Revisiting MYGAS

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This is Chris Hughes with the Christian perspective podcast with Chris Hughes. We encourage our listeners to engage the culture with Jesus Christ your chosen Truth Network podcast is starting a just a few seconds. So enjoy it share but most of all, thank you for listening to The Truth Podcast Network. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner belonged child, best-selling author and financial planner helping families finish well for over 40 years on finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.

Now let's get started. Finishing well, finishing well is a general discussion and education issues facing retirees.com Cardinal advisors on trial CFP some insurance this show does not offer investment products or investment advice welcome to finishing well, a certified financial planner Honda Shiloh and today were going to work on the subject. We've talked about before, and hopefully make it even more easy to understand. And that's the idea of my guys multiyear guaranteed annuities.

I now understand what that is it anyway on this subject, you can't help but think of this idea of the parable of the talents one more time about God. In this story is talking about somebody's stewardship. You know that that we are given things and then what are we going to do to get a return on what God's given us and the idea is God really really trust us and that he's given us free will, and so he loves somebody that will go out on a limb for him. Somebody that truly has faith that believes this is the most sound investment of all time is time spent in his word. Time spent in his light because there you go.

Now it's going to give you something is a return on that that you need to invest for him. And so, but all along these lines of the steward who trusts in the master's hand.

Hans you view experiences every day people coming into me and they have large money checking account or a money market account and last time I checked on my cash that I have sitting in there.

I think I'm getting .1 of interest, which is 10% annually on my checking account and I think that my money market account is like 2/10 of a percent and that the bank with the high great for the best rates: which is so close to nothing is really like nothing isolation come in and they do financial planning and they want me to look through. I need to look through all the sinner get it out and I have a feeling that these people haven't talked to anybody else about how much cash they have laying around and the balances that people have for them are large. It's just amazing how much some of these people have and then even within their IRA accounts is people have their other 401(k) or they have the balance were they got scared of the market and they they have a bunch of just sitting in the stable value fund where they they moved it out of the market, but they still kept it inside of the 401(k) and they're getting in a significantly less than 1% interest so talk about today is a way to get some more interesting still give him some liquidity under my Safeway that the principal right so what were talking about is the actual name and we talked about this before the show.

Try to simplify a little bit. The actual name of these things is a multiyear guaranteed annuity. That's what people like me in the industry, call Lisa. As soon as you have for words to name something and then there multiyear guaranteed annuity that in and of itself makes us think confusing and then you throw in an acronym and you caught my that makes it more confusing, so let's try to simplify this but were talking about is in agreement with insurance Where you take a fixed amount of money it have a minimum of 10,000 or 20,000, with most of these companies so you can have that much money to get one of these micas or contract with an insurance company and you can put as much as $1 million in any one of these without even calling the company's wide-ranging amount put in their hand. Simply stated, has a stated rate of interest so like the two-year plan that I showed in my videos.

2.5% three year contract is 3.5% for years 3.7% five years 3.85% in the six year is 4.3%. So can run talking about years is a stated term dislike a CDS at the bank. The only one Tiger money up for two years. -25%, which by the way that lot better than .1.

It's like 28 times as much, if you're willing to tie up your money for three years. 3.5% interest years could be 3.7% interest five years 3.85% interest in six years 4.3% interest. So the longer you're willing to tie your money up the greater the interest rate that they're paying on us simple and you know 4% interest is seen somewhere that is been a long time seasonably talked about that.

Yeah, that one particular company that out there and the expiration date to take advantage of it is June 6 now and I just got there their new rate on the six year starting in June will start after June 6 is to be 3.85 so that was clearly a special on the security but I wouldn't worry too much about that with what the Federal Reserve can be doing June and July. I think witnessing a lot of these things around 4%, and a little about 4% but that particular one. We have to have an application signed by June 6. And then we got about a week to get into the company and another 30 days to fund so if anybody wants to take advantage of that. You need to get in touch with me pretty quick. But like I said I am a little Christmas specials anyhow because put an end date to try to get people to pour their money to the point being is you can earn substantially more interest on a very safe vehicle which is this multiyear guaranteed annuity and what we have a lot of people doing is doing one of these annuity ladders are micro ladders where there buying a certain amount of money like in the example that I showed in the video the sky have $500,000 cash that he was doing basically nothing on and nor did he want to invest in stocks and noted he wants hi all, for a number of years that we just we put $100,000 in five different annuities and we bought a two year three year four year five year and six and all at once and then you know he gets more interest on the six year than he does on the two-year but starting in two years. So we go ahead until May 2024. He can have $100,000 plus interest coming due. He can either reinvest or in another one of these things or you can take it do something else and then every year the same thing were these things will come doing what a lot of people there is a just keep rolling them forward and you can get a lot more interest on your money doing that then the artist let us in the checking account for savings account or a stable value fund inside of the 401(k) or IRA really you would mention some in the video, which by the way is a Cardinal advisors on YouTube that I thought was awesome was that what he was doing was creating the interested as income every month because it there was a way he could just take his interest on all those and have it sent directly to him monthly correct and that plan is. And if you average all the 3.64% and he's just getting a check. I think the number is about 1500 bucks a month and that the interest in this don't do that on these annuities were they'll send you a check for the interest every month and you know so the end of each term Holly and I have left in the annuity is the original hundred thousand that he put in their creating an income five people you seduce the CDs but CDs against the loan interest rate people at bottom of years, but it's coming back in fashion with this. And then there's all sorts of liquidity issues that really they have solutions for those two. They do and I think when we get on the backside of the show to talk about with most of these you can take out 10% of the value principal and interest each year without penalty. You know you started that out. You really don't have to do an annuity ladders if you just wanted some liquidity emigrant good people and time is money in the checking account for a reason, so they could go get it at a moments notice and I think that allure has just gotten people having too much money.

