You have worked all your life to get to where you are financially. You DO NOT WANT to drop the ball now and or lose even one penny of your hard earned savings.
So, if you’re like most American Retirees, what are your options at this critical junction in your lives? When you stop and really think about this, there are Three Major Buckets that most Americans use for their retirement income dollars.
Let’s be generous, and assume that your Bank will give you 5% on your money. This is, of course, one of the SAFEST places to put your Retirement Dollars. But, with inflation moving higher, gas prices escalating, etc., can you really afford to live on a 5% interest rate, and have to pay ordinary income tax on those withdrawals? If your retirement account is, let’s say, $300,000, for the sake of argument, and you are in the 30% tax bracket, can you afford to live on just $15,000 a year, less $4,500 in Income Tax, PLUS having to pay tax on up to 85% of your Social Security Income as well? By the time all is said and done, you’re lucky if you net $10,500 per year on your interest income, and the IRS will definitely raid a large portion of your Social Security Income as well. Now, I agree with you that your savings are protected against any loss. But, does a 5% return on your retirement dollars, less taxes, achieve your retirement objectives? I know your answer is a resounding NO!!!
So, the typical American Family then turns to:
Is this the Answer? It is, if you can afford to lose 30% or more in the market and have 15 to 20 years to wait for the market to return the loss to you! Surely, you realize by now that if you lose just 30% in the Stock Market in just one year, it will take a 45% return the second year just to reach a break -even point! At your age, do you really want to lose sleep at night worrying over whether or not you will wake up with 30% or more of your retirement income wiped out because of another terror attack or a sudden drop on the Stock Market Roller Coaster rides? You are retired now. The time for growing your nest egg is over. Now, your primary concern should be to protect and defend your retirement dollars!
But is there a Third Option, a Place for Safe Money, and also a Market Type Return on your money? The Answer is a resounding YES! It is America’s Best Kept Investment Secret, the Secret that Billionaire Investor Warren Buffet uses on a daily basis. Now we come to the Most Important Decision Point you must make if you want to keep your money safe. Please, read the material on Bucket #3 with the greatest of care!
Allianz Life, the 14th largest money manager in the world, has just declared a 19.03% first year rate on their newest retirement income annuity, giving you an ironclad, written guarantee that your money will be completely safe from stock market risk. Take a look at just some of the benefits of owning an Allianz Retirement Income Annuity TODAY!
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You get 19.03% on your money year one, with no risk to principal. Heads (the market is up) you win, Tails, (the market is down) you break-even! Your money is never exposed directly to the market, but your money can be indexed to some of the largest market measures on the planet, the S&P 500, NASDAQ 100, etc. |
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You pay no tax on your gain while the Contract is in deferral. If you’re not taking money out of your Contract, you pay Zero Tax. Unlike a CD or a Mutual Fund, where you pay taxes on money you’re not using, the tax money you would use to pay the IRS continues to remain in your account, earning interest. |
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You earn interest on Interest, interest on principal, and interest on income you would have otherwise paid to the IRS. |
The most important function, however, of a retirement income annuity is the fact that men and women in the United States are living longer. This is due to a variety of factors, improvement in medical technology, a keener awareness of the importance of exercise, diet, and a healthier lifestyle, etc. But, there are really two sides to this coin of increased longevity. While it is true that all of us hope to live long, healthy, prosperous lives during our retirement, it is absolutely necessary to plan for that to happen.
With the aging of the United States population, the risk is no longer dying too soon, but living too long! See the attachment Importance of Planning for Retirement. Retirement Income Annuities are a recent invention, but they allow you to elect a lifetime income, not subject to market risk, as well as historical growth rates of 7-9% a year on a tax deferred basis. Contact me for the latest details about the oldest, largest, and strongest providers of these innovative products. To use our FREE Retirement Calculator that will tell you exactly when you will run out of money, Contact Me right away. More than likely, based on industry averages, you might find you’re out of money in less than 12 years! The good news is that I can place you in a lifetime annual income in the 6%-8% and you won’t ever run out, GUARANTEED!
