Why Retirement Money Needs a Different Strategy
One of the biggest shifts in retirement is this: money takes on a new purpose.
During your working years, the goal was to grow your savings. Now, the question becomes, how do I use what I’ve saved to support my lifestyle, cover expenses, and help make it last?
That’s why so many people ask: “If I have $100,000 set aside, what are my options in retirement?”
The answer depends on what you need most—growth, protection, or income. And that’s where annuities can sometimes play a role.
From Saving Mode to Spending Mode
While you were working, you may have contributed to 401(k)s, IRAs, or other accounts with a focus on growth. In retirement, though, the focus changes. It becomes less about building wealth and more about balancing two goals:
- Protection: Helping safeguard your savings from market volatility.
- Sustainability: Creating a reliable income stream to cover living costs.
This is where your $100K decision is really about clarifying what outcome you want from your money.
Using Annuities to Support Growth or Income
Annuities can be structured in different ways, depending on whether the goal is to continue growing your money or begin receiving income.
- Growth-Oriented Annuities
Some annuities, such as multi-year guaranteed annuities (MYGAs), are designed to provide growth at a fixed rate over a set period. At the end of that period, depending on the contract, you may receive a lump sum payout.
This type of annuity may be helpful if you don’t need income immediately but would like your money to continue working for you with a degree of protection.
- Income-Oriented Annuities
Other annuities are designed to create predictable income. A fixed indexed annuity (FIA), for example, can be structured to provide payments at regular intervals—sometimes for a set number of years, or even for life, depending on the contract.
These payments may help provide steady cash flow, functioning much like a paycheck in retirement.
Matching the Tool to the Timing
Choosing between a growth annuity and an income annuity isn’t about which one is “better.” It’s about where you are in your retirement journey and what you need your savings to do for you.
- Still a few years out? Growth-focused annuities may help your money accumulate until you’re ready to use it.
- Already retired or close to it? Income-focused annuities may be structured to provide consistent payouts that support your retirement income strategy.
Rethinking the $100K Question
Asking “What should I do with $100K in retirement?” is really asking “How do I want this money to serve me now?”
It’s not just about the balance itself—it’s about the role it plays in your broader retirement plan. With the right structure, that $100K may help you address risks, generate income, or provide more confidence as you navigate retirement.
Bottom Line
Your retirement strategy isn’t only about how much you’ve saved—it’s about how you use it. That lump sum you’re considering could be positioned to help provide growth, income, or protection, depending on your needs.
If you’re wondering how best to position your savings for the years ahead, let’s talk. Together, we can explore options that align with your goals and help support your vision for retirement.
