Retire RIght 08.06.17 Seg2.mp3

Retire Right with Alan Becker
Sunday, August 6th

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Do you. You're listening to retire right we gallon better on the retirement. News network. I Megan goes act with the retirement news network here with Allan Becker of retirement solutions group. You set up a strategy session with Allen to discuss your retirement. That plan in place at that something you haven't done yet or maybe you're interested in a second opinion. You can reach out to Allen now at 913685914. To. That's 9136859. Ford two to Alan you've given us and great basic intro to this a world of annuities and how one could work in the right situation let's get into the different types now to get a better understanding of of how they work and what they are. Let's do that but to our listeners understand that nothing is replacement for it could review with qualified financial planner because there. He's so many options out there and everybody's situation is unique but there are two main types of annuities we are talking about. The immediate annuity and the deferred annuity. And immediately knew he's been around for a long time and it's my opinion the one that gets a lot of flak out there. And I'm not a huge fan but it's the concept is you trade. Lump sum of money for an income stream which means when I say trade you lose control and that's what a lot of people don't like me it's OK if you say this 100000 dollars I want. You know 5000 dollars a month for that for the rest of my life and you have an insurance company that's gonna make an offer you're OK with it. Fantastic. Many of my clients would rather maintain control have the ability to. Do something different if if they wanted to use something like through a purple and wanted to change the situation. But an immediate annuity is an irrevocable contract and it has to take place within thirty days to a year. In other words the income stream needs to start within a twelve month period on the other side there is these deferred annuities and they can be. Deferred for. A year or they can be deferred for a hundred years and really. What you're trying to accomplish. And you know maybe you need income somewhere in the future maybe you're just trying to defer some taxes on some money which of tell you though. I've seen this done a lot and that. Really gets us into further trouble with having a tax efficient planning. That if you're trying to create a legacy that's where we can use life insurance that's not an annuities job. Unfortunately many people uses that. What were really looking at a deferred annuities sometime in the future we're gonna meet income off of those funds. And we're looking at a solution. To create an income for example maybe I'm fifty years old or retire at 65 medium 55 or retire at 65. Maybe I'm sixty now retired 62 whatever the answer is you have to look at an annuity to create. That pension or that paycheck in retirement that its goal and that's were deferred annuity can really come in handy and they work with indexes like the S&P 500. Hang saying the NASDAQ after you you're basing your returns typically on an index or on the market. But you're not actually in the market which was hard for people to grasp of what that actually means they're translates to visit the money loses value you lose nothing. It would be a parable to playing blackjack at a casino. And every time in the house wins they let you keep your money you literally have no loss due to market volatility. And that's a fantastic thing we're talking about a retirement dollars. It daddy's at a great way to look at it so you know that's a review of just the basics of annuities which I think is. Very understandable makes a lot of sense so why Alan why is they are all this confusion about and you he's out there. Because you have advisors out there that are not licensed in annuities. And they would rather tell you to stay away from something that's gonna give you the solution potentially. To your issues if they don't sell the product themselves. And I think that's so unfortunate that people listened to that kind of advice rather than saying. Do you offer them. And why not because. The multibillion dollar industry and it's a way to get two games of the market not all of them but the gains of the market went out any. Market volatility here or downside loss in other words. The worst you can do is zero on ethics and there are very voters out there that are securities product just understand I'm not talking about those those do. Participate market volatility. As an IA our investment advisor represented. I am day. Have a fiduciary license to do what's in my client's best interest for many of them. The idea of guaranteeing a portion of their income. Duties of an annuity has a lot of merit. Now there's some people that like the risk involved to leave the market. Control is. Is a great part of that it. Doesn't mean that it knew he is something you should at least understand and discuss. But inside and doing there are some pieces that I think give real confused one is the commission's this is a product that pays a commission primarily. But is it any insurance companies choose. I'm primarily L products variable products I believe there's a few out there that you could be charged commission upfront out of your principal. But again that's not a product