Lifetime Income Plan

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Now let's get started. Finishing well, finishing well is a general discussion and education issues facing retirees guide.com partner advisors on trial CFP some insurance this show does not offer investment products or investment advice welcome to finishing well, a certified financial planner Hans Shiley and how fun today's episode sounds too good to be true to my my book but it's not in the name of the episode's lifetime income plan.

What lifetime income plan. If this sounds too good to be true, why you don't have to tell you that I've been Hans of been reading the song of Solomon for the last few weeks and and I came across this things made me smile all week because it just sounds too good to be true.

So, for those are not that familiar with the book. Song of Solomon essentially is the love story between Jesus and you are lit, the love story of Jesus and his people in it and if you read an overall view of it for the first four chapters, Jesus is coming after his church telling us how beautiful you are telling us all the gifts that we have and and and essentially wooing us.

But in those four chapters. If you read through those four chapters you'll see he keeps asking us to get up.

Arise, my love. Come away let's go you know we are to go to Lebanon. Iannone keeps asking her to come up and get up and get up and get up well when you get the fifth chapter of Jesus coming after us. Then he finally comes and knocks on the door it in the night with his head dripping with drop like he did regarding SNA and is and she says literally. The bride says no I can't get up because I might get my feet dirty, you know, like how can I be so ignorant. While that is me.

I mean, I get that. But then it says that he stuck his hand through the hole in the door which we he's knocking on our hearts, folks, and so when he sticks his hand through their essentially he is not the key of her heart to come to our hearts, and he unlocks it and once he does, it says she is so moved from, she finally after four chapters gets up and she begins to chase after them for the rest of the book, and I'm just saying that this transition was, as I realize what is going on is yell yeah yeah Jesus does have the key to my heart and they did awaken and I did you know it at work and what's even more wonderful and almost too good to be true, but I know it's truly has the key to all my loved ones. He has the key to their heart, and he loves him more than I do and some of the time is right.

Right. In spite of how they may act to not want to get up because they might get their feet dirty.

He still coming to unlock their hearts and Anza still coming today to tell us about the lifetime income story together the client.

I story the owner today and we set this planet are very similar to the bride in the 10 feet dirty is so close friend of mine work with this lady. Years ago so and he is an advisory was her boss and he was just working on her and a few other people that they really need to talk to this guy. He can help you with your retirement and your retirement money and the money that these people had accumulated was pretty substantial to them in relation to working folks that she worked in a hospital he worked in a machine shop and you know they they had accumulated. She accumulated $650,000 in her 401(k) and he had accumulated 440,000 that the amount that they had. By the time we finally rolled over under our management.

There is actually more of it in their six months to a year ago because they suffered some like everybody and they had too much of it in stocks which a lot of people have a 401(k) with the previously made.

They were areas all along just to deal with some slick talking financial advisor salesperson and insurance salesperson which is how child they never met again, gave much thought think they really read it. Maybe she did, but I was down vacation where they live a few years ago during pandemics in less than two years ago and I drove over about 30 miles and met them outages that animate lunch together just to meet face-to-face and I really advise them to start comparing their money then back in 2020. Just because what did happen within the market correction because they were telling me to retire in the next few years site at the time to start making your money saver and less at risk is now not that you come to me in a couple years and you say now ready to retire. Well, that's exactly what happened is they didn't do anything they think they actually did do a little something they paid us to do a financial plan so we got in and we gave them all the recommendations but yet implementing the model's recommendation takes some of the money 401(k) and just roll it out and get into a managed account that we can manage the risk of do that they were ready retirement and so then I came to us in a cast set up the whole video today of what we were able to do for right because it is you talk sensory times. One of the biggest fears that you face for all of us, including me, I'm in outlive my money here coming so they added money. There were large numbers you know and the total between two she had six 5440. So we got $1,090,000 of mine having a tax and they were very clear on the fact that we have paid tax laws that we take a dollar there began to give up so much of intact, and they knew that, and they also make in light 89 grand 87,000 in salary and he was making more like 45 or 50 and they pretty much they've been doing all the savings but when they looked at it as they still needed the same money. Look at the net check that they get every two weeks and how they live and how they stand, they were genuinely worried that they stumble upon to leave their jobs and they want to stop when they were young enough to enjoy the grandkids and do some things that they wanted to want to hang around in the place were there working for several more years. So the whole time and when I saw the band. This is gonna be a problem and they were both adamant and understood after they met with the security were adamant about starting a social security candidate 64 6564, when he was retiring and she is not yet 62, but I think she's turning that life is and when she 62. She is starting to 62, 64 regarding his and take a lower amount in the lower amount problem even though they got a million bucks over the other side of the equation collegiate. Candidate and so after we get done with all this thing and one intimidating so somehow you turn my concern for them was the time had a really wonderful for me, you know, in other words, one or two of they might not even make it to if they were both can be gone. 85 then they really did need to do the planting acreage is gone. Started security take as much money out of the IRA as they needed and then now if they didn't have a plan. They could be out of money. They really were sent, but my real concern here is one of the one or both of them live up into their 80s maybe another 90 maybe beyond that now takes on a whole different perspective.

