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KJCE 1370AM>Audio on Demand>>Retirement Destiny 2/8/14

Retirement Destiny 2/8/14

Feb 8, 2014|

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Automatically Generated Transcript (may not be 100% accurate)

Your retirement just inebriated. Presented by doing your retirement planning group. The retirement income specialists. Are providing solutions to all aspects of your retirement needs the wants and drinks including staging and Medicare as security plan yeah. This is retirement disappearing. Some folks may have to work well into their eighty S if they wanted to provide for any kind of golden here. Few people have enough money to retire. It's going to want to save save save save things that they know I think you're gonna need that money to supplement their retirement woman candidate. This is retirement destiny radio when he was Randy -- welcome to the show. And with me today is Kelley Carter of the beacon retirement. Planning group with offices in San Diego Texas -- thinks you in the mood -- -- working on the they're all over the place. And also Michael Rossi is the president of Medallion Financial distributors. Also a designer of numerous financial products over the past twenty years our number here is 8887672122. You can throw us an email info at retirement destiny dot com and you can find out more about. What -- and crew over beacon retirement planning group do you online retirement destiny dot com. And Kelly and all of the folks over -- retirement planning group. I have a knowledge and capability in the expertise to help many people with many different financial situations. Some advisors only plan for retirement but only a retirement destiny advisor can help with all aspects of your financial future. And gentlemen today we're talking about drum roll please. Inflation adjusted income. Researchers shown that a baby boomers greatest fear is running out of income in retirement do inflation. Kelly I'm sure you see this everyday people not planning and -- I'm sure -- disaster story after disaster stories you've helped people out with. They do to properly plan for the effects of inflation. You know granted it's really becoming a big concern now you look where we are in the markets we have 161000 on the Alley eighteen term he has and he. There's a lot of concerns about the Fed. Pulling out of QE3 and stopping the printing of money Mike as we talk about all the time. And when you start to factor in what's coming in one -- has already happened back in 2008. To 20012002. You know people have very short memories when it comes to this but now we've got some inflationary pressures that are common and eventually. Interest rates are gonna go up and when they stopped printing money Mike is as we talk about all the time. How we're gonna keep pace with inflation and retire. And I thyroid it's coming and it's it's -- freight train with a big red X payment on its side in -- people better be prepared forward because you know if you go on in CNBC Fox Business. You know watch those shows throughout the day and you'll see many experts on their talking about. This isn't 56 years away I mean this is pretty eminent so. Well again that's that's where you start looking it at managing risk in and exciting in and trying to create an income stream I mean for example Social Security is indexed to inflation. And -- look back at what happened after 2008 I believe there was a two year period there where. They didn't get the inflation to -- to increase -- -- and that was a huge deals so when you look at the ability for the government to manage social security and them to have an inflation adjustment factor if you don't have that factored into your retirement plan. 101000 dollars today in ten years is now worth 101000 dollars purchasing -- And I think that's the key thing that people need to remember is that as their CD start going up there's this false sense of security because. In and that's what's gonna happen as inflation rises interest rates are gonna rise in deeper look cancer well it's okay because my CD that I was only earning. -- half a percent on a 1% one point 2% on. Well that's okay Mike Kelly because now I'm getting 3% or three and a half or four while the problem is if you look at inflation. Going up at the same time inflation erodes your purchasing power they're for the fact that you're earning three if inflation is four or five. Then you know you're you're still on the whole basically and a lot of people don't recognize that. And I think Warren Buffett calls it inflation is the silent killer and there's a reason why we don't see. It's pretty amazing because people have such short memories think back to when a car cost just one years ago. How much was -- twenty years yeah how much was gas just twenty years ago and people are living so much longer and retirement now they can spend 2030 years in retirement. And so many people are missing that. Well in part of the problem that we talk about all the time you know in in our offices we counsel clients about you know preparing for retirement are getting ready to head -- -- You know we're pretty candid with them about what's realistic and what's not. And you know I think and I think until just some mutations have a sign there's on this is on the beautician not a magician -- -- -- -- -- -- -- Well definitely the definition of inflation is paying fifteen dollars for. A ten dollar here Kennedy used to get for five when you had here exactly -- so basically that's wisely I -- you know but again and that's why would that we're no different you have to take into account. There's really three things -- your assets how much money are you gonna have to create the income. What are your needs okay and what you will -- if your assets don't green enough income to cover your needs. Your wants