Twenty years ago, investors found themselves in the middle of the biggest and longest sustained bull market of all time which began in 1983 and came to a halt in the spring of 2000. Those who retired in 1999 received a shock over the next 10 years. A bad sequence of returns followed and the S & P ran negative for a decade. Those who started withdrawing 5% or 6% from their investment portfolios could have been down by 70% by 2009. Those with pensions and annuities were unaffected. Their income continued without a hitch. To add to the problem, interest rates on safe bonds fell from their long term "normal" in the 5% to 9% range, down to 2%. In segment 2, we talk about viewpoints from one of the foremost authors on retirement planning, Dr. Moshe Milevsky with York University in Canada, best selling author of "Pensionize Your Nest Egg." Dr. Milevsky joins the A-Team in segment 3 for the Q & A for a lively discussion of pressing topics for retirees.
Nationally renowned Social Security expert Dr Laurence Kotlikoff joins the A-team to provide current answers on social security claiming strategies. With over 2,786 rules in the Social Security Rule Book, Dr. Kotlikoff's software system has simplified the claiming process. IQ Wealth is a licensee of the Kotlikoff system, and CFP® Murray Titterington with IQ Wealth uses the system on a regular basis on the IQ Wealth income platform. In the Q & A segment, Sinclair, Steve, and Murray provide the Q's, and Dr. Kotlikoff provides the "A's".
How do fixed index annuities really work? Is your money at risk, or is your principal safe and protected at all times? Most people are not aware that Fixed Index Annuities are more like fixed annuities than variable annuities. In fact, no no one has ever lost a penny to the market in any fixed index annuity from any company since their inception in 1995. That means they survived and thrived through two of the biggest stock market crashes of all time: 2000-2002, and of course 2008. Now, with advanced income riders, FIAs--whether you call them "new generation" or "hybrid" (marketing nicknames for the identical annuities) have arrived as effective 401k/430b and IRA rollovers. In the Q & A, Steve answers the most pressing and common questions about annuities.
The rising cost of long term care policies is becoming a growing problem. Premiums are rising, benefits shrinking. Steve and Sinclair review a recent Wall Street Journal article pointing out that over 7,000 policies were bought in 2000, but last year demand had fallen to 131,000 policies. We examine and provide solutions. Hedge fund manager Jim Gentrup, CFA joins the A-Team for the Q & A in segment 3. Steve wraps up with an overview in segment 4 with a tribute to his mom.
Famous CPA and retirement strategist Ed Slott says that Stretch IRAs will be going the way of the doh-doh bird. Slott says the Stretch is not necessarily the best way to pass an inheritance anyway. Steve and Sinclair examine Slott's recommendations for IRA beneficiaries and alternatives that are superior to the stretch. Certified Financial Planner Murray Titterington joins the A-Team in segment 3 for the Q & A to review social security strategies and an interersting case study where the file-and-suspend strategy could not be used, which surprised several clients. Murray has recently achieved the FINRA recognized designation of National Social Security Advisor. Murray is one of only 7 NSSA designees in the state of Arizona and the only one in the Phoenix/Scottsdale metro area.
Should you use your trust as the beneficiary of your IRA? Attorneys say it is not advised unless you have very important wording in your trust, and certain stipulations are met. Steve and Sinclair review in segment 2. Experienced real estate attorney Chris McNichol with Gust Rosenfeld joins the A-Team for the Q & A with the inside story on a high profile property at the 101 and 201 that has been mired in controversy, foreclosures, and bankruptcy with a REIT involved. Very intriguing case and very instructive.
Barrons points out the many risk in the latest bond "fad"--unconstrained bond funds. These are bond funds that many people may own in their portfolios and not even know it. Money has suddenly been pouring into these safe sounding funds that are leveraged 6 to 1 or worse with futures derivatives and contain in the range of 40 percent junk bonds. Most are betting on a huge spike in interest rates. If the the huge spike doesn't arrive on time the bond fund owner loses in several ways: the low yields, the junk bond potential default, and the expense of hedging against an event that doesn't occur. Steve and Sinclair review them in segment 2 while Dan Shaffer of Shaffer Asset Management, a frequent contributor on Fox Business, joins the A Team for the Q & A.
Has Biogen found a breakthrough in the battle against Alzheimers? Steve and Sinclair review the recent discovery of anti-bodies that are actually attacking the disease at its source. Caution is still in the air, but it is the most encouraging drug yet say medical experts. In the Q & A, stock split expert Neil MacNeale joins the A-Team, discusses his unique formula for outperforming the S & P with shares of companies whose stock has recently split.
According to a Barron's report, Social Security has drifted into being even further underfunded than expected. The numbers are off by just a "touch": one trillion dollars off by 2030 just . The result is that the system could hit an iceberg sooner. Find out some facts about who's minding the store and how they're minding it. In the Q & A, CFP® Murray Titterington with IQ Wealth. joins the A Team to discuss the Earnings Test for income earned while taking social security, and the trap to avoid.
Southwest Airlines has always been profitable by buying jet fuel and locking in prices. It worked well during periods of spiking oil prices. Last year, they lost money by using the same hedging process. American, the worlds largest airline, had a record year by simply buying it at 50% off, netting a $600 million profit. Steve and Sinclair review. In the Q & A, Matt Griffin, CEO of Payson Petroleum, answers questions on how they are managing the oil in the ground in today's price environment.