Safe Money Radio

Retire with Income, Not with Assets: Tom Hegna on Retiring Without Running Out of Money

A full account feels like a finished job. You saved for 30 or 40 years, and the balance on your statement says you did it right. That feeling is real, and it is earned. It is also different from having a plan that pays your bills for as long as you live.

by, Brett Blake
Oct 13, 2026

About This Blog

A balance sits there. It does not send a check on the first of the month, and it does not raise that check when prices go up. Many people with healthy balances still hold back, because spending feels like losing ground. Tom Hegna has spent decades on this problem, and he builds his answer on one idea. In his words, you don't retire on assets. You retire on income.

On this episode of Safe Money Radio, Brett Blake talks with Tom Hegna, a retired U.S. Army Lieutenant Colonel, former First Vice President at New York Life, and bestselling author. Tom spent 30 years on the road, about 200 days a year, teaching retirement income, and today he is mostly retired. You can learn more about his books and videos at TomHegna.com.

Their conversation covers six ideas worth knowing before you retire.

Income, Not Assets

Tom starts with a simple point. A balance is a number, and income is what pays the bills. He says people who hold a pile of assets with no income coming in tend to be among the least happy in retirement, so he asks a different question. What does your money pay you each month? He owns annuities that begin paying at different times, and he notes that the longer you wait to start one, the higher the check. He also says income needs to rise, since a check that stays flat loses ground to higher prices. Guarantees in an annuity depend on the claims-paying ability of the issuing insurance company, and annuities may not be right for everyone.

The Just-In-Case Retirement

Tom calls a habit he sees often the just in case retirement. A retiree has plenty of money and does not touch it, because politics feel divided, the market feels volatile, and the news feels tense. Tom says he has asked retirees about the trips and the country club membership they once planned, only to hear that now is not the time. The money stays put, and it eventually passes to the children, who may spend it on the cruise and the club. Tom's view is that retirement is meant to be spent, and he suggests leaving your children life insurance instead of your account balance. He says he spends his own paychecks and playchecks happily. What fits your family depends on your own situation.

Protecting What You Built

When Tom turned 50, he set a rule for himself. He wanted to make as much as he could while holding on to what he already had. His own mix includes annuities, stocks, and real estate. He also explains why the order of your returns matters once you start taking money out. In his example, a retiree can average 10 percent a year for 20 years, withdraw only 5 percent a year, and still run out of money, because early losses land while withdrawals are underway. The name for this is sequence of returns risk. Tom says the average return stops being the number that matters, and the sequence takes its place.

Annuities In Plain English

Tom says there are two basic types of annuity. Income annuities turn a sum of money into payments that start now or years from now. Growth annuities earn interest and work more like a savings product. An annuity is a contract with an insurance company, and it is not FDIC insured. Tom asks why an insurance company is the one to offer it. His answer is that a life insurance company sits on both sides of the same risk. Life insurance pays if you die too soon, and an annuity pays if you live a long time. He says that balance lets the company manage the risk of a long life, subject to the terms of the contract. A given annuity may or may not suit you, and the answer depends on your age, goals, and situation.

Long-Term Care Planning

Tom says a retirement plan is not complete without a plan for long-term care, and he speaks from experience. He made his parents buy long-term care coverage 18 years ago, even though they did not want it. Both were teachers, and both later moved into assisted living at about $10,000 a month. Tom says he cannot imagine their retirement without those policies. His own policy is a traditional long-term care policy that he says you can no longer buy. A more common option today is a life insurance policy with a long-term care rider, and certain annuities may add income for people who do not qualify for coverage. His message is that a plan beats no plan, and a licensed professional can walk through costs and terms for your state.

It's Not Too Late

Tom says there is not a time when it is too late to plan. In his book Don't Worry, Retire Happy, he writes about a woman who was 55, newly divorced, and had almost no money. By 71 she retired with her highest income yet. He also says the best time to start is in your 20s, because time is the biggest asset you have while building wealth. He adds that retirement income is not a do-it-yourself project. He works with two professionals himself, because there are thousands of products on the market, and the right fit for a 65-year-old couple is not the right fit for an 85-year-old widow.

