The process of saving for retirement is commonly understood, save a certain amount each year, invest it, and give your nest egg time to grow.
But once you are ready to retire and start living on that income, things can quickly become more confusing.
If you spend any time on the internet, you will quickly discover that there are many approaches to generating retirement income.
To help you evaluate those approaches, a concept called Equivalent Portfolio Value, or EPV, can be helpful.
Simply put, EPV evaluates how much income one approach can generate versus another and what it will take for two different approaches to generate the same level of income.
In this example, we compare withdrawing from a managed portfolio of investments vs. utilizing a lifetime income rider on an annuity.
Using EPV can be useful to compare retirement income approaches.
So, ask The Annuity Expert if a fixed index annuity might be right for you.
Learn More: https://www.annuityexpertadvice.com/converting-retirement-plan-into-income/
