Yes you might say that but More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. .
@@OliverTilney Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
Financial advisors can play a crucial role in helping individuals employ dividend investing in their portfolio . These professionals have the knowledge and expertise to analyze a client 's financial goals , risk tolerance , and investment timeline to determine the most suitable dividend stocks for their portfolio .
My grandfather withdrew 1% less than what his portfolio did at end of year and he never ran out of money. He never cut back on whatever he wanted and lived a long happy lifestyle until he passed in his 90’s
@@truthsleuth271 Doesn't say he has to spend everything he takes out. When the market is up 20%, he only spends what he needs, and the rest is put into a brokerage, cd's, etc. Then that money is used in down years.
Isn't the problem with this that yes you might be 10% at the beginning, but with no adjustment for inflation that within a fairly short amount of time our 4 or 5% withdrawal catches up to that 10% withdrawal and eventually we lose purchasing power. How do we keep that 10% withdrawal rate keeping up with inflation? And if it doesn't then how do you mitigate that inflation into the future.
Hi Jason, this video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grow longer untouched. In addition, this strategy helps to hedge against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital. Thanks for watching!
I generally like this guy. However, unless I’m mistaken, what he left out of the analysis is that the 4% rule is a very conservative withdrawal strategy, and that in the majority of cases (Monte Carlo for instance) you will die with millions to leave your beneficiaries. Or, another way of looking at it is that, some years into your retirement you will be able to reassess your withdrawal rate calculations and increase your income. This is not discussed in the video. When you buy an annuity, when you die you leave nothing to your children. With the 4% rule, the chances are very very high that you will have a lump sum to leave…
What’s the point of inheritance? Teach your children how to fish and buy them tools to fish with. Die at zero. What good does inheritance do for your children? The answer is nothing.
Hi Craig! We all have different goals and risk tolerances in mind for retirement, and this video is just highlighting one strategy you can consider when planning. When I make these videos, my purpose is always to provide greater visibility into the different options available along with potential outcomes, so that you can weigh which strategies might be best to consider for your own goals. If you'd like to see some other options for other withdrawal percentages that I have discussed, there's a whole Retirement Planning playlist that you can check out. Hope that helps - thanks for watching!
@@OakHarvestFinancialGroup Thanks for the reply. I have watched quite a few of your TH-cam videos and they are highly informative and helpful. Was just chiming in on this one specifically because I think that distinction I made is very important to the discussion. Have a great day!
@@EdNichols-qj4xk You can get one with a death benefit. But that runs out when the 'market value' is 0. So usually ~ 15-17 years. Once you die the LPA is not transferrable (except in the case of a Joint or Survivor Annuity)
@@g.ajemian4968 I agree (an FIA holder myself). I would just appreciate a frank assessment that includes a mention of the advantages as well as disadvantages.
Thanks for commenting. The video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grown longer untouched. In addition, this strategy helps to insure against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital.
Thanks for commenting. The video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grown longer untouched. In addition, this strategy helps to insure against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital.
Thank you for your question. Like most responses with financial planning, ‘it depends’. If you are drawing income from tax-deferred accounts or taxable brokerage accounts, it is highly likely that the income you receive will be taxable. However, this is not a certainty. We would need to learn more about your overall tax situation to confirm for you. Feel free to contact our office to learn more by speaking with one of our advisors. Thanks for watching.
This is a bit misleading, because you are comparing a fixed annuity with an income rider to just the income generated by the 4% guideline. Of course the annuity will generate more income per year, but the 4% guideline you still have your principal as well, unless it is two decades later and the stock market crashed right at the beginning. Even with the 4% rule, a person is 4 times more likely to have twice as much starting money in their portfolio than have too little. This isn't to say all annuities are a poor choice, there is less risk in an annuity, but there is far less opportunity for principal to grow in an annuity, because there is no principal growth in an annuity, you get a monthly amount, plus your heirs may get the death benefit, but there is no principal.
