Tom Hegna: Don't Worry, Retire Happy! (TAM Classic)

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[Music]

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welcome to fund with annuities where

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every single week I welcome a celebrity

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guest expert that can help you maximize

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chapter 2 of your life listen learn

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laugh and love every minute of the most

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unique Financial podcast on the planet

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let's get to

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[Music]

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it welcome to fun with anties I'm your

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host Stan the Anu man America's anity

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agent licens in all 50 states I'm so

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glad you joined us whether you're

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listening on all major podcast platforms

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are on the fun with annuities YouTube

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channel where you can see me and our

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special guest today you can see our

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facial expressions and how we interact

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either way I'm glad you joined us let me

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tell you a little bit about our guest

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today I'm so happy he's with us his name

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is Tom hegna um he's an author a speaker

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an economist and an unbelievably

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incredible um incredibly popular speaker

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uh with the industry retirement industry

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annuity industry lifetime income that's

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his those are the topics that's his

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that's where he is excels um just like

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stany annuity man is the Undisputed

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annuity expert and America's annuity

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agent Tom hegna is known as the

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retirement income expert um he's a

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former senior executive officer at New

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York Life and also a retired liutenant

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colonel from the Army so he he's a tough

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dude um here's an unbelievable fact

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about Tom he's given over

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5,000 seminars I'm gonna say that again

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5,000 and is just so passionate about

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helping Baby Boomers and seniors retire

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in what he calls the optimal way and

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he's going to describe that Tom

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specializes in in creating very simple

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and Powerful Retirement Solutions that's

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based on math and science not some

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opinion or sales pitch that's what I

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like about him he's he's all about math

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and annuities are all about math and

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we're going to talk about that um his

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skill I think personally is solving

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complex Financial Solutions um and

2:13
problems using very easy to understand

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language and words and stories that you

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can understand um he has condensed a

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large large chunk of his huge knowledge

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base into five books um and let me tell

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you a bit about them you should go on on

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Amazon paychecks and playchecks

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Retirement Solutions for Life published

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in both US and Canada uh don't worry

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retire happy seven steps to retirement

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security both published in US and Canada

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we're going to talk about those seven

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steps to retirement security and he also

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did a book on retirement income Masters

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secrets of the pros you might have seen

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Tom uh on public television where he had

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a special on retirement income that was

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viewed um in over 80 million households

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in the United States and Canada without

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further Ado welcome to the fun with

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annuities podcast Tom hegna welcome Tom

3:09
thank you Stan I didn't know my bio was

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gonna take up the whole podcast you I

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didn't even cover it all Tom you know

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that I was just I was just synopsize so

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hey let's Jump Right In um let's get to

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the seven steps of retirement I know you

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covered this in your book and and once

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again for everybody out there if you go

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to my site the annuity man.com we're

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going to have a page for Tom you can get

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all of it stuff and go to his site if

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you want to book him as a speaker you

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can do that as well but let's cover

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those seven steps to retirement Tom yeah

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so you know step number one is you got

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to have a plan I mean how are you going

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to get anywhere if you don't have a road

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map or a plan of how to get there and I

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say you've got to work with a financial

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professional retirement is not a

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do-it-yourself project I mean think

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about it you don't do your own dental

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work in your garage with your drill set

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and I don't think people ought to be

3:54
doing their own retirement planning

3:56
either so that that's step

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one well and that's in a do-it-yourself

4:02
World Tom where everyone is trading

4:05
Bitcoin and trading cryptocurrency and

4:07
you know it's easy in rageing bull

4:09
market market to throw darts at things

4:10
and things go up me and you have been

4:12
around long enough to as I say we

4:14
probably have cowboy boots older than

4:16
most um agents and advisers out there

4:19
selling either annuities or financial

4:21
products in general but um I agree with

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you on you need a professional it's

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tough to find someone who's going to

4:29
shot it straight and tell you the truth

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but you need to search and uh interview

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people as well what's number two number

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two is to maximize your Social Security

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benefits see most people uh the largest

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retirement asset they have is Social

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Security and yet they're not studying it

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they're not finding out the optimal age

4:45
to to start it they they listen their

4:47
buddies down to the coffee shop to tell

4:48
them to take it at age 62 you know and

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that's for most people that's not the

4:53
right age for some people it is because

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you know if if um if they have short

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life expectancies for both the husband

4:58
and wife if um they have minor children

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in the house I mean there are reasons

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why you might want to take it early what

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I say is in general the bread winner

5:06
should delay so so if you have a husband

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and a wife uh let's say the husband made

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more money his career than the wife the

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wife can take her social security early

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I don't have a problem with that but the

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husband should wait or whoever made the

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most money should wait because that

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check covers both lives because when he

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dies she's going to get his if he took

5:22
his early he locked her into a lower

5:24
Social Security survivor benefit so so

5:27
just look there's Social Security

5:29
calculat out there another reason why

5:31
you should sit down with a financial

5:32
professional and just have them run that

5:33
calculator it will show you the optimal

5:36
Age based on your situation that you

5:38
should draw Social Security and I know

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Tom and I both laugh when people say I

5:43
hate all annuities and we're like wait a

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minute you already own one it's called

5:46
Social Security and if you own a pension

5:48
you already own one so it's you know

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those are annuities and you know what's

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so funny is people love their social

5:53
security and they love their pensions

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and and the people who own annuities

5:56
love their annuities you don't ever find

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people complaining that they have these

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annuities they they love them those

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checks come every single month as long

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as they're breathing those checks keep

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coming and uh you know all the all the

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math and science the phds and if you

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read Dr Michael fer Dr Wade foul Dr

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maamari Dr MOS mevki Dr David bab I mean

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it the list is Robert C meron Nobel

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Prize winner they all say You must

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annuitize a portion of your portfolio

6:23
nobody's saying put all your money in

6:25
annuities and remember Stan I don't sell

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any annuities I don't get compensated on

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the sale of any

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I don't sell any of them I own 11

6:31
annuities okay I don't sell them I don't

6:33
really care if people buy them or not if

6:35
they don't want to but the math and

6:37
science says that they should and and

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that's what I that's what I write about

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and I agree I agree with that and people

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always you know ask me with lifetime

6:45
income annuities um they asked me a

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question they never ask with their

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pension and social security which is

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what's the return on investment stand

6:52
the annuity man and I'm like well if you

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tell me when you're going to die I can

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give it to you to the penny up until

6:56
that point it's a pure transfer risk but

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I do think in Raging Bull Market where

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there's fear of missing out fomo and

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people are always un unfortunately and

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mistakenly trying to time annuity

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purchases and once again there's many

7:09
types of annuities but when we're

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talking about lifetime income the

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primary pricing mechanism is your life

7:14
expectancy interest rates do play a

7:15
minor role that people are hung up on

7:17
interest rates definitely can you can

7:20
you speak to that a little bit more

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before we get to number three on just

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the interest rate conundrum we're in

