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WealthManagement’s Fifteen Must-Listen Financial Podcasts Featuring That Annuity Show

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The cast of That Annuity show is proud to report that our retirement podcast, was recognized as one of the “Fifteen Must-Listen Podcasts” by WealthManagement.com. I/we really want to thank all the great guests in 2021 who made this possible. In particular, I/we want to give a big shout-out and thanks to Terry Heys, Annuity Gator for nominating us for this honor!

Thanks to our sponsors, The Index Standard, CUNA Mutual Group, SE2 and Nassau Financial Group. And thanks to you, our listeners.

Also, do you want to get regular updates on news about guests of our show? Subscribe to our newsletter, below. 

Links mentioned in this show:

https://www.wealthmanagement.com/careers/fifteen-must-listen-financial-podcasts 

Episode 103: Confidently Sorting Through a Sea of Indices With Laurence Black

Episode 98: Aligning All Interests – The Client, The Advisor and the Company With Yale Bock

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersWealthManagement’s Fifteen Must-Listen Financial Podcasts Featuring That Annuity Show
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Advisors Ponder Bitcoin, ‘Decade Of Disappointments’ In 2021 News

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There’s never a lack of stories about advisors and the advice they offer. As in other years, 2021 was replete with predictions and proclamations about financial direction.

1. Too Late For The Bitcoin Gold Rush?

The gold rush for Bitcoin might be subsiding, even though predictions are the digital currency will still increase in value. FOMO, the fear of missing out, is driving consumers to grab Bitcoin now, but they may be too late.

There’s still money to be made off Bitcoin purchased today, but investors won’t enjoy the same multiples as early adopters.

That is because even if each bitcoin grows to hundreds of thousands of dollars in value, it is not the same multiple that someone would have seen with a bitcoin purchased several years ago, said Jamie Hopkins, Carson Group director of retirement research.

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersAdvisors Ponder Bitcoin, ‘Decade Of Disappointments’ In 2021 News
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Factoring Inflation into Your Retirement Plan

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Right now, inflation is top of mind for everyone, perhaps especially retirees.

Inflation is important. But it is only one of the risks that retirees have to plan for and manage. And like the other risks you have to manage, you can build an income plan so that rising costs (both actual and feared) do not ruin your retirement.

Inflation and Your Budget

Remember that in retirement your budget is different than when you were working, so you will be impacted in different ways. And, of course, when you were working your salary and bonuses might have gone up with inflation, which helped offset long-term cost increases.

Much of your pre-retirement budget was spent on housing — an average of 30% to 40%. Retirees with smaller or paid-off mortgages will have lower housing costs even as their children are busy taking out loans to buy houses, and even home equity loans to pay for home improvements.

On the other hand, while health care looms as a big cost for everyone, for retirees these expenses can increase faster than income. John Wasik recently wrote an article for The New York Times that cited a recent study showing increases in Medicare Part B premiums alone will eat up a large part of the recent 5.9% cost of living increase in Social Security benefits. As Wasik wrote, “It’s difficult to keep up with the real cost of health care in retirement unless you plan ahead.”

Inflation and Your Sources of Income

To protect yourself in retirement means (A) creating an income plan that anticipates inflation over many years and (B) allowing yourself to adjust for inflation spikes that may affect your short-term budget.

First, when creating your income plan, it’s important to look at your sources of income to see how they respond directly or indirectly to inflation.

  1. Some income sources weather inflation quite well. Social Security benefits, once elected, increase with the CPI. And some retirees are fortunate enough to have a pension that provides some inflation protection.
  2. Dividends from stocks in high-dividend portfolios have grown over time at rates that compare favorably with long-term inflation.
  3. Interest payments from fixed-income securities, when invested long-term, have a fixed rate of return. But there are also TIPS bonds issued by the government that come with inflation protection.
  4. Annuity payments from lifetime income annuities are generally fixed, which makes them vulnerable to inflation. Although there are annuities available that allow for increasing payments to combat inflation.
  5. Withdrawals from a rollover IRA account are variable and must meet RMD requirements, which do not track inflation.   The key in a plan for retirement income, however, is that withdrawals can make up any inflation deficit. In Go2Income planning, the IRA is invested in a balanced portfolio of growth stocks and fixed income securities. While the returns will fluctuate, the long-term objective is to have a return that exceeds inflation.
  6. Drawdowns from the equity in your house, which can be generated through various types of equity extraction vehicles, can be set by you either as level or increasing amounts. Use of these resources should be limited as a percentage of equity in the residence.

