Real Risks, Real Solutions, Real World

ABOUT THIS EPISODE

Hear Archie and Edith's story of how they obtained a "private pension" and preserved their American Dream lifestyle, RV and all! 

Welcome to the don't play retirementroulette, podcast with Dan Sullivan. You were hard for your money and youshouldn't risk losing it and jeopardizing your future. Listen asAmazon, the best selling author and retirement planning, expert DanSullivan, shares his strategies to lower your rest and secure your future. Once again, I'm joined by Dan SullivanDan is the international best selling author of the book. Are you playingretirement roulette and this chapter the final chapter of your book? Youtalk about real risks, real solutions, real world, and so you open thischapter just talking about how you interact with different clients. So Iwanted to know you know when you first meet a client. What can they expectfrom those first few means with you. So I go to three steps, and the firststep is that I just sit down, have a...

...very long conversation with them. Ithas very specific questions and I will sit down anywhere from anhour and a half to sometimes three hours, and people are amazed that I'llspend that much time and we will not talk product to services during thattime, just with their goals. Aspiration risk scholar, ance, says potential cost of retirement and allthese things that put unnecessary to put together a plan. So I think it'sactually the converses that I think it's amazingthat when some people sent down with aretirement adviser a financial visor, they don't spend an hour and a half tothree hours with them in the initial meeting, because the next decisionsthey are going to make, I got to affect their entire life, so it's extremelyimportant that everything is properly...

...vented. So after the first meeting wewill make plans to get together in a couple of weeks time. The reason I givethat time is that I put a lot of thought with my team who actually deTailor a financial plan for their based on the conversations that we had andthen the the potential custer will hev come in for the second meeting andduring the second meeting we will go through the plant. Now I might havemisinterpreted self like when we talked the first time. Well, I'd be right, I'mfront with them and say if I miss a Turputine to an back while we're goingand in fact some people boing said no well, I like what you're saying Dan,but that's too aggressive, maybe a little bit more conservative and whatI'll do is. I will alter the plan for them, but them realizing that the dentresults might be a little different using different type of strategies. Sowe go to the plan and and vented...

...properly during the second meeting, andI give them some subpoena solutions to make them able to achieve theirretirement goals and aspirations. Then we decide for them to have a thirdmeeting so that they can go back. Think about the plan again, the writtenretirement financial plan bounded nicely, and I want I turn self to goback and they to ask any questions if there any confidants that they talk tohave dol er. The plan with them then come in for the third meeting on thethird beating. What we'll do is we will go through any questions that they haveany comments. They were going to come to one or two results at the end of thethird meeting, say Dan, I like what you've done and thank you very much, but for some reason it's not for me andI a can o say fine, the plan. It is Jos to keep no cost ofobligation, or they might say Dan. I...

...really like what are you saying I liketo do a little bit more of this strategy, a little bit less wore liketo do exactly what you said or o. Why engage a services of that? We go on tothe next step and the Stop the necessary paper work to start good gameservices, those a very simple one, two three step process that I use of theplanting process and after we do engage services. If we do engage services,then why one requirement that we meet at least once a year after that andoften time I encourage people to to beat every six months or recorderwhatever they're comfortable with that was knowing that addition to that Betas.Any questions I give my cell number by the email getting contact, because Iwant people to feel very comfortable and have the ability to sleep at night,knowing that they're put together a retirement plan, that's going to gethim through the next thousand and twenty five years forever. However, alog that there on the SR...

...you wrap out this chapter by talkingabout some of your clients- and of course you know, you changed the namesto prefect to protect their privacy, but you shared the story of Archie andEdith. So I was hoping that you could maybe share that story with those thatare watching so our archonidas, and just to be clear that this is acomposite. I've been doing this for a while, so I don't really talk aboutindividual people on it, but these are some of the problems that I comethrough on a weekly, if not a daily basis, so art thou edith came in. Areyou work very hard for years at at at a job out a huge four o one K, relativelyspeaking? They was smart with their money and the a D, and we went throughthe process, and we came to the conclusion that maybe that there itinvestment portfolio has set up, did not number one meet their restaurantsin number two,...