7:26
right now yeah I mean and and I I posted

7:28
a lot on it because I'm in economists

7:29
and everybody saying oh inflation

7:30
inflation you know Lumber price up

7:32
copper price up every oil price up gas

7:34
price up everything's going up and yet

7:36
that the 30-year treasury is still under

7:37
2% I mean that's unbelievable the

7:39
30-year Government Bond is under 2% when

7:41
we're when we're filming this and so

7:43
it's kind of a conundrum the bond market

7:45
does not see inflation you and I see it

7:47
we see it every day but I'm telling you

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the bond market says it's temporary and

7:51
and they don't see it as a long-term

7:53
thing and the number one thing as you

7:54
said is longevity and that also plays a

7:56
role in Social Security see what people

7:58
don't realize

7:59
is that right now today the life

8:01
expectancy of a 65y old couple is aged

8:04
93 50% of all 65 year old couples will

8:07
have somebody live to be 93 25% of those

8:09
65 year old couples will have somebody

8:11
live to be 97 and when you plug that

8:13
type of longevity into Social Security

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into a calculator or into your annuity

8:17
calculations you're going to find out

8:19
that it's very very very important to

8:22
have something that will pay you as long

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as you are living as long as you are

8:26
breathing stocks can't do that bonds

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can't do that real estate can't do that

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Bitcoin cannot do that but an annuity

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can do that right and that's the

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Monopoly that annuities have you know

8:36
the lifetime income type annuities have

8:38
that no other product like Tom said can

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match that's not a sales pitch that's a

8:43
fact that's just a fact so you know

8:46
lifetime income with 10,000 Baby Boomers

8:49
hitting age 65 every single day Tom and

8:51
I both agree that's a that's called a

8:53
that's called a demographic tital wave

8:55
of people that are looking for

8:58
guarantees I think the hurdle with

9:00
annuities in the annuity industry has

9:01
done a poor job um explaining this the

9:06
only person out there that is

9:07
consistently doing this right from a

9:09
from a presentation standpoint on a

9:11
national level um is Tom hegna he talks

9:14
about how these products work work

9:17
expectations buying the contractual

9:19
guarantees of the policy which is why we

9:21
have them on because you know this the

9:23
saying of this podcast is is living the

9:26
reality not the dream and the reality is

9:28
the contra guarantees of the policy so

9:31
what's number three are we at number

9:33
three yet on the three is to consider a

9:35
hybrid retirement too many people are

9:36
trying to retired too early they haven't

9:38
saved enough money if they could just

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work a couple extra years even part-time

9:41
doing something they love to do it can

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significantly help them uh retire more

9:45
successfully because they can have

9:46
increased earnings increased savings

9:48
increased Social Security benefits and

9:50
you can keep them from tapping into that

9:52
portfolio for a couple years that's a

9:54
tough pill to swallow for the for the

9:57
person that is going going toward

9:59
retirement but those are tough

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conversations that I have every single

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day for people that contact me you can

10:05
go to my site at the annuity man.com and

10:06
book a call and I'll be brutally honest

10:08
if if you say there's a lot of times

10:10
that I I get a person I say okay I ask

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two questions what do you want the money

10:14
to contractually do and then when do you

10:16
want those contractual guarantees to

10:17
start and if they say income and I need

10:20
it to start now or two years from now

10:22
whatever then I say well how much income

10:24
and sometimes like you said Tom they

10:26
don't have enough money to contractually

10:28
pull that off unfortunately that's when

10:30
the the charlatans and the grifter you

10:33
know salespeople step in and go well

10:34
this one will do that no you buy it for

10:37
the contractual guarantee and if the

10:38
contractual guarantee doesn't hit it hit

10:40
that number for you then Tom's right you

10:42
might want to either have that side

10:44
hustle or work a little bit longer but

10:47
that's you know those are those are

10:49
retirement realities Tom yeah it it

10:51
doesn't have to be like terrible work

10:53
like I I'm doing the hybrid retirement

10:55
I'm still doing this but I'm not doing

10:57
it like I was before I spent 200 days a

10:58
year on the road before I'm not doing

11:00
that I'll do it virtual I'm not going to

11:02
be I'm not going to be on the road 200

11:03
days now my golf game and my my tennis

11:06
uh appointments and my my R my pickle

11:08
ball appointments they're more important

11:09
to me now but I still do some work on

11:11
the side and it brings in revenue and

11:12
that it it helps and so you know even

11:15
even somebody who likes to play golf

11:16
they could be a marshall on a golf

11:18
course two days a week guess what they

11:20
get to play for free the other five days

11:21
a week so I mean it can reduce their

11:22
expenses so just be creative in doing

11:25
something that can help your retirement

11:27
and by the way Thomas paychecks and

11:30
playchecks which I would advise you to

11:32
go to Amazon and buy uh immediately

11:36
because it's a great great book I mean

11:38
that's when I first kind of found out

11:39
about Tom a while back and we've been

11:42
friends ever since just because he just

11:43
I mean he talks about lifestyle and him

11:46
and I we we both believe that annuities

11:48
can provide lifetime income annuities

11:50
can provide lifestyle but as he said you

11:53
know everything you have doesn't need to

11:55
be in annuities and certainly the

11:56
annuity industry frowns upon that right

11:59
um as well it just needs to be a tool

12:01
and I agree with the the um comment Tom

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May that there's a lot of smart people

12:06
you know the guys that have the the

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ascots on and the and the smoking

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jackets with the elbows leather elbow

