Tag: retirement tips
👉Retirement Planning At 60 in 2024 – 6 Tipsđź’Ą
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
imagine this you're approaching your 60s and starting to think about retirement you've worked hard all your life and it's time to enjoy the fruits of your labor but before you kick back and relax it's time to get laser focused on your retirement plan in this video we'll cover six important tips to help you plan for your retirement at 60. tip one assess your financial situation Jane has a woman who's been working as a nurse for 30 years she's always been Frugal and saved as much as she could but she's not sure she's accumulated enough for a comfortable retirement to assess her financial situation she makes a list of all her assets and her expenses she realizes that she needs to save more if she wants to maintain her lifestyle in retirement tip two explore different retirement options Bob's a 62 year old man has been working as an engineer for the last 40 years his employer has a 401k and he's been contributing to it for years Bob also explores other retirement options such as an IRA to maximize his retirement savings tip three diversify your Investments Mike is a 65 year old man who's been retired for a few years he Diversified his portfolio by investing in many different stock and bond index funds by diversifying his Investments might minimize risk and ensure a stable retirement income tip 4 plan for health care costs Sarah is a 63 year old woman who's been working as a teacher for the last 35 years she's healthy now but she knows health care costs can be expensive in retirement to plan for health care costs Sarah bought long-term care insurance to cover any medical expenses that could arise in the future tip five consider your Social Security benefits Tom is a 64 year old man's been working in construction for the last 45 years he's not sure when to start receiving his social security benefits he decides to wait till 67 to start taking his social security so he'll get a higher benefit which will give him a more comfortable retirement tip six have an actual retirement plan in place Lisa is a 61 year old woman has been working as a sales manager for the last 25 years she has a plan in place that includes a budget for her retirement expenses and a plan for Hospital spend her time in retirement Lisa plans to travel volunteer and take up a new hobby in retirement to stay active and engaged following these tips and learning from the experience of others you can ensure a comfortable and fulfilling retirement it's a great idea to consult with a good financial advisor click on the link in the description if you'd like to set a time to talk with us
Preparing Emotionally for Retirement…Don’t let it take you by surprise!
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
preparing for retirement is a major life transition and tackling the emotional side of this can trigger a wide range of feelings from excitement and anticipation to anxiety and uncertainty and these wide ranges of emotions are impacted by how retirement lands with you for example was it your idea to retire or were you forced out are you retiring early or later in life is your spouse or partner retired already or still at home and you're entering their domain all of these issues really impact how you show up in retirement but really regardless of how you got here you're here and the question is are you emotionally prepared for this transition so as Jody said it's a major life transition this whole idea of retirement and it Alters your sense of self it Alters your purpose and it really changes your daily activities you were used to going to work every day and now things are different so why are so many people entering this phase of Life emotionally unprepared because well we're going to show you what you need to do to get prepared but we have a client um let's call him Billy Billy's a good name right a good alias he was an entrepreneur for 25 years during high school he went to work for a restaurant and after about five or seven years he bought it from the owner and he ran that thing for a very long time and he had a great identity and a great business but about 20 years ago he sold it right and then he and what was interesting is he sold it about 20 years ago so maybe sold it at around 50.
Yeah and entered politics and worked in the state legislator created a whole new identity for himself a whole new community a whole new set of Knowledge and Skills that really propelled him for another 20 years yeah it was great but then he retired three years ago he has his full pension he's financially secure but he got he started to get in a little bit of trouble first of all his only hobby was golf and he lives in the Northeast where golf is not 12 months a year maybe but then he lost his wife which was really sad and all of a sudden now all of his dreams of retirement have changed so he's a solo retiree and he's not really taken the best care of himself physically and he's really having a tough time building new community outside of his golf right and that's when he came to us and we found a real pivotable turning point for him where he could go through some great self-discovery and transition yet again in his life and he went through our seven day challenge I think we'll put the link below so that you can have that and if you haven't taken the seven day retirement challenge even if you're 30 years old you should take it because there's really good stuff in there it's easy and it's free so we got him to go through the seven day challenge and start talking to us about it then he took our full your retirement game plan course and he started getting his life back on track which was really encouraging and there was some work on his part to do it but now he has a whole new outlook on his health both his physical and mental he's building tremendous great new quality communities of people and he's actually volunteering for several organizations that gives him a lot of fulfillment community and and more but he was totally unprepared for this change and maybe you are too so let's get in how to better prepare men before we do anything let's just address money because it's always the first thing on everyone's mind we don't do anything with money but I know it can't spend it you spend it my day too much sometimes I know it can create unwanted Stress and Anxiety and you know the fact is that many people underestimate their expenses and the stress that money has on their emotions as they're entering retirement yeah and the other thing that people might do and you really can't tell because the stock market is just crazy but some people or many people overestimate their investment income returns so that can put you in some emotional state too so really being better prepared financially is critical and that's not what we do here but but check that box you know so that you can live this phase with a little less stress work with your accountant or your financial planner to get a budget in place and you also you want to be able to work with them so that you can make some smart financial decisions like a good withdrawal strategy integrating with Social Security 401K maybe downsizing is something you should consider doing maybe you need to do it to cut your costs a little bit that's another whole level of stress and there's we have um search our YouTube channel for downsizing it's actually our most popular video if you're thinking about it but this is going to give you a clear Financial picture and this is so critical to a successful retirement like Jody said that just take away a lot of the stress so check the box on your financial picture and move that aside right so let's talk about some other big impact to your emotional preparedness in retirement the number one thing that we come up with the number one thing that we research the number one thing that our clients talk to us about is this idea of loss of identity and people really struggle with this you know coupled with the loss of purpose this is a big impact on your emotional preparedness well it is if your identity has always been tied into your title which a lot of people do in their office and your expense account your status in the community your status in the company if you were the CEO or if you're a doctor or a fireman or a lawyer or an accountant that's your identity and when you step away from your job that goes away and you know this happened to us and more than likely it will happen to you too it leads down a long journey of rediscovery in retirement and we'll leave a link below for the video on this topic which I think it would be really helpful now money and lost identity can have major impacts on you emotionally as you enter retirement but you also need to think about losing your community and ending up feeling socially isolated social isolation leaves many people unprepared for retirement and it's a huge health risk that again if you search our YouTube channel for social isolation and there's some great videos we put together on that you know when you walk away from your career there's a good chance that many of your key relationships won't follow you you know there are younger people they're still working they're still engaged they still have the purpose and the identity and you know they may have been situational relationships based on your employee employment you know they were your work family maybe not necessarily your close personal friends however you may bring some along with you you may you may but this loss of community catches so many people unprepared and surprised and you're gonna need to put real effort into creating a new community it does not happen on its own so let's share some tips on how to be better prepared emotionally as you transition into retirement and if you're in retirement a year two or three or five these things are going to work for you as well so the first thing you want to do is visualize your retirement and when we say that you know what does it look like what does it feel like what