The 401(k) Rollover - Ask A Common Sense Question

At Income For Life, we often meet with near-retirees or retirees that have a 401(k) - or other form of Defined Contribution plan - that they are considering rolling into their own personal IRA.

What some do not realize, though, is that the decision of WHEN to move this asset is not nearly as important as the decision of WHERE to move this asset.

Here is what I mean:

• Let's say are are at retirement age and you have a 401(k) plan that has been accumulating (hopefully) for many years that you want to convert into a retirement income plan because you do not have a corporate pension plan to fall back on, so your retirement plan is now on your own shoulders. As you begin to research different firms to help you with this effort, you are 'wooed' by their gourmet dinner events, their mahogany desks and their ability to use fancy financial terms, charts & graphs.

But here is the 'common sense' question to ask them:

• "Is the plan you are offering me guaranteed against market losses - and is my income guaranteed to last my entire life?"

Common sense says this is an important question, correct?  If they cannot answer 'YES' to both - you should walk away.

When you retire, what will you no longer receive?  A paycheck - so it must be replaced.

Would you like it to be guaranteed for LIFE - and protected from stock market losses?  Absolutely.

Would you like to still be able to participate in the market gains, though?  You bet.

Guess what:  You can.  Call my office to discuss your 401(k) rollover - in a common sense way.


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Income For Life Radio - Listen In! Online Podcasts!

Income For Life Radio is taking the airwaves by storm!

Check it out today at www.IFLRadio.com for past shows!

Have a question that you want answered on the air?

Email it to AskMatt@IFLRadio.com!

Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Investment Advisory Fees - The Cantaloupe Analogy

A fellow national affiliate of Income For Life was recently in my office and offered an analogy about how Investment Advisory fees are similar to paying someone to pick out a cantaloupe for you at a local grocery store.  Here is the story:

• Picture yourself at a local grocery store and you are in the produce section - and you want to purchase a good cantaloupe.  What do you do?  You do what we all do:  You pick one up and shake it a bit.  You smell it.  You maybe even 'knock' on it to try to determine if it is ripe or not.  You continue this process until you find that special cantaloupe that is right for you.

Sound about right?  Me too - every time.

Now, if you are like me, you understand completely that you have NO IDEA if that chosen cantaloupe is a good choice or not until you get home and cut it open.  It very well could be bad inside - but there was absolutely no way to tell while at the grocery store without cutting it open in the store.  Obviously, we do not do that!

Here is the analogy of the fees that an Investment Adviser charges you in your retirement accounts:

• What would you say if a person charged you a fee to pick out a cantaloupe for you at the grocery store?  They might tell you that they have 'expert melon-picking skills' and they might try to dazzle you with grocery produce 'jargon' that makes them look and sound as if they have all the abilities to pick the best melon for you - but do they REALLY have the ability to pick the best melon and know for sure it is a good one without actually cutting into it?

Nope.  They do not.  It is all just a guess.  Just like Investment Advisers do not have a crystal ball to predict the stock markets.  All they can do is dazzle you with financial 'jargon' and do their best to try to market themselves to the public that they have a crystal ball - and hope you will pay them for their 'guesses'.  

If you are currently paying an Investment Adviser to pick stocks for you - and this person could guarantee that they could predict the stock market AT LEAST 51 percent of the time - they would not be working for you.  They would be sitting at home doing it for themselves.  Sad, but true.

If you are over age 50 and you are doing this with your retirement accounts - you are playing with fire.  You wouldn't pay for a 'guess' with a cantaloupe - why pay for a 'guess' with your retirement livelihood?

Matt Nelson, president and host of Income For Life Radio

877-284-8929 toll free

www.IncomeForLife.org

Common Misconceptions About Annuities

At Income For Life LLC, we often hear retirees and near-retirees express their concerns about annuity products. When we dive in a bit deeper, it is typically determined rather quickly that the information they believe to be true is actually false - and they never knew it.  Sad, but true.

Here are a few misconceptions about annuity products that can put to rest some of your concerns - and what the facts actually are:

MYTH: Annuities are investments.
Wrong! Fixed annuities are insurance products which have the ability to guarantee an income stream throughout retirement; they are not investments.

MYTH: You can outlive fixed income annuity payments.
Wrong! Fixed annuities are the best way to solve for longevity risk and be guaranteed an income stream for life.

