His Wife Made Him Call Me - LOL!

You were right!

That’s what the guy on the other side of line said to me.

I wanted to ask him to repeat it. Sometimes it’s hard to hear on cell phones.

Immediately, I thought of telling my sons because, according to them, I’m NEVER right about anything.

“I should have done what you suggested…”

He admitted that he felt silly calling me. That he hemmed and hawed until his wife made him do it. LOL!

We hadn’t spoken since early 2018.

I reviewed my notes, but I remembered him. Nice guy. Inquisitive. His wife was really concerned about retirement

The recommendation was that he employ a “protect and grow” strategy because they were on pace to meet their retirement goals.

One of my suggestions was to purchase an annuity to protect some of his money and begin an income strategy. (He didn’t have a pension.)

At first, he thought that re-positioning to an annuity was a taxable event. I explained that it was a direct transfer within the IRA environment and there were no tax consequences.

He wasn’t convinced and shared some research that he had done.

“ANNUITIES SUCK!” Brought to you by the fine folks at Fisher Investments.

[You may know Fisher Investments. They have made annuities a 4-letter word through their brilliant marketing. They are an asset manager and do not sell insurance-related products.]

I wondered if he had called Fisher Investments.

He had – they wanted to put him in a mostly stock portfolio that they claimed wasn’t cookie-cutter (it was) and charge him a 2% annual management fee. (Way too high.)

I asked him if he thought that was a wise move, given he was 63 and about to retire.

He didn’t.

But he was stuck on their brilliant messaging that annuities are not suitable investments.

Privately, I thought about their strategy. You call into an 800 number. It’s a hard sell and if you don’t have half a million to give them, they’re not interested. It occurred to me does the individual on the other end of line give a frog’s fat a** about the caller?

Back to yesterday’s call. “Is there anything he could do now?”

There is, but first a disclaimer.

My proprietary concept retirement planning approach - SECURiMENT™ is a safety-satisfaction approach. That is – I believe it is wisest to use an insurance company (and risk-pooling) to cover your basic needs in retirement. (Think: housing, food, medicine, etc.)

Other goals like vacations (discretionary) and leaving an inheritance (legacy) are funded through your other assets.

I believe this is how I can help people live their ideal lives.

[At this point I could share some article about annuities and satisfaction – but, instead, you must know someone who has a pension. How are they doing? Pretty happy, I’d imagine]

Yes, I am compensated by insurance companies when I see fit to suggest an investment to my clients. (There, I said it! I tried working for free, but the wife didn’t approve.)

Back to my new friend: There is something he (and you for that matter) can do.

Most people have bonds in their investment portfolios. With interest rates near zero, their money is hardly working for them.

A suggestion to consider is re-positioning a portion of those assets to an annuity.

The goal: better returns while offloading some of the risk of you living a long life (longevity risk) – to an insurance company.

Well, that’s enough for today.

I know you’re dying to know. Will he become a client?

Perhaps, which would be lovely but telling me I was right about something…THAT WAS PRICELESS!

If you think there is nothing you can do right now, you are wrong.

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Darryl Rosen MBA, RICP

Darryl Rosen is the founder of Rose Advisory Group, and operates www.RealRetirementAdvice.com as a way to help others create their ideal retirement. He is obsessed with helping people create safety, simplicity and strength in their financial future. Darryl’s clients enjoy his straight-forward, plain-spoken guidance, strategies to minimize taxes and ability to generate investment returns, while minimizing risk so his clients can sleep at night! Darryl is licensed to provide guidance on securities and insurance solutions and has achieved the highly desired Retirement Income Certified Professional (RICP) designation.

Darryl is the creator of the well-known SECURiMENT™ Retirement Planning Method. A simple to understand and implement planning method that demystifies retirement planning so that people can take action. Visit Rose Advisory Group to learn more! 

Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor.  BCM and (Rose Advisory Group) are independent of each other.   Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Information provided is not intended as tax or legal advice, and should not be relied on as such.  You are encouraged to seek tax or legal advice from an independent professional.