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annuities Archives - Wealth for Life

How the stock market can make you work an extra 13 years

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Over the last 14 years the markets have hit all time highs three times: March 2000, July 2007, and roughly where we are at now – June 2014.

What if you had turned 65 and decided to retire in the year 2000? As you’ll see in this video – the market ups and downs forced “Joe” – who had planned to work until age 65 – to work all the way to age 78.


To make matters worse, he still faces the same question today, with the markets at all time highs again, just like in March of 2000: What to do now? Read More

Building income streams Part 3 of 3 – The myth of Be Aggressive

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In this final segment we discuss how to take chunks of money you have saved and create income for life. The younger you start this process the better. The great fiction you hear from financial media is that when you are young you need to be aggressive.  This is not based on any fundamentals and not is it true. There is no one-size-fits-all advice. Read More

Building Income Streams part 2 of 3 – Case Studies

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Build income streams you can access before and after age 59.5. Also have multiple sources of capital you can access without restriction (like you will find in 401k/IRA). This can give you better access to your money to handle the ups and downs of life.

In this segment we also go over specific case studies comparing income streams from defined benefit plans and 401ks to tax free income from indexed universal life insurance plans. Successful professionals are increasingly building alternative income streams they can access before traditional retirement age. Read More

Building Income Streams part 1 of 3 – Critical Planning Steps

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Income planning is not just for retirement. What happens if you want to access your money early and everything you have saved is in a 401k? With the exceptions of emergencies you are stuck until you reach age 59.5 in most cases.

What if you want to go part time or start a business? What if you get laid off and can replace all your income? Having income streams you can access without the government penalties could be a good idea to incorporate in your planning process. Read More

Build income streams to create wealth for life

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Building income streams is the “pension” type concept. Your financial life is much easier if you know 70% or more of your monthly expenses are automatically covered each month. Use safe and protected vehicles to create a lifetime of income with double digit growth potential, no market risk and inflation protection. This short video explains how it’s done.

What goes up, must come down

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Up and Down Plan CrashMany investors are feeling great about recovering what they lost in the market crash of 2008 and even the crash of 2001 to 2003. But a sentiment I often hear now from investors is “I’ve recovered what I lost and I don’t want to go through that again. “  There are three steps you can take now to protect what you have and maintain growth going forward.

First, have a “floor” to protect your wealth from market losses.
A floor simply means if the market crashes you don’t lose money.  The most common floor is 0%.   The floor is tied to a time frame, usually one year. This means if at the end of the one year period, the market has fallen 30% you get 0% for that year.

Second, have a “Reset” feature in your strategy. 
Following the above example, since the market has fallen 30%, you received no losses and now your wealth “resets” to where the market is. (30% lower than the year before.) All of your gains for the next year are calculated from the lower market position. You don’t have to wait until the market comes back up to where it was before getting gains. This allows you to capture gains even when the markets are flat for 5-10 year periods like 2000-2010.

Third, have very high caps or uncapped strategies to capture gains.
Most all strategies with floors and reset have a maximum cap on gains.  This is the price of the protection. Some caps are very low in the 2%-3% range. Caps that low make the strategies almost worthless.  (Slightly better than a bank CD.) Good products will have very high caps in 12% to 17% range – found mostly on indexed life insurance. You can also find uncapped strategies on very good indexed annuities which work well for 401k/IRA types funds.

Here is a chart the may help to put it all together:

Upside with Protection

Choosing the right combination of strategies can offer double digit growth potential without the downside risk.  But there are a lot of bad insurance products on the market so make sure you know what to look for.  Knowing what the upside potential is should certainly be on the top of the list.

Planning For Inflation During Retirement

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Many investors are facing a big dilemma with inflation once they enter retirement.  The dangers lies with annuity payouts that provide no protection from inflation.  This is usually never discussed when the annuity is sold and can come back to bite the investor hard down the road. Learn more on how to protect your wealth from inflation during retirement.

Planning For Inflation During Retirement | Scottsdale Financial Planner Denver Nowicz from Sequence Media on Vimeo.