Money Ladder Strategies

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I mean who wouldn't want a money letter but along those lines. He knows that is not a biblical process right got certified financial planner hunch with us today, and Hans. You know the first place we find a ladder in the Bible really in Genesis trying and so everybody I think most of us have heard of Jacob's ladder, and you may recall that Jesus even made reference that ladder Nathaniel would see even greater things, the Son of Man, going up and down this letter so you know, the idea of the latter is it's a beautiful thing when you know the Hebrew behind it.

So when you look in the Hebrew alphabet. There's a letter it's the above is the is the name of that letter and that letter looks like a letter to expenses to straight line up and down and so beautifully it's illustrated for us in the hundred 19 Psalm eight verses on every letter, every Hebrew letter and so if you've ever looked at this, but if you if you like study in the Psalms. Check out the 41st through the 49th verse of the hundred 19 Psalm and they're all about this letter and you will see the idea of the vav in all these verses and the idea is to be a continuation or the word, and so every verse of that section starts out with and and continually, forever and ever and you see this thing and when you look at Jacob's life. You know he's considered to be from the Hebrew standpoint of the Jews way they teach this by their stages that he was considered the greatest of the matriarchs because his generations. You know, when you looked at Abraham. He batted 50-50 with his kids. Isaac and Ishmael right when you look at Jacob coming on Isaac. He had no Esau and Jacob began a 50-50 thing as far as the people that followed God on in the generations but when you got to Jacob. There were 12 boys and they all stayed in God even into Egypt and eventually obviously into the promised land. And so you know is we are looking at investing our money and doing money letter in which were going to get into and I'm sure that's intriguing to you. It's intriguing to me. The idea is that while a part of this strategy is for our family to continue on into God and and for the kingdom to continue to be built forever and ever is King David explains in that Psalm so Hans.

This latter just keeps on giving. And given then talking about here is ladder you I $20,000 annuity term annuity and five different ones that add up to a place to put $100,000 over five years six years seven years and longer and to earn an average rate of what I'm looking here at sheet 2.68%, which is like you be what I just know financial planning ideas when dealing with people that are turning 65. There are many people client that have 50,000 80,000 hundred and 20,000 and much more than just an interest-bearing account at the bank or at the stock brokerage inside of the IRA or 401(k) significant money just sitting at a rate like I did at the credit union and then there because rates are so low like why should I tie this money up in something I'm only going to get a little more so this is some sort of new phenomenon that were talking about. And we've been using these things are actually called my gut and my GPA, multi-year guaranteed annuity and this is about financial product that we sell them insurance. This is very much like a CD in the most popular one that we sell is by year. We saw lots of millions hundred thousand 200,000 or more and 50,000 time paying 3.15% is not much but when you compare it to the bank guarantee fees on this lot of people about even a year ago year and 1/2 ago.

At the beginning of the virus is paying 4% so down from there it just extremely lots of these product is a way for people to get more interest on money that they're not risking stock based on what happens is, crash the market again. A lot of folks took their money out of their you know investments in that within their IRA rhyme is just sitting there in cash that then some people didn't do that wrote it out and now it's written to all-time high. Note the other day a lot of people that are all in stocks that are very nervous and they want to have what they want to do, leverage their better get out of the market with some of their money. Some of Artie done it like you spoke about and they have the money sitting in cash they're getting like .1%.

We just look on your statement and just see how much the cash is earning in your 401(k) or in your IRA or your checking account like I did and that the money Artie there for IRA as well and current for this time I have for five years. If I have it sitting in the checking account. I might need it.

All financial landscape may change and I want to get back into the market or this particular thought, down in Alabama that I ran into rain Tuesday.

He's the one that I decided to make a show about the seven doing these things for years he had that was exactly hundred and $65,000 in a couple three banks and he was really that embarrassed about. I don't think he's told anybody that other than me when he said� Don't yell at me or something.

So you got money myself and I said so are you going to need that money 90s apply my you know when it goes through any surplus he wants to buy a truck he's anticipating retirement and I said okay on the truck well betrayed mother money and probably $20,000 more.

Okay so there's 20,000 by the truck.