is your um what else what is your daily daily routine you know what habits or activities do you want to do do you want to put in your schedule and you know the big question is who is in your life yeah and who's important and positive in your life how about this where are you going to live right you know what are your dreams for what we call the five pillars of retirement what are your dreams for your physical wellness your mental Wellness your relationships your spouse partner relationship is ours good today so far so good so good and then wisdom sharing that the thing is dream a little bit and have a vision for this so that you can put some activities in place to get you to that vision and really getting to this vision is just yourself those basic questions that we just went through the next thing you'll want to do is to make a plan you know keep it simple at first include your financial goals and your lifestyle goals and definitely your health and wellness goals yeah the Five Pillars the vision the idea is to get to the vision you want to put a plan in place so that you get some things done and your plan is not one and done think about it retirement can last 30 years or more you don't spend 10 minutes putting a plan together right for a 30-year time in your life don't skip this part or you really could find yourself wandering a bit like a ruddlest ship lost at sea how's that that was very interesting yeah ship lost at sea you don't want to be that so after you visualize and make a plan it's critically important to stay connected right stay connected to your your family to your friends and to those past work colleagues that will come with you you know um we talked about the colleagues that stay behind and lose interest in your relationship it's really behooven upon us to go back to those work friends and reconnect and we've done that and also we've put effort into finding new friends and new relationships you need to dedicate time to this you do and you have to be intentional about it you know I just saw a really interesting quote a couple weeks ago in the paper by Jane Fonda about being intentional about your friendships it was very interesting you know being emotionally prepared for retirement includes this big one as well you have to address your fears what fears are you having and how are you going to tackle them one at a time head on you might even want to talk to a therapist you know and you also need a good we talk about this all the time because we don't do financial planning you need a good financial planner or wealth manager and you want to develop clear strategies to address all of these fears the big the first thing is to figure out what the fears are and then deal with them one at a time right and the final thing you can do is to practice self-care taking good care of your physical and emotional health exercising regularly eating healthy finding stress reducing activities to take care of you is important to be emotionally prepared you know we all spend a good portion of Our Lives thinking about retirement probably from when we leave college or high school and enter our career all we do is we save money we yearn for the freedom we get excited about what could be in store for us but many people don't prepare as much as they should for this transition to make it smooth fun exciting and fulfilling spend the time getting yourself prepared now if you like this video and we hope that you did this next one what's your identity once you retire we're going to walk you through the three phases of identity when you retire letting go of the old identity the neutral zone and finally putting some effort into discovering what your new identity is going to be and then we're going to give you three steps you can Implement right away so watch this next video
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Retirement Tips | 2 Ways to Earn Interest and Delay Taxes
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
So, what are the 2 ways to earn
interest and delay taxes? Great question. I'm glad you're here. My
name is Stan The Annuity Man, I'm America's Annuity Agent, licensed in all
50 states. This is part of my retirement tips series on the Stan The Annuity Man
YouTube channel. Which I hope you can hit subscribe or
hit the bell. I think the bell alerts you to when these come out.
By the
way, spoiler alert: They come out every single day, Monday
through Friday. So, we're just getting started. I want to educate the public on
all things annuity. But let's talk about this. Let's get into
the details, let's do facts. Not fiction, not sales pitches. But only
after this music. So, what are the 2 ways to earn
interest and delay taxes? You know, I always say an annuity for what it will
do, not what it might do. Not the unicorns
chasing the butterflies, the hypothetical theoretical, back-tested, hopeful-agent scenario that you see and hear. And you go, "Wow,
that sounds too good to be true." It is too good to be true.
You know, annuities are contracts. You have to understand that. So, what are the
2 ways to earn interest and delay taxes in the annuity world that you need
to be aware of? I've written books on multi-year guarantee annuity and fixed
index annuity. Go to theannuityman.com. Sign up there
and I'll ship the books for free and you'll just get them in the mail. No
obligation, no cost.
So, let's talk about multi-year guarantee
annuities. Multi-year guarantee annuity is a fixed rate annuity.
It's the annuity industry version of a CD.
So, for instance you can get currently at the time of this taping, you can get a
3-year multi-year guarantee annuity. In other
words, you're locking in that interest for 3 years.
In this case, most states have an interest rate around 3%.
So, for those 3 years, you're going to get 3 percent and it's going to
compound tax-deferred. Eventually when you pull
money out of an annuity, any type of an annuity,
you're going to pay taxes at ordinary income rate levels. And you just have to
know that. I mean anyone that says to you that they can get you an annuity
that's tax-free income that they can't. That's
the IRS doesn't allow it. But what the IRS does allow (and this is pretty cool)
is they allow you to defer taxes. And a lot of people out there are
in very, very high tax brackets. They don't want to lose a penny.
But they
also want to earn interest. Multi-year guarantee annuity is a very
simplistic way, a fixed rate annuity way, you know exactly
what it's going to do, what it will do. Not what it might do. There's no might do. There's
will do. Will do with multi-year guarantee annuity is that
interest that you're going to get paid and you can actually peel.
Most of them allow you to peel it off and and put it into a bank account if
you want to.
But in this case, you're looking for a
way to delay taxes and put it off and tax defer
and get interest. Multi-year guarantee annuity is a great
way to go about it. And you can ladder them. You can buy like
a 3-year, 4-year, 5-year or 7-year. They can go as far out as 10
years or more. But in my opinion, you always try to keep the maturity
short with multi-year guarantee annuities with the hope
that interest rates go up. Okay, the other way to earn interest and delay taxes
is with an indexed annuity, fixed indexed annuity. Back in the day,
they were called equity indexed annuities. But now they're called fixed
index annuities. They were designed in 1995 to compete
with CD returns which is exactly what they do.
They are not securities. They are
life insurance products that are issued at the state
level. So, people that want to push them as
market return products, they're really not. They're cd products. Now, some years
can be a little bit better than others. But the blended return since 1995
has been in that cd level. The good news about index annuities is
that when the interest is locked in, in other words, whatever gain on that
call option that you've done… And by the way,
I've done a series on indexed annuities you might want to check out that
explains caps and spreads and participation rates
and all that stuff that's part of the series I did on indexed annuities.
So,
whatever that locks in at, I mean, it never goes below that. So, you just stair
step up hopefully that that interest locks in. And if the
markets go in the toilet, you don't lose a penny. Now, the good news
when used like multi-year guarantee annuities and indexed annuities,
when using a non-IRA account, then that growth
grows tax-deferred and compounds. Which is a good thing.
Because there's a lot of you out there that don't want any more taxes. You're
at a high tax bracket where you just want to protect the principal
and just have interest hit and defer the taxes down the road. In other
words hockey analogy, is kick the puck down the ice a
little bit. Eventually when you pull it out, you will have to pay taxes on it but
with these 2 products –indexed annuities and multi-year
guarantee annuities. You can earn interest
and delay taxes. Alright, let's stay on the subject on indexed annuities a
little bit because in addition, if you just bought an
indexed annuity and said, "Okay, Stan.
I don't need income or i don't need any
i don't need any whistles or barrels. I just want
that index call option return, whatever that is to be credited to the account. I
don't want to pay taxes on it. I want to delay it but I want that interest credit."
Fine. There's no annual fees. It's very… You know, we'll shop all carriers for the
best cap spreads, participation rates, strategies involved. We need to talk
about that go to theannuityman.com and sign up there. Or if you
want to discuss it, you can just hit the comments down here
on my YouTube channel.
I do check that and we will answer you as well.
But I wanted to talk to you about indexed annuities with
income writers. Now, I've written a book on income riders that I'll send with the
other ones. The fixed indexed annuity one and the
multi-year guarantee annuity book as well.
But at the time of application, you can attach what's called an income rider to
a fixed annuity.
