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ANNUITY LADDERING - Insurance Lead Conversion Video | WebPrez

Name: ANNUITY LADDERING - Insurance Lead Conversion Video | WebPrez
Uploaded: 2019-08-10T02:45:27+00:00
Duration: 1 min 4 s
Channel: Michael Viñal
Description: The speaker highlights two macroeconomic trends that jeopardize retirees’ purchasing power: a 40% loss in U.S. dollar value due to inflation from…

10 Aug 2019 · 1 min

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1:04

The speaker highlights two macroeconomic trends that jeopardize retirees’ purchasing power: a 40% loss in U.S. dollar value due to inflation from 1990‑2010, and a steep decline in 1‑year CD rates from over 8% to under 1% in the same period. By illustrating how a $5,000 monthly retirement income in 1990 would be equivalent to only $3,000 today, the speaker asks whether future retirees can maintain their lifestyle—covering groceries, healthcare, taxes, travel, and more—without risking out‑living their assets. The segment frames the core problem: protecting retirement income against inflation and low‑interest‑rate environments, setting up the need for solutions such as annuity laddering.

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According to the U.S. Consumer Price Index, over the 20-year period from 1990 to 2010, the U.S. dollar lost 40% of its value through inflation. So if we had retired in 1990 with a monthly income of $5,000, it would now be worth only $3,000 in today's economy. What's more, the average interest rate on 1-year CDs over that same 20-year period gradually declined from more than 8% in 1990 to less than 1% in 2010. So if the next 20 years are like the past 20 years, will you be able to live as comfortably as you do now on 40% less income? Will you be able to afford the higher cost of groceries, utilities, healthcare, taxes, home and auto maintenance, as well as travel vacations, restaurants, and recreational activities? Without the risk of running out of money? So how can you protect your retirement income from the effects of inflation and lower interest rates?