Are you are looking for an immediate lifetime income, or is your primary concern leaving your money to children and grandchildren at the highest possible safe return, while at the same time minimizing the effect of income taxes. If you are in a position where you don’t need to touch your retirement, but want to leave a tax deferred legacy to your children and grandchildren, Contact me now to learn more about the new STRETCH IRA 401K options recently approved by the IRS, and see how you can pass your wealth to your children, and grand-children on a tax deferred basis. Imagine the wealth possible by investing your money that would ordinarily go to the IRS, and now passes to your family! Please read the IRA Wealth Management Guide for more complete information.
Click this link for a wealth of other information on how to retire safely, securely, and with peace of mind.
What are the specific deadlines required by the IRS to remove a certain amount of money from my IRA each year?
If you are at or near the age of 70 ½ you are required to remove a certain amount of money from your IRA each year. It is called a Required Minimum Distribution, or RMD. If you do not withdraw the proper amount by the specified deadline, you could face a 50% penalty from the IRA, plus taxation of 10%-35% (depending upon your tax bracket.) This means that your IRA distribution monies could be reduced up to 60%-85%. There are specific deadlines you must meet. Contact me for the latest IRA guideline amounts.
Do you know how negative returns affect your portfolio?
You would have to agree that the market looks like a roller coaster, wouldn’t you? Let us assume that you are no longer working now, and we start off with $100,000 and we lose 30% when the market goes down. Our principal value is now $70,000. Does it take more than 30% to get back to our original amount? Sure it does, because when we lose 30% and have $70,000, the gain is based on the new dollar amount. Thirty Percent (30%) of $70,000 is only $21,000. So you only get back to $91,000. In order to get back to your original $100,000, it actually takes a 43% market gain in the very next year. So, when you are no longer contributing to your investments, you are like a ship travelling without a rudder, depending upon the movement of the waves in the stock market! Not a very safe place to travel nowadays.
Why shouldn’t I just pay the taxes now? I’m going to have to sometime.
That’s a great question. You’re right! You are going to have to pay the taxes at some time. The question I have for you is this. Once you pay those taxes to the government, do you ever get the money back? No, you don’t! The government uses it on whatever they see fit. What would you do, though, if the government said they were going to give you some money to use for a while? Let’s say the government is going to give you $200,000 to have with no strings attached. The only thing you have to do is give the same amount back to them in five years time. You can do whatever you want with the money, as long as you give it back after the time has ended. Would you take it? Of course you would, and you’d probably invest it somewhere to make a return on the money. Then, when the time is up, you’d have earned some money for yourself, over and above what you would have had if you didn’t take the money. That’s the same idea as tax deferral. You are taking money that will have to go the government in the future, but you are earning interest on that money prior to giving it back to the government. With the new Stretch 401K and IRA options recently approved by the IRS, you can postpone the payment of those taxes all the way to the third generation(your great grand children) making them in most cases multi millionaires on as little as a $300,000 rollover exercising the new stretch options Makes a lot of sense, doesn’t it? Contact me for how to set program of wealth preservation to work for your family today!
I like being in the Bank, because it’s safe. Why should I look at anything else?
That’s a great question. Let me ask you, how is your money protected at the ban? It’s usually the FDIC. Let’s take a look at how that guarantee actually works. When a bank holds your money, they loan it out to other people to make a return for themselves. For example, the bank will usually take about 80-85 cents of every dollar you invest, and loan it out to make their money. They are allowed to loan for risky mortgages (are you watching TV news lately?) and unsecured venue such as credit cards. Which one pays the bank better? Credit cards do. And when times get tough, which do you think people default on first, a credit card, or their house? The credits cards are defaulted first, of course! Banks understand this, which is why they usually keep a few cents of every dollar in their own reserves, and then give a few cents of every dollar to the FDIC. The FDIC, however, only guarantees up to $100,000 per person, and they may take quite a few years to repay you the full amount. Also, what does FDIC stand for? It stands for the Federal Deposit Insurance Corporation, the key word being insurance.
Now, let’s look at the insurance companies. How is your money protected at an insurance company? When they hold the money, they are highly regulated in where that money can go. The important thing to remember is that banks can loan to risky mortgages, unsecured debt, and credit cards, where an insurance company is required by State and Federal law to loan most of their money to strong secured situations(Treasury Bills, CD’s, etc.) Then, they only take a few cents on every dollar as profit, and re-insure with other insurance companies to protect your money. And then finally they take a few cents of every dollar and give it to the State Guarantee Association which functions like the FDIC, guaranteeing up to $100,000 per person.
