Cash value life insurance + deferred income annuities outperform investment-only retirement strategies — in both retirement income and legacy value.
Source: Ernst & Young LLP — "Benefits of Integrating Insurance Products into a Retirement Plan" (2021)
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"People always live for ever when there is an annuity to be paid them."— Jane Austen, Sense & Sensibility (1811)
From Nobel Prize economists and PhDs, to other top retirement planning experts on the planet, to one of the largest accounting firms in the world — the research backs an integrated approach combining annuities and cash value life insurance for an optimal retirement plan.
"Lifetime annuities can be a good way of reducing longevity risk."
In a landmark study spanning 90 years of market data, Ibbotson found that Fixed Index Annuities have delivered returns exceeding bonds — with substantially less risk — making them a superior fixed-income alternative in retirement portfolios.
Combining systematic withdrawals with annuities outperforms all other strategies for anyone retiring with $250,000 or more. The popular 4% rule has significant failure rates at older ages and provides the lowest level of income of any strategy studied.
"IRAs are the worst possible asset for wealth transfer and estate planning, all thanks to the SECURE Act. The tax exemption for life insurance is the single biggest benefit in the tax code and not used nearly enough because most people don't focus on lifetime benefits."
Source: Warshawsky & Pang — "The Role of Life Annuities in Retirement Income Strategies" (ACLI Research, October 2024)
The average American now lives into their mid-80s. If you retire at 65, your savings must last 20+ years — and most accounts offer zero guarantee they will.
A bad market year right before or after retirement can permanently derail your income. One crash shouldn't be able to take away what took decades to build.
With $36+ trillion in national debt, tax rates are almost certain to rise. Your 401(k) could be far less valuable than you think — you've saved the gross, not the net.
The 401(k) is a savings tool, not a retirement income plan. It has no built-in mechanism to prevent outliving your money, no floor against losses, and no income guarantee.
Without a guaranteed income stream, every month in retirement is a math problem. How much can I spend? What if markets drop? Guaranteed income answers that question for life.
"It was never intended to be the primary vehicle for saving for retirement. All these plans are subject to the ups and downs of the stock market. And it's very obvious with 401(k)s."
"Too many people had the highest risk exposure during their working careers at the wrong time. These people took a hit they're never going to recover from."
During the 2008 financial crisis, average 401(k) balances lost 25–40% of their value — with the steepest damage to those closest to retirement who had no time for markets to recover. Benna watched it happen and has been vocal ever since.
A Fixed Index Annuity gives you market-linked growth potential with downside protection — and the option to convert into a guaranteed paycheck for life, no matter what markets do.
Allocate a portion of your retirement savings — or roll over an old 401(k) — into a Fixed Index Annuity. No direct stock market exposure.
Your value grows linked to a market index like the S&P 500. In good years you capture gains (up to a cap). In down years, your floor is zero — meaning no loss of principal due to market declines, minus any applicable fees (many products carry little to no fees).
When you're ready, turn on your guaranteed lifetime income rider. You'll receive a predictable monthly payment for the rest of your life — regardless of what markets do.
Enjoy retirement knowing a portion of your income is permanently protected. Spend more freely, sleep more soundly, and leave a legacy for those you love.
Your money is never directly in the stock market. In down years, your account value floor is zero — meaning no loss of principal due to market declines (minus any applicable product fees, which vary by product).
With a guaranteed income rider, the insurance company pays you a set amount every month for life — even if your account value drops to zero. They keep paying.
While your principal is protected, your earning potential is linked to indexes like the S&P 500. You participate in gains up to a cap — without any of the downside from market declines.
Your gains compound tax-deferred inside the annuity. You don't pay taxes on growth until you take withdrawals, allowing your money to compound faster over time.
Most FIAs allow you to add a spouse to the income guarantee. If you pass first, your spouse continues receiving the same monthly income for the rest of their life.
Any remaining account value passes directly to your named beneficiaries — bypassing probate and delivering an immediate, private inheritance to your loved ones.
| Feature | Stock Market / 401(k) | CD / Savings | Bonds | Fixed Index Annuity |
|---|---|---|---|---|
| Principal Protection from Market Declines | ✗ | ✓ | ~ | ✓ * |
| Market-Linked Growth | ✓ | ✗ | ✗ | ✓ |
| Guaranteed Lifetime Income | ✗ | ✗ | ✗ | ✓ |
| Tax-Deferred Growth | ~ | ✗ | ✗ | ✓ |
| No Direct Market Exposure | ✗ | ✓ | ~ | ✓ |
| Spousal Income Protection | ✗ | ✗ | ✗ | ✓ |
| Accepts 401(k) Rollovers | ~ | ✗ | ✗ | ✓ |
* Floor is zero for market declines, minus any applicable fees. Many FIA products carry little to no fees — product terms vary.
A properly structured IUL builds cash value through tax-deferred, market-linked growth — with a zero floor against market-driven losses (net of the cost to maintain the tax-free death benefit). In retirement, that cash value is accessed through policy loans, which are income-tax-free under current IRS tax code Section 7702. It's a tax-efficient complement to accounts that will eventually be taxed.
No Contribution Limits. Unlike IRAs and 401(k)s, a properly structured IUL has no IRS-imposed annual contribution limits — ideal for high earners who want to build additional tax-efficient savings.
No RMDs — Ever. Life insurance is not subject to Required Minimum Distributions. You control when and how much you access, completely on your own timeline.
Market-Linked Growth with a Floor. Cash value grows linked to a market index in up years. In down years, the floor is zero — net of the cost of insurance needed to maintain the tax-free death benefit. Growth without full market exposure.
Tax-Free Policy Loan Access. In retirement, you access accumulated cash value through policy loans — income-tax-free under current tax code. This creates a tax-efficient income stream alongside taxable accounts.
Income-Tax-Free Death Benefit. Any remaining death benefit passes to your heirs income-tax-free — a meaningful advantage Ed Slott and others call the single most underused benefit in the entire tax code.
Creditor Protection. In many states, life insurance cash values enjoy significant legal protection from creditors and lawsuits — a powerful planning tool for business owners and professionals.
"IRAs are the worst possible asset for wealth transfer and estate planning, all thanks to the SECURE Act. The tax exemption for life insurance is the single biggest benefit in the tax code and not used nearly enough because most people don't focus on lifetime benefits."
* Floor is zero for market-driven losses, net of the cost of insurance to maintain the tax-free death benefit.
Tell Grant Spencer a little about where you are and what matters most. He'll prepare a personalized illustration showing what a Fixed Index Annuity, an IUL, or both could do for your retirement.