Ep 39: Make the most of your retirement (Financial Safari)
Coach Pete explains why we should be wary of annuitizations and unveils one of the most overlooked retirement plans available today.
this week's episode is brought to you by capital financial advisory group for all your retirement needs. Hey folks, this coach Pete, welcome into the financial Safari this week I've got Mr steve said all to my right Mr Greg bearing to my left, we're going to talk about some fantastic financial tips this week, but I want to talk about something else too. There's a trend right now in social media and it's not just for people under 50 or under 30 or under 20 it's people in their sixties, seventies and eighties that are taking full advantage of social media. We're gonna talk about that. We're also going to talk about one of the most overlooked retirement plans available today, that more this week on the Financial Broadcasting from coast to coast, it's the financial safari with your host coach Pete neruda, you'll hear from some of the nation's top financial professionals, so stick around and find out how to make it through the jungle of the financial world right here on the financial Safari folks, it's a great day here at the Financial Safari as it always is. And it's Coach Pete here, Mr steve said all there, and Greg berry in there and somebody asked me this week, say coach, why do you call it the Financial Safari? Good question. That's a great place, curious. Well back in the day, I used to speak to big groups and I said, you know, there's so many pitfalls, there's so many unforeseen instances that pop up where people don't have the proper plan, sort of like, if you would go to Africa and go on one of those Wild Game safaris, which I'll never do, I don't want to be the food, but go to wild game safari out in Africa, what is the or who is the most important person in that event? Who is the most, I would say you're guide guy, you're sure. And I said, well, gosh, who is the most important person planning for retirement, Your retirement guide. And so because it is a jungle out there in the financial order, what we need to do is make sure we can combat the things that may be hurt you ahead of time. We know we've seen most everything out there Greg that can go wrong in the financial, whether that, is that a fair statement statement and we see a whole bunch of stuff go wrong. Matter of fact, we talked about that brokers behaving badly where brokers have been doing the wrong thing for people and you read about in your paper and you say, gosh, those people were, they weren't too smart to invest that money with that person. And then down the road you get enticed by something and you fall for that dirty trick to and then you realize you can be really smart and still fall for dirty tricks coach. I gotta tell you um I gotta tell you a story, this, this is I met this lady, she reached out to us from our programming, she's written Wilmington and she did not have a lot. She had 100 and $10,000. That's that's everything she had to her name. Greg told me about this story. You're gonna this is gonna just gonna make you mad. This is this goes this is like the definition of brokers Behaving badly enough. Okay. So she has $110,000. Is that all she had to all? She had $200. That's She did a good job. $100,000. I'm not not making it sound bad. I mean that's all the money. That's everything. She's protected it. Yeah. Right, okay. Whatever. And so the first time I met her I reach out to her and we're sitting there, we're talking and she already spoke to somebody else out there in the financial world and this person took 100,000 of $110,000 annuity and put it into an annuity. But what kind of annuity it was it was a lifetime income annuity basically it was. It was but this is not all your money and not tying it up and not being put on the allowance, right, 97% of the money, precisely. And so it was it was she kind of had his feeling people know and they got a feeling they think something is wrong and she had this feeling intuition is wrong intuition tuition. That's right and I looked at that and I said this is a very very bad situation that you're in. And I reached out to one of our, one of our great A rated carriers and we decided the best thing that we could do for her was put her into an indexed annuity for $50,000 and then start an income stream for that's based on inflation. So every year that she has this, every year that that the index goes up, she's gonna keep getting more and more money. And then even if it ran out of money, she'd keep getting it for the rest of her life. Greg did an annuity review with her. And that's important if you haven't annuities, annuities are not a bad thing right Now. If you have an annuity folks, it's very, very important to make sure that you haven't analyzed to make sure you have the correct annuity. Oh yeah, very, very important because again, there's so many different kind of annuities out there. Now this word annuity Ization, we're gonna get more, There's a lot