Paul Pent & Associates - Retirement Advice Blog

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A Great Alternative for Your IRA from Allianz Life


MINNEAPOLIS--(BUSINESS WIRE)--Allianz Life Insurance Company of North America (Allianz Life) today announced the launch of Allianz 360, a fixed index annuity (FIA) that is exclusive to Field Marketing Organizations (FMOs) and agents associated with the recently introduced Allianz Preferred distribution model. Currently available in 36 states, the newest FIA to Allianz Life’s lineup offers unique increasing income benefits for both accumulation and income.

Four Misleading Pieces of Retirement Advice


U.S. News did an article recently, "Four Misleading Pieces of Retirement Advice." It's not that the article was right or wrong, it's that they ignored the best solutions altogether. Case in point, they talked about how seniors should be careful when withdrawing 4% of theri retirement each year to live on. They make the case that if your accounts are at risk you need to withdraw less when the market crashes and your accounts are depleted. Unfortunately they miss altogether that if one takes their money out of market risk altogether they could easily withdraw 4% a year and be guaranteed to never run out of money as long as they live.

We talked about this subject a little this week at the end of our radio show. Right now a few companies that I know of are offering a guaranteed roll-up rate of 7% (sometimes more) if the funds, once withdrawals begin, are taken out at a rate of between 4% and 6%. This kind of account works great for IRA's and other qualified funds that need to stay tax sheltered. As usual, give us a call for further details and to see how this can benefit you.

A Better Alternative to Long Term Care Insurance


If you or a loved one are thinking about purchasing Long Term Care Insurance, you may want to think again. Take a look at this special you tube presentation by Finance, Faith, & Philosophy. You'll be glad you did. The biggest problems with LTCi are the high costs, the possible increase of premiums, and the possibility that it will never be needed or used. So what is a person to do? Self insure? No. There is now a much better way to solve the problem...

Click here

The True Cost of a Loss


Last week we talked about the importance of buildinig insurance into your retirement funds. The reason is to eliminate loss. We have reviewed many retirement accounts that gained 30-50% in 2009 and talked to brokers who are very proud of that fact. Unfortunately they are hiding something. They are hiding the previous years returns and sweaping them under the rug. Let's take a look and see why a 50% return isn't close to what most people think it is when preceeded by a year with a 30-50% loss. Here's the math: If you have $1000000 and incur a 50% loss like many in 2008, your account balance is $500,000. Now, you may think a 50% gain would be nice because it will take your account back to where it was before, but you'd be wrong.

$500,000 at 50% interest for 1 year will only bring your account back to $750,000. So a 50% loss followed by a 50% gain is a 25% loss. Ouch! It's best to just eliminate loss in your retirement account altogether. Call us at 1-877-797-7285 to see how you can take advantage of retirement accounts that do not participate in market risk.

We talked about this chart on the radio show this week and last. It speaks for itself. Fixed Indexed annuities won the war of return of investment plus there was no market risk involved.

also included is the performance of some "high performing" mutual funds I run into quite a bit because they have been grossly over promoted over the last 20 years. Basically, they have returned about 0% for the last decade.

Estate Planning and Life Insurance


Suppose you are a 65 year old man and you would like to make sure your wife will have at least $1,000,000 to live on and give to your children upon your death. An extremely inefficient way to do this would be to hold the money in CD's or investments. The best way to pass 1 milliion dollars tax free to your beneficiaries is through a permanent life insurance contract and possibly a Life Insurance Trust. For this article let's just look at how the life insurance numbers break down:

This is a bitter sweat moment for me. Up to this point, Smart Money magazine has done nothing but feed the public with false information about fixed and fixed indexed annuities. Now, they seem to be coming around and I'll be sad if they stop providing us with so much fodder for our radio show. Of course this is purley selfish so I must say, "Welcome to the club, Smart Money." Annuities are a great way to save for retirement. If only they had figured it out a little earlier, so many that listened to their advice wouldn't have lost so much money for their clients.

Here's the link to the article we've been talking about  for the last couple of weeks...Smart Money

Living to Age 107


Retirement models we've seen in tha past from brokerage houses and mutual fund companies have failed due to two reasons. The earnings aren't what they hoped and people are living longer than what was expected. This only demonstrates once again how important it is to have guaranteed forms of income, even if you live to be 107. Think it's not possible? Check this article out I just found on

60 Minutes is Catching Up


We've been talking for sometime about hidden risk in bonds and bond funds that became popular after the crash of 2008. Suprisingly, many think it is impossible to lose money when invested in bonds. If you hold tax free municipal bonds or bonf unfds you will be interested in this story 60 minutes did a couple of weeks ago called, "State Budgets: Day of Reconing." You can see it at the 60 Minutes website.

Annuity Expenses


Have you ever heard that annuities are too expensive to use for retirment planning? Me too, and you know what? Some are. That's why it's wise to shop around when considering annuities for retirement. If shopped properly, annuities can be the least expensive way to retirement plan. A good article on this subject can be found at annuity digest called, Breaking-Down the Annuity Expense Criticism. Check it out...

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