068 Tom Hegna: Don't Worry, Retire Happy!

0:04
welcome to

0:05
fun with annuities with your host me

0:07
stan

0:08
the annuity man america's annuity agent

0:10
can annuities be fun

0:12
can contractual guarantees be fun

0:14
absolutely they can

0:16
find out the brutal facts about

0:18
annuities with no sales pitches or high

0:21
pressure nonsense

0:22
just the brutal and factual annuity

0:25
truth which is all you need to hear

0:27
let's have some fun with annuities and

0:29
let's have that fun

0:30
start right now

0:33
[Music]

0:39
welcome to fun with annuities i'm your

0:41
host stan the annuity man america's

0:43
annuity agent license in

0:45
all 50 states i'm so glad you joined us

0:47
whether you're listening on all major

0:49
podcast platforms or on the fun with

0:51
annuities youtube channel where you can

0:53
see

0:54
me and our special guest today you can

0:56
see our facial expressions and how we

0:58
interact either way

0:59
i'm glad you joined us let me tell you a

1:01
little bit about

1:03
our guest today i'm so happy he's with

1:05
us his name is tom

1:06
hegna he's an author a speaker

1:10
an economist and an unbelievably

1:13
incredible

1:14
um incredibly popular speaker

1:18
with the industry retirement industry

1:19
annuity industry

1:21
lifetime income that's his those are the

1:23
topics that's his

1:24
that's where he is excels just like stan

1:28
the annuity man is the undisputed

1:29
annuity expert and america's annuity

1:31
agent tom hegna

1:33
is known as the retirement income expert

1:36
he's a former senior executive officer

1:39
at new york life and also

1:42
a retired lieutenant colonel from the

1:44
army so he

1:46
he's a tough dude um here's an

1:48
unbelievable fact about tom he's given

1:50
over 5 000

1:52
seminars i'm going to say that again 5

1:55
000

1:56
and is just so passionate about helping

1:59
baby boomers and seniors retire and what

2:01
he calls

2:02
the optimal way and he's going to

2:04
describe that

2:05
tom specializes in in creating very

2:08
simple and powerful retirement solutions

2:12
that's based on math and science not

2:13
some opinion or sales pitch that's what

2:15
i like about him he's

2:16
he's all about math and annuities are

2:19
all about math and we're going to talk

2:20
about that

2:22
his skill i think personally is solving

2:25
complex financial solutions um

2:28
and problems using very easy to

2:30
understand language and words and

2:32
stories that you can understand

2:34
he has condensed a large large chunk of

2:37
his huge knowledge base into

2:41
five books um and let me tell you about

2:44
about them you should go

2:45
on there on amazon paychecks and play

2:47
checks

2:48
retirement solutions for life published

2:50
in both the us and canada

2:52
uh don't worry retire happy seven steps

2:55
to retirement security

2:56
both published in u.s and canada we're

2:59
going to talk about those seven steps to

3:00
retirement security

3:02
and he also did a book on retirement

3:03
income masters secrets of the pros

3:06
you might have seen tom uh on public

3:09
television where he had a special on

3:12
retirement income that was viewed in

3:14
over 80

3:15
million households in the united states

3:18
and

3:18
canada without further ado welcome to

3:21
the fun with annuities podcast

3:24
tom hegna welcome tom thank you stan i

3:27
didn't know my bio is going to take up

3:29
the whole podcast

3:30
when you i didn't even cover it all tom

3:32
you know that i was just i was just

3:34
synopsizing so hey let's jump right in

3:37
um

3:38
let's get to the seven steps of

3:40
retirement i know you covered this in

3:41
your book and

3:42
and once again for everybody out there

3:44
if you go to my site the annuityman.com

3:45
we're going to have a page for tom you

3:47
can get all of his stuff and go to his

3:48
site

3:49
if you want to book him as a speaker you

3:51
can do that as well but let's cover

3:52
those seven

3:53
steps to retirement tom yeah

3:56
so you know step number one is you gotta

3:58
have a plan i mean how are you gonna get

4:00
anywhere if you don't have a roadmap or

4:02
a plan of how to get there and i say

4:03
you've got to work with a financial

4:05
professional retirement is not a

4:07
do-it-yourself project i mean think

4:08
about it you don't do your own dental

4:10
work in your garage with your drill set

4:12
and i don't think people ought to be

4:14
doing their own retirement planning

4:15
either so that that's step one

4:18
well and that's in a do-it-yourself

4:22
world time where everyone is trading

4:24
bitcoin and trading

4:26
cryptocurrency and you know what it's

4:28
easy in a raging bull market

4:29
market to throw darts at things and

4:31
things go up me and you have been around

4:32
long enough to as i say we probably have

4:35
cowboy boots older than most

4:37
um agents and advisors out there selling

4:40
either annuities or financial products

4:42
in general

4:43
but i agree with you on you need a

4:47
professional

4:48
it's tough to find someone who's going

4:50
to shoot it straight and tell you the

4:51
truth

4:52
but you need to search and interview

4:54
people as well

4:55
what's number two number two is to

4:57
maximize your social security benefits

4:59
see most people

5:00
uh the largest retirement asset they

5:02
have is social security

5:03
and yet they're not studying it they're

5:05
not finding out the optimal age to start

5:07
it they they listen their buddies down

5:09
to the coffee shop to tell them to take

5:10
it at age 62.