FAQ

Why does Tom Hegna say you retire on income, not assets? Tom says a balance is a number, and income is what pays your bills. He says people who hold assets without income coming in tend to be among the least happy in retirement, so he looks first at what the money pays each month.

What is sequence of returns risk? It is the risk that the order of your investment returns decides how long your money lasts. Tom's example is a retiree who averages 10 percent a year for 20 years, withdraws 5 percent a year, and still runs out because early losses landed while withdrawals were underway.

What are the two basic types of annuity? Tom describes income annuities, which turn a sum of money into payments that start now or later, and growth annuities, which earn interest and work more like a savings product. An annuity is a contract with an insurance company and is not FDIC insured. Annuities may not be suitable for everyone and are subject to state availability and individual suitability.

Is it too late to plan for retirement in my fifties or sixties? Tom says there is not a time when it is too late. He tells the story of a woman who started at 55 with almost no money and retired at 71 with her highest income yet. A good first step is to look at your own numbers with a licensed professional.

Where To Start

Start with your own numbers. Run the free WIYN calculator at brettblake.annuity.com. It takes about three minutes and shows the gap between the income you want and the income you have. When you are ready to talk it through, book a Retirement Clarity Session with Brett. No obligation, no pressure. Brett is a licensed insurance agent and may recommend an annuity if it fits.

Worry Less. Live Longer.

About the host

Brett A. Blake is the CEO of Annuity.com, Inc. and host of Safe Money Radio. He built a nearly $1B business, starting near $50M, before stepping into retirement income education full-time. Brett is a licensed insurance agent, not a CPA or tax attorney. He lives in Gilbert, Arizona with his wife Erin and their five children and three grandchildren.

About the guest

Tom Hegna is a retired U.S. Army Lieutenant Colonel and a former First Vice President at New York Life. He is a bestselling author and retirement income economist who has delivered more than 5,000 seminars and appeared in national PBS specials on retirement. His books include Paychecks and Playchecks and Don't Worry, Retire Happy. Tom is not a CPA or tax attorney.

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Follow Brett Blake

LinkedIn: @brettblake | Retirement tools: brettblake.annuity.com | Email: brett.blake@annuity.com

Follow Tom Hegna

Website: tomhegna.com | YouTube: @TomHegna | LinkedIn: @tomhegna

#RetirementIncome #SafeMoney #GuaranteedIncome #Annuities #RetirementPlanning #SequenceOfReturns #LongTermCare #LifetimeIncome #RetireHappy #SafeMoneyRadio

DISCLAIMER:

Safe Money Radio is for educational purposes only and does not constitute investment, tax, or legal advice. Products discussed may or may not be suitable for your situation and are subject to state availability and individual suitability.

Any guarantees discussed are backed by the claims-paying ability of the issuing insurance company. Guarantees are not government-backed or provided by Annuity.com, Inc.

By submitting your information through any Safe Money Radio call to action, you consent to be contacted by a licensed insurance agent about products and services that may include annuities.

Annuity.com, Inc. and Brett A. Blake are compensated through commissions and other consideration paid by insurance carriers on policies sold. Neither is a fee-only advisor. Brett is a licensed insurance agent, not a CPA or tax attorney.

Annuity.com, Inc. is a licensed insurance agency. National Producer Number (NPN): 21086345. Doing business in Florida and California as Annuity.com Insurance Marketing, CA License No. 6013124. In New York, licensed as Annuity.com Insurance Solutions, License No. LA-1860109.

GUEST DISCLOSURE:

Tom Hegna is a podcast guest appearing in his individual professional capacity. Views expressed on this episode are his own and do not necessarily reflect those of Safe Money Radio, Brett A. Blake, or Annuity.com, Inc.

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