Money Strategies Using Something Guaranteed Safe®

MY MOST POPULAR STRATEGY

Before I discuss my most popular strategy, let’s review the primary reasons my strategies have earned me a national reputation!  Nearly everyone seeking my advice says they want to be safe.  Safety is defined as never losing any money.  But, the real issue is a dependable lifetime income and never running out of money.  There are thousands of advisors able to offer a solution, but I am the only adviser offering a written retirement plan with strategies specifically designed for the next great depression.  Plus, my plans offer instructions on how to manage the strategy.  My clients are told what to do, how to do it, and most importantly, when to do it. 

People will attempt to maintain the principal by using CDs and spending only the interest.  But, interest rates are often too low to support a dependable lifetime income.  Likewise, plans using long-term bonds fail because of the limited access to the money.  Every time money is needed for extras, part of the bond portfolio must be sold and future income reduced.  A plan based on stocks, mutual funds, and variable annuity cannot maintain the principal in the next great depression; therefore, cannot guarantee a dependable income.  Thus, the only plan which can guarantee safety and a dependable lifetime income uses fixed annuities or fixed indexed annuities.   

Many advisors recommend fixed indexed annuities.  However, most of the fixed indexed annuities are not designed for the next great depression.  Their presentation will be very convincing; but the plan objectives may not achieved during a fifteen year depression.  As discussed in my DVD, the fixed indexed annuity offers two interest rate options.  Their presentation stresses the potential double-digit stock market-linked interest rates.  When, in fact, double digit indexed interest rates have only been achieved in two of the past ten years.  In four of the past ten years, the rate was zero, and in the remaining four years the rate was about 6%.  Thus, the only difference between a plan based on mutual funds and a plan based on an indexed interest rates is the safety of principal.  Unless the annuity is properly managed, the plan is likely to fail.  Harry Dent forecasts the fixed interest rate should be selected in nine of the fifteen years; starting immediately.  If you become one of my clients, your written retirement plan will not only keep your money safe, but it will offer instructions on how to maximize the income.         

MY MOST POPULAR GUARANTEED STRATEGY

Mr. and Mrs. Valued Client are retiring next year.  He has been working for the same company for over twenty years.  Although he lost money recently, he still has $750,000 in his 401(k).  For temporary safekeeping, the $750,000 was moved to a money market account, even though his financial planner advised against the move.  While living the good life, they accumulated another $250,000 in a brokerage account.  It’s still losing money.  He is 69-years old and she is 67-years old.  They are in good health, do not own a long-term care insurance policy, and he still travels extensively for his employer.  Their social security brings in $35,000 a year, plus his $100,000 salary.  You would think this couple was set for life, unless they lost more money in the stock market during the next great depression.  How do you replace the current $100,000 salary after retirement?

The plan suggested by his financial planner was to diversify the $1,000,000 in stocks, mutual funds, bonds, and variable annuities; perhaps, investments around the world.  Much of the money would be readily available to spend, but financial planners are forbidden from forecasting future performance.  They can illustrate projections based on past performance and assumed interest rates.  If the portfolio assumes a 6% average return, the advisor may illustrate a 5% withdrawal!  But, advisors will rarely discuss a portfolio losing money during the next great depression!

Their banker may suggest using a CD as a safe retirement plan.  Let’s say the current CD rate is 3.75%.  The banker plan will probably suggest starting retirement with the planned $37,500 income.  When CD rates changed, the income would be adjusted.  But, Harry Dent forecasts the CD rate will drop to near zero by late 2012.  So, CDs cannot generate a dependable lifetime income!  Plus, if they need extra money, they will be forced to pay a penalty for early withdrawal.

Other advisors offering fixed indexed annuities may recommend a guaranteed lifetime income rider.  For a fee the annuity can be triggered after the first year for a lifetime income, even if the account value drops to zero.  It sounds tempting until the client realizes the high potential the account value will actually drop to zero around the twentieth year.  Thousands of riders have been sold; thus, at some point, many income riders will become a huge burden on the company’s cash reserves.  Two companies offer a 10% premium bonus and a lifetime income rider.  During the next great depression the annuity will earn between 1% and 2%.  The rider income will be sucking out 5% over the next 20 to 30 years. 

My written retirement plan clearly stated the current $100,000 salary could not be replaced and still met the planned objectives.  Further, their plan required a $75,000 cash reserve in a bank account, readily available for an emergency. 

His employer’s 401(k) plan permitted an in-service roll-over to a traditional IRA prior to retirement.  The plan recommended two fixed indexed annuity accounts, specifically designed for the next great depression.  The company selected is rated “A” by A. M. Best, “A3” by Moody, “A” by Standard & Poor’s, and “A+” by Fitch.  It is an annuity used for part of my personal retirement plan. 

The desired features included an immediate 6.25% premium bonus to enhance the plan; a 3% minimum guaranteed fixed interest rate, and a variety of indexed interest rate options.  It has a favorable 10-year surrender period, low surrender charges (waived at death and in the event of a long-term care situation), and systematic monthly withdrawals without penalty.  The following table illustrates the assets available for the plan:

         Account Name                           Amount                W/Bonus

         Joint Account                             175,000                185,938

         His IRA Roll-Over                      750,000                796,875

         Total                                          925,000                982,813  

The following table assumes the current 3.25% fixed interest rate in the first year and a 3% minimum guaranteed fixed interest rate thereafter.   

            Year-End              Withdrawal       Min. Guaranteed Value

                1                             0                        1,014,754

                2                        50,000                       993,697

              10                        50,000                       800,830

              20                        50,000                       485,859

              30                        50,000                         62,564

Now, Harry Dent forecasts the stock market will start a recovery at the end of 2012 through 2017.  So, the plan instructed them to switch from the fixed interest rate option to the indexed interest rate option at the end of 2012.  They will stay in the indexed interest rate until late 2017.  In 2018 through 2022, they were instructed to return to the fixed interest rate.  Finally, starting in 2023 and thereafter, the indexed interest rate will be selected once again.     

How would such selections change the account values?  I don’t know!  But, with a 6% indexed interest rate and a 3% fixed interest rate, the following table illustrates the potential difference.     

              Year-End              Withdrawal       Min. Guaranteed Value

                  1                             0                        1,014,754

                  2                        50,000                       993,697

                10                        50,000                       949,767

                20                        50,000                       841,035

                30                        50,000                       807,584

Do you see the difference?  The first table illustrates the guaranteed interest rates, and the second table illustrates a plan based on Harry Dent’s forecast and the corresponding interest rate option.  The actual plan is easy to manage.  Once implemented the client no longer needs me.  Their only job is to follow my instructions and spend the money!

Now, they can implement my plan knowing your money will be safe and the money will not run out for the next 30+ years.  But, if the stock market rises and falls in the forecasted pattern, the plan can perform better.

This plan is flexible.  They can start, stop or change the amount of the withdrawals at any time.  The plan expects to perform better than guaranteed.  When they earn more money, they will have more money and the money will last longer.  Upon death, the value of the annuities will pass to their beneficiaries.  

You could argue the inflation issue.  Well, there’s no inflation during a depression.  If inflation occurs during the recovery periods, the indexed interest rate is designed permit larger withdrawals.  This plan provides safety, income, easy management, and a lifetime income, no matter what happens!

Once you have watched my DVD and read my two reports, it’s time to call (888) 777-8685 for an appointment to meet with me in the privacy of your own home.  I will prepare your personalized written retirement plan.  You’re only a phone call away!