One of the largest financial decisions a person will make during their lifetime is what to do with their retirement savings when they retire. I have heard many horror stories from folks over the years who have made wrong decisions. The stories often revolve around someone convincing them to buy a complicated and costly financial product. On the program this week, I spend time going through a framework to develop a good decision making process.
Too often, people will immediately be talked into rolling or transferring their monies out of a retirement plan before comparing it to the proposed solution. In other cases, a lack of disclosure or too much faith in the salesperson dooms the transaction and/or the relationship.
The concept of “money in motion” has been taught to financial salespeople for generations. That is, focus on people who are at or near a lifetime event to gather assets. They will be more vulnerable and responsive to sales pitches when they are facing a big decision. It all makes sense, but too often these trolling for dollars safaris end up hurting real people. I have seen many inexperienced or unscrupulous salespeople sell costly financial products that appear to benefit them more than their clients.
On the program this week, I spend time walking through some of the issues that folks face as they get close to retirement and what they should do with their retirement savings. I hope you enjoy the program this week. – Gary
If you have a question or would like to contact Gary, the best way is through Gary’s Email at email@example.com. You can always try to call him as well 916.436.8331.
Spend 20 minutes to watch the most entertaining explanation of how Wall Street and brokerage firms take advantage of clients. The filter is off as John explains it as only he can. Yes, there is some explicit language but it is completely appropriate under the circumstances.
If you have a retirement plan you must watch this video. If someone is trying to sell you financial products you have to watch this video. Thanks to John and his team for producing this video.
This video clip will leave you laughing and crying all at the same time. It exposes Wall Street for what it is in language that anyone can understand. Enjoy this video and PLEASE share it with everyone you know.
Costs Matter – The Impact of Fees on Your Retirement
People have spent eternity trying to outguess or outsmart financial markets. Another way of looking at this is to understand that people are trying to control financial markets. However, financial markets are dynamic and resist control at any level. Ultimately, this is a fool’s errand.
Conversely, controlling costs is something that can and should be done. On this program, I run through a study we recently prepared for a company. While simple, it shows the individual and cumulative damage that higher and unnecessary fees inflict on retirement investors.
In the study, the impact on a small retirement plan of $5 million dollars over two decades is striking. While numbers can sometimes be hard for people to comprehend, the resulting impact changes people’s lives for the worse. By controlling costs and paying only necessary fees, it is possible for employers to have a large positive impact on their own employees.
Later in the program, I discuss the three factors that people can use to impact their own retirement:
Funding (wish I could change this)
The timing of your retirement
Change the way you invest
These three factors can have a positive or negative influence on your retirement. Since they are under your control or influence these are the items you should spend time on rather than worrying about trying to outsmart financial markets.
As always, thank you for listening to my program on KNBR 680. If you have questions or concerns about your own investments or would like us to review what you are doing, please contact Gary.
The best way to contact Gary is through email at firstname.lastname@example.org. But you can try to reach him by phone as well at 916.436.8331.
The Annuity Sales Pitch… What They Don’t Tell You!
Variable annuities are one of the most popular insurance products sold in America today. Insurance agents love them because they offer a very lucrative sales commission. However, I wonder if as many people would buy them if they really understood the whole story.
On this program, I spend time talking about the annuity sales pitch and provide the rest of the story. I go point by point through some of the most common sales pitches and provide you some additional information that is not usually shared by the person trying to sell you that annuity.
My largest complaint about annuities is the way they are distributed and the large sales commissions offered to agents to sell them. I hope you enjoy this inside look at variable annuities.
Segment 1 – The NYSE Goes Down Because of a Software Upgrade!
Annuities and Lifetime Income Options in 401(k) Plans In this program I spend time explaining some of my concerns with annuities in general and their application in 401(k) plans. There have been some recent regulatory changes that will make it easier for insurance companies to use so-called lifetime income options (annuities) inside of qualified retirement plans.
There are some significant potential problems with these new products that business owners and their employees should be aware of. As you would expect, they are going to be sold as a simple solution but they are anything but simple. I hope you enjoy the program.
Segment 1 – Basic annuity concerns
Segment 2 – My concerns for business owners with lifetime income options (fiduciary liability with a very long tail)
Segment 3 – My concerns for employees with lifetime income options
Segment 4 – A short segment introducing Tony Robbins and his new foray into the financial services world