He said I don't know I don't really need to replace the old one but I just can't do that retirement money for usually having a hard time coming up with and so that when I proposed this five-year deal at 3.15%, but all your money and hundred thousand and very silent, money, after five years. How much is your one dear. Knowing you let me do some work and get back with you. And so I worked at this thing that is on my video on YouTube that you can go look at and I'm just looking at it and so I took the hundred thousand of his 165 and broken into five parts 20,000 each and 20,000 comes due in two years to your CD.

Second wanted three years one fourth year with 25 year 16 year. So this guy is going to have CD or am I multiyear guaranteed annuity that resembles CD maturing every year starting in two years filling November 2023 and have 20 grand is available to penalty interest on tonight Please pay get the 20 grand, but you get $869 in accumulated interest in that guarantee that that 2.15%. Now, if he draws out in chapter $20,869 and go do the places where he could reinvest in the stock market like his 401(k) by truck with the sticky back in the bank .1% interest to be doing on what is probably going to do is then by five-year CD that will mature in 2023 and I will mature in 2028. My five-year mind, not a CD right about my dear Mike and he is going to that if he chooses it. It really doesn't need the money will remember or have 65,000 off to the side doing this will become a source hundred thousand. So what most people do with these letters I sent out when the two years comes around. They just roll it over, and by five-year deal which you can get a higher interest rate, and it raped me rebounded in two years. Nothing like a 4%. Look at it at the time, but the important part of this contract is November 2024, 301 come due and that can be 20,000 again +1443 that's happening every year 20 grand company do completely available and what is probably going to do is just buy another five so every year long last have this rolling thing and after a few years he can have the benefit of the higher interest is role disorder. Terms in the longer. I point breaks can see this latter thing he does on a mama mama mom. It's absolutely amazing strategy of maximizing the interest rate and still having completely quiddity and so these are questions that a lot of people are concerned about risk versus liquidity and that's all in Hans's book the complete cargo guide to planning for living in retirement, which is there available a cardinal guy.com as well as all these charts on risk and liquidity and always things that we talked about today we come back about this whole matter strategy stated Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care.

Just go to cardinal guy.com and contact Tom to schedule a live recording of finishing well your church Christian or civic contact Tom cardinal guy.com that's cardinal guide.com welcome back to finishing well, a certified financial planner Honshu Island. Today's show were talking about money latter strategies there so many ways that this idea can be applied in offering that liquidity idea like you got money available, but at same time not just sitting there not getting any interest at all in your money.

Well, yeah, we all feel this possibility be good stewards of our money and hundred 55 grand sitting there which I'm guessing it been there for years, built up a little bit of time I got is a good saver and years ago used to make a pretty decent return.

He probably had some CD with getting three or 4% but he was yet really wanted me to do something about it until I started doing something about it.

And then he started pushing me back a CD like the fact that he can drive down the bank and ask for any amount you can walk out of there with some then we talked a little while. Doesn't need hundred 65.

Just got sick so I just went with a simple figure of 65 grand right wording. Take 100 grand. Let's get something where you're going to have some liquidity, get your money are part of every year and then we can get a more reasonable so we looked at the five-year deal five-year mind multiyear guaranteed annuity product to sell the money there very much resembles CD. The difference being that it's not FDIC insured is backed up by billion-dollar insurance company or multibillion-dollar insurance company in the state guarantees writing agreement very much resembles CD and 3.15%. You leave your money here for five years the end of the five years you get 20,000 back plus the cumulative interest, no penalties, no fees, no nothing.

We don't charge these so I showed them the five-year deal he's been like tying up money then we went to this whole ladder shown this to meet all 722 year CD is paying 2.153 year span. 2.354 year 2.6 five-year 3.156 year 3.17. Like you said you want to make the simpler you can just talk about five-year deal in just 1 ounce of money this thing get a little less interest but you're going to have 20,000, do every year. You're also going to be not grant taxes on the interest lines attend an annuity and not cashed out his tax-deferred and when these things come due. You can just roll it into another five-year deal.