that I am a fair enough on the fixed. And fixed indexed annuities and SP isn't that type of product lines. The commissions are paid by the insurance Cary choose how these days if you're working with qualified money the representative of that insurance security agent is going to tell you. What they got paid and you have every right to ask unfortunately. Or fortunately it has no bearing on. The product that you should be looking matter shouldn't have any bearing the knew he shouldn't you should understand what the purpose of that product is. And that should drive. The solution you're looking for so if you want to have an income stream in this newly provides it you understand what it's providing that's the reason to take advantage of the new. Not based on what's being paid xmas is it you're paying it. But there's nothing wrong what Nolan and information and other issues surrender charges are surrender charge. My definition that is take charge that you don't pay unless you cancel a contract. Lot of people confuse that was ad there's a surrender charge that country you know certain investments there's peace and I'm. Years back and loads senators. Cost sometimes even commissions for buying and selling. Put that does are have a bearing if you wanna get into that stock or that mutual fund it has cost that are socialist. He surrendered church in his defeat that you're not paying less you elect to do most contracts have somewhere between seven and 10%. A year that is liquid and that you can withdraw from that. Contract. If you need to that will most likely affect the income plan that you design. So you need to look at that with caution that there are you can't needed an administrative charges also only charged. On the portion of love. The free withdrawals for example. And I if you had a CD and you needed ten dollars out of you have to break policy bulletin annuity that's it's a 100000 are nearly 101000 of it it's a free withdrawal you needed twelve your only Japan's surrender charge on that too. So don't let us surrender charge scary year confuse you just understand how it works. And this is not a solution for everything this is a solution for portion that you're trying to generate. Your own defined benefit plan for your own income plan for. We're talking a lot of at a news these days and annuities may be right for you you should take the time it's your future to find out if they are. There's a lot of questions that this kind of radiation can bring up. So I'm offering the next and hollers at no cost no obligation roundtable retirement review. Will put you through our roundtable retirement processes of proprietary process that we've created. To help you through income investment. Tax efficient. Legacy and help planning. This is our five star approach to teaching not only to retirement a retirement calming down 913. 68594229136859. Before 22. Glad to have you aboard here for re tire right with Alan backer Allan give you Allen's web site check that out again if you wanna get registered for what it is ongoing dinner workshops. How they great restaurants right here in our area code to retire right TC dot com. Allen holds those all throughout the years she can find one it's convenient for you to go to retire right Casey dot com. Taxes with the annuities Allan what are we need to know here. Making anything you're using in retirement you should look at the tax efficiency of it annuities are no different. And in general and these are tax deferred. Which means that the monies that are in them they don't hit your tax return every year regardless if you're pulling out only. The money you're taking out. So if you put it higher rated annuities kind of follows the same rules as Gary in general anything that comes out prior to the age of fifteen and a half. Have a 10% higher penalty on the games. Above that you're a half it's going to be ordinary income so I'm. Huge fan of using annuities just for tax deferral. I really like utilizing. Some of the features of life insurance is an asset class where we're going in that arena. Because life insurance you can also take money out and have a gross tax deferred but when you take the money adding can be actually tax free. A feature that duties do not happen unless they are rock virus. But that is also a possibility. I've had a lot of my business owners X actually. Had a bad year or had some bad investments. Bought a building this that or the other. Where they had some losses and they were able to convert some traditional IRAs into Ross. And great avenue to look at is to turn that. That. Tax year in two. He. Future income of tax free money so yet we always want to look at that tax efficiency of our portfolio. Allen with an annuity Darius this talk of guaranteed lifetime income I can't think of another I need to vehicle that has a guarantee like that. So hot idea that how does the insurance company actually offered guaranteed income. You're correct may have to use the word guaranteed I have to put on my life and health hat. And not to my investment and securities that. And when I do that we're talking about insurance products understanding guarantee. Is something called the state guaranty association up to 250000. Dollars. But before that it's that carriers that you're selecting. So in other words. You're annuity is only as good as the insurance company you're choosing. So we