Thank you for your detailed comment! You bring up some important considerations, and I agree that comparing an annuity with an income rider to the 4% withdrawal guideline from an IRA is not a perfect apples-to-apples comparison. The purpose of this video was to highlight a potential income solution for retirees who may prioritize stable, predictable income over long-term growth or portfolio volatility. You're right that with the 4% guideline, the principal typically remains intact (unless market conditions create a significant downturn early in retirement), which can lead to more opportunity for portfolio growth and potential wealth accumulation. However, there are trade-offs with this approach, such as market risk and sequence of returns risk, as you pointed out. On the other hand, while an annuity may not offer principal growth, it can provide guaranteed income for life, which is appealing to many retirees who are more focused on security and longevity. It really comes down to an individual's risk tolerance, income needs, and retirement goals. Annuities are not a one-size-fits-all solution, and certainly not a basket you should put all your eggs in... but for those prioritizing income stability and protection from market fluctuations, they can play a valuable role in a diversified retirement plan. I appreciate you bringing up these nuances, as they’re critical to consider in retirement planning. Thanks again for sharing your thoughts!
This video is misleading. He's trying to bait you into buying annuities from him without saying it upfront and hiding that fact from the video's title. Very misleading and shady. I just unsubscribed and flagged this channel. Annuities are bad people. Do not fall for annuities. Do not listen to this guy.
We're sorry to see you go, @theexponent3834! Also that you felt it was misleading - we were simply trying to draw attention to the higher withdrawal potential with this alternate product. We all have different goals and risk tolerances in mind for retirement, and this video is just highlighting one strategy you can consider when planning. When I make these videos, my purpose is always to provide greater visibility into the different options available along with potential outcomes, so that you can weigh which strategies might be best to consider for your own goals. Thanks for watching.
I agree with the comment. Much better to say this is how annuities work instead of conning you into listening through most of the video. Just reeks of sales ploy. I think annuity is probably the right product for some people. Unfortunately you don’t buy an annuity. You get sold an annuity.
Okay, so you are trying to sell annuities here. Good luck doing that. I hope whoever buys them from you or anyone else does his or her homework because they are a bad choice for them (but great for you!)
You say that but does one live life for someone else because they are noble or ignorant? Yes, they are a business though that uses the law of large numbers to mitigate their risk so a large amount of people can retire in a more comfortable way. They aren’t some bad guys stealing money any more than any other business.
Thank you for your comment. Like any other investment, annuities should be viewed as a ‘tool’ to be used to accomplish a goal. For annuities, these tools can work to compliment other guaranteed incomes sources like Social Security or pensions. They can also be an alternative to fixed income (ie. bonds) that can provide principal preservation. However, they do have their considerations. Generally, annuities are illiquid investments. The most important consideration should be how annuities (like stocks, bonds, real estate, etc.) fit into your overall retirement plan. Thank you for watching.
I use an annuity as one leg of a four legged retirement 'stool'. To provide an income floor. Social Security; Annuity; Retirement funds; Small business income.
Yes you might say that but More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire without any investment. Retirement becomes truly fulfilling when you possess two essential elements: financial resources and a meaningful purpose in life. Make prudent investment choices to secure good returns and ensure a comfortable retirement. .
Retirement planning means preparing today for your future life so that you continue to meet all your goals and dreams independently.
@@OliverTilney Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
Financial advisors can play a crucial role in helping individuals employ dividend investing in their portfolio . These professionals have the knowledge and expertise to analyze a client 's financial goals , risk tolerance , and investment timeline to determine the most suitable dividend stocks for their portfolio .
I believe risk can never be eliminated, only transformed.
"There's no such thing as a free lunch."
My grandfather withdrew 1% less than what his portfolio did at end of year and he never ran out of money. He never cut back on whatever he wanted and lived a long happy lifestyle until he passed in his 90’s
And what did he withdraw years thr portfolio was down?
Great question!
That only works if the market goes up every year. What did he withdraw in negative years?
@@truthsleuth271 Doesn't say he has to spend everything he takes out. When the market is up 20%, he only spends what he needs, and the rest is put into a brokerage, cd's, etc. Then that money is used in down years.
So if the stock market was down 20% what did he do?
