Retirement - Live Comfortably WITHOUT Running Out of Money

The 5-Step PROCESS

The 5-Step PROCESS

According to Forbes Magazine [link], the number one concern for retirees is 'running out of money'.  If this is one of your concerns, then you must know that you're retirement success is not dependent on a financial "product", but rather a "process" that will insure you can have the retirement lifestyle you've dreamed about. 

We've developed a 5-step process we call The Retirement Income Framework to help our clients reach this goal.

Step 1: Identify [Where are you now?]

Step 1: Identify [Where are you now?]

Before you can plan, you must know what you already have. Additionally, you'll need to determine how much income you'll need as well as how much income you'll want. You'll want to make sure your plan is able to deliver your needed income every month for the rest of your life.

It's not about how much assets you'll have. Rather it's about how you'll turn those assets into income.

Nobel Prize laureate Robert Merton in his article The Crisis in Retirement Planning [link] in the Harvard Review states, "Our approach to saving is all wrong: We need to think about monthly income, not net worth."

Step 2: Protect [the most important step]

Step 2: Protect [the most important step]

The most important step is to maximize guaranteed sources of income to insure you have enough to cover your needs for the rest of your life.

Annuity income comes from three possible sources:

  • Private annuities [AKA: pensions] are backed by a private company, or the governmental entity.
  • Public annuity [AKA: Social Security] is an entitlement backed by the Federal Government.
  • Self-funded annuities [AKA: insurance annuities] are funded by the individual and backed by an well-established insurance company.

In all three of the above annuities, the responsibility is on the company, government or financial institution to deliver on their contractual obligation--no matter how long you live. Depending on the distribution choices you make, that income can continue as long you or your spouse is alive.

Imagine the peace-of-mind you would have if your retirement plan included guaranteed income to meet your needs for the rest of your life--regardless of the economy or stock market swings. Would that relieve some of the stress you may be feeling right now?

You simply need to work with someone who can help you maximize all sources of guaranteed income.

You likely have questions. Let's schedule a time to talk.

Step 3: Reduce [your future tax liability]

Step 3: Reduce [your future tax liability]

Believe it or not, historically speaking we are currently in one of the lowest tax environments we've seen in the past hundred years. 

If you had to guess, sometime in the next 1 to 20 years, do you believe taxes will go up, go down or stay the same?

If you answered anything other than "going up", you may not have an accurate view of economic reality. (You may also want to look elsewhere for financial guidance.)

So think about this--If taxes are higher in the future than they are today, does it really make sense to defer [IE: POSTPONE] paying taxes at today's known rate in exchange for paying at a future unknown rate?

This one really gets people thinking. You likely have questions. Let's schedule a time to talk.

Step 3: Reduce (cont'd)

Step 3: Reduce (cont'd)

If you're first thought on reducing your future tax liability is a Roth IRA, you're on the right track.

However, you can only contribute $7,000/yr to a Roth IRA--and that's only if you're over 50. How much impact can you make on your tax liability during your 20 or 30 years of retirement with a $7K annual contribution between now and retirement?  Also, if your household income is more than $208,000 in 2021, you're not even eligible for a Roth IRA!

What if there was another financial vehicle that allowed for much larger contributions and no limit on income?  Maybe a "Monster Roth IRA"?

Got questions? Schedule a virtual meeting with Doug Bryan, RICP®
Step 3: Reduce (cont'd)  AKA: Monster Roth IRA

Step 3: Reduce (cont'd)  AKA: Monster Roth IRA

There is a unique form of permanent life insurance called Indexed Universal Life (IUL). When properly structured using the least amount of death benefit and maximum amount of funding, this under-utilized strategy can provide a living benefit of tax-free income via policy loans that never have to be repaid. And upon death, your heirs will receive a tax-free death benefit.  

This is the only financial vehicle that insures what you want to happen WILL HAPPEN--whether you're here to see it, or not.

If you're like most people, you have questions. Let's schedule a time to talk.