more to the story on her by the way. But annuity Ization, I call a newest side and that's when you sign over control of all your money to the insurance company, then they decide how much money you'll get for a certain number of years or lifetime. They will give you a check. But but you have lost all control of your money and the money goes away when you pass away. So we need to make sure that we do not unless it's a very special circumstance. I have not seen a case in my lifetime. We're annuity. Izing the money made any sense. Have you know, I've never seen insurance company makes a lot of money on that. Sometimes the advisor who sold you that annuity gets an extra bonus when they can talk you into a new it ties in that money because then it gives all the control of that money forever to the insurance company. So they get bonuses like so be very careful. And if you hear that word annuity ization think of a new aside and we don't like suicide. We don't like a suicide. That means you're basically killed your money for your lifetime By getting by arranging to get a very small allowance. Now there was like Billy Mays, you say. But wait, there's more, there's more. So all right. So, so he put 100,000 of 110,000 in a lifetime annuity with the newest Ization basically. It was recommended that he hadn't done that yet. Or had he hadn't done it. He was recommending they knew it would cut him off at the pass which gets those streams of income, but not a good stream and losing all control of the money. All right. What happened next? So then she says, craig, could you take a look at this life insurance policy? He sold me as well. And I say sold I mean soul. So he sold her the annuity she didn't didn't really belong in and then he sold her life insurance policy. Why did he do that? Well you want to make more money? But she only had but she had she only had $10,000 left when she used to pay for that. But she was going to utilize the money from the annuity to pay for the life insurance. But here's the thing, the money was going to go to charity. So what, what money the beneficiaries are going to be a charity and was going to be $100 a month. And she had limited income to begin with. And I said, and she goes, I have the application right here. I said, can I see that? So she has no Children. She wanted to leave money to know. Okay, so there was no need for life insurance whatsoever. So you know what we call this is a double generation of commission. So the advisor made commission selling her that annuity with the neutralization option where you should lose control. He was going to take that stream of income and use it to buy a life insurance policy. She didn't need just so we can make another commission right now. I like life insurance in a lot of cases. This doesn't sound like a situation where she really needed life. She did not need to tie your money up or what little money she was getting to pay for that life insurance. She's more worried about loafs of bread and gallons of milk and maybe cat food. If she has a cat, we don't need to be worried about what's gonna happen when we're not here. If we can't even survive when we're here now coach gets worse. But wait is even more. But wait there's more, I didn't know it's more than this. So she pulls out the application and and she's in a wheelchair. Oh my and you and I've been in this helping people for a very very long time. And we both know that somebody in a wheelchair very often. It's an automatic knockout question on any kind of getting up. Life insurance policy issued. Yeah well we're gonna we're gonna hold this start for minutes. We're coming up on a break Greg. So she's in a wheelchair, she has a life insurance policy. We're going to see why that wasn't a good thing and why it's very important that you get your very own plan put together with a qualified team and don't fall for dirty tricks when we come back when you cover that. But if you want your very own total retirement plan, $1000 value for the next nine if you call right now to be no cost or obligation numbers on the screen. Get your own golden ticket for a total retirement income plan today call 888910 82 65. Or text the word breeze to 607 100. Yeah, do you hear that? That's me enjoying my retirement traveling around the world to play golf where I want, when I want with whomever I want even got some customized clubs because years ago I rolled over my ira with the help of a local trusted advisor, contact us to get started today. This is a no cost no obligation retirement review to help educate and enlighten. Yeah. Do you know how much you're paying in fees or commissions with your current plan or advisor? What about unnecessary risk or future tax implications? Sit down with the fiduciary advisor who can help you understand important retirement concepts and so you can make the best decisions for yourself. Moving forward, we may even be able to answer questions you didn't even know needed to be asked the boys, our podcast, financial pizza brings you our favorite radio