Manna Money: Investments and Income

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Finishing well. I am just so excited about five. This subject is near and dear to my heart. You know, the Israelites, God provided for them in the desert and it was called manna by any came every morning. Can you imagine manna money yell you look at the concerns of the seven words that you you tab you got there is some I can have any income moving forward, and I really think because we talked about two weeks ago we talked about Social Security and the narrow way and the narrow way was not the people at 62 thought they were to run out of money, so they begin to take the money early because they thought that was their worry they're going to run out of money. The next week we did the show last week show on RNase again.

So many people take the required minimum distribution that we talked about that last week that we need to be a really motivated the distribution of the required minimum. The reason why they take the minimum is again what are they afraid of. I'm gonna run out of money on the run out of income, but in today's show were to be talking about investment strategies investments in during retirement. And here I think for those people that fell into that.

Okay, take my sister to 162, take the required minimum distribution reason is I'm afraid I'm in a run out of money. Guess what today show. I think you're gonna be really excited to see that God has provided sort of Amana money plan with correct financial planning to where Juergen have an income for the rest your life you it will come every morning even on Sunday so you don't run out.

That's right. And you were talking about distributing the savings portion of your money. If you're 60, 70, 80 years old. If you're in your 50s you not ready for distribution, yet. If you're in your 60s you're getting close to retirement and many folks are ready to start distributing their money and what today's show is about is really worth his investments in income people generally are going to think Morgan talk about as well which stocks are beginning by which bonds are weakened by when we can cash in where the capital gains.

What are the mutual funds there thinking about investment return and what I find interesting is I've been working with you now through 25 weeks and 25 shows just how little time we spent actually talking about how you invest your money and when I compare that when most folks come to us and they come in. His clients that's their primary worry. They're worried about losing money in the stock market you're worried about being invested in the right things they're worried about somebody thickened and cleaning their money somebody that's in my occupation. That's dishonest. They're worried about just protecting their money in their worried about making the proper return so they can live hike is a real issue is, they don't want that account to drop to zero, and now I've got no income and because your life keeps coming at us every month and now the mortgage or whatever we need to pay for food and so the idea of manna money for that to be there when you need it is clearly you of some way that people could get rid of that worried where they can sleep at night not think while no matter what I have money I would have an income we you'll notice that this chapter fits in the middle in my book and is in the middle of the series. Investments in income and that's for a reason. If you my book which I'm speaking of is the complete carnal guide to planning for living in retirement and it really has seven sections the coordinate coordinate with the seven worries that that Cardinal guy.com he had first chapter deals with Social Security and that's what we're talking about a couple weeks ago and Social Security is your minimum base income.

Unfortunately, for some people that's all there and can news it is like mass not, now it is guaranteed, but there's planning that we do around that and then we getting your health insurance and that's a big worry for folks and then we got a looking looking at your money.

We gotta think of one of long-term care happens to me. What if I need nursing home. We gotta provide for that and we have a whole chapter in the whole show in whole section on that. Then next comes IRAs and that was last week we talked about IRAs and how you plan forum RMD's all that business and then next were at retirement income and investment so you say will why did it take you so long I thought that's all you do well when a person is retired or retiring or anticipating retirement all this stuff all the just mentioned and more because after investment income. We got life insurance, estate planning, estate planning documents get income taxes have shows on all of them but they're all wrapped around the investments because most people commend us in their Jonassen was saved got $300,000 in an IRA and maybe they have 30 $40,000 in a savings account and then they got some real estate that they intend to live in in a few cars in a nice Social Security check. And it's like here you go. And so we've got a look at all these things because he with Social Security checks can be, we gotta provide for health insurance and Medicare. We got plan for long-term care. We got a look at this money is in an IRA. We've got it minimize the taxes on that prostatectomy like me.

Yeah, you know that I'm worried you know I gonna run out of income when I get to be 83 or 84 Cust you know, I see that my father lived a long time I mother lived a long time.

You know, people are living longer and longer and and while I mean at some point, will be able to be on the radio possibly hope not� Allow me to be on your time in my 90s but say it wasn't and I had a $300,000.

