​When you move money into a fixed index annuity there are no fees to have your money professionally managed. Insurance carriers who offer these fixed index annuities pay professional money management companies to come in and do what they do best. Grow your money.

The payment doesn’t come from your transfer of money into a new safe account. “Not a nickel is taken out of your account to pay these money managers. The less fees the harder your money works for you. The indexes inside these fixed index annuities are professionally managed,” said Bob Lindquist, founder of Safe Retirement Strategies.

These professionally managed index funds are not available to the general public for direct investing. They are only available through the insurance carriers offering fixed index annuities. The perception that these are not growth vehicles is false. They are handled by the world’s most respected investment firms.

For example, one of the fixed index annuities that Safe Retirement Strategies offers is tied to an index managed by JP Morgan, a global leader in investment banking and financial services with a proven track record of award-winning index design.

It utilizes the same investment philosophies used by the largest institutional investors seeking positive returns in both good and bad market environments. With a strategy to potentially generate consistent returns while managing volatility, the index leverages a diversified group of asset classes including equities, fixed income and commodities to provide greater opportunities for growth than a single asset class. As the money grows, you "lock in gains and never expose them to the risk of loss.”

It also tracks momentum and each month the index selects asset classes with the highest returns to capitalize on proven and persistent performance. Finally it manages volatility. The index proactively rebalances the selected asset classes each month to provide a more stable return.

Another index available through a fixed index annuity is run by Morgan Stanley. It’s called the Global Opportunities Index. Managed exclusively for the insurance carrier, the index uses a proprietary multi-asset trend following strategy to determine allocations and track the performance of the underlying instruments in three main assets classes: equity, fixed income and futures.

The annual return of the index is based on the aggregate performance of the underlying instruments in each of these asset classes and categories. By taking a multi-asset approach, the index can diversify risk and reduce volatility by rebalancing exposure to various market risk factors within each asset class or category.

Using a trend-following strategy, the index seeks to identify and respond to investment trends in different market environments. The index objective is to increase its allocation to assets that exhibit strong upward trends and pares back investments during market downturns.

It also tries to take advantage of long and short-term price moves that play out in various markets. It’s shown positive returns in each of the past 10 calendar years. Morgan Stanley is one of the world’s largest diversified global financial services firms with offices in New York City, London, Tokyo, Hong Kong and other financial centers. For decades Morgan Stanley has been a leader in providing advisory services for companies, governments and institutional investors worldwide.

For your introductory guide to fixed index annuities call 913-814-9600.

​With bonds and bank CDs paying so little interest, Americans in or nearing retirement who need to grow their money safely and generate predictable income are looking for new ideas.

“People who have worked a lifetime to accumulate money have run out of time to lose it. They can’t go backwards because they don’t have 5 or 10 years to make it up,” said Bob Lindquist, founder of Safe Retirement Strategies. "While other people were losing 30% to 40% of their lifetime savings in 2008, my client’s didn’t lose a penny.”

When the market index such as the Dow Jones Industrial Average or the S&P 500 value climbs, the annuity credits gains to your account. But when it slides, the investor loses no money. Both your principal and all previously credited gains are fully guaranteed, regardless of how the index performs in future years.

Many people brush fixed index annuities aside as a gimmick and don’t take a minute to understand how they work. They are however, well worth investigating because if you like what you learn they might have a place in your portfolio. A fixed index annuity balances safety and preservation of your principal with the potential for the gains of a market based investment.

Fixed index annuities offer a way for conservative investors to leverage a vehicle that prioritizes safety and protection of principal and still has the potential for higher returns than traditional fixed investments.

Lindquist told KMBZ's Dan Weinbaum that fixed index annuities are not popular with many financial advisors because client money that is secured in these long term savings and income vehicles is no longer money in play and is unavailable for commission-based transactions.   

“This is not the 20th century annuity. It’s a brand new design that is so respectful of retirees. It may sound too good to be true. But it isn’t. Fixed index annuities are very attractive because the principal investment and market gains are protected and guaranteed from loss,” he said.

That means that your money will be there for you and your beneficiaries when you tap into it for a stream of income that continues for a lifetime. These withdrawals are guaranteed even if they completely deplete the capital in your account.

So unlike people who directly invest in the market and expose their capital to significant losses, with fixed index annuities you have a brand new starting point at the beginning of every contract year and never have to recover any previous losses.

All that being said, it’s important to work with an expert who pays attention to the details. Each fixed index annuity offers different components and characteristics and the quality of insurance companies vary. Lindquist can help you understand the underlying index, the guarantees, and the way the earnings are credited to the investment account.

For your introductory guide to fixed index annuities call 913-814-9600.

