“I don't like annuities.”
A fellow parishioner and financial planner said that to me recently during coffee hour after church.
I smiled and asked a simple question.
“Do you know why?”
What followed wasn't a debate. It was one of the most enjoyable professional conversations I've had in a long time because we quickly discovered we weren't talking about the same thing.
He was thinking about annuities.
I was thinking about retirement income.
Those aren't always the same conversation.
Retirement Changes the Question
Most people spend their working years asking one question:
“How do I accumulate the largest retirement nest egg possible?”
That's an important question.
Retirement asks a different one.
“How efficiently can those assets produce dependable income for the rest of your life, no matter how long you live or what the market does?”
Growing wealth and creating dependable retirement income are different planning challenges. That's why I believe retirement income deserves its own discipline.
The Portfolio Doesn't Go Away
During our conversation, we talked about bonds.
He mentioned they were currently yielding around 3–4% and pointed out an important advantage:
“You still own the principal.”
He's right.
Bonds have an important role in many retirement portfolios.
But my question was different.
Do bonds alone solve every retirement income challenge?
My answer is no.
The goal isn't to replace a well-managed investment portfolio.
The goal is to change the job the portfolio has to perform.
When essential monthly expenses are covered by dependable lifetime income, something important happens.
An income floor gives the rest of the portfolio permission to take the risks necessary to continue growing.
Instead of depending on investments to produce next month's paycheck, the portfolio can continue doing what it was designed to do—grow over the long term.
That's not replacing investments.
That's strengthening the overall retirement strategy.
Then the Conversation Changed
I asked him another question.
“What are mortality credits?”
His demeanor changed.
We stopped talking about products.
We started talking about mathematics.
Most retirees have never heard of mortality credits. Many financial professionals have never had them explained. Yet mortality credits may be one of the most important concepts in retirement income planning because they represent something traditional investments simply cannot create.
Stocks don't have them.
Bonds don't have them.
Mutual funds don't have them.
ETFs don't have them.
Certificates of Deposit don't have them.
Only life insurance companies can create mortality credits because only they pool longevity risk.
If you've never had mortality credits explained, read Annuities, Lifetime Income, and Mortality Credits. Understanding that one concept may change the way you think about retirement income.
Why I'm Pursuing the RICP®
That conversation reinforced why I'm pursuing the Retirement Income Certified Professional (RICP®) designation.
My goal isn't simply to understand financial products.
It's to better understand the research, mathematics, and planning strategies that help people create dependable retirement income.
Helping clients accumulate assets is one discipline.
Helping them confidently spend those assets throughout retirement is another.
Taxes can complicate that transition too. In Taxes in Retirement, I explain why the amount shown on a retirement account statement may not equal the amount available to spend.
My Role Isn't to Replace Your Financial Planner
One of the most important things I shared that morning had nothing to do with annuities.
I told him my goal isn't to replace financial planners.
It's to make them even more valuable to their clients.
Investment professionals help families accumulate and manage wealth.
My specialty is helping solve one of retirement's biggest challenges—creating dependable lifetime income while allowing the investment portfolio to continue doing what it does best.
Those aren't competing missions.
They're complementary.
The best retirement plans aren't built around a product.
They're built around a process.
Let's Have a Different Conversation
If you're approaching retirement, I'd like to invite you to a different kind of conversation.
Not a conversation about buying an annuity.
Not a conversation about moving your investments.
A conversation about retirement income.
I help people answer questions about retirement they didn't even know to ask.
Questions like:
- Will my income last as long as I do?
- What happens if the market falls after I retire?
- Can I create dependable income without giving up the opportunity for long-term growth?
- What are mortality credits, and why haven't I heard of them before?
If you already have a trusted financial planner, that's wonderful.
Keep them.
My role isn't to replace the professionals you trust.
It's to complement their work by helping solve one of retirement's most important challenges:
Creating dependable income for the rest of your life, no matter how long you live or what the market does.
Because in the end, retirement isn't measured by the size of your portfolio.
It's measured by the confidence to enjoy the life you've worked so hard to build.
Kurt Lytle is the founder of IUL.Solutions, an independent insurance practice based in Nashville, TN, specializing in retirement income and protection strategies. All recommendations are made only after a full suitability review in accordance with applicable state insurance regulations. IUL.Solutions does not provide tax, legal, or investment advice. Consult your qualified tax, legal, or financial professionals regarding your individual circumstances. Insurance guarantees are backed solely by the claims-paying ability of the issuing insurance company. NPN #8993693.