MYTH: Fixed annuities are not a safe asset class.
Wrong! Insurance companies are regulated by state regulations. Insurance companies must have sufficient assets to make good on their guarantees. There is no loss of principal even when markets decline or the economy falters.

MYTH: Fixed annuities cannot provide lasting income to a surviving spouse or other beneficiary.
Wrong! A spouse, survivor, or other named beneficiary can keep receiving a guaranteed income stream as elected.

MYTH: Annuities have no liquidity options. 

Wrong! Many annuity contracts allow for penalty-free withdrawals and have provisions for emergencies and other contingencies. After a certain point in time, you can receive the full accumulated value of the contract and walk away if plans or circumstances change.

MYTH: Annuities cannot provide a reasonable rate of return.
Wrong! Due to principal staying intact, interest, and the power of belonging to an insurance pool, there’s a solid rate of return in a fixed annuity.

MYTH: A substantial portion of retirement income should be longevity insured.

CORRECT! Up to 75% of total wealth can be justified, under a variety of methods, to be longevity insured, which implies 75% of desired retirement income.


Matt Nelson, president and host of Income For Life Radio

877-284-8929 Toll Free
www.IncomeForLife.org

The Math of Rebounds

What is the future of your retirement?  It just might shock you (or maybe not, unfortunately) that the stock market rebound needed to get back to even after a significant loss is much higher than the loss itself - and each of these market losses were all 100% out of our control.  These events were due to actions of others, yet each one greatly effected your investments.  

Here is what I mean:

• 2001:  Enron collapses; market falls -12.7%.  Rebound needed is 14.6%
• 2002:  WorldCom collapses;  market falls -10.0%.  Rebound needed is 11.1%
• 2003:  Martha Stewart indicted;  market falls -21.3%.  Rebound needed is 27.1%
• 2008:  Bernie Madoff arrested; market falls -35.6%.  Rebound needed is 55.3%.

These figures are based on the market values of the S&P 500 index and these figures represent amount of recovery needed after a downturn in the market.

Do you want your retirement to be subject to market downturns that you have absolutely no control over?  Neither do we.  Give our office a call to learn how to avoid this from happening again - because you and I both know it will.

Matt Nelson, president and host of Income For Life Radio

877-284-8929 toll free

www.IncomeForLife.org

What Happens When The Federal Reserve Raises Rates?

There is an interesting article posted today on USA Today that lines up with exactly our views regarding the Federal Reserve and the stock markets.

Here it is: Fed Rate Shift Could Spook Markets

Ironically, we discussed this issue on Income For Life Radio recently.  Go check it out at www.IFLRadio.com as we discuss our views on The Federal Reserve - and what is coming soon.


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

IFL Radio - Why It Matters

What does a cat named Orlando and a bunch of monkeys kidnapped from a local zoo have to do with stock-picking skills?  You might be shocked.

Listen to our radio podcast titled IFL Radio - Why It Matters to find out.  You simply cannot make this stuff up...


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Tax-Free Retirement - A Video From IRA Expert Ed Slott

We have often educated our clients that Life Insurance is one of the most powerful products in the nation and is the top loophole in the IRS tax code.  It seems that national IRA expert Ed Slott agrees.

Watch this quick video from Ed Slott discussing how to have a tax-free retirement by utilizing the Life Insurance world.


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

IFL Radio - 10 Things To Know When Planning Your Retirement Income

Last week's Income For Life Radio show is here!  Learn how to order your free copy of our manual titled - '10 Things To Know When Planning Your Retirement Income'.

Also, listen to our announcements, as well as our answers to the weekly question sent to AskMatt@IFLRadio.com.

Click HERE to listen to the show!


Matt Nelson, president and host of Income For Life Radio
Income For Life LLC
877-284-8929
www.IncomeForLife.org

ALS Ice Bucket Challenge - AE style!

This is why my team at Income For Life LLC works directly with the team at Advisors Excel for all our back office support.  They are simply the best in the country at what they do - and are great people.

Thank you, AE!  You are the best!  Click HERE to watch the video!


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Health Care Expenses Will Increase

In 2011, 74% of American employees had not considered a plan to cover health care expenses in retirement.  This is a key component of any well-conceived retirement plan, as health care expenses typically increase to represent a significant portion of a retiree's income.

When creating a retirement income plan, it's important to consider that a couple's retirement assets may be diminished by the health care costs for the spouse who dies first.  While you may end up spending less on things like travel and entertainment that when you first retire, be advised that medical and long-term care in your later years my require even more income.

