Rainbow Connection (Getting the Largest Pot of Gold)

Rainbow-Connection-compressor The rainbow crediting method launched towards the end of 2007. Unfortunately, the launch coincided with the tail of the previous bull market and annuity buyers selecting the rainbow method in 2007 and much of 2008 received the same zero returns as other indexed methods. However, as the stock market rebounded in 2009 the rainbow began to show its performance colors and this article looks at the relative performance of the different rainbow methods first reviewed two years ago.

The rainbow method is an option basket whose best-performing indices are weighted more heavily than those that perform less well. It is always a “look- back” because the money is allocated based on the ranking of the performance after the period is over. Rainbows are always index blends, but not all index blends are rainbows. The difference is blended methods state at the beginning what the percentage make-up is of the indices in the blend, but the rainbow method combination is based on the returns calculated with the largest portion going to the best performers. The Rainbow marketing appeal has been expressed by saying that the annuity buyer gets to bet on the race after it has been run and that most of the bet will be put down on the horses that “win or place.”

Learn about the rainbow strategy and how you can get your own pot of gold in my book, Outlasting the Storm: A Survival Guide to Retirement Income Planning


Additional credit to Jack Marion “Rainbow Connection (Getting the largest pot of gold).” May 2010.

The Rainbow Strategy (Global Lookback)

The Rainbow Strategy

In these times of high volatility, people are looking for ways to diversify their portfolio in order to protect their nest egg and try to capture as much of the upside as possible.

But what exactly is diversification? Is it choice? A Jelly Bean Store can have thousands of different choices of colors and flavors but everything you buy is still a jelly bean.

True diversification is a mixture of uncorrelated, or lesser correlated, items. When looking for diversification for where you put your nest egg, you want to be spread out across the different economies around the globe.

Where do you think we are going to see the economy improving in the next ten years? China? Europe? Japan? America? How would you like to be in a position where you would not have to guess which economy will grow the fastest to be able to take advantage of that growth? That is what the new “rainbow crediting method” does.

Many of the experts familiar with this strategy say it is like being able to bet on the race after the horses have run. Here is how it works. The strategy uses four indices from around the world: the Hang Seng in China, the Dow Jones Eurostoxx 50 in Europe, the Nikkei 225 Index in Japan, and the S & P 500 in America. This strategy is not only diversified using economies from around the world, but it is also weighted so that most of the money is going to the indices that are producing the best results.

Learn about the rainbow strategy in my book, Outlasting the Storm: A Survival Guide to Retirement Income Planning

Is this the Real Super Annuity?

Phillip Wasserman - savings

This past Sunday afternoon I received a call from a very good friend of mine who runs one of the most successful annuity shops in the country. He starts explaining to me about a new product that will be available this week. Hesitantly, I tell him I don’t believe a word he says, and he comments back, “ Phil, I thought it was too good to be true too.” Then he sends me an email proving everything he said was spot on as usual.

I’ve been very disappointed in annuity companies recently for a number of reasons. They have reduced the benefits of their products, cut agents’ commission significantly, and are blaming low interest-rates (that might be acceptable if they had not been booking record profits the whole time they are trying to help clients).

I’ve trained thousands of insurance representatives — most of them are very hard-working, good people dealing with an environment where they are at war every day with companies regulators and they have little control over the products. Annuity products are presented to the public so complexly that you would think it was done on purpose — but this one is different.

So, back to this new product. It has one of my favorite features — liquidity — you’re able to get your money back in a short time without surrender penalties, and that is magnificent. You also get uncapped growth, which means there’s no limit to how much money you can make and the income is the highest you’ve ever seen.

When you add in it’s a quality company, it’s a recipe for major success.

I have no doubt within a very short time it will be the number one annuity in the country and everyone else will be chasing it. Yes, the product is that good.

If you’ve ever thought of buying an annuity, now is your chance. Fortunately it’s available through a lot of very good representatives nationwide, although it is not available in every state just yet. If you’d like some information on this email or call me and I’ll be sure to steer you to great rep in your area.

The Fallacy of the Financial Advisor

I can’t help but wonder when I meet retirees, with a total net worth between $200,000 to $400,000, who have a financial advisor that is either an annuity sales person or a lower echelon stockbroker.

Instead of using these asset gathers, these retirees could benefit more from simple income and income planning advice about income and income planning.

Most super affluent retirees have CPAs, attorneys and multiple financial advisors, while affluent retirees either have a quality financial advisor or handle it themselves.