​Bob Lindquist, the founder of Safe Retirement Strategies, says there is a “massive gap” between the income people expect to have during retirement and what they will actually have and be able to spend.

Rising health care costs and longer life spans eat up more annual retirement income than is expected by most Americans causing significant financial and emotional stress. The rule of thumb is to put yourself in a position to replace 70% to 90% of your annual pre-retirement income.  

The possibility of outliving hard-earned savings is a real threat to Americans currently in or approaching retirement. Most of us are focused on building investment portfolios and accumulating savings that we intend to “spend down” when we retire.

But there is a fundamental flaw in that strategy. Even people who spend their whole lives growing their savings worry they will be unable to maintain their desired lifestyle in retirement due to market losses or unexpected expenses.

To ensure a secure retirement, people need a plan not only to build a large nest egg but to protect their savings and replace the income they had when they were working. The younger they start retirement income planning the better prepared they will be to fill the gap.

“We’ve worked for 30 or 40 years and our retirement may last longer than that. We’re living so much longer. Prices keep going up. Just saving money isn’t enough. We need to generate income,” said Lindquist.  

The reality is, there are only 3 sources of guaranteed income: social security, pension plans and fixed index annuities. The latter gets a bad rap because of widely held misconceptions that annuities are just insurance and not a real investment vehicle.

Sure we want our money to grow. And these are professionally managed investments by some of the biggest names on Wall Street. But unlike mutual funds and exchange traded funds, “every year that our money grows the gains are locked in and never exposed to market risk again.”

It never ceases to amaze Lindquist how many people are reluctant to tap into a vehicle that generates income they can never outlive just because it’s being offered by insurance companies. “You’ve worked a lifetime saving money. You deserve peace of mind.”

With fixed index annuities, after years of saving you are free to enjoy the benefits without worrying about running out of money. Your retirement satisfaction depends on having the money you need to spend on leisure activities like travel, entertainment, dining out and hobbies. Lindquist believes such spending tends to boost happiness because it keeps us more active and socially engaged.     

For your introductory guide to fixed index annuities call 913-814-9600.

​According to the U.S. Department of Health and Human Services, more than half of US adults age 65 or older are projected to need long term care in an assisted-living facility at some point in their lives.  

But just 11% of Americans in this age group own long-term care insurance policies. Actually, the market is in decline because the premiums are too steep, the benefits too low, and the monthly premiums are subject to dramatic increases.

In the past two years many insurance companies have increased premiums by more than 90%, a variable cost that makes planning ahead difficult if not impossible.

At the same time, the costs for long term care today are astronomical. In the Midwest, you could easily spend $6,000 to $7,000 per month for a long term care facility while in home health care is $3,500 to $4,000 per month out of pocket. And costs are on the rise.

In his exclusive KMBZ interview, Bob Lindquist, founder of Safe Retirement Strategies, said fixed index annuities offer an affordable alternative that addresses the long term care crisis. 

Inside fixed index annuity contracts from the largest, most stable insurance carriers in the country, you can choose to add long term care protection. In the event that you need to move into an assisted living facility or rely on in home health care, the lifetime income generated from this retirement savings vehicle will literally double for 5 consecutive years.

“If your investment generates $40,000 in annual income for the rest of your life the insurance carrier will automatically double your annual income to $80,000 to cover the cost of long term care,” said Lindquist.

After 5 years you will still continue to receive the initial level of annual income so you don’t lose the opportunity for lifetime income after the long term care funds are used.

“For people who can’t qualify for long term care on the open market because it’s too costly, their health just isn’t adequate or they are older than 65, fixed index annuities give you the opportunity to have coverage that you never thought you could afford in addition to a safe guaranteed income stream for the rest of your life,” he said.  

For your introductory guide to Fixed Index Annuities call 913-814-9600.

​Fixed index annuities have always tracked the growth of major stock market indexes like the S&P 500, Nasdaq and the NYSE but the insurance companies used to restrict growth by capping returns at 2 or 3 percent of what the market delivered.

During his interview with KMBZ's Dan Weinbaum on the Kansas City Morning News, Bob Lindquist, founder of Safe Retirement Strategies said investors are under the false impression that their opportunities for capital gains in fixed index annuities are extremely limited.

“Years ago when these plans first began in the middle 1990’s people had to deal with 2% and 3% caps on growth. So if the market increased by 10% or 12% you were only able to capture a small percentage of that growth. People didn’t like that,” said Lindquist.

Well that’s simply not the case anymore. Those caps have been completely taken away in today’s plans. Now, just like in the traditional investing marketplace, the opportunity for growth is available to investors inside a safe vehicle.

When the market is doing well you fully participate in the upside growth but when the market drops you’re fully protected from the downside.