12:12
protectors those smart guys are saying

12:14
hey you might want a lifetime income Tom

12:16
and I you know he refers to it as is

12:19
kind of like I do as the income floor

12:21
it's the income floor that's going to

12:23
hit your bank account every single month

12:25
um and by the way if you have that in

12:27
place contractually you're better

12:29
investor I think Tom would agree with

12:31
that yeah I mean I even put 1% of my

12:33
portfolio into Bitcoin and I put that on

12:35
social media people said oh his account

12:37
must be hacked he would never talk about

12:39
Bitcoin he's all about guarantees and I

12:40
said yeah but it's because I have so

12:41
much of my money guaranteed I can afford

12:43
to take 1% that's all I've ever said 1%

12:46
of my portfolio and do some very risky

12:49
stuff with it guess what it's done very

12:50
well I bought Bitcoin back when it's

12:52
$33,000 of Bitcoin okay and and I just

12:54
put 1% of my portfolio in there and

12:56
that's grown up but but because I have

12:58
so much of my my income guaranteed I'm

13:00
able to take more risk with some of my

13:02
other money if I want to and I think I

13:05
think people just need to remember

13:07
that's how the lifetime income annuity

13:09
transfer of risk that helps that helps

13:12
as people say well how's it going to

13:14
make me a better investor because you

13:15
know that you don't have to do the 4 per

13:17
rule of taking 4% out of your portfolio

13:19
disrupting it you already have that in

13:21
place what's number four four is you got

13:23
to have a plan to protect yourself

13:24
against inflation and and you know for

13:26
the last 30 years inflation has been

13:28
dead and all of a sudden it's in the

13:29
news all the time but even if we're in a

13:31
deflationary environment there's stuff

13:33
that goes up I mean college education's

13:34
going up nursing home pric are going up

13:37
uh healthc care is going up so even in a

13:39
deflationary economy there's pockets of

13:41
inflation and that's why you can't just

13:43
have income for the rest of your life

13:44
you really want to figure out how you're

13:45
going to have increasing income for the

13:47
rest of your life and there's really

13:48
three ways to do it number one you can

13:50
buy an annuity that automatically goes

13:52
up every single year by three or four or

13:54
five percent you can pick that UPF front

13:56
or you can um cover your basic living

13:59
expenses and retirement with guaranteed

14:00
lifetime income then invest the rest of

14:02
your money in stocks and real estate and

14:03
other things that go up in times of

14:05
inflation so if we have inflation

14:06
there's going to be more money to take

14:07
out more money or you can do what I've

14:09
done I bought guaranteed lifetime income

14:11
that kicks in when I turn age 60 but I

14:13
bought more that kicks in when I turn AG

14:15
62 I bought more the kicks in when I

14:17
turn AG 65 I bought more the kicks in

14:19
when I turn AG 70 so I am guaranteed

14:21
that increasing income for the rest of

14:23
my life and your listeners can do that

14:25
as well of course and that's what I call

14:27
lattering income yeah um and you can lad

14:30
lifetime income you can lad the purchase

14:32
date you can lad the income start date

14:34
like uh like Tom's doing and that is

14:37
truly the best way to address inflation

14:40
using lifetime income annuities Tom

14:42
mentioned earlier the number one was you

14:44
can buy annuities that increase and that

14:48
increase the income whether it's a cost

14:50
of living adjustment or an index or

14:52
whatever that sounds really good on face

14:54
but I want to remind our viewers and

14:55
listeners that annuity companies have

14:57
the big buildings for a reason and they

14:58
have the logos on the plane for the

14:59
reason and they and they are sponsoring

15:01
sports stadiums for a reason and that

15:03
reason is they don't give anything away

15:05
so anytime that you are looking at an

15:08
annuity type regardless of the lifetime

15:10
income type of

15:11
annuity if you're going to attach an

15:13
increase to that income stream the

15:16
annuity company is going to

15:17
significantly lower that income amount

15:20
to make up for that increase so they're

15:22
not just going to give it away yes they

15:24
give it away with Social Security

15:26
because politicians don't care they're

15:27
just trying to get get get votes but

15:30
people need to understand that yes you

15:32
can have increasing um income uh levels

15:37
every year with annuities but those

15:39
companies don't give it away I'm not

15:41
saying don't buy it the way that we use

15:43
that Tom is you know if people are

15:44
buying um multiple annuities maybe one

15:47
has the inflation increase and one does

15:50
not um but again it all comes down to

15:52
contractual guarantees and if you're

15:54
interested in looking at inflation

15:57
versus non-inflation say immediate

15:59
annuities you know go to my site the

16:01
annuity man.com schedule call with me

16:02
I'll run them real time and send it to

16:04
you and you can see how they the annuity

16:06
company prices that but totally agree

16:10
with um with what Tom the the three

16:12
things Tom said which is buying annuity

16:14
for and that has increased to inflation

16:16
we just explained that and then the

16:17
third one was you know have income start

16:19
at different intervals which I think is

16:21
good the second one I think is very very

16:24
important which is put in the income

16:26
floor knowing that there will be

16:28
inflation

16:29
and then investing the rest and then

16:32
when inflation hits at that point in

16:33
time you can always do what's what I

16:35
call a reverse engineer quote to solve

16:37
for that inflation amount using a single

16:39
premium immediate annuity do you agree

16:41
with that absolutely yeah but we just

16:44
want them to have increasing income over

16:46
time because inflation is like a virus

16:48
that gets worse every year and then step

16:50
number five is you need to secure more

16:52
guaranteed lifetime income and that is a

16:54
key part of retirement and it's key for

16:56
a number of reasons number one the

16:57
number one reason risk and retirement is

16:59
longevity I mean there's a lot of risks

17:00
there's Market risk there's withdrawal

17:02
rate risk there's sequence of returns

17:03
risk you know it might have inflation

17:05
might have deflation might raise your

17:06
taxes you might die you might need

17:08
long-term care there's a lot of risks in

17:09
retirement but the number one risk is

17:11
longevity that you live a long time and

17:13
the annuity is the only product in the

17:15
world you can buy that can mitigate that

17:17
longevity risk because as long as you're

17:19
breathing or you and your spouse are

17:20
breathing if you have a joint annuity

17:22
those checks are coming guaranteed for

17:24
the rest of your lives and and that is

17:26
so important and then there's two

17:27
additional Reon reasons why it's

17:29
important number one you're going to be

17:30
happier you know the Wall Street Journal

17:32
The Wall Street Journal said the secret

17:33
to a happy retirement is Friends

17:36
neighbors and a fixed annuity and and

17:38
what they found is that the happiest

17:40
people in retirement were those people

17:41
who surrounded by their friends

17:42
surrounded by their families who had

17:43
guaranteed paychecks every single month

17:46
you know I I would encourage your

17:47
listeners who are your fa who are your

17:49
happiest friends in retirement I bet

17:51
it's retired military retired government

17:52
retired teachers retired firefighters is

17:55
people with pensions so happiness in

17:57
retirement is tied Almost 100% to

18:00
guaranteed lifetime income not assets

18:02
who are the most miserable people you

18:03
know they're loaded but they're losing

18:05
money in this and they're losing money

18:06
in this and they're losing money in this

18:08
and these people are miserable assets

18:10
make people miserable in retirement

18:12
guaranteed lifetime income makes people

18:14
happy and then the second thing is the

18:16
research now shows people of guaranteed

18:17
income tend to live longer I'm not

18:20
making this stuff up you can look it up

18:21
on free economics the journal for

18:23
financial service professionals had an

18:25
entire article on uh you know longevity

18:27
insurance does long do do do um does

18:31
longe does longevity Insurance increase

18:33
longevity and it's all about annuities

18:35
and what they found is that the average

18:36
65y old male will live about 20% longer

18:40
if they have an annuity versus if they

18:42
don't now it doesn't mean that buying an

18:44
annuity automatically makes you live

18:45
longer I mean maybe maybe people who

18:47
have bad you know life expectancy don't

18:49
buy annuities but having that guaranteed

18:52
income has been proven through through

18:54
centuries because remember annuities

18:56
have been around for thousands of years

18:57
the Roman Empire issued annuities

19:00
because running out of money has been

19:01
the number one concern of people ever

19:03
since there's been people and there's

19:04
been money it's not a new concern but

19:06
you're likely to be happier and you're

19:08
likely to live longer if you have

19:09
guaranteed lifetime income Tom what's

19:11
the what's your site address Tom hea.com

19:14
very Tom hea.com that's t m h g na y.com

19:20
all one word I would encourage you to go

19:22
there there's a lot of good stuff there

19:24
um for you to take in and if you're

19:26
looking for a good speaker for your

19:28
organization um I recommend Tom hegna

19:31
he's fantastic in fact I I kitted Tom

19:33
the last time we were together I was

19:34
like we need to go on like a world tour

19:36
like a US tour and do a co-headlining

19:39
because you know my my speaking style is

19:41
a little bit more abrasive than Tom's

19:43
but it's still factual but I think we'

