401k & IRA Rollover
More Than Enough Income
Making Your 401k a True “Retirement Plan”
They say your 401k is your “Retirement Plan”, but in actuality, it’s simply a tax deferred holding of assets. It’s how you USE those assets that allows your 401k to become the bedrock for a rock solid retirement plan. Gathering the resources for a comfortable retirement is to be commended. You’ve accumulated your wealth over many years—you’ve planted the seeds, you stuck with it and paid your dues. Now it’s time for your 401(k) to replace your income from work and start paying YOU.
Don’t Forget
It’s important to remember that Retirement isn’t just an achievement, it’s also a TRANSITION—a transition from the contribution and accumulation phase of your life to the income distribution phase of your life.
The Retirement Transition
When you retire you say goodbye to your salary, which has provided for you and your family for many years. Every two weeks, you’ve been paying IN. Now it’s time to start taking money OUT. Your investment strategy must change and likely you’ll need to shift from all growth assets to a portion dedicated to fixed income. Think about the next ten years. Do you have any idea what the world will look like as you age? Of course not, no one does. That’s why a retirement focused purely on growth assets is extremely risky.
Important
Shifting part of your investment focus to fixed income will protect you against sudden market shocks.
Reasonable Risk in Retirement
A general rule of thumb for allocating your money is to take the number 100 and subtract your age from it. The number left over is the highest percentage of your portfolio that you want at risk. So if you’re 55, only 45% of your portfolio should be at risk. In 10 years you’d be 65, and at that time only 35% of your portfolio should be at risk—and so on.
Remember
You’re not 35 anymore. It’s time to dial down the risk. The problem comes in retirement when you start relying on your unreliable mutual funds to replace your income from work.
Start Planning for Income
Consider the likelihood that you and your spouse’s retirement could easily last 30 years or more. If you currently spend $80,000 per year for your living expenses—over 30 years that’s $2.4 million. This means that you’ll need at least that much income delivered to your door in cash every month throughout your retirement. And that’s without factoring in inflation. Considering inflation, someone spending $120,000 per year could easily need at least $4.8 million throughout retirement. Sure social security covers part of that, but where will you get the rest?
Key Point
You dedicate the right amount of assets to fixed income to deliver the income you’ll need from now on, no matter what. Then, you dedicate the rest to continue growing your money, while keeping an ample portion in liquid assets.
Building Your Financial Blueprint
Financial Bucketing takes the guesswork out of building a financial plan built to protect you and yours in the bad times—while taking advantage of opportunity in good times. It’s your financial blueprint—and it is exactly where you want to go with your 401(k).
The Facts
In the accumulation phase of your life, your salary protected you from market fluctuation and loss. Removing your salary, what will protect you from market fluctuation and loss now?
You “Bucket” Believe It
Okay, we admit it, bad pun. But it’s important to remember that, while you need fixed income, you don’t want to go all the way to the income-only extreme because a retirement focused purely on fixed income is extremely conservative. This is why so many retiring professionals are waking up to the proven concept of Financial Bucketing.
Allocate to Win
You dedicate the right amount of assets to fixed income to deliver the income you’ll need from now on, no matter what. Then, you dedicate the rest to continue growing your money, while keeping an ample portion in liquid assets.
The First Steps
Request a call or meeting using the form on this page.
Retirement Review
Accredited Investment Fiduciary (AIF®), Steve Jurich with IQ Wealth® Management in Scottsdale helps his clients review their retirement plan and 401k options with no sales pressure.
Free Retirement Review
Future Proof Your 401k, 403b, or Rollover IRA
IQ Wealth® Smarter Bucketing System™
Bucket planning is a common-sense system of allocating money according to its purpose. When each dollar in your portfolio has a job to do—and a timeline for getting it done—your financial plan is more clear and realistic. You stop speculating with emotion and start investing with a plan. Don’t let your 401k rollover… and play dead. Let’s look the future in the eye with the right financial plan: Smarter Bucketing™.
Cash
Pay Ongoing Living Expenses for Both Spouses For Life. Very Low Risk & 100% Liquidity. Maintain 3 to 6 months living surplus.Income
Continuously Fill the Cash Bucket for Life. Insured, Reliable, and Secure. Lifetime Income for both Spouses.Growth
Grow Capital Over Time & Avoid Tapping For Income at Inopportune Times. High grade Dividend Growth and Technology Portfolios.Tax Planning
Insure Your Estate and Guard Against Inflation. Protect your Heirs & Estate. Cut Costs and Minimize Taxes.
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Future Proof Your 401k, 403b, or Rollover IRA
Fixed Income
Dips in the market can have drastic effects on capital, income, and lifestyle which no one can afford to ignore when planning a retirement. Your fixed income must be protected in a its own bucket, separate from growth—and doesn’t dip when the market does. In fact, the ideal fixed income asset is completely unaffected by market declines.
Income First
In the accumulation phase of your life, your salary protected you from market fluctuation and loss. However, in retirement, your salary no longer exists to create income and defend your lifestyle. This is why reliable fixed income assets become a vital part of any healthy retirement plan.
Bonds
Taking care of your fixed income comes first and many people look at bonds hoping that it will be enough—it’s not. The problem comes in retirement when you’re relying on your stocks and bonds to replace your salary’s income. In your working years, you are BUYING on the dips. But in retirement, you are SELLING on the dips. Not good.
