What is lifetime income insurance worth?

What is lifetime income insurance worth?

Imagine you decide to retire at the end of 2021 and plan to spend $25,000 each year from a balanced portfolio of $500,000 of stocks and bonds. Before this year, you would have had about an 80% chance of being able to finance 30 years of income. Fast forward to today, when your portfolio is down 20% or more, would you still feel comfortable spending $25,000?

How much would you pay to know that, despite recent poor market performance, you could still withdraw $25,000 a year and not have to worry about your investments going down or even your lifespan?

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