by John Darer CLU ChFC MSSC CeFT RSP CLTC
Having a variety of safe income-generating strategies, such as immediate annuities, is essential for enjoying a comfortable retirement
According to "Five Ways To Boost Retirement Income* ", an article byJeff Benjamin at Investment News (a publication which claims to be "the leading news source for financial advisers"):
Establish a Steady and Predictable Income Stream
"…the best way to ensure enough flexibility to move in and out of riskier assets and strategies is to establish a steady and predictable income stream that will enable clients to ride out a stretch of lean years". Investment News September 19, 2010
The 5 strategies addressed in the article are:
- Immediate annuities, which Investment News dubs "the ultimate in predictable income"
- Individual bonds. The article states "Bonds are obviously a critical part of an income portfolio, but in a rising-interest-rate environment — which is likely over the next several years — individual bonds have a distinct advantage over pooled-mutual- fund strategies. As opposed to bond funds, which are never as nimble as a separately managed and customized bond portfolio, the idea here is to shift the emphasis from risk tolerance to income objectives".
- Reverse Mortgages The article states "While reverse mortgages are still a long way from being the first choice for most retirement income strategies, they do represent an opportunity that is worth considering. One reason reverse mortgages will continue to gain popularity among retired people is that unlike home equity loans or second mortgages, the loans are not structured based on income or an ability to make payments"
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- Investment News issues this caveat "On the surface, the idea of enabling older homeowners to convert part of their real estate equity into tax-free income while staying in the home seems like a no-brainer. The trouble is, since reverse mortgages started gaining popularity in the late 1990s, many senior citizens have been victimized by shoddy sales practices. A cited quote says "It's still The Wild west out there". But "as the 70 million members of the baby boom generation hit the qualifying age for a reverse mortgage (62), there is good reason to believe the forces of supply and demand will lead to significant improvements in the way these loans are sold, structured and maintained".
- Convertible Bonds Investment-grade convertible bonds can introduce some capital appreciation to a portfolio heavy on income-producing intermediate-term bonds.
- Master Limited Partnerships– article discusses how teh packaging of master limited partnerships into mutual funds, exchange-traded notes and exchange-traded funds is introducing a viable way to hold these higher-yielding investments in qualified retirement accounts with a less complicated tax structure.
What About Structured Settlement Annuities For Injury Victims and Lawyers?
Although the article does not explicitly address structured settlement annuities, plaintiffs with significant personal physical injuries often encounter similar challenges as retirees. Their disabilities or the loss of a primary breadwinner can effectively place them in a situation comparable to that of retirees.
Structured settlement annuities offer a reliable source of predictable income. They provide a robust solution for maintaining flexibility to navigate riskier investments and strategies while establishing a consistent and stable income stream that helps plaintiffs endure periods of financial uncertainty.
A structured settlement annuity is an advanced form of income annuity that can include a deferred annuity and may offer multiple payment streams, designed to meet diverse requirements related to timing and payment amounts. Read What Are Structured Settlement Annuities? Structured Settlement Annuities 2025
Investment News' immediate annuity strategy is the "longevity insurance approach", to write life only annuities that cease payment upon death to maximize yield. They refer to this as " the no-load version, skip the death benefit, just lock in the income"
This approach is effective if you have life insurance to offset the loss of principal, addressing concerns about passing away before the annuity cost is fully paid. For healthy and insurable retirees, this strategy can be advantageous as life insurance helps mitigate this risk. Additionally, 20-year level premium term insurance is available for issue ages up to 70.
For more information about immediate annuities, income annuities or structured settlement annuities or if you need structured settlement quotes now call John Darer at 888-325-8640
Last updated July 24, 2025
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