Retirement Income Planning - An Elementary Math Equation

Our team at Income For Life LLC is of the view that proper retirement income planning is a simple elementary math equation that anyone can do on their own. 

The problem – and confusion – is not with the equation. The confusion lies in where the numbers line up inside the equation. 

You can have the easiest math equation possible, but if you do not know where the numbers line up inside the equation, the problem becomes much more difficult – if not impossible – to solve.

Our Goal: To simplify your retirement math equation for you by using the same assumptions that are expressed to you from Wall Street media – but we are going to present these assumptions in a way that you have not seen before to validate a simple fact: that losses hurt much more than gains help.

Request our PDF for your own copy of Retirement Income Planning - An Elementary Math Equation today.

Matt Nelson, president

Income For Life LLC

877-284-8929 toll free

www.IncomeForLife.org

Retirement Income.  Simplified.

2030: The Year Retirement Ends, courtesy of Time Magazine

(TIME Magazine, June 30 2014 issue) Public pensions are underfunded. Fewer than half of all private-sector workers enroll in a formal savings plan, and Social Security may not exist in it's current form when it's time for you to stop working.

More than half her retirement income comes from Social Security. When you factor in health care spending, she’ll be living on only about 41% of the average national wage. Despite her best efforts to work and save, our Gen X retiree will have trouble maintaining her standard of living. She won’t be alone: the Center for Retirement Research at Boston College estimates that 50% of American retirees will be in the same boat.

Boomers scrambling to get by on a minimal income. Gen X-ers who can’t afford to stop working. Millennials staring at a bleak financial future. This is the retirement apocalypse coming at us fast–unless we do something about it now. As with other big, slow-moving crises (climate change, health care, the quality of education), it’s difficult to create a sense of urgency over retirement security. But in the past few years, the financial meltdown and its aftermath have thrown the problem into sharper relief. Now, in a retirement landscape that has witnessed few big innovations since the Reagan Administration and the rise of the 401(k) account, we’re suddenly seeing a range of new ideas.

Regardless of the eventual solution, few dispute that we’re on a dire course at present. Experts estimate that half of Americans are at risk of becoming economically insecure in retirement. Our system is in desperate need of a fix. “We’re facing a tsunami,” says Senator Tom Harkin, a Democrat from Iowa who has proposed his own program. “And we’ve got to deal with it – now.”

Read the entire article HERE and call our team of retirement income planning experts to learn more.

Matt Nelson, president

Income For Life LLC

877-284-8929 toll free

www.IncomeForLife.org

Retirement Income. Simplified.

The Accumulator vs The Distributor

What is a 'Retirement Accumulator' compared to a 'Retirement Distributor' - and why does it matter?  Once you understand the difference, it will make sense.  Here we go.

When retirees or near retirees come into my office to discuss their options for proper retirement income planning, the first thing I ask is "who is your Retirement Distributor?"  Typically, the person across my table is uncertain what we mean, so we explain that the distributor is the person responsible for the distribution of your retirement assets to you so that your money lasts as long as you do.

The retiree across the table understands, nods and typically says, "We have a person at (fill in the blank) that we have worked with for some time now."  As we discuss further, we then come to the agreement that this person is typically NOT a retirement distributor and is normally the retirement accumulator, in which the two are apples & oranges when it comes to retirement income planning.  Here are the differences between the two:

• The accumulator is typically the person responsible for accumulating assets for you - usually in the stock markets.  This person's sole responsibility is to accumulate as much money for you as possible so that when you retire, you have a strong nest egg to fall back on.  This could come at the cost of both risk and fees, but is necessary while at a younger age (typically up to age 50-55).

• The distributor is typically the person that you begin to utilize when you approach retirement age because the distributor uses those accumulated assets to build a retirement income plan for you that will last as long as you do.  This person's responsibility is PRESERVATION and DISTRIBUTION of those assets, as opposed to ACCUMULATION of those assets.  This is the time when you want risk and fees to be at the minimum (typically age 50-55 and older).

• Can the accumulator also be the distributor?  Sometimes, yes.  
• Is it rare that this person can wear both hats successfully?  Unfortunately, Yes.  
• Do most retirees understand the differences between the two?  Typically, no.

