No rate talk, no product comparisons today. Just a question: who do you want to provide for — and have you written it down?
Most retirement planning is about you — your income, your timeline, your risk. That's right, as far as it goes. But almost everyone I sit down with has a second answer when I ask what the money is really for. A spouse. Kids. Grandkids. A church. A cause. Someone.
The worksheet (three questions, ten minutes).
Grab a piece of paper and write down your answers. This is the exercise I do with clients before we ever talk about products.
- 1. Who depends on this money besides me? Write their names. Not "family" — names. A spouse who needs income for life? A child with special needs? A grandchild's tuition? Be specific.
- 2. What would I want to happen to it if I weren't here next year? Would the income keep coming to my spouse? Would the balance pass to the kids? Would it get caught in probate? Write down what you'd want — then, honestly, what you think would actually happen today.
- 3. When did I last check my beneficiary forms? Your IRA, your 401(k), your life insurance, any annuity. These forms override your will. If the answer is "I don't remember," that's the first thing to fix.
Why this comes before any product conversation.
If the answer to question 1 is "my spouse, for as long as she lives," that points toward lifetime income with a spousal continuation. If it's "my kids, as a lump sum," that points somewhere different. The product should follow the people — never the other way around.
If you did the exercise and something surprised you, I'd like to hear about it. That's usually where the real planning starts.
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Author of Indexed Annuity Secrets and founder of Pacific Ridgeway Insurance Solutions in San Diego. Navy veteran. Licensed financial professional, CA #4132743.
Fixed indexed annuities are insurance products, not investments. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. This article is for educational purposes only and is not financial, investment, tax, or insurance advice.