Are you Ready to Live Forever? How to Ensure your Financial Security for Eternity
Technology is the backbone of the 21st century and its advancements have provided us with major health implications. In 2018 alone, improvements are expected to be made in regulating cholesterol levels, sleep apnea, and diabetes prevention via artificial pancreases. What does this all mean? History tells us that our life expectancy rates have been climbing at a very high level, but we soon could be rising exponentially higher due to medical advancements. What if a cure for cancer was only 5-10 years away? Imagine how long our average lifespan would be.
Take the theories and opinions of Ray Kurzweil, a scientist and futurist who has done extensive research in this field. Kurzweil believes that with the technology created by 2045, we should be able to live forever! As far-fetched as that may seem, it is a theory with some merit.
"I believe we will reach a point around 2029 when medical technologies will add one additional year every year to your life expectancy,” Kurzweil theorizes. He is under the belief that nanomachines will be constructed that can take over control of our immune systems, preventing disease.
Going by the chart above, Kurzweil expects even longer lifespans moving forward.
Living longer is great for having more time with our families and remaining healthy. However, there are financial implications to living longer. At the current rate, retirement savings usually set a target date of saving until 80 or 85. What if we are set to live past 95 or 100? Most personal retirement plans don’t currently account for that.
Thus the need for us to establish an immediate fixed income annuity. This is a tax-deferred, insurance plan that guarantees a predictable income stream immediately. Unlike other life insurance plans or retirement plans, there is no expiration date to an immediate annuity. You simply collect a specified amount of income every year for the rest of your life.
In order to set up an immediate annuity, a large lump sum payment is the standard operating practice. A certain amount of that lump sum is distributed to you each year until it runs out. However, you can continue to collect an income for the rest of your life from it. The advantage of never outliving your retirement savings seems like an opportunity too good to pass up.
Here at ODI Financial, we would love to help answer any questions. Our team has over 30 years of experience in the field and are a great resource to planning for the future, today.