Important
You don’t want a bond fund paying three or four percent, when you can have something that can pay much more income than that—with the same or better security.
Real Estate
Real Estate can result in strong income, but it does come with having to maintain and manage the properties. Every property will require some amount of dealing with tenants, toilets, air conditioners, and trash. Typically, we’ve found that the older a person gets the less they want to deal with the stress and the work.Important
Real Estate income is NOT guaranteed and it is NOT recession proof. Remember, your tenants are affected by the markets and economy too.
Annuities
When real estate seems too risky or too work intensive, it leads many people to the other source of higher paying fixed income, retirement annuities. The advantage to annuities includes no hassle, plus rock solid asset backed guarantees. Annuities can be a smart choice, but it’s important to remember that not all annuities are created equal. There are actually four different types of annuities: Immediate, Variable, Fixed, and Fixed Index.Important
Annuities from legal reserve life insurance companies are licensed and audited by all 50 states. By comparing, you can find the right annuity that will provide you with more than enough income for life, protect your from market loss, and protect your heirs.
Types of Annuities
The Annuities of Old are a Thing of the PastImmediate
If you’ve ever heard a cautionary tale about annuities taking your money when you die, they are likely talking about Immediate Annuities. Immediate annuities are the least popular form of annuity and are rarely (if ever) recommended by experts.Variable
Variable annuities can produce lifetime income, but they usually don’t have the level of income security that your annuity is supposed to provide. And if you’ve ever been warned about “High Annuity Fees”, they’re talking about variable annuities.Fixed
Fixed annuities are quite secure, but they don’t pay much more than CDs, and are like buying bonds. After the five year period, you have to start all over again with your planning efforts. Most people want a retirement plan that lasts, not one they have to redo every few years.Fixed Index
You conservatively grow money without losses over time. When your market index goes up, your principal can gain, but when the index falls, you are protected and can’t lose. You don’t get all of the gains, but you get none of the losses. There is no annual management or advisor fee.
Past performance of any asset or index should never be relied upon to predict future results. No specific product or company being promoted. Guarantees rely on the financial strength of the issuing insurer. Not FDIC insured, not a bank deposit.
Next Generation Annuities
Receive fixed income for life, like a pension, and the insurance company won’t keep your money when you die. In the past, the only way you could get a lifetime income from an annuity was to “annuitize”, which means turning over your principal in exchange for income for life. That idea is dead and gone. For a smart person looking to retire and STAY retired with lasting high income—Next Generation Retirement Annuities can be the answer. There is no need to annuitize anymore because of the advent of the Guaranteed Lifetime Withdrawal Benefit— “GLWB” for short. These Next Generation Retirement annuities are nothing like old style annuities. Depending on age and deferral period, Next Generation annuities can pay a permanent income rate anywhere from 5% to 18% income guaranteed for life. But here’s the thing, it’s all about finding the right Next Generation annuity because some of them pay up to 40% more than others, which is why it’s important to compare with an experienced Fiduciary, preferably an Accredited Investment Fiduciary® and a Certified Annuity Specialist.®Lifetime Annual Income Estimates
*TIME SENSITIVE. Interest rates on annuities can be fluid, especially when bond rates are moving. These rates reflect the highest incomes available as of May of 2024. These rates are single income for life. Joint income rates are somewhat lower. All rates of annuity income rely upon the age of the annuitant and the length of time income is deferred. Deferring = delaying the start of your lifetime income. We compare 1200+ annuities. Rates locked in at time of application. These rates reflect the highest paying annuity rates available. Annuity buyers are encouraged to compare on the basis not only of income, but also accumulation potential, liquidity options, and company ratings.
Amount
See the color coding in the above chart.
Age
Above example is age 64. The older you are, the higher the income.
Deferral
The longer you defer, the higher the income.
Paid Monthly
Above figures are annual, income is paid monthly.
Licensed With All Carriers
We Independently Review 1200+ Annuities For You
The First Steps
Request a call or meeting using the form on this page.Compare Annuities
Accredited Investment Fiduciary (AIF®), Steve Jurich with IQ Wealth® Management in Scottsdale helps his clients compare up to 1,200 annuities with no sales pressure.
Free Retirement Review
Future Proof Your 401k, 403b, or Rollover IRABlack Diamond Dividend Growth™ Portfolio
Blue Diamond Technology Leaders™ Portfolio
Black Diamond “MAG 7” Dividend™ Portfolio
Buffered Index Investments
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Future Proof Your 401k, 403b, or Rollover IRAFAQ
What happens when I become a client?
- Discovery
- Plan creation
- implementation.
Are there any advisor fees for annuities?
What are your management fees for your investment portfolios?
What are your qualifications?
How much do you charge for a retirement plan?
Where are you located?
Our office is conveniently located in Scottsdale, AZ:
(Please Note: We work by appointment only)
8777 N Gainey Center Drive
Suite 200
Scottsdale, AZ 85258
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Future Proof Your 401k, 403b, or Rollover IRASchedule a Meeting
Use this form to begin scheduling a meeting to discuss your 401k, 403b, or IRA options.
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