So still leaves the money in your checking account.

But in the mind, assistance in their not earning much you know you put it into one of these things and you could still go get 10% anytime you want each year. So he bought the six year thing you could actually get 60% of it out before the end of the thing 10% a year without paying a penalty writer see like cheated.

He had signs of hundred thousand so he could put his hands on 50,000 in any given month coming in a given year, and whatever point he did. He wanted right but yeah but he was taking the interest to which he is doing that it would only be the amount over the interest yard amount taken out of their 10% or less, but yes, I don't want to start stacking all these benefits worries: the money out of their private most people's money and there they just leave it and then the bullet out of the back and all of these have these great liquidity features so you can just restaurant you need to go buy something or you have some emergency, it's pretty needed to get your hands on 10% of value in any given point, that's awesome well break but we want to remind you that the cells brought to my Cardinal Tide.com or you can email Hans or get his book the complete Cardinal guide to planning for and living in retirement. It's all there a Cardinal guy.com and will be right back with more on the simplicity of the new Mike, Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room. There's a chance for you to advance the kingdom through financial resources by leveraging Hans expertise and qualified charitable contributions veterans aid and attendance, IRA, Social Security, Medicare, and long-term care. Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school civic contact on the Cardinal guy.that's Cardinal guide.com welcome back to finishing well certified financial planner Hans Schild and today show revisiting my goods and trying to simplify them, especially in times were in the stock market is pretty volatile.

Bonds are not so hot.

But oh my goodness these are looking better and better right Hans Leo and let me tell you try to blame the six-year my multiyear guaranteed annuity secure contract with an insurance company and just try to simplify as much as I cancel it.

Let's pretend that somebody has $100,000, but I maybe have hundred 50 or $200,000 of cash and that they know that they don't need to get their hands on that much money all at once and they just assume management sit there while they just assume lock it up for six years and get the highest interest rate caps� Pretend they bought just that and so now they got a contract with the insurance company. They give them the hundred thousand dollars, and they've agreed to leave that there until June 2028 Jenna 2026 years so the money is there and earn 4.3% annualized. You so let's talk about some of their options. One option would be yard like that interested in a check every month and if that's what they like, you know, that's $4300 a year to be just under 400 bucks a month for more than 360 months that this insurance company would just send you the owner of this thing a check for that interest. Every single month and assures that you will have to pay taxes on. If you receive where as if you left it in there.

This would be tax-deferred. So that's what a lot of people do is they leave the hundred thousand.

There and they let the 4.3% interest and after six years and have a nice chunk of change in their in addition to the hundred thousand dollars just that simple. And at the end of the thing that they in May 2028 if they want to check for the principal and interest is still the insurance company sent him a check in with Sadie and then then there's other IRA opportunities. You know, certainly the Roth IRA and whatever and where you would just be accumulating interest in, and perhaps never have to pay taxes on it right correct so you can buy these in an IRA or what I want to point out any year, any time you can take 10% of the value is in a deduction or withdrawal and not pay any penalties so long about the second year's supply was sanitized that money up. I need I need some money to go find something to pay for something you can take 10% of the whole value out. Take out take a check. You have to pay taxes on the accumulated interest is that first money, now, but nonetheless the insurance companies not so the example we are talking about is you could take 10% in any year like in this six-year annuity in the second year we just all the sudden need $10,000.

We just take 10% take a little more than that with the accumulated interest in more than $10,000 and the insurance companies not to penalize you pay taxes on the accumulated interest to that point so you can do that every year for the rest of the facts of the Access to your money.