What an income rider is is an attached benefit that grows
separately. So, if you draw a line down the middle of a blank sheet of paper,
index option stuff here income rider calculation is here. And you can use this
side to calculate a future income payment. Now, the good news is
typically that has an interest rate attachment that it grows
by as well and it's not true interest because you
can only use this to calculate your first income payment.
So, it's kind of a phantom account monopoly money. But it does have a growth
percentage with most of them that it grows by.
But it grows tax
deferred. So, again, if you're looking for interest to
grow and to delay taxes, you can have a fixed indexed annuity
standalone without the income rider. Or you can have a fixed index annuity
with an income rider. Either way, both sides of that calculation… Remember
i did that the accumulation value and then the income rider.
Both sides of that calculation and there are separate calculations
are going to grow tax-deferred. Which is a good thing.
So, once again, you need to talk with me and go to theannuityman.com. Set of time
and let's talk about what you're trying to achieve.
It really comes down to 2 questions you need to ask and answer. Number 1,
what do you want the money to contractually do and number 2
when do you want those contractual guarantees to start?
In this case, "Hey, Stan. I want interest. I want to delay taxes."
Then we need to go shop MYGAs, we need to go shop index annuities for the best
contractual guarantees for your specific situation.
Hey, I've done a
series of these retirement tips video. I encourage you to go check them all out.
You can go to the playlist right below me and you can see the whole series and
look at them one by one to see which one applies to
you. Remember this with multi-year guarantee annuities and fixed
indexed annuities. You can use our proprietary calculators at theannuityman.com to run the quotes yourself. We have a
live feed of the best fixed rates for your specific state. You just filter by
your state of residence and the duration that you're looking at.
24/7, 365 you can shop that at your leisure.
Let me know if you're interested
we can coordinate the paperwork. And with index annuities, a little bit
more of a complex product. But with both products, we need to talk one-on-one me
and you. You and The Annuity Man, America's Annuity Agent.
The number 1 agent in the country. I will shoot it straight if you haven't
caught that from me by now. It's going to be a
brutally factual conversation. I'm going to put your interest first
from a fiduciary standpoint. That's the way it should be with all
conversations and i will tell you if annuity does not fit.
I promise to do that. Hit the subscribe button. I'll see you
on the next Stan The Annuity Man video. you.
Single Retirement (7 Tips to Ward off Loneliness)
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
there's 10 000 people turn in 65 every day and one half of this population is reaching this age on their own so you're not alone in this phase you need to know that you aren't alone but retiring solo does increase your risk of actually being lonely which can have detrimental impact on your health today we're going to talk about retiring alone or the new buzzword of solo retirement so if you're watching this and you say well that doesn't apply to me and you're a woman stay tuned the reason i say that is unfortunately seven out of ten or seventy percent of baby boomer aged women actually outlive their husbands what are you gonna do with that why are you laughing what are you gonna do without me i don't know what i'll do with that party anyway there's 10 000 people turning 65 every day and one half of this population is reaching this age on their own so you're not alone in this phase you need to know that you aren't alone but retiring solo does increase your risk of actually being lonely which can have detrimental impact on your health so this idea of emotional loneliness you know that people over 65 who suffer from that they have an 18 increase in their mortality rates which is scary so today we'll give you seven strategies to help ward off loneliness and overcome isolation to live a more fulfilling life as a solo retiree so here's the first strategy and this is really important overcoming your financial insecurities now if you are a single woman now or a single person and you're retiring and you don't really have a handle on your finances that's a problem and you're going to be stuck and stifled and not be able to move forward so you need to hire a financial planner and understand your finances and frankly if you're a couple watching this and one of the two of you really gets finances well and the other one doesn't that's not a good place to be no if you're listening to this both of you should pay attention and share the financial information as well as the financial burdens now because ultimately if you listen to that first statistic if you're a woman 70 of us will end up as a solo retiree outliving our partner that's just the medical history that's just the facts you know there are friends down the street who purchased the house from this elderly couple and unfortunately her husband passed away and she decided she wanted to downsize she went to sell the house they got all the way down the road to the closing right and realized he had never changed the title of the house so it took another three months to close and it's just because she had no idea they weren't really sharing the information so it is really important yep so get your finances in order we're not financial planners but definitely find one that was strategy number one strategy number two create a small support group of peers like mark said you're not alone there are many other people in the same place and you want to be able to share your struggles and successes with them yeah because it's it's tough to be alone and it's tough to really be alone but if you can be alone with another person who's alone then you're not alone anymore right that makes sense right kind of yeah good theory i mean you could do weekly coffee you know pick up a class or do some exercise or even just take a long walk it's important to make sure that you connect and have a group of peers yeah relationships are key and having a support group really helps so strategy three is along the lines of that but we're really suggesting that every day you talk to someone on the phone and person whatever it might be make sure you have a conversation with another human being every single day and it might make sense to make a list of people that you can call absolutely makes sense you know friends and family and neighbors you know and never feel like you're imposing and like mark said don't let a day go by that you're not involved in a conversation now it's always better in person because it feels better but if you can't be in person bad weather you know covet kept us all locked up a little bit at least call but be there and frankly what's helpful is not only for you to reach out to get some communication help but be the one supporting other people that's a great way to start having some conversations in a peer group that you're leading it so connect with someone every day strategy number four have a daily plan and a schedule something that adds structure to your life so that you're not always wondering what am i going to do today what's the morning going to be like how am i going to make it through the afternoon really set the tone from the day in the morning now good habits and routines are important and i know a lot of people that like to get up they've worked their whole life and they're retired now and they want to get up and just have a cup of coffee and watch tv watch a little more tv have some more coffee but before you know it it's 11 o'clock and you haven't talked to anybody and you really haven't done much so setting some schedule and some time some self-care time with friends and frankly limit tv i mean i you know watching tv every morning from 7 a.m till noon it's not healthy no but you could even schedule some time to learn to pick up a class to go to the library to read to children to find things in your community that you could do to be helpful and that makes you not alone and isolated so here's the fifth strategy and you've heard this from us so many times and it just makes so much sense this one does come up in a lot of our videos because it helps in so many areas of your life the fifth strategy is exercise every single day move your body move it get up and move it do you know that if you walk 20 minutes a day every day for 20 minutes you can add five years to your life so what about walking with a friend and 20 minutes that's easy walk for 30 minutes with someone and have a chat and catch up so you're now you're exercising and you're communicating with someone you know as we all age movement does become harder but you need to be as active as you can and just know that you can do 20 minutes a day so we hope you do that take it seriously so now let's talk about strategy number six volunteering you know there's so many benefits with volunteering and it's become such a huge part of our retirement transformation program and you know we do bring it up a lot volunteering sharing your wisdom creating your community you know providing yourself with fulfillment sharing and searching your passions we bring that up a lot but it does help with this loneliness and the potential for isolation you know you instantly can find a community of people when you start to volunteer and it could be as basic as working at the local food bank or the library or something but you're going to find dozens of other people in the same position you are in looking for communities so it's really important to give this a shot absolutely strategy number seven would be to try new things learn technology mark and i did a talk one day and there was a bunch of people in the room and one lady raised her hand talking because we were bringing up this strategy about learning technology her name was ava she raised her hand and she talked about the world that technology opened to her allowing her to connect with her family over in italy and how they structured it how she learned face time how she learned zoom how she learned to be able to work all of the technology in her house to really ward off that loneliness and you know how she did it remember her story she got one of her grandchildren to sit with her and work on the iphone with her to learn how to do face time she couldn't believe in her mind that it could happen and then in the end how easy it was for her right so but it really made her feel connected and less lonely and i think utilizing technology in that way is really smart and learn from a younger person it's nice in a community to have people your own age and people younger so and while you're learning technology look for online courses that are out there look for some online learning that can engage you i did that when i went to the university of pennsylvania and i took an entire online online course and i got to zoom in with other kids college kids college kids and i was the old lady but that was great and i made a lot of great contacts doing that no a big thing to remember is you're not alone you can ward off this loneliness but you need to be proactive work on the seven strategies we just mentioned above and listen if you enjoy this please share with your friends and also please subscribe by clicking the subscribe button below don't forget to join our free facebook community the link is down below and it's very interactive where jody and i go live each week you get to ask questions and we can communicate with each other and thanks for listening and we look forward to seeing you again
CalPERS Quick Tip | Choosing a Retirement Date
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Members often ask, “When’s the best time
to retire?” While there’s no one-size-fits-all answer
to that question, there are a few things you should consider when choosing a retirement
date. Choosing a retirement date is an important
decision, and can depend upon a variety of factors. One approach is to determine how much money
you’ll need in retirement, and work backward from there – taking into account the three
factors that impact your pension: your service credit, benefit factor, and final compensation. Now, Service Credit is your total time spent
on the job with CalPERS-covered employers.