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersFactoring Inflation into Your Retirement Plan
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7 Easy Ways Every Boomer Can Catch Up on Retirement Savings

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…Get Out of Debt

A key principle in saving money is making sure you don’t owe anything. According to Paul Tyler, CMO of Nassau Financial Group, that means paying off anything you owe as quickly and efficiently as possible.

“Take your first lesson from the Squid Game and get out of debt as quickly as you can,” Tyler said. “This includes all credit card debt, school loans, and even the mortgage on your home. The savings from interest payments can rapidly increase your retirement savings.”

If debt’s not a concern, Tyler still recommends that you “suck in your stomach and save a little bit extra” in the coming year….

Read the full article, here: https://www.gobankingrates.com/retirement/planning/boomers-retirement-savings/ 

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley Saunders7 Easy Ways Every Boomer Can Catch Up on Retirement Savings
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AM Best Upgrades Credit Ratings of Nassau Financial Group, L.P.’s Insurance Subsidiaries

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OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has upgraded the Financial Strength Rating (FSR) to B++ (Good) from B+ (Good) and the Long-Term Issuer Credit Ratings (Long-Term ICR) to “bbb” (Good) from “bbb-” (Good) of Nassau Life Insurance Company, Nassau Life and Annuity Company and Nassau Life Insurance Company of Kansas (Overland Park, KS). All of the aforementioned companies are collectively referred to as the Nassau Insurance Group (Nassau).

In addition, AM Best has upgraded the Long-Term ICR to “bb” (Fair) from “b+” (Marginal) of Nassau Companies of New York, Inc., along with its existing Long-Term Issue Credit Ratings (Long-Term IRs). All companies are headquartered in Hartford, CT, unless otherwise specified. The outlook of these Credit Ratings (ratings) has been revised to stable from negative. (See below for a detailed listing of the Long-Term IRs.)

The ratings reflect Nassau’s balance sheet strength, which AM Best assesses as strong, as well as its marginal operating performance, neutral business profile and appropriate enterprise risk management (ERM).

The rating upgrades reflect the group’s improved risk profile and strengthened levels of risk-adjusted capitalization on a GAAP consolidated basis, as measured by Best’s Capital Adequacy Ratio (BCAR), due to the transfer of PHL Variable Insurance Company to a holding company that is not owned or controlled by Nassau Financial Group, L.P. or any of its subsidiaries. PHL Variable Insurance Company held a significant amount of high interest rate universal life insurance policies with secondary guarantees that have been a primary reason for significant earnings volatility for the organization over the past several years. The group’s risk-adjusted capital levels also were bolstered by a significant equity infusion from an outside investor. Furthermore, Nassau’s capital and surplus position has increased significantly through the third quarter of 2021 due to the retention of improving operating results that have benefited from reduced mortality, a rebound in investment income and increased earnings from the Foresters Life Insurance and Annuity Company (FLIAC) acquisition that closed in 2020. As a result, the company’s financial leverage ratio has improved substantially, and the amount of intangible assets has been reduced to approximately 75% of shareholder equity.

While Nassau has experienced positive earnings in 2021, net income has historically experienced significant fluctuations on a GAAP and statutory accounting basis due to reinsurance activity, declining investment income and increased mortality within its legacy life insurance business along with other non-recurring expenses. AM Best notes that the lower earnings in recent periods and the use of excess capital for the FLIAC acquisition substantially reduced the company’s statutory capital position and constrained its financial flexibility. The company also maintains exposure to structured securities within its investment portfolio (approximately 20%), including collateralized loan obligations, which includes an elevated exposure to lower-rated tranches. AM Best believes that this portion of the investment portfolio would be less liquid during stress events. However, the group experienced only a moderate amount of impairments in its general account investment portfolio in 2020 and through third-quarter 2021 and currently maintains a significant unrealized gain position.