5:12
and that's for most people that's not

5:14
the right age for some people it is

5:16
because you know if if if they have

5:18
short life expectancies for both the

5:20
husband and wife

5:21
if um they have minor children in the

5:23
house i mean there are reasons why you

5:24
might want to take it early but what i

5:26
say is

5:26
in general the bread winner should delay

5:29
so

5:30
so if you have a husband a wife uh let's

5:32
say the husband made more money in his

5:33
career than the wife the wife can take

5:35
her social security early i don't have a

5:37
problem with that

5:38
but the husband should wait or whoever

5:39
made the most money should wait because

5:41
that check covers both lives

5:42
because when he dies she's going to get

5:44
his if he took his early

5:46
he locked her into a lower social

5:48
security survivor benefit so

5:49
so just look there's social security

5:52
calculators out there

5:53
another reason why you should sit down

5:55
with a financial professional just have

5:56
them run that calculator

5:58
it will show you the optimal age based

6:00
on your situation

6:02
that you should draw social security and

6:04
i know tom and i both

6:06
laugh when people say i hate all

6:07
annuities and we're like wait a minute

6:08
you already own one it's called social

6:10
security

6:11
and if you own a pension you already own

6:12
one so it's you know those are annuities

6:15
and you know what's so funny is people

6:16
love their social security and they love

6:18
their pensions

6:19
and and the people who own annuities

6:20
love their annuities you don't ever find

6:22
people complaining that they have these

6:24
annuities

6:24
they love them those checks come every

6:26
single month as long as they're

6:27
breathing those checks keep coming

6:29
and uh you know all the all the math and

6:32
science the phds and if you read dr

6:34
michael finka dr wade fowle

6:36
a dr monaco miari dr moshe milevsky dr

6:40
david babel i mean it the list is

6:42
robert c merton nobel prize winner they

6:44
all say

6:45
you must annuitize a portion of your

6:48
portfolio nobody's saying

6:49
put all your money in annuities and

6:51
remember stan i don't sell any annuities

6:53
i don't get compensated on the sale of

6:54
any news i don't sell any of them i own

6:57
11 annuities okay i don't sell them

6:59
i don't really care people buy them or

7:00
not if they don't want to

7:02
but the math and science says that they

7:04
should and

7:05
and that's what i that's what i write

7:06
about and i agree i agree with that and

7:09
people always

7:10
you know ask me with lifetime income

7:11
annuities um they asked me a question

7:14
they never asked what their pension and

7:15
social

7:16
security which is what's the return on

7:17
investment stan the annuity man and i'm

7:19
like well if you tell me when you're

7:20
going to die

7:21
i can give it to you to the penny up

7:23
until that point is a pure transfer risk

7:25
but i do think in a raging bull market

7:27
where there's fear of missing out

7:28
fomo and people are always unfortunately

7:32
and mistakenly trying to time annuity

7:34
purchases and once again there's many

7:36
types of annuities but when we're

7:37
talking about lifetime income

7:39
the primary pricing mechanism is your

7:41
life expectancy interest rates do play a

7:43
minor role

7:44
the people are hung up on interest rates

7:46
definitely can you

7:47
can you speak to that a little bit more

7:49
before we get to number three

7:51
on just the interest rate conundrum

7:53
we're in right now

7:54
yeah i mean and i've posted a lot on it

7:57
because i'm an economist

7:58
and everybody said oh inflation

7:59
inflation you know lumber price of

8:00
copper prices up

8:01
every oil price of gas price up

8:03
everything's going up and yet

8:04
the 30-year treasury is still under two

8:06
percent i mean that's unbelievable the

8:08
30-year government bond

8:09
is under two percent when we're when

8:10
we're filming this and so

8:12
it's kind of a conundrum the bond market

8:14
does not see inflation you and i see it

8:16
we

8:16
see it every day but i'm telling you the

8:18
bond market says it's temporary

8:20
and and they don't see it as a long-term

8:22
thing and the number one thing as you

8:24
said is longevity

8:25
and that also plays a role in social

8:26
security see what people don't realize

8:29
is that right now today the life

8:31
expectancy of a 65 year old couple is

8:33
age 93

8:34
50 of all 65 year old couples will have

8:37
somebody live to be 93.

