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Understanding Five Retirement Planning ConceptsDale Johnsen 818-620-8171 CA 0H46467
.org
1. Retirement Income Planning
Paradigm shift from accumulation to distribution
Goal: limit financial risk through asset allocation and sustainable withdrawal rates (efficient frontier stress test)
Optimum strategy for sequencing liquidation of funds
Need: confidence you will never run out of money despite new risks (market/inflation + long-term illness/death)
Paradigm Shift
?
Power of Indexing with No Losses
Green Money vs. Red Money
Three Colors of Money
_____% _____% _____%
Examples of Green Payments
Social Security
Company Pensions
Structured Settlements
Lottery Payouts
Fixed Index Annuity
Structured Cash Flow (5-10 years only)
Afixedsumofmoneypaidtosomeoneregularlyfortherestoftheirlife
3. Social Security Timing
Earliest: age 62 (75%) 40% choose this
“Full” age 66-67 (100%)
Latest: age 70 (132%) 5% choose this
For each year of delay, you gain 8% + inflation for life
Keys: Longevity + Alternate income for ages 62-70
When to Start Payments?
When to Start Payments?
4. Long Term Care Funding
70% will need LTC assistance eventually
Only 10% have any kind of LTC insurance
Average cost is $94K/year ($50K if at home) doubles by 2035
68% worry about how they’ll pay for it
Medicare will only cover 100 days (in facility only)
4. Long Term Care Funding
4. Long Term Care Funding
After age 60, premiums get more expensive
It’s now more difficult to qualify for LTC insurance
Alternate solutions for “anti-nursing home” insurance:
1. Life insurance + LTC hybrid (6X)
2. Annuity + LTC hybrid (3X)
If you assign NO dollars to LTC costs, you’ve potentially assigned ALL your dollars to LTC costs
5. Moderate growth- minuscule risk
Stock Market = high risk for potential high growth (RED)
CDs = no risk and almost no growth (YELLOW)
*Alternatives = moderate growth with minuscule risk (GREEN)
GREEN safe alternatives >> Bonds or Real Estate
5. Moderate growth- minuscule risk
5. Moderate growth-minuscule risk
Option 1: 6-7 years with 10% simple gain (65% total)
Option 2: 5-10 years with 7-8% gain (paid out monthly)
Option 3: 10-14 years, 5-7% annualized, with guarantees
Option 4: Triple value of assets for Long Term Care
Option 5: 5 years with 3.15% guaranteed (MYGA)
Option 6: 5-7 years with up to 6.5% in CD (0.15% min)
Reviewing the Paradigm Shift
Cash
Home Equity
Stock Market(IRA, 401k, 403b, SEP, Mutual Funds, Bonds)
Cash
Stock Market
Home Equity+ 7% Gains Without Risk+ Triple Value for LTC
+ Lifetime Income Guaranteed
Which of these five concepts are most important to You?
1. Retirement Income Planning
2.Three Colors of Money
3.Social Security Timing
4.Long Term Care Funding
5.Moderate Growth with Mini Risk
(alternatives paths to achieve 6-10% growth)
Name: _________________________________________
Cell: _______________ Email:_____________________Best day/time/place to meet: _______________________
_______________________________________________Which of the six options interest you the most? ____ ____
Comments: _____________________________________
Want to Learn MORE?