segments of the week delivering slices of interviews with financial advisors from around the country Along with special reports on a variety of retirement topics all brought to you. Hot fresh and in 30 minutes or less. Listen on your favorite podcasting app or visit financial pizza dot com. Folks welcome back into the financial safari coach Pete here steve said all there, Greg, bearing over there before we went to break, we were talking about a certain case that Greg ran into in Wilmington north Carolina Greg for the people that are just joining us and maybe for people who were doing a commercial break forgot let's go over this very quickly summarize what's happened so far. First of all, The, my, my client of the lady that isolated I met in Wilmington, she had $110,000 and this advisory to her life. All all she had her bag of cash. That's the value of cash. And this person went in there and wrote a new t. That she had no control of anymore For $100,000. Let's just call, let's call it. Was it a he or she the person. Let's call him an uneducated agent. A nice way to say it. That's a big words. Come to mind. Scrupulous could come to mind. Uh well 19 is we're going to have different words. Okay. All right. So, so she had 110,000. This agent appeared and had the best solution since sliced bread supposedly. And what do you do? And so he then did something we call the new ties ng where we like to call it a new thighs and he saw he sold her $100,000 annuity with 110,000 she had so he walked up because it wasn't the right. I knew when he locked up 100,000 over $110,000 right away and put it into a product that she had to a new it ties, which we call the newest side. Which is a yearly payment. Now that she signed her money over an allowance from the insurance company. But she can never touch that lump sum again. Ever. And it's gone. Right. All right. So what happened next? And so when he when he finished that component, at least as if it wasn't enough. He turns around and he's going to write a life insurance policy on her, on her. Okay. Using the proceeds from the income stream that he helped generate. Priest. He got paid a commission to sell the new IT. He's got another commission to sell a non needed life insurance policy in her case. Right, okay. What happened next in the beneficiaries are gonna be Cherry and she has no Children or grandchildren to leave money to. So she really has nobody to take care of. It's just like when I'm not here anymore, what would you like to happen to the money you're not gonna need? And she's so give it a charity. But she didn't need to get a special life insurance policy for that. No, but she did. She got sold one and this is going to cost her $100 a month. Okay. And and this this nice lady is sitting across from me and she's in a wheelchair in a wheelchair. All right. So now what does being in a wheelchair have to do with life insurance? Well, folks like yourself and myself, we both we both know that if you are in a wheelchair and many life insurance policies, it's an automatic turn down turned out automatically because that's just the way the underwriters insurance companies say if you know if you're already in a wheelchair, they just, you're uninsurable or it's going to cost you who have more. It wouldn't make sense for her. But All right. So because she was in a wheelchair, how did she get the life insurance policies? Well, she goes, Craig I have I have the application right here. So I said, May I see the application and I knew the company. I knew exactly the question to go to and I went right down to question number 12. And I looked at it and I said, when you filled this out, were you and your wheelchair? Because of course I was. I said, well, can you explain why he answered no about this question. Are you in a wheelchair? Wow? And she went, what? I said, yes, this man just help you commit fraud and he's committing fraud as well. If you lie on a life insurance application. And many times maybe you can't be detected as a lie right now. But in the future if when she passed away, the insurance company may or may not find out she was in a wheelchair at the time when she signed out for the life insurance policy. Guess what happens? The insurance company will retroactively just go back and refund all her premiums. She won't have that. She won't have the death benefit. So lying doesn't pay off. If you're a smoker and you say you're a nonsmoker you may get away with it. But if you die of lung cancer, the insurance company is not going to pay the life insurance benefits. So telling the truth is vital in anything we do in life and shame on that advisor because or the agent, whatever he was because he knew what he was doing. He was generating commission. So what did she say when you pointed that out to her? She she was actually quite shocked and she basically cancelled everything. She just said she should have and I'm now advisor. But you know the problem with that is this advisor of this agent, He calls his advisor to me. He's just a salesman. This