Ben Millan speaks with George Alger about closing the income gap for seniors.
Understanding the Income Gap
The “income gap” is the difference between what a person needs to maintain their lifestyle (e.g., $5,000/month) and what they actually receive from guaranteed sources like Social Security or pensions (e.g., $2,500/month). Millan emphasizes that retirement is simple in theory: you can retire once you can replicate your current income through other means.
Strategies for Filling the Gap
Asset Conversion: Millan uses specialized software to determine how much of a person’s savings (401ks, IRAs, brokerage accounts) must be converted into guaranteed monthly income to cover their specific shortfall.
Prioritizing Income: He argues that personal investments should not even be discussed until the basic income gap is filled.
The Reality of Savings: Millan clarifies that he cannot “magically” create income for those without assets. For retirees relying solely on Social Security, the only option may be to continue working or take on part-time jobs like ride-sharing.
Key Planning Advice
Focus on Monthly Cash Flow: Rather than focusing on a “lump sum” target (like having $1 million), retirees should focus on what that money produces in monthly guaranteed income, especially when accounting for inflation.
Critical Timing: The most crucial time for planning is the window of five years before or five years after retirement.
Start Early: The biggest mistake people make is waiting until they stop working to start the conversation. Planning should begin at least five years before the intended retirement date.
TV broadcast week beginning 05/10/26
Producer: George Alger
Sponsor: NONPROFIT FIRE, Google Ad Grants Community Building NonProfitFire.org
Sponsor: SKYWORKS MARKETING, Performance Advertising SkyworksMarketing.com