Safety-First Retirement: Build a Reliable Income Floor

True peace of mind in retirement doesn’t come from guessing — it comes from knowing your bills are covered with guaranteed, predictable income.

In this episode of the Retirement Income School™, I walk you through how to build your income floor — the foundation of your retirement income plan that ensures your essential monthly expenses are always covered, regardless of market conditions or lifespan.

You’ll learn how to calculate your income gap, where to find guaranteed income sources, and why this safety-first approach works better than relying on hope and market returns.

The Problem with Savings-Only Thinking

Most retirement plans focus on how much you’ve saved — but that number can fluctuate, and it doesn’t tell you what matters most:

Can you generate enough monthly income to safely cover your expenses for life?

This mindset shift — from a savings balance focus to an income-first mindset — is key to building a financially relaxed retirement.

What Is an Income Floor?

Your income floor is made up of guaranteed income sources that cover your essential expenses, including:

• Housing and utilities

• Food and groceries

• Healthcare and insurance

• Transportation

When those core needs are met every month — no matter what the market is doing — it gives you a powerful sense of security and peace.

The Best Sources of Guaranteed Income

There are three main ways to build an income floor:

1. Social Security – A stable benefit based on your work history

2. Pensions – Employer-funded monthly income (if available)

3. Fixed Index Annuities with Lifetime Income Riders – Your personal pension, guaranteed for life

If you don’t have a pension, you can create your own with a properly structured annuity.

The Power of Income Over Market Performance

Once you know your core monthly needs are covered, you gain:

• Mental freedom from market watching

• Confidence in your monthly budget

• A stronger financial foundation to build from

And then… the rest is fun money.

You can take on some growth-oriented investments, travel, give, or simply enjoy life without worrying about every market dip.

How to Build Your Own Income Floor

Here’s the step-by-step plan I walk you through:

1. Identify Your Monthly Essentials
   Tally up everything you need to live comfortably: housing, healthcare, food, utilities, and transportation.

2. Add Up Your Guaranteed Income
   Combine your Social Security, any pension income, and existing annuities.

3. Calculate the Gap
   Subtract your guaranteed income from your essential expenses.

4. Fill the Gap
   Use a fixed index annuity with a lifetime income rider to fill the gap — and create your own retirement paycheck.

The Floor-and-Upside Strategy

Think of your plan like a pyramid:

• Base Layer (The Floor): Safety-first, guaranteed income for your essentials

• Top Layer (The Upside): Market-based assets to grow wealth and fund lifestyle goals

Once your floor is in place, you’re free to explore, invest, and enjoy without fear.

Why This Matters More As You Age

As you approach retirement or are already in it, your risk tolerance, health, and income reliability all start to shift.

Having an income floor means:

• You aren’t forced to sell investments in a downturn

• You aren’t depending on hope

• You have income for life

And that changes everything.

What to Do Next

Want help identifying your income gap or exploring options to create guaranteed lifetime income? I’ll walk you through your custom solution. Schedule a Call!

Ready to Retire Financially Relaxed?

My goal is to help you eliminate the fear of running out of money, avoid costly mistakes, and retire with confidence and security. When you have safe, predictable income in place, you’re free to actually enjoy retirement — not just worry your way through it.

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This is your chance to learn what you wish school had taught you so you can learn how to keep your money safe and make it last, so you can enjoy retirement!