The Almighty Income Check  

By |2021-07-23T19:38:24+00:00March 18th, 2017|Annuities|

Like the Beatles said: “All you need is income.”

It’s important to realize the difference between our working years and our retirement years. In our working years, we work for income and savings. It’s all about income and the security it brings—the almighty paycheck. In our retirement years, we want our savings to work for us and create the revenue to continue the security in retirement; that’s the almighty income check.

In our retirement years, it’s a whole new ball game with different rules and different risks. Let me show you how to guarantee yourself (or yourselves as spouses) a safe, happy retirement without the stress. For more than twenty-six years here at Mayfield Financial & Estate Protection Services, we have focused on providing growth, guaranteed income, and financial protection for the clients we serve in all types of market and economic environments. You see, in retirement, the best rule is to protect the money that you need day to day, to preserve that part of your portfolio that creates the almighty income check. Income is king over any other part of your portfolio. Unless that is, you’re so wealthy that dangerous market conditions, or even a bear market, doesn’t have any effect on your overall income needs.
One of the problems with the financial services industry is that instead of coming together and using all the financial tools available, they mostly pull apart. In the investment world, they want to talk about investing over the long term and hold and stay in the market, and there’s nothing wrong with that if you have the time and the money to do it.

However, for the other part of your portfolio that needs to generate guaranteed income, that would be an entirely different plan with guarantees to get you through any situation that may come up—in a good market, a bad market, and anything in between. This is an entirely different type of planning that is generally not considered part of the overall portfolio. At Mayfield Financial & Estate Protection Services, we don’t take our “safe money” planning, pit it against an investment portfolio, and then try to convince you that one is better than the other. They are entirely separate and should be looked at separately as to what the money should be doing and what the purpose is for that money. It’s a real easy financial equation if you break it down to specifics about which money should be doing what.

In any one given year, it’s not really about how much you win but is about how much you actually get to keep off the win—every single solitary year that you’re in the financial game. So if you had part of your money in a position where the worst-case scenario was a zero loss or a zero gain. Meaning you got to gain and retain last year’s earnings but didn’t have to give back the next year versus gaining a substantial amount for three or four years and then losing a sizeable amount or all of your gains.

What happens with that is the portfolio will begin to implode if you’re pulling money out of it; there’s no stability there. And you need stability for the long term. Granted, it’s not as much fun as your risk money. Still, I don’t know anybody who walks into the casino with every single dime they have to their name and then putting it into eleven or twelve games of chance and hoping that the averages come out good for them all the time. Usually, we go to the casino with the money we can afford to lose or do something different or fun with; your “safe money” is put away where it will stay safe.

It’s important to know that in this world today, there are places where you can place your money where it is guaranteed and insured; places where nobody has lost any money, and you can assure yourself a reasonable return to help get you through life’s tougher times and life’s better times, as well.

Let’s talk about the safe money program. Let me give you a for instance: here’s a plan that I put into place in January of 2006 before the drop that occurred from October 2007 to March 2009. It was just a regular Individual Retirement Account, and somebody wanted to put away some money for retirement. That was eleven years ago. That particular value has averaged out (because we’ve never taken any downside portfolio, which can give you a true average because of taking no losses) at 5.77%. That’s 5.77%, with no losses.

Let me give you an idea of how it did last year. It has the opportunity to have an index interest-crediting method to the S&P 500. We’re not invested in the S&P 500; it’s just a crediting method to the S&P 500 for a period of time from January 28, 2016, to January 27, 2017. Over that period of time, the money that was linked to that strategy earned 9.87%. That’s a safe money product. It’s not near what the stock market did in the S&P 500, but we get to keep our gains, no matter what happens going forward. It also has the availability of the NASDAQ 100 Index, being linked to a crediting method there. There’s no money invested in that particular investment strategy, but it is linked to it for an interest credit return. It had a 10.81% interest rate to the part of the money linked to that strategy.

Again, that’s not as much as the market did, but we get to keep all the gains. So it’s called “gain and retain, “not “gain and give back.”

If you’re consistent with gain and retain and willing to take a zero when everyone else is losing money, then this is absolutely your type of financial planning; it’s perfect for that part of your portfolio that needs to be safe and secure, with a guaranteed income option for life and 100% of any balance at death going to the beneficiary(ies) of your choice.

 

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About the Author:

Wm. Jed Mayfield, Jed is President of Mayfield Financial and Estate Protection Services, Inc. and the host of the Worry-Free Financial Solutions radio Show of Tucson. Host of the Jed Mayfield Worry Free Financial Radio Show. Websites: mayfieldsafemoneyadvisor.com | mayfieldfinancial.retirevillage.com

Toll-Free: (800) 753-9305 | Office: (520) 322-9773 | Mayfield Financial & Estate Protection Services, Inc.