need to choose really strong rated insurance companies companies that are. In the a category. In the different rating agencies Standard and Poor's and Moody's. Companies like that it's real important that you have a strong financial. Backing with the community care because we want this money to last as long. But that's light immunity then and I and they can be part of your retirement income strategy along with any other vehicles that we talked about with those different tax profiles correct. Oh absolutely. We want a diversified portfolio. And when we're looking at the income in retirement can come from deferred annuities are investments. Moral and k's Roth IRAs life insurance part time jobs if we issues maybe even from inheritance are so many different. Pieces that we have to look at as we plan for retirement. That's why it's a snapshot and each person's or family's individual situation. And what they need. To live on as well what they're working with and then we can find out the right mix if any. That they knew he should play. Into the overall diversified portfolio. That we're working away. You know me and whether or creating your implementing and periodically revisiting its strategy. We have to build a strategy within that state that represents the true volatility. And risk tolerance. The person we're working with the fame and working with is able to tolerate this has its own complex challenges that are built into it. So why are nesting in the hands partly true financial professional somebody like those of us here retirement solutions here our she investments. It's very successful. And talented team here to help you get Natalie to retirement put through retirement. And we do this at no cost and no obligation to our roundtable retirement process. Us what you feel confident as you transition. To enter retirement so whether you're gonna retire in two or three days two or three years. Or ten to twenty years give us a call and let us assist you and make sure you're on the right direction he may call 91368594. Teaching this 9136859422. And we're gonna customized retirement income strategy. Just for you 9136859422. With many tiny two vehicles there are fees and taxes to consider. An ounce gonna take us through some other considerations when it comes to a new mideast that's coming up next. This is retire right with the Allan Becker on the retirement. News network. Whether you're approaching retirement or already retired transition into retirement can be a daunting thought. Clearly you didn't come. What is the market drops should you take Social Security. Joint retirement solutions group. And are risky investments for a discussion about these factors and more all of retirement solutions group treats you to a complimentary dinner at 801 chop house in Cleveland. You pick the game 6 PM on Tuesday August 15 or Thursday August 17. At 801 chuck passed in the Cleveland. Reservations are required so call 9136859422. To reserve your seat today. X 913685. To 9422. Seating is limited so call now to learn more about these events and how you can attend. Retirement solutions through 91368598422. Or online at retire right TC dot com. Investment advisory services offered through eighteen wealth management LLC. You are listening to retire right with the Allan Becker on the retirement. News network. I mega NASDAQ boundary type. Amid news network alongside Allen backer of retirement solutions group if you're ready to begin building the retirement of your dreams Allen insurer can help you here's his phone number to get started on that process it's 913. 685980. Port 229136859422. You can also check out Allen's web site goatee retire right Casey's dad come. We're talking about annuities and boy have they come a long way over the years were talking about some of their features. Most notably the fact that the right in new ready can do wonders for your overall game plan for retirement providing you with that. Guaranteed income income you can count on. What are the other features of an annuity though Allen that we knew we should know about perhaps he might even pay a fee for in May and there are a lot of feature. And benefits of these annuities as they've transitioned. Over the last several years things like long term care writers living benefit income writers. Or increasing income writers and in our writers something that can literally rides along with the policies sometimes they have a cost forms sometimes. Their built it. Which means the the cost isn't like OK it's 1% a year to have that featured just. Built into the overall a limits that the policy imposes perhaps. Remember that these benefits are something that you either choose or not to choose who you choose a new because it has that. Feature benefit. Which means you're looking at what it provides you. OK so if you have a long term care writer and this is a writers it. Would not having health restrictions on it. But gives you the ability to know that you're gonna have additional income if you enter a nursing home or home health care situation depending on how that writer written. That's a lot of peace of mind I've had clients that have. Wanted to get into a new he's just for that one feature because maybe don't have the health and they're not able to. Pick up a long term care policies so using alternatives these days there are very popular. Living benefit income