An Emphasis on Education

One of the great things about the MoneyShow is the emphasis on education. The people I’ve met through the MoneyShow are more advanced and knowledgeable than the people I meet at retirement seminars.

This is a true testimonial to the service the MoneyShow provides to hundreds of thousands of people.

Everybody today needs to be a specialist. There is simply too much going on and too much regulation.

My specialty is annuities and tax-free wealth transfer which is known as the anti-annuity. I also do a tremendous amount of long-term care and home health care planning even though I do not sell those products.

Keep it Simple

There are experts who write covered calls for income, there are bond experts, and there are dividend paying stocks experts.

It’s a complex world and nobody can be all things to all people. Most of the time I find that a little common sense goes a long way.

People who are retired should have simple goals. Don’t run out of money; prepare for health costs, provide what legacy benefit you want and most of all have a great time!

If I can help you with any of that feel free to email or call me!

For more info, contact Phillip Wasserman:
Pwasserman@aol.com or 800-254-9567.

The Best Retirement Planning Advice Ever

Phillip Wasserman retirement planning

My hobby is playing tournament poker. I’m lucky enough to get to play once in a while with a lot of the people you see on television. The nice thing about tournaments is that you can only lose what you paid to enter.

A few months ago, I went very deep in a large tournament. I called a close friend of mine who finished second in the World Series of poker a few years ago. My friend was lucky enough and skilled enough to win almost $6 million at the age of 25. The purpose of my call was to ask him advice for the next day and he had one sentence for me…don’t do anything stupid.

The more I think about this the more I realize this applies to retirement planning. Most people have won the game and they just need to enjoy retirement and not do anything stupid.

What they should really do is guarantee their income and make sure they have extra income if a spouse dies or a pension is lost. They should also make provisions for long-term care expense and home health care. After that they should enjoy their retirement.

They should certainly avoid ridiculous products with very high fees like variable annuities and should always ask whoever they’re dealing with what their fees are.

If retirees want to leave money to their children, they should do it through legacy planning because people are living longer than ever before and retirees might need their money for income while they are in their 80s and 90s.

I do income planning, legacy planning, long-term care, and home health care planning through the use of hybrid insurance products. I don’t sell long-term care coverage but I can show you how to get it through a hybrid insurance product with no medical questions and no extra expense.

Around a year ago, Barron’s published a great article about this and I’m happy to send you the link. Email me or call me and just remember don’t do anything stupid and have a good time!

For more info:

Pwasserman@aol.com or 800-254-9567.

Tax-Deferred Fixed Annuity

phil wasserman financeA tax-deferred fixed annuity is an efficient retirement plan that can protect your assets’ values while allowing its value to continue increasing. Similar to a certificate of deposit, a tax-deferred fixed annuity guarantees you a multitude of beneficial guarantees. They include:

– Return of your principal

– Return on your principal

– Defers tax liability until cash is withdrawn

– Lifetime income

– Guaranteed principal

– Guaranteed interest

– Avoids high costs and delays of probate

It’s not only about the guarantees that make this plan alluring to many retirees. It’s also about what you earn over the years. By accruing interest on your principal, your assets are not only secure but growing as your approach your retirement. By compounding your interest, you are essentially adding value atop your already valuable base investment.

Remember, no annuity is built to satisfy the desires of every person and income bracket. Usually, a tax-deferred fixed annuity is best for those able to invest $10,000 or more, but that varies with the product and plan you opt for. Be prepared to make the investment in one swoop as most of these ventures require a one-time investment rather than an incremental approach. In doing so, you have locked in your investment. From there, your account’s value grows over time at a guaranteed rate.

Be sure to check your state laws before making the investment. Depending on which state you live in, your situation could vary to a degree. A multitude of variables including proceeds from state inheritance taxes, medical needs withdrawals and account value protection can alter from state to state.

As is the case with any retirement plan, disadvantages can arise. If a beneficiary receives your investment, they will ultimately be taxed in a higher tax bracket. Remember that all income gets taxed as if it is your standard income. Again, depending on the state you reside in, premium taxes could devalue the amount on future payments.

That’s why you always need to consult with an annuities expert before taking the plunge on any investment. Your future depends on this decision, and your life’s work deserves to be protected. By making the sound choice, be it a tax-deferred fixed annuity or otherwise, you position yourself to have the most enjoyable retirement possible. You’ve put in the hard work your whole life. Now it’s time to make the right choice.