are up to went. And if you don't factor in the fact the year knead your your food your gas your heating bill York. Everything else that you spend is going up at a greater rate in return you're getting on your assets you got a problem. -- of the big problem. And that's what Kelley Carter and every one over -- retirement planning group offer. They offer solutions to make sure the you have to retirement you are dreaming of I mean the important things you need to be worrying about is are you going to make your tee time. Those important things to worry about traveling for internationally or domestically these are the things that you can worry about are reaching out to Kelley Carter. This is a tremendous opportunity to -- providing with people listening to show right now which need to calm before the end of the show. You can provide yourself with a sustainable inflation adjusted income. For the rest of your life call this number right now 8887672122. That's 88876721. Tweets -- you can set up a meeting with Kelly and -- free no obligation of personalized financial blueprint. It's a complete overview of your complete retirement plan. And overall financial future but you need to call before the end of the show again this is no cost no obligation this is like a 600 dollar. Kelly your offers yeah that's correct and basically what it's designed to do is to kind of get them we called the retirement readiness report. Where are you in a snapshot today -- you wanted to -- and what we talk about is how we fill that gap. Because your your social security and the other pension income if you have lucky enough to have it is a whole another discussion we can have a little bit. We come up short that's what we have to use that asset model to fill again that's that gap production -- GAAP income planning we're gonna talk. Call now 88876721. -- to this is a perfect opportunity for you to literally take the stress off your financial future off your shoulders. And enjoy your retirement. In 87672122. I'm -- whipped along with Kelley Carter a deacon retirement planning group and also Michael rusty the president of Medallion Financial distributors Michael the designer of numerous financial products over the past twenty years. And -- help literally thousands of people. Rescue the retirement. Yeah we've we've been doing this for over 25 years and again we've seen an evolution in my if you could jumping and give us a little background on kind of where. The industry has come from and where we are today and what the concerns are we start designing those products yeah I think one of the great things about our business is the fact that we always are responding. To the needs of retirees. In people who are approaching that age so if you go back and look at how products have evolved over the last. You know 1520 years it really is amazing where we were at 1520 years ago -- today because today. You know for all those people listening when they come -- and meet with Kelly and his group. What they now have the ability to do that they didn't have ten or fifteen or twenty years ago is to actually reposition assets. And put them in such a way place in the such a way. Where those assets are gonna grow. And then on I guarantee basis and then when money starts coming how. That we can have those payments adjusted for inflation and I can tell you just 345. Years ago -- These products didn't exist I mean we recognize there was a need we recognize because we listen to the consumer we listened to the client who was saying you know. That's great that you're gonna give me this income stream but what about inflation you know milk doesn't cost the same thing as it did five years ago or as your to your point earlier cars and everything also. The bottom line is these prices are gonna rice. And it's great to give someone a great pay out of 87. You're gonna live it's statistically you're gonna live until -- 88. Worst case scenario and if you're healthy. You know you it's it's not unfathomable what you could be living to be a hundred. There's always a Linear ninety's for -- yeah yeah -- and a and a healthy -- hell right now active yeah. And you know that's the problem and because not all financial -- created equals no. Most advisors are still using an old accumulation model which talked about. They built a model that's a Linear they talk about your average returns going to be 8% a year well over 3040 year period that's true. However the recovery from 2008 -- right now or at an all time line as market most people were seen have only made back what they lost great. So if you factor in inflation in the last nine years they've actually lost money yeah. And I think the other thing that's important is that the people listening should understand is sequence greater returns. That is why and it's not something that's very common among certain if you Google sequence where -- -- -- would come out to be honest with you but I will tell you this if you reach out to Kelly and his group. They can actually sit down and show you because the most important. Part of retirement is the first three or four years OK and what I mean by that -- is that if you're using modern portfolio of there you're trying to. Manage a portfolio and derive income from. Aside from the fact that can be a very. A lot of anxiety every day or every month when you open up your statements OK when we have no guarantees re rolling the dice every month you're playing in the biggest casino in the world callable stock market. And you're relying on your broker to basically extract 45%. Off of those returns every year to to sustain your lifestyle. It becomes challenging so sequence -- returns. If you're gonna pop pop up market in your drawing down 45%. Well that's easy you know anyone can do that. But when what Kelly can show you is sequence -- returns if you reverse. Three