Our client, the Alliance for Lifetime Income (ALI), recently announced a new retirement planning tool. The M.U.G. approach to protecting your income helps you think about retirement income planning relative to your expenses. M.U.G. stands for Mortgage, Utilities, Groceries. It is meant to represent the various essential monthly expenses people often need to cover in retirement.
With this approach, you first identify essential monthly expenses. Then you create a plan to ensure you have enough protected lifetime income to help cover these expenses.
ALI’s easy-to-understand guide [PDF] has a simple worksheet to get you started on determining your essential expenses, and how an annuity can help cover them.
A deeper dive into the approach, in this article, reports that annuity owners are more confident and feel more freedom to spend and invest.