Management has made significant progress in recent years, streamlining operations and strengthening its ERM framework and capabilities. This includes Nassau’s focus on environmental, social and governance (ESG) initiatives, which includes a diversity, equity and inclusion program and supporting environmentally focused organizations.

Click here to read the full press release. 

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersAM Best Upgrades Credit Ratings of Nassau Financial Group, L.P.’s Insurance Subsidiaries
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8 Predictions for Retirement in 2022

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Retirement planning covers a lot of issues, including long-term care management, income decumulation and almost everything in between.

We asked several retirement experts what they saw on the horizon for 2022 and what advisors and their clients should expect in terms of the impact of these potential changes. Those weighing in are: Wade Pfau, Carolyn McClanahan, Jamie Hopkins, Marcia Mantell, Ted Benna, David Blanchett and Moshe Milevsky.

See the gallery above for their forecasts of what advisors should expect in the retirement business next year.

Read the full article: https://www.thinkadvisor.com/2021/12/28/8-predictions-for-retirement-in-2022/

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley Saunders8 Predictions for Retirement in 2022
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In a $1 Million Retirement Income Portfolio, Investors Choose Annuities and Protection Over Traditional 60/40 Allocation

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WASHINGTONDec. 6, 2021 /PRNewswire/ — According to the newly released Alliance for Lifetime Income and CANNEX Protected Retirement Income and Planning Study, investors who were asked to build their own hypothetical $1 million retirement portfolio, said annuities and other income-producing assets were the most favored. The study is a joint research effort designed to better understand and forecast retirement income trends among investors and financial professionals.

When investors designed their $1 million portfolio, they allocated approximately 20% ($200,000) to dividend paying stocks, 14% (approximately $145,000) to real estate and 13% ($136,000) to annuities. Bank CDs (11%) and bonds (10%) round out the top five asset category choices, while “trending” investment opportunities such as SPACs and cryptocurrency fell to the bottom, with 3-4% of assets allocated to each.

The findings contradict the longstanding 60/40 strategy in which 60% of a retirement portfolio’s assets are invested in stocks, while the remaining 40% are invested in bonds—an approach originally designed to simultaneously grow assets and provide income.

“Investors showed a clear interest in building a retirement portfolio that was protected with an annuity,” said Jean Statler, CEO of the Alliance for Lifetime Income, a nonprofit consumer education organization. “We believe this is yet another blow to the outdated 60/40 portfolio mindset. Our research continues to show growing interest and significant demand from consumers for protected income, as more Americans become educated about the lifetime income, asset protection and other benefits of annuities. Unfortunately, the research also found that financial professionals continue to underestimate the intensity of consumer interest in annuities that provide steady income, which is important in volatile markets.”

An overwhelming majority of investors (85%) are interested in owning an annuity that guarantees lifetime income, or already own one. Of investors who are interested in owning an annuity with lifetime income, 49% are extremely interested. In stark contrast, the corollary study of financial professionals found just 18% believe their clients are extremely interested in annuities with lifetime income, indicating that there is a huge gap in what investors want and what advisors think they want. “If that gap continues to widen, financial professionals are likely to find that their clients will go elsewhere for advice,” Statler added.

The study was conducted by Artemis Strategy Group in August and September and includes surveys of 2,004 investors age 45-75. Simultaneously, 505 financial professionals were surveyed across the spectrum, from registered investment advisors to national wirehouses.

Read the entire Press Release: https://www.prnewswire.com/news-releases/in-a-1-million-retirement-income-portfolio-investors-choose-annuities-and-protection-over-traditional-6040-allocation-301437722.html 

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersIn a $1 Million Retirement Income Portfolio, Investors Choose Annuities and Protection Over Traditional 60/40 Allocation
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Opinion: Why small amounts saved now can boost retirement income later in life

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One way to help retirees stretch their savings further

Did you know that seemingly small differentials in the price points at which investments, annuities and other elements of retirement income strategies can be delivered from within a Defined Contribution (DC) plan can, for certain retirement plan participants, add up over the course of a lengthy retirement to several hundred thousand dollars of additional income, relative to income solutions offered at retail price points?

