We’re the Annuity Guys®! So, why would we be video blogging like a couple of government bureaucrats about Social Security? What if we told you that Social Security is perhaps the ultimate super annuity and for many retirees it will probably be the cornerstone of their retirement plan based on overwhelming government statistics.
Would you be interested in a retirement income product that produced an eight percent **guaranteed growth on future income while in deferral? And when income begins, it has a cost of living increase each year based upon inflation and allows the option of spousal continuation of the income that is also inflation protected. It is worthwhile to be aware that this income strategy or product description could actually apply to either Social Security or certain hybrid – fixed index annuities with a income riders. [continued below video…]
Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
Social Security Benefits:
- Full Backing of the US Government;
- Tax advantaged – 0 to 85 percent is taxed based on income;
- Inflation Protection – cost of living increases (COLAS);
- Income for life – eliminating longevity risk;
- Spousal, Family and Survivor benefits;
- Priced less than commercially available annuities.
Social Security Disadvantages:
- Legislated and not Guaranteed.
Social Security Planning Concerns:
- Younger Spouse;
- Starting Income Benefits Early or Late;
- Doing the math for best and worst-case scenarios.
As we repeatedly say… you typically only get to do retirement once; so take your time, consider the options and make the best choices possible.
Here’s an excerpt from our book “The New Retirement’s” chapter on Social Security…
Should Social Security be Relied On?
Before we discuss the complexities and facts about using Social Security to its fullest extent as an integral, and for some a primary, component in one’s retirement plan, it is important to cut through the hyperbole. Getting down to the facts surrounding the political and financial reality of Social Security’s probability of remaining viable is important for those nearing or already in retirement.
Negative Press Gets Attention
Everywhere one turns, there are headlines stating that Social Security is doomed and that relying on it is foolhardy–looking deeper into its true viability at least for those now retired and for most of the baby boomers moving into retirement–it is likely to remain and continue pretty close to the way it was designed and it should remain viable.
There has been a constant bombardment of negative press for years about Social Security’s demise; to the point where many retirees have decided inadvertently by lack of attention and inaction, to ignore or overlook it as a reliable component of retirement. The truth is that Social Security, for the majority of retirees, is an integral part, if not the most substantial portion of their overall retirement income. Unfortunately as a result of all the negative press, too many retirees believe social security may not be around for long and have become complacent about how to best structure what may well be one of their largest cash flow assets.
Ignoring Social Security by taking it early or at full retirement age (FAR) without understanding the best ways to optimize, can be a huge mistake that can cost a married couple well over one hundred thousand dollars in lost retirement income based on today’s dollars and much more when we consider the future value of this benefit.
It is true that we are in trouble as a country, if we do not correct the excesses and abuses of government spending to get our fiscal house in order. Not only is this necessary to save Social Security but for every government service or program we rely on or they will all cease to exist, as we know them now. Is this a likely scenario? In the opinion of this author, no spelled “NO” however, do I see a rocky road ahead with some cutbacks? The answer is “YES,” in all capitals!
We are a nation that has overcome what would seem to be insurmountable obstacles, time and again, to become the envy of the world in terms of financial superiority, military might, and personal liberties. It is the combination of our constitution, free enterprise system, legislative process, and the sheer ingenuity of the American people that gives us the ability to conquer any problem and succeed. Like it or not Social Security has been woven into the fabric of our society. It is likely that answers to a balanced approach will be found that keep Social Security viable. We the people will get our fiscal house in order one way or another.
So, take Social Security seriously; citizens have contributed to it, use it, optimize it, and for most Americans it will be a substantial component of retirement income planning. [Read more of the New Retirement – Download the Free E-Book Now]
If current laws governing Social Security remain in effect, the OASI trust fund will be exhausted in 2030, CBO estimates. In 2031, therefore, benefits would need to be reduced by 31 percent from scheduled amounts if outlays were limited to revenues credited to the trust fund. After increasing for several years, the required reduction would abate as people in the baby-boom generation died: In 2060, CBO projects, payable benefits would need to be 29 percent lower than scheduled benefits. And because life expectancy is anticipated to continue to rise, by 2080, they would need to be 34 percent lower.
Under current law, the DI trust fund will be exhausted sooner—in fiscal year 2022, according to CBO’s projections. If the program’s outlays were limited thereafter to revenues credited to the trust fund and if the Social Security Administration reduced DI benefits accordingly, payments to beneficiaries in fiscal year 2023 would be 20 percent less than the amounts scheduled under current law, CBO projects. Moreover, because of the requirement to keep the trust fund in balance, the government would need to continue to reduce benefits: In 2040, payable DI benefits would be 26 percent less than scheduled benefits, and by 2080, they would be 30 percent less. [Read full Report…]
Using OutCome Based Planning™ for Your Retirement
We practice and recommend a "Holistic - OutCome Based Planning™ process when considering annuities." This approach has the effect of balancing your overall portfolio so you can meet your retirement objectives by "first identifying the least amount of your investments or savings (if any) that should be considered for annuities." OutCome Based Planning™ analyzes and models multiple outcomes so you can clearly identify your best income and growth opportunities.