Investing With Lump- Sum Annuities

Phil Wasserman annuities

When individuals consider the list of positive attributes associated with life annuities, i.e., guaranteed payments you cannot outlive, low cost, access to invested capital, and reasonably priced features such as inflation adjustment and legacy benefits, the argument for this income solution in retirement is compelling. By covering at least basic expenses with lifetime income annuities, retirees are able to focus on discretionary funds as a source for enjoyment.

Locking in basic expenses also means that the retiree’s discretionary funds can remain invested in equities for a longer period of time, bringing the benefits of historically higher returns that can stretch the useful life of those funds even further. Income annuities may also be a vehicle that enables retirees to delay taking Social Security benefits until they are fully vested, bringing substantially higher payments at that point.

Phillip WassermanThe key in all of this is to begin by covering all of the basic living expenses with lifetime income annuities. Then, to provide for additional desirable consumption levels, youwill want to annuitize a goodly portion of the remainder of your assets, while making provisions for extra emergency expenses and, if desired, a bequest. These last two items can be accomplished through combinations of insurance and savings.

When this is undertaken, you can enjoy your retirement without the burden of financial worries and focus on more productive uses of your time and attention!

Why Does Ken Fisher Hate Annuities?

Phil Wasserman annuities

I was watching the first Republican debate of 2016 and in the middle of it came a commercial for Fisher investments and why Ken Fisher hates annuities. (Of course, I had seen the commercial before and everyone mentions it to me.) Let’s start with this: I’m Phil Wasserman. I sell annuities and insurance. I love annuities and so should you.

Annuities are designed for income. If you need income, they are a great product and strategy. If you don’t need income, you probably don’t need an annuity today. There are hybrid annuities that include long-term care and in home healthcare without any health questions for people who can’t get the coverage. There are annuities where you can’t lose your principal, so for retirees battered by the recent stock market, they are great vehicles and they are guaranteed lifetime income and with longevity…that’s important.

But let’s go back to my friend Ken Fisher. Ken Fisher is actually not my friend. I’ve never met him but I’ve heard he’s a very pleasant person. But why does he hate annuities? Because Ken has built his own annuity. He is a huge money manager who charges a fee whether the market goes up or down. He’s built his own annuity and he’s reportedly a billionaire. Is Kenneth a smart guy? Absolutely.

Let’s take $1 million. If you are selling a new annuity with that, the average commission is around $60,000 over a ten-year period. That’s not so bad. Some of you might think it’s too high, but I have to service you for ten years.

If Ken has you invest $1 million, he might charge you a 1.5% fee yearly whether the market goes up or down. That’s $15,000 a year. Over ten years that’s $150,000. Wait a second, that’s a lot more in fees! No wonder Ken is a billionaire and I’m not. No wonder he hates annuities. He makes a lot more money under his business model. As I said, he’s a smart guy.

All you have to do is follow the money.

If you’re interested in discussing this with me, call me at 800–254–9567. And here’s my cell number 941–726–3183.

To make it clear, I’m calling Ken out. I’m challenging him to a debate that we can post on the Internet.

And here’s something for all of you to think about; Mr. Ken Fisher, billionaire who hates annuities, his firm is one of the largest shareholders in one of the best annuity companies in the country. That’s right! I didn’t believe it myself, but it’s right there on the Internet.

By the way, here’s a disclaimer, Ken. I’m not a billionaire but I’m a pretty darn good debater.

To receive your free copy of Why I Love Annuities and You Should Too, please email me at pwasserman@aol.com.

Phil Wasserman Talks Guaranteed Funds

Phil WassermanMany states offer guarantee funds, which helps them to pay out their claims.

Rarely advertised, these funds are similar to FDIC protection annuities, life insurance, long-term care insurance, and health insurance. These state funds offer you a high level of trust in the product, and will help to protect you and your wealth.

These annuities are some of the safest financial instruments available today.

Should You Invest in Annuities?

Phil Wasserman AnnuitiesWhen you’re looking for steady income that’s guaranteed for life, or need to protect your principal and protect your money from inflation, annuities are for you.

You can choose from various options which will match your risk tolerance, options which will protect your assets in case of death, allowing your heirs to benefit, or options for viable tax deductions that will benefit your overall tax structure. If you’re looking for the above, then an annuity should be in your future.

By: Phil Wasserman