Volume 3 of the Most Important Newsletter Series That You Will Ever Receive

Advisor’s Journal:

Over the last two newsletters, we tailored our auto and homeowner’s policies to create a barrier between our assets and potential lawsuits and negative consequences.  In doing so, we have created an environment where our wealth can grow in safety, without fear of plunder.

Now the fun begins, but first let us learn a lesson from Joe Anybody who is currently age 61.  Joe worked hard and saved religiously his entire life using typical investment products: 401K, IRA and mutual funds.  Joe was physically and mentally ready to retire in 2008 but he was heavily invested in the stock market. When the market plunged 38%, so did his life savings.  In addition, his nest egg was built on investment products that were tax deferred, which sounded good, but now the taxes that he will pay on the money he will withdraw from his qualified plan, coupled with the 38% loss of his portfolio from the market collapse, left Joe with the harsh reality that he could not afford to retire. Worse yet, unless the market performed tremendously well over the next couple years, Joe might not ever have the quality retirement on which he had planned. 

Susan Anybody is Joe’s twin sister.  She also had some money in typical investment products. However, before she put money into investments that she hoped would be there for her in retirement she first  guaranteed her retirement.  Years ago when she first sat down with a Dynes Insurance advisor, they carefully put  together a plan that would: 1) offset any weaknesses in her other investments; and 2) guarantee a tax free nest egg that would allow her to retire comfortably, regardless of how her other investments performed.  If her mutual funds and IRA where ready to retire when she was they would be gravy on top of her financial assets.  If they weren't ready like Joe’s investments, Susan would not be held hostage to market volatility or unfavorable tax consequences.  In fact, she has four times as much money as she put into her plan, and she won't pay tax on a dime of interest.  All achieved through guaranteed return products and compound interest.

In typical qualified retirement plans such as an IRA or 401K, do you know what is the most overlooked “thief” of your wealth? It is inflation.  The average American has a “working life” (actively earning) of approximately 45 to 50 years. During those years they put money away in investments where the bulk of their money can’t be used without financial penalty prior to age 59 1/2.  In doing so they lose out on the ability to use that money to enhance their lives or to seize additional investment opportunities as they arise. 

Would you purchase a dream home without putting insurance on it to guarantee its replacement? Before you allocate money to speculation and the unknown, first, lay a rock-solid foundation for your retirement that will provide guaranteed wealth accumulation and beneficial tax treatment.  Next month we’ll discuss the product that will lay the foundation to your retirement portfolio.