Understanding Five Retirement Planning ConceptsDale Johnsen 818-620-8171 CA 0H46467

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1. Retirement Income Planning

Paradigm shift from accumulation to distribution

Goal: limit financial risk through asset allocation and sustainable withdrawal rates (efficient frontier stress test)

Optimum strategy for sequencing liquidation of funds

Need: confidence you will never run out of money despite new risks (market/inflation + long-term illness/death)

Paradigm Shift

?

Power of Indexing with No Losses

Green Money vs. Red Money

Three Colors of Money

_____% _____% _____%

Examples of Green Payments

Social Security

Company Pensions

Structured Settlements

Lottery Payouts

Fixed Index Annuity

Structured Cash Flow (5-10 years only)

Afixedsumofmoneypaidtosomeoneregularlyfortherestoftheirlife

3. Social Security Timing

Earliest: age 62 (75%) 40% choose this

“Full” age 66-67 (100%)

Latest: age 70 (132%) 5% choose this

For each year of delay, you gain 8% + inflation for life

Keys: Longevity + Alternate income for ages 62-70

When to Start Payments?

When to Start Payments?

4. Long Term Care Funding

70% will need LTC assistance eventually

Only 10% have any kind of LTC insurance

Average cost is $94K/year ($50K if at home) doubles by 2035

68% worry about how they’ll pay for it

Medicare will only cover 100 days (in facility only)

4. Long Term Care Funding

4. Long Term Care Funding

After age 60, premiums get more expensive

It’s now more difficult to qualify for LTC insurance

Alternate solutions for “anti-nursing home” insurance:

1. Life insurance + LTC hybrid (6X)

2. Annuity + LTC hybrid (3X)

If you assign NO dollars to LTC costs, you’ve potentially assigned ALL your dollars to LTC costs

5. Moderate growth- minuscule risk

Stock Market = high risk for potential high growth (RED)

CDs = no risk and almost no growth (YELLOW)

*Alternatives = moderate growth with minuscule risk (GREEN)

GREEN safe alternatives >> Bonds or Real Estate

5. Moderate growth- minuscule risk

5. Moderate growth-minuscule risk

Option 1: 6-7 years with 10% simple gain (65% total)

Option 2: 5-10 years with 7-8% gain (paid out monthly)

Option 3: 10-14 years, 5-7% annualized, with guarantees

Option 4: Triple value of assets for Long Term Care

Option 5: 5 years with 3.15% guaranteed (MYGA)

Option 6: 5-7 years with up to 6.5% in CD (0.15% min)

Reviewing the Paradigm Shift

Cash

Home Equity

Stock Market(IRA, 401k, 403b, SEP, Mutual Funds, Bonds)

Cash

Stock Market

Home Equity+ 7% Gains Without Risk+ Triple Value for LTC

+ Lifetime Income Guaranteed

Which of these five concepts are most important to You?

1. Retirement Income Planning

2.Three Colors of Money

3.Social Security Timing

4.Long Term Care Funding

5.Moderate Growth with Mini Risk

(alternatives paths to achieve 6-10% growth)

Name: _________________________________________

Cell: _______________ Email:_____________________Best day/time/place to meet: _______________________

_______________________________________________Which of the six options interest you the most? ____ ____

Comments: _____________________________________

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