Ryder. That's one that can guarantee your income for the rest your life and usually get a piece as a specific percentage. Say 567%. A year. So there's a lot of ways these annuities. Explain it meaning it could be 10%. Simple or 7% compound and in which is almost the same number wryly but tends sounds better in seven but then again compliments sounds better and simple. Sue working with a qualified professional a fiduciary that slices with a series 65 or 66. Securities license as well as a life and health licensed and understands these individual. Products and their eccentricities. Is the best way to get the knowledge of me you can call your current. Financial person or insurance person and see. If they have the knowledge or understand how these products work. But I am fearful that. It's the with the smallest amount of financial advisors out there truly are independent. Have access to both worlds and can use them efficiently and that's what we do here retirement solution strip each and every day and I think it's so important. Your overall planning strategy. To have the right product or solution. And really honestly not to get caught up in too much minutia where you're going to get confused by fees and and cost verses solutions and benefits Allan what else about annuities about their features that you think it's really important people now. Well something we said a few times since they show I think my you know overlooked. Which is the fact that an annuity is an income stream for the rest of your life it's also rest of your spouse's life which means you cannot outlive it. Which if you transition that back to the number one fear retirees this is really transferring the risk of ever running out of money into a virtual impossibility. Based on the claims paying ability of the insurance care and issues. And we wanna choose some good ones. But ultimately think about that first second when he ran out of principle the insurance company is still paying you know some carriers. They still are increasing your income and continuing to pay out for for him again both you and your spouse slacks that's fantastic thing. That you don't give and other vehicles and that's why. Many many people here that have shied away from annuities or that have been told to stay away when they go looking. Find out that while this is pretty cool this can eliminate a lot of my peers. And you know it's Saturday in additional. Social Security payment additional pension payment the difference is huge shoes. How much you wanna put in it and you choose ultimately how much you get out of it that way you've you've had a decided I need a Maxtor 20000 a year. So I need to put a month enough and that a newly created 20000 dollar a year income stream. Based on the guarantees that you've chosen that policy for example you've chosen a 7% guaranteed income stream. Then you know that that money you put and they're brought 7% a year and at some point it's gonna start paying out these that's aged bandit. 56%. Based on your life expectancy so that you can kind of come back into the number the key here is though. I don't think that this is something he should just start Goodling in figuring out and try and figure out the eighty something policies out there. By. Any different carriers. You really need to work with a qualified financial planner somebody like us here retirement solutions group that understand all the different products and nuances between the different ones out there to find at the rate. A new before you mean if you're working with a fiduciary there legally obligated to working your best interest so. Why look at the 75 products that don't work let's just narrow it down there 34 or five that do and figure out which one's the best option. Much more simpler less confusing. And should kitchen too where you wanna go a lot quicker a lot simpler. And with a lot less stress. Allen as you said to get the full scope of the benefits in new weakened providing no it's really best to talk with a financial professional but what are some things that you would suggest someone do before they come into an appointment it to get a basic understanding and whether an immunity might be right in the air situation. You know you can definitely cool annuities and put my my fear there is your gonna come up with just as many positives and negatives and a lot of them with tear out there. You really have to pay attention to who wrote it. Because if it's coming from. A situation where it's all securities based there might be anti nudity because. It's the opposite product it's the Chevy when they're the fort so to speak again be an example this may and I would work with somebody back and 2014. And we were talking about fixed annuity love the idea. They actually called up and canceled it. Few days later this is that we looked at money magazine and money magazine said not to buy entity should really. What do they say it was a letter C. d.s CDs are paying less than 1%. Solicit OK I want bought the money magazine. I looked at a combat capacity 86 advertisements and that money magazine in 85 of them are from securities companies and one of them was from a car insurance company so there wasn't one advertisement in the air from insurance companies so everybody in there was anti new. Because it's not their product line sue. You need to do further research to really look who you're