What is the difference between Retirement Planning and Investment Planning?

Investment planning mainly focuses on “investments” and how to grow your wealth. Retirement planning’s strategy is how to protect your wealth. Retirement planning typically involves having a strategy using pension planning (guaranteed lifetime income) along with health care coverage.

What’s the difference between a pension and a 401(k)/IRA?

A 401(k)/IRA is an asset you manage or have someone else manage for you. Usually, this involves investing in stocks or mutual funds. A pension is a guarantee that gives you income for life. A teacher would most likely never give up their guaranteed income!

Retirement Income Planning
Retirement Income Planning

I don’t work for a company that provides a pension. Can I still create my own?

Yes, a pension is an insurance policy that guarantees you income for life. We specialize in helping you leverage your own assets to achieve this while maintaining control of your assets.

Can I use my 401(k), IRA, or savings account to create a lifetime income strategy? Will I be taxed?

Yes, you can use any money to create a pension. If you rollover/transfer a 401(k)/IRA, then you will not be taxed. You will be taxed on the amount you withdraw in the future.

Are you referring to an annuity?

Yes. However, please be aware that not all annuities are suitable for you or provide liquidity. Like a car, not all manufacturers are created equal. Even a good manufacturer might have a bad model. There are five major types of annuities we will teach you:

Immediate Annuity

  • Pension: Lifetime Income, but there’s no cash value
  • No fees
  • Cannot make into a Pension Hybrid

Fixed Annuity

  • Insurance Companies Version of a Bank’s CD: Fixed Rate
  • No fees
  • Cannot make into a Pension Hybrid

Fixed Index Annuity

  • Fixed Rate, Guaranteed Principal, Market Potential
  • Typically around 0% to 1% fees
  • Pension Hybrid Optional

Variable Annuity

  • In the Market, Buy & Sell Shares, Could Gain or Lose Value
  • Typically around 3%-5% fees
  • Pension Hybrid Optional

Lifetime Guaranteed Income Rider

  • The concept of an Immediate Annuity as a “rider.”
  • This rider only can be purchased with a Fixed Indexed or Variable Annuity
  • This makes what we call a “Pension Hybrid.”

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