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.
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.
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.