Robert Olivan's Wake Up Call - The Three Phases of Life - Part 2 Distribution

8/3/2019 Robert Olivan's Wake Up Call - The Three Phases of Life - Part 2 Distribution

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THE THREE PHASES OF YOUR FINANCIAL LIFET H ING S A B OUT MONE Y Y OU MU ST KNOW T O A VOID F A IL UR E – P A R T 2 D IST R IB U TION

Pedro M. Adao, Financial Counselor



P H A

S E 2

-D I S T R I B U T I O N

•

Overwhelming response yesterday – over 100 people requested to be part of a group of 25 – very moved by the response andmany of the passionate why’s that some of you shared both via text and phone. I have been moved to get involved with your

why in a deeper way. See this stuff works☺ People will allow themselves to be inconvenienced when they get involved with

your why.

• Evidence of this is me texting people at 11 PM last night, 100+ one on one meetings, talked to Ralph Rechnitz

yesterday, he was in San Jose about to go into a meeting at 7:30 he lives in Discovery Bay, I believe Jennifer Dowd

spoke at that meeting she lives in Modesto, What’s the point. People that have the ability to radically bless your

life will allow themselves to be inconvenienced when you give them a compelling reason to. Communicate with

your family. Spouse and kids needs to be on your team and understand why you are out of the house some

evenings. Make up for it every opportunity you can. No pain no gain, I get it but All pain and no gain is a losing

proposition for everyone.

• Will honor all the requests and will have information out to everyone in the next few days about the program and what to do

to get started

Quick Recap

• For those that may be just joining us today – shame on you – Just kidding we are in part 2 of a 3 part series called the Three

phases of financial life.

• The three phases are accumulation, distribution, and lastly legacy

• Describe each of the three phases

• Yesterday we covered accumulation and some of the main points we discussed were:

• 95% of Americans have either failed or certain to fail in not having enough money saved for their retirement.

• They are not just coming up short they are coming up massively short having retirement underfunded by 80 –

95% with average retiree having only 50,000 saved.• We learned the 4% rule which says that’s how much can be safely withdrawn from an account without the risk of

the account going to zero during retirement

• So for every $40,000 of gross income think of needing $1,000,000 in a diversified portfolio of stock, mutual

funds, and bonds.

• Why so many are failing, insincere, self-serving advice from financial industry – compounding money makes the

institutions a lot more money than you can ever make, lack of discipline on our part mainly because we are not

connected to our PURPOSE AND ASSIGNMENT NOT CLEAR ABOUT OUR WHY, so we get sucked why that is beingmarketed to us, debt, income/ earning gap, life events.

Intro to Distribution



P H A

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-D I S T R I

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Distribution: That phase of life where you are turning to your investments to provide foryour everyday expenses and material wants. Earned income from labor is now zero.

• What are the problems:

1. As we have seen statistically 95% of Americans are showing up with no

underfunding gaps of 80 – 95%. What does that mean and what does thatpractically look like.

• Lifestyle of fear and worry

• Either forced to leave what little money they have saved in the market

because they are desperate for any growth that may occur. If so that means

they are also subject to the roller coaster ride of the market especially lately.• I have included a 1 yr and 5 yr chart of the DOW. Imagine if your life

savings was in a account with that volatility.

• Or either forced to be in all cash because have no tolerance for loss but now

inflation is eroding your wealth and without any return

•

Constantly facing compromise and undesirable prioritization decisions.• Attached a sign that was posted by someone on the wearethe99percent

website that reads that reads “I am aged old and frail, I worked and paid

taxes all my adult life, now I have to chose between medicine and food, it

feels like a very slow death. I am the 99%

2. Not everyone has no money saved and yet many retirees or people near

retirement are still gripped by fear.

Distribution Phase



P H A

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-D I S T R I

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This was posted by an elderly person

on www.wearethe99percent.com.

We don’t know anything about this

person other than that they are

apparently hopeless and haveresolved to blaming the government

for not having their needs met. This

person assumed that working all

their adult life and paying taxes was

all that they needed to do to have acomfortable retirement. They were

wrong and the problem is that for

them it might now be too late to do

anything about it.

Our financial future is up to us. We

are responsible and accountable for

creating the life that we want.



P H A

S E 2

-D I S T R I

B U T I O N

• What are the problems:

2. Many individuals that have saved and planned for retirement during an

accumulation phase because they lack education and a plan for how to distribute end

up bound with the worry and fear about outliving their assets.

3. Even very wealthy high net worth people have underlying fear of loss and dyingbroke especially f they were alive and have memories of the depression or heard

horror stories from parents and grandparents, media scares the pants of people.