19:44
knock the cover off the ball definitely

19:46
and just the problem is we're both just

19:48
getting older one of the things that you

19:49
mentioned in there was just the

19:51
guaranteed income but I wanted to make

19:53
sure that our listeners and our viewers

19:55
understand one thing one of the biggest

19:57
misconcep ceptions about lifetime income

20:00
type annuities and that would be

20:02
immediate annuities deferred income

20:03
annuities qualified longevity annuity

20:05
contracts and income writers of which

20:08
I've written books on all of those you

20:09
can go to my site at the anity man.com

20:10
and I'll send them to you but what

20:12
people need to understand is that if

20:15
your Lear jet hits the mountain if you

20:17
die that's what Tom that's how I call

20:19
people dying if your rented Learjet hits

20:21
the mountain you can structure your

20:23
annuity so that 100% of any unused money

20:28
will go to your family or listed

20:30
beneficiaries or charity of choice and

20:32
the evil annuity company doesn't keep a

20:34
penny I find one of the biggest

20:36
misconceptions Tom is that people well I

20:39
never buy an annuity because I don't

20:41
want the annuity company to keep the

20:42
money that's one of about 40 ways to

20:45
structure a lifetime income an annuity

20:48
what you need to tell a professional

20:50
hopefully me is that this is what I

20:52
wanted to do you know this is how I want

20:54
to structure it um you can have money

20:57
coming back cash ref fund when you die

20:58
to the beneficiaries or you could

21:00
structure it as a payment form to the

21:03
beneficiaries quick story my two

21:04
daughters are one's a dancer one's a

21:06
riter which means they'll never make any

21:07
money but I want to make sure that with

21:09
my annuities that they're not going to

21:10
get the lump sum because they'll

21:12
helicopter in to the funeral and then

21:14
drive away in a Ferrari at least I want

21:15
them making payments you can structure

21:17
it and handcuff those beneficiaries for

21:20
any unused money but the other thing

21:22
before we get to the next point is that

21:25
remember when the account is drawn down

21:27
to zero the annuity company is still on

21:29
the hook to pay and I that's truly the

21:33
value proposition of a lifetime income

21:35
stream annuity and with covid did not

21:38
disrupt life expectancy as people

21:41
thought it really did not if you look at

21:42
the stats and I do think that as a

21:45
country and as a as a as a world we're

21:47
going to have better medical care

21:49
because of this I actually think life

21:50
expectancy tables will go up do you well

21:53
yeah and and and Mos mevki Dr malvy's

21:56
done a lot of work on this and he said

21:57
like I don't remember was 19155 or 1920

22:00
whenever that last Spanish Flu was life

22:02
expectancy went down for like a year and

22:04
then it spiked up because all it really

22:07
did was people who were gonna die anyway

22:10
many of them died a year earlier and

22:13
then everybody else ended up living

22:15
longer and so so I think we're going to

22:16
see that life expectancy is going to

22:18
spike again um but I just want to say

22:20
one thing on on this this guaranteed

22:22
lifetime income it's those mortality

22:23
credits and we could literally do an

22:25
entire show on mortality credits that

22:27
that guarantees you never run out of

22:28
money but even when people pick life

22:30
only because that's what you were

22:31
talking about a life only where people

22:33
think the insurance company keeps the

22:35
money the insurance company does not

22:37
keep the money that money goes to the

22:39
other people that pick life only and

22:40
live that's why the payout rate is

22:42
higher but like people don't want that

22:44
to happen you pick life with cash refund

22:46
I've even been shown doing joint life

22:48
with a grandpa and his five-year-old

22:50
granddaughter now he gets a check for

22:51
the rest of his life when he dies she

22:53
gets a check for the rest of her life

22:54
that thing can pay for a hundred years

22:56
that's what people don't understand

22:57
about this this guaranteed lifetime

22:58
income it's really an incredible product

23:00
that strategy uh I deemed and I've

23:03
written about it I call it the Legacy

23:05
income monster um because I I had a

23:08
recent uh 82y old great-grandfather did

23:11
a joint lifetime income with a

23:13
5-year-old and same same thing uh if you

23:16
really want

23:17
Legacy um and have a have a monthly

23:20
check hit the bank account of your loved

23:23
ones you'll be dead and gone and they'll

23:25
be looking lovingly on you bringing

23:28
flowers to your grave and they'll always

23:30
remember you I used to I used to hand

23:31
out a piece of paper to people with four

23:33
lines on the top and eight lines on the

23:34
bottom I say now do me a favor jot down

23:36
the first and last name of your four

23:37
grandparents well almost everybody can

23:39
do that because they know their

23:40
grandparents and then I said now in

23:41
these eight lines uh just jot down the

23:44
first and last name of your eight

23:45
great-grandparents go ahead it should

23:47
just take a minute well I've never had

23:48
anybody remember the first and last name

23:50
of their great great great grandparents

23:52
and I said you know what's so

23:52
interesting John D rockefeller's great

23:55
great great great great great great

23:56
grandkids they all remember his first

23:58
and last name you know why because every

23:59
year they get a check from John D

24:01
Rockefeller and we found if you get a

24:03
check from somebody every year it helps

24:05
your memory no it no it definitely does

24:08
going back to mortality credits and I do

24:10
want to have you back on where we just

24:11
dig into that yeah can you spend a

24:14
little bit of time there and give people

24:16
maybe the 30,000 foot view of mortality

24:19
credits with annuity payments and why it

24:22
why people need to fully understand it

24:25
yeah well see like let's say there's a

24:26
thousand people out there

24:28
the insurance company does not know when

24:30
each one of them is going to die but

24:32
they do know for a fact that 500 of them

24:34
will die before the other 500 they just

24:36
don't know who they are but because they

24:37
know that they can pay all a thousand a

24:39
higher payout rate because they know

24:41
they're really G to have to pay that to

24:42
half the people and and and so so um in

24:45
in I wrote this white paper called

24:47
retirement Alpha it's just a little

24:48
thing and in there now where can they

24:51
get that retirement Alpha he held it up

24:52
to the viewers but for the podcast

24:54
listeners it's called retirement Alpha

24:55
where's that yeah Tom hut.com it's there

24:59
but but but what's interesting about

25:00
that is one of the one of the advisers

25:02
referred to mortality credits as other

25:04
people's money he said look I work with

25:06
a bunch of baby boomers none of them

25:08
have enough money to retire but if I put

25:10
them all together and they all pick life

25:12
only the payout rate is high enough that

25:13
they'll all make it now some of them are

25:15
going to die early and and and that that

25:18
money would then go to the ones who live

25:19
longer and he said you don't have enough

25:21
of your own money to retire I got to

25:22
find you some other people's money and

25:24
that's what he called mortality credits

25:26
was other people's money extra money

25:28
from the risk pool the entire risk pool

25:31
uh it's it's it's like the opposite of

25:32
life insurance how can an insurance

25:34