or four good years and let's say we go back and we let's say you retire and it's 2007. And also and you go through the end of 2007 beginning at 20082009. And also in your your portfolio loses thirty or 40%. In junior still taken down that 45%. And integrity and a lot of sleepless nights. And we've seen -- we we have clients come and in that we're gonna retire in 2008. Because the market was at an all time high then. And from that bubble now they're just now back to where they start -- again came in July -- way. And almost two million dollars in his account ready to retire. We we sat down we've looked it is -- is ominous -- market longer on the I'm not gonna restructure right now I can I can manages. While I can tell you we just met about two months ago five years later. And his two million dropped almost a million dollars and is now back up to almost two million again. He's five years old he was sixty threes and he's now 68 going to pro feels like we're on the path to me -- another stock market hits now you know you that you just can't control what's going on in today's market I mean you know you look at the job -- you look at the the wonderful. System of health care and good or bad it needs to be fixed but this is not the answer. Elected QE3 year what QE we I don't -- -- I'm not you know they're pretty ideally the old demographic machines used to turn -- just -- money out faster -- than 808585. Billion a -- -- another buying back when that stops the markets -- -- -- that -- -- got a problem every. Time to make a hint that they're gonna stop right -- say well I you know things are kind of warming up a little bit and you know we might point what do the markets -- I mean they heard a you know what I don't correct but they certainly have a hiccup. They certainly go down for a couple days and then. Some great report comes out or someone tsunami we will keep different presses -- moving forward you know it's just how volatile everything is right now. And that's why you need someone like Kelley Carter to take the volatility out. Get you some guarantees gets you on the path and make sure you can take the financial worry offer your shoulders there's no one size fits all when it comes to retirement planning. With people living longer and longer he can't guess how much money you'll need during retirement you need guarantees. And right now Kelley Carter is offering you an opportunity to provide yourself with a sustainable inflation adjusted income for the rest of your life. You just need to call before the end of the show to take advantage of this very special offer 8887672122. That's 8887672220. To set up a meeting with Kelly got a couple of different offices in San Diego that's correct you've got a couple offices in Texas. And -- also provides you with a free no obligation personalized financial blueprint and Kelly would you like to talk about what exactly the blue printers. -- the the blueprint is gonna basically do five things are gonna help you decide on -- -- income that you want and need to generate during retirement. How effectively your current assets your planning going to be able to generate the amount of income -- -- For that Claudia life and in this discrepancy of the gap between your guaranteed income and income when need to create. Look at the opportunities to make decisions about. Guaranteeing net income and guaranteeing the principal. And then really looking at what fits for you again that's not it's not that one size fits all you talked about it's very specific. To each individual or each individual couple that that has different concerns and needs. And this is a tremendous offer ladies and gentlemen again Kelly is offering this for anyone that calls before the end of the show. There's no cost there's no obligation. Just cancers and peace of mind when it comes to retirement call 8887672122. At 8887672122. This is retirement destiny radio I'm Ramsey went along with Kelley Carter of the -- retirement planning group. Also Michael rusty the president of Medallion Financial distributors. -- designed numerous financial products over the past twenty years and today Kelly's helped literally thousands and thousands of people secure their retirement. And today we're talking about inflation adjusted retirement income and Kelly do you want to run down the four major risks of -- sustainable inflation -- retirement income. Yeah we talk about that sustainable inflation adjusted income we have to consider four pieces -- that one of them is what we call equity sequence of return drifts which we'll talk about. A bond -- sequence of returns risk which mr. Buffett's been talking about substantially all -- someone recently isn't it absolutely the sequence of inflation and and longevity how long you gonna live what's your. What's your expectations so you know those -- the four keys we talk about that equity sequence of returned risk. Again we always talk about. Managing risk Mike in and one of the things that we see a lot is points command. Is that they think they're diversified because they've narrow hole being portfolio different mutual funds. But there's no risk diversification. It's diversified across asset classes that are completely different discussion. Yeah it is truly is I think when you look at. What we've been so -- -- to just buying into idea us. You know whether the typical stock brokers -- that are they've been following this this this this theory for a very very long time. And it really is no longer applicable. I mean even have Warren Buffett. Basically saying you know he would like to go back to the days when you know you actually bought the whole. He was but today with people you know with their iPhone having the ability to trade you know a million shares of stock in a click of a finger on your iPhone. You know you don't have that anymore there either or