Page 175 - Ready Set Retire

Ready. Set. Retire!

usually much lower) due to surrender charges. However, you
can take 10% annually with no penalty, adding up to
withdrawing your entire original premium in 10 years (or a little
longer, depending on your return, and whether the 10% is
calculated on the original premium every year or the new
account value). Do you have a plan in place to spend your
entire principal in ten years?

So, with an annuity you know up front what the worst case
scenario will be. And because you know the facts without a
doubt, you can do actual planning. (Remember the title of this
booklet.)

9. “I DON’T GET ALL THE UP – CAPS AND PARTICIPATION RATES
ARE LIMITING.”

It’s true that you don’t get all the up with an FIA. However, it
is not a disadvantage to get some of the up and none of the
down compared to what most people get. Actually, with your
diversified portfolio, not only are you not getting all the up, but
you are participating in some of the down. Personally, I would
rather get some of the up and none of the down than to get
some of the up and some of the down. (Some of my clients got
over 20% in the last year. How did you do?)

Warren Buffett thinks diversified portfolios reduce your
return. If you had put all your money in just the winner in your

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