8:38
25 those 65 year old couples will have

8:40
somebody live to be 97

8:42
and when you plug that type of longevity

8:44
into social security

8:45
into a calculator or into your annuity

8:47
calculations

8:48
you're going to find out that it's very

8:50
very very important

8:52
to have something that will pay you as

8:54
long as you are living as long as you

8:56
are breathing

8:57
stocks can't do that bonds can't do that

8:59
real estate can't do that bitcoin cannot

9:01
do that

9:01
but an annuity can do that right and

9:04
that's the monopoly that annuities have

9:07
you know the lifetime income type

9:08
annuities have that no other product

9:11
like tom said

9:12
can match that's not a sales pitch

9:14
that's a fact

9:15
that's just a fact so you know lifetime

9:18
income with ten thousand baby boomers

9:20
hitting age 65 every single day tom and

9:23
i both agree that's a

9:24
that's called a that's called a

9:25
demographic title wave

9:27
of people that are looking for

9:29
guarantees

9:31
i think the hurdle with annuities and

9:32
the annuity industry has done a

9:34
poor job um explaining this

9:38
the only person out there that is

9:39
consistently doing this

9:41
right from a from a presentation

9:43
standpoint on a national level

9:45
is tom hegna he talks about how these

9:48
products worth work expectations buying

9:51
the contractual guarantees of the policy

9:54
which is why we have them on because you

9:55
know this the saying of this

9:57
podcast is is living the reality not the

10:00
dream and the reality is the contractual

10:02
guarantees of the policy so

10:04
what's number three are we at number

10:06
three yet

10:07
three is to consider a hybrid retirement

10:09
too many people are trying to retire too

10:11
early they haven't saved enough money if

10:12
they could just work a couple extra

10:14
years even part-time doing something

10:15
they love to do

10:16
it can significantly help them retire

10:18
more successfully

10:19
because they can have increased earnings

10:21
increase savings

10:22
increase social security benefits and

10:24
you can keep them from tapping into that

10:26
portfolio for a couple years

10:28
that's a tough pill to swallow for the

10:30
for the person that

10:32
is going toward retirement but those are

10:35
tough conversations that i have every

10:37
single day for people that contact me

10:39
you can go to my site at the

10:40
annuityman.com and book a call and i'll

10:42
be brutally honest if you say

10:44
there's a lot of times that i get a

10:46
person i say okay

10:47
i asked you questions what do you want

10:49
the money to contractually do

10:51
and then when do you want those

10:52
contractual guarantees to start and if

10:53
they say income

10:55
and i need it to start now or two years

10:57
now whatever then i say well how much

10:59
income and sometimes like you said tom

11:02
they don't have enough money to

11:03
contractually pull that off

11:04
unfortunately that's when the

11:06
the charlatans and the grifter yo sales

11:09
people

11:09
step in and go well this one will do

11:11
that no you buy it for the contractual

11:13
guarantee and if the contractual

11:14
guarantee doesn't

11:15
hit it hit that number for you then

11:18
tom's right you might want to

11:20
either have that side hustle or work a

11:22
little bit longer

11:23
but that's you know those are those are

11:25
retirement realities

11:28
it doesn't have to be like terrible work

11:30
like i'm doing the hybrid retirement i'm

11:32
still doing this but i'm not doing it

11:34
like i was before i spent 200 days a

11:35
year on the road before i'm not doing

11:37
that i'll do it virtual i'm not going to

11:39
be i'm not going to be on the road 200

11:40
days now my golf game and my my tennis

11:43
appointments and my my my pickleball

11:45
appointments they're more important to

11:46
me now

11:47
but i still do some work on the side and

11:49
it brings in revenue and

11:50
it helps and so you know even even

11:52
somebody who likes to play golf they

11:54
could be a marshall

11:55
on a golf course two days a week guess

11:57
what they get to play for free the other

11:59
five days a week so i mean it can reduce

12:00
their expenses so

12:01
just be creative in doing something that

12:04
can help your retirement

12:05
and by the way tom's book paychecks and

12:08
play checks

12:09
which i would advise you to go to amazon

12:12
and buy

12:14
immediately because it's a great great

12:15
book i mean that's when i first

12:17
kind of found out about tom a while back

12:20
and we've been friends ever since just

12:21
because

12:22
he just i mean he talks about lifestyle

12:24
and him and i

12:25
we we both believe that annuities can

12:28
provide lifetime income annuities can

12:29
provide

12:30
lifestyle but as he said you know

12:33
everything you have doesn't need to be

12:34
an annuities and certainly the annuity

12:36
industry frowns

12:37
upon that right um as well it just needs

12:40
to be a tool and i agree with the

12:42
the um comment tommy that there's a lot

12:45
of smart people

12:46
you know the guys that have the the

12:48
ascots on and

12:49
the smoking jackets with the elbow

12:52
leather elbow protectors

12:53
those smart guys are saying hey you

12:55
might want a lifetime income

12:56
tom and i you know he refers to it as is

12:59
kind of like i do as the income

13:01
floor it's the income floor that's going

13:03
to hit your bank account every single

13:05
month

13:06
um and by the way if you have that in

13:08
place contractually you're a better

13:10
investor i think tom would agree with

13:11
that yeah i mean i even put one percent

13:14
of my portfolio into bitcoin and i put

13:16
that on

13:16
social media people said oh his account

13:18
must be hacked he would never talk about

13:20
bitcoin he's all about guarantees and i

13:21
said yeah

13:22
but it's because i have so much of my

13:23
money guaranteed i can afford to take

13:25
one percent that's all i've ever said

13:27
one percent of my portfolio

13:29
and do some very risky stuff with and

13:31
guess what it's done very well i bought

13:33
bitcoin backwards three thousand dollars

13:34
of bitcoin okay

13:35
and and i just put one percent of my

13:37
portfolio in there and that's grown up

13:38
but but because i have so much of my

13:41
income guaranteed

13:42
i'm able to take more risk with some of

13:44
my other money if i want to

13:46
and i think i think people just need to

13:48
remember that's how

13:50
the lifetime income annuity transfer of

13:52
risk

13:53
that helps that helps as people say well

13:56
how's it going to make me a better

13:57
investor because you know

13:58
that you don't have to do the four

13:59
percent rule of taking four percent out

14:00
of your portfolio disrupting it

14:02
you already have that in place what's

14:04
number four four is you gotta have a

14:06
plan to protect yourself against

14:08
inflation

14:09
and and you know for the last 30 years

14:10
inflation has been dead and now all of a

14:12
sudden it's in the news all the time but

14:14
even if we're in a deflationary

14:15
environment there's stuff that goes up i

14:17
mean college education's going up

14:18
nursing home prices are going up uh

14:20
health care is going up

14:22
so even in a deflationary economy

14:24
there's pockets of inflation and that's

14:25
why

14:26
you can't just have income for the rest

14:28
your life you really want to figure out

14:29
how you're going to have

14:30
increasing income for the rest of your

14:31
life and there's really three ways to do

14:33
it number one

14:34
you can buy an annuity that

14:35
automatically goes up every single year

14:37
by three or four or five percent you can

14:39
pick that up front or

14:41
you can um cover your basic living

14:43
expenses and retirement with guaranteed

14:45
lifetime income and then invest the rest

14:46
your money into stocks and real estate

14:48
and other things

14:49
that go up in times of inflation so we

14:51
have inflation there's going to be more

14:52
money to take up more money

14:53
or you can do what i've done i bought

14:55
guaranteed lifetime income that kicks in

14:57
when i turn 860

14:58
but i bought more that kicks in when i

15:00
turn 862. i bought more that kicks in

15:02
when i turn 865. i bought more that

15:04
kicks in when i turn 870

15:05
so i am guaranteed them increasing

15:08
income for the rest of my life

15:09
and your listeners can do that as well

15:11
of course and that's what i call

15:13
laddering income um and you can ladder

15:16
lifetime income you can ladder the

15:17
purchase date you can ladder the income

15:19
start date like

15:21
like tom's doing and that is truly the

15:24
best way to

15:25
address inflation using lifetime income

15:28
annuities

15:28
tom mentioned earlier the number one was

15:30
you can buy

15:31
annuities that increase and that's

15:34
increased the income

15:36
whether it's a cost of living adjustment

15:38
or an index or whatever

15:39
that sounds really good on face but i

15:41
want to remind our viewers and listeners

15:42
that

15:43
annuity companies have the big buildings

15:44
for a reason and they have the logos on

15:46
the plane for the reason and they

15:47
and they are sponsoring sports stadiums

15:49
for a reason and that reason is they

15:51
don't give anything away

15:53
so any time that you are looking at an

15:55
annuity type regardless of the lifetime

15:57
income type of annuity

16:00