“We give you an opportunity to participate in 100% of the growth of an index and you never have to worry about losing your life savings,” he said. “I call this the total peace of mind retirement plan.”

The reason why people shy away from fixed index annuities is because they aren’t aware of the new benefits. They assume they will get better performance in a mutual fund or exchange traded fund because they think these vehicles still limit investors on the upside.

When perception catches up with reality, the stigma will fade and the popularity of these investment vehicles for retirement savings and lifetime income will skyrocket.

For your introductory guide to fixed index annuities call Bob at 913-814-9600.

Most people cringe when they hear the word annuity.

Bob Lindquist, founder of Safe Retirement Strategies, went in studio with KMBZ's Dan Weinbaum to set the record straight.

Some of that misconception stems from confusion between fixed index annuities and variable annuities which are radically different.

A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose.

In stark contrast, a fixed index annuity is a tax-favored accumulation product issued by an insurance company in which the annual growth in your account is bench-marked to a stock market index like Nasdaq, the NYSE and the S&P 500. And unlike variable annuities it provides a guaranteed payout.

“People get themselves all worked up thinking that maybe these insurance companies will guarantee income for a period of time but as soon as the contract is over at death, the insurance carrier keeps all the money remaining in your account. That is not at all how this works,” said Lindquist. Actually, all remaining funds are distributed to your loved ones.

He reminded listeners that in 2008 many investors lost 30 to 40 percent of their life savings. When you’re about to retire you don’t have time to catch up from a catastrophic loss like that.

Lindquist recommends fixed index annuities because they protect your life savings from the downside of the market and grow your money safely regardless of swings in the stock market. “You lock in gains as your money grows every year and never expose the original principal and gains to market risk again,” he said.

In addition, fixed index annuities from Safe Retirement Strategies provide you with a guaranteed stream of income for the rest of your life just like Social Security and pensions. This frees you up to enjoy your retirement without having to worry about outliving your money.

For your introductory guide to fixed index annuities call Bob at 913-814-9600.

According to Fidelity’s most recent study on health care in retirement, the average 65-year-old couple can expect to spend nearly $280,000 on out-of-pocket health care costs in retirement.1 Think that estimate sounds high? Consider that you will likely have to pay for things like premiums, copays, deductibles and more.
 
Many retirees assume that Medicare will pay for most or all of their health care costs. However, that’s usually not the case. Your Medicare coverage depends on your specific options. The more robust your coverage, the higher your premiums are likely to be. And some treatments, such as long-term care and rehabilitation, aren’t covered by Medicare at all.
 
If you haven’t planned for your health care needs in retirement, now may be the time to do so. Fortunately, there are steps you can take to minimize your risk exposure and perhaps reduce your out-of-pocket costs. Below are a few tips to help you get started:

Be a proactive, informed patient.
 
They say prevention is the best medicine, and that’s certainly true in retirement. If you’re approaching retirement, now may be a good time to consult with your physician about your current health and what you can do to minimize risk. For instance, perhaps you could improve your diet or exercise routine. Maybe you should undergo that long-delayed procedure now so you won’t have to deal with it in retirement. Think about what you can do to improve your health.
 
You can also be more proactive when it comes to treatments and services. Once you’re on Medicare, don’t be afraid to ask which tests and procedures are necessary and how they relate to your symptoms. After all, you’ll likely have to pay at least something for much of your care, in the form of either copays or deductibles. Don’t hesitate to ask which services are truly necessary and which aren’t.

Review your Medicare options.

Medicare coverage is offered in a variety of different programs known as “parts.” Part A is standard for every retiree and is free. It covers hospitalizations and inpatient services. Part B covers doctor visits and outpatient care. Part D covers prescription drugs.
 
Part C is an innovative program also known as Medicare Advantage. It allows private insurers to offer coverage that includes traditional Medicare protection but also enhanced coverage. These policies may offer flexibility with deductibles or premiums and often provide protection for services not traditionally covered by Medicare, such as dental visits or eye care.
 
Take time to choose the Medicare package that best fits your needs. While you can’t predict your future health, you can make an educated decision based on your medical history. If you have a chronic condition or need regular care, robust coverage may be best for you.

Use a health savings account (HSA) to fund your out-of-pocket costs.
 
You’ll likely have some level of out-of-pocket medical expenses that you’ll need to fund with your retirement savings. However, you can use a unique tool to save for those costs on a tax-advantaged basis.
 
An HSA allows you to make tax-deductible contributions and then increase your funds on a tax-deferred basis. If you use the money for qualified health care costs, you can take tax-free distributions. That means you can start saving today to pay for your medical expenses in the future, and you can do so in a tax-favored manner.
 