...when looking at it, there was adefinitive gap on the amount of money that they wanted to retire on in theamount of Bondy at that this portfolio could safely produce. So we have somesuggestions for them that they can Britch that gap, but then some so theyget to retire comfortably. So two of the things that really came out withour archie and edith is number one. Well, he thought he had a very safeport, folio God in respect to his actual holdings. There are somepotential for some very big problems down the road, the first being thatarchie was under the misconception that, since he had a large amount of his fouro one K in bond funds that they were a hundred percent totally safe. What Iexplained to Archie was that as a interest transfer at all time low, no,this starting to come up as interest...

...rates increase in value bond priceswill lose value a d and the Tayash they were. They were just dumb struck intheir regard because they never considered the fact because it was, itwas accepted, wisdom out there if you put your buddies in bonds as safe, gotthe case. As we talked about a previous podcast, the Bard markets had a hugerun, but with any event in this, but it's the end of the bull market bondsand what happens at the end of a bull market usually is a flat market or abeer barket. So that's the first big problem that that they had the secondbig problem that Archie had is that he also took the conventional wisdom out their,so he could take five per cent of his portfolio out on an on going basis andlive off of that money for the rest of his life. Now, if you remember what wetalked about previously and a previous...

O podcast, is that buddy behanedifferently in the three different levels? That was true during theaccumulations lovel. He can have the money invested very aggressively. So then there's apreservation portion of hid, the of the stages ofmoney, but they are actually rapidly going into the distribution pace. Andthen we have talked about sequence of events and tied to the together withthe money behaves of three different stages.Well, coming a long story short if they prescribe to that Cobaya cepted, therule, five percent or four percent of the portfolio, and we went into a beermarket prices going down such as two thousand and two two thousand and eightguess what they would have run out of money. So we made a particular suggestion to them. We described thathe might have that want a portion of...

...that money in a a privately managed Ortoli ofindividual stocks that we talked about in the previous podcast. A private,well strategy of the second thing that we had talked about is putting moneyinto a vehicle that would guarantee them income for not only on Archie'slife, but on Edith's life. As long as they're on the surf, they would stillbe the check of the male check of the male check of the mail check into themail, and what on recommendation was what I call a private pension annuity.It had a private pension of nuity and I know that annuities can have. It could be a bad word to a lot ofpeople and and rightfully so because died out of ten, probably out all thatgreat, but it's so like when you going to buy the looking at cars. So I had aa Chevy Vaga in high school right. Wasn't too pretty W, it was brightarright...

...right now I have a Nice Cadillac, nice,just so Jo School. I am, I tan people say God hear people still by those the din. In addition to that, so I cana beautiful catala in a Vega they're, both cars right well, one's pretty goodand the other one's, not so good. So, in notes are not the same way. Some dosub spectacular thanks for for you and retirement in others, notso good and probably should be avoided. So the one in particular that we talkedabout with with Edith and archy is actually one that normally will giveyou competitive interest rate that will give you a portion of the upside thestock market. But if the star Bark it sells off, there'll be no principalloss in the account, in addition to that, it has an income component. To ofthat once you turn it on. The income will provide money for archie life andand edith slice at a dish of that about...

Er. How long got the road this curt andI'm sure it's moments like that that really make your job kind of worth itwhen you're able to provide a solution for someone? So very briefly, can youcan you explain? Maybe what is the most rewarding part of your job? It happensevery week for some reason: a significant I've been doing this a longtime. So if I actually guided a lot of people into retirement and thatbrainton Sarasota area a lot of them move in a know each other, but theyended in that Bradinan Sarasota Florida area every week, I'll get calls of dryand I'll talk to those people. Who've got it into retirement. They can'tspend the money that we have set up with the guaranteed it cumstances forthem in retirement. It's a beautiful thing, so not only they getting moneycoming in the paying all the bills that they're doing their home, but atwhatever they aspired to an retirement...

...they taking trips, as actually theirsavings accounts to keep on growing in a ditictive. So the reward I get is bythe archies and ediths which which I enjoy and that I'm getting on the rightpath. It's the ones that actually are at the finish, a going towards thefinish line and I've had a worry free retirement. I love hearing that DanSilvan, the international best owing author of the book. Are you playingretirement roulette pick up a copy on Amazon at today? Dan. Thank you. Somuch of course. For your time, I appreciate you like I only thanks for listening to the don't playretirement roulette, podcast with Amazon, best selling author DanSullivan, learn more or get a copy of Dan's book when you reach out to himand Sullivan Retirement Com. That's SULIVAN RETIREMENT COM,...

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