company afford to sell a million dollar

25:36
life insurance policy for 20 bucks a

25:37
month a 20-y old can buy a million

25:39
dollar policy for 20 bucks a month well

25:41
they know not many 20-y olds are going

25:43
to die you see and so so they can keep

25:45
that premium low and it's just like a

25:48
90-year-old can buy an annuity with a

25:49
guaranteed 20% payout rate well how can

25:52
an insurance company guarantee 20% a

25:53
year for the rest of life because they

25:55
know that 90-year-old is not going to

25:56
live that long probably but if they do

25:58
they they're on the hook to pay that as

25:59
long as they're living and and people

26:01
just don't understand these mortality

26:03
credits are better the older you are and

26:06
the longer you live so a 90y old is

26:09
going to get a lot more mortality

26:10
credits than a 40y old but then the 40y

26:12
old is going to get paychecks for a lot

26:13
longer than the nine-year-old so but

26:15
it's it's all based in math and science

26:17
because the people who set the payout

26:19
rates are called actuaries do you know

26:21
what actuaries have to study to become

26:23
actuaries they have to study math and

26:24
science life insurance and annuities are

26:26
based in math and science

26:28
yeah they're not studying like you know

26:30
social

26:32
discourse those these are math dudes and

26:34
math dudets out there that are doing

26:36
that by the way going back to the um to

26:38
the co thing and we talked about you

26:40
know people passing away that were

26:41
probably going to pass away you know Tom

26:43
and I want to make sure that you

26:45
understand that we certainly our hearts

26:47
go out to all of you out there that's

26:49
had people pass away unexpect that

26:52
doesn't lessen what you've gone through

26:54
certainly and it's been a it's been a

26:55
roller coaster ride what we were trying

26:57
to point out is that if you look at the

27:00
stats um the people that did pass a lot

27:03
of them were in their 80s you know a lot

27:05
of them have kind of surpassed life

27:07
expectancy or getting close to it and a

27:08
lot of them had pre-existing conditions

27:10
but I'll know about you Tom this has

27:12
been a an interesting Moment In Time the

27:15
whole Co thing I know that from a

27:16
business standpoint we were talking

27:18
about it earlier that business was was I

27:21
mean we're fortunate I mean we're

27:22
blessed that business was good during

27:24
that time period but for a lot of people

27:26
it was not yeah and I was really talking

27:28
about the Spanish Flu about people who

27:29
were going to die and and and I I wasn't

27:31
really talking about Co necessarily but

27:33
but you know Co did take out a a large

27:37
number of older people and people with

27:39
health problems and that those are facts

27:41
too but I mean there were some young I

27:43
know young people that just died like

27:45
that so we still don't know all the

27:48
details on that but uh but I think you

27:50
will see life expectancy Spike upwards

27:52
now it has come down because of covid

27:54
but I think what Dr mevy said is that

27:56
just like after the Spanish flu then

27:58
life expectancy spiked do you expect

28:01
life expectancy tables from annuity

28:04
companies to increase in the next five

28:07
years like are they going to readjust

28:08
those what's your opinion I'm not going

28:10
to hold absolutely I think as people

28:12
live longer the payout rates are going

28:14
to have to come down in these on the new

28:16
sale annuities that's why I think it's

28:18
so important to get them today I I've

28:20
told people for the last 10 years I'm

28:21
buying as many annuities as I can

28:23
because these are the highest uh

28:25
mortality credits I'm likely to see for

28:26
the rest of my life because as long as

28:28
people keep living longer and longer and

28:30
longer they're going to have to lower

28:31
these payout rates because they're going

28:32
to have to pay it for longer and longer

28:34
and so I would say get those annuities

28:36
as soon as you can yeah by the way as a

28:38
reminder Tom Hegman doesn't sell

28:40
annuities he just an expert he doesn't

28:42
sell anything he's just one of the best

28:43
speakers on the planet his books sales

28:45
are in the top 1% of all books sold I

28:49
mean he sold that many um and again I I

28:52
I would encourage you to go and order

28:54
his books one's called don't worry

28:55
retire happy and the the other is

28:57
paychecks and playchecks if you just

28:59
type in those and we'll have links to

29:01
those on my site as well but I encourage

29:03
you if you're if you're doing your

29:04
research on retirement which you should

29:07
then those books have to be on your

29:10
shelf as part of the foundational

29:12
learning that um that you need to do and

29:15
if you feel like annuities might be

29:17
something you need to look at then I'll

29:18
send you my books uh my seven books on

29:21
annuities and the annuity types you just

29:22
go to my site the annuity man.com so the

29:25
interesting part about that that comment

29:28
about life expectancy tables Tom is

29:30
everybody's worried about interest rates

29:33
and interest should should I buy it now

29:35
if are interest rates too low are they

29:37
going to move up and I've been saying

29:39
this just like you Tom we might be the

29:40
only two people on the planet saying it

29:42
the I think there's as much risk on life

29:45
expectancy tables changes against you as

29:47
there are interest rates yeah correct

29:50
and and for interest rates I look at the

29:52
30-year US Government Bond because these

29:54
are the bond market is the smartest

29:56
Market you look at the

29:57
the 30 because 30 inflation hurts the

30:00
30er bond the most and so like if we're

30:02
going to have inflation if we're going

30:04
to have if interest rates are going

30:05
higher you're going to see it first in

30:07
the 30-year Bond because those people

30:09
are buying something for 30 years like

30:11
would you want to lock in your money

30:12
right now for 1.9 I think it's 1.96%

30:15
today for 30 years that's what the bond

30:18
market the smartest people in the world

30:19
are putting their money for 30 years at

30:22
1.93 4% interest and and so that's

30:25
telling me that interest rates are not

30:28
going up I mean if interest rates were

30:30
going up and if inflation was here that

30:32
30-year Bond would not be at 1.9% it' be

30:35
at four five six seven eight nine perc

30:37
because those people have the biggest

30:39
risk if inflation hits and interest

30:41
rates Spike all those people who bought

30:43
annuities at one or bought um uh

30:46
government bonds at

30:47
1.94% they're they're all going to lose

30:49
a ton of money yeah you can lose a ton

30:51
of money in US government bonds if

30:53
interest rates go up the value of bonds

30:55
goes down but what that's telling me is

30:57
the smartest Market in the world is

30:58
loading up on these bonds at 1.9

31:01
something percent and they don't see

31:03
interest rates going up for over 30

31:04
years so you know who am I to go against

31:07
the smartest Market in the world I don't

31:09
see interest rates moving much I'm not

31:11
saying they couldn't go up they go up

31:12
and down but I don't see I I'm am on the

31:14
record saying the 10-year Government

31:16
Bond will go negative before it ever

31:18
hits 4 per. and you can hold me to that

31:20
I agree with you the world is still

31:22
facing deflation not inflation and

31:24
people don't understand that they're

31:25
reading the papers and they you know we

31:26
see pric is going up but the world is

31:28
