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KJCE 1370AM>Audio on Demand>>Financial Wise 10/19/2013

Financial Wise 10/19/2013

Oct 20, 2013|

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Billions and billions of dollars are written in fixed. Annuities with the indexing. And so I really wanna go deep into debt because I want you to be armed with the facts -- you can understand. How they work and you know what they aren't. So you know at -- so financial we're an independent. Investment firm and an independent. Insurance firm so we're able to merge the worlds of risk and no risk for you. And by doing that I wanna talk about some of the foundational assets and some of the shows. And some of them the risk investments and other shows that today. We are going to talk about the interests that's earned in an indexed annuity. So why would we have foundational assets. Foundational assets aren't the ones that you have that are risk free you don't have to worry about them they're going to be. Instruments so that they're gonna last as long as you do. You'd you know there's no chance we're losing the money. Now we nearing your working years and you're accumulating growth. All right then you can have more money at risk the reason -- can have more money at risk is because. If you lose it in the stock market you're just gonna go back to work and earn it again right. But when you're in retirement folks you've got to think differently. The the foundational assets have to be there because you have a withdraw percentage coming out of your assets. So you can't just focus on accumulation. And high returns. With high risk. You have to go to an income model so if you think in your mind accumulation. Growth. Retirement. Income. Those -- the contrasting ideas. Between those two time periods so if you're approaching retirement. You need to Collison caps -- financial. The number is 512. 215. 9030. And we will be able to sit down and help you navigate through these choppy waters frankly because. A lot of folks that I see right now that are walking in the office have. You know and big big risk in their portfolios. A lot of of correlation to the stock market. A lot of correlation to the benchmark. Which is the S&P the Dow Jones. All of that and then their foundational assets are literally being carried in the you know on the ground learning point nothing. And so you know what you're looking for in your foundational lesson. Is no risk. But also liquidity. But there's a cost for those two things for no risk and full liquidity. You're gonna get point nothing and the Indian point. 02%. The bank. So if -- to have half a million dollars. Sitting in something let's say in a CD. Or are very very low risk investment with a lot of liquidity. And your greater return was you know just. Point -- you know point five. At the CD you're gonna earn 2500 dollars a year. On a half a million dollar investment I see that every day people want to liquidity option that they are earning anything -- you're giving up. The earning potential. So you're slowly losing money. Because inflation is at 3% folks. So you're slowly losing money so over a five year period happening and dollars learning point 5%. Is 121500. Dollars. Now if you were to. Put that money use in a low low risk. Annuity. Over a five year period where you can still get some money out many indignities that are out you can get 10% out. If you have a a long term care issue there's no surrender charges you can take that out. If you have a life expectancy of the year -- -- you can take all that money out in a lot of liquidity features they're available in some of these annuities. So we are getting 3%. In that instrument. Over the same five year period you -- earned 75000. Dollars it would have 3% alternative investment. So the difference. Between having it completely liquid and completely no risk. In having it at 3% with no risk and a little bit of ill liquidity. It's gonna cost you 62000. Dollars. So I don't know about you that I can think of a lot of things I can do with 62000. Dollars over five years. Just to put it into an instrument that has no risk but has. You know you're putting it into an annuity over that period of time so. That's really what we're talking about now to get a little bit more gains. Rather than -- fixed instrument is to index it. So wanna go into the indexing. -- indexing means that you've got half a million dollars or whatever the number is in your putting it into. This -- instrument. Now there's some contractual guarantees. Within that contract. When you do that with the insurance company number one your pooling risk so the insurance company can go out and they're not buying wild and crazy things with your money folks. Contractually they have to to even be called -- in new it'd have to be buying. Bonds government obligations treasuries. But when they can go in with their buying power it's a whole different thing they knew -- nine going in with our smaller amounts. So if you want it we're gonna go into the next segment. On how they buy. The indexing how you get the returns. Of the participation. With in the stock market -- participate. With. The gains of the stock market in -- instruments we have no