Grandpa's Awesome Secrets

Friday Night, Real Life Story for you...

GRANDPA'S AWESOME SECRETS

65 Year old Grandpa asked me to help him “solve this puzzle”:

Grandpa wanted this specific guarantee:

$8 Thousand Dollars per Year for the rest of his life

AND

$8 Thousand Dollars per Year to his 15-year-old Granddaughter for the rest of her life.

So, to help Grandpa solve this puzzle, the missing puzzle piece was - what “financial vehicle” could we use to complete and solve this puzzle?

One financial vehicle that was perfectly suited for this task: A properly designed Annuity!

For Grandpa to accomplish this goal:

He would put approximately $200,000 Dollars that had already been taxed. (i.e. Post Tax Dollars), into this Annuity. < This amount is what we call Grandpa’s principal.

Now, using this particular “financial vehicle”, and post tax dollars – the IRS would not consider any of the $8 Thousand Dollars per year paid out, to either Grandpa, or the Granddaughter as taxable, UNTIL Grandpa’s principal, aka premium dollars, had first been paid out.

You want to know something else? The insurance company that offers this particular “financial vehicle”, does NOT charge any fees for this Annuity.

Why would Grandpa want to do this?

There’s no guaranteed interest rate being paid to Grandpa OR his Granddaughter in this Annuity.

This Grandpa didn’t care about that.

What Grandpa wanted, was an $8 Thousand Dollar “guaranteed paycheck”, every year, for the rest of his life, and then an $8 Thousand Dollar “guaranteed paycheck” every year for the rest of his granddaughter’s life.

The “Guaranteed Paycheck” is where the benefit exists for this puzzle’s solution.

How does it work?

First , it's simple math. It would take 25 years, of using $8K per year, to exhaust Grandpa’s principal.

Let’s say Grandpa is so happy, he lives until he is 90.

Now, Grandpa could have just used $8K of his principal every year, and not put any of it into this Annuity. By age 90, he would have exhausted his principal dollars, and there would have been nothing left for his Granddaughter.

BUT, Grandpa didn't want to do that. He's got a “secret”!

HE knows, how to use #simplyintelligentfinancialpositioning?!

His Granddaughter, who is now 40 years old, will now get $8K per year, for the rest of her life.

Let’s just say that Granddaughter inherited Grandpa’s happiness and good health genes, and she ALSO lives until SHE is 90.

Granddaughter will have received 50 years x $8000 = $400,000 (less whatever taxes she had to pay on her $8,000 every year).

And ALL Grandpa did, was use one of his awesome secrets. He *simply positioned his principal dollars, into this Annuity, First!

What a sweet, sweet Grandpa!

The End

Dream Sweet!

Oh, wait, What’s that you say?

Oh!! I only gave the very “happy ending” to the story.

You don’t like that?

You want to know what happens if there’s not such a “happy ending” to this story?

Ok, I think you're just trying to stay up past your bedtime, but I’ll tell you an alternate ending to this story.

Let’s say - same as before, Grandpa does put his principal into this annuity, and he starts taking his $8K per year every year.

About 3 years later, his Granddaughter has graduated High School. So, to celebrate - Grandpa and Granddaughter, are taking their exciting Route 66 Road Trip, Grandpa promised her.

Grandpa and Granddaughter don’t ever make it back from their trip.

Besides this being an overwhelming and emotionally sad time for the entire family:

IF Grandpa would NOT have put his other awesome secret to work - the family would have had a financial loss too.

You see, Grandpa’s principal, that he put into that Annuity is not going to get paid out now, because both of the annuity recipients, are no longer with them.

BUT!!!…Grandpa didn’t just love his Granddaughter; he loved his family too!!

Grandpa’s other awesome secret?

He also used a different #simplyintelligentfinancialpositioning? strategy, to help protect his principal dollars, in an instance just like this one, so that those finances didn’t leave his family!

Would you like to know exactly what Grandpa’s other secret was?

Well, you’ll have to do what Grandpa did, and contact me.

I can’t just go around giving ALL of Grandpa’s secrets away!

And besides, it's past your bedtime.

As always, if you recognize someone who you think should know about the work that I do, don’t keep me a secret! ??

Live AND Retire Happy!

*Be the Difference!

~Tawni

Written by Tawni Bennett

February 3, 2023