Why Your Retirement Plan Sucks & How To Fix it - Walter Young
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- Опубліковано 10 лип 2024
- In this BetterWealth podcast, I talk with the author of The 5th Option, Walter Young. Walter presents why so many people's retirement plans fail by following normal financial advice and strategies. Walter debunks these common strategies and presents a 5th option for retirement no one is talking about.
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*This video is for entertainment purposes only and is not financial or legal advice.
Financial Advice Disclaimer: All content on this channel is for education, discussion, and illustrative purposes only and should not be construed as professional financial advice or recommendation. Should you need such advice, consult a licensed financial or tax advisor. No guarantee is given regarding the accuracy of the information on this channel. Neither host nor guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. - Розваги
"You must turn your balance sheet into cash flow." That's the money statement right there.
This was a great conversation! This is what retirement planning is all about! What is the income gap, and how do you solve it?
One thing I like about IUL is the opportunity for it to accumulate more money and the overloan protection rider. You cannot cause it to lapse with that rider; however, you could be in trouble if you depend on the policy for income. So, I like that it also has a fixed loan option. I can have it accumulate more, then have tax-free, risk-free loans for income. Is the income payout less? Yes, but not by much. I think it's well worth it from a risk management standpoint. With fixed loans, it can basically serve the same purpose as whole life as a volatility buffer asset, provide a death benefit, and potentially accelerate benefits for long term care.
But, I also really like whole life. It's predictable and stable and will do what you want it to do, with very little management or effort.
Thanks for the info
Purchased a WL policy at 60... because I am still healthy and I want more options during retirement...
Just Bought the book on kindle now. Thanks
Love the conversation gentlemen.
Thanks so much for watching!
Great video, very eye opening
Thank you! Glad it was valuable for you!
I understand the math and concepts brought up here, but the math also tells a story that whole life insurance is a trash product. On many bases.if you don't want to pull out your nest egg and afraid of that, it makes a powerful statement for dividend funds. If you take the same amount of money you would for whole life payments, and invest in dividend funds then you can live off of those dividend payments and not sell stocks when it is down. They are also infamously less volatile
I hope they were able to accelerate the depreciation on that tower. That's crazy.
Yes-think what others are not doing- That is why I became a police officer for over 30 years to get a CALPERS annual life time pension-most people 40 years ago wasn’t interested in working for the city or state and they didn’t look long term -some even doubted the value of my pension-yet it was in writing based on a formula!
@barnaby thank you for your service. You deserve to have that
Appreciated this talk, I've been coming to similar conclusions. Regarding cap rates, my mom's mature fixed Indexed annuity (FIA) has lowered the cap rates to 1.25% (annual point-to-point) and 0.85% monthly sum. Monthly sum is a risk because down months count against up months, but still has been her highest performer. But... they're trying to take away her highest performing index this year. Leaves me with a negative impression of FIAs: high commission, big promises, then its a bait and switch? Surrender value is too small to 1035 exchange due to rider charge lock in. I suspect your book extolls the non-call-option, fixed products where its all about the guarantees.
I'm sorry to hear that. I would look at a 1035 if at all possible. We have been moving a lot of old FIAs out of low cap products into newer, higher cap products. Many of them still have a surrender fee, so we have been utilizing products that have a premium bonus to offset the fee (and usually leave the client better off from the start).
That said, that may not be an option. In my experience, the super low-cap FIAs also come with a guaranteed income rider. Sometimes, it just makes sense to turn on the income. Once the guaranteed income rider is activated, the cash value and cap rates of the annuity become mostly irrelevant. Just some things to think about!
@@DallinBunnell she turned on the income stream 2 years ago. Maybe her FIA is unusual, her lifetime income increases with the market, just with these smaller caps. Maybe that wasn't profitable. Last year it was zero (our hero), but this year her lifetime income payments went up 5%, due to the monthly cap being met almost every month. Maybe that's why they're trying to eliminate the best index...
@jaycox1836 oh OK. You have a performance based income rider. This is a little less common, but still a decent strategy. The idea is your income will grow with an increase in thr index. Your cash value do doesn't matter a ton though. Eventually, you'll have a 0 cash value and whatever the income value grew to will remain forever. The insurance company still has to guarantee the income, so lower caps are one way to control the costs for the guarantee.
Another great conversation. I wonder if anyone uses a MEC line funded UL with 3% rate on the basic Account value, not IUL, end of year one cash value showing 75% of premium, for their bond portion of a stock% / bond% portfolio, and then combo that with another whole life for IBC. I think there is room for all of that as well. Winners only!❤❤
I have a UL policy getting a guaranteed 3% years 1-9, 4% 10-19, and 5% 20+. Borrowing is also fixed at 4% so in years 10-19, borrowing is break even and years 20+ I am making a spread no matter what.
@@9thebigcoolthat’s what I am referring to. Who is it with, how old is the policy and do they allow you to max fund it?
@@siulanainad my policy is now 1 year old. I have it through State Farm. I am allowed to max fund it and the policy/loan repayments can be made on a credit card without a fee as part of the normal monthly insurance.
@@9thebigcool wow. Do you know if it is their standard UL policy or if it has another name? If you don’t mind me asking, what age range are you in?
@@siulanainad I am in my mid 20s. As far as I am aware they have Term, UL, IUL, and 10 year whole life. I use the UL since its more flexible.