product peddler is going to go on and do it or how many other times he's done in the past chief. And how many times going to do in the future? So people like that need to be reported? Yeah, absolutely. Really? All right. So there's a lot of stuff out there. So let me ask you this, what did you do to help her? How did you fix that? Well, first of all she said I said are you going to be buried or cremated? And she doesn't wanna be cremated And she's getting she's actually closing out another bad deal of which he borrowed too much money from a life insurance policy. And so she's going to take that money out and hold money back. And I said, why don't you just pre pay for pre pay for your cremation? That's it and not worry about it. So that's what we fix that problem. And then she canceled the and which she cancelled all business she had with that guy. So you put together for her based on what she had, what she wanted to do her fiduciary type plan, which means in her best interest to make it work, which had life insurance. Maybe not life insurance, but annuity component we gave her a lifetime income. You can't qualify for life insurance, but she doesn't need life insurance anyway. So especially with the cremation, that's one of the most affordable parts of a death process. The funeral is the cremation. Yeah. Let's try to sell the expensive urine. They always do that. Yes, steve, let's see. We've got a couple minutes here a graft. Let's talk about social media for those that are in the golden years. Well, it's, it's really interesting. I found a couple of different stories about this and one of them was talking about, well, we don't know about influencers, right. Kardashians are influencers on instagram and all of that, but what's happened is older folks are discovering instagram and becoming not only influencers, but they're dubbed grand fluency. I love that term. Lovett grand fluid grand fluency. So the story I read this about a woman who was at 70 years old was really just kind of fallen apart. She wasn't feeling good about anything. Her daughter stepped in and said, well here, let's, let's just try to, you know, see if we can get some more interest in your life. Well she ended up on a fitness plan and diet and she started on instagram And now she is making big money at 75 years old as a grand fluency. And there's a lot of folks following in that following in her footprints. So it's, and it's about, You know, I mean I was talking about 18-49, right? That's the only thing that the advertisers, one who has more money over 49 50 up so that, so it's actually changing the way a lot of advertisers are looking at things, which is why they're, you know, glomming onto these grand fluency because they can say, all right, hey, you push my product right to your people and it's a really win win. So I mean I'm not saying everybody can be a grand fluency, but I think if you want it to be, you could be the cottage industry has sprung up industries and just pop up and then some people perfect it and make a lot of money. Well this isn't get, which get rich quick and don't fall for some of these emails you may get saying, hey beograd influencer, send us 88 99 $809 and we'll show you how, you know, who makes money there, people selling your program. Exactly, very careful on that. But again, it's, it's something I never even thought about it and, and there seems to be more and more of them doing that. And another thing that I found two was they were talking about someone who is, um, again, over 50 and they're sort of lost because the advertisers don't, hey, hey, they really don't. When you watch, when, you know, I'm 55 I'm over 50 and when you, when you do watch that on tv, I try to DVR things and fast forward, but when you look at them, they don't really apply to me. Most of the commercials. I see. It's all, it's all to the, like the shoes and the new tennis shoes and whatever else it sports drinks and all that. But I mean, you know that some past that Greg and we would, but this now we're in the new area because there are a lot of products available to people our age and older that are now being featured with the great influences and we're seeing it on television as well, you know, you've got Frankie and Grace, right, which are all people over 60 and 70. Um, and you know, we talk about the financial red zone, But when you talk about 50 and older than the financial red zone, Well guess who is turning 50 everybody when we come back steve hold that thought we're going to talk about it when we come back. But get your own plan today folks, all you have to call the number no cost or obligation, get your own golden ticket for a total retirement income plan. Today call 888910 82 65 vortex keyword breeze to 607 100. Do you know what that sound is? It's me traveling the world europe to Asia. I'm vacationing and living the retirement of my dreams because I just met with a local trusted advisor. They helped me turn my nest egg into a golden egg. Yeah, yeah. This is joe, joe has a steady job, a house