Have you saved enough for retirement?

The #1 fear is running out of money and #1 question is "have I saved enough?" What if we told you John has tools in his tool box to give you guaranteed income for life? 

John explains how he walks his clients through the planning process and more!   

Transcript

Jessica: 0:05

Welcome to your family your finances the podcast with John Markel of Rose. Retirement get more details on the website at Rose retirement.com Welcome back to the show y'all we appreciate you joining us. Hey by the way if you're out of out and around town and you hit up Papa sceetos like everybody does here you'll see rose retirement right behind it a huge red letters can't miss it. Rose retirement poppin say hey to John and the crew usually Lindy Rose is kind of bouncing around here a little bit as well. Your wife Laurie is there I mean, it's it's kind of it's a family affair.

John Merkel - Senior Financial Advisor/Founder CEO of: 0:35

Oh, yeah. And, you know, if you come in, you may see Lindy may see my wife, of course, Lindy is at school most of the time during the day. But if you come after our she's here, or at any of our events, and we actually have several gift cards. So when clients come, or people come that just popped their head in, we may give you a gift card, just go eat some lunch or dinner on us. So we like to say we'd love to have people come in and just say hi, so you never know what you're gonna get.

Jessica: 0:59

You never know. It's all surprise. Now, we talked plenty of times here on the show John about the benefits of annuities. They are of course, financial instruments that provide a guaranteed stream of income payments over a period of time. But there are so many different types, I want you to walk us through the couple of different options. And of course, how do you help your clients make this final decision?

John Merkel - Senior Financial Advisor/Founder CEO of: 1:19

Well, like you said, when it comes to word annuity, I think it's been, you know, mainly just Wall Street, it's kind of given them a bad rap. But when people say, you know, like we talked about early, you know, what's behind door number one, and what's behind door number two in didn't let the person blindly pick, they're probably going to pick an annuity. And let me give an example. Let's say if a client comes in the office and they come in, they say, Hey, you know, we've got a 401 K. And I said, What's your main concern about your 401 K right now? I said, I'll market volatility. Okay, so that's the main thing is, well, how do you eliminate market volatility? Well, the answer is an annuity. And the reason that that's behind door number one, door number two is stay in the stock market. And we talked about earlier about recession. If you're anticipating a market correction or recession, one of the only ways to offset to I guess you'd say, offset market volatility is not RAs, not 401k is not Sep accounts, not you know, real estate, all those things sound good, you know, but those can lose value real quick, you know, due to market volatility. What people do when they put their money to to a certain type of annuity, is it protects it from market volatility. So if the market has a correction of 1020 30%, they still have their original investment in that account plus their gains. So it's pretty simple. The thing is, people have convoluted those words, to their benefit. And the reason that is is they want to keep your money, not maybe the best option for you. Another one that would be is called a variable annuity. Now, our variable annuity just has a word in it variable, it goes up and down on the stock market. So if a client's trying to alleviate stock market volatility, that's probably not a good annuity to put your money into. So here's where we get into trouble sometimes, let's say a client comes into an office or financial advisor, and they say, Hey, we don't want stock market risk. We have a 401 K. Mr. Advisor, where do you want to put our money in? When they recommend a variable annuity? It has the word annuity in it. But what's it doing? It's still just as risky as right. It's just as risky is where they have the money. And I've seen this happen, had a person from a local that went to their fiduciary advisor. And that's exactly what he said, Hey, I've got a heart large sum of money. I don't want to be in the market no more. I don't want high fees, and I don't want market volatility. Guess what the visor recommended put his money into a variable annuity. Oh, man. Yes. So not only did so what I did is I Googled a prospectus for that variable annuity. It was 1200 pages long. Oh, my God. I mean, come on. Right. So the mark. So number one, the client suggestion wouldn't have been to eliminate market risk because variable annuities still have market risk, right? Yes. Number two, his other suggestions, I don't want high fees. Well, guess what, you know, many times, you can click in the upper right corner of that prospectus and type in the word fees, it came up 1100 times. Wow. So that's what I'm saying. Annuities get a bad rap, because of the person that's offering them may not put that person in the right vehicle type of annuity that they need to be in. So you got to be very careful, you got to be educated. And what I tell people to do is ask a lot of questions to the advisor they're talking to, and get as much information you can down and write it down, you know, basically record what you're talking about. So now you're holding that person's feet to the fire and encourage people when they come in our office, I'll give you a lot of information, write it down, hold my feet to the fire and encourage that. So just kind of be very vigilant and what you're putting your money into when it comes to Lexa door number one, door number two, this time in our history right now, especially if we think that there's gonna be a big market upheaval recently, you know, coming down the road, or the trains coming down the track. You might want to start looking at some of these vehicles because when it comes down to it, they're the only ones that can eliminate market by utility

Jessica: 5:00

John, I know you're busy in the office curious to know, especially right now again, we know inflation is on the rise, we know it's tax time taxes will be on the rise. What are people calling about? What are they most concerned about?

John Merkel - Senior Financial Advisor/Founder CEO of: 5:12

Kind of like what we talked about earlier is fear of the market volatility. And like you said, the other one was running out of money, especially in your if you're starting to retire and you're looking at well, hey, I've got X amount of dollars now I gotta live off that for the next 3040 years. That's a big deal. So we're gonna have a what we call come to Jesus talk and we're gonna have ways that we can help you but there may be some ways of thinking that you may have to correct or look at those some different because the way that we do in our work in yours is different than the way we have to do things in retirement. Because you don't want to run out of money you don't want to have market volatility so there's some things that you have to have a you know, kind of an honest discussion about and kind of clear the smoke in the room because there is a lot of smoke in retirement just like a lot of smoke in taxes there's you got to be I guess almost a professional at everything nowadays because there's so much laws and regulations and stuff like that, that are associated with retirement so you know, come to Rose retirement will kind of clear the fog for you show you the good, bad and ugly about everything, whether it's your current retirement, whether it's what we do, but just come in and like you said, have a stress test if you do have an annuity, or if you don't, let's look at what you currently have and go over some maybe some suggestions for

Jessica: 6:24

you. You've been listening to the podcast for your family your finances with John Merkle of Rose retirement, get more details at Rose retirement.com financial professionals not licensed in all 50 states to find out if Johnny Lee Merkel's licensed in your state, please contact our office. Johnny Lee Merkel is not affiliated with nor endorsed by the Social Security Administration or any other government agency and does not provide legal or tax advice. annuity guarantees rely solely on the financial strength and claims paying ability of the issuing insurance company. By contacting us you may be provided with information about insurance and annuity products offered through Johnny Lee mortgage Jr. NPN number 1584707.