Here I am at 62 and I had a $300,000 IRA that was not how you put it where you still have to pay tax on yeah it's it's qualified it's qualified so I I am pay tax on that money at so there sits $300,000. There is investment strategy according to your chart that's in your workbook. By the way. Seven worries tablet Cardinal guy.com you can get the whole workbook and in this investment strategy gives you a list of all these different investment products but here I am at 62 not wait in time, take my sister to get some I can take it yet. What would be in a good investment strategy based on what you know about me.

If you're most your financial assets are all in your IRA right and that's pretty much all you got for financial assets.

Maybe other than the savings account and now you got a real problem because you and your wife are going to need to live off of that.

In addition, you Social Security for the rest your life and you don't know how long that is, you don't know which one is going to go first and you don't know how long the other one is going live beyond saying you got a real variable that only God knows that information and we need to figure out a way to take this $300,000 make it last the rest your life.

I am just thinking annuity mean I just you know and I'm not going ever recommend that you put all your money in annuity because you're going to get into an illiquid thing and so this this this idea of manna money annuity does kind of provide for that to where I'd I'm never going to outlive my mom so for people are not familiar with annuities like me. What is that what is an annuity so it's bought from an insurance company and they do have fees inside of them. They get touted as the fees are too high.

I'm not too high on variable annuities. So for the purposes of this conversation will be mostly talking about what a fixed annuity is that's what you're buying from the insurance company.

When this is fixture buying guarantees and insurance company will take your money safe.

You have $300,000. We may put 200,000 of it into her just roll it over will do it because I was in society since it's an IRA so we get we create from what I understand, and at annuity that is also an IRA so I'm not having to pay the tax on so were moving that over into an annuity but it's in Iran remove 200,000 knows this is while I'm still 62 before never take my sister just you and Morgan put it there in you know what I know about you is your inner work as long as you can so you really that maybe eight right so as long as you're working you're not can have a need for this money okay and the longer you can put off drawing from this money.

The larger can grow and so the insurance company is going to increase that money for you every year. Little complicated to get on to hear all the way that that happens, but there to provide a guaranteed amount to plan for Sage 71. We were going to say that that's when you can have to start making withdrawals from your plan on your IRA. Having RMD okay so were really plan to turn on the income at that point so the insurance company can give you a specific number that that will grow to in his guarantee so where's the other hundred thousand dollars and I'm going to invest for you. I can't guarantee with asking to be in nine years and I can guess at it I can project what it is with this annuity I can tell you exactly what that things can be worth when you're 71 and my understanding the beauty of the summaries on Santa's manna money is it the insurance company's gonna guarantee that income so you know what they say that to give me what how much of how much your what I get off at 200 top well again. I don't want to throw out a number on the air without having the highest scenario right here but it is long as everybody knows that this is a guess I in it again. It would depend upon whether we would be covering you and your wife just use if it was just paying you it would pay more if it was paying over the life of both of you, but let let's just guess $12,000 a year for just you guys are give or take it somewhere. It's over $10,000 a year so I'm a have this income. But the beauty of an annuity is to have that income now if I live to be 150 yeah it it is guaranteed for that.

That's what you're buying with an annuity is you can outlive the incoming going that's probably neither. I either can your spouse. That's why typically I would recommend that you would take the spousal joint option and then maybe instead of getting 12,000 year you can get like 10,000 year to keep in mind these numbers are guesses were just talking here, but it just for illustration purposes. I want you to understand is that you're getting a guaranteed income to start in the future, and the longer you put off asking for it or taking it, the more it's going to be coming.

If you could put off till 75 taken anything out of that.

It's going to be a lot more than 10 or $12,000 a year.

Ryan I hate getting out of frankincense. A lot of stuff inside that that we love to flesh out, but the idea is manna money adverse, we can see all the information Cardinal guy.com you have. We got some we hope you are enjoying finishing well brought to you by Cardinal guy.com visit Cardinal guy.com for free downloads of previous shows, including episodes about Social Security and Medicare, IRA, long-term care, life insurance, investments and taxes as well as Han's best-selling book the complete Cardinal guide to planning for and living in retirement. Plus the accompanying workbook. If you want to follow along with today's topic download free PDF Cardinal guy.com by going to the seven worries tab of today's show topic, just scroll down to useful documents once again for free resources shows going to get Han's book the complete Cardinal do I planning for and living in retirement or the work will go to Cardinal guide.com you have a question, comment or suggestion for future shows. Click on finishing well radio show and send us a word. Once again that's Cardinal guy.com Cardinal guide.com now finishing well brought by Arnold guide.com to finishing well today show. We were actually talking about retirement investments that work on this manna money is you know it's kind of amazing thing God provided for those Israelites where they knew when they woke up in the morning they were gonna go hungry and there are vehicles that I'm finding out in the way of retirement investments that can make sure that you know when you go to bed at night, but 20 years now.