Of course, the longer you work, the more service
credit you’ll earn. But because of the way it’s calculated,
10 months of full-time employment during a fiscal year amounts to one full year of service
credit earned. So, if you work full-time, starting in July,
you’ll earn one year of service credit by the following April, and won’t earn any
more in May or June. Something to consider if you’re aiming at
a bump in service credit prior to retirement. Depending on your employer, you may have the
option to convert your unused sick leave to service credit when you retire. (In fact, 2,000 hours of sick leave equals
one year of service credit). Vacation and other leave types, however, can’t
be converted; so, you might decide to use those hours while you’re still employed,
earning more service credit as you delay retirement. We recommend contacting your employer’s
personnel office for specifics on how your unused leave time is handled.
Now let’s consider your benefit factor,
which is the percentage of pay you’re entitled to for each year of service credit you’ve
earned. It’s based on the retirement formula contracted
by your employer, and your age at retirement. Once you’re eligible to retire, your benefit
factor increases with each quarter year of age – that is, four times per year based
on your birthday. For example, if you were born on February
first, then your benefit factor would increase on that day, then again on May first, again
on August first, and then again on November first. So, retiring on or after your next birthday
quarter could mean a greater benefit factor, resulting in a higher pension amount in retirement. The third factor impacting your pension is
final compensation, which is an average of your highest monthly pay rate. Your final compensation period may cover your
last 12 or 36-months of employment, depending on your start date and your employer’s contract
provisions. To maximize your final compensation amount,
consider planning your retirement date around a promotion or any other event resulting in
a pay raise.
Check out the retirement estimate calculator
in “My CalPERS” to explore how changes to your service credit, benefit factor, and
final compensation amounts might affect your pension. Which should help in choosing a retirement
date that works best for you. To learn more about planning for retirement,
visit calpers.ca.gov/education..
Retirement Financial Advice: Money Lessons You Need to Know in Retirement
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
once your earning years are over and you've built Your Nest Egg for retirement you need to be smart about so many decisions now we're not financial planners and we make that very clear with everyone but we are retired and we do spend time making sure we're doing the right thing financially with our own money because oh bad financial habits and lack of knowledge can actually ruin your we have we have a couple they're good friends and he felt like he knew what to do with the marketplace with his Investments and he clearly didn't because he had his money in stocks when it when they went down and he pulled it out and put it into cash when it went up so for eight years he was on the wrong side of every single one of the stock market moves and because of that he lost a significant amount of his retirement assets and that's really difficult and today we find that they're struggling many of their dreams have vanished and they both actually had to go back to work now there's nothing wrong with work but it's just not what they had planned so we can't emphasize enough right out of the shoot having a financial planner is so important because it gives you a plan it gives you a vision it gives you an idea but it also does this which I think is most important it takes the emotion out of the marketplace which can get the best of you think you know what's going to happen at a new presidential election and frankly you don't that's right so let the experts help you with that because we don't want to have what happened to them happen to you today we want to share some practical ideas that may maintain or even improve your financial situation and again the number one lesson today is don't manage your money without a financial planner and we don't mean a stock broker what we mean is someone who has a fiduciary responsibility to make recommendations that are are really good for you not good for them and they talk to you about the strategies and you might say well sure they do but they also talk to you about withdrawal strategies right how much should you be withdrawing each year in order to preserve your nest day how much do you need each month and then they pull it from the smartest place it needs to come from using tools like tax loss harvesting you can't just take money out of a stock because you want to because you're going to have capital gains right right and you know we're not a big fan of multiple planners but we'll leave that part up to you so the first one is make sure you get a financial planner somebody you're comfortable with the second is keep your emergency fund intact kind of no matter what you need to have emergency savings that doesn't disappear when you retire it's more important than ever to have accessible cash set aside for any type of emergency so two three four months of expenses in a cash account that way your financial planner can invest the rest of your money and always always be thinking about you're going to need more money in 60 days so what can they put you into short term so you want to have this cash account so you can cover any kind of emergency expenses or just if you want to leave stuff in the market a little bit longer you've got some cash or even if you have any big purchases that are coming down the pipe that's true making sure your financial planner knows that you're ready for that so the second thing is the emergency fund now here's another um here's another way that you can get into trouble or you're also a way to dig yourself out of trouble you want to take a look at all your luxuries and make sure that they haven't become a burden because frankly that happened to us we both had jobs we were both working gosh 15 years ago we bought our first boat and we bought four boats over the next 15 years but we could afford it because we both were working we both had money and it was our floating vacation home so to speak I I call the last one that we had a lifestyle about because we went away on that one a lot it was a little bit larger but once we were tired all of a sudden it was like well we don't really want to go out on it the weather isn't good you know we'd rather stay home we'd rather be with for the price of diesel or the price of gas you know the price of storage the price of hauling the price you know all of those things have to be factored in when you have a fixed income yeah and we didn't have the same earning capacity to kind of keep up with the luxury so we stopped using it and then it became a burden like why aren't we using it and it was a year ago now that we decided to sell it and it's sold within a month because we kept really good care of it but the thing is if you have luxuries it's really important to take a look at them and say that's something we're really getting a lot of satisfaction of because it's going to cost you money well there are also luxuries that you have and then there's luxuries you provide for others right so we have six children and we were providing cell phones homeowners insurance auto insurance airline tickets for them and their significant others are partners and you know that was all fine when we were dual income but as they aged and as we aged and as we came into a fixed income place we needed to start peeling some away and giving those responsibilities back to them and they can afford it they all have great jobs and if they're ever stopped but it was a luxury it was to be able to do that for him but but frankly it also gave us a lot of satisfaction a lot of fulfillment to be able to help them right so it was hard for us to Pivot to in our mind take these things away from the kids but they you know at some point they've got to be to stand on their own two feet so and we needed to reduce the support so we sold the boat we paid off two car loans we came to an agreement with the kids and slowly weaning them off of some of these things we've always paid for you know because they they can't afford it and you know they they they're fine with it right they even they say it's kind of silly that you're paying my cell phone bills so it's it's another cord to cut that um you know it's hard to do but we want to encourage you to do it yeah so that was the third one the fourth one is you know really trying to figure out how to live a little below your means you know and that's new for us for our entire career as our income went up our living style and our cost of living and everything we did went up with it you know hard work learning and growing you know we were climbing the corporate ladder Mark was building his business you know it was easy to have your lifestyle kind of follow you yeah and you know we both come from humble beginnings and we improved our lifestyle as we went up but then then it's sort of when when you retire you have to think okay well my income's not going to keep going up as a matter of fact it's going to go down so how do we want to live what are some things we can do to live