if you're going to attach an increase to

16:02
that income stream

16:03
the annuity company is going to

16:05
significantly lower

16:07
that income amount to make up for that

16:09
increase so they're not just going to

16:11
give it away

16:12
yes they give it away with social

16:13
security because politicians

16:15
don't care they're just trying to get

16:17
get votes

16:18
but people need to understand that yes

16:20
you can have

16:22
increasing um income uh levels

16:25
every year with annuities but those

16:28
companies don't give it away i'm not

16:29
saying don't buy it the way that we use

16:31
that tom is

16:32
you know if people are buying multiple

16:35
annuities

16:36
maybe one has the inflation increase and

16:38
one does not

16:40
um but again it all comes down to

16:42
contractual guarantees and if you're

16:43
interested

16:44
in looking at inflation versus

16:47
non-inflation say immediate annuities

16:49
you know go to my site the

16:50
annuityman.com schedule call with me

16:52
i'll run them real time and send it to

16:53
you

16:54
and you can see how they the annuity

16:56
company prices that

16:58
but uh totally agree with um with what

17:01
time the three things tom said which is

17:03
buy an annuity for and that has

17:05
increased to inflation we just explained

17:06
that

17:07
and then the third one was you know have

17:09
income start at different intervals

17:11
which i think is good

17:12
the second one i think is very very

17:14
important which is

17:16
put in the income floor knowing that

17:18
there will be inflation

17:19
and then investing the rest and then

17:23
when inflation hits

17:24
at that point in time you can always do

17:25
what's what i call a reverse engineer

17:27
quote

17:28
to solve for that inflation amount using

17:30
the single premium

17:31
immediate annuity do you agree with that

17:33
absolutely

17:35
but we just want them to have increasing

17:37
income over time because

17:38
inflation is of like a virus it gets

17:40
worse every year and then step number

17:42
five

17:42
is you need to secure more guaranteed

17:44
lifetime income and that is a key

17:46
part of retirement and it's key for a

17:48
number of reasons number one the number

17:50
one risk in retirement is longevity i

17:51
mean there's a lot of risk there's

17:52
market risk there's withdrawal rate risk

17:54
the sequence of returns risk

17:56
you know it might have inflation might

17:57
have deflation might raise your taxes

17:59
you might die you might need long-term

18:00
care there's a lot of risks in

18:02
retirement

18:02
but the number one risk is longevity

18:04
that you live a long time

18:05
and the annuity is the only product in

18:07
the world you can buy

18:09
that can mitigate that longevity risk

18:11
because as long as your breathing or you

18:12
and your spouse are breathing

18:14
if you have a joint annuity those checks

18:16
are coming guaranteed for the rest of

18:18
your lives and

18:19
and that is so important and then

18:20
there's two additional reasons why it's

18:22
important number one

18:23
you're going to be happier you know the

18:24
wall street journal the wall street

18:26
journal said the secret to a happy

18:27
retirement

18:28
is friends neighbors and a fixed annuity

18:31
and and what they found is that the

18:33
happiest people in retirement were those

18:34
people who are surrounded by their

18:35
friends surrounded by their families

18:37
who had guaranteed paychecks every

18:39
single month you know i

18:40
i would encourage your listeners who are

18:42
your fa who are your happiest friends in

18:44
retirement a british retired military

18:46
retired government retired teachers

18:47
retired firefighters

18:49
is people with pensions so happiness and

18:51
retirement is tied almost 100

18:54
to guaranteed lifetime income not assets

18:57
who are the most miserable people you

18:58
know

18:58
they're loaded but they're losing money

19:00
in this and they're losing money in this

19:02
and they're losing money in this and

19:03
these people are miserable

19:04
assets make people miserable in

19:06
retirement guaranteed lifetime income

19:08
makes people happy

19:09
and then the second thing is the

19:11
research now shows people of guaranteed

19:13
income

19:13
tend to live longer i'm not making this

19:16
stuff up you can look it up on free

19:17
economics

19:18
the journal for financial service

19:20
professionals had an entire article on

19:22
uh you know longevity insurance is long

19:24
do do

19:25
do um does long does longevity insurance

19:28
increase longevity and it's all about

19:30
annuities and

19:31
what they found is that the average 65

19:33
year old male

19:34
will live about 20 percent longer if

19:37
they have an annuity

19:38
versus if they don't now it doesn't mean

19:40
that buying an annuity

19:41
automatically makes you live longer i

19:42
mean maybe maybe people who have bad

19:45
you know life expectancy don't buy

19:46
annuities but having that guaranteed

19:49
income has been proven through

19:50
through centuries because remember

19:52
annuities have been around for thousands

19:54
of years

19:54
the roman empire issued annuities

19:57
because running out of money has been

19:58
the number one concern of people ever

20:00
since there's been people there's been

20:01
money

20:02
it's not a new concern but you're likely

20:04
to be happier

20:05
and you're likely to live longer if you

20:06
have guaranteed lifetime income

20:08
tom what's the what's your site address

20:13
tommagnet.comhegna.com

20:14
that's t-o-m-h-e-g-n-a

20:17
dot com all one word i would encourage

20:19
you to go there there's a lot of good

20:21
stuff

20:22
there um for you to take in and if

20:24
you're looking for a good speaker for

20:26
your organization

20:27
um i recommend tom hegna he's fantastic

20:29
in fact i i kidded tom the last time we

20:31
were together i was like

20:32
we need to go on like a world tour like

20:34
a us tour

20:36
and do a co-headlining because you know

20:38
my my

20:39
speaking style is a little bit more

20:40
abrasive than tom's but it's still

20:42
factual

20:43
but i think we'd knock the cover off the

20:44
ball definitely and just the problem is

20:46
we're both just getting older

20:47
one of the things that you mentioned in

20:49
there was just the guaranteed

20:51
income but i wanted to make sure that

20:53
our listeners and our viewers understand

20:55
one thing

20:56
one of the biggest misconceptions about

20:59
lifetime income type annuities and that

21:01
would be immediate annuities deferred

21:02
income annuities qualified longevity

21:04
annuity contracts

21:06
and income writers of which i've written

21:08
books on all of those you can go to my

21:09
site at the annuityman.com and i'll send

21:11
them to you

21:12
but what people need to understand is

21:14
that

21:15
if your learjet hits the mountain if you

21:17
die that's what tom that's how i call

21:19
people done if your rented leader jet

21:21
hits the mountain

21:22
you can structure your annuity so that

21:25
100

21:27
of any unused money will go to your

21:30
family or listed beneficiaries or

21:32
charity of choice

21:33
and the evil annuity company doesn't

21:35
keep a penny

21:36
i find one of the biggest misconceptions

21:38
tom is that

21:39
people i never bond annuity because i

21:42
want the annuity company to keep the

21:43
money

21:44
that's one of about 40 ways to structure

21:47
a lifetime income an annuity what you

21:50
need to tell a professional

21:52
hopefully me is that this is what i

21:54
wanted to do

21:55
you know this is how i want to structure

21:57
it you can have money coming back cash

21:59
refund when you die to the beneficiaries

22:01
or you can structure it as a payment

22:04
form

22:04
to the beneficiaries quick story my two

22:06
daughters are one's a dancer one's a

22:08
writer which means they'll never make

22:09
any money

22:10
but i want to make sure that with my

22:12
annuities that they're not going to get

22:13
the lump sum because they'll helicopter

22:15
in

22:15
to the funeral and then drive away in a

22:17
ferrari at least i want them making

22:19
payments you can structure it

22:21
and handcuff those beneficiaries for any

22:23
unused money but the other thing before

22:25
we get to the next

22:26
point is that remember when the account

22:30
is drawn down to zero the annuity

22:32
company is still

22:32
on the hook to pay and i that's

22:35
truly the value proposition of a

22:37
lifetime income

22:39
stream annuity and with covet did not

22:42
disrupt

22:43
life expectancy as people thought it

22:45
really did not if you look at the stats

22:47
and i do think

22:48
that as a country and as a as a world

22:50
we're going to have better

22:52
medical care because of this i actually

22:54
think life expectancy tables will go

22:56
up do you well yeah and and mosh

22:58
milevsky dr milevsky's done a lot of

23:00
work on this and he said like

23:02
i don't remember it's 1915 or 1920

23:04
whatever that last

23:05
spanish flu was life expectancy went

23:08
down for like a year

23:09
and then it spiked up because all it

23:11
really did was

23:12
people who were going to die anyway many

23:15
of them

23:15
died a year earlier and then everybody

23:19
else

23:19
ended up living longer and so so i think

23:21
we're going to see that life expectancy

23:23
is going to spike again

23:24
um but i just want to say one thing on

23:26