still facing deflation risk well also

31:31
Tom you know we're in Blue Water

31:32
strategy here you know Blue Water means

31:34
we've never seen it before so um the

31:37
last time money was printed like this

31:39
was I think World War II and some people

31:41
can say CO's the War I agree with that

31:44
but we've never seen this and there's no

31:45
motivation for the government to raise

31:47
interest rates on themselves it'd be

31:48
like me and Tom and I raising our

31:50
mortgage rate if we had one on ourselves

31:52
so I agree with Tom it does it could go

31:54
negative it could go to zero and if it

31:56
does they're just going print more money

31:58
so people that are waiting for that

31:59
fouryear 10year

32:01
treasury we might not see that Tom In

32:04
Our Lifetime it's it's probably decades

32:06
before interest rates go up a lot but

32:08
again it's the life expectancy that that

32:10
really matters in the annuity um Step

32:12
number six is you must have a plan for

32:15
long-term care no retirement plan is

32:17
complete without a plan for long-term

32:18
care it's the one thing most people

32:20
forget about that can wipe out their

32:21
entire life's work and this is very

32:23
personal to me because both of my

32:25
parents had Alzheimer's both of them

32:26
went into a assisted living now I made

32:28
them buy long-term care insurance 18

32:30
years ago they didn't want to it's too

32:32
expensive we'll never need it it's an

32:34
insurance company rip off my dad said

32:35
all those words to me I made them buy it

32:38
well they were both an assisted living

32:40
$110,000 a month both my parents were

32:42
teachers up in Minnesota small towns

32:44
there were years my my mom rarely made

32:47
over 10,000 there were many years my dad

32:48
didn't make over 10,000 a year and

32:51
10,000 a month I can't imagine the

32:53
retirement for the of those policies and

32:55
for people who say it's too expensive

32:57
here's what I have to say if you think

32:58
long-term care insurance is expensive

33:00
man you ought to try not having it try

33:03
paying for long-term care and and um I'm

33:05
a True Believer in that I do not sell

33:07
long-term care but I do refer people to

33:10
the number one long-term care expert in

33:11
my opinion in the country and we had a

33:13
podcast with him Tom his name's Jack

33:14
linenberg and and what I like about the

33:17
new long-term care uh policies is a lot

33:19
of them are asset based meaning that

33:22
you're not throwing your money down a

33:23
rabbit hole another misconception about

33:25
long-term care is well I just don't want

33:27
to you know pay in pay in pay in pay in

33:29
pay in and then I never use it well with

33:31
the newer policies whether they're

33:33
annuity based or life insurance based

33:36
however you want to look at them and I

33:38
can point you to jack lindenberg site if

33:39
you go to my site at the annuity man.com

33:41
um I mean if you don't use it you're G

33:44
your your beneficiaries will get the

33:46
money back so things have changed in the

33:48
long-term care world now obviously you

33:51
know annuity companies and and life

33:52
insurance companies and health insurance

33:54
they want to insure young healthy people

33:57
but there are some long-term care

33:59
products out there and I think the

34:01
biggest thing with you mentioning that I

34:03
appreciate you having that is number six

34:05
is people just need to know it's not

34:07
what you think it is kind of like when

34:08
people say well I don't want to buy an

34:09
annuity because when I die my insurance

34:12
company keeps the money uh no I mean Tom

34:15
explained the details of that and

34:16
mortality credits and how that works but

34:19
the same thing applies with long-term

34:20
care you can get the coverage yet

34:22
control the asset any other thoughts on

34:25
that yeah because um with the

34:27
asset-based long-term care the premiums

34:28
are guaranteed never to go up that's

34:30
nice uh it can be an emergency fund most

34:32
of them have full money back guarantee

34:34
so if you need your money out you get

34:35
your money out if you don't use it and

34:37
you die it it normally about doubles as

34:39
a death benefit taxfree to your heirs

34:41
and if you do need it it's almost triple

34:43
the bucket of money for long-term care

34:45
so it's it's an emergency fund it's a

34:47
legacy fund for your family and it's a

34:49
long-term care fund uh and it and it all

34:52
grows tax defer and so so those are and

34:54
the premiums are guaranteed never to go

34:55
up so those would be you you know people

34:57
are worried about their long-term care

34:58
insurance that might be a great option

35:00
no I totally agree so what's number

35:02
seven we got s seven yeah seven is to

35:04
use your home equity wisely um you know

35:06
for people their house is normally one

35:08
of their largest assets there basically

35:10
three ways to do it you can um sell your

35:12
home in downsize and move to Arizona

35:14
that's where I live or Florida where you

35:16
live you know we can enjoy our lives um

35:18
and and if you're single you can capture

35:20
up the $250,000 taxfree and capital

35:22
gains if you're married you can capture

35:24
to $500,000 taxfree and capital gains

35:27
that can help you can take a loan

35:28
against the equity or you can do a

35:30
reverse mortgage now let me tell you

35:32
where I come down on reverse mortgage

35:33
both in the book and the TV show here's

35:35
what I say I am not for reverse

35:37
mortgages but I'm not against reverse

35:39
mortgages they are a tool that can be

35:41
used in retirement but my best

35:42
professional advice is this number one

35:44
be very very very careful number two

35:47
work with a reverse mortgage expert but

35:49
having said that your listeners are

35:51
going to read many more positive

35:53
articles written by very respected

35:54
sources like the American College Dr

35:57
Wade fou Jamie Hopkins uh Mary Beth

36:00
Franklin Don Graves so there's some

36:02
great material out there just be very

36:04
careful and work with a reverse mortgage

36:06
expert now another step that I don't

36:08
have a number to is you should use life

36:10
insurance to pass wealth to your

36:12
children and grandchildren I always tell

36:14
people don't leave them any money you're

36:16
supposed to spend your money the last

36:18
check you ought to write out to go to

36:19
the Undertaker and that baby out of

36:21
Bounce okay you're supposed to spend

36:23
your money lead them life insurance and

36:25
you could do that for pennies on the

36:26
dollar so let me use me as an example we

36:28
got four kids and one day we're sitting

36:30
around saying how much should we leave

36:31
the kids my wife said I don't know what

36:32
do you think I said well if we bought a

36:34
$1 million seconded eye life insurance

36:36
policy name the four kids a beneficiary

36:37
when we're both gone they're going to

36:39
get a million dollars taxfree um so let

36:42
that's 250,000 a piece tax free plus

36:44
whatever's left over let's start there

36:45
so we bought a $1 million second and die

36:47
life insurance policy named four kids

36:49
beneficiary that policy is completely

36:51
paid up do you know what the total cost

36:52
of that million dollar policy was

36:54
$150,000 so now think about this for 15

36:57
cents on the dollar we get to transfer a

36:59
million dollars tax free to our kids but

37:00
here's the best part who gets to spend

37:02
all the rest of money we do see you

37:05
you're not getting any younger you don't

37:07
get to take any of it with you what are

37:08
you trying to be the richest guy in the

37:10