and a family, but he doesn't know his retirement plan sucks really? He's paying high brokerage fees and his retirement savings is not safe or protected, joe might be screwed, but he doesn't have to be contact us today for your no cost no obligation retirement review and second opinion package when you call will also include Coach Pete's best selling book, seven baby steps that has helped so many better understand their retirement journey. Get yours today. We're at the homestretch folks. This is the last segment of the financial Safari been a fast moving show, talked about a financial horror story today and we talked about ways that getting older is not necessarily being rolled out to the shed. This is the way we can get a whole lot more attention folks in your group of people that you talk to and actually get paid to do it steve, it's amazing. Now a lot of people are going to get paid, A lot of people are gonna make money. But if you are in this category, being outgoing and you have all you need now to be an influencer is a cell phone or any, some kind of camera device to tape yourself and upload it to facebook instagram. Tiktok Youtube video. There's all sorts of different sites out there from videos That people are watching. I guess he's making a lot. I mean, I don't know if you've read, Let's, let's summarize what we talked about a minute ago. They talked about, you know, older people in one case this woman who was at 70 was sort of falling apart. She got her stuff together thanks to her daughter. She's a fitness guru at this point. She became a grand fluency on Instagram and now The, the sponsors are saying, Hey, you're reaching an audience that we're trying to reach. We don't, and we never thought about reaching them before. And now that's what they're doing because guess what? People have money just because they're, you know over 50 doesn't mean they don't have money to make more money as you get older. Right? Exactly. Right. And, and we talked about being 50 and, and you know, the financial red zone, you always talk about that coach. Well, the question I said just before the break is, who's turning 50? Well, it's not baby boomers, they're all past 50. It's gen xers, Yeah, turning 50. I'm a gen xer myself. Well, there's a new term for that too. When you combine the two baby boomers and gen xers call them sumers, it's a new category. But again, those people in that age group are finding that people advertisers, you know, any number of people are reaching out to them now because oh wait, these people are smart, these people have money. Let's go ahead and exploit that. You know, you ever watched the Comiskey method? I, I did. I mean, yeah, it does. Nobody's under 50. You're right. It's a fantastic and it gets a lot of people. So Zoomer is, and so that anyone who is a baby boomer, anyone who's gen x were a big group were big category now lumped together now I'm a boomer. I'm a boomerang and I'm married to a zoo to gen x. So you guys are okay. Yeah, well 1964 and below I guess or 65 anybody after. Yeah, so I'm 66. So I'm right at the cusp right there between the two. So really, that's a good term for people that are right on that line of demarcation, the border right there. I'm a Zoomer. I'm a little bit of both. Well, and from a skeptical by nature though, from a social media standpoint, that's the target to me, so that those people are creating and becoming those influencers slash grand fluency Greg. Have you seen any of these uh these influencers steve's talking about yourself just in general before steve start talking about, have you noticed any of that on any of your social media? Absolutely. As a matter of fact, the other day, I am, I was looking for a friend of mine started a tic tac channel during the, during the pandemic and a year and a half. She's got two million viewers. I mean she's she's a hairstylist, but you know, it's really, really cool. So I started looking into it and um I saw a couple of people with, you know, talking about Medicare and they have huge followings. Well, you know what you think about it, the beauty shops were shut down for a long time. You could give tips to people on how to do their own stuff at home, cut your own here at home, you get a bowl, you put it on the head, you cut around everybody, man, that doesn't work. They did it. I never tried it every now and then they'll reinvent a product like that supposedly can cut your hair by connecting the device to the vacuum cleaner. I can just imagine what that might happen here? Well, with, with the ugly? It's what it would be, would be ugly. So what caused you to, to do a story on this because you, did you run across it on your own or Yeah, I just ran across it on my own. I mean, I, I read a lot obviously, and especially about in the financial world and you know, I host a lot of financial shows with advisers all around the country and so I need to be, I want to stay on top of that and have conversations with them about that too. And so I think it's important and I think that we