downside risk how does that even happen. So we're gonna talk about that when we come back. If you want more information we have a booklet that we want to offer you called the ten things that you got to have for retirement planning call my office. At 5122159030. And I'll militants which you want to call my office and we'll -- -- that book. And remember some folks are financial wise and their arrests are other lies I'm -- -- Blackburn. It's time to attend -- most important event of your life. Retirement ready or not hosted by Suzanne Blackburn with capstar financial. A weekly activity center October 20 seconds you'll get insight into retirement game changer -- it's -- continue my standard of living through my retirement years go into every senator without running out of money in my mid career without a retirement plan can afford another severe downturn in the market. As the unbiased financial -- -- -- -- you've seen on TV TV. And heard the talk radio thirteen 78 and financial lunch Susan Blackburn can help you better understand you were financial options that. Reserve your place for retirement ready or not Tuesday October 22 at 16 -- the only way activity -- Register by calling 5102159. -- 34 capstar financial dot com. Investor advisory services at the global financial credit capital OC in SEC registered investment advisor. And welcome back to financial -- Would you -- who's at Blackburn. Welcome back Tennessee's got Blackburn with financial lives where remember. Some folks if financial lies and the rest are otherwise. Today we're talking about indexed annuities and you know I'm really going deep into this topic because. You know I get a lot of calls in the office people and understand these instruments. And and I wanna give you good information that you can used to protect yourself and make good decisions in your retirement life. Now in this segment we just had a talked about the difference between gross assets an accumulation model assets. And foundational assets that are gonna give you protection. And security. And safety of your principal are right. The safety of your principal. Is a foundational asset now. The costs for safety. Is what it's going to be low interest I -- that's the cost you're not gonna gain a lot. Well many people that walk in my office have a lot of assets weighing in high risk. That are going to be subject to the Dow Jones and -- 2030% -- assets and then the assets that they've earmarked for safety. Are buried in CD's or money market accounts turning point nothing. So the contrast idea is where can we find a foundational ascent the it's going to give you interest. It's tied to some in to see so you can have no downside exposure at all. But yet some upside you know potential so that's what we're talking about folks. How did how did -- indexed annuities work so you. Contractually. Bind with the insurance company when you buy an annuity it's an insurance product is not FDIC -- proved. It or are insured I should say. It's insured by the fate to the insurance companies. And I must tell you that the insurance companies that do annuities. Have to have. Illegal reserve system there has to be a dollar backing every dollar that you put into an annuity or they cannot. Except your money. Now that's on the fixed. Annuity side the variables we're not talking about. -- I'm not talking about that whole monkey show at all talking about fixed. Risk free asset basis so. The insurance companies they said they have to have a legal reserve system. Where they have a dollar and possibly -- dollars and change. For every dollar that you put into that annuity. So. The contract. They -- by with that insurance company we've got to understand that together as a financial planner. I've got to make sure that that fits for what you're trying to do in your life. Now if you want me to examine your annuities you have are right now call my office at 512215. 9030. And we'll sit down with your contracts and now. -- give you the the nuts and bolts the deep dive into. All of the workings of how that is OK but we have a under management right now 48 million dollars that is a combination. Of fixed instruments like annuities. And then the risk world that would be managed funds ETS -- different things of that nature. So I'm talking specifically. On indexed. Fixed indexed annuities are right so. You have a contract with this insurance company when you buy an annuity so this contract. That you bought. We're looking for specific things how to we earn interest. What are the terms. Of the contract I wanna know how long do I have to hold this before the surrender charges go away. And the surrender charges folks in taxes generally if you buy one that's a good interest bearing account it's got good. Offerings it's gonna be at ten year contract. It might be seven. It could be ten a lot of the fourteen year those are those are. Older so the ones here in Texas. The good ones are ten years so that means. That if you buy a ten year contract you're probably going to give opponents. Know what the bonuses as the insurance company says hey thank you we're gonna keep this money we're gonna buy premium bonds with it. Government obligations treasuries are gonna -- are risking get a