this this guaranteed lifetime income

23:28
it's those mortality credits that we

23:30
could literally do an entire show on

23:31
mortality credits

23:32
that that guarantees you'll never run

23:34
out of money but even when people

23:36
pick life only because that's what

23:37
you're talking about a life only

23:39
where people think the insurance company

23:40
keeps the money the insurance company

23:42
does not keep the money

23:44
that money goes to the other people that

23:46
pick life only and live

23:47
that's why the payout rate is higher but

23:49
like people don't want that to happen

23:51
you pick life with cash rebound i've

23:53
been shown doing joint life

23:54
with a grandpa and his five-year-old

23:56
granddaughter now he gets a check for

23:58
the rest of his life when he dies

24:00
she gets a check for the rest of her

24:01
life that thing can pay for 100 years

24:03
that's what people don't understand

24:04
about this guaranteed lifetime income

24:06
it's really an incredible product

24:07
that strategy i deemed and i've written

24:10
about it

24:11
i call it the legacy income monster

24:14
because i i had a recent 82 year old

24:17
great grandfather

24:18
did a joint lifetime income with a

24:20
five-year-old

24:21
and same same thing if you really want

24:24
legacy and have a have a monthly

24:28
check hit the bank account of your loved

24:31
ones

24:31
and you'll be dead and gone and they'll

24:33
be looking lovingly

24:36
and bringing flowers to your gray and

24:37
they'll always remember you i used to

24:39
i used to hand out a piece of paper to

24:41
people with four lines on the top and

24:42
eight lines on the bottom i said now do

24:44
me a favor jot down the first and last

24:45
name your four grandparents

24:47
well almost everybody can do that

24:48
because they know their grandparents and

24:49
then i said now these eight lines

24:52
just jot down the first and last name of

24:53
your eight great-grandparents go ahead

24:55
it should just take a minute

24:56
well i've never had anybody remember the

24:58
first last name of their great great

25:00
great grandparents and i said you know

25:01
what's so interesting

25:02
john d rockefeller's great great great

25:04
great great great great grandkids

25:06
they all remember his first and last

25:08
name you know why because every year

25:09
they get a check from john d

25:11
rockefeller and we've found if you get a

25:13
check from somebody every year

25:15
it helps your memory no it no it

25:17
definitely does

25:18
going back to mortality credits and i do

25:20
want to have you back on where we just

25:21
dig into that

25:23
yeah can you spend a little bit of time

25:25
there and give people maybe the 30

25:27
000 foot view of mortality credits with

25:31
annuity payments and why it why people

25:33
need to fully understand it

25:35
yeah we'll see like let's say there's a

25:37
thousand people out there

25:38
the insurance company does not know when

25:41
each one of them is going to die

25:42
but they do know for a fact that 500 of

25:45
them will die

25:45
before the other 500 they just don't

25:47
know who they are but because they know

25:49
that they can pay

25:50
all a thousand a higher payout rate

25:52
because they know they're really

25:53
going to have to pay that to half the

25:54
people and and and so

25:56
so um in in i wrote this white paper

25:58
called retirement alpha it's just a

26:00
little thing

26:00
and in there uh now where can they get

26:02
that retirement out well he held it up

26:04
to the viewers but for the podcast

26:06
listeners it's called retirement alpha

26:07
where's that

26:08
yeah tomagnet.com it's it's there but

26:11
but what's interesting about that is one

26:13
of the one of the advisors referred to

26:15
mortality credits as

26:16
other people's money he said look i work

26:18
with a bunch of baby boomers none of

26:20
them have enough money to retire but if

26:21
i

26:22
put them all together and they all pick

26:24
life only the payout rate is high enough

26:26
that they'll all make it now some of

26:27
them are going to die early

26:29
and and and that that money would then

26:31
go to the ones who live longer and he

26:32
said

26:33
you don't have enough of your own money

26:34
to retire i got to find you some

26:36
other people's money and that's what he

26:38
called mortality credits was

26:39
other people's money it's extra money

26:41
from the risk pool the entire risk pool

26:44
it's it's like the opposite of life

26:46
insurance how can an insurance company

26:47
afford

26:48
to sell a million dollar life insurance

26:50
policy for 20 bucks a month a 20 year

26:52
old can buy a million dollar policy for

26:53
20 bucks a month

26:54
right well they know not many 20 year

26:56
olds are going to die

26:58
you see and so so they can keep that

27:00
premium low and it's just like

27:01
a 90 year old can buy an annuity with a

27:04
guaranteed 20

27:05
payout rate well how can a insurance

27:06
company guarantee 20 percent a year for

27:08
the rest

27:09
because they know that 90 year olds not

27:10
going to live that long probably

27:12
but if they do they they're on the hook

27:13
to pay that as long as they're living

27:15
and and people just don't understand

27:17
these mortality credits are better

27:19
the older you are and the longer you

27:22
live

27:22
so a 90 year old is going to get a lot

27:24
more mortality credits than a 40 year

27:26
old

27:26
but then the 40 year old is going to get

27:28
paychecks for a lot longer than the 9

27:29
year old so

27:30
but it's it's all based in math and

27:32
science because the people who set

27:34
the payout rates are called actuaries do

27:36
you know what actuaries have to study to

27:38
become actuaries you have to study math

27:39
and science

27:40
life insurance and annuities are based

27:42
in math and science

27:44
yeah they're not studying like you know

27:45
social discourse

27:49
those these are math dudes and math

27:50
dudettes out there that are doing that

27:52
by the way going back to the um to the

27:54
covet thing and we talked about

27:56
you know people passing away that we're

27:58
probably going to pass away you know tom

27:59
and i want to make sure that you

28:01
understand that we certainly our hearts

28:04
go out to

28:04
all of you out there that's had people

28:06
pass away

28:07
uh unexpected that doesn't lessen what

28:10
you've gone through

28:11
certainly and it's been it's been a

28:12
roller coaster ride what we're trying to

28:14
point out

28:15
is that if you look at the stats

28:18
the people that did pass a lot of more

28:20
in their 80s

28:21
you know a lot of them have kind of

28:22
surpassed life expectancy are getting

28:25
close to it and a lot of them had

28:26
pre-existing conditions but

28:28
i know about you tom this has been a an

28:31
interesting moment in time the whole

28:32
cove thing i know that

28:34
from a business standpoint we were

28:35
talking about it earlier that

28:37
business was was i mean we're fortunate

28:40
i mean we're blessed that business was

28:41
good during that time period but for a

28:43
lot of people

28:44
it was not yeah and i was really talking

28:46
about the spanish flu about people who

28:48
were going to die and

28:49
and i i wasn't really talking about kind

28:51
of necessarily but but

28:52
you know kovid did take out a a large

28:55
number of

28:56
older people and people with health

28:58
problems yeah and that those are facts

29:00
too but i mean

29:00
there were some young i know young

29:02
people that just died like that and so

29:04
we still don't

29:05
know all the details on that but uh

29:08
but i think you will see life expectancy

29:10
spike upwards now it has come down

29:12
because of cobit but i think

29:14
what dr milevsky said is that just like

29:16
after the spanish flu

29:17
then life expectancy spiked do you

29:20
expect

29:21
life expectancy tables from annuity

29:24
companies to

29:25
increase in the next five years like are

29:27
they going to readjust those what's your

29:29
opinion

29:30
absolutely okay absolutely i think as

29:32
people live longer

29:33
the payout rates are going to have to

29:35
come down in these on the newest

29:36
sale annuities that's why i think it's

29:38
so important to get them today i've told

29:40
people for the last 10 years i'm buying

29:42
as many annuities as i can

29:43
because these are the highest uh

29:45
mortality credits i'm likely to see for

29:47
the rest of my life

29:48
because as long as people keep living

29:50
longer and longer and longer they're

29:51
going to have to lower these payout

29:52
rates because they're going to have to

29:53
pay

29:54
it for longer and longer and so i would

29:56
say get those annuities as soon as you

29:57
can yeah

29:58
by the way as a reminder tom hegman

30:00
doesn't sell annuities

30:01
he's just an expert he didn't sell

30:03
anything he's just one of the best

30:04
speakers on the planet

30:06
his books sales are in the top one

30:08
percent

30:09
of all books sold i mean he sold that

30:11
many

30:12
um and again i i would encourage you to

30:14
go and order his books once called don't

30:17
worry

30:17
retire happy and the other is paychecks

30:20
and play checks

30:21
if you just type in those and we'll have

30:23
links to those on my site as well but i

30:25
encourage you if you're

30:26
if you're doing your research on

30:28
retirement which you should

30:30
then those books have to be on your