Step 4: Invest [in the market]

Step 4: Invest [in the market]

Surprised that we're recommending investing in the market after sharing annuity and life insurance strategies?  Don't be. We firmly believe in using the market as part of your overall financial strategy.

We simply believe the time to invest in the market is after you've maximized guaranteed sources of income and after you've reduced your future tax footprint as much as possible. Does that make sense?

Most advisors recommend market investment as Step 1.  It's Step 4 in our process.

By making market investment the fourth step, you're able to remove one of the biggest reasons investors do poorly in the market: emotion.

Many investors get excited when the market is doing well and they invest more. Then when the market "corrects" itself, they get scared and pull out.  In short, they "Buy high and sell low". (sound familiar?)

As you see in the graph to the left, the market has done well over 30 years. However, due to emotional investing habits, individual investors have not done as well.

By following this 5-Step PROCESS, you can remove emotion from the equation.  Think about it.  If you knew you had all of your needed income guaranteed for life and if you reduced your tax liability with a source of tax-free income that is protected from market swings, would you feel less anxious about your market investments?  Could you better tolerate a market 'correction'? Of course you could since you understand that you're not dependent on that money to pay your bills.

You probably have questions. Let's schedule a time to talk.

Step 5: Manage [Annual Review]

Step 5: Manage [Annual Review]

You can just about guarantee that any plan you make today will need modification at some point. We recognize that planning for your future is a fluid process.  That's why it's so important to review your plan at least on an annual basis. This step is vital for a successful retirement. Would you agree?

You likely have questions. Let's schedule a time to talk.

Schedule a virtual meeting with Doug Bryan, RICP®
Want a second opinion?

Want a second opinion?

Would you like to know the likelihood of your current retirement plan taking you all the way to life expectancy? 

We have a detailed custom report called "Retirement Income Shortfall Analysis". After gathering your information, my team will produce this 11 page report using a Monte Carlo Analysis [link] that will stress test your current plan and give you a score between 1% and 99.9% on the likelihood of your current plan making it through your life expectancy.

Then we will determine if there are any adjustments or reallocations possible to increase that score--just like in the example to the left.

Currently, we are offering this report at no charge and no obligation.

If you're like me, you're thinking, "OK, what's the catch?"

No catch.

Again, consider it a second opinion--just like you would with a doctor. If I don't see there's room for much improvement, I'll let you know in the first meeting. If there is potential for a significantly improved score, we'll schedule a second meeting and my team and I will produce the report. If you're not comfortable with the recommendations, again there's no obligation to move forward.

You likely have questions. Let's schedule a time to meet.

Get a 2nd opinion--Schedule a Zoom meeting with Doug Bryan, RICP®
Common Question 

Common Question 

ANSWER: NO. 

The first meeting is a discovery meeting. It's about you. Not us. We'll need to gather some financial information in order to create the report.

Now in the follow-up meeting there may be lifetime income or tax-free strategies presented. But if you are not confident in the strategies presented, then I would not allow you to move forward.

Most times, there are several meetings before any plans are implemented. You will never be asked to make any financial decisions on-the-spot. As you're understanding, financial strategizing is a process.

Common Question

Common Question

You don't need huge amounts.

  • If you have as little as $100,000 in anything other than your current, active qualified account (IE: current 401K)--I may be able to help.
  • If you contribute as little as $6,000/yr into an investment account, OR an un-matched retirement account--I may able to help.

The bar is not that high.

Now the question for you is--do you continue doing what you've been doing, or do you take advantage of this opportunity to see if you may be able to have a more secure, predictable retirement income plan?

Since you've read this far, its obvious you're serious about your retirement. Would it make sense to schedule a 60 minute virtual visit with a Retirement Income Certified Professional®?

Schedule a virtual meeting with Doug Bryan, RICP®

Investment advisory services offered through LifePro Asset Management, LLC, a registered investment adviser. Investments involve risk and are not guaranteed. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by Advisor), will be profitable or replicate its previous historical performance.