Call my team toll free at 877-284-8929 today and tune in to Income For Life Radio to learn more.


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Income For Life is now MOBILE! Get started today!

We are MOBILE!  Join our e-newsletter list in two simple steps!

1.  Text "IFL" to 22828.
2.  Enter your email address.

That is it!  Check it out today and begin receiving Income For Life e-newsletters today!


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

Retirement Income. Simplified.

Plan For A Long Life

In 1935, when the Social Security Act was passed, 65-year old beneficiaries received payouts for an average of 12 to 15 years.  Now, however, a couple aged 65 has an 85% chance of at least one of them will live past age 85 - which means providing for 20 years or more of income once you qualify for Social Security benefits.

The Social Security system wasn't built to sustain that long of a retirement - particularly not for 76 million baby boomers.

Longevity statistics are quoted as averages for both men and women, but keep in mind that men weigh the average down since women in modern times outlive men by about five to six years.  Not only are women more likely to live longer than men, but they appear to be a factor in helping men live longer, too.  On average, married men tend to live many years longer than single men.

One thing that is certain is that the Social Security system MUST change in order to keep up with demands.  Call my team to discuss your options - before your choices are made for you.


Matt Nelson
President of Income For Life and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org

IFL Radio podcast - why a retirement specialist is needed

Income For Life Radio's most recent podcast is now available for you!  Simply click on the link below to listen in!

IFL Radio - Why A Retirement Specialist Is Needed


Matt Nelson, president and host of Income For Life Radio
877-284-8929 toll free
www.IncomeForLife.org
www.IFLRadio.com

Income For Life Radio is now LIVE!

PRESS RELEASE!  Income For Life has launched its own radio show titled Income For Life Radio on 106.9FM KTPK every Sunday from 11:30am to noon CST!

We will discuss all things retirement and retirement income planning with featured guests from across the nation - and will provide 'common sense' retirement discussions without the financial jargon.

If you are 'not in Kansas anymore' - no problem!  You can listen to our podcasts on our new fan page on Facebook at www.Facebook.com/IFLRadio.  Simply 'Like Us' and you can have access to every show.

Lastly, if you would like to submit a question to us, email it to AskMatt@IFLRadio.com and we will do our best to answer it on the air.

Check it out and listen in!


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

Retirement Income.  Simplified.

Family Practice vs Specialist - A Medical Approach To Retirement

My wife is a very successful Registered Nurse specializing in Labor & Delivery of nearly seventeen years.  To say she has 'been there, done that' in her field is an understatement and she has had the opportunity to work with some of the top medical minds in the nation during her current tenure.

She came to me today and described how different a Family Practice physician is compared to a specialist, such as a Neuroligist, an ObGyn or a Cardiologist.  All are 'doctors' in the sense that they each have a medical degree, but their expertise cannot be more different.

This got me thinking:  It sounds very similar to the differences between an average stock broker and a retirement income planner.  Both have similar licenses and credentials, but their expertise cannot be more different at times.

The average stock broker is similar to the Family Practice doctor.  Their job is to do their best, given their capacities, and then determine if a referral to a specialist is needed or not.  If the condition being treated is out of the ability of the Family Practice doctor, they then send the patient to a specialist in that particular medical area.  

This is exactly what happens in the retirement world, as well.  There is no 'crystal ball' when it comes to picking stocks and it has even been determined by many third-party media studies - such as Forbes, Wall Street Journal and others - that animals (monkeys & cats, to be specific) are better stock-pickers than the average human stock broker.  Sad, but true.  The studies are enlightening, to say the least.  Accumulating assets can be based on best-case guesses, but retirement income planning must be based on facts.

The Retirement Income Planner is similar to the specialist.  Their job is to offer specific expertise that provide exact outcomes.  Retirement Income Planners cannot 'hope for the best' and then refer a person on to someone else that can do the job better.  Retirement Income Planners must provide contractual guarantees, they must consider inflation costs, they must take into account possible medical events that can hinder a retirement account and they must make sure the retirees have a steady, guaranteed income stream for life - and it all must be guaranteed for an entire retirement plan which could be 20-30 years.

That is hard work.  That is a specialist.  That is what we do at Income For Life LLC.  Contact our office today to learn more.