If you live to be hundred and whatever but I bet if Methuselah had bought an annuity you would really thought about that lawyer right before the break. We got into that okay we're gonna let that money now that I'm 62 so it would sit there and be growing growing growing it. It would grow substantially. By the time I was 72 so that the income part that I was taking when I began to if I decided to leave work at that point in time would continue to grow.

That's right even eat you may have a really nice looking IRA are real nice 401(k) is. It's a great idea to get some advice before your 70 and figure out what to do it. So sure and you know I'm just going over this. What I would do. I don't just recommend annuities to everybody I talked to, but I'm hearing what's unique in this situation of this person.

There were looking at. The only money they have is in this IRA okay and they've got $300,000 which is a lot of money and but it's all they got. And so now this is got to last over two lifetimes over your lifetime and your wife's lifetime just to ever lose the longer this is going to be the survivor and it's just not as simple as investing that money hoping for the best.

And then whenever we gotta start withdrawing work and only withdraw interest in unit it just doesn't work.

If somebody had $3 million. Now that might work a little bit better and that is they can kinda go up and down with her spending, depending upon how the market but when you're talking about somebody who deeds to create a lifetime income out of this. I'm in a try to be as smart as I can and I'm just hearing that, but I just come up with very quickly would be a scenario where you put 200,000 in an annuity and we might withdraw from that in 10 years we might start a distribution plan. We might wait 15 years we might need to start as quick as five years. You could get sicker you were working here you take your Social Security early, you can start the income on this annuity. I got one of about 50 that I offer that we would pick the one that would work best for you, but it you could started at 65, you could started at 68 6983 amino just the longer you wait to take money. The more is going to be in there obviously but also the more percentage that it'll pay out for your lifetime because your older sons and Margie selecting the time that you would at your Social Security right if you wait long very similar in the payouts bigger, but take the thing that's strikes me is that this is so similar to the person that while I'm in a run out of money sought to take my so security at 62 while I'm gonna run out of money, so I need to work on these minimum distribution so I don't run out of money but actually coming against the grain. Going back in and looking at wow I'm in a weight on my so security wow I minute take these minimum distributions and I want to make a really motivated distribution into something like an annuity where literally I won't. There's no way that I'm around on it in just have to keep terminology straight.

This actually is a distribution because your 62. It's just a rollover or custodian to custodian, transfer of $200,000. When I put these plans together. Then were to look at the other hundred thousand wire we live in 100,000 on the side.

Well first of all, if we have that in the managed account that's going to be, or we put it in some type of managed account. This can be very liquid. So if you needed to get some money very quickly. The annuities can have surrender penalties and charges for getting at your money came so were probably going to divide that money half-and-half organ probably put $50,000 in a very conservative investment portfolio which might be heavy on bonds and it's something that's not to go up and down as much. It's not can it have the best potential return, but it's going to be money that you can get at quickly and you don't have to worry about getting at it during a down market. The other $50,000, which is essentially 160 your money we're going to perhaps that can be where you can take some risks if you want to come to me and take some chances in bed on some Amazon stock or you know that on a portfolio of that type of thing. If things are to look favorable going forward. We really want take some risk known. Keep in mind, none of these recommendations on the air. I go to be very careful about what I'm doing is registering for instance for financial planning. It's important you don't put all your money and what you put all your eggs in one basket and we separate the money and this is the later income money is the $200,000. The hundred thousand dollars is going to be half right now emergency fund, quick fund money that I need to just turn on. In the event of a crisis.

