STRATEGIC ESTATE PLANNING SERVICES
provides specific resources when you need it
Annuities, Life & Long
Term Care Insurance
Imagine a PERFECT RETIREMENT
Where would you be?
Who would you be with?
What are you doing?
These are the words that are most often
voiced when approaching or in retirement
Secure Comfortable Worry-Free
Self-Sufficient Stress Free
Stock Market’s History, Reality and it’s Future
Warren Buffet – meeting to shareholders “An era of
Dow Level 1900 - 66 grew to 11,497 on the
eve of 2000. 100 YEARS returned a
compound rate of 5.3% annualized before
inflation! 1961-2010 = 5.6% return.
The question is: What is the market doing
during your retirement years, when you need
Source: Forbes.com, The Croesus Chronicles, Buffet New Advice From On High
Jim Cramer host of “Mad Money”
• 40’s: I would put more than half of your
retirement money in fixed income.
• 50’s: Shift toward more fixed income.
• 60’s: Fixed income should dominate. Your
opportunities to grow your money are
now limited and the reward isn't worth the
• As you get closer to needing the money your
caution should take hold, so that you don't
let a lifetime's worth of savings be wiped
out by a swift downturn in the market
right before you need the money.
Jim Cramer, “Real Money – Sane Investing in an Insane World”, pg 67
Wharton School of Finance
University of Pennsylvania
Identifies Top Asset for Retirement Planning
• What is the most cost effective and least risky
asset to generate guaranteed retirement income
for ones entire lifetime for 25-40% less money
than through traditional means?
• Research shows that this type of income cannot
be duplicated by mutual funds, CD’s, or any
other home grown solution.
• What is it? Lifetime Income Annuities
• Copy of Professor Babbel and Professor Merrill’s academic study, “Rational Decumulation,” can
be downloaded from http://fic.wharton.upenn.edu/fic/papers/06/p0614.htm
Who uses income annuity concepts?
Teachers Unions, Government workers, Police/Fire Dept.
and The Lottery!
WHY? It cost them less money to provide for your
“Annuities are the only financial instruments available
today, other than social security and pensions, that
can guarantee a lifetime stream of income during
retirement.” 2011 Insured Retirement Institute Fact Book, p.27.
What do you think most people would
7% with a little bit of risk or 2.15%
fixed interest with no risk?
Don’t go backwards!
• Year 1: Return of +7%
• Year 2: Return of +7%
• Year 3: Return of -7%
• Year 4: Return of +7%
• Year 5: Return of +7%
• Year 6: Return of -7%
• Year 1: Return of +2.15%
• Year 2: Return of +2.15%
• Year 3: Return of +2.15%
• Year 4: Return of +2.15%
• Year 5: Return of +2.15%
• Year 6: Return of +2.15%
Protect what you have to live on for LIFE and
play with what you can afford to lose.
Most people do not consider the RISK when
they are thinking about the gain they can
Men! The ladies want Security!
mondRetirement years must have:
A specific plan
A Dietitian vs a Butcher
It will impact your family.
George Mallory 1924 - Sir Edmond Hillary 1953
One was smart enough to have a Sherpa
The other tried to do it on his own
because he thought he could.
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