Great video. But how can anyone manage through retirement without multiple streams of income
Isn't the problem with this that yes you might be 10% at the beginning, but with no adjustment for inflation that within a fairly short amount of time our 4 or 5% withdrawal catches up to that 10% withdrawal and eventually we lose purchasing power. How do we keep that 10% withdrawal rate keeping up with inflation? And if it doesn't then how do you mitigate that inflation into the future.
Hi Jason, this video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grow longer untouched. In addition, this strategy helps to hedge against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital. Thanks for watching!
I generally like this guy. However, unless I’m mistaken, what he left out of the analysis is that the 4% rule is a very conservative withdrawal strategy, and that in the majority of cases (Monte Carlo for instance) you will die with millions to leave your beneficiaries. Or, another way of looking at it is that, some years into your retirement you will be able to reassess your withdrawal rate calculations and increase your income. This is not discussed in the video. When you buy an annuity, when you die you leave nothing to your children. With the 4% rule, the chances are very very high that you will have a lump sum to leave…
What’s the point of inheritance? Teach your children how to fish and buy them tools to fish with. Die at zero. What good does inheritance do for your children? The answer is nothing.
“…you leave nothing to your children.” Are you sure?
Hi Craig! We all have different goals and risk tolerances in mind for retirement, and this video is just highlighting one strategy you can consider when planning. When I make these videos, my purpose is always to provide greater visibility into the different options available along with potential outcomes, so that you can weigh which strategies might be best to consider for your own goals. If you'd like to see some other options for other withdrawal percentages that I have discussed, there's a whole Retirement Planning playlist that you can check out. Hope that helps - thanks for watching!
@@OakHarvestFinancialGroup Thanks for the reply. I have watched quite a few of your TH-cam videos and they are highly informative and helpful. Was just chiming in on this one specifically because I think that distinction I made is very important to the discussion. Have a great day!
He is selling annuity😢
What are the key parts of an annuity contract that potential annuitants should be aware of ?
Usually, when the person dies, if they are single, or their spouse is already gone, then the money is also gone. Nothing to leave as an inheritance.
@@EdNichols-qj4xk only if structured that way
@@EdNichols-qj4xk You can get one with a death benefit. But that runs out when the 'market value' is 0. So usually ~ 15-17 years. Once you die the LPA is not transferrable (except in the case of a Joint or Survivor Annuity)
Wow, now downside! Oh...wait. Those annuities are not indexed for inflation. So that income will be halved in ~ 20 years (or less).
Wow wait if the market tanks the first four years of your retirement while you are taking 4% you will have bigger problems than inflation
@@g.ajemian4968 I agree (an FIA holder myself). I would just appreciate a frank assessment that includes a mention of the advantages as well as disadvantages.
Are you sure?
Thanks for commenting. The video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grown longer untouched. In addition, this strategy helps to insure against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital.
@@OakHarvestFinancialGroup Good analogy
Uggg.....more annuity sales tactics......why would anyone buy an insurance product with no inflation protection ?
There’s quite a few that have inflation protection
Thanks for commenting. The video explains how you can lock-in today’s high interest rate environment for the rest of retirement and generate significant amounts of income while allocating less capital with no market risk or uncertainty. Taking a portion of your retirement assets to do so can alleviate the need to withdrawal from your stocks, leaving it to potentially grown longer untouched. In addition, this strategy helps to insure against markets not cooperating by providing a baseline of income to couple with Social Security. That’s a very attractive proposition to millions of people that don’t receive paychecks anymore and just want to enjoy retirement without the volatility of the stock market dictating their income payments. Just like you don’t use a fork to eat soup, you don’t use a fixed indexed annuity to combat inflation. Luckily, you get a fork, spoon and knife normally when sitting down for dinner. It’s kind of the same when you allocate retirement capital.
Most have an inflation indexed option. But the ROC is much lower, usually 25-30% lower. And the inflation indexing only runs for ~ 10 years.
Find a job with a pension. Money keeps coming at the first of the month. Hard to find but worth all the effort.
Or create your own pension out of your 401k
Hi Matt! Thanks for watching and sharing your perspective.
Is this income tax liable?