listening to what you're talking about somebody like. Those of a series term solutions your perished investments. Not only working at fiduciary standard. That we hold future license but also we have the life and health place and so we're licenses certified. In both the life and health products such as the news we're talking about. As wells the investments that we're talking about. So we can give you true. Advice and information. On all these topics. But don't fear this the worldwide web get some questions and they write them down bring Amanda what actually focus and what's your budget how much you're spending what he want to have happen in retirement. And then decide how much of your money you want guarantees because source fusion pay so much. And your pension if you have one's gonna pay so much. And if you want more that guaranteed that needs only one thing that scared to eat out their Nazi annuities or what I'd really focusing on how much geared to income you need. And how much yet to work with and get all that. Put together. Then call us and 9136859422. Because then what you're gonna he would. Is he advice based on your individual situation. And the you'll be able to look at how that they knew he would fit into your overall play that's why we have the software the knowledge and the experience that we had. All these years is to help you navigate through this. Confusing and interesting landscape. Allen or at the end of our show today great interesting topic today and I wondered if he had anything else to add as we close things down well. I'm real passionate about it movies I think you can tell because I'm her passion helping people get to and their retirement doing the things that they enjoy spending their money. To accomplish their goals they would leave everything the kids will make reality if they wanna spend everything before it passed. We can make that a reality. And on the you know through literal there but the truth is everybody has unique. Dreams and values in what we wanna do is building plan that helps you. To create the income that you wanna retirement utilizing Social Security. Tensions. In communities if necessary. Using a diversified portfolio. Which is gonna generate some dividends and growth we're gonna look act if yours still want to work and retirement if you've got oil wells pomp and if you've got real estate out there whatever is that you built up. And having all those pieces work together. So that you can have the retirement you volley stream for. It can be a reality. If you've taken the time. To say but like we talked about earlier he got to act is this if you planner retiring in the next two or three days may be very retired here two or three years or even longer. You need to understand what it's gonna take to retire. We've heard people say use a 5% number we've heard 4% we even heard 3% when I'm talking about players if you have a 100000 dollars you can expect a little month 3004005000. Of that. Hundred per year before you run out of money and it's all a matter of longevity risk. And then your overall response. What we're putting together. Is a plan that utilizes. Year risk tolerance your concerns your dollars. Teach you choose to enter retirement whether we're looking at our taxable accounts money that we party pay taxes on. Or tax deferred accounts like our diaries swirling case. Or tax free accounts like her higher or rock fire straight social security and pensions and annuities and mixing them all together to create. An income plan that you can feel confident about the next ten dollars to get our roundtable retired review. No cost no obligation so please call me and 91368594. Teachers when you once you come to one of our great workshops or come straight into the office. Future questions answered we will accommodate that number in 913659422. You've been listening to retire right with Alan Decker on the retirement. The news network. Investing involves risk including the loss of principal no investment strategy can guarantee a profit or protect against loss in periods of declining values any references to protection benefits or lifetime income generally referred to a fixed insurance products never securities or investment products insurance and annuity product guarantees are backed by the financial strength and claims paying ability of the issuing insurance company are firm may be able to identify potential retirement income gaps and me introduce insurance products like annuities as a potential solution talk to your financial professional and your tax advisor about -- Social Security benefits can fit into a complete retirement income strategy financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits Allan Becker is an investment advisor representative and insurance professional with retirement solutions group retirement solutions group is an independent financial services firm that helps people create retirement strategies every day using a variety of insurance and investment products to work toward meeting their specific goals we are not permitted to offer and no statement made during -- show shall constitute tax or legal advice -- should talk to a qualified professional before making any decisions about your personal situation we are not affiliated with the US government or any governmental agency investment advisory services offered you -- wealth management LLC.