"The Annuity Guys will only call if you request help". Hence, when you are ready for specialized help we will be available."Working with an Experienced Fiduciary Financial Planner can help you Avoid a Trial & Error or Risk Based Retirement"
This type of approach does take considerably more time, effort and analysis which will show you mathematically the successful possibilities by comparing various outcomes rather than trying to sell or convince you of that "so-called one best solution." Clients frequently tell us that this process removes some of the confusion and emotion to help them objectively identify a better retirement plan; rather than just ending up with the most convincing salesperson or advisor.
When requesting help you can be assured of working with an experienced Annuity Guys' Retirement Planner who is independently insurance licensed and securities licensed as a fiduciary financial planner having access to the vast majority of annuity companies in helping you choose the best annuities using a holistic-outcome based planning approach. We consider the high quality advisor recommendations we make to our website visitors as a direct reflection back on our commitment to serve all client's with a high standard of excellence in financial planning for retirement.
Based on survey feedback on advisors from our website visitors, we eliminated about two-hundred local advisors and now only recommend a few that we consider experienced vetted Annuity Guys' Fiduciary Advisors. Many local advisors continue requesting us to recommend them as a vetted advisor. However, our reputation and future business is driven only by satisfied website visitors. So, unfortunately we've had to tell the vast majority of local advisors no, since we changed our business model four years ago. At that time we stopped trying to satisfy everyone with local advisors, we now primarily work with individuals who are comfortable using today's internet technology to their fullest advantage by working with a select group of vetted, experienced and knowledgeable Annuity Guys' Fiduciary Planners.
Selecting the Best Annuity & Retirement Income Advisor
Are you willing to work with one of our retirement and annuity advisors based on their experience and expertise as a first priority rather than being limited by a local or regional area? The good news is that technology has forever eliminated our geographical limitations and leveled the playing field for everyone! As a result of today's technological advances, all of us can now work confidently with experts in any field including personal finance. We are no longer confined by regional or local boundaries limiting our choices and ultimate success. A high quality advisor is now as close as a click or phone call away.
"There is no room for trial and error when it comes to choosing MarketFree® Annuities or a Successful Retirement Planner."
"There are no undo buttons in retirement so it is vitally important that you do it right the first time!"
We are fortunate to have a select few who we believe are truly the highest qualified advisors out of about two hundred licensed insurance agents that we eliminated. Your survey feedback is what helps us make these tough decisions. Our advisors have an independent financial practice, specializing in annuities and retirement planning, which helps ensure that you are given the best options available for your retirement planning.
"It takes an experienced expert to know how to structure annuities for income, inflation, growth, return of principal, and tax advantage."
"Anyone can sell you an annuity; however, it takes a truly qualified and experienced advisor to know how to structure them for income, inflation, growth, return of principal, and tax advantage. Typically, there is not just one that can accomplish all of these objectives. It is how an advisor structures multiple annuities in balancing your total portfolio that makes it possible to achieve your most important retirement objectives."
Why Searching for the Best Annuities on Your Own Can be so Frustrating...Almost everyone nowadays turns to the internet for answers on everything - from buying new widgets to researching just about everything under the sun; and finding the best annuity is no exception!At first, it may seem that researching will be straightforward but the more time you spend researching them, the more frustrating it can be. Why is this? First of all, it does not take long to realize that gimmicks abound - such as warnings and alerts from salesmen who just want your attention so they can sell you one or the "too good to be true" claims of 8% to 14% **guaranteed interest and of course the claim that you can get the full market upside with no downside risk! If you have done any research you have heard all of these claims in advertising which are mostly half truths and not fully explained.So how can you find the best annuities on the internet? The truth is... you can't! And what is even more frustrating is all the conflicting points of view from so called experts. There are well over 6,000 different annuities - all designed for different reasons, so is it any wonder that the deck is stacked against the average researcher or do-it-yourselfer. Add to that the fact that they pay high enough commissions to attract a plethora of both good and bad agents. This does not make annuities good or bad; they are simply a financial tool that truly benefit those who use them correctly.How can you find the best annuities for your unique situation?
- Use the internet cautiously;
- Work with a vetted and experienced specialist;
- Do not settle for that one dubious best plan. Compare multiple Outcome Based Plans to decide on the one that is truly best for you;
- Be keenly aware of scare tactics and hyperbole - avoid those advisors and websites;
- Avoid websites that are focused on rushing free reports, rates and quotes to get your contact information they are rushing you to speak with them, instead, take your time and choose someone you are more comfortable with that works on your time-table;
- Know the Five Vital Factors (listed above) that an experienced specialist must answer before helping you select the best options for your situation;
- Watch this telling video "Avoid Annuity Gimmicks, Amateurs and Charlatans"...
** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
They are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.
*Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping our website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this website. He still maintains his insurance license in good standing and assists his current clients.
Our vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)
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- MarketFree™ Annuity Definition: Any fixed annuity or portfolio of fixed annuities that protects principal / premium and growth by remaining market risk free.
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