either doing it cribs. And I'm not seeing the commercials up. -- that's important because it's it's -- instantaneous. And the information that's available today. So what people understand is if you're 65 and you retire tomorrow in the market immediately starts down 30% trend. You're not put any more money in the bucket that's equity sequence of returns to do the time you retire and the risk. Parameters within the portfolio due to hit you want you'll never recover. -- it's it's it's devastating it truly is but and again the reason why you. You guys asked me to be on the show today you know other than in the face for radio. It does is -- -- -- and a voice for -- pattern is that we've responded to this by designing financial vehicles that basically. You know allow you to put your head on pillow every night. Go to sleep and not have that anxiety worrying about you know what's the market gonna do don't have to -- -- dropped 30% or 30%. You don't have to worry about that with the type of products we design Kelly and his group have embraced the year basically called the sandman have. Santa Claus salmon and now he helps people rest okay. Well again and part of the expertise that Mike brings our practice in in in providing this those kinds of insights. Is understanding you know when you talk about equity secrets it turns at the the equity side you look at the bond yields sequence -- returns were the lowest interest rate environment you've never been -- history in this country. And printing money faster -- we can spend it and when you look at an unusually low bond yield market. When we start to see interest rates rise which by the way I can't tell you win but it well. A 1% rise in interest rates can be a 10% decrease in value in the bond market because of the inverse relationship you know and you we're gonna see all of us. All those bond portfolios that the stock brokers said you don't have any risk there is no risk you don't worry about it's not gonna. You know -- -- get what they're talking about in all fairness is that when you buy a bond in the assuming you buy new issue blonde you be buying that power. Right you're buying it stated value and it will mature at some point. But. Do you know if that doesn't help the anxiety level when you open up your statement and you see that that value of the bonds before matures. You know it's just like a stock goes up goes down in well in today's low interest rate environment can only my clients don't wanna lock in a thirty year bond 3% bright and California municipal bonds I mean that's it's literally jump -- so. You got a lot of inherent risk that most people don't realize. And most 65 girls are on to lock up their money for thirty years in a bond. And seem richer while I'm just wondering how those to treat bonds are working people write about how I. So again those are that the bond yields secrets -- returns that we talk about it again if the current retirees withdrawing in inflation adjusted 4%. Out of their portfolio there's a 57%. Chance and I 757%. Chance that they may run out of money. And that's just as it is unbelievable and that's defined as a retirement account completely running out of my nephew and a husband wife for you got a difference in age. We're seeing a lot of clients commit where the lights 51015 years younger we got -- longevity issues that point. And I can tell you right now ram if you go back to 2000 right. We have numerous people that had really done well in the market in late ninety's. Then of course 20020012002. Came along and just wiped everything out. Of course if you had. The -- faulted state in the market where you actually didn't think the sky was falling and finally -- you stayed in the market and you recovered. Up until 2008 only to get the you know the door slammed in your face again. You know the bottom line is that there's there's just so much risk. Being their we've seen clients literally. Go broke because they were pulling that 45%. Off that in sustaining two big losses in such a short period of time. You know so this isn't like this doesn't scare tactic. Okay this is and get back then there were a lot of other options. If your money was in in a retirement type mode where -- pulling money off you can have a lot of options back then. Today because of the evolution of the products we design there are other alternatives you don't have to be stock. And and have all that anxiety by being in the marketing you know trying to you know -- 45% off of -- -- playing the equity -- plane casino basically. -- of the world's biggest casino but again it's a balance and and you know it's not all eggs all in one bass carruthers but it's a matter of protecting the assets and decrease the income. In and you can go play with the rest of the money because now you've got a sustainable guaranteed lifetime income. And you know the concern is if we see higher than normal inflation coming down the path. Which is in the foreseeable future. It would seem prudent understand the major cause and that is the rapid growth in the money supply. The more they print the last it's worth which is going to cause potentially hyper inflation and interest rates have to start rise right. And if that's a result of them aggressively bring money into the system. There are ways to inherently protect your principal and your income and index it to that inflation. For some of them a future that we don't know win but we notes go long make no mistake about it the money that's being printed it just hasn't been released yeah it's being stored up. It's gonna in its furniture while now and that's why we've seen you know slight interest rate rise but when money really starts coming out. Watch out I don't know if we have hyperinflation but there's no doubt we're gonna have double digit inflation and low probability. So what you guys are saying it's a