Enjoying your retirement is hard to do when you constantly think about your IRA income and other retirement investments. If you were honest you probably think about money and your investments several times a day.

You probably check the paper almost every morning or catch the news just to find out how your stocks and mutual funds are doing. While it is satisfying when the market is doing well, it is disheartening when the market is not doing well. How would you like to get off the stock market roller coaster and enjoy your hard earned retirement? How would like to never worry about your investments ever again?

Until recently it wasn’t really an option. There just wasn’t any real alternatives to help stay away from the market. CD’s don’t pay enough and bonds don’t pay quite enough. Real estate was the only real option and if you don’t like to invest in real estate you were out of luck. Not anymore! Your IRA income and your retirement income can now be guaranteed, safe, and get close to market returns. Since that is what investments are for, income, let’s look at a better solution to your IRA income and retirement money needs.

You do not have to be in the market any longer. The roller coaster ride is over.

To end your roller coaster ride and guarantee your IRA income, changes to how you are investing need to be made. Annuity laddering is the answer. The concept can be a little confusing at first but with a little study you will be a master of the idea very soon.

How Annuity Laddering Works

To get started you need to decide how much IRA income and retirement income you are going to need. Be very diligent in this area. Write out your normal monthly expenses then add a bit, 10-20% to account for anything that may have been missed.

Now, set aside your emergency fund. Three to six months of income usually works but whatever you feel comfortable with. Remember that once your annuity laddering plan is started, you will want to try to refrain from taking money from your income generating assets except the income that you take out monthly.

For the plan to work you will need three types of annuities:

1. Short Term – Income for 5 years
2. Intermediate – Growth for 5 years then income for 5 years
3. Long Term – Growth for 10 years and then income and growth

What you do is invest exactly the amount you need for your monthly income supplement into the short term annuity. This annuity will pay you income for 5 years along with your original principal. You won’t need much of your total assets to be able to get to your total income needs.

Next you do the same thing with the intermediate term annuity. This annuity will grow for 5 years and then pay you income like the first annuity for 5 years. So it is growth and then income.

The third annuity will have been growing for 10 years. It is very likely to have grown to replace all of the money that you put into the investments for the first ten years. Use this money to provide for the next 5 years and start the plan over. You won’t need all of the third annuity for your monthly income needs so just use what is needed and leave the rest inside the annuity to provide future income. Think of it as starting the plan over every 10 years.

This kind of annuity has more options that will allow you to keep access to the principal and just take interest. If that income is enough then you may want to just use that option. This annuity has been available for the entire 10 years has been growing for 10 years. It also grows with the market to keep your investments inflation protected.

Annuity laddering to increase your IRA income gets you off of the stock market roller coaster for good! You will never have to worry about money ever again. No more checking the paper every day or worrying about poor performing investments again! Free up your mind from worry and enjoy your retirement!

Disclaimer: Always seek individual advice from a licensed professional. This article is for general information purposes only and is not a substitute for personal advice.

Author's Bio: 

Keith Dennis works exclusively with small business owners to help them create tax-free income streams for retirement. Business owners are often stuck in the tax-deferred investment trap. They get a small break now and then end up paying much higher taxes later because they lose their business deductions. Then on top of that, their income is usually 100% taxable!

With tax-free investing you can literally have twice the income in retirement saving the same amount of money, retire sooner, or even save about half as much versus tax-deferred investments.

Get it touch with Keith today to learn how it works through the Small Business Retirement Group's Fan Page.