cemetery you're supposed to spend your

37:12
money leave them life insurance for

37:14
pennies on the dollar and if they just

37:16
follow these simple steps right any

37:18
person can have a happier and more

37:20
successful retirement than if they try

37:22
to just wing it and do it on their own

37:24
in the stock market and all that that's

37:25
not going to work because a sequence of

37:27
returns risk and all these other things

37:28
that we could do a whole another show on

37:31
well and that that's that's his book

37:32
don't worry retire happy I you should

37:34
get you should get that book I always

37:35
tell people that life insurance is the

37:38
best return on investment you'll never

37:40
see because you're dead I mean it it

37:43
really is um and there's new I mean the

37:46
other thing that I like what you said

37:47
and I tell people this and I'm from the

37:49
Deep South so things come out a little

37:51
little uh corny sometimes but um you

37:54
need to spend your money you need to go

37:56
live your life you need to stop waiting

37:58
and procrastinating because as they say

38:00
in the South there's no U-Hauls behind

38:01
hes Tom hegna and um you if you and if

38:05
you see one take a picture and send it

38:07
to me well and and and it has to do a

38:10
lot with psychonomics so I speak about

38:12
math science and economics but I've been

38:13
speaking more about psychonomics because

38:15
think about it this way you got

38:17
something from your company every two

38:18
weeks your entire working career it was

38:20
called a paycheck now what did you do

38:21
with that paycheck you spent it you paid

38:23
for your house paid for your car you

38:24
went on trips you bought stuff you got

38:26
it spend a paycheck every single two

38:28
weeks for your entire working career you

38:30
never had a problem with that but when

38:31
was the last time you rated your 401k

38:33
and took $200,000 out of your IRA at

38:35
401K oh no we can't do that we got to

38:37
save it we got to grow we got protect it

38:39
we can't touch it will you do that for

38:40
45 years do you honestly think on your

38:42
65th birthday you're gonna wake up and

38:44
say bye golly I'm gonna blow my 401k

38:46
today you can't do it people can't spend

38:49
their assets they've been psychonomic

38:50
programmed to never touch them and most

38:53
people go to their graves never touching

38:56
their assets sense and so what the math

38:58
and scien is is you should take a

39:00
portion for most people that be 20 to

39:01
40% of their portfolio and put that into

39:03
guaranteed lifetime income now you got

39:05
these paychecks and playchecks coming in

39:07
every single month you can spend them

39:09
spend them spend them spend them and and

39:10
they just as long as you're breathing

39:12
those checks never run out and that's

39:14
proven that you're going to be happy in

39:15
retirement and you're likely going to

39:17
live longer in retirement these are not

39:19
my opinions this is the research of phds

39:22
all around the world on retirement

39:24
what's a play check Tom tell people what

39:26
a I think they know but I need you to

39:27
drive a play people know what paychecks

39:30
are what's a play check a play check

39:32
allows me to go play golf whenever I

39:33
want to I can go on trips whenever I

39:35
want to if we want to go to the casino

39:37
and put a hundred bucks on red and spin

39:38
the wheel once or twice we can do that

39:41
that's a play check it's things that we

39:43
want to do not that we have see a

39:45
paycheck covers your mortgage your cell

39:47
phone bill your car insurance you know

39:50
your car payment whatever whatever your

39:51
bills are that's the paycheck the

39:53
paycheck is all the fun stuff and that's

39:56
what what you want you want to get to a

39:57
place where you got these playchecks

39:58
coming in is golly we really should

40:00
spend this money because it just keeps

40:02
coming we got to spend it and that's

40:04
when people are the happiest and they

40:06
tend to live they you know if you know

40:07
older people their world starts getting

40:09
really small when my parents got really

40:10
old and and if they can live for one

40:11
more payche oh I think I can hang on for

40:13
one more check oh I think I feel good

40:15
I'm gonna hang on for one more check and

40:17
these checks cause them to hang on for

40:19
longer and they live longer I mean again

40:21
these are not opinions you can read the

40:23
research I've read I put all the

40:24
research in my books my my white papers

40:27
you know I I don't make this stuff up

40:29
these are ma this is Math and Science

40:32
and once again it's Tom hegna H GNA so t

40:36
m h g na.com I would encourage you to go

40:39
there he has a lot of good stuff but

40:41
primarily you need to start with his two

40:43
books you know don't worry retire happy

40:45
and then paychecks and playchecks which

40:48
Tom was just talking about which you

40:50
know is kind of the uh retirement income

40:52
Bible out there for a lot of not only

40:55
retirees but also advisers uh because

40:58
Tom speaks and educates and trains um if

41:02
they're listening advisers and agents as

41:04
well on how to position lifetime income

41:07
transfer risk annuities and and he's

41:09
doing Yan's work I mean he should be if

41:12
there was a president of the annuity

41:15
industry it should be Tom Tom hegna in

41:17
my opinion um when you when you're

41:21
speaking out there

41:23
Tom when people walk up to you after the

41:25
event and you always have that because

41:27
I've been to a couple your events and

41:28
they line up to talk with you what's the

41:30
common theme you're hearing from your

41:32
not only your your listeners but your

41:33
readers when they email you what's

41:36
what's make what's keeping them up at

41:37
night well I mean people are worried

41:38
about social security they're worried

41:40
about the stock market they're worried

41:41
about inflation um but I get a lot of

41:43
people to say okay Tom what should I do

41:44
with my money now I don't even know this

41:46
person from H ground they want me to

41:47
tell them what to do and I say well look

41:49
uh if you can answer me these two

41:50
questions I might be able to help you

41:52
what do you want your money to do for

41:53
you while you're alive and what do you

41:55
want it to do when you die and and it's

41:57
just like you Sten because you do work

41:58
with people if they answer those two

42:00
questions you can normally put them on a

42:02
really good path towards uh towards

42:03
happy retirement and one last thing I'm

42:06
not just talking the talk I'm walking

42:07
the walk so I I did a trial retirement

42:10
two summers ago I wanted to see could I

42:11
really get off the road could I really

42:12
do this would I go would we drive each

42:14
other crazy would I get bored had the

42:16
time of my life so I did it again last

42:18
year and now I pretty much am in

42:20
semi-retirement my my handicap is the

42:22
lowest it's ever been I won the Club

42:24
Championship at my golf course I'm the

42:26
oldest club champion in course history

42:27
see that to me now is more important

42:29
than than doing what I've been doing for

42:31
the last 30 years and so I'm working on

42:32
my golf game working on pickle ball I'm

42:33
working on Dennis and that's what I'm

42:35
and we're having fun we just went to San

42:37
Antonio on the Riverwalk for four days

42:38
we're gonna go to Hawaii for two weeks

42:40
we want to do the Panama Canal kers we

42:42
got this bucket list of stuff now that

42:43
we want to work off because look I lost

42:45
my dad two years ago I lost my mom this

42:47