30:32
shelf

30:33
as part of the foundational learning

30:35
that

30:36
that you need to do and if you feel like

30:38
annuities might be

30:39
something you need to look at then i'll

30:41
send you my books uh my seven books on

30:43
annuities and the annuity types you just

30:45
go to my site the annuityman.com so

30:48
the interesting part about that that

30:50
comment about

30:51
life expectancy tables tom is

30:54
everybody's worried about

30:56
interest rates and interest should i buy

30:58
it now

30:59
are interest rates too low are they

31:00
going to move up and i've been saying

31:03
this just like utah

31:04
we might be the only two people on the

31:05
planet saying that i think

31:07
you there's as much risk on life

31:09
expectancy tables changes against you as

31:11
there are

31:12
interest rates yeah correct and and for

31:15
interest rates i look at the 30-year us

31:17
government bond because these are

31:18
the the bond market is associated you

31:20
don't look at the 10-year you look at

31:21
the 30. the 30 because

31:23
30 inflation hurts the 30-year bond the

31:26
most

31:26
and so like if we're going to have

31:27
inflation if we're going to have if

31:29
interest rates are going higher

31:31
you're going to see it first in the

31:32
30-year bond because those people are

31:34
buying something for 30 years

31:36
like would you want to lock in your

31:37
money right now for 1.9 i think is 1.96

31:41
today for 30 years that's what the bond

31:43
market the smartest people in the world

31:45
are putting their money for 30 years at

31:47
1.93

31:48
four percent interest and and so that's

31:51
telling me

31:52
that interest rates are not going up i

31:54
mean uh

31:55
if interest rates are going up and if

31:57
inflation was here that 30-year bond

31:59
would not be at one point nine

32:00
percent would be at four five six seven

32:02
eight nine percent because

32:03
those people have the biggest risk if

32:05
inflation hits

32:07
and interest rates spike all those

32:09
people who bought annuities that one

32:11
bought government bonds at one point

32:14
nine four percent

32:15
they're all going to lose a ton of money

32:17
yeah you can lose a ton of money in u.s

32:19
government bonds

32:20
if interest rates go up the value of

32:22
bonds goes down

32:23
but what that's telling me is the

32:24
smartest market in the world is loading

32:26
up on these bonds

32:27
at 1.9 some percent and they don't see

32:30
interest rates going up for over 30

32:32
years

32:32
so you know who am i to go against the

32:34
smartest market in the world i don't see

32:36
interest rates moving

32:37
much i'm not saying they could go up

32:39
they go up and down but i don't see

32:41
i i'm on the record saying the 10-year

32:43
government bond will go negative before

32:46
it ever hits four percent and you can

32:47
hold me to that

32:48
i agree with you the world is still

32:50
facing deflation not inflation and

32:52
people don't understand that they read

32:53
the papers and

32:54
you know we see prices going up but the

32:56
world is still facing deflation risk

32:58
well also tom you know we're in blue

33:00
water strategy here you know blue water

33:02
means we've never seen it before

33:04
so um the last time money was printed

33:07
like this was i think world war

33:08
ii and some people can say covets the

33:11
war

33:11
i agree with that but we've never seen

33:13
this and there's no motivation for the

33:15
government to raise interest rates on

33:17
themselves it'd be like me and

33:18
tom and i are raising our mortgage rate

33:20
if we had one on ourselves

33:21
so i agree with tom it does it could go

33:24
negative it could go to zero and if it

33:25
does they're just gonna print more money

33:27
so people that are waiting for that four

33:29
year ten year treasury

33:32
we might not see that tom in our

33:33
lifetime it's it's probably decades

33:36
before interest rates go up a lot

33:38
but again it's the life expectancy that

33:40
that really matters in the annuity

33:42
um step number six is you must have a

33:44
plan for long-term care

33:46
no retirement plan is complete without a

33:48
plan for long-term care it's the one

33:49
thing most people forget about they can

33:51
wipe out their entire life's work

33:53
and this is very personal to me because

33:55
both of my parents had

33:56
alzheimer's both of them went to

33:57
assisted living now i made them buy

34:00
long-term care insurance 18 years ago

34:01
they didn't want to

34:02
it's too expensive we'll never need it

34:04
it's an insurance company ripoff my dad

34:06
said all those words to me

34:07
i made them buy it well they were both

34:10
in assisted living

34:11
ten thousand dollars a month both my

34:13
parents were teachers up in minnesota

34:15
small towns

34:15
there were years my my mom rarely made

34:18
over ten thousand there were many years

34:20
my dad didn't make over ten thousand a

34:21
year

34:22
and ten thousand a month i can't imagine

34:25
the retirement

34:25
of those policies and for people who say

34:27
it's too expensive

34:29
here's what i have to say if you think

34:30
long-term care insurance is expensive

34:32
man you want to try not having it

34:35
for long-term care yeah and um i'm a

34:38
true believer in that i do not sell

34:40
long-term care

34:41
but i do refer people to the number one

34:43
long-term care expert in my opinion in

34:44
the country and we had a podcast with

34:46
them thomas aims

34:47
jack linenberg and and what i like about

34:49
the new long-term care

34:51
uh policies is a lot of them are asset

34:53
based meaning

34:54
that you're not throwing your money down

34:56
a rabbit hole another misconception

34:58
about long-term care is

34:59
well i just don't want to you know pay

35:01
and pay and pay and pay and pay in

35:03
and then i never use it well with the

35:04
newer policies

35:06
whether they're annuity based or life

35:08
insurance based however you want to look

35:10
at them

35:11
i mean i can point you to jack

35:12
lindenberg's site if you go to my site

35:14
at the annuityman.com

35:15
um i mean if you don't use it you're

35:18
gonna your your beneficiaries will get

35:20
the money back so things have

35:21
changed in the long-term care world now

35:24
obviously

35:25
you know annuity companies and and life

35:27
insurance companies and health insurance

35:28
they want to ensure young healthy people

35:31
but

35:32
there are some long-term care products

35:34
out there

35:35
and i think the biggest thing with you

35:37
mentioning that i appreciate you

35:38
having that is number six is people just

35:41
need to know

35:41
it's not what you think it is kind of

35:43
like when people say well i don't want

35:44
to buy an annuity because when i die

35:46
my insurance company keeps the money uh

35:49
no

35:49
i mean tom explained the details of that

35:51
and mortality credits and how that works

35:54
but the same thing applies with

35:55
long-term care you can get the coverage

35:57
yet control the asset any other thoughts

36:00
on that

36:01
yeah because um with the asset-based

36:03
long-term care the premiums are

36:04
guaranteed never to go up

36:05
that's nice uh it can be an emergency

36:08
fund most of them have full money back

36:09
guarantee so if you need your money out

36:10
you get your money out if you don't use

36:12
it and you die

36:13
it normally about doubles as a death

36:16
benefit tax-free to your heirs

36:17
and if you do need it it's almost triple

36:20
the bucket of money for

36:21
long-term care so it's it's an emergency

36:23
fund it's a legacy fund for your family

36:25
and it's a long-term care fund

36:27
uh and it all grows tax deferred and so

36:30
so those are

36:30
and the premiums are guaranteed never to

36:32
go up so those would be you know if

36:34
people are worried about their long-term

36:35
care insurance that might be a great

36:37
option

36:37
no i totally agree so what's number

36:39
seven we got seven yeah

36:40
seven is to use your home equity wisely

36:43
um you know for people

36:44
their house is normally one of their

36:46
largest assets or basically three ways

36:48
to do it you can

36:49
sell your home and downsize and move to

36:51
arizona that's where i live or florida

36:53
where you live

36:54
you know we can enjoy our lives um and

36:56
and if you're single you can capture the

36:58
250

36:59
000 tax-free capital gains if you're

37:01
married you can capture the 500 000

37:03
tax-free and capital gains that can help

37:06
you can take a loan against the equity

37:07
or you can do a reverse mortgage now

37:10
let me tell you where i come down on

37:11
reverse mortgages both in the book and

37:12
the tv show here's what i say

37:14
i am not for reverse mortgages but i'm

37:17
not against

37:18
reverse mortgages they are a tool that

37:19
can be used in retirement but my best

37:21
professional advice is this

37:22
number one be very very very careful

37:25
number two work with a reverse mortgage

37:28
expert but having said that

37:30
your listeners are going to read many

37:31
more positive articles written by very

37:33
respected sources like the american

37:35
college

37:36
dr wade fowle jamie hopkins

37:39
mary beth franklin don graves so there's

37:42
some great material out there just be

37:44
very careful

37:45
and work with a reverse mortgage expert

37:47
now another step that i don't have a

37:48
number to is

37:49
you should use life insurance to pass

