Are Guaranteed Lifetime Withdrawal Benefits (GLWB) Worth It?

Imagine that you decide to retire at the end of 2021 and plan to withdraw $25,000 each year from a $500,000 balanced portfolio of stocks and bonds. Before this year, you’ll have about an 80% chance of funding 30 years of income. Fast forward to today, when your portfolio is down 20% or more, can you still afford to spend $25,000?

How much would you pay to know that, despite the recent poor performance of the market, you can still withdraw $25,000 a year and not have to worry about how your investments are doing or even how long you will live?

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