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One Of The Coolest Retirement Strategies You've Never Heard Of - YouTube
Channel: Oak Harvest Financial Group
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the holy grail in retirement is to find
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something that's a 100
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safe has access in his liquid in case
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you need your money
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but also has the potential to grow i'm
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going to show you one of the coolest
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strategies you've probably never heard
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of
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that has all of those features plus more
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[Music]
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hi i'm troy sharp ceo of oak harvest
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financial group certified financial
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planner professional
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and host to the retirement income show
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when you think of the common
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financial tools that you invested in
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retirement you think of stocks
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bonds cds maybe annuities real estate
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those are pretty much
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the big ones none of them are 100 safe
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100
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liquid and also give you the potential
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for excellent growth
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bonds pay very very little interest
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rates they can also go down in value
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stocks have tremendous potential to grow
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but they're not safe whatsoever
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fixed annuities can give you safe growth
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opportunity
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but typically you're limited to 10 of
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your
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access per year real estate as we know
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real estate is not very liquid so
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all of these tools in retirement they
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all have their specific purpose
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but none of them typically hit those
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three features
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100 safe excellent potential to grow and
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also liquid
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in case you need to access your money so
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i'm going to show you a really cool
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strategy that has those features plus
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more before i get into that though we
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want to cover a couple basics
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so as i said what i'm going to show you
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today is safe
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it's liquid has the potential to grow
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also provides family protection in case
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you die or need long-term care the
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long-term care component here is a big
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one
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according to a recent study from
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fidelity the average 65 year old couple
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in their lifetime will expect to spend
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somewhere between 250 000
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to four hundred thousand dollars in
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out-of-pocket medical costs but guess
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what
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that's just your medicare premiums your
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co-pays prescriptions deductibles
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that's your out-of-pocket health care
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that doesn't include long-term care
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long-term is long-term care is a
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completely separate cost in retirement
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right here in houston you can have a
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long-term care facility for five
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thousand a month today
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or twenty five thousand a month my
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personal story with my grandparents
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they went into a situation where they
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were spending ten thousand dollars a
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month for a couple of years
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on a nursing home so i understand the
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impact that this can have on your
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retirement
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so this feature in this particular
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strategy is a pretty cool feature to
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have
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okay so the returns are pretty simple
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here with this strategy
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it's an index strategy so this means
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that your principal is 100
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safe but you're going to make between
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zero and eight percent
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based on the s p 500 so just bear with
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me on this this is not an annuity
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so how does indexing work so if this is
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the stock market here
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and these lines here are 12 month
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increments
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if the market goes up this first year
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you get a hundred percent of the gain
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up to 12 or excuse me up to eight
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percent
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those gains are locked in you can never
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lose your interest you can never lose
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your principle
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the next 12 months the market goes up
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you get a hundred percent of the gain
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up to eight percent this is called a cap
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the next year the market goes down
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well your money simply goes sideways
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you don't earn anything you don't lose
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anything the following year when the
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market starts to rebound
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you don't have to wait for it to get
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back up to where you left off
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you start earning interest from right
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here where you left off
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so when the market goes from here to
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here you go from here to here
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subject again to this eight percent cap
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market goes up again
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you make some interest market comes down
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you go
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sideways so this is indexing very simple
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concept you make between zero to eight
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percent this is how the money that you
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deposit this is how it grows over time
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now let's say the market is down every
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single year forever
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which is really unlikely and if that
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happens we have much bigger problems
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but worst case scenario this strategy
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comes with the minimum
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two and a half percent guaranteed
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interest rate there are some expenses
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included in this
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strategy okay what i'm going to do is
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pull up the actual company illustration
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and we're going to look at the current
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assumption first this is what's most
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likely to happen
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now it's not fully guaranteed at least
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the performance because the stock market
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could go down
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but if the stock market goes down
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remember worst case scenario
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your principal is a hundred percent safe
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you'll make zero
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we're going to look at two other
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scenarios as well what happens if the
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stock market is always down and then
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what happens in the maximum
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expense situation
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so here we go this is a 64 year old male
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depositing 250 000
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historically between zero and eight
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percent
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tracking the s p 500 with no risk of
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loss
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you're looking at about five percent
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average growth
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so we see the count value here 259 269
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278 288 etc etc
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now here is the death benefit this is a
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tax-free death benefit so we make that
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deposit
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if we get hit by one of those
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self-driving cars or the bus comes
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around the corner
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immediately day one your family gets
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534.
