Page 46 - Know-So Money, Hope-So Money, Retirement Secrets Wall Street Doesn't Want You to Know

10 Most Common Objections
1. “I don’t want to tie up my money.”

We get it. Setting aside that if it’s retirement money, it’s been tied up
for decades, where is the most liquid place you can think of to put your
money? Money market accounts? Checking? Savings? Your mattress?
Why don’t you put of all your money in these locations? Because you
need a return that will grow your money and fight inflation. You may
also need an income that these low or no-yield accounts can’t give.

“By the way, where is your money now?” I often ask. If your answer is
“in the market,” then you’re violating your own liquidity principle. Bear
with me. I realize you can sell anytime you want…

But if you needed your money any time between 2008 and 2009, how

much could you have gotten? 50%? 60%? Less? On $100,000 let’s say
he sent you $50,000 (which is all that was left due to market volatility).
You called him up to tell him you received the $50,000 and ask how
long it will be before you get the other $50,000. He informed you that if
you want the second $50,000 you had to return the first $50,000 and
then wait an unspecified time… and maybe you will get it back. In
other words, you may have little or no liquidity. That’s Hope-So

Money.

With an FIA the worst your liquidity could be damaged would be to
return all but about 10%-12% (again – worst case – usually much
lower) due to surrender charges. However, you have the opportunity to
take 10% annually with no penalty, adding up to withdrawing your

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