can reach, you know, just because you're over 50 and Lord knows I am, you know, let's let's reach out, let's let's communicate with with our audience folks. That's a good point. Now, steve does a show every single week called Financial Pizza. So you can see that Financial, just google's Financial Pizza or go to financial pizza dot com or you can uh, all these people itunes devices you have in the house that are listening to you, the Alexa and what all you have to do is to tell him to play financial Pizza Financial and how many episodes now we are at 118 1 a week, folks. So that's going on. It's uh, yeah, For two years. It's pretty good, isn't it flies? We have fun. It's a great show though, in 30 minutes or less. You get all the financial news you need from radio shows across the nation. So Steve edits is down 30 minutes or less, you get all the financial information need delivered hot fresh 30 minutes to your mailbox coach pete is always there because I was our first slice next on the first slice of pizza. I love pizza and I used to have 30 minutes or west. So that's what we came out with financial pizza and it is, we try to keep it under 30 minutes a week. So I mean we could, we could bore you for five hours. But what good is that? So 30 minutes or west sometimes lesser. And then we're gonna start coming out with little slices instead of the whole show every now and then we'll tease you with a slice. It might be two or three minutes that's coming up. So that's just the slice. I like slices of pizza. You go to new york, you get one slice is bigger than one pizza man. So there were two influences you talked about, you talked about the other day, Tell the folks what both of them do and what you think of the most successful part of what they're doing. Well, I think, you know, in this case, the 75 year old woman I think is doing great things because she is reaching a lot of people, you know, seniors, I think fitness becomes sort of a back seat to that. But what she's doing is showing them at 75, you don't have to, you don't have to, you know, sit down and never get up, you can move, you can, I mean she reinvented herself has a double meaning because you're sitting on your seat and you're not do anything and put it on, like putting you on the back seat, like putting it away. Yeah, but yeah, so the secret though of anything in life is just do it, just just start doing something. You can sit around and say, I don't want to do this is gonna be too hard to get back in shape. We'll start for a couple of minutes, then maybe 10 minutes next week. And then 15 and then you start to get excited and you start to have uh whatever that stuff, then it's endorphins get start release and you start getting excited about and you get some new shoes and you start jogging and uh I mean that's what happened, so, and so it doesn't happen overnight. Rome wasn't built in a day. We've heard that too. And a successful retirement plan was not built overnight either, but we have a way where we can make sure to put you on that track of success instead of going down the wrong path. And Greg, one of the things that we've seen over the years. You and I have talked about this almost weekly is the fact that we've met with folks over the years who said everything's fine, but I would like a second opinion just to make sure because in their mind everything was fine and then we meet with them and they're not as fine as they thought because we take that satellite view, looking down at your plan. You ever seen the satellite view? It's pretty cool. You see a car going this way and where they're supposed to be going is over that way. So the same thing in the financial world, financial planning is all about in retirement planning especially is all about looking at the road you're on right now, making sure that that road you're on is going to get you to the destination. You thought you were going to get to the same thing in the financial world. So getting that real income plan put together, getting a true retirement plan peace of mind, making sure that everything is in the right place, making sure your tax situation is right, making sure you don't have financial termites in your portfolio, that's risk fees, unnecessary, unknown inflation protected planning and a lot of things that are built into your plan baked into your plans sometimes and you don't need in there that are costing you future income. So let's get rid of the bad things and make sure you have the right thing. Remember the balloon, the balloon starts to sink, what do you do? You throw stuff overboard? Let's throw all the bad stuff overboard and build a plan for you, it gets you, not only to retirement successfully, but all the way through retirement successfully. And we'll do that and much more for the next nine of you call right now is leave for the show. You're gonna get a golden ticket, you'll get a three book set of three of the books I've written and The box set on the 41 case, about 41K box set call right now. See you next week. Yeah. Yeah. Mhm.