really get interest rates. And because you're allowing us to buy a long term bond we're able to give you a bonus it could be. 3% 5%. I've seen as high as 10%. One thing you need to know. Nothing is for free if you get a 10% bonus it's gonna be lower caps are lower potential. For market gains so you wanna make sure that your -- monus. And that the contractual guarantees within your new idiot how does work okay. What the insurance company does then to make it an indexed. Annuity. They take the earnings from those bonds. And their buying with that little piece of it. They're using those earnings to buy puts and calls. Now the puts and calls are going to be. Towards the indexed earnings. So if you were to get a Caplan say that you get all that the essence he has to offer with a cat. Are let's say that S&P 500 goes up 7% in one year. One of them is called a point to point accrediting method. And he'll point to point. So if you get all that the market returns and an annual period of time with a cap. You really want to understand what is the cap. How does it work is it changed every year is it a multi year cap. Or is it something that I have a large cap with the participation rate in all that so let's go in that. The and you point to point in the S&P. -- generally looking for a cap. Of 456. If we have some really good interest. Earnings in those bonds as I said when interest rates go up a little bit. You're gonna see caps as high as 78. In my career I've seen and as high as eight. Right now caps are generally low and so if the market goes up. In the S and he goes at seven. A lot of times those caps are going to be at 45%. So that means that you're not gonna get seven you're only gonna get four or five of whatever the annual. Return of the S&P if it goes up three. The S&P does. All right now if you want me to go deeper into this topic -- at 512215. 9030. In on milieu wanna talk about this topic indexed annuities are right. So the retirement the and you -- point to point. In an index annuity how does that work. Now. There are other accrediting methods and some of the new hour. Hybrids for this type of annuity are wonderful but I want a topic and it wanna stop and really think for a second. If you've got a 300000. Sitting in money market accounts and you're not gonna touch it it's money that's. There for risk free it's just in case what if OK but she wanted to have money that's never gonna go away. You can put those kind of monies into an indexed annuity. And get. You know the market will bear. Those 4% caps overtime. The general on our client base. I have seen. An average return of about 45%. Through the last ten years per year. In indexed annuities with no risk to your principle based on the returns of my own. Experience with them that's my own experience I've personally -- two of them. And that's what I see in them now that's not exciting that's pretty boring as far as interest rates go. But guess what it's a heck of a lot better than point 50. It's a heck of a lot better than point nothing at the bank or I'm slowly losing money. Because inflation at three folks. And taxes would you take taxes and inflation out of the earnings. You're slowly losing money. So I want to have assets that are risk free they give me the potential of earning more. But that I can never lose my principal and never -- earnings that I had the year before. And yet still have that risk -- component you understand. So call my office 512215. 9030. We have over twenty years of experience in this type of planning have been working with insurance products for gosh too long even say. And so you know not all of them are good there's a lot of garbage out there and that you need to have the facts. In your back pocket to protect yourself so you can make the best decisions for you and your family -- right. Now again as I spoke if you're if he put half a million dollars. Into a CD or money market in at its earning points. You know five bill. Then you're only earning 2500 dollars a year in that half a million dollar investment you're safe you solved your problem you're completely safe from risk. But you've it's cost you about 62000. Dollars and let me explain why. Because if you -- to put that same half a million dollars. Over a five year period. Into something earnings 3% of fixed indexed annuity. And you earned only 3% a year you over that same period you would've gotten 75000. Dollars. So that cost -- 62500. Dollars to be safe from risk and completely liquid. Now think about that for second 62500. Dollars and a lot of money. So really really observe what are my choices out there in the world now if you go to stockbroker I can assure you they're not gonna be talking about indexed annuities. If you go to -- they're offering only risk investments. It you know if if I go to barber I'm gonna get a haircut at the Barbour offers if I want color my hair -- uterus -- a lot. So you've got to make sure that you see in the right person you gonna go to an independent investment advisor. That also holds a 65. For your investment in the rich world. NA independent insurance license four year. Insurance products and those are the two licenses that you want because there's no conflict of interest. I'm