Why Your Financial Strategy Needs a Fresh Approach
Alan Porter,
Certified Financial Fiduciary, Certified Tax & Business Advisor, Emphasizing, TAX & HEALTH COST savings, Guaranteed Income & Asset Protection. Retired Military, Blackhawk Instructor Pilot
Have you ever played a game of tic-tac-toe? If you recall, the person who introduced you to the game likely won the first time. This common experience uncovers a simple yet profound truth; those who know the rules often have the advantage. It's time to apply this understanding to your financial planning, especially when it's about achieving a sustainable and comfortable retirement. IT IS TIME TO THINK OUTSIDE THE BOX OF CONVENTIONAL FINANCIAL PLANNING!
The Retirement Mountain: More Than Just Climbing
In our journey towards retirement, most of us work with an advisor or money manager, just as we might hire a guide for an adventurous mountain trek. While they do an excellent job in helping us reach the summit, they often miss the crucial part: how to navigate the descent safely and enjoy the picturesque landscapes along the way.? You see, in retirement it is not about return on your investment it is about the distribution of your assets.? The antiquated Wall Street propaganda about using a 60/40 stock and bond portfolio for retirement does not work and has not worked for years, but you still pay that management fee whether you make money or not, correct?
Similarly, your CPA might be an expert in helping you pay less tax this year by advising you to pour more money into your tax-deferred retirement accounts like your 401(k) or IRA. But they're typically not equipped to help you plan for lifetime tax savings.? Also, how many times has your CPA, Financial Advisor, or Attorney given you any PROACTIVE ADVICE when it comes to saving taxes and tax planning?? It is always reactive!
Beyond the Mountain: Shifting Focus in Retirement
So, what's the more holistic approach to retirement? The answer lies in understanding that retirement isn't just about wealth accumulation; it's a transition from being a saver to a spender.
Here are six elements to consider when planning for your retirement:
1. Income:?As your role changes from an accumulator to a spender, your wealth's purpose shifts. It should provide you with income/cash flow to cover your spending needs not met by Social Security, pension, or other sources.? People need to understand as an example.? If you had $1,000,000 in a stock portfolio at age 65 and took a 4% distribution that would be $40,000 NOT GUARANTEED!? You would only need approximately $650,000 of that stock portfolio to give you the same $40,000 per year and that is GUARANTEED FOR LIFE from a Fixed Indexed Annuity I sponsor.? That leaves $350,000 that you can use to pay the taxes and turn that FIA into Roth, where you pay no taxes in distribution, does affect the taxation of Social Security or the Means testing for Medicare Part B and has NO Required Minimum Distribution.? You could also possibly have money left to purchase Life Insurance for your beneficiaries, that is TAX-FREE!? At a 3% distribution rate you would only need 50% of the stock portfolio.
2. Growth:?While the priority of your portfolio should be value appreciation, remember that growth comes with potential risks. In retirement, many choose to dial down market risk, instead focusing on keeping pace with inflation or leaving a more significant legacy for beneficiaries.? Understand if you have a 50% loss in the market it takes a 100% gain just to get back to even!
3. Preservation:?This element is about ensuring the return?of?your money rather than a return?on?your money. Preservation means concentrating more of your plan on guaranteed principal assets, protecting a portion of your assets from investment risk. You must have guaranteed money in retirement just to pay for your basic needs.? You cannot get that with a stock portfolio only insurance companies can do that because they manufacture mortality credits.? No other financial vehicle can do this.? It has been proven in many studies that people with guaranteed income in retirement lead a more healthy, less stressful, longer, and happy retirement when they do not have to worry about the ups and downs of the stock market.
4. Liquidity:?In simple terms, it's having easily accessible money. This might mean having enough cash for several months' worth of household operations, or a reserve for unexpected costs like home repairs.? You can have that liquidity in cash value life insurance where you can become your own bank compounding interest for yourself in a TAX-FREE bucket of money and not the financial institutions!? I can show you how to have guaranteed income for life in retirement even if you run out of assets!
5. Heirs & Beneficiaries:?This element considers the financial resources you aim to leave for your loved ones. The importance of this aspect can vary greatly depending on your family situation and your overall wealth.? If you want to leave a legacy give your beneficiaries TAX-FREE life insurance for pennies on the dollar and spend our assets in retirement
6. Debt:?Lastly, debt can be a significant obstacle to wealth creation. Planning to eliminate personal debt quickly can accelerate the wealth creation process and increase your financial stability in retirement.? I show people how to reduce and possibly eliminate both debt and taxes and educate them on EFFECIVE INTEREST COSTS!?
Retirement isn't a one-size-fits-all journey. It's essential to understand the rules of the game and consider out-of-the-box thinking to ensure your golden years are indeed golden. With the right strategy in place, you won't just reach the mountain's peak; you'll also enjoy the journey down, preserving your lifestyle without fear or uncertainty and eliminating many risks in retirement that a stock portfolio CANNOT!
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Do not let your hard-earned money be at the mercy of unpredictable markets and excessive taxation.?Schedule a free 15-minute call ?with me today?to explore the possibilities to secure a more comfortable retirement.?It is time to?THINK OUTSIDE THE BOX OF CONVENTIONAL FINANCIAL PLANNING!
In addition to scheduling a 15-minute call with me, you will receive a copy of my groundbreaking book:??
ALAN PORTER??To schedule an appointment go to:?????https://go.oncehub.com/AlanPorter
DEBT FREE FOR LIFE WEBSITE:??debtfree4lifeamerica.com
Retired US Army?
Cell 910-551-1046 Email:?[email protected] ?
Life /Annuities/Health Insurance Sales, Certified Financial FiduciaryLearn the strategies for TAX-FREE Retirement Income & Distributions