I think the growth is ? check with a professional
Yup! Just like your social security and bonds
Thank you for your question. Like most responses with financial planning, ‘it depends’. If you are drawing income from tax-deferred accounts or taxable brokerage accounts, it is highly likely that the income you receive will be taxable. However, this is not a certainty. We would need to learn more about your overall tax situation to confirm for you. Feel free to contact our office to learn more by speaking with one of our advisors. Thanks for watching.
This is a bit misleading, because you are comparing a fixed annuity with an income rider to just the income generated by the 4% guideline. Of course the annuity will generate more income per year, but the 4% guideline you still have your principal as well, unless it is two decades later and the stock market crashed right at the beginning. Even with the 4% rule, a person is 4 times more likely to have twice as much starting money in their portfolio than have too little.
This isn't to say all annuities are a poor choice, there is less risk in an annuity, but there is far less opportunity for principal to grow in an annuity, because there is no principal growth in an annuity, you get a monthly amount, plus your heirs may get the death benefit, but there is no principal.
Thank you for your detailed comment! You bring up some important considerations, and I agree that comparing an annuity with an income rider to the 4% withdrawal guideline from an IRA is not a perfect apples-to-apples comparison. The purpose of this video was to highlight a potential income solution for retirees who may prioritize stable, predictable income over long-term growth or portfolio volatility.
You're right that with the 4% guideline, the principal typically remains intact (unless market conditions create a significant downturn early in retirement), which can lead to more opportunity for portfolio growth and potential wealth accumulation. However, there are trade-offs with this approach, such as market risk and sequence of returns risk, as you pointed out.
On the other hand, while an annuity may not offer principal growth, it can provide guaranteed income for life, which is appealing to many retirees who are more focused on security and longevity. It really comes down to an individual's risk tolerance, income needs, and retirement goals.
Annuities are not a one-size-fits-all solution, and certainly not a basket you should put all your eggs in... but for those prioritizing income stability and protection from market fluctuations, they can play a valuable role in a diversified retirement plan. I appreciate you bringing up these nuances, as they’re critical to consider in retirement planning. Thanks again for sharing your thoughts!
This video is misleading. He's trying to bait you into buying annuities from him without saying it upfront and hiding that fact from the video's title. Very misleading and shady. I just unsubscribed and flagged this channel. Annuities are bad people. Do not fall for annuities. Do not listen to this guy.
We're sorry to see you go, @theexponent3834! Also that you felt it was misleading - we were simply trying to draw attention to the higher withdrawal potential with this alternate product. We all have different goals and risk tolerances in mind for retirement, and this video is just highlighting one strategy you can consider when planning. When I make these videos, my purpose is always to provide greater visibility into the different options available along with potential outcomes, so that you can weigh which strategies might be best to consider for your own goals. Thanks for watching.
Agree 100%, this guy is selling annuity
I agree with the comment. Much better to say this is how annuities work instead of conning you into listening through most of the video. Just reeks of sales ploy. I think annuity is probably the right product for some people. Unfortunately you don’t buy an annuity. You get sold an annuity.
Okay, so you are trying to sell annuities here. Good luck doing that. I hope whoever buys them from you or anyone else does his or her homework because they are a bad choice for them (but great for you!)
You say that but does one live life for someone else because they are noble or ignorant? Yes, they are a business though that uses the law of large numbers to mitigate their risk so a large amount of people can retire in a more comfortable way. They aren’t some bad guys stealing money any more than any other business.
Thank you for your comment. Like any other investment, annuities should be viewed as a ‘tool’ to be used to accomplish a goal. For annuities, these tools can work to compliment other guaranteed incomes sources like Social Security or pensions. They can also be an alternative to fixed income (ie. bonds) that can provide principal preservation. However, they do have their considerations. Generally, annuities are illiquid investments. The most important consideration should be how annuities (like stocks, bonds, real estate, etc.) fit into your overall retirement plan. Thank you for watching.
I use an annuity as one leg of a four legged retirement 'stool'. To provide an income floor. Social Security; Annuity; Retirement funds; Small business income.
TANSTAAFL
Hey @polymath5119, not totally sure what you mean but thanks for watching and commenting!