Ok, now that we have the “Housekeeping” out of way, let’s get back to today’s subject… everyone wanted to know, “Where else can you save Retirement money and grow your account balance at a rate that beats inflation without taking risks?” As I stated in my previous post, I know of only two (Let the quarreling begin), and these are my Retirement secrets #2 and #3.
Retirement Annuities (FIA)
The first is a Fixed Indexed Annuity (FIA). These are the best for rollovers of an existing 401k or IRA Retirement account that is still exposed to market risks. But don’t expect your broker or banker to speak kindly of them. Retirement FIA’s are an Insurance vehicle and they would lose their fees and commissions on YOU’RE Retirement account if you move your money into one. An FIA uses one or more stock market indexes to pace the amount of interest that your account earns. FIA’s typically have a “floor” of 0% interest, meaning that if the stock market totally crashed, you lose nothing… your Retirement principal is protected. But they also come with a “Ceiling” or “Cap” which means you can only participate in a portion of the market “up swings”. Fixed Indexed Annuities also provide periodic “reset points”. This means that every year (or number of years), all interest credited to your account is “locked in” and becomes protected principal. Thus, you participate in market gains but never the losses. Beware though, there are now over 1000 different variations of FIAs, so make sure you get with a trusted advisor and get educated before you choose the one that’s right for you. But, if you are 45 or older and you still expose your savings to market risks, then definitely choose one ASAP because all of the above benefits are given to you in trade for time. This means you are expected to leave the money in the account for 5-15 years or until you are 59 ½ … sounds familiar doesn’t it?
Tax FREE Retirement Accounts:
The second is a “dividend paying, overfunded, investment grade, cash value life insurance policy”. And yes, all those adjectives are mandatory or you are being misled. Again, don’t expect your broker or banker to speak kindly of them. These types of policies are an Insurance vehicle and they would lose their fees and commissions if you move your money into one. These policies have historically only been offered to banks (Called “Bank Owned life Insurance (BOLI)) and corporations (Called “Corporate Owned life Insurance (COLI)). But these types of policies are now being offered to “Boomers” who take the time to get educated, and most of all, those who qualify. These policies typically grow at 3-4% guaranteed and annual dividends can increase that net growth to 6-8% annually. The basic premise behind these plans is that by systematic overfunding and allowing about 3000 days for the cash values to grow within the account, your insurance costs become self funding and you now have a pool of money that is liquid and growing. It is also excellent for “legacy planning” because these special policies have an increasing death benefit that
Once again, nothing I am saying here is an actual Retirement “Secret”. Everything I reveal here is conventional and traditional for the ultra rich in America. What is unique is that I am sharing this Retirement knowledge with the same public who has been led like “cows to slaughter” by Wall Street Retirement marketing and propaganda machines. So once again, it’s your choice, “Are you a Retirement cow or a Retirement stallion”? One gets slaughtered; the other runs free…your choice. Contact us today if your tired of loosing your hard earned Retirement Dollars.