Common Mistakes Made in Pre-Distribution and distribution

1. Trying to live on the interest only, Following the common thinking and relegatingoneself to just the 4 percent. Must cant do it so as they see accounts shrink they

are completely bound by fear.

2. Looking at all the assets as individual buckets, lack of a integrated coordinated

distribution strategy. Success leaves clues: Peloton, or bids flying in a V

3. Time can still be on your side in retirement if you know what you are doing4. Starting to draw on funds too soon.

5. Exposing oneself to either way too much risk or being overly conservative. Two

extremes.

6. Not planning for a long term care event. This can wipe out even healthy

retirement accounts. 2010 survey of monthly cost was $3131, That isapproximately 36,000 a year. Average retiree has 50,000 saved.

Distribution Phase



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-D I S T R I

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The above chart represents a 5 yr chart of the Dow Jones industrial average and

the chart below represents the 1 yr chart. Consider being in or near retirement

with your entire nest egg of $50,000 in the market subject to these ups and

downs. Imagine the anxiety, fear, and worry produced from the uncertainty of

what was going to happen next.



P H A

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•

How much better will my life be if I have a passive income source like an ACN residualbusiness when I reach retirement age?

1. Can continue to work the business even up and through retirement. Use bonusesto create immediate cash flow while continuing to build residual. Compared toother types of work that seniors find themselves doing continuing to build yourbusiness with ACN allows you maintain integrity and self confidence.

2. Delay having to touch what you do have saved. This is so significant only a picturecan describe it well. Waiting a matter of 2 – 5 years can have a significant effect.It doesn’t just add that same time to back end it has a significant multiplicationeffect when stacked with our integrated distribution strategies.

3. The more income you need that is being covered from your ACN business duringretirement removes massive pressure from the amount of money and assets you

have accumulated in retirement accounts, real estate, or any life insurance thatmight be owned.

1. Don’t have to be forced into taking excess risk with what you have – peace of mind

2. Don’t have to feel guilty about spending all your money in retirement shouldyou need to or chose to and not leaving any inheritance to your loved ones.

You can will your ACN business.3. You have a built in inflation hedge. As inflation moves through the economy

do you think energy prices are going to up, what about cell phones and cellservice, what about all the other things you guys sell. An ACN business has abuilt in inflation hedge as prices of services go up so does your check

4. Build it anywhere. Can make Wall St money while living on Main st.

Distribution Phase



P H A

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• WHY am I covering this with you? Why has Robert brought me on this call?

• Are we tying to scare you? NO, NO, NO

• Fear is not Holy, its not righteous, it does not come from the loving God that created us. Fearis often used to manipulate and control people. Sell books, sell crappy investments like Gold,or overpriced systems for how to get rich on the internet or buying houses with no money, nocredit, no experience…

• We are not here to create fear or scare you.

• Our intention is to tell you the truth about the challenges of providing for our entirelifetime, however provide hope. If you apply the financial principles I will teach you andcontinue to build your income by leveraging the power of the ACN system by working it,you can and will succeed.

• Regardless of your age, your current financial situation. If you have breath and have theability work you are still in the game. Some of you guys have been through hell, some of you guys may think you are still here. Right now just tell yourself I’m still in the game.

• If you build your business out of fear then you will still be riddled with fear even when you

have more money then you can spend. When you are in fear your prospective customers andpartners will sense it and it will repel people. When you exude confidence and peace that youhave something that is doing something for you that nothing else you have found bothcustomers and partners will be attracted and want to be involved.

• What motivates people to make lasting change: one of two things

• Intolerable pain and/or massive vision for the future

• Your story, your why must address either or both of these issues. You must connect with the

intolerable pain of your current life and or so clearly get a picture of the vision of your futurethat it pulls you into the right thoughts, actions, and habits.

• Your first assignment for those that are going to be working with me on our is going to be toprovide some facts about yourself and current situation and your going to in writing tell meyour why. Why you must succeed in this business, tip. If your why doesn’t make you cry, yournot there yet. Keep working at it. If your why doesn’t move you it wont move me or anyoneelse.

Distribution Phase



THE THREE PHASES OF YOUR FINANCIAL LIFET H ING S A B OUT MONE Y Y OU MU ST KNOW T O A VOID F A IL UR E – P A R T 2 D IST R IB U TION

Pedro M. Adao, Financial Counselor

925-778-5626 Office

925-584-1312 Mobile

[email protected]

THIS CONCLUDES THE NOTES FOR PART 2 - DISTRIBUTION

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Robert Olivan's Wake Up Call - The Three Phases of Life - Part 2 Distribution