within our means and even underneath our means so and there were a couple things we had to agree to right so you know I call it shopping for sport right so there's there's no more you're better at that than pickleball kind of just opening up and saying oh you know look what just came into my feed I'll take a look at those earrings or that bracelet or those dresses or those sunglasses I think about it I kind of have a little bit of a sunglass addiction so so you know there was you know we agreed that we would do no more shopping for sport yeah it was one of Instagram Amazon it's so easy to spend money today and you get hooked on this new game you don't even leave your house you don't even leave your house you know keeping up with the Joneses that's not necessary anymore right you know who are the Joneses anyway today it's other retirees we're not taking on any more debt we've paid down most of our debt you know again we have a financial planner and you know we have a more modest wardrobe I mean our fancy or fanciest clothes are for our YouTube channel right and we're eating out less we made the agreement that for health and economic reasons we would eat out less so leave living below your means is something you can control and it's something that you can put some time and intention into so another really important thing to get to know is everything about social security and we we don't know that much about it so our financial planner and our accountant has said you don't need to take it yet and that's kind of all we're thinking about at this point they'll let us know when it makes sense and when it makes sense it'll make sense but you have to really understand or have someone coaching you on what's important because everyone's financial situation is different yeah and I really believe the more you know about it the better off you'll be even if you do your own investigation you know Social Security was not meant to be your primary source of income as you age in America it was meant to be a supplemental income so you have to understand the amounts you can get at what future ages and can you still work and does your state tax it or not you know there's a lot of rules around Social Security and my recommendation would be just get to know your rules in your state around your age just for the knowledge I don't know but I think there's a certain amount of uh you can't earn a certain amount of money and still get Social Security I don't really know but you have to know that's I guess that's the point you really need to know everything about social security check with your account and your financial plan right here's a big one for us and it should be for you too I think you know money will never buy you happiness and we've heard that like our whole lives and so we actually did a little bit of research and you know what really defines happiness for us and we came across this quote and part of it is from Warren Buffett but it says you know we want to do what we want when we want with whom we want for as long as we want and that to us will Define our happiness you know now some of what you do will require money but it's not all about buying stuff and things you know most of what we do for happiness now is experiences I I would think that for us and tell me if you agree but the something we just spent money on is giving us more happiness now for a very low value than anything else I remember paying forever you know what it is your pickleball racket pickleball so we joined the YMCA uh for like eighty dollars a month for the family we bought a pickleball racket for 100 bucks and six balls for eighteen dollars and we're getting like five or six hours of use out of that each week yeah that's happiness that really is making us happy it's not a new car it's not a new set of golf clubs right it's not what we're used to thinking that was um would create happiness and we're also looking at vacations differently right now that we have the full seven days to ourselves many vacations to visit friends or family you know they become Tuesday Wednesday Thursday versus the high traffic weekend Friday Saturday Sunday so many vacations Beach days lunch dates you know we just renting a boat for a day we're doing that with company comes we're renting pontoon boats now for the day to take companies out it's three hundred dollars for a day which in one respect sounds like a lot but it's a lot cheaper than owning a boat right that's true so we still get out on the water now look you clearly need money in retirement we all can agree on that but how much do you need and how much is enough you've got to figure out how much you have how much you can pull out each month and how long it's going to last those are key questions you need to work through with your planner and your account yep and paying attention to some of these things that we just shared will help guide you and keep you out of trouble now we hope you enjoyed this video and if you did you're going to like this next one called the truth about early retirement what they don't tell you it's one of our most popular videos and you know we're not getting any younger so why steal these fabulous years from ourselves our family and our friends watch this one next
CalPERS Quick Tip | Choosing a Retirement Date
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
Members often ask, “When’s the best time
to retire?” While there’s no one-size-fits-all answer
to that question, there are a few things you should consider when choosing a retirement
date. Choosing a retirement date is an important
decision, and can depend upon a variety of factors. One approach is to determine how much money
you’ll need in retirement, and work backward from there – taking into account the three
factors that impact your pension: your service credit, benefit factor, and final compensation. Now, Service Credit is your total time spent
on the job with CalPERS-covered employers. Of course, the longer you work, the more service
credit you’ll earn. But because of the way it’s calculated,
10 months of full-time employment during a fiscal year amounts to one full year of service
credit earned. So, if you work full-time, starting in July,
you’ll earn one year of service credit by the following April, and won’t earn any
more in May or June. Something to consider if you’re aiming at
a bump in service credit prior to retirement.
Depending on your employer, you may have the
option to convert your unused sick leave to service credit when you retire. (In fact, 2,000 hours of sick leave equals
one year of service credit). Vacation and other leave types, however, can’t
be converted; so, you might decide to use those hours while you’re still employed,
earning more service credit as you delay retirement. We recommend contacting your employer’s
personnel office for specifics on how your unused leave time is handled. Now let’s consider your benefit factor,
which is the percentage of pay you’re entitled to for each year of service credit you’ve
earned. It’s based on the retirement formula contracted
by your employer, and your age at retirement. Once you’re eligible to retire, your benefit
factor increases with each quarter year of age – that is, four times per year based
on your birthday. For example, if you were born on February
first, then your benefit factor would increase on that day, then again on May first, again
on August first, and then again on November first. So, retiring on or after your next birthday
quarter could mean a greater benefit factor, resulting in a higher pension amount in retirement.
The third factor impacting your pension is
final compensation, which is an average of your highest monthly pay rate. Your final compensation period may cover your
last 12 or 36-months of employment, depending on your start date and your employer’s contract
provisions. To maximize your final compensation amount,
consider planning your retirement date around a promotion or any other event resulting in
a pay raise. Check out the retirement estimate calculator
in “My CalPERS” to explore how changes to your service credit, benefit factor, and
final compensation amounts might affect your pension. Which should help in choosing a retirement
date that works best for you.
To learn more about planning for retirement,
visit calpers.ca.gov/education..
Retirement Tips | 2 Ways to Earn Interest and Delay Taxes
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
So, what are the 2 ways to earn
interest and delay taxes? Great question. I'm glad you're here. My
name is Stan The Annuity Man, I'm America's Annuity Agent, licensed in all
50 states. This is part of my retirement tips series on the Stan The Annuity Man
YouTube channel. Which I hope you can hit subscribe or
hit the bell. I think the bell alerts you to when these come out.
By the
way, spoiler alert: They come out every single day, Monday
through Friday. So, we're just getting started. I want to educate the public on
all things annuity. But let's talk about this. Let's get into
the details, let's do facts. Not fiction, not sales pitches. But only
after this music. So, what are the 2 ways to earn
interest and delay taxes? You know, I always say an annuity for what it will
do, not what it might do. Not the unicorns
chasing the butterflies, the hypothetical theoretical, back-tested, hopeful-agent scenario that you see and hear. And you go, "Wow,
that sounds too good to be true." It is too good to be true.