The other $50,000 is something we can try to get some good increase on and take some risks with and perhaps maybe you have some extra money to give your grandkids and again I hope you get where were headed with this is not that there's a cookie-cutter approach by any means for every situation. Everybody's persons every person situation is so radically different their type of investment.

The size of their family.

You know what their life expectancy is and all those kind of things, but based on the person that is good thing think I have a long life are concerned about running out of money and normally would be the person that jumped on the 62 were jumped on the minimum distribution. The idea is wow there is so much wisdom out there that can really help you work through that you can get it easily by a course going to Cardinal guy.com and get in Hans's book the complete Cardinal guide to planning for living in retirement.

You get it from the seven worry tabs which actually I always want to say we don't want your worry about anything that really got his provided manna instantly different ways in both wisdom and spiritually that you you really should sleep well at night knowing that will really some some wise counsel from somebody icons somebody that's kingdom minded will sit down with you and go okay, here's this this this and this. Whether you looking at long-term care what you're looking at it it it income in the future when you're looking at your tax situation. Those are all things that are available there but also from a simple phone call he wants to get you the information and in its it's right there Cardinal guy.com today.

What were talking about this thrown it out there and what originally intrigued me as I read this article that you would written and you said no assemblies expected a short life expectancy. They need to buy life insurance but if they are expected to live a long time. They need to buy annuities and if only Methuselah or even no matter 600 years made out like a slot machine the so there there's a place for each one of these project products know when you go in my book in the workbook. It was you that pointed this out to me last time were we had this wrist chart and I'm trying to get to the right page. Here we are. Page 71 in the workbook and again you can download this chapter from Cardinal guy.com that the investments in retirement income. It has a whole wrist chart and it lists all the different types of investments equities and stock bonds, equity indexed annuities, fixed rate annuities bank CDs cash in money market real estate golden commodities, options you that's an extensive list of all the different things and most people don't know which one of these things to put their money right they date Dave that this is what's really worrying them and that's really what we do is we give advice to people and just the gentleman we were just talking about the married couple that has $300,000 in an IRA and that's pretty much their only financial assets and we need to make that last a lifetime.

You can't put too much of that money at risk. We we we just can't do it, and Serena recommend that they, and we run the many these people. He got all at risk.

There they got it all in stocks and so regardless of their age work in a work at diversifying and all I was saying is as if they can't live off their Social Security then they're going to need to rely on the income that comes in off of this $300,000 and they have an unknown and so they're afraid to spend principal so they're just living off of the interest of these conservative investments. It just works out that with part of their money in an annuity would be a smart thing to consider, and again just because there is no correct cookie-cutter there like you said, there's over 50 different kind of annuities to step on continuity but made me know the opportunities that you God is in you could take an annuity that start pain out of 62, but by waiting till 72.

That money is actually sitting in there before you take an income and that money sitting there is is making interest and it's growing so that that your payout can be bigger or if you were to die suddenly if you hadn't taken it right and that that money then goes to grant it does it does in that particular kind of annuity there's other kinds where it goes with yeah and it's so this reason that I wrote and I said in the beginning of the show here today that we've got all these factors wrapped around your investments and there's a recount.

Not a lot from that money will count on a lot from Social Security and those two things put together you need to live off and then what's left is gonna be your state. Use your Homewood figure in their if you want to get a hold of this book.

There's a few ways you can do it as you go to Cardinal guy.com and you go to the seven worries tab and you can download each one of the chapters for free. Today's subject is investment in income, but any one of the other seven. You can download for free you can really put the whole book together this in the workbook or you can purchase it on Amazon on the Kindle is very inexpensive. Or you can just send me a text or a message online Cardinal guy.com to Hans book offer. I'll be glad to send you a copy of the book. No charge. And again I I know that God does not want us to worry about a single thing and in doing that, you know, through prayer, he can order our steps at and he'll heal guide you to the person the financial yet you knock in a run out. There's no reason to worry. There's a reason to turn to God and ask for wisdom asked for help again. We want to do that. If that's you know what will help you tune in next week and listen to this again on finishing well with certified financial financial financial planner on child again brought to my Cardinal guy.com. We really appreciate read fund and we Hans did.

We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guide.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 ponds 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 get Hans book go to Cardinal do I.com if you have a question, comment or suggestion for future shows. Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guide.com Cardinal guy.com