When you think about it, it looks like insurance companies are more highly regulated than banks, doesn’t it? This is pretty evident because you almost never hear of an insurance company going out of business, but you have recently heard of a few banks and investment firms haven’t you? (WAMU, Lehman Brothers, etc.)
Let me ask you, where is your money safest? And you do want your money to be safe and secure, don’t you?
Why should I make a change? I don’t like making changes.
That’s a great question. I don’t like change much either. There is no reason to make a change if we aren’t improving our situation. But sometimes change, even when we don’t think so, can be a good thing.
Let me tell you a quick story about my household. I like to keep things organized, and in their proper place. I like to know where things are in my house at all times. One day I came home from work. I was trying to get dinner ready for my family, and couldn’t find my silverware. For whatever reason, my wife had moved all the contents of the drawers in my kitchen. I couldn’t find anything I needed. As you can imagine, I was a little upset with her. When she got home, I begged her for a reason as to why she upset my organization. I couldn’t fathom why she moved everything. She simply replied that everything was organized and more accessible. She moved the cooking utensils by the stove, and the eating utensils by the dishwasher where they were easier to put away. I looked at what she had done, and after much apprehension, I had to admit she was right. It made more sense and was easier to use. I really liked the change, and couldn’t understand why we hadn’t done it sooner. I find the same thing happens when people make changes to their retirement savings, once they realize that the changes make things better. The only complaint is that they wish they would have done it sooner.
Why is this so good?
That’s a great question. Let me give you an example. Let’s use the game of blackjack. You know how the game works, don’t you? Imagine you had two tables that can you can choose to play at. The first table is traditional blackjack, you pay $100 and you can win $100. With that table, though, you also know that when you bet $100, you can also lose all that money. The second table, though, plays a bit differently. At this table, you pay $100, and no matter what, you cannot lose anything. The only drawback is that when you win, you only make $80.00 Look at both tables, and tell me which table you would choose to play at. Most retirees, if given the choice, would choose the table where they can’t lose anything, knowing that they will come out better in the long run by not suffering any loss. That’s how a Certificate of Annuity works, with gains indexed to the markets. It gives you the opportunity to protect yourself against losing any money, yet still gives you the chance to make a quality return. Heads you win, tails you break even! Give me those odds every day, and I’ll be a winner all the time. So can you!
I already have a broker, why do I need you?
That’s a great question. You know who Lee Iacocca is, don’t you? Well someone asked a similar question of Lee once. They said, “Lee, you have plenty of money, why do you need four financial advisors?” He responded immediately. He told the questioner that he needed four financial people, and he explained the reasoning. He stated that what one guy may know, and be an expert at, the other three may not know, and, conversely, what each one know, the other’s may not. The idea was to have a specialist in every area of investing and savings. At Safe Money Island.com, we work primarily with retirees who need safety and security. We do not try to specialize in dealing with high levels of risk, nor are we concerned about accumulating money for our clients. Our goal is to insure the safety and security of what you have already saved, and provide our clients a written guarantee that they will never lose one penny of their original deposit.
Why do I need to worry about any of this stuff right now?
Watch the evening news, and you will know why. Seriously, though, have you ever seen the movie Armageddon? It is a movie that is reflective of this same ‘wait until it is a problem’ mentality. This big rock is heading toward the earth, and will kill everyone unless the rock is forced to change course. Life on earth just went on like nothing was happening (sort of like how we do certain things for long periods of time not realizing our eminent financial danger) until it was too late for a small effort to change the rock’s course, and now it will take a huge effort. The effort was where two crews had to land on the rock, drill down into the centre, drop nuclear bombs into the core, and get off the rock before it blew. It worked, however, but people still died. If only action would have taken place sooner, something as easy as a rocket probably could have been launched into the rock while it was out farther away in the solar system, and knocked the rock off course form hitting the earth.
The same concept applies when we look at your estate. There may not be a problem that needs attention now but down the road it will. If we can change a little, put forth a small amount of effort now, then it will be easier to deal with things down the road that would otherwise cause drastic measures to have to take place. You want to take the action that is the least effort, but offers the greatest result, don’t you?
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