About
Have you read the book?
Please reach out for a hard copy or PDF version. Maximizing retirement assets and income has been my specialty for over three decades. You can learn more about me on the "Additional Information" page of this website. And below you can read about solutions to the most common mistakes outlined in the book.
One other point, as you may have ascertained from the name of this website, I feel maintaining an income stream that is sufficient for your retirement needs should be near the top of the list of financial goals.
Retirement Savings Overview
The Top Three Custodians of Retirement Funds are Wall Street, Banks, and Insurance Companies.
Wall Street offers the greatest level of uncertainty. There is no Federal Bail-Out when these Retirement Savings are lost. Currently retirees and pre-retirees are concerned about lack of stability in the markets, and many have taken substantial losses in their retirement accounts. Current high interest rates have put more downward pressure on the world markets.
Banks are FDIC insured, BUT how can the FDIC guarantee money is safe if the current bank issues are systemic and spread to the largest banks? According to Forbes, 465 banks failed between 2008 and 2012. The list includes the largest bank, Washington Mutual that had $307 billion in assets. And more recently, Silicon Valley Bank's failure on March 10, 2023 with $209 Billion in assets and First Republic Bank May 1, 2023 with $212 Billion in assets.
There is currently a 10% to 20% default rate on commercial real estate loans, equivalent to between $80 billion and $160 billion in bank losses, researchers from Columbia, Stanford, the University of Southern California and Northwestern wrote in a working paper published by the National Bureau of Economic Research.
Insurance Companies provide Annuities that offer guaranteed principal, guaranteed income and peace of mind. Insurance companies are inherently stable due to statutory reserve requirements, reinsurance requirements and mandatory membership in guaranty associations. During the same period of time (2008 through 2012) when 465 banks failed, only three annuity providers failed.
With the current turmoil affecting Wall Street and Banks, there has never been a better time to talk about the safety and guarantees.
Solutions
The challenge is creating a diversified portfolio that will protect retirement assets and still offer long term growth during our current unstable economy. I have TWO solutions.
They are both "Indexed" plans. By that I mean they are linked to the stock market, but are not actually in stocks. In other words, if the Bears are right and the market crashes, you will not lose your savings. If the Bulls win and the market continues to grow, you have the potential to lock in gains. Would that not be the best of both worlds?
The first plan is guaranteed by an insurance company as it is a special type of annuity. They do not force annuity payments and they offer designs that in the long run end up fully liquid. Contractual provisions offer ways to avoid all fees.
The second plan is offered by investment banks like Morgan Stanley. In the long run some pay 100% of market gains while avoiding losses. Most of these programs are offered by Registered Investment Advisory firms and as such, advisory fees would apply.
I have brochures and spreadsheets if you want to learn more.
Contact Me
661-713-5021
Send me a message, and tell me more about your financial goals and needs. I will get back to you soon to schedule a consultation.
Todd Ensing,RICP®, IAR