According to a white paper recently released by the Institutional Retirement Income Council (IRIC), self-directed participants in employer-sponsored retirement plans can, in many cases, generate more income and/or higher asset balances by using products and programs offered within their defined-contribution plan than they can by rolling those assets over to a retail account within an IRA.

Specifically, IRIC estimates the accumulated balance and retirement income of a hypothetical, middle-income participant that remained in her DC plan for both investment services and retirement income services for her entire life, relative to what that participant might have experienced if she had rolled her accumulated balance to an IRA at retirement. The participant in this hypothetical case was able to accumulate about $1 million at retirement by saving consistently from age 23 through age 65.

IRIC reviewed the income this participant would receive through age 95 from in-plan investment relative to investments with a retail fee structure under an IRA under three different income approaches:

  1. Estimating the additional income and additional remaining balance using withdrawals through 95 under the IRS required minimum withdrawal table
  2. Estimating the additional income and additional remaining balance at 95 using institutional versions of guaranteed minimum withdrawal benefits (GMWBs)
  3. Estimating the additional income through 95 when using institutional immediate and deferred immediate annuities

Read the entire article: https://www.marketwatch.com/story/why-small-amounts-saved-now-can-boost-retirement-income-later-in-life-11639075197?link=MW_latest_news

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersOpinion: Why small amounts saved now can boost retirement income later in life
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Evaluating an early retirement offer: What to consider before accepting one

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…Your financial situation

While you may end up taking an offer because you’re making the best of a bad situation, you’ll want to consider a number of issues that may arise if you’re not employed. But while you’re taking early retirement from this company, that doesn’t mean you have to retire. You’ll also want to consider how accepting the offer affects your retirement finances such as Social Security.

If working is a lifestyle decision, you’re in an enviable position, but whether working is a choice or not, you’ll still need to assess your financial picture, especially if you’re on the younger side. Chuck Czajka, founder and CEO of Macro Money Concepts in Stuart, Florida cautions that “The younger you are, the more stress will be placed on retirement assets.”

“Do you need to work to pay your bills,” says Tyler. “You may be lucky enough to have earned and saved enough to be financially independent. If you fall into this rare category, congratulations.”

If the offer is generous and you think you’re able to retire, experts recommend that you review your finances thoroughly before making that decision.

You’ll want to ask yourself:

  • Do you have enough to live comfortably in retirement?
  • Are you old enough to access retirement accounts such as a 401(k) or IRA penalty-free?
  • Do you have access to healthcare, and will you be able to afford it?
  • What other sources of retirement income do you have available?
  • Will taking early retirement have a negative impact on your pension (traditional defined benefit plan)?
  • Do you have hobbies or other pursuits that you are passionate about if you retire early and no longer have work to keep you motivated and engaged?

If you retire early, you might be able to get by for a few years until you can access your full retirement funds at age 59 1/2. However, you’ll also want to consider how early retirement affects Social Security, a decision that will impact your monthly benefits for the rest of your life:

  • Calculate your benefits to see how much retiring now will affect your payout later.
  • Have you already worked enough to claim a sufficient benefit?
  • Will you be able to pull through financially until Social Security kicks in?
  • Will you opt for an early benefit rather than your full retirement benefit?

While early retirement sounds attractive, you’ll want to keep these questions in mind and consult with a financial planner and/or tax professional, because you may be giving up more than you anticipated – financially and otherwise – when you first decided to retire. …

Read the full article: https://www.bankrate.com/retirement/should-you-accept-early-retirement-offer/

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersEvaluating an early retirement offer: What to consider before accepting one
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Annuities And Predicting The Right Time For The Market With Paul Tyler

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Paul Tyler, one of the That Annuity Show hosts and Nassau CMO, was a recent guest on Kevin McCullough Radio! Paul joins Kevin to talk about annuities and market predictions.

Listen to the audio release, here: https://soundcloud.com/kmcradio/20211206-annuitys-and-predicting-the-right-time-for-the-market-with-paul-tyler

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The discussion is not meant to provide any legal, tax, or investment advice with respect to the purchase of an insurance product. A comprehensive evaluation of a consumer’s needs and financial situation should always occur in order to help determine if an insurance product may be appropriate for each unique situation.

Ashley SaundersAnnuities And Predicting The Right Time For The Market With Paul Tyler
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