37:52
wealth to your children and

37:53
grandchildren i always tell people

37:55
don't leave them any money you're

37:56
supposed to spend your money

37:58
the last check you ought to write out to

37:59
go to the undertaker and that baby had a

38:01
bounce okay

38:02
you're supposed to spend your money

38:04
leave them life insurance

38:05
and you can do that for pennies on the

38:07
dollar so let me use me as an example

38:08
we got four kids and one day we're

38:10
sitting around saying how much do we

38:11
leave the kids my wife said i don't know

38:13
what do you think i said well

38:14
if we bought a one million dollar second

38:16
to die life insurance policy name the

38:17
four kids beneficiary

38:18
when we're both gone they're going to

38:20
get a million dollars tax-free

38:22
um so let that's 250 000 a piece

38:24
tax-free plus whatever's left over let's

38:26
start there

38:27
so we bought a one million dollar second

38:28
and i life insurance policy named four

38:30
kids beneficiary

38:31
that policy is completely paid up do you

38:33
know what the total cost that million

38:34
dollar policy was

38:35
150 000 so now think about this for 15

38:39
cents on the dollar

38:40
we get to transfer a million dollars tax

38:41
free to our kids but here's the best

38:43
part

38:43
who gets to spend all the rest of money

38:45
we do

38:47
you're not getting any younger you don't

38:49
get to take any of it with you

38:51
what are you trying to be the richest

38:52
guy in the cemetery you're supposed to

38:54
spend your money

38:55
leave them life insurance for pennies on

38:57
the dollar and if they just follow these

38:59
simple steps

39:00
any person can have a happier and more

39:03
successful retirement than if they try

39:05
to just wing it and do it on their own

39:07
in the stock market and all that that's

39:08
not going to work because a sequence of

39:10
returns risk and all these other things

39:11
that

39:12
we could do a whole nother show on well

39:14
and that that's that's his book don't

39:16
worry retire happy i

39:17
you should get you should get that book

39:18
always tell people that

39:20
life insurance is the best return on

39:22
investment you'll never see

39:24
because you're dead i mean it it really

39:27
is

39:28
um and there's new i mean the other

39:30
thing that i like what you said

39:31
and i tell people this and i'm from the

39:33
deep south so

39:34
things come out a little a little uh

39:36
corny sometimes

39:38
but um you need to spend your money you

39:40
need to go live your life you need to

39:41
stop

39:42
waiting and procrastinating because as

39:44
they say in the south there's no u-hauls

39:46
behind hearses tom hagner

39:48
and um you know if you and if you see

39:50
one

39:51
take a picture and send it to me well

39:54
and

39:54
and it has to do a lot with psychonomics

39:56
so i speak about math science and

39:58
economics but i've been speaking more

39:59
about psychonauts because think about it

40:01
this way

40:01
you got something from your company

40:03
every two weeks your entire working

40:05
career was called a paycheck

40:06
now what did you do with that paycheck

40:08
you spent it you paid for your house

40:09
paid for your car

40:10
you went on trips you bought stuff you

40:11
got it spent a paycheck every single two

40:13
weeks for your entire working career you

40:15
never had a problem with that

40:16
but when was the last time you raided

40:18
your 401k and took 200 000

40:20
out of your ira and 401k oh no we can't

40:22
do that we got to save it we got to grow

40:24
we can protect it we can't touch it well

40:26
you do that for 45 years do you honestly

40:28
think on your 65th birthday you're going

40:29
to wake up and say

40:31
bye golly i'm going to blow my 401k

40:33
today you can't do it

40:34
people can't spend their assets they've

40:36
been psychonautically programmed

40:38
to never touch them and most people go

40:40
to their graves

40:41
never touching their assets and so

40:44
what the math and sciences is you should

40:46
take a portion for most people to be 20

40:48
to 40 percent their portfolio

40:50
and put that into guaranteed lifetime

40:52
income now you've got these paychecks

40:53
and play checks coming in

40:54
every single month you can spend them

40:56
spend them spend them spend them and and

40:58
they just as long as you're breathing

40:59
those checks never run out

41:01
and that's proven that you're going to

41:02
be happy in retirement and you're likely

41:04
going to live longer in retirement

41:06
these are not my opinions this is the

41:08
research of phds all around the world on

41:11
retirement

41:12
what's a play check tom tell people what

41:14
a i think they know but i need you to

41:16
drive a plate

41:17
people know what paychecks are what's a

41:18
play check a play check allows me to go

41:21
play golf whenever i want to i can go on

41:23
trips whenever i want to if we want to

41:25
go to the casino and put 100 bucks on

41:27
red and spin the wheel once or twice we

41:28
can do that

41:29
that's a play check it's things that we

41:32
want to do not that we see

41:34
a paycheck covers your mortgage your

41:36
cell phone bill

41:37
your car insurance you know your car

41:39
payment whatever whatever your bills are

41:41
that's the paycheck

41:42
the play check is all the fun stuff and

41:45
that's what you want you want to get to

41:46
a place

41:47
where you got these play checks coming

41:48
in is golly we really should spend this

41:50
money because

41:51
it just keeps coming we got to spend it

41:53
and that's when people are the happiest

41:55
they tend to live they you know if you

41:57
know older people their world starts

41:58
getting really small when my parents got

42:00
real

42:00
and if they can live for one more

42:02
paycheck oh i think i can hang on for

42:04
one more check

42:04
oh i think i feel good i'm going to hang

42:06
on for one more check and these checks

42:08
cause them to hang on for longer and

42:10
they live longer i mean again

42:11
these are not opinions you can read the

42:13
research i've read i put all the

42:15
research in my books my

42:16
my uh white papers you know i i don't

42:19
make this stuff up

42:20
these are this is math and science and

42:23
once again

42:23
it's tom hegna h-e-g-n-a so

42:27
t-o-m-h-e-g-n-a

42:28
dot com i would encourage you to go

42:30
there he has a lot of good stuff but

42:32
primarily you need to start with this

42:34
two books you know don't worry

42:35
retire happy and then pay checks and

42:38
play checks which tom was just talking

42:41
about

42:41
which you know is kind of the retirement

42:44
income bible out there for a lot of

42:46
not only retirees but also advisors

42:50
because tom speaks and educates and

42:52
trains

42:53
um if they're listening advisors and

42:56
agents as well

42:57
on how to position lifetime income

43:00
transfer risk annuities and

43:02
he's doing yeoman's work i mean he

43:04
should be

43:05
if there was a president of the annuity

43:07
industry

43:08
it should be tom tom hegna in my opinion

43:12
um when you when you're speaking out

43:14
there tom

43:17
when people walk up to you after the

43:18
event and you always have that because

43:20
i've been to a couple year events and

43:21
they

43:21
line up to talk with you what's the

43:23
common theme you're hearing from your

43:25
not only your your listeners but your

43:27
readers when they email you

43:29
what's what's making what's keeping them

43:30
up at night well i mean people are

43:32
worried about social security they're

43:33
worried about the stock market they're

43:34
worried about inflation

43:36
but i get a lot of people who say okay

43:37
tom what should i do with my money now i

43:39
don't even know this person from holy

43:41
ground they want me to tell them what to

43:42
do and i say well look

43:43
uh if you can answer me these two

43:44
questions i might be able to help you

43:46
what do you want your money to work for

43:48
you while you're alive right what do you

43:49
want it to do when you die

43:50
and it's just like you stand because you

43:52
do work with people if they answer

43:54
those two questions you can normally put

43:56
them on a really good path towards uh

43:58
towards happy retirement and one last

44:00
thing i'm not just

44:01
talking the talk i'm walking the walk so

44:03
i i did a trial retirement two summers

44:05
ago i wanted to see could i really get

44:07
off the road could i really do this

44:08
would i go would we drive each other

44:09
crazy would i get bored

44:11
i had the time of my life so i did it

44:13
again last year and now

44:14
i pretty much am in semi retirement my

44:17
my handicap is the lowest it's ever been

44:19
i won the club championship of my golf

44:21
course

44:21
i'm the oldest club champion of course

44:23
history see that to me now is more

44:24
important

44:25
than than doing what i've been doing for

44:26
the last 30 years and so i'm working on

44:28
my golf game working on pickleball i'm

44:29
working on tennis

44:30
and that's what i'm and we're having fun

44:32
we just went to san antonio on the

44:33
riverwalk for four days we're gonna

44:35
go to hawaii for two weeks we want to do

44:37
the panama canal course we got this

44:38
bucket list of stuff now that we want to

44:40
work off

44:41
because look i lost my dad two years ago

44:43
i lost my mom this year i lost my best

44:44
golfing buddy at age 56.

