Using the Right Tools in Retirement with Paul Obendorf

Paul Obendorf a Partner of Retirement Risk Advisors joins Dave on this week’s podcast to discuss the tools needed for retirement. 

They break down retirement planning and the difference between your traditional accumulation planning, 3 things to look out for in retirement and all about Annuities and if they are good to have in your portfolio.

There’s many things that can impact your retirement. But probably the three biggest are..
#1 – Sequence of return risk –  that’s a special type of market risk that really only affects you in retirement, it doesn’t affect you and your accumulation years, because you’re not taking money out. And your retirement years is a very important thing to address. 
#2 – Taxes – In 2018, when the tax cuts went into effect, that began an eight year period where taxes are at historically low levels. So because those taxes are at historically low levels, that gave us an eight year window, to begin to strategically shift money from taxable and tax deferred buckets to tax free buckets, in an effort to hopefully get ourselves to the 0% tax bracket in retirement.
#3 Long-term care – 70% of people over 70, at some point in their life may have some need for long term care if you made it all the way through to your mid to late 80s. 

Traditional planning was focused on the fact that when you would retire, you would get a pension. And so that pension was there to take care of you. And as pensions started to die off, Americans began to realize that more and more, they’re in a self funded retirement. Now, instead of a pension, taking care of your carrying you through retirement, you’ve got to save up your own nest egg, and rely on nest egg to carry you through for an extended period of time. So there’s a lot of advisors unfortunately, out there that are still clinging to the old way of planning for retirement where you would just leave everything in the market and then just kind of pull from the market as needed. 

 So really, in retirement, it all starts with income. And so what you’ve got to do is create an income bucket. And that income bucket, you’re better served by utilizing something like a fixed index annuity, versus relying on a bond portfolio to do that. 

There’s a lot of guarantees that come with a fixed index annuity, to not only keep your money safe, but provide lifetime income streams…

Find out all the details and the tools you need on this week’s episode. 

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