Here we are at 64 and 61. Our source of income in retirement and we got over a million bucks to work with but without pay tax on every dollar. So this is a bit of a problem to some kind I'm referring to some okay so the first thing we did is we said were going to need to get the money, rollover and were going to get your million and $90 at less risk than it currently. So we want to stop the losses are not but you never know in the market currently can't get completely out of market but usually made a more conservative that was fairly easy to do so. We got that we got the money under our management and then what we wanted to do is we wanted to get out of the bond market or another words we wanted to get their money is the safest money inside of this thing were going to move into annuities where there is a guarantee we can't lose anything and then you know in a good year to make something or every year to make something and so generally speaking, we wanted to delay their social security related like the idea first because now you tell me we gotta make this million dollars last year telling me that were a delay Social Security so we got start drawing out and living exclusively. The IRA money so that we can wait for a bigger check later that you know Thomas is not exactly what because it should give it a guarantee return on the delay so secure. This might be a good place to jump in here and tell you that course all this information. Is there a cardinal guy.com where there's the seven worries to add that seven worries tab. Which one are we on today. Hans, we are on the income and investment Okay and in the in retirement income and investment. So under that tab you can find resources which you have shown, now it's the board. All this information on exactly details about this plan worked as well as the video and copies of podcasts on similar subjects are all buried cardinal guy.com as well as Hans's book the complete cardinal guide to planning for and living in retirement and so we want to have those resources in first. Cardinal guy.com so we come back and get more details on how we ended up with this lifetime income plan which is just sound too good to be true, but is not the right back.

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 and 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 time to schedule a live recording of finishing well at your church, Sunday school Western Pacific. Contact time to Cardinal guy.that's cardinal guide.com web back to finishing well certified planner.

Hans silenced today's episode so exciting to hear the rest of it is a lifetime income plan would get into details of how you guys helped this particular couple so we did. We took there million $90,000 and we put it into three different but and number one has $490,000 left in it but the number one is the same as a whole million 90 was invested in managed Invested in stocks is invested in bonds really ETF exchange traded funds very low fee very low cost, pretty conservative still has some rest of the market goes up. Second, make as much of the home market as a whole but is going to do well market goes down, it still eludes money, but it is my is it otherwise would have been so we taken their money that that risk down from essentially 1.1 million to about 500,000. So what we done with the other 600,000 is we put it in the other two buckets. So number two is we took $200,000 and we put it in an accumulation annuity so this is really kind of our hedge fund. That is my week. We probably are not intending to touch until we have several images grow the daylight money and so that when they get to be 80 or something at some point we can start making withdrawals.

We could also have this thing like next year, the year after five years from now so this is our desire find that we don't have an immediate plan or even a long-term plan for making withdrawals and let money accumulate and yet is still very safe money because you cannot go down in any given year. Okay so since it is an annuity at some point can you turn in income amount. If you want to get you could turn it into an income really getting what is really not set up, meaning that the payout are not favorable on the income portion of that annuity payouts are available in okay what would you normally think of as a baker, something that's can sit there and grow and grow and grow. Not unlike their other investments.

It's coming because there is no income association like the other one.

It has a greater growth rate right is greater growth rate the same time guarantee a principal and previously accumulated interest so you can't lose it all up and down it either medical and remained flat so that a lot of security and it also any given year. You can take 10% of the value out without so that I realize that we ever have a play go for money and follow the department number two guy and then re-is, we put $400,000 but in a real simplification of this is just to explain to you that this 5000 is there until we start the lifetime income family came with the lifetime income is his monthly check, start the minute you turn it on and it cannot cover light in her life so as not to stop in Quito, Baltimore, so he died 78 and she listed 94. There is no interruption of the time they started till she is 946 okay 203 sheets to check following 103.

