Also in this playlist...
This transcript is automatically generated
So our next guest mr.
Jack -- and joining me now retirement pro and president of -- financial.
Yeah dealing with the older generation who are you -- the parents and grandparents of the newer generation NN.
I it's different now the times have changed because of the crisis everybody's thinking differently and because of the crisis.
That's fine for the -- -- he's incredibly drained and so many people are in there this.
Yeah they are -- and be able to convincing me that's their biggest concern not necessarily do they have enough.
To do -- they used to do.
But do they have enough to make it through age eighty -- ninety and you know of course you don't -- people live longer too so they got to prepare now.
Not just eliminating -- but maybe -- to a hundred.
How many ahead.
You have very few I mean you know an interesting statistic is that the average portfolio for retiree today -- 191000.
No that's when -- have.
Not savings account.
You're saying in battle for investment things thousand dollars or two higher notes on -- -- and -- and you need you need sent.
Things go easy.
Yeah and what you -- I played in my article actually said that if you had.
Three hundred -- as and you could end in five years create for yourself the 2000 one thing come.
Now if you don't if you had 191000 your -- on Social Security.
And of security's pretty much what you're gonna live on and -- guaranteed for trying alliance.
You know that's a big question you know it's kind of a political football probably but you know they could actually -- -- security easily.
You know they took the cap off the contribution to Social Security which I'm not a big men went to cap right now.
-- at a 113 doesn't -- -- that you make you pay no more fight or into Social Security so you're saying if you get to pay more after that cap that.
What funds -- for a hundred years.
Yeah actually now whether or not that's gonna happen I don't know because that's an increase in taxes than a lot of people -- in favor of but it doesn't change the fact that most people that I talk to they're concerned these these -- the people that actually have assets.
And what do we do with them to make sure they don't disappear which is in my article it talked about the current interest rates.
Yes let's talk about.
Yeah -- no interest rate environment which is terrible news for us down.
You know I have my dad don't -- Melanie is when we -- my mortgage used to be whatever percent double digits -- and I can't remember.
You know and now it's it's laughable interest rates -- add 3% yes.
Which is great is great to spur the economy but if you're looking to retire or -- just looking to save money.
-- -- at a lock.
Still which is why the central banks lowered interest rates was to stimulate business and to stimulate consumer spending.
No question about that and they actually did the right thing in a weakened economy.
But when you start to look better overall.
If you've got money you know you need to put in a place.
That it's safe and the big thing that it takes for me to get -- retire Reid to get their head wrapped around.
Is that you're no longer in the space of accumulation.
You're actually known space -- preservation.
You have to preserve the -- and we have eight.
If we broke up a little bit.
Interest rates are so -- yes and Simmons from the -- Yes boosted its economy incentive somewhere and we just closed out the first quarter the best first quarter since nineteen -- eat.
Now the bottom 10% since the start of the year yes and we've had this bull market you.
But many retirees got so nervous because every time it was approaching that they pulled money out there.
Any -- these gains -- -- -- huge losses and never recover their money.
I interest rates went loans stimulus -- coming into the economy the stock market went to record territory they did all their money out sometimes fun.
Yeah yeah -- did if they pull that in 2008 there was there was a move that they probably regret at this point.
Depending on where they put it and you're right if they put -- and fixed interest.
Investments like -- CD -- money market you know money markets nationally averaging about point 7% -- I have yet you can't.
If you can't do much with that so that they were forced to go back into the market or -- stay on the sidelines and if there on the sidelines.
They are in fact not prepared for retirement you recommend something the fixed -- indexed annuity yeah that.
Well because if you look at it you re going to be take the risk of the market more you're gonna take the risk of having inflation need to up your portfolio.
So you've got to find someplace in between what fixed indexed annuities have done is there like -- savings accounts and insurance company offers.
But -- interest is credited based on the performance of an index a -- Now the fact that it's considered like a savings account there's no downside risk but if the markets go up.
To look at return granted so if the market doesn't because September's that you won't mean you only get six.
But in reality that 6% you can never lose so with locks -- at the end of the year.
So the next few market was down 46% -- you didn't -- -- and he didn't lose any of those games.
So we've got him in a position where they've got the upside potential that actually outperformed the.
CD's and money markets and treasury bonds that are available now.
And there's another little caveat that these are feature of these and that -- comport with all the guaranteed income my Mitterrand.
Now that guarantees.
On some plans that are available right now six and a half percent.
Compound annual return on those monies that you've been used for income purposes.
Now if you remember my article I suppose actually three types of money you gotta consider them.
One is which -- useful long term income.
And that's the -- I'm talking about.
I call those sacred money's actually if you don't know about these secret money -- common.
Well they should know that a portion of the portfolio is sacred for long term income but they may not know how to put it says in a way that they can do you know six and a half percent.
Returns compound and and doing -- created guaranteed income that they can now live.
I'm here adept part when we -- -- they can now look.
Which means let's say their account value went to zero they can -- continue to get an income from them that's why I like those today.
So where is the best -- fine for those -- you've got to go to and advised of the deals with those kind of investment.
We do and there's a lot of people like us around the country that'll actually put them into retirement vehicles that are in their best interest for long term income.
Filter by section