Retirement puzzle

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“Solving the Re.rement Puzzle” is for informa.onal purposes only. All numbers and calcula:ons are not product specific and are based on hypothe:cal performance. This presenta:on is not designed to give investment, tax, or legal advice. You should always consult with a licensed professional about your

specific situa:on to determine the best fit for your specific situa:on to assess your specific re:rement needs.

Presented By:

What You’ve Been Taught ABOUT INVESTMENT OPTIONS

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Assurety Incorporated Michael Nixon 866-755-9628 [email protected] www.assuretyinc.com



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Are these your only 2 op.ons?

Fixed Lower Rates

No Principal Risk

CD’s Money Market Fixed Annui?es

Variable Higher Poten?al

100% Principal Risk

Stocks Mutual Funds

Variable Annui?es

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Fixed Lower Rates

No Principal Risk

CD’s Money Market Fixed Annui?es

Variable Higher Poten?al

100% Principal Risk

Stocks Mutual Funds

Variable Annui?es

How to combine the best of both?

“HYBRID” Higher Poten?al No Principal Risk

Combines best aspects of Fixed and Variable op?ons “Power of Indexing”

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Hybrid Products Use “Indexing” •  What is Indexing? Increased Upside w/No Risk –  You earn interest based on movement of index – No risk to your principal, gains are protected – Greater growth poten?al than fixed assets

Let’s take a closer look at how it works…

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Have You Heard This Quote? The Two Rules of Inves.ng 1.  Don’t Lose Money 2.  Don’t Forget Rule #1

-‐Warren BuffeM When solving your personal re:rement puzzle, not losing money is the cornerstone for guaranteeing predictable life:me income.

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•  48 Years Old •  Real Estate Broker •  $80,000/yr. Income •  Mary Has Concerns

–  Wants to Re?re at 65 –  SSI? When? How Much? –  Has $225,000 in her 401(k) –  Needs $80,000/yr Income for Life –  Can afford an addi?onal $10k/yr for

the next 15 years

Let’s Talk About Mary Simpson

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What is Mary’s Income Gap?

INCOME NEED Re.re at Age 67

$80,000/yr

$225,000 401(k) Fixed Annuity will

guarantee $37,000/yr.

Social Security Es:mated Social

Security $15,000/yr.

INCOME GAP

Re.re at Age 67 $28,000/yr

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Where Should Mary Put Her Money?

FIXED ACCOUNT 3% Annual Return

$10,000/yr Grows to

$234,100

VARIABLE ACCOUNT

Previous 17 year Return $10,000/yr Grows to

$243,900

INDEXED UL PLAN

Previous 17 Year Return $10,000/yr Grows to

$269,700

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How Much Income Will Mary Get?

FIXED ACCOUNT Income Produced Based on 5% Rule

$11,700

VARIABLE ACCOUNT Income Produced Based on 5% Rule

$12,195

INDEXED UL PLAN Income Produced

Based on Illustra?on

$30,700

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Let’s Talk About Bob Wilson •  54 Years Old •  Small Business Owner •  $275,000 Income •  Bob Has Concerns

–  Wants to Re?re at 70 –  SSI? When? How Much? –  Used to “the Lifestyle” –  401k/IRA Limita?ons (Maxed) –  $925k Current IRA/401k Balance –  Can contribute $100k/yr for the

next 5 years while business is good –  Needs $275,000 Income for Life

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What is Bob’s Income Gap?

INCOME NEED Re.re at Age 70 $275,000/yr

$925,000 IRA/401k Fixed Annuity will

guarantee $136,000/yr.

Social Security Es:mated Social

Security $40,000/yr.

INCOME GAP

Re.re at Age 70 $99,000/yr

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Where Should Bob Put His Money?

FIXED ACCOUNT 3% Annual Return

$100,000/yr Grows to

$779,664

VARIABLE ACCOUNT

Previous 16 year Return $100,000/yr Grows to

$1,059,503

INDEXED UL PLAN

Previous 16 Year Return $100,000/yr Grows to

$986,856

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How Much Income Will Bob Get?

FIXED ACCOUNT Income Produced Based on 5% Rule

$38,983

VARIABLE ACCOUNT Income Produced Based on 5% Rule

$52,975

INDEXED UL PLAN Income Produced

Based on Illustra?on

$106,136

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Retirement puzzle

Economy & Finance

Transcript of Retirement puzzle