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let's say 10 years goes by and you need
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long-term care coverage
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coming down here you have about 562 000
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of potential long-term care coverage
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that is limited to about 24
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of the death benefit per year so let's
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call it about a hundred
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and 120 000 per year 10 000 a month
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roughly of long-term care protection but
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this is just a safe growth tool
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yes this is a life insurance chassis and
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some of you when you hear the word life
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insurance
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your brain immediately goes to i just
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need term insurance or i don't need life
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insurance and that may be true
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but don't think of this as life
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insurance this is a financial tool that
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will protect your money 100 percent from
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losses
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will give you the opportunity to grow it
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at a reasonable rate
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and if you see here the surrender value
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there are very very small surrender
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charges
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but if we have one year of growth we're
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going to be able to walk away
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with more than what we deposited not to
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mention the family protection
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additionally there's one more benefit
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here in texas
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you'd have to check with your state any
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money is deposited into retirement
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accounts
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life insurance cash value life insurance
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annuities or your homestead
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is 100 protected from lawsuits and
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creditors
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so it's an asset protection strategy as
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well so again this isn't
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something that you should put all of
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your money into that's not the point
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here
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we there are a couple of downsides and
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i'm going to look at those in just a
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second
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but i want to make you aware of some of
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these really really cool strategies that
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are out there
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that if you're working with someone
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who's not aware of these you're never
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going to be introduced to this concept
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it may be right for you it may not be
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right for you but the point of the
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matter is there is
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something out there that's safe gives
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you great potential to grow
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and is liquid while also providing
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family and long-term care protection
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along with asset protection if you like
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what you see today and i'm pretty sure
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you will because this is a very very
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cool strategy i want you to hit that
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thumbs up button
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but also there's going to be a link in
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the description
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where you can schedule a time to talk
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with one of our advisors here at ocarvis
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financial group
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okay so pretty straightforward here
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if we go down this is over roughly about
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a 40-year period
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okay so for here's 40 years going out to
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about 100 years old
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well let's just look over here let's
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look okay
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84 to 94.
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we're about seven hundred thousand the
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death benefit tax free death benefit
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about eight hundred thousand here at
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ninety four
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five hundred thousand six hundred and
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fifty four at about eighty four
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so again we deposited two hundred and
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fifty thousand one hundred percent safe
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if the market crashes asset protection
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long-term care protection
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a reasonable opportunity to grow
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now this is what would be the most
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likely outcome based on historical
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performance and
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current charges now what are the charges
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again for the long-term care
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and the death benefit whatever you
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deposit versus whatever the death
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benefit is
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the difference between those two numbers
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is what we call the corridor
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there is a per unit charge for that
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death benefit
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this company in the history of 120 years
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has never charged the maximum allowed by
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law
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but we're going to look to see if day
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one they start to what that means for
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for you
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but the cost of life insurance because
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our life expectancies are increasing the
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cost of life insurance has been coming
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down for years
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so assuming the current cost of
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insurance stays in place
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that's a reasonable expectation over
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here what we're going to look at
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is current charges but forever the stock
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market goes down and you only make the
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minimum guaranteed interest of two and a
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half percent
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so coming back up
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we make the deposit of 253 the stock
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market is down every single year
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here you go we see at the end of 10
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years we can walk away with 267 000
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worst case scenario
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and we have 431 thousand dollars of
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death benefit now is the stock market
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going to be down every single year
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that's highly unlikely but if it is you
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have this guaranteed minimum two per
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two and a half percent interest plus
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100 principal protection
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now what is your worst case scenario the
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stock market is down
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every single year and day one you get
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into this strategy
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and the life insurance company says
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we're going to raise the rates do
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something we haven't done in 120 years
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but raise them to the maximum allowable
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by law
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if they did this this would mean
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millions and millions of people out
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there are dying essentially
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life insurance would be getting more
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expensive it's unlikely
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but if it happens we make our deposit
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the end of 10 years we're still walking
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away with 257 thousand
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this is the fully guaranteed maximum
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charges allowed by law
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with the minimum guaranteed interest
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rate of two and a half percent
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now as you see here what the the life
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insurance company does
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is they simply reduce the death benefit
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that corridor
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if the death benefit is coming down even
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if we're being charged the maximum
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we're being charged less units of life
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insurance
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okay again i want to be careful with the
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life insurance
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word because the purpose of this is not
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life insurance if you want life
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insurance with a much bigger death
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benefit there are much better strategies
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out there the purpose of this is to have
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your money safe
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liquid the potential to grow asset
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protection
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family protection and long-term care
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protection it has all of those features
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into one tool
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this is a very unique design
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with a specific product that's on the
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marketplace from
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a specific company so not all companies
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can do this
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this is something that is very unique as
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far as the design
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the way the life insurance policy is
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structured but i wanted to introduce you
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to this concept because again
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there are some pretty cool things out in
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the marketplace so takeaways here don't
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be afraid because it's on a life
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insurance
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chassis that is just the structure of
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how this retirement product is designed
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this is for non-ira money you cannot use
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your ira money or your 401k money for
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something like this
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the purpose again is you want something
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that's safe gives you the potential to
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grow
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is liquid and accessible if you need to
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get all of your money out
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gives you asset protection gives you
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family protection and also
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long-term care protection that is the
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purpose of this
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financial tool all right guys that's a
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wrap for today's video
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you know what to do hit that subscribe
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button hit that thumbs up button
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and we're always here to keep you more
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connected to your money in retirement
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you
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