When a retiree approaches retirement age, most need to look for a strong Retirement Distributor that understands that in retirement, the return OF your money is more important than the return ON your money.

You have worked hard for 40 years to accumulate your retirement accounts.  Why leave it in a place where you could potentially lose it all inside 40 days - right at the time when you need it the most?

We agree.  Call my team of distributors today to learn more.

Matt Nelson, president

Income For Life LLC

877-284-8929 toll free

www.IncomeForLife.org

Retirement Income.  Simplified.

AJGA Under Armour/Gary Woodland Championship - big thanks to all those that supported this wonderful event

Our AJGA Under Armour/Gary Woodland Championship was incredible!  Big thanks to Gary Woodland for offering his time for a great Q&A session, for hitting some VERY long shots and for participating in a 'closest to the pin' contest with four select junior golfers.

Also, a big thanks to both the AJGA staff and Under Armour.  Your support was tremendous.

All the junior golfers that attended this event are not only some of the best in the nation in their field, they are all great kids.  The relationships we were fortunate enough to develop with both the kids and their families are ones we will cherish forever.

Here are a few pictures from the event.  More are on our website at www.IncomeForLife.org.  

Thank you to AJGA, Gary Woodland and Under Armour.  Your support and efforts were awesome and we look forward to seeing you again next year. - from the team at Income For Life LLC

 

 

 

 

Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

The Chiropractor Stigma - The Fear Of The Unknown

Today my wife had to go to a chiropractor, so I decided to tag along because of how many times my wife had told me how this 'back guy', as I called him, was helping her so much.  I reluctantly went with her to meet with this person to see what all the talk was about and to determine for myself if this guy was indeed worth my time.  My wife kept telling me, "You have to go because he will change your mind."  So, I reluctantly go with her.

As I sat and listened - and watched - I determined very quickly that this person was not only a professional at his craft, but he was very good.  He explained things very well in a way I could understand, he knew exactly what he was doing at all times and within a few minutes he had my wife back into shape, feeling better and without pain.

As I sat there, I began to realize the similarities between a chiropractor and my way of using insurance products for retirement income planning.  It sounds strange, I know, but the similarities are glaring.  Neither one of us are 'flashy'.  Neither one of us offer anything 'ground-breaking'.  Neither one of us offer something that is 'state of the art'.  All we both do is provide positive results - period.

A lot of retirees come into my office and say the exact same thing my wife told the chiropractor:  "Just don't hurt me."  We hear this all the time in our Income For Life offices because the #1 concern in America today for retirees is SAFETY OF THEIR RETIREMENT INCOME.  

Simply put:  Just don't hurt me.  Ironically, this is exactly what the Insurance Way does for retirement planning.

95% of all corporate pension plans are gone.  Some are still recovering from the devastation of the financial crisis of 2008 - and most are scared.  They are afraid of the unknown.  They are not too sure about the Insurance Way for retirement income planning and the fear of the unknown is a frightening venture - similar to my experience at the chiropractor's office today.

But, after a bit of education and some common-sense discussion, it came pretty clear to me that his methods work - just like the Insurance Way of retirement planning.  IT JUST WORKS.  No flash; just positive results.

Don't let the fear of the unknown keep you from educating yourself about the Insurance Way of retirement income planning because you just might have your eyes opened to a new way of thinking - and it has been in right in front of you for years.


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

AJGA Under Armour/Gary Woodland Championship presented by Income For Life LLC

Income For Life LLC is the proud presenter of the AJGA Under Armour/Gary Woodland Championship at the Alvamar Country Club in Lawrence KS June 16-19.  

Thank you goes to a ton of people that helped us put this together.  We could not have done it without you.

Here are a few links for review:

• Golfweek
• 27 News

Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

The Sports Car vs The Mini Van

When we sit down with our Income For Life clients that are either close to retirement or are already in retirement, we like to describe annuity products vs the stock market products with an analogy of the Sports Car vs the Mini Van - and things tend to then become much more clear.  Here it is:

When you were younger, maybe you or someone you knew owned a sports car.  It was a fun car.  It was a two-seater, it had a fast 5-speed manual engine that could blow the doors off of any other car on the  street.  It looked great, you looked great in it and it was a lot of fun to drive.

