Blanchett

Retirement is the largest purchase most people will ever make. Fortunately, a good chunk of that expense is covered from a variety of guaranteed income sources, such as Social Security retirement benefits.

Despite the importance of guaranteed income, though, in my experience most advisors view guaranteed income only as an income source and do not attempt to estimate its value to share with clients.

That’s a mistake.

While guaranteed income may not be an asset in a more traditional sense, like a 401(k) or IRA, it definitely has an economic value that should affect decisions around things like the appropriate portfolio risk levels and safe withdrawal rates.

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Originally Posted at ThinkAdvisor on June 1, 2021 by David Blanchett.