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.

Protect Yourself from These Retirement Threats

Source: American Advisors Group

Source: American Advisors Group

“Aging is humanity’s greatest, most important, and most enduring discovery. The discovery and exploitation of human longevity is what has led to the globe-dominating species we have become.” — Dr. William Thomas, M.D.

For most Americans today, retirement begins at around 63 years old and lasts roughly 18 years. After years of hard work, retirees deserve to enjoy their remaining years in a financially stress-free environment. Retirees must have a safe, sustainable retirement income. Several different paths and products that, in addition to your income, should assist your revenue as you near retirement, if needed. No one option is the perfect fit, but with proper guidance and research, you can carve the ideal path for you and your loved ones.

Sometimes, however, threats to your nest egg can arise. It’s crucial that you properly maneuver these potential pitfalls, or your hard-earned retirement could be threatened.

Inflation

Inflation can take down even the strongest retirement plans. Always keep an eye out for the interest rate in your savings account is paying. With inflation likely outpacing your interest rate, prices on needed goods and services can sneak up on you. This also goes for travel and medical needs.

If you feel like inflation could dismantle your agenda, consider an additional revenue stream like a hybrid annuity.

Health

Going beyond medical costs, seniors require more medical attention regarding daily and long-term care. Over time, they can add up and impact your savings more than expected. Remember to keep prescriptions, doctor bills and hospitalization fees all in the forefront of your mind. If these medical issues arise before you hit retirement, consider that you may have to take time off work. This can impact your earnings and throw off your original plans. If a health issue looks like it could hinder you pre-retirement or during, be sure to adjust your plan accordingly.

Age

When did you start to plan for your retirement? If you answered with a relatively young age, congratulations. You’re putting yourself in a great position. Beginning a 401(k) in your 20s will provide you with a larger and longer return on investment over time. The longer you wait, the less you will have saved. It’s as simple as that.

If your company offers a 401(k) plan, take it. If not, start a retirement option on your own. With life expectancies lasting longer, you’ll want to have stored away as much as possible.

Fees

Let’s be real, fees can be confusing, even for the experts. And even when you do understand them, you might find that they are incredibly high! Unfortunately, fees are sometimes an unavoidable aspect of retirement. That’s why you need to make sure that your retirement expert is just that. With a proper advisor in place, you will know exactly what you are paying and when.

None of us like fees, but at least you’ll know what to expect when a payment is expected.

Taxes

Like fees, taxes can be a costly oversight if you make a mistake.

If your plan includes 403(b)s, SEP IRAs, 457(b) plans and/or Traditional IRAs. you’ll have to factor in minimum distributions once you reach your 70s. Depending on the sum, you could wind up paying a large portion to the IRS each year. To minimize this risk, consider coversion options that may align with your goals. Other options are out there to consider. As always, consult your retirement professional before making any decisions.

Risk/Volatility

The fall of the stock market is a common concern for retirees. Many think that if it crashes as they edge closer to retirement, all their effort goes down the drain. However, your retirement should live out a crash many times over, if planned correctly.

If you find yourself concerned, don’t worry, you have options. Bond funds, mutual funds, ETFs and other investment options can lessen your worries. Choosing the right options and investments should make this a minor issue as you approach your later years.

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!