But, once you met that special someone and you decide to settle down to start a family, one of the first things that is typically traded in is that sports car, normally for the mini-van or SUV.  Basically, something that is safer and can haul kids around in.  It has more room, offers better gas mileage, it is safety-rated - AND REALLY BORING.  

You know what I mean:  A decision was made that you now need something more practical, given the new changes in your lives.  The mini-van doesn't go 0 to 60 in 3.9 seconds and can't chirp the tires in second gear, but it will get a carload of kids to soccer practice safely and will get the family to grandma & grandma's house over in the next state comfortably without breaking the bank account in gas costs, the kids can watch a movie in the back and there is plenty of room for everyone.

It is important for you to know that this trade-in from the sports car to the mini-van does not make the sports car manufacturers BAD or WRONG - you just simply out-grew it.  You out-aged it.  You got to a new point in your life where the sports car benefits were simply no longer the best thing for you.

This is exactly why annuities are here for retirees.  Annuities are the 'mini-van' of the retirement world.  Annuities are the safe, dependable option for retirees because of the guarantees and the ability to provide lifetime income.  They are not fancy.  The are actually pretty dull (as Benjamin Franklin and Babe Ruth both said:  'Annuities are boring, just as we like them.').  But what they offer is dependability, safety and confidence - and they are the ONLY retirement product that can offer a lifetime income stream through retirement.  Neither the banks or Wall Street have this option available to you.  That is invaluable.  Peace of mind is priceless, agreed?

In our opinion, the stock market is the 'sports car'.  Enjoy it while you can.  It is great for younger ages when risk is furthest from your mind and you still have time on your side, but the markets are not as practical when the need for guarantees and safety are your primary goal - and when you are close to retirement age and time is no longer on your side.

With this said:  What would you say if you went into the auto dealer to trade in that sports car for the mini-van and you explain why you are doing it (eg: starting a family, need something more practical to haul kids around, etc) and the dealer tells you:  "No!  Don't do it.  You are crazy.  The sports car is perfect for what you now need."

How fast would you run out of there?  Me too.


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

Mondays with Matt | News From Income For Life e-newsletter 6/9/14

Happy Monday to you!  Enjoy our weekly newsletter by clicking HERE!

Thank you for reading and make it a great week.


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

Retirement Income Planning - The Lost Casino

Picture this:  You are in Las Vegas.  It is middle of the afternoon and you are off the Vegas strip and are wandering through the 'old' casinos.  You know, the ones that no one goes to anymore because they are boring, the are 'old', they are not flashy at all.  They are the 'lost casinos'.

You make your way into one and find a line of people trying to get on one particular table game.  It is Blackjack - and the line is nearly out the door.  You ask a person in line "What's the big deal?  It's just Blackjack.  Why is there a line to this one when there are other tables and other casinos?"  The person looks at you, chuckles a bit, and says, "I will tell you, because you remind me of myself before I found out about it."  You are confused, but you are curious, so you agree to listen.

"This is a special table because you cannot lose at it", he says.  "But there are two things you must know.  The first is that you do not get all the winnings if you win a hand, but you get most of them and once you win a hand, you can never lose the winnings.  The other is that you must play at least ten hands so you don't get a penalty for leaving the table early.  The casino also gives you a bonus to get things started and you get to keep the entire thing if you play all ten hands - winnings and bonus.  If you play all ten hands and lose every time, then the worst thing that can happen is that you walk away with all of your original amount, plus the bonus, but you get to share in the winnings with the casino when you win."

You look at him completely startled and very pessimistic.  You have never heard of such a thing and you simply cannot imagine such a table game could exist, so you start asking more questions.  You soon find out that the way the casino makes money is because the players do not get all the winnings when they win and anyone that leaves before playing all ten hands is penalized, but you quickly calulate that the trade-off for never losing, yet still get to share in the winnings, outweighs this ten-fold.

