FAQ – Retirement Income
Frequently Asked Questions about Retirement Income
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What is the difference between Retirement Planning and Investment Planning? Is there a charge for the initial or future consultations? Is there any obligation?
Investment planning mainly focuses on “investments,” and how to grow your wealth. Retirement planning’s strategy is how to protect your wealth. This typically involves having a strategy using pension planning (guaranteed life-time income) along with health care coverage.
Are you a financial advisor?
No, and our goal is not to replace your current advisor. Like a teacher’s pension or your social security, creating a pension or lifetime income strategy is to simply supplement your investment strategy. Think of it this way: Investment planning a “hope” to be wealthy.
Guaranteed Income planning is a “promise” never to be poor. All pensions and even your social security is an “insurance” policy. Think of F.I.C.A. taxes. What does the “I” stand for? Yes, insurance! Insurance means a promise. Only an Insurance company can provide a guaranteed lifetime income. Having both in your portfolio will balance out living too long, incurring long-term care expenses, or getting hit by a recession.
What’s the difference between a pension and a 401(k)/IRA?
A 401(k)/IRA is simply an asset that you manage or have someone manage for you. Usually this involves investing in stocks or mutual funds.
A pension is a guarantee that gives you income for life. A teacher would most likely never give up their guaranteed income!
I don’t work for a company that provides a pension. Can I still create my own?
Yes, a pension is an insurance policy that guarantees you income for life. We specialize in showing how you can use your own assets to do this. All while maintaining control of your assets.
Can I use my 401(k), IRA, or savings account to create a lifetime income strategy? Will I be taxed?
Yes, you can use any monies to create a pension. If you rollover/transfer a 401(k)/IRA, then you will not be taxed. You only are taxed on the amount you withdraw in the future.
Are you referring to an annuity?
Yes. However, please beware that not all annuities are good for you or give you liquidity. Like a car, not all manufacturers are created equal. Even a good manufacturer might have a bad model. There are five major types of annuities we will teach you:
- Immediate Annuity
- Pension: Lifetime Income, but there’s no cash value
- No fees
- Cannot make into a Pension Hybrid
- Fixed Annuity
- Insurance Companies Version of a Bank’s CD: Fixed Rate
- No fees
- Cannot make into a Pension Hybrid
- Fixed Indexed Annuity
- Fixed Rate, Guaranteed Principal, Market Potential
- Typically around 0% to 1% fees
- Pension Hybrid Optional
- Variable Annuity
- In the Market, Buy & Sell Shares, Could Gain or Lose Value
- Typically around 3%-5% fees
- Pension Hybrid Optional
- Lifetime Guaranteed Income Rider
- The concept of an Immediate Annuity as a “rider.”
- This rider only can be purchased with a Fixed Indexed or Variable Annuity
- This makes what we call a “Pension Hybrid.”
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By providing your name and contact information, you consent to receive calls, text messages, and/or emails from a licensed insurance agent about Medicare Plans at the number provided, even if you are on a government do-not-call registry. This agreement is not a condition of enrollment.
Not connected with or endorsed by the United States government or the federal Medicare program. This is a solicitation of insurance, and your response may generate communication from a licensed producer/agent.