Debunking the Top 7 Myths About Retirement Planning: What You Really Need to Know

Retirement planning has become increasingly complex in today’s ever-changing financial landscape. With rising living expenses, changing job markets, and unpredictable healthcare expenses, the road to retirement can feel daunting. Unfortunately, myths surrounding retirement can muddle our understanding and lead to poor financial decisions. Separating fact from fiction is crucial for ensuring a secure and enjoyable retirement.

At Peak Financial Freedom Group, we get that retirement planning can feel overwhelming, especially with all the myths floating around. Our goal is to make this process as straightforward and stress-free as possible. With a friendly team of experienced advisors, we are here to help you tackle the realities of retirement—whether it is managing healthcare costs or figuring out how to save effectively. We focus on what matters most to you, so you can plan confidently for the future you want.

How to Retire Without a Pension: Smart Strategies for a Secure Future

In today’s evolving job market, the safety net of a traditional pension is becoming less common. With many companies shifting away from defined benefit plans, it’s essential for those without pension plans to take charge of their retirement planning. While the absence of a pension might seem daunting, don’t worry—there are several smart strategies you might consider to ensure a secure and comfortable retirement.

After seeing the S&P 500 Index data for the time period between 1999 through 2013, many people asked us if this time period was unique or if it was the norm?

To answer this question, a more comprehensive analysis was performed. We went back to 1996 and reviewed every 15-year time period starting with 1996 through 2010 and ending with 2003 through 2018. The results from the analysis are eye-opening:

We think 15-years is a long time. If you’re 70, then 15-years could represent your life expectancy.

Let’s look at a 15-year graph of the S&P 500 Index starting in 1999 and ending in 2013, that’s when we finished writing the text of one of our books titled Don’t Bet the Farm. We did a significant amount of research on the S&P 500 Index to complete that book. Because we only work with retirees, we wanted to review what happened over the previous 15 years in the stock market to prepare for what types of pitfalls may lie ahead in the next 15 years based on normal average life expectancies. There was volatility, and there was growth. But what we ultimately found out was nothing short of astonishing.

Years ago, when you made your first investment, you were told “not to watch your money,” …“it will go up and down but don’t worry,” …“you will need to ride out losses,” …“over the long-run you should be OK and make good money,” and …“you must take risk to get high returns to succeed.”

From the beginning, you have been told, “You cannot control your money.” What if all these things you have been told are incorrect, and not in your best interest? What if you could control your money, actually make your money act any way you want it to? Don’t let your broker or advisor control your money; it’s not their money, it’s yours. You must learn how to control your money the way you want it to act. If you are like most people, you have probably been given two (2) main “pillars of knowledge” that have guided your investment decisions:

We believe the main definition associated with the word “annuity” should be “income.” Where did annuities come from, where did they originate?

The word annuity is believed to be derived from the Latin word “annua” – translated as “annual stipends.” The first annuity-like financial instrument in the world is believed to date back to 225 AD. If you can imagine back almost 2,000 years ago in Roman times, if you passed away and had assets, instead of leaving your beneficiaries lump sums of money, you might very well have left them income for as long as they lived. It seems like the Romans didn’t trust their kids with a big chunk of money any more than we do! This lifetime gifting of income practice created the need for the taxing authorities to quantify the amount of money that would ultimately be paid to beneficiaries.

In our book, Momma’s Secret Recipe For Retirement Success, we devoted a large section to help you understand fixed index annuities with income riders

In our book, Momma’s Secret Recipe For Retirement Success, we devoted a large section to help you understand fixed index annuities with income riders because a fixed index annuity with an income rider is the only financial instrument that can provide you and your spouse income guaranteed for as long as you both live, protection from stock market volatility and losses, an opportunity to participate in a portion of index gains, potential for future income increases, a low fee structure, the opportunity to pass all funds remaining in your account at death to your named beneficiaries, access to your funds for income purposes either immediately or within 12 months, and a legally binding and enforceable written contract regarding the promises made to you about your money.

The best recipes are usually secret because the chef doesn’t want to disclose the ingredients, the chef wants to keep the ingredients secret.

If you don’t have that secret ingredient, your dish will not come out as planned unless you get very lucky. The same thing can be said about your plans for retirement. If you don’t have the proper plan without the proper ingredients, your success may depend on hope and luck, because you will be hoping that you will be lucky. This type of planning, or lack of planning, may create an endless amount of stress, anxiety, and worry, and could potentially lead to a lack of financial success.

What would you guess is the number one reason why people decide not to purchase a fixed index annuity with an income rider as part of their overall retirement income plan?

It’s not because of surrender charges, fees, or lower returns. It may be because the benefits of a fixed index annuity with an income rider can simply sound too good to be true:

You give a fixed index annuity company a lump sum of money by writing them a check or by transferring your IRA/457/403(b)/SEP/retirement plan on an income tax-free basis. In turn, the annuity company gives you an annuity contract which is a legally-binding written contract enforceable in a court of law.

Every single thing the insurance company promises and guarantees you is in writing in your annuity contract including your principal being protected against all stock market losses, your income being guaranteed for as long as you live, all remaining assets passing on to your beneficiaries, how you access your money, the fees you pay, and how you earn interest in your account.