As you ask more questions, the person becomes irritated and tells you, "If you don't want to play, then simply step out of line."  You say, "I understand, but if you don't mind, I would like to ask you one more question."  The person agrees so you ask, "If this table is indeed as you say it is, then why is it way back here in the old casinos and not up front on the main strip with all the new casinos?  This table would make a killing if more people knew about it!"

The person responds, "That is because it has been here for a long time and this casino will stay right here, just as it has been for decades.  It is not their fault that you did not know about it until now and it is important for you to understand that the new, flashy main strip casinos do not want you to know they are here and they will do their best to keep this one hidden from you."  

This makes complete sense, so you stay and you play - and you win, and win, and don't lose, and win and don't lose, and win.  You play all ten hands and you look down to see that you nearly doubled your original amount.  The person next to you did not win a single hand, yet he was extremely happy because he still walked away with all of his original amount plus the casino bonus amount, so he is also happy because he didn't lose a single dollar.

Now, what if this concept was available to retirees for retirement purposes?  

Guess what:  It is.  Welcome to the game.


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org 

The Boiling Frog Mentality

It has been said that if you place a frog into a pot of boiling water, it will immediately determine that the water is dangerous and will jump out.  But, if you place the same frog in a pot of room temperature water and gradually bring the water to a boil, the frog will not jump out and will eventually come to it's demise.

Unfortunately, I have met with many retirees or near-retirees that have the same mentality.  They have the large majority of their retirement nest egg invested in the stock markets and are at risk of 'boiling', but they do not jump out of the water - even when they know it is dangerous to stay there at this time in their lives.  Retirement time is not the time when you should stay in the water - whether it heats up or not.

Why is this?  There are several national studies that do their best to define the thought processes of those approaching retirement and the determinations for why retirees do not make the 'jump' to safety is:

1. Lack of Education
2. Fear of Change
3. Relationships

Simply put, retirees do not have the educational resources readily available to them and are often tugged & pulled in several different ways, so the fear of change becomes an overriding factor.  Some also feel that they will 'hurt the feelings' of their existing adviser of they move their accounts into a safer asset class - and are sometimes even expressed this by their adviser.

My thought is this:

1. Education is indeed available, but you have to know what to ask.
2. Change is inevitable.  You have to make the 'mental shift' from accumulation to distribution.
3. Relationships will not pay your bills or keep you afloat financially if the markets go bad and you lose your nest egg - and your adviser will not pay your bills for you - so you have to do what's best for you.  After all, is it your money, or your adviser's money?

Don't be the boiled frog.  Call our office to learn how to 'jump' to safety.

Matt Nelson, president

Income For Life LLC

877-284-8929 toll free

www.IncomeForLife.org

How to create a 7% retirement income in a 1% Market

Planning for retirement today is much different than it was five or ten years ago.  The stock market rises and plummets in reaction to events a half a world away.  People are living longer than ever, meaning their money needs to last forever.  Many retirement plans are simply no longer suitable for today's volatile ecomomic conditions.

Call our office today at 877-284-8929 to learn our strategies of how to create a 7% income in a 1% market.  Whether you are planning for retirement or are already retired, this information is vital to you.  No cost.  No obligation.  Informational only.


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

FREE Social Security Manual!

The biggest story in Social Security today concerns the large number of baby boomers set to retire over the next 20 years and the relatively smaller younger generations feeding Social Security payroll taxes into the system.

There are strategies you can employ to help reduce the risks of outliving your money.  These strategies may be directly related to when you start taking Social Security and how you should consider positioning assets for a surviving spouse.

Watch my video and request our FREE MANUAL titled: 'The Social Security Decisions' today by calling our office at 877-284-8929.

Matt Nelson, president

Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org

Mondays with Matt | News From Income For Life e-newsletter 6/2/14

Happy Monday from Income For Life!

We have made a few changes to our weekly e-newsletter.  Check them out!  Plus, we have two new national articles for your review.  Make sure you take a look HERE.

Thanks and make it a great week!


Matt Nelson, president
Income For Life LLC
877-284-8929 toll free
www.IncomeForLife.org