Once you turn on the income from this thing. It never stops and especially based on to live and is an example of $100,000 if they leave alone for 10 years and then start the income. The income is $50,000 a year and that income.

Like I said 50,000 now that this project is starting 2032 and is a pan lined into one of now, they'll have to wait 10 years to start the income they can start the incoming 46. It started six started thinking when you have started 10 years they could let it grow even further. They could never stop coming so that this thing is loaded with options for the longer you wait to start the morning and and then once you start paying now.

Guaranteed payout that monthly check. The second one of you dies and is pure lifetime income plan just like I promised you in the beginning of time, and I know blisters probably think the same thing. What happens if they both die when their 72 to the rest of it so different type of annuities and immediate product is so as an example, about $400,000 now.

We did this refinement and so 10 years now that 400,000 legislators grown to $700,000.

The numbers should say that as the number and it also says that you can start the income and you can start collecting $50,000 a year 4200 a month.

Whenever whatever that number one chapter 3 monthly check for four $4200 deducted on your 700 every month every month every month and so by the time you get into your 80s or they get into their 80s 700 grand, somewhere in the rate just as a paid all-out, but when the balance is zero and one of her to him are still alive either one coming on a zero balance that I sent in that state specific. Almost like Social Security right once you turn it on. It doesn't stop until you really about purity were different is you die six months that is started. Check no cash payout anybody with anything if you made an early death at a turn on the same company. A cash payout this year so that people are not even that worried about leaving my kids think they were just worried about having you know the income that we were solving for for for the two of them is now about five grand a month matter how much money now that after-tax of 85 grand a month to live. And then we had a inflation factor so you know I get a little complicated. Just explain on the radio but you know if any five grand after-tax is five grand that now 10 years from now the Republicans need seven grantors so we can all affect. Plan. But we've got several hedges here.

Number one, we have $190,000 account that we can start deducting the money out of it. We gonna deduct more than five grand is based on taxes, but when your people well you don't pay much damage.

Again, we all factored in and drive down the 490 grantors invested in the market to drive down when I get zero, but were in a drive down and some point about six, seven, eight years out were just projecting the clip from making withdrawals from that to that bucket number three will turn on the longer we can wait that and if we have bad performance in the market that will Bucket number two. That thing is grow if we had great performance in the market or just acceptable performance in the market. Maybe we can just live off of the 490 grant of a longer delay starting bucket number three Mitchell got a lot of flexibility in your and at some point in the next few years were turning on purity check and then to which will make less deductions out of the balance of the flexible balance so people are really coming. You know, in a worst-case scenario they had to live out of their Social Security checks plus with a get out about it. Number three and completely number one bucket number two were completely depleted. There's no fine a security event on the checks coming in for the coming there. There's another hedge in this thing that they're all you can have money and they do have about 150 grand of money separate from the divine pay taxes on saving in various instruments. So Dan would work at work there and work on building Mallow or if they have some emergency or slightly modified agreement That don't buy something instead of messing with this point in getting back to the idea of waiting on their Social Security reasons to think about it just gives them that much more flexibility down the road right yeah you know people will say to me you know well I cannot do this. Managing my myself. You could but you don't know how long you know you know how long your spouse that one problem in right now a lot of people. The only thing they have against that. Can I come in as long as you're alive for one of you about you since the first one � you love that survivors don't live up to one Social Security check and you don't know how long you live. You can guess that you don't know the insurance company doesn't know how long you live either Danish or a thousand people, they can carry on average how long that how they can afford to sell a product like this send out checks, no matter how long it's time again. Wow. Lifetime income plan. How fun is that.

And I'm sure you would like to know about that while you go to cargo guy.com you can email Hans get more information or phone numbers. There is there a cardinal guide.com as well as Hans's book the complete cardinal guide to planning for and living in retirement.

Great show, Hans. Thanks.

Thank you. Finishing well is a general discussion and education of the issues facing retirees cardinal guide.com cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well with you by cargo guy.com is a cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs, long-term care, life insurance, investments and taxes as well as Hans best-selling book, the complete cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows what a get Hans book: cardinal guy.com if you have a question, and suggestion for future shows.

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