“DaVinci Wealth Radio – 5 Retirement Myths”
by Darren Vilardo

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DaVinci Wealth Radio

5 Retirement Myths

Original air date August 15, 2015

5 Retirement Myths—a synopsis of the book by Patrick Kelly, “The Five Retirement Myths”

 

  1. Buy and Hold Always Wins.
    1. Analysis of flaws in this strategy.
  2. You have to take big risks to make big returns,
    1. Why this is almost 180 degrees the opposite. Losses have far more impact than gains.
    2. Traditionally a choice between safety, and low rates from a bank CD or big risks in order to get market like returns. Binary- Not the case now.
  3. Average returns tell the whole story.
    1. Mathematical examples of the flaws in this myth. “on Average”
  4. You can effectively manage your own portfolio.
    1. Emotion!
    2. Fear and Greed
  5. If something was that good, everyone would be doing it.
    1. No, lots of good things exist. High Mileage cars, safer cars, K-Cup machines… there are lots of great things in the world, but folks are set in “their” way. Dogma, tradition, beliefs, history, admit they were wrong! Ouch!

Process

How DaVinci Wealth can help protect assets in 2 ways,

Limit upside and eliminate the downside completely with annuities (FIA)

All the upside of the market with limited downside using AssetLock.

 

 

“DaVinci Wealth Radio – Is an Annuity Right For You?”
by Darren Vilardo

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DaVinci Wealth Radio

Is an annuity right for you?

Original air date August 1, 2015

One of the most common questions I get, one of the primary reasons people come to my office is to get information on these products, to learn more, because they heard about them- not sure what they are.

I hate to keep dwelling on them, but they are powerful, and there are a lot of misconceptions, misinformation. OPINIONS.

You cant simply spout wrong information then call it opinion. It’s Just Wrong! In my opinion the sky is green, nope doesn’t work, its just wrong, I look stupid!

A lot of folks say the same types of things about annuities…

Annuities have Incredibly High Fees- Yes, inside a VA.

In fact FIA’s with uncapped indexing strategy, crediting between 4 and 6% annually over time, NO DOWNSIDE ROSK, and ZERO in fees! Add a guaranteed lifetime income rider, which will pay you and your spouse as long as one of you is alive, for only .95%.

Less than the costs of most mutual funds, and less than your money manager whoe track record is spotty and who cant guarantee your principal!~ We call these Facts!

 

Example couple in my office: Not married, widow and her new gentleman friend

She is a widow- retired on Social Security- has some assets from life insurance, sale of family home, and small retirement account.

Her concerns are- will I be OK, can I make it, will my assets be enough to sustain me, through the next 30 or 35 years? Cant take risk, cant lose! Needs stable income, reliable income stream.

 

He is a retiree, who has a pension that will pay all his living expenses, and he has assets in the market.

 

They feel differently about risk, about income needs, She is a classic case study for an annuity, he probably doesn’t need one, except for perhaps his RMD’s.

 

“DaVinci Wealth Radio – Is your Bond Portfolio Safe – Original airdate July 18, 2015”
by Darren Vilardo

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DaVinci Wealth Radio – Original airdate July 18, 2015 “Is your Bond Portfolio Safe?”

KQNA 1130 am and 99.9 fm in Northern Arizona

Is Your Bond Portfolio “Safe” -Where to hide when rates rise

  1. Could this be you… You lost money in 2000-2002 or 2008, and your advisor said – let’s reduce your exposure to stocks and give you more bonds, as a safe alternative. Perhaps you opted for a more conservative portfolio at retirement—less stocks, more bonds- again with the idea that the bonds are “safe”
  2. Remember the 16,17, 18% mortgage rates, CD’s paying 10, 11, 12% or more –early `1980’s and we have been in a declining rate environment ever since, and given the inverse relationship of prices to rates, thus we have been in a bull market for bonds for the last 30 years. With interest rates at just about ZERO-That has reversed – and as rates begin to rise, bond values will fall- how much?
  3. Duration; A measure of a bond’s or bond portfolio sensitivity to interest rate changes—Not sure, call us, we can find out, we can stress test your portfolio
  4. Local competitor advertising bonds, 7% coupon on a 30 year bond, 7% YTM, duration about 12.52, meaning, a 1 percent increase in interest rates will result in an approximate 12.52% loss in value. OUCH!
  5. A bond proxy with no principal risk. FIA – not for income, but for a return similar to a bond over time, with no interest rate risk. Gains are locked in and never at risk
  6. Variety of indexes based on various asset classes- global stocks and bonds, US stocks, dividend stocks and bonds, value stocks and bonds,
  7. Different carriers offer different crediting mechanisms.
  8. Interesting and creative way to offer return in a low return environment and eliminate principal risk inherent in a bond portfolio in a rising interest rate environment.