gonna offer you what's best for you. Regardless of it's the risk are a risk free. I'm gonna talk about all different types of investments and not bound by a proprietary product line. At a big bucks broker told me to sell you I'm going to be able to look into the whole world of investments the whole world of insurance products. An offer you whatever is out there in the fixed indexed annuity world. And believe me we lined up ten of my -- seven of them in the garbage and kept him on here. Because they're not all good. There's going to be a couple that is gonna fit exactly what you're trying to do in your retirement life to receive income from life. To make sure that you grow assets without compromising principle. All right that's a foundational asset. Because in the retirement times you have to really look at something that you don't look at when -- working. And if you don't remember anything I've said remember this one thing. You will have a withdrawal. Percentage. Of the year assets when you retire. And that withdraw percentage. Is what I'm helping you find when you come in my office. I'm looking to see exactly. With a given assets that you have with your obligations with you're traveling budget. With what you're gonna doing your life how much do we need to take out of this account although all the buckets. And how much do we need to learn to maintain. That you never run out of money. That's not reality in your working years you're accumulating. Assets in your working years. So the foundation assets we can't really afford to lose out on 62500. Dollars DC that. Putting many buried in a money market that's a good safe place and it gives you -- warm Fuzzy feeling but we're slowly losing money. So called cats are financial and 512. 2159030. And I'll know this is a topic that you wanna talk about. We don't just do fixed indexed annuities are like some. I'm not in love with them there's all types of investments that we can do to accomplish a lot of things for you. But until -- -- I can't help yes. So call me. I want to. 21590301. Thing I'd like to offer you today is a booklet on the ten things that you need for retirement planning. Call my office and we'll give you that booklet and it'll go deep into the east topics. So remember folks some folks are financial lies and no arrests. Are otherwise. I'm -- at Blackburn. It's time to attend -- most important event of your life. Retirement ready or not posting about Suzanne Blackburn with capstar financial. Weekly activities -- October 22. You'll get insight into retirement game changer slick piece can continue my standard of living through my retirement years -- every senator without running out of money in my mid career without a retirement plan can only afford another severe downturn in the market. As the unbiased financial advocate you've seen on TV TV yeah. And heard the talk radio thirteen seventy alien financial lunch -- Blackburn can help you better understand you were financial options that. Resume your place for retirement ready or not Tuesday October 20 seconds 16 am the only way activities there. Register by calling 5122159. 34 capstar financial dot com. Investment advisory services over the global financial pretty capital OC in SEC registered investment advisor. Welcome back to financial -- with your post -- -- Blackburn. Welcome back and sit at Blackburn and listen you missed it we had a fantastic. Event. At the lake -- activity center. And what we're doing at the lake lake city center is having. Just a wonderful time to give you good information that you can use to arm yourself and protect yourself and retirement. This Tuesday October 22 this coming Tuesday. I want you to call my office. And I went to 2159030. We want you to come there and have some time with us. Where you can get great information in retirement. It's not an accumulation model folks when you get in retirement. You've got to look at in come you withdraw percentages. You're safe investment choices and that's what we're going to be talking about. We're going to be talking about. All different things taxes inflation. Doing a good budget dealing excellent choices with manage money not buy and hold not risk okay. And really explaining the differences between all of that. -- 6 PM at the lake way activity center Tuesday October 22. We want you to be there so called the office at 5122159030. Now. Another great time with us is that our lunch and learn events. We have one coming up November the fourth. At our north office location it's one hour over lunch let me -- lunch and learn some stuff last one we had. Was fantastic. We talked about -- vs trust estate planning. We went deep dive in to buy and hold investments mutual funds. You know all the risk world vs the risk free world. I'd love to have you there you're gonna walk away armed with facts. That you can use the last one of the year is this one coming up November the fourth our north office location. Go to capstar financial dot com capstar. Financial. Dot com register with us. And call our office if you want to as well 5122159030. And remember. Some folks -- financial lies and no arrests are other line. I'm season much better.

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