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

Bicycle Tires vs Truck Tires - An Annuity Comparison

Picture this:  You are a truck driver, sitting at a coffee shop having a discussion with someone that tells you - with a straight face - that you should not purchase tires for your truck because all tires explode.

Let that sink in for a minute.  Do truck tires explode?  Sometimes.  I have driven down the highway many, many times and I see tire pieces on the road from when one did indeed explode - and I have been driving next to a truck when one blew out, sending tire 'shrapnel' across the highway in large, rubber pieces.  

Now, do we all still have tires on our vehicles right now, knowing that they could explode?  Yes.  Of course.  I do.  So do you.  But, according to your coffee discussion, you should not have tires on your truck because they explode.  Ridiculous, right?

As you continue your talk over coffee with your new friend, you soon realize that this person is basing his assumptions on bicycle tires for why you shouldn't have tires on your truck - and his reasons for this conclusion is because he is of the view that all tires are the same because they all are made of rubber, they all travel down the road and they all hold air in them.  
HUH?!  What?!  Really?!  You politely finish your coffee and leave - hoping this person doesn't follow you outside because he has to be crazy.  This person's logic makes sense on a basic level (tires are indeed made of rubber, they hold air and they can explode) but his belief of 'they are all the same' is nuts.  How could anyone use that thought process - and why on Earth would anyone listen to him?

Annuity products are no different - and unfortunately most are indeed listening.  Annuity plans come in all shapes and sizes - to the tune of nearly 300,000 choices across the nation today - just like tires do.  Unfortunately, there are some 'crazy coffee shop people' out there that will continually do their best to lump annuities into one category instead of distinguishing the different types - and these people happen to have deep enough pockets to spend millions of dollars on the crazy idea that all annuity products are the same - and most believe it.  

Here is an example of marketing bias:  I am of the belief that if enough money was spent on a marketing idea for a particular steel hammer that, upon accidentally hitting your thumb, it would not hurt - there would be people out there that would think it is true and would purchase the hammer.  

Why?  Because they saw it on TV, heard it on the radio - so it must be true.  Sad, but very true.  Think about it for a bit.  You know this is correct.  Throw enough money at a particular idea and you could sell 'steel hammers that won't hurt your thumb when you hit it!' - and people would buy it.  UGH... 

When it comes to retirement planning, these type of people have a name:  They are called WALL STREET.  Sadly, there are certain Wall Street folks that are constantly trying to tell you that 'bicycle tires' are the same as 'truck tires' - and they have the marketing money to sell this ridiculous thought to you.

Why does Wall Street insist on lumping all annuities together into one category?  The reasons are very simple.  Call my office to find out and you will be shocked at the outcomes - because it is just as ridiculous as comparing bicycle tires with truck tires.

Matt Nelson, president

Income For Life LLC

877-284-8929 toll free

www.IncomeForLife.org  

Reactive vs Proactive - A Retirement Planning View

What does it mean to be "reactive", compared to "proactive" in retirement planning?

The word “reactive” implies that you don’t have the initiative. You let the events set the agenda. You’re tossed and turned, so to speak, by the tides of life. Each new wave catches you by surprise. Huffing and puffing, you scramble to react to it in order to just stay afloat.

In contrast, the image we associate with “proactive” is one of grace under stress. To stay with the previous analogy, let’s say you’re in choppy waters. Now, you look more at ease. It’s not just that you anticipate the waves. You’re in tune with them. You’re not desperately trying to escape them; you’re dancing with them.

It would be great to dance with the rhythm of life, using the ebb and flow of events as a source of energy. But is this only possible to those people who are endowed with a proactive attitude (or, maybe, a “proactive gene”)?

I believe that being proactive is not a mysterious quality that we have, or don’t have. It is a way of dealing with things, that we can develop and strengthen.

So how does this apply to retirement planning, you ask?  EVERYTHING.  So many times I meet with a retiree that is 'reactive', meaning they only make their retirement planning decisions based on past events - and then try their best to react to them.

Why is this?  Because typically that is how their advice is coming to them from their current adviser:  reacting to past events, thinking the future can be controlled.

Why do this?  Being reactive is saying "I am at the mercy of my surroundings", while being proactive is saying "I control my own destiny."  

At Income For Life, my team takes the proactive approach.  We do not sit around and hope that good things will happen - we make it happen so your retirement destiny is YOURS.

Matt Nelson, president

Income For Life LLC

877.282.8929 toll free

www.IncomeForLife.org

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.