You know, annuities are contracts. You have to understand that. So, what are the
2 ways to earn interest and delay taxes in the annuity world that you need
to be aware of? I've written books on multi-year guarantee annuity and fixed
index annuity. Go to theannuityman.com. Sign up there
and I'll ship the books for free and you'll just get them in the mail.
No
obligation, no cost. So, let's talk about multi-year guarantee
annuities. Multi-year guarantee annuity is a fixed rate annuity.
It's the annuity industry version of a CD.
So, for instance you can get currently at the time of this taping, you can get a
3-year multi-year guarantee annuity. In other
words, you're locking in that interest for 3 years.
In this case, most states have an interest rate around 3%.
So, for those 3 years, you're going to get 3 percent and it's going to
compound tax-deferred. Eventually when you pull
money out of an annuity, any type of an annuity,
you're going to pay taxes at ordinary income rate levels.
And you just have to
know that. I mean anyone that says to you that they can get you an annuity
that's tax-free income that they can't. That's
the IRS doesn't allow it. But what the IRS does allow (and this is pretty cool)
is they allow you to defer taxes. And a lot of people out there are
in very, very high tax brackets. They don't want to lose a penny. But they
also want to earn interest. Multi-year guarantee annuity is a very
simplistic way, a fixed rate annuity way, you know exactly
what it's going to do, what it will do.
Not what it might do. There's no might do. There's
will do. Will do with multi-year guarantee annuity is that
interest that you're going to get paid and you can actually peel.
Most of them allow you to peel it off and and put it into a bank account if
you want to. But in this case, you're looking for a
way to delay taxes and put it off and tax defer
and get interest. Multi-year guarantee annuity is a great
way to go about it. And you can ladder them. You can buy like
a 3-year, 4-year, 5-year or 7-year. They can go as far out as 10
years or more. But in my opinion, you always try to keep the maturity
short with multi-year guarantee annuities with the hope
that interest rates go up. Okay, the other way to earn interest and delay taxes
is with an indexed annuity, fixed indexed annuity.
Back in the day,
they were called equity indexed annuities. But now they're called fixed
index annuities. They were designed in 1995 to compete
with CD returns which is exactly what they do. They are not securities. They are
life insurance products that are issued at the state
level. So, people that want to push them as
market return products, they're really not. They're cd products. Now, some years
can be a little bit better than others.
But the blended return since 1995
has been in that cd level. The good news about index annuities is
that when the interest is locked in, in other words, whatever gain on that
call option that you've done… And by the way,
I've done a series on indexed annuities you might want to check out that
explains caps and spreads and participation rates
and all that stuff that's part of the series I did on indexed annuities. So,
whatever that locks in at, I mean, it never goes below that. So, you just stair
step up hopefully that that interest locks in. And if the
markets go in the toilet, you don't lose a penny. Now, the good news
when used like multi-year guarantee annuities and indexed annuities,
when using a non-IRA account, then that growth
grows tax-deferred and compounds. Which is a good thing.
Because there's a lot of you out there that don't want any more taxes.
You're
at a high tax bracket where you just want to protect the principal
and just have interest hit and defer the taxes down the road. In other
words hockey analogy, is kick the puck down the ice a
little bit. Eventually when you pull it out, you will have to pay taxes on it but
with these 2 products –indexed annuities and multi-year
guarantee annuities. You can earn interest
and delay taxes. Alright, let's stay on the subject on indexed annuities a
little bit because in addition, if you just bought an
indexed annuity and said, "Okay, Stan. I don't need income or i don't need any
i don't need any whistles or barrels. I just want
that index call option return, whatever that is to be credited to the account. I
don't want to pay taxes on it. I want to delay it but I want that interest credit."
Fine. There's no annual fees. It's very… You know, we'll shop all carriers for the
best cap spreads, participation rates, strategies involved. We need to talk
about that go to theannuityman.com and sign up there.
Or if you
want to discuss it, you can just hit the comments down here
on my YouTube channel. I do check that and we will answer you as well.
But I wanted to talk to you about indexed annuities with
income writers. Now, I've written a book on income riders that I'll send with the
other ones. The fixed indexed annuity one and the
multi-year guarantee annuity book as well.
But at the time of application, you can attach what's called an income rider to
a fixed annuity. What an income rider is is an attached benefit that grows
separately. So, if you draw a line down the middle of a blank sheet of paper,
index option stuff here income rider calculation is here. And you can use this
side to calculate a future income payment. Now, the good news is
typically that has an interest rate attachment that it grows
by as well and it's not true interest because you
can only use this to calculate your first income payment.
So, it's kind of a phantom account monopoly money.
But it does have a growth
percentage with most of them that it grows by. But it grows tax
deferred. So, again, if you're looking for interest to
grow and to delay taxes, you can have a fixed indexed annuity
standalone without the income rider. Or you can have a fixed index annuity
with an income rider. Either way, both sides of that calculation… Remember
i did that the accumulation value and then the income rider.
Both sides of that calculation and there are separate calculations
are going to grow tax-deferred.
Which is a good thing.
So, once again, you need to talk with me and go to theannuityman.com. Set of time
and let's talk about what you're trying to achieve.
It really comes down to 2 questions you need to ask and answer. Number 1,
what do you want the money to contractually do and number 2
when do you want those contractual guarantees to start?
In this case, "Hey, Stan. I want interest. I want to delay taxes."
Then we need to go shop MYGAs, we need to go shop index annuities for the best
contractual guarantees for your specific situation.
Hey, I've done a
series of these retirement tips video. I encourage you to go check them all out.
You can go to the playlist right below me and you can see the whole series and
look at them one by one to see which one applies to
you. Remember this with multi-year guarantee annuities and fixed
indexed annuities. You can use our proprietary calculators at theannuityman.com to run the quotes yourself. We have a
live feed of the best fixed rates for your specific state. You just filter by
your state of residence and the duration that you're looking at.
24/7, 365 you can shop that at your leisure. Let me know if you're interested
we can coordinate the paperwork. And with index annuities, a little bit
more of a complex product.
But with both products, we need to talk one-on-one me
and you. You and The Annuity Man, America's Annuity Agent.
The number 1 agent in the country. I will shoot it straight if you haven't
caught that from me by now. It's going to be a
brutally factual conversation. I'm going to put your interest first
from a fiduciary standpoint. That's the way it should be with all
conversations and i will tell you if annuity does not fit.
I promise to do that. Hit the subscribe button. I'll see you
on the next Stan The Annuity Man video. you.
Why is Everyone So Tired in Retirement?
