Double Barrel Retirement Plan
Most people take a single-barrel approach to retirement: they accumulate, perhaps $2,000,000 in their 401(k). With recent massive gains in technology stocks, sometimes their retirement plan increases by $500,000 in one year. They retire, then they spend. They take expensive vacations. They help their children with money problems. Not that these things are bad, it is that they forget to fire the second barrel of the retirement shotgun: providing safe money for a guaranteed lifetime income. The 1929 stock market crash inspired the creation of Social Security because two out of three Americans were financially devastated by this crash. The purpose of this website is to give you tools to create your own “social security” plan by using competitive financial products to tailor a plan that fits your needs. It must be able to shoot down the obstacles to your future financial security: inflation, interest rate fluctuations, market bubbles, financial fees and expenses, and outliving your income. The best financial vehicles to accomplish this are no-load annuities.
The Double Barrel Annuity concept incorporates both retirement barrels: part of Barrel one, accumulation, is a Multi-Year Guaranteed Annuity with an insurance company that locks-in a high interest rate guaranteed from 3 to 10 years. Barrel two, guaranteed lifetime income, increases by 3% annually to help offset inflation. After each MYGA term, growth in Barrel 1 funds the next SPIA. Income stacks. The MYGA keeps working.
Mary, a single 73-year-old retiree, has $500,000 in safe, interest accounts averaging 4%. These interest rates are guaranteed from six to 48 months, and she spends a lot of time shopping interest rates as these buckets mature. She averages about 4.00% interest, which generates $20,000 per year. Her risks: future interest rate cuts and inflation. The Double Barrel solution locks-in a high guaranteed interest rate and provides higher, increasing guaranteed lifetime income.
Joe is single, age 65. He plans to work until age 70 to maximize Social Security. His 401(k) grew to $2,000,000 last year and earned 38.6%. He has decided to take $600,000 of that growth “off the table” to provide a safe, guaranteed lifetime income. He is considering a proposal for a Fixed Index Annuity with a Guaranteed Lifetime Income Rider, that will provide over $5,000 a month at age 70 (see Inflation Button for details). He is in excellent health and since his parents lived until their nineties, he worries about outliving his income. He wants to guarantee he can maintain at least a $5,000 monthly income, not including Social Security, even if today’s bull market tumbles into bear territory.
Annual income is the stacked SPIA payments after each policy's 3% inflation increase on the anniversary. Each new SPIA is quoted at the client's attained age. Value in 2026 dollars is the same 3% compound inflation adjustment used on the Inflation report.
Illustrated values assume the original MYGA interest rate continues at each renewal. Renewal rates may change, but will not fall below the guaranteed rate of 2.40% after the initial guarantee period. Guaranteed Accumulation Value and Guaranteed Annual Income use 2.40% after that first period, so later SPIA purchases and withdrawals run the guaranteed column out sooner.