You just can't get all your money without paying for health so we have a lot of people take these and thereby Mike is Micah Landers were there. Having a series of these things, so they got something, do every year so they don't have to do these early distributions felt try to make the simple so the six-year thing you by Jan page 4.3%. You can either take it interestedly. The interest there money is tied up for six years, you have access to 10% of that in any given contract without penalty.

So you could actually get 60% of back if you did it strategically without payment penalty for the end of, and then most importantly is if you die during this period of time, your beneficiary would get paid out immediately the accumulated interest plus or the beneficiary would have the option of thing like the 4.3% just to leave it there until the end of the term, and then they just make it that interest. Following the other clothes.

Either option. Wow, that's kind of benefit on any of those right that they have that transfer on death situation where coming here and outcomes without any penalty whatsoever right yeah. It you know we have somebody like somebody's approaching retirement and that they're not there and they got an income now had a pretty good level in their piano higher tax rate was one of her interest personally want to get more interest on their money and on their cash or their idle money and then they wanted to further taxes. These things are perfect because you could just have them come due after you retire or you could if you needed to go in there and do something with it. You could just make a withdrawal in your year after retirement. If you're not exactly sure when that is.

And if you died in the meantime which you got the benefit is just like life insurance adjuster pays out immediately to the named beneficiaries. I am I right and I just checked my own understandings that like for somebody that was still employed myself right at the if they took that money and put it in a Roth IRA and did the same six-year deal.

At the end of that six years they would have access to that, to the interest as well, with no tax write correct that the beauty of a raw money, out of their tax-free weather it's originally put in principle and we have people violated from rock money.

A lot of the monies already in the raw and it invested in stocks. Invested in something or maybe they got out of the stock, they moved it over to the Roth and they didn't.

They just one of the monies already in the raw so that we just sent one of these as a raw IRA annuity and your you're absolutely right. Is there will be no taxes due on that 4.3% or whatever the amount that they agree to send this to spectacular unit compared to the way other investments are acting in a right this minute. I mean it's it's an amazing opportunity and I can see why you write these have been really really popular flight to have people wanting to get out of the market are people got out of the market partially out of the market on their own, or people that were never into the market and they just really got out of a long time ago on the money just sitting there earning nothing and now the market going down there.

They're calling it in the same like I going to be some return money and you know we caution them that we don't want to stick all their money on these things because we don't want all your money tied up some period of time. We just want the appropriate amount of management probably not can use this wonderful we can put these in any type of account. We just set up a whole separate account that you Roth IRA a regular IRA we can roll 401(k) into these we don't have to roll 401(k) we can roll it over into one type of IRA, IRA account and then leave some of it in there invested in his role part of it into one of these is the latter strategy that you describe for that client rights every year. After two years he's to have $100,000 that he could invest in other things. If things started look better in the market or in the bond market or wherever he wanted to go on and peace of mind. We got plenty of money and when you have this much cash laying around.

Plenty of money you really get down with him is that to lose some of this money would just be very hard for okay just psychologically and I just financially the end to gain money didn't do that much for me. Just wanted money return. He just wants a good fair return.

And so you got it. With this handsome, some awesome liquidity features the end, I want to know. You don't need to have 1/2 $1 million.

Like the kind of video department. If you cut $20,000 too much in your checking account and you'd like to get some better interest on we contend we can help you even said at the beginning of videocassette was paying attention for me doesn't have that much money you had said 10,000 in some cases right.

There are some of the companies that will take It will be glad to help you will figure something out for so the argument was satisfaction helping people out, that have left your money is not collectively like I don't charting please. Some of the wealthy people in our church sees, either because of my insurance product I do my work pro bono for people that don't have a lot and down. I just I get a lot of most of her so appreciative now yes absolutely spectacular. And that's the whole idea of parable of the talents rights that just being a good steward of weather it's now $5000 10,000 or whatever it is it's worth having a discussion with you because you right now you know just there's a lot of scary investments out there right there are and whole people and all people are done for the last 10 to 12 years that are invested in stock. It made money you have planned years In there, but it is been nothing but a part he had. I noticed a lot of people getting pretty doubtful themselves like the geniuses to start and more. That'll change the beginning of the year. This is not been a good year and it's really brought out people's concerns and what were talking about here today is safe place to stick something retirement money. We don't have to worry about hi Constance, a great job she did.

His book the complete carnal guide to planning for new living in retirement and looking at the advantages and disadvantages of all these different kind of risks if investments all that stuff's in his book the complete karma guide to planning for living retirement@solidcardinalguide.com as well as links to his YouTube channel which is spectacular way goes in all this is well. Cardinal advisors on YouTube right show on thank you thank you finishing well is a general discussion and education of the issues facing retirees carnal guide.com Cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice.

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