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In this week’s episode:

Market Outlook:

Stocks are slipping lower; the excitement of the Trump bump has worn off and we’re back to the fundamentals. People are confident the new President will revive the economy, but that’s still a ways off and meanwhile the risks are growing by the minute. Problems with Syria, Russia, Iran or North Korea could send stocks spiraling down. Bottom line: if you don’t think the market will rise another 10% this year, you’re probably better off getting out altogether. The old market saying, “sell in May and go away” is looking like good advice.

One for the Ladies:

I just finished working on a case for a woman who came to see us: her husband had passed, his Social Security stopped, and she was worried about making ends meet. She said with interest rates and dividends so low she would have to sell stocks every year to top up social security. She was afraid she’d run down the portfolio and then run out of money. A lot of women feel the same way. Living off income from your stock portfolio is a strategy that only works when the market’s rising. Another 2008 can wipe you out. We were able to give our widowed client a guaranteed income for life and peace of mind — can we help you do the same?

Our New Product Line – Medicare

Dalton Whalley is working with Safe Harbor to advise clients on Medicare.  He will demystify this complex subject and advise you on how best to use Medicare in your retirement.

Investing Costs

If you are not careful, securities costs will take a large chunk of your funds, even if in down markets. This isn’t always clear; if it were, perhaps fewer people would invest in securities! Here’s what we mean: big name brokerages may charge up to 3% to advise you on mutual funds, and another 5.75% to buy the funds. Then the mutual fund manager adds another 1% or more.  That’s a first year cost of 9–10% and up to 4% a year ever after.

With hybrid annuities the costs are easy to see.   If you want to build capital there is no cost.  If your aim is to build guaranteed lifetime income, cost is around 1% a year – that’s it.

Retirement Income

The primary objective in retirement is a to have a predictable income. Annuities are the only way to get it.  With interest rates and dividends so low, securities can’t generate income.  Instead, every year you have to sell some investments.  If you’re selling into a down market then you’ll run down your portfolio too fast.  That’s called market risk.

High Returns from Hybrid Annuities

People often ask how insurance companies can pay high returns when interest rates are so low.  One way is by making investments that tie up their funds for 5 years, 10 years or longer.  Corporations like long term funds and pay more to get them.  The insurance companies take their cut and pass the rest on to you.

 

On this week’s broadcast:

Learn More About Your Medicare Options

We’re working closely with Dalton Whalley, a Medicare Options Specialist with over 10 years of experience with Medicare.  In his own words, Dalton makes Medicare “clear to you.”

Interesting Tidbit: MetLife to Begin Selling Hybrid Annuities

MetLife just announced it’s going to begin selling hybrid annuities. What a coincidence! That’s what we focus on here are Safe Harbor. We’ll take that as a compliment.  In other news, we hear that investors are now switching their mutual funds into hybrid annuities.

The Cost of Securities

We can never say too much about costs. Over your working career, securities costs can take a large chunk out of your earnings even if you’re not making money.  You pay up to 5.75% for your mutual funds and another 2–3% per annum in various fees.  On top of that, every year you have to sell your stocks to get an income.  All the while you have market risk, and if you have to selling in a down market will deplete your portfolio too quickly. Now look at hybrid annuities. You pay just 0.95% for guaranteed lifetime income — plus health care doubler and no market risk.  What do you think is the better deal?