You can keep 20 grand, and do 20 grand of the original hundred grand in the five-part come do every year just keep rolling over and so that five or seven years now seven years have a whole series of five-year my renewing every year he will have paid any taxes on the accumulated so just a strategy, and frankly, if interest rates rebounded which almost have to do is just as low as I've ever seen. No, they do, then as you buying these things when they come due or rolling them over whatever then you get a little higher interest on originally came up with this latter strategy, which fits perfectly with the whole idea Jacob Cybex was actually helping your mom so my dad that way. In 1998 as outlined deal when he dies, I'm the one in charge of promoting and advising her so literally right after he died. I had no idea how much money left and frankly they didn't have much left up and we spent a lot of money in his 10 years of retirement in the my mom lived on a 16 years after my dad died and he had $100,000 life insurance policy when he died 71 or two, and so I don't get the claim file and we got the hundred thousand dollars and Dan looked have about 130,000 left in their savings and IRA investment account which is a lot of money for a 73-year-old widow in good health to go along with Social Security and pension so I knew I needed to make this money last and I know you invest in stocks certainly right away. And so we came out with the flattering, I just bought five CDs one year to year three, year or year and a five-year one and then paying varying interest rates with the best being the five-year in this year 20 grand come to every year.

At that time and she did have a tax on the interest that when a problem because your income will and so eventually we got that money invested to spend on things but it was just comforting knowing we have to go great CD that every year this time a year we would have the money will I came up concept and I will think we did Think of it on her own and were doing this many years later with these my multiyear guaranteed annuity is paying much more significant interest than the banks are paying on CD money or the jury bond fees and other able to do that is the insurance company has thermal expansion like the policy will write five policies for different companies so spread it around just just simply yeah from the drawer.

We got in the computer and then we manage the same 20 sided, different insurance companies just based on their different rate so it gave you both the eye and on the concept of diversification and generates all the same time right when you get an average of 2.68% 2.684%.

The average of these English total $11,941 tax-deferred accumulated interest by the very end of the six years and providing a selected and there that's significant.

Like a few hundred bucks just leave the money there. Now this is for everybody coming. Some people just sell a simplified got 100 grand sitting there that I know I won't need benefit there while I want to five-year deal with 3.15 go for some people. They have the monies in an IRA and a bunch of cash in their work.

Maybe they have stock investments that are inflated that they've done really well and they wanted make it more conservative, five-year deal, because there not be needing this money and then sometimes with people we plug in a different kind of annuity for part of their money or save money and one that would generate any income starting five for your kind of options that this is this is a way to manage large amounts of cash and get a decent return and not pay taxes on $12,000 in interest on money that was essentially just sitting in a checking account next to nothing right away, which are liquid bond fund or we put a lot of our customers are in conservative strategies are portions of conservative strategies that basically bond and we can sell bonds at any time now, and we don't have penalties on those that we do have a fee that can be down there and bond fund were in charge a fee to manage them.

But when you stack this thing up against bonds of low interest rates and the environment. This thing looks pretty good to talk guaranty if interest rates go up. You can actually lose principal, well let's just say you have a $10,000 bond that is paying 3%.� Make your body years and just collecting your 3% coupon every year.

Now that interest rates are so much lower than they were three years ago that bond is still yielding 3%, but they've adjusted the market has adjusted principle of the bond, down from 10,000 to maybe like nine so you really -3% anymore so get 3% on your original investment, but if you sold it cashed in you value this understatement is 9000 so it still says $10,000 and if you hold until maturity. You're going to get 10,000 back maturity might be 10 years. Those people are buying and selling when interest rates go up on their value down low as I can possibly be the chances of those interest rates going up and craving that situation. Obviously make is what you're saying is that's part of what makes these my guys look so attractive. What does the insurance companies take this money putting Bob by the insurance on it with her taking the risk insurance company holding the bond for a long period of time managing and offering rates to take in new money so that their problem not ours.

Yet there's a lot of people will interest rates have gone down over the last several years that it actually made money they look understatement on their bonds. When interest rates went down value of your bonds go up because the market adjusted to a higher value.

This, yielding a lower interest rate is the complete opposite of the way some unforeseen time is grab this again. You know, again, the idea is that wow when it comes to looking at these strategies what you know you want to be good stewards of your money and letting it sit there and do nothing when you're not really using it. It is kind of what the know the guy who had the mean is it put them in the ground.

It's clean. I wanted we don't want to be with the gnashing of teeth cloud and what's cooked with be thinking about that you can go to Cardinal guy.com get palms but the complete cargo guide to planning for living in retirement as well as contact him, email him with any questions or concerns. He would love to hear from you as well as don't forget that it Cardinal advisors on YouTube that there is a video that shows a strategy game. It's called cardinal advisors if you just put that in YouTube. It'll come right up and and you can see it. So again, thank you, Hans.

Great show. Thank you.

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