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In the Decumulation phase, three things tend to happen to compound the
First, since the retiree is now no longer adding additional funds to the plan but is
doing the reverse of that, He or She is now taking funds out of a potentially ever
shrinking plan to use for income.
Second, the retirees are coached to move their money into safer allocations and
maybe even move a good bit of it into fixed annuities which usually means they
will be getting lower returns overall.
Third, at the same time, any monies they leave in the market even though it is
supposedly in a “safer” allocation, are still at risk as well as subject to the
ongoing expenses that mutual funds have been known to charge, somewhere in
the 2% to 4% range annually without taking into consideration the actual returns
the moneys actually earn.
The Best Decumulation Solution:
The Best Supplemental Retirement Plan of the 21
It starts with a New Generation Life Insurance product.
The Savings Element is not subject to downside risk.
When tied to the S&P 500 it can currently safely earn as much as
Has a 3% underlying guarantee.
When the money is taken out correctly, the income producing
account never goes down in value to provide maximum income
If set up during the accumulation phase, the money can come out tax
free (provides a 25% to 40% or more increase in income).
Includes Chronic Care Insurance (Cash benefit).
Includes Critical Care Insurance (Cash benefit, in most states).
Any Residual left in the account at death is passed on income tax free
to the Beneficiaries.
Overall annual expenses can be 1/10 to 1/3 of the cost of the average
Note: This plan is only available through a state licensed life insurance agent!