The Retirement Architect – Inflation Protected Income

 

 

Click the Video to watch The Retirement Architect, David Reyes discuss the important topic of creating an inflation protected source of income

Take a moment to read below to follow along with the show!

Imagine you can have a pension. Let’s say you don’t have a pension. Most of you don’t have a pension. Imagine I could create a pension for you that would give you income for the rest of your life. And, oh, by the way, income for your spouses life. If you have a traditional pension, it does not work that way. You know, 100% of the same income for the rest of your life and the rest of your spouses life, should you predecease her. Usually it’s the man that dies first, so the woman gets the money forever. And so you can never run out of income. You would each have a nest egg.

 

So what I call the “Perfect Annuity” is what if we had all those benefits but on top of that, we got income inflation protection inside of it. And I’m going to share with you – now, this is just for hypothetical, it’s an actual annuity, but this is, I’m doing this full disclosure because this is not guaranteed but I’m giving you an example, if I can find it here. I know I have it here somewhere. It’s right here.

 

Of one of the types of annuities that I use, one of the types of income annuities I use – there’s really three types. The first one is they’ll start giving you income immediately, increase income immediately. The second {1.12 – cuts out} income for a while and get increasing income in the future. In fact, there is one contract that I love the best. If you have time, we wait 10 years. You buy it early, but it gives you the most amount of income forever, plus it’s increasing income. But the one I use the most for clients – it’s more appropriate – is where our increase in income is tied to a market indices, like the S&P 500.

 

So I’m going to give you an example right here. So I have this actual client. So they put a million dollars into an annuity, into this increasing income – “Perfect Annuity” – and they deferred for five years. They were 60, they’re going to retire at 65. So at 65, they’re going to be able to withdraw 5.75% of the annuity value. At 5 years, it’s worth about 1.2 million. So they’re going to be able to take out $69,000 a year. Well, that’s a lot of money. That’s 6.9% of the original value. Think about that. Where else can you get 6.9% income guaranteed the rest of your life. And, oh, by the way, this income is going to go up over time.

2019-01-31T21:00:50+00:00
Julie Reyes

Chief Financial Officer, Chief Compliance Officer

Julie Reyes is Chief Financial Officer and Chief Compliance Officer with Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk management strategies, retirement income distribution and generational wealth planning. Julie is a Certified Public Accountant (Inactive) and a California Real Estate Broker. She also holds multiple licenses in the insurance and financial services fields. Julie graduated from Pennsylvania State University, with distinguished honors in 1997 and began her career with Price Waterhouse, LLP that year specializing in tax and audit. She became a California Real Estate Broker in 2002. Julie has worked with David and Reyes Financial Architecture since the company’s inception, and uses her financial background and expertise to help a wide range of clients protect their assets, minimize their tax liabilities and maximize their cash flow.

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David Reyes

David Reyes is the Founder of Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk managed strategies, retirement income distribution planning and social security planning. David works in collaboration with CPA’s, attorneys and other money managers to ensure that all planning is not only implemented but also integrated. This collaborative team approach seeks to ensure the highest probability of success.

David has been an advisor for over 20 years and holds multiple licenses and registrations in the financial, real estate, and insurance fields. David is featured in many magazines such as “Kiplinger Personal Finance Magazine,” “Boomer Market Advisor,” and is co-author of four books on estate and retirement planning. David’s latest book “The Little Red Book of Retirement” has recently been released. Currently David is working on a new book entitled, “Momma’s Secret Recipe to a Successful Retirement” with Jack Canfield. David advises many professional and public groups including CPA’s and Attorneys on retirement, taxes, estate planning, and asset protection. David is also the host of “The Retirement Architect Radio” heard every Saturday on 1210 AM KPRZ.

David is a distinguished graduate from UCLA’s Personal Financial Planning program and is a graduate of e Wharton Business School in their Retirement Income Planning Certification program. David has also been named 2015 Advisor of the Year by the National Social Security Association (NSSA) for his advocacy to educate retirees on maximizing their retirement income.

David and Julie have been blessed with three wonderful children, Morgan, Taylor and young David Reyes, III. David’s hobbies include Tennis, Church fellowship and spending time with his family.

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