Are you set for Retirement ?
GET A GOOD JOB MEANT PENSION
Pension plans of yesterday year that your grandparents used to talk about, were terminated by greedy CEOs, forced by the board mandating them to be more cost-efficient. That’s how your pension disappeared forever. The CEO wanted to dollar cost average anything away that they could cut including your successful retirement. The defined contribution 401(k) was then born.
ANY PENSIONS LEFT?
Only working for the US government allows a few people to have old-fashioned pensions, which are considered “defined benefit” plans, where years of work will entitle you to the promise of a monthly post career retirement, check, paid for by the benevolence of the company still offering a pension, if there are any, or for employees of US government. Now, if you trust government employees that you experience at the BMV to handle your retirement, you’re a brave soul. They’ll keep managing the money, and you might even have retirement checks, as long as they don’t screw up like the city of Detroit and lose all the money. Teachers, city, employees, firefighters, policemen of Detroit, all got a letter that said,
“Sorry we’ve lost all the money”. You have no pension. Some of them work at Walmart now.
MISPLACED TRUST
Putting your trust in someone else and signing the papers when you leave at, “separation of service”, creates a one time decision, which walls you off from EVER going after that lump sum ever again.
I’ll say it 1 million times:
“NEVER sign off on anything about your retirement at work, until you’ve talked to us BEFOREHAND.”
Please tell everybody.
Please share this article with everyone at work.
THE NIGHTMAREI can’t tell you how many people had no idea that when they signed off on their retirement payout decision at work, choosing, “payout for my life or payout for life and spouse” that they would never be able to go backwards and change that decision, or more importantly, go after that lump sum of all future payments, and roll it out into their own control and into an IRA. They signed away their rights for all time, and they can never again in their life, change that decision.
“ I didn’t understand!”
(If I had a dollar for every time, I’ve heard this; and I’m so sorry if this is you or your spouse right now.)
SEPARATION OF SERVICE
When you leave a job, it’s called separation of service.
You can get fired. You can retire.
Or you can quit of your own volition.
That’s called, “separation of service“.
When you eventually leave, they make you sign papers, which I refer to as, “The one and done.“ When you have signed those papers, you can never go back and get that lump sum out through a rollover set of paperwork, that I would typically help you with, and transfer the total sum into an account with only your Social Security number on it with no one else making your decisions but you.
Typically, the promise from the company with the pension or the office of the government is for a promise of large monthly check that they hope they’ll be able to pay, but there’s no guarantees.
It’s often wisdom to roll the money into a self-directed IRA, which you can then direct your individual retirement account money towards unique and different investments, the government is not going to allow you to access. You will just get a check and have no say on what kind of investments the monies go into. This idea from yesterday year that there were good people managing giant portfolios that would do the right thing has gone the way of the dinosaur.
For anyone leaving their job, the average time at a job is typically five years nowadays. So manypeople have pretax money pockets rotting at many old jobs, just sitting there, not being managed, that need to be combined and rolled together into an IRA, individual retirement account, or a self-directed IRA, outside of those old jobs you worked at.
These actions then allow you to be a little more savvy and even buy cash flowing properties inside of a tax deferred compounding self-directed IRA. Or, hedge against trillions being printed at the federal reserve with the only real money that exist, in the form of silver or gold bouillon, which never loses its buying power unlike the federal reserve printed dollar, being printed into oblivion like the story of Zimbabwe that you need to go study and how their money was over printed until a $1 billion bill would barely get you a loaf of bread.
Typically, the government uses AIG for their pensions from the rumors that I’ve heard, so AIG is, “too big to fail” and will likely never ever go down if they can control it. We pride ourselves and finding you A+ rated top companies that are probably better than AIG but they might be one of the choices. We just need to get together and work on your situation immediately.
Of course, since most insurance companies reinsure each other, inside the family of trust, it’s unlikely that insurance companies would ever fail, but the ones that have gone to default, have been immediately bought up by other insurance companies to protect the industry in almost every instance.
DO YOU KNOW YOUR NUMBER?
If you don’t know what you’re “number needed to retire“ is, then you are someone who doesn’t “know their number“. We want to find out what that number is for you based on your household, income, your time horizon, your risk tolerance, and make a plan for you and your spouse or life partner to hit the annual goals that will be our best effort to track for a successful retirement.
WHEN SHOULD I RETIRE
The original politicians who were of differing ages or the source of the common “retire at age 65” debacle. Did you ever wonder why everyone talks about retire at age 65? One politician was under 65 and the other one was over 65. The young one attacked the old one with his age and said he was too old to be in office and he should retire at 65 like they do over in London. That’s where the idea came from.
No longer is it 65 for most of us unless you’re in your 60s right now, to be able to retire at age 65 or 67 for Gen Xers, is simply the age when you can apply for your Social Security check or wait a couple extra years for it to become bigger hoping that you’ll live a long time with a larger check because you waited.
Of course, some people tell me, “I’m never gonna retire”. Well then you’re just gonna move into Legacy work and find your purpose and destiny and start to do that correct?
Exactly.
YOUR APPLE ORCHARD OF DIVIDENDS
You don’t cut down an apple orchard. You take off the apples every year when they’re ripe and that’s what you live on. Retirement is just the same. We’re growing an apple orchard worth of dollar trees that are going to bear interest, or apples, that you can harvest, to live off every year going forward. You are never gonna chop down all the trees and spend all the money. Unfortunately, I see this too much.
People get closer to retirement, and one spouse dies, and their left with a chunk of money, and after a lifetime where the other spouse handled all the money, they don’t have the confidence and wherewithal to make the decision of should I stick with one percent on this $100,000 sitting in a savings account or should I go ahead and get access to better growth that is safe?
They just start spending through it. And then it’s gone. All they have is a Social Security check coming in monthly, which is only meant to be 25% of their monthly income.
You should be investing it wisely, safely, for the highest interest, at the least amount of risk, with as much guarantee wrapped around as you can possibly get, if you want peace of mind.
You will spend through all your money unless you have a plan to invest your nest egg, to then live off the dividends. What we want to do is set you up for that scenario and to get automatic monthly ACH deposits into your checking account from dividends available.
EMERGENCY FUND ABUSE
There’s always the case for having an emergency fund. Should you need a new roof or a new car or repairs to your home. That’s typically $25,000-$35,000. Some people even have $50,000 sitting they’re making zero interest. Anything above that should be invested to spend off dividends and grow your portfolio. Too many times do I see older people sitting on hundreds of thousands of dollars making lackluster performance if not zero interest in a checking account. If your mother was not allowed to handle the money and now she’s in retirement, you’re gonna need to be the financial power of attorney to help her or your father get better performance on the remaining assets they do have before the nursing home takes them all. Preplanning five years ahead of time to get the assets out of the reach of the government who will come after them is something we can also help you with.
LET US HELP YOU PLAN
I’ve done this for decades for seniors 75 to 85 but I realized I need to help a lot of younger people who are not maxing out their 401(k) and IRA accounts as well as stuffing as many pretax dollars into an HSA health savings account as possible to then be later rolled into the IRA if not use for health Expenses.
Let us help you.
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