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  • 1. CPA Services Attorneys/VA Benefits STRATEGIC ESTATE PLANNING SERVICES provides specific resources when you need it Death Settlement/Income Stream Creation Mortgage Specialist Movers/Estate Sales Estate Planning Investment Services Assisted Living, Nursing/In Home Care Solutions Medicare Adv. and Supp.Plans Annuities, Life & Long Term Care Insurance SEPS Knowledge Service
  • 2. Butcher vs Dietitian
  • 3. 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
  • 4. Stock Market’s History, Reality and it’s Future Warren Buffet – meeting to shareholders “An era of lowered expectations.” 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 the money? Source: Forbes.com, The Croesus Chronicles, Buffet New Advice From On High
  • 5. 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 risk. • 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
  • 6. 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
  • 7. 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 retirement. “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.
  • 8. What do you think most people would prefer? 7% with a little bit of risk or 2.15% fixed interest with no risk?
  • 9. Don’t go backwards! Example: $100,000 • 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% _____________________ $113,370 • 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% ______________________ $113,613
  • 10. 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 make. Men! The ladies want Security!
  • 11. mondRetirement years must have: Security Consistency A specific plan Proper resources A Dietitian vs a Butcher It will impact your family.
  • 12. 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.