good time to invest in Xerox thing could happen. If your threaten money for -- all right so we've gone over two of the risks with inflation and Kelly went continuing number three. Yeah again we talk about inflation having an impact on your retirement savings and your income the third one that risk that we talked about analyze the sequence of inflation risk now this is different from the equity risk. In a sense that you know most people don't really factored this in when you look at the an example of inflation through history. You can appropriate question whether the United States is gonna sustain a high inflation experienced in the seventies and eighties in the near future. Could that happen yes is inflation here. How many -- -- to -- the last couple years the last couple months about a gallon of milk about one heavens it. Five dollars per gallon -- primarily by for dollar dining. So you look at inflation it's already here. And it's already crept in look at the price aghast at the price of bread you look at the things as staples that we use everyday healthcare healthcare. That that's off the chart and you add inflation and inflation inherent in every one of those aspects of those categories. So we have to know the historic rate of inflation over the last forty years. Has been averaging four point 5%. Then we need our our income to keep pace with that kind of inflation so that sequence of inflation if we retired a year. And we see inflation the next three in Euro level income. That's the sequence of inflation risk and again -- that's why. The products and structures that you design. Take that into camp. Yeah I exactly when we start looking at these income for life type writers. Initially we realized that we had not taken that into consideration. We went back to the drawing board we said okay you know that's not acceptable people are living longer and longer. We cannot design a product where were not adjusting -- payment at least to match inflation. And we've been able to do that so now when a client goes into these products they basically are sure are you basically for their lifetime. That every year where there's inflation their payment is going to be -- justice. So it definitely gives people -- lot of comfort knowing that OK I don't have to worry from game 5000 today. You know we have 3% inflation over the next X number of years my payments being adjusted for inflation and that's a pretty good feeling knowing. Well and then you factor in the last risk guys which is longevity risk and and none of us have a crystal ball. You know we don't know when I went was just very close yeah. Down a permanent flocks of Clyde I like all right -- cloudy crystal ball which is actually pretty good analogy because that's really what we. You know nobody really knows what's going on and by trying to guestimate life expectancy part of the problem. He is a traditional planning always said well this is life expectancy it's 83 for female 81 for a -- I can tell you have to declines -- blown through those numbers. And thank god we have done this planning and taken into account lifetime. Income what do you live 200. Whether you live to 75. We don't have -- that crystal ball so longevity risk. Is critical and I just jump in -- real quick because I think it's really really important that -- more worried about dying they're worried about -- living their money. And and that's a real concern and that's something that the products that we design help eliminate because our products that we design -- They the income stream will last as long as you live whether that's 78. Or you're 8898 -- hunter mate I don't care what price. These are guaranteed to last for your lifetime and that's been a substantial change in the way we design products and and where we've gone. Compared were released today. And that's critical as we get into the you know that proactive vs reactive and you know being able to look at options insane what's better. What works what Frances is not a one size fits all type -- point so I think that's important you understand those risk we can address them and we can mitigate. Ladies and gentlemen it's more important to be proactive then reactive when it comes to addressing these risks think about this. How nice would it be to never worry about running out of money during retirement ever. With the help Kelley Carter in the -- retirement planning group. You can plan a successful worry free financial future don't miss this opportunity to provide yourself with sustainable inflation adjusted income for the rest of your life. -- offering to sit down -- -- in his office here a couple of different locations in San Diego we get North County believe they say -- we have Escondido San Diego on -- and also in Texas there's Austin for the folks listen in Texas right now. So this is your chance right now to set up a meeting at no cost no obligation meeting where you can get your financial futures set. Kelly will also provide you with your personalized financial blueprint which you need to call right now. 88876721. Tweets to call now 8887672122. That's 88876721. Tweets to this can be the most important call you ever make you can find out more about us online retirement destiny dot com. You can also -- us an email info retirement destiny dot com. Kelley Carter thank you very much for your time thank -- -- thanks Mike for joining us today -- Carter of the -- retirement planning group also Michael rusty president of the giant financial distributors -- designed numerous financial products over the past twenty years together these gentlemen have a wealth of knowledge you can tap into right now. With no cost and no obligation to call this number 88. 767. When he went 22 that's 88876720. Points when he too. And always online retirement destiny dot com.

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