Growth • Dividends/Bonds • Annuities
Retirement income isn’t one-size-fits-all. Some strategies favor growth, others prioritize stability and some are designed to create confidence in spending and managing risk. The right approach depends on how you think about risk, income and peace of mind.
The Surfing Analogy
Growth investing is like surfing. The waves can be thrilling — but they’re unpredictable. Some rides are incredible. Others knock you off the board — when markets crash, they can take four to six years to recover fully, as we experienced with the Dotcom Crash and the 2008 financial crisis.
If you love the upside and can tolerate volatility, growth assets can play an important role. They’re designed to build wealth over time, not necessarily provide consistent income year to year.
This approach works best for:
- Long time horizons
- Flexible spending needs
- Investors comfortable with ups and downs
Key traits:
- Higher growth potential
- More volatile
- Not designed for predictable income
The Cruise Analogy
This approach is like taking a cruise instead of a speedboat. You still move forward and enjoy the journey — but the ride is smoother. Dividend stocks and bonds can provide income while offering more stability than pure growth strategies. Returns may be lower in strong markets, but drawdowns are often more manageable during rough periods.
This middle ground appeals to retirees who want:
- Ongoing income
- Reduced volatility
- Some exposure to growth
Key traits:
- Regular income
- Moderate risk
- A smoother ride than with growth-only portfolios
The Coffee Cup Analogy
Imagine sitting in a diner. Every 15 minutes, the server comes by and refills your coffee — no questions, no limits, no worries about running out. You drink freely because you know more is coming.
That’s how guaranteed income works.
When a portion of retirement income is guaranteed, people tend to spend more confidently. In fact, research from the Retirement Income Institute studying over 20,000 retirees age 55+ found that households with strong pension-like income sources spent nearly twice as much as those relying solely on investments.
It’s not about recklessness — it’s about certainty. When income is dependable, retirees enjoy retirement more fully.
This approach works best for:
- Retirees who want guaranteed income
- Those worried about outliving their savings
- Retirees who value certainty over upside
Key traits:
- Predictable income
- Guaranteed success
- Protection from market downturns
- Designed for longevity and spending confidence
WHICH ONE IS BEST FOR YOU?
Most successful retirement plans don’t rely on one single approach. Instead, they combine strategies:
Growth assets for long-term flexibility, growth and protection from inflation
Stable income assets for consistency and some risk reduction
Guaranteed income for confidence, essential bill payments and spending
DIFFERENT TOOLS. ONE INTENTIONAL PLAN.
Any comments regarding safe and secure investments and/or guaranteed income streams refer only to fixed insurance products overseen by state insurance regulators and not any investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company and are not guaranteed by any bank or the FDIC.