Savings Streams

Physician's Money Digest, August 2005, Volume 12, Issue 12

Remember when retirement didn'tpose a problem for America? Doctorsacross the country shared a bright visionof the golden years; these were the daysthey were going to spend gently unwindingafter years of dedicated service totheir profession. Today, the sun doesn'tset for some professionals when they turnage 65, including physicians. Facing thepossibility of a longer lifespan, doctorsare extending their years on the job, inreturn for a few more paychecks. Ifstretching out your career isn't somethingyou plan on doing, it might be time tocheck out the latest twist on the variableannuity. A guaranteed minimum withdrawalbenefit borrows from the old fashionedcorporate retirement pensionplan and provides retirees with a steadystream of income regardless of the market'sbehavior. If it sounds too good tobe true, it is; there are potential drawbacks,including withdrawal fees, annuityexpenses, and penalties for early withdrawals.However, if a guaranteedincome in retirement sounds appealing,explore the topic with your advisor orinsurance company.