Ready to plan your health care strategy? Let’s talk about it. Contact us today at Safe Retirement Strategies. We can help you analyze your needs and implement a plan. Let’s connect soon and start the conversation.
 
1https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17845 - 2018/7/30

​Social Security is a valuable resource for retirees. According to the Social Security Administration, 90 percent of all Americans over age 65 rely on Social Security benefits for income. In fact, 50 percent of married retirees and 71 percent of singles say they count on Social Security for more than half of their retirement income.1
 
If you’re like most retirees, Social Security will play a significant role in your financial picture. As you approach retirement, you’ll likely have to make important decisions about when to file and how much income you will need beyond your Social Security benefit.
 
Without a solid strategy in place, you could face financial challenges. You may even be unable to fund the kind of retirement you’d like for yourself. Below are a few common Social Security mistakes. If you can avoid these, you’ll minimize your risk and save yourself some financial headaches.

Early benefits while working.
 
You can file for benefits as early as age 62. In fact, many retirees do file for benefits as soon as possible even though it usually means a reduction in benefits. If you file before your full retirement age (FRA), you could see your benefits reduced as much as 35 percent.2
 
However, that reduction could be far greater if you file for benefits while you’re still working. If you file before the year of your FRA, Social Security allows you to earn as much as $17,040 with no penalty. However, your benefit is reduced by $1 for every $2 you earn past that threshold.3 You can file at your FRA and continue working and see no reduction in benefits.

Expecting too much income.
 
Think Social Security will fund your retirement? Think again. While Social Security is a helpful resource, for most people it’s not enough to cover all expenses. The average monthly Social Security benefit is just over $1,300. In fact, Social Security benefits are capped at nearly $2,700.4
 
It’s likely that you’ll need some income above and beyond your Social Security benefit. This income could come from savings and investments, a pension or possibly even part-time work. If you don’t know where your additional income will come from, now may be the time to develop a strategy.

Forgetting about Medicare premiums.
 
Medicare is another valuable resource for retirees. The Medicare program offers several different types of coverage, known as “parts.” Part A, which is standard and free for all retirees, covers hospitalizations and emergency treatments. Part B covers doctor visits and outpatient services, while Part C offers supplemental coverage and Part D covers prescription drugs.
 
It’s important to remember that Part A is the only coverage that does not have a premium. All the other parts do have premiums, which are usually paid out of your Social Security benefit. Be sure to get an estimate of those premiums before you file so you can project your net Social Security benefit and budget accordingly.
 
Ready to plan your Social Security strategy? Let’s talk about it. Contact us today at Safe Retirement Strategies. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf
2https://www.ssa.gov/planners/retire/agereduction.html
3https://www.ssa.gov/planners/retire/whileworking.html
4https://www.fool.com/retirement/2016/12/04/25-social-security-facts-figures-you-need-to-see.aspx
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
The material is not intended to be legal or tax advice. The insurance agent can provide information, but not advice related to social security benefits. Clients should seek guidance from the Social Security Administration regarding their particular situation. The insurance agent may be able to identify potential retirement income gaps and may introduce insurance products, such as an annuity, as a potential solution. Social Security benefit payout rates can and will change at the sole discretion of the Social Security Administration. For more information, please consult a local Social Security Administration office, or visit www.ssa.gov
17846 - 2018/7/30
 

​The Roth IRA has become an increasingly popular retirement savings vehicle. From 2010 to 2013, Roth IRA balances grew more than 51 percent, while traditional IRA balances grew 28 percent over that same period. In 2013 more than $6 billion was contributed to Roth accounts, while only $4.61 billion was contributed to traditional IRAs.1
 
The Roth’s popularity stems from its unique tax treatment. You contribute after-tax dollars to your Roth, and the funds grow on a tax-deferred basis. As long as you wait until age 59½ and at least five years after the account was opened to take distributions, all withdrawals are tax-free. That means you can use a Roth to create a tax-free income stream in retirement.
 
Unfortunately, many people are unable to take advantage of the Roth’s tax benefits. Perhaps your income exceeds the Roth’s limitations and you’re unable to contribute. Or maybe you’ve primarily used a 401(k) or traditional IRA to accumulate retirement assets.

​There may be no resource more valuable in retirement than income that’s guaranteed for life. Guaranteed income provides you with a base level of certainty and predictability. It’s not impacted by market fluctuations, and there’s no risk that you’ll outlive your funds. When you have guaranteed income, you can make financial and spending decisions with confidence.
 
Unfortunately, guaranteed* income is becoming more and more rare for many retirees. There was a time when workers could expect to have their entire retirement funded by Social Security and employer pensions. Today’s Social Security benefits are unlikely to fund a full retirement, however, and few employers still offer a pension.