44:46
you start figuring this thing out this

44:48
is not a forever deal

44:50
and and and and i don't want to be the

44:51
richest guy in the cemetery and i'm not

44:53
going to be

44:53
all right i'm going to live my life and

44:55
i'm not worrying and i'm retiring and

44:57
i'm happy and i said

44:58
what could it be if the guy who writes

45:00
the book don't worry retire happy

45:01
doesn't retire and he's not happy that

45:03
wouldn't be any good

45:04
so i am not just talking the talk i'm

45:06
walking the walk

45:07
i'm not sure how you can improve upon

45:10
those two books but are you

45:12
are you still i know you're still

45:13
speaking but are you still writing

45:15
yeah and i've got one that i'm it's just

45:17
it's hard you know because i got so much

45:19
stuff going on but

45:19
but this one is for millennials it's how

45:21
to be become a millionaire

45:23
you know who wants to be a millionaire

45:24
that's basically it and i and i show

45:26
millennials

45:27
how simple it is in america to become a

45:30
millionaire today

45:30
i believe most every american could do

45:33
it if they

45:34
if they really wanted to they have to be

45:35
disciplined you know you're not going to

45:37
do it in dogecoin okay and i hate to

45:38
sell you

45:39
amc and gmail probably not going to do

45:41
it for you but i can show people how to

45:43
become a millionaire

45:44
the right way and it's about making more

45:46
money it's about spending less money and

45:48
investing into appreciating assets so

45:49
that's going to be the theme of that

45:51
book it's going to be for millennials

45:53
on how to become wealthy in america

45:55
today

45:56
next year we're looking for that we'll

45:59
see i mean i i put a goal to be have it

46:01
done this summer and i

46:02
i i've got about 27 pages done so i mean

46:05
i got a lot of work to do

46:06
no i understand great story about tom

46:08
the last time i i saw him i used to be

46:10
this huge coffee drinker

46:11
so we met for breakfast we're both

46:13
traveling i said hey man i'm in town

46:14
let's let's get together and

46:16
so we sat down and tom he you know he's

46:19
a professional traveler i mean

46:21
the dude just he knows what he's doing

46:23
so he pulls out these teabags and

46:25
i'm like what are you doing he's like no

46:27
this is my kind of tea i love this tea

46:28
and i bring it with me

46:30
since that time and you don't know this

46:31
i i didn't tell you this before we we

46:33
got

46:34
on the podcast i now drink tea and i i

46:37
credit tom hagner with that because

46:39
i'm like well let me try that because

46:41
you know the coffee kind of eats your

46:42
stomach up a little bit

46:43
and ever since then and that was years

46:45
ago um

46:46
i'm like this tea fanatic um which makes

46:50
sense if you're from the south but i'm

46:51
talking about warm tea but

46:52
that's that you know tom hagan is not

46:54
only giving me nuggets of wisdom through

46:56
his life he gave me you know the

46:57
the habit of uh the daily warm tea

47:01
i don't know what's this what was the

47:03
well it was this cinnamon tea it's it's

47:05
bigelow cinnamon tea i love it it's

47:07
called cinnamon stick

47:08
i take it everywhere i go i'm it's not

47:10
because i'm cheap and i don't want to

47:11
pay you you know 30 cents for a tea bag

47:13
that's not it

47:14
it's my favorite tea i bring it on the

47:15
airplane i bring it to my hotels and

47:17
bring it everywhere

47:18
because that's my tea and then i drink

47:20
iced tea the rest of the day but in the

47:22
morning i drink the hot tea so

47:24
anybody listening out here from bigelow

47:28
you might want to send that case of of

47:31
tea to tom egna go to tomagna.com

47:35
um what do you think of these markets

47:38
we're getting

47:38
closing up a little bit here but i got a

47:40
couple more questions for you

47:42
you know we've both seen it all we've

47:44
both

47:45
been through market cycles you know i

47:47
started you know a long time ago three

47:49
decades ago you've been in a long time

47:51
what do you think of these markets here

47:52
and what do you tell the retirees

47:55
um you know i i know you're saying put

47:58
i agree with you put that retirement

48:00
income floor in place but what are you

48:03
saying

48:04
about markets here with your experience

48:06
well

48:07
i mean there's just so much funny money

48:09
that's been printed that's worked its

48:10
way in the market so the market is

48:12
is significantly overvalued where it

48:15
should be

48:15
i would tell people i'm not anti-stock

48:17
market at all i have

48:19
you know i have a chunk of money in the

48:21
market as well

48:22
but i have learned this i am better

48:25
sticking with

48:26
quality stocks amazon apple facebook

48:30
google you know um you know maybe even

48:32
boeing or something but stick with the

48:34
top

48:35
rated stocks i think you're going to be

48:37
better than if you're going after all

48:38
this

48:39
you know amc and gme and dogecoin and

48:42
all that stuff and if you want to

48:44
speculate and all that stuff is

48:45
speculating i'm not against speculating

48:47
but speculating should be somewhere

48:49
between one and three percent of your

48:50
portfolio not fifty percent not thirty

48:52
percent

48:53
one to three percent i put one percent

48:54
of my portfolio in bitcoin i'm very

48:56
comfortable with that

48:57
uh because if i lose one percent it's

48:58
not gonna affect my life but if it goes

49:00
to a million dollars bitcoin it'll sure

49:01
help me so

49:02
so that's why i i do that but um just

49:05
i'd be very cautious about this market i

49:07
mean because when it goes

49:09
it's gonna go and as we saw last time

49:12
everything went down

49:13
stocks went down bonds went down gold

49:15
went down bitcoin went everything went

49:17
down there's no safe haven except for

49:20
fixed annuities basically there was not

49:22
much of a safe haven i mean when

49:23
everything goes down it goes down

49:25
and it can be ugly and you don't want to

49:27
lose money right before

49:28
or right after retirement because that's

49:30
the riskiest time of your investing life

49:32
and i tell people all the time having

49:35
come from that

49:36
um side of the ledger where i worked

49:37
with dean witter and morgan stanley

49:39
paine webber and ubs

49:41
at the time of this taping over 85

49:43
percent of all trades are non-human

49:46
algorithmic black box high velocity so

49:48
it's a different market

49:50
it's an institutional market it's a 24 7

49:52
365 market

49:54
unfortunately you know us peons don't

49:56
get to do the 24 7 365.

49:58
so you know i would be i would be very

50:01
careful i think that's sage advice

50:03
um two last questions the first one it

50:06
is about blockchain and blockchain for

50:09
the people out there is the technology

50:11
and the underlying foundation

50:13
of the bitcoins and the cryptos and all

50:15
that stuff but block changes

50:16
blockchain technology is more than just

50:19
cryptocurrency

50:20
do you see blockchain affecting the

50:23
annuity and life insurance industry in a

50:25
positive way

50:26
yes or no i i think so because it allows

50:30
uh transactions to happen with

50:32
transparency yet anonymous which is

50:35
which is really weird that that

50:38
everybody can see what's going on

50:40
and there's a number or code of what's

50:41
going on but you can't see who just did

50:43
that

50:43
and so i think um you know ever almost

50:47
every industry has been using blockchain

50:50
to help their supply chains to help

50:52
their inventory

50:54
uh maybe annuity issuers can become more

50:56
efficient

50:57
maybe they can mitigate some risks that

51:00
we don't even talk about day to day that

51:01
are actuarial type risks

51:03
so i do think that over time it it will

51:06
be a positive one last thing um

51:09
i mean closing comment from you just

51:12
about

51:13
uh retirement and what we covered here

51:16
just

51:16
sage wisdom from tom hegna

51:20
well retirement people think it's about

51:22
real estate or it's about the stock

51:23
market or it's about

51:24
how much money is my 401k that's now

51:26
what it's about it's about

51:27
how much guaranteed lifetime income do

51:29
you have and have you taken the

51:31
appropriate risks

51:32
off the table have you mitigated

51:33
long-term care risk have you mitigated

51:35
inflation risk have you mitigated

51:36
sequence of returns risk market risk

51:39
uh inflation deflation what about taxes

51:41
and and

51:42
most people who do it themselves they

51:44
have blind spots

51:45
oh yeah i had a good quarter oh man i

51:47
made 30 last year

51:49
okay yeah what happens when the market

51:50
crashes 50 and then you determine that

51:52
you need long-term care and oh by the

51:54
way they just doubled your taxes

51:56
and now inflation's at five percent well

51:58
then what you know and so

51:59
i just think too many people have blind

52:01
spots which is why they need to stand

52:03
the annuity man

52:04
to help them out and and show them what

52:06
the blind spots are and then they can

52:07
choose which ones they want to protect

52:09
against

52:11
ladies and gentlemen that rock star you

52:12
just heard is named tom hegna go

52:14
to his site dot tomhegna.com we will

52:17
have him on again i want to dig into the

52:19
mortality credits

52:21
um you know topic as well but i really

52:23
appreciate you being here tom

52:26
and i appreciate everybody that's

52:28
watching on the phone with annuities

52:29
youtube channel and all

52:30
listening on all the major podcast

52:33
platforms

52:34
we will see you next week on fun

52:37
with annuities

52:43
thanks for listening to fun with

52:44
annuities please hit the subscribe

52:46
button and make sure to go to my site

52:49
at the annuityman.com where you can run

52:51
your own

52:52
spea dia and culat quotes and see a live

52:55
feed of the best

52:56
mica fix rates in the country and even

52:59
get

52:59
indexed and income rider quotes as well

53:02
you can also

53:03
sign up for my six annuity owner's

53:05
manual books and i'll ship them for free

53:07
and under no

53:08
obligation i also encourage you to

53:10
schedule a one-on-one call with me

53:13
stand the annuity man so we can have a

53:15
full discussion

53:16
of your specific situation it will be

53:19
the best

53:19
brutally factual and truthful advice you

53:22
will ever get

53:23
and that's one guarantee you should

53:25
definitely take advantage of

53:27
so join me next time for the number one

53:29
annuity podcast

53:30
on the planet fun with annuities

53:47
you