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
you know after slugging it out for over 30 years in Corporate America I was exhausted when retirement arrived I really needed a break and I needed a break too so we spent the first few months in retirement really doing nothing nothing meaningful right well hanging around kind of lazy mornings turning into lazy days into lazy weeks and maybe even lazy months but we knew something had to change or we were doomed we wanted our dreams of a fulfilling retirement to become a reality so we had to make some changes so today we're going to share with you some strategies that you can try so that you're full of energy every single day and take on anything that comes your way but before we go further we'd like to introduce ourselves my name is Mark Rollins and I'm Jody Rollins and we started retirement transform not only for us but for all of you and the other 10 000 people turning 65 every day now we don't focus on anything Financial none of the aspects financially or retirement but we focus on lifestyle Health relationships and more and listen if you're new here please hit the Subscribe button and also the notification button so you'll get notified when our videos come out so let's jump into all the things that tend to make you and me tired especially in retirement okay the first thing that gets you tired too much downtime and that might just be for instance watching too much TV and I don't know if you know this or not but the average number of hours people over the age of 65 watch TV each week is 38 hours a week that's like Couch Potato syndrome it is and you have to be careful with that because it does make you tired nothing wrong with watching a Netflix series or some TV but you can't do it six or eight hours a day yeah lack of movement will really keep your body and your mind tired you have to find ways to move your body even 20 minutes a day just getting out walk 10 minutes One Direction and 10 minutes back and you will feel very different what happens if you walk seven minutes one way and four minutes back and then you have to do 10 jumping jacks oh and then all right because you're going to be late yeah but there's a scientific study multiple scientific studies that say moving 20 minutes a day can extend your life by five years who wouldn't want that exactly exactly so the first one is too much downtime the second one is poor nutrition and we know you've heard this before but please just make believe you're hearing it for the first time poor food choices fast food sweets and too much eating out or even eating late is bad for you being mindful of what your comfort food is and how much you go to it is also something to be aware of yeah I think that you know for us we're getting a lot better with nutrition and really because we're starting to really pay attention to what our ordering tells us about sleep and how we feel but also just our body when we put certain foods in our body we really pay attention to how we feel and having wine or drinks and a late dinner at night we both know we're going to have an awful night's sleep but you didn't bite on comfort food comfort food I you know I need to stay away from comfort food fried chicken Oreo cookies chocolate chip cookies that's the stuff that my mother always made for me and it was Comfort I I need to stay away from that yeah and I know I know it's hard to in retirement to stay away from wine and drinks maybe that's me but um you just be mindful of it and to give your yourself and your body a break from it is really a good feeling yeah and all of what we just talked about leads into the third uh item to make you tired which is getting poor sleep and honestly we need to do an entire video on sleep because I just looked and we really haven't spent enough time on this and the importance of getting a good night's sleep most people need seven to eight hours of good sleep in order to feel good and have high energy absolutely and you know the eating late too much alcohol just doesn't help that you a good portion of our lives in Corporate America and you as an entrepreneur entertaining clients and living that way eating late entertaining clients some wine with dinner and we knew it wasn't sustainable so what makes us think in retirement that that would be sustainable well it's funny because our last five years of work really we were probably working harder than ever before we were entertaining harder than ever before that was our normal and when we got to retirement that normal didn't work for us it really didn't so you just have to be able and to think about making some life changes and it's not easy but it's doable so we have sleep as the third one good sleep quality sleep not just time in bed right the fourth one is really lack of routines during your career you had your routines wired I know you did you had a morning routine during your career and then you were off to work and your day was planned a lot of time your schedule was filled before you even got into the office but many people enter retirement and the last thing they want to do is have a routine I know and you know we hear that a lot but we also hear from our clients when they start with a routine even a basic routine going to bed at the same time getting up at the same time and it doesn't have to be 5 a.m like me I mean you don't get up at five minutes you've got your own routine I don't sleep I do but you have a routine once they start plugging in a routine getting up at the same time every day plugging in a little bit of uh walking for 20 minutes and exercise maybe on top of that doing some meditation with a app like headspace mindfulness that really starts to kick in their energy level and makes them feel better in their retirement phase and you know I really resisted this idea of setting a regular time to go to sleep and a time to wake up in retirement and I don't know if you remember I pushed back pretty hard on Mark started at like 10 o'clock we're gonna you know go to bed at 10 o'clock or you know he wants to be in bed at 10 o'clock which really many wanted to be asleep at 10 o'clock which meant bed 9 30.
Yeah but you also weren't going to let me go to bed alone that's just a me thing right so you so you dragged along with it I did you laid there with your eyes open for an hour in the beginning well I would read or something but but oddly enough our clock kept kind of going backwards the other thing I'd say about routines is I got a call this week from one of our 25 year olds we have two 25 year old twins Jordan that lives in New York City and she said you know something mom starting Monday getting back to my routine and I found that so interesting that the self-care part of routine and sleep and waking and all of that is being ingrained in the younger generation which is great it is great so another reason that you might be tired you could have some underlying health issues that you don't know about it's so important to go to your doctor at least once a year and have things checked out because as we age things in our body change and it could be that there's something going on that's keeping you awake at night that's making you feel tired during the day so going to see your doctors on a regular basis is so important yeah there I mean there could definitely be some issues going on that need to be addressed and you know we have friends that actually have said to us we never go to the doctor because we don't want to look for trouble and I'm just not sure that that's a great way to live through this phase of your life yeah and you know in retirement if you're not exercising and you're eating and drinking more than you used to you're going to gain weight a lot of people gain weight in retirement now all of a sudden you pick up an extra 10 15 20 pounds and it's slowly so you don't notice it but that leads to diabetes so you want to get your heart checked you want to get your body checked you want to go see your doctor I recently went to the doctor and found out that I had plaque buildup on some of my arteries that's it yeah it's a scare I suppose but it also has helped get me focused on doing the right thing eating better exercise and getting good sleep yep because that you're on could be out of balance again this goes back to checking with your doctor you know if you're not sleeping and you're gaining weight and you're having trouble going to the bathroom or you're going too much you know find out why it's just not something to sweep under the rug yeah you know if you're getting up four times a night to go to the bathroom it could be as simple as you shouldn't drink water two hours before you go to bed or it could be something else or it could be a medication that you shouldn't take in the afternoon you should take in the morning or yes the important thing we're trying to get across here is see your doctor check your meds you know I was pre-diabetic seven years ago and I changed that with diet and exercise so you can actually be proactive and make some changes as well don't have your doctor just say here's some meds talk to them more about what some of the things you can do to change your lifestyle to become healthier so we hit the doctor we hit the meds let's go to the seventh thing that we came up with you know dehydration dehydration for sure will make you tired that's a no-brainer it leads to all sorts of problems poor sleep heart rate issues blood pressure problems brain damage even death you had an episode a couple of summers ago with dehydration I did I was working in the yard I was working really hard I was sweaty and I wasn't drinking water did all that work it was a hot humid day showered we got dressed to go to dinner we walked down the street to have dinner you know I don't know 500 feet and right in the beginning of the dinner basically long story short I just went down and I fainted and I had to be taken to the hospital and that was preventable it's not hard to effects you need to drink one half your body weight in ounces of water that's a minimum I weigh 160 pounds that's 80 ounces of water a day that's seven to twelve glasses of water a day it's not that hard right right it really isn't it really is and it's so so important to do that so listen it's okay to have lazy days it's okay to splurge with food and wine you know it's okay to binge watch TV but not every day not for your optimal retirement it just isn't sustainable and there's nothing worse than feeling tired all day long and you know people that say that right they get up and they say oh tired midday they're like oh my God I'm so tired yeah don't you get tired of hearing people say how tired they are yeah and maybe some people just say it but you don't have to it doesn't have to be like that right you want to try a day or even a week implementing what we shared today and see if there's any changes that play take place see how you feel you actually might like it you might find a new normal and it becomes a habit now we hoped you like these strategies and changes that we talked about today check out our next video extend your life in retirement by avoiding these four bad habits these are definite changes you need to make so watch this video to go deeper on extending your life and being healthier
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Retirement Tips | 2 Ways to Earn Interest and Delay Taxes
Jason 0 Comments Retire Wealthy Retirement Planning Tips for Retiree's
So, what are the 2 ways to earn
interest and delay taxes? Great question. I'm glad you're here. My
name is Stan The Annuity Man, I'm America's Annuity Agent, licensed in all
50 states. This is part of my retirement tips series on the Stan The Annuity Man
YouTube channel. Which I hope you can hit subscribe or
hit the bell. I think the bell alerts you to when these come out. By the
way, spoiler alert: They come out every single day, Monday
through Friday.
