Life Income Plan
Categories: Mutual Funds, Managed Funds
What's the plan, Stan? What's it gonna be, Pip?
The structure of a life income plan is often used for high-income professionals. These folks want to continue living the high life in retirement (impromptu flights to Dubai for shopping trips, black rhino tongue sandwiches for lunch, etc.) but don't want to have to worry about the vagaries of the stock or bond markets as they enter their golden years.
Meanwhile, many of your typical retirement plans have contribution limits, so they can't get the most out of those usual routes. A life income plan fills in the gap. The client would shell out some cash, essentially buying a future stream of income.
A life income plan is similar to an annuity. It's just a matter of the structure, which relies on pooled investments.