So, we're just getting started. I want to educate the public on
all things annuity. But let's talk about this. Let's get into
the details, let's do facts. Not fiction, not sales pitches. But only
after this music. So, what are the 2 ways to earn
interest and delay taxes? You know, I always say an annuity for what it will
do, not what it might do. Not the unicorns
chasing the butterflies, the hypothetical theoretical, back-tested, hopeful-agent scenario that you see and hear. And you go, "Wow,
that sounds too good to be true." It is too good to be true.
You know, annuities are contracts. You have to understand that. So, what are the
2 ways to earn interest and delay taxes in the annuity world that you need
to be aware of? I've written books on multi-year guarantee annuity and fixed
index annuity. Go to theannuityman.com. Sign up there
and I'll ship the books for free and you'll just get them in the mail. No
obligation, no cost. So, let's talk about multi-year guarantee
annuities.
Multi-year guarantee annuity is a fixed rate annuity.
It's the annuity industry version of a CD.
So, for instance you can get currently at the time of this taping, you can get a
3-year multi-year guarantee annuity. In other
words, you're locking in that interest for 3 years.
In this case, most states have an interest rate around 3%.
So, for those 3 years, you're going to get 3 percent and it's going to
compound tax-deferred. Eventually when you pull
money out of an annuity, any type of an annuity,
you're going to pay taxes at ordinary income rate levels. And you just have to
know that. I mean anyone that says to you that they can get you an annuity
that's tax-free income that they can't. That's
the IRS doesn't allow it. But what the IRS does allow (and this is pretty cool)
is they allow you to defer taxes. And a lot of people out there are
in very, very high tax brackets.
They don't want to lose a penny. But they
also want to earn interest. Multi-year guarantee annuity is a very
simplistic way, a fixed rate annuity way, you know exactly
what it's going to do, what it will do. Not what it might do. There's no might do. There's
will do. Will do with multi-year guarantee annuity is that
interest that you're going to get paid and you can actually peel.
Most of them allow you to peel it off and and put it into a bank account if
you want to. But in this case, you're looking for a
way to delay taxes and put it off and tax defer
and get interest.
Multi-year guarantee annuity is a great
way to go about it. And you can ladder them. You can buy like
a 3-year, 4-year, 5-year or 7-year. They can go as far out as 10
years or more. But in my opinion, you always try to keep the maturity
short with multi-year guarantee annuities with the hope
that interest rates go up. Okay, the other way to earn interest and delay taxes
is with an indexed annuity, fixed indexed annuity. Back in the day,
they were called equity indexed annuities.
But now they're called fixed
index annuities. They were designed in 1995 to compete
with CD returns which is exactly what they do. They are not securities. They are
life insurance products that are issued at the state
level. So, people that want to push them as
market return products, they're really not. They're cd products. Now, some years
can be a little bit better than others. But the blended return since 1995
has been in that cd level. The good news about index annuities is
that when the interest is locked in, in other words, whatever gain on that
call option that you've done… And by the way,
I've done a series on indexed annuities you might want to check out that
explains caps and spreads and participation rates
and all that stuff that's part of the series I did on indexed annuities.
So,
whatever that locks in at, I mean, it never goes below that. So, you just stair
step up hopefully that that interest locks in. And if the
markets go in the toilet, you don't lose a penny. Now, the good news
when used like multi-year guarantee annuities and indexed annuities,
when using a non-IRA account, then that growth
grows tax-deferred and compounds. Which is a good thing.
Because there's a lot of you out there that don't want any more taxes. You're
at a high tax bracket where you just want to protect the principal
and just have interest hit and defer the taxes down the road. In other
words hockey analogy, is kick the puck down the ice a
little bit. Eventually when you pull it out, you will have to pay taxes on it but
with these 2 products –indexed annuities and multi-year
guarantee annuities. You can earn interest
and delay taxes. Alright, let's stay on the subject on indexed annuities a
little bit because in addition, if you just bought an
indexed annuity and said, "Okay, Stan.
I don't need income or i don't need any
i don't need any whistles or barrels. I just want
that index call option return, whatever that is to be credited to the account. I
don't want to pay taxes on it. I want to delay it but I want that interest credit."
Fine. There's no annual fees. It's very… You know, we'll shop all carriers for the
best cap spreads, participation rates, strategies involved. We need to talk
about that go to theannuityman.com and sign up there. Or if you
want to discuss it, you can just hit the comments down here
on my YouTube channel. I do check that and we will answer you as well.
But I wanted to talk to you about indexed annuities with
income writers. Now, I've written a book on income riders that I'll send with the
other ones. The fixed indexed annuity one and the
multi-year guarantee annuity book as well.
But at the time of application, you can attach what's called an income rider to
a fixed annuity.
What an income rider is is an attached benefit that grows
separately. So, if you draw a line down the middle of a blank sheet of paper,
index option stuff here income rider calculation is here. And you can use this
side to calculate a future income payment. Now, the good news is
typically that has an interest rate attachment that it grows
by as well and it's not true interest because you
can only use this to calculate your first income payment.
So, it's kind of a phantom account monopoly money.
But it does have a growth
percentage with most of them that it grows by. But it grows tax
deferred. So, again, if you're looking for interest to
grow and to delay taxes, you can have a fixed indexed annuity
standalone without the income rider. Or you can have a fixed index annuity
with an income rider. Either way, both sides of that calculation…
Remember
i did that the accumulation value and then the income rider.
Both sides of that calculation and there are separate calculations
are going to grow tax-deferred. Which is a good thing.
So, once again, you need to talk with me and go to theannuityman.com. Set of time
and let's talk about what you're trying to achieve.
It really comes down to 2 questions you need to ask and answer. Number 1,
what do you want the money to contractually do and number 2
when do you want those contractual guarantees to start?
In this case, "Hey, Stan. I want interest. I want to delay taxes."
Then we need to go shop MYGAs, we need to go shop index annuities for the best
contractual guarantees for your specific situation. Hey, I've done a
series of these retirement tips video. I encourage you to go check them all out.
You can go to the playlist right below me and you can see the whole series and
look at them one by one to see which one applies to
you.
Remember this with multi-year guarantee annuities and fixed
indexed annuities. You can use our proprietary calculators at theannuityman.com to run the quotes yourself. We have a
live feed of the best fixed rates for your specific state. You just filter by
your state of residence and the duration that you're looking at.
24/7, 365 you can shop that at your leisure. Let me know if you're interested
we can coordinate the paperwork. And with index annuities, a little bit
more of a complex product. But with both products, we need to talk one-on-one me
and you. You and The Annuity Man, America's Annuity Agent.
The number 1 agent in the country. I will shoot it straight if you haven't
caught that from me by now. It's going to be a
brutally factual conversation. I'm going to put your interest first
from a fiduciary standpoint. That's the way it should be with all
conversations and i will tell you if annuity does not fit.
I promise to do that.
Hit the subscribe button. I'll see you
on the next Stan The Annuity Man video. you.
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