year I lost my best golfing buddy at age

42:49
56 you start figuring this thing out

42:51
this is not a forever deal no and and

42:54
and and I don't want to be the richest

42:55
guy in the cemetery and I'm not going to

42:56
be all right I'm going to live my life

42:58
and I'm not worrying and I'm retiring

43:00
and I'm happy and I said what could it

43:02
be if the guy who writes the book don't

43:03
worry retire happy doesn't retire and

43:05
he's not happy that wouldn't be any good

43:06
so I am not just talking the talk I'm

43:09
walking the walk I'm not sure how you

43:11
can improve upon those two books but are

43:14
you are you still I know you're still

43:15
speaking but are you still writing yeah

43:18
and I've got one that I it's just it's

43:19
hard you know because I got so much

43:21
stuff going on but but this one is for

43:22
Millennials it's how to be become a

43:24
millionaire you know who wants be Aon

43:26
that's basically it and I and I show

43:28
Millennials how simple it is in America

43:31
to become a millionaire today I believe

43:33
most every American could do it if they

43:35
if they really wanted to they have to be

43:37
disciplined you know you're not going to

43:38
do it in Dogecoin okay and hate to sell

43:40
you AMC and GM probably not going to do

43:42
it for you but I can show people how to

43:44
become a millionaire the right way and

43:46
it's about making more money it's about

43:48
spending less money and investing into

43:49
appreciating assets so that's going to

43:51
be the theme of that book it's going to

43:52
be for Millennials on how to become

43:55
wealthy in America today next year we're

43:57
looking for

43:58
that we'll see I mean I I put a goal to

44:01
be have it done this summer and I i'

44:03
I've got about 27 Pages done so I mean I

44:05
got a lot of work to go I no I

44:07
understand great story about Tom last

44:08
time I I saw him I'm I used to be this

44:10
huge coffee drinker so we met for

44:12
breakfast we're both traveling I said

44:14
hey man I'm in town let's let's get

44:15
together and so we sat down and

44:17
Tom he you know he he's a professional

44:20
traveler I mean the the dude just he

44:22
knows what he's doing so he pulls out

44:23
these teabags and I'm like what are you

44:25
doing he like no this is my kind of tea

44:27
I love this tea and I I bring it with me

44:29
since that time and you don't know this

44:31
I I didn't tell you this before we we

44:32
got on the podcast I now drink tea and I

44:36
I credit Tom hegna with that because I'm

44:38
like well let me try that because you

44:40
know coffee kind of eats your stomach up

44:41
a little bit and ever since then and

44:43
that was years ago um I'm like this tea

44:47
fanatic um which makes sense if you're

44:49
from the South but I'm talking about

44:50
warm tea but that's that you know Tom

44:52
hegna has not only given me nuggets of

44:54
wisdom through his life he gave me you

44:55
know the the habit of uh the daily warm

44:58
tea I don't know what's this what was

45:00
the it was cinnamon tea it's a Bigalow

45:03
cinnamon tea I love it it's called

45:05
cinnamon stick I take it everywhere I go

45:07
it's not because I'm cheap and I don't

45:08
want to pay you know 30 cents for a tea

45:10
bag that's not it it's my favorite tea I

45:12
bring it on the airplane I bring it to

45:13
my hotels I bring it everywhere because

45:16
that's my tea and then I drink iced tea

45:18
the rest of the day but in the morning I

45:19
drink the hot tea so anybody listening

45:22
out here from Bigalow um you might want

45:25
to send that case of of T to Tom hegna

45:29
go to Tom hea.com

45:32
um what do you think of these markets

45:35
we're getting closing up a little bit

45:36
here but I got a couple more questions

45:37
for you you know we've both seen it all

45:41
we both have been through Market Cycles

45:42
you know I started you know a long time

45:45
ago three decades ago you've been in a

45:46
long time what do you think of these

45:47
markets here and what do you tell the

45:50
retirees um you know I I know you're

45:53
saying put I agree with you put that

45:55
retirement income floor in place but

45:58
what are you saying about markets here

46:00
with your experience viewing well I mean

46:03
there's just so much funny money that's

46:04
been printed that's worked its way in

46:06
the market so the market is is

46:08
significantly overvalued where it should

46:10
be I would tell people I'm not anti-

46:12
stock market at all I have you know I

46:14
have a lot I have chunk of money in the

46:16
market as well but I have learned this I

46:19
am better sticking with quality stocks

46:22
Amazon Apple Facebook Google you know um

46:26
you know maybe even Boeing or something

46:27
but but stick with the top rated stocks

46:30
I think you're going to be better than

46:31
if you're going after all this you know

46:33
AMC and gme and Dogecoin and all that

46:36
stuff and if you want to speculate and

46:38
all that stuff is speculating I'm not

46:40
against speculating but speculating

46:42
should be somewhere between one and 3%

46:44
of your portfolio not 50% not 30% one to

46:46
3% I put 1% of my portfolio in Bitcoin

46:49
I'm very comfortable with that uh

46:51
because if I lose 1% it's not going to

46:52
affect my life but if it goes to a

46:53
million dollars Bitcoin it'll sure help

46:54
me so so that's why I I I do that but um

46:58
just I'd be very cautious about this

47:00
Market I mean because when it goes it's

47:02
going to go and as we saw last time

47:05
everything went down stocks went down

47:06
bonds went down gold went down Bitcoin

47:09
went everything went down there's no

47:10
Safe Haven except for fixed annuities

47:13
basically there was not much of Safe

47:15
Haven I mean when everything goes down

47:16
it goes down and it can be ugly and you

47:19
don't want to lose money right before or

47:21
right after retirement because that's

47:22
the riskiest time of your investing life

47:24
and I tell people the time having come

47:27
from that um Side Of The Ledger where I

47:29
work with Dean Whitter and Morgan

47:30
Stanley Payne Weber and UBS um at the

47:33
time of this taping over 85% of all

47:36
trades are non-human algorithmic

47:38
blackbox High Velocity so it's a

47:40
different Market it's an Institutional

47:42
Market it's a

47:43
247365 market unfortunately you know us

47:46
peons don't get to do the 247 365 so you

47:50
know I would be I would be very careful

47:52
I think that's Sage advice um two last

47:55
questions the first one is is about

47:58
blockchain and and blockchain for the

48:00
people out there is the technology and

48:02
the underlying foundation of the

48:04
Bitcoins and the cryptos and all that

48:06
stuff but blockchain is blockchain

48:07
technology is more than just

48:09
cryptocurrency do you see blockchain

48:12
affecting the annuity and life insurance

48:14
industry in a positive way yes or no I I

48:17
think so because it allows um

48:20
transactions to happen with transparency

48:23
yet Anonymous which is which is really

48:25
weird that that everybody can see what's

48:28
going on and there's a number or code of

48:30
what's going on but you can't see who

48:32
just did that and so I think um you know

48:35
every almost every industry has been

48:37
using blockchain to help their supply

48:40
chains to help their inventory uh maybe

48:43
annuity issuers can become more

48:45
efficient maybe they can uh mitigate

48:47
some risks that we don't even talk about

48:49
datto day that are Actuarial type risks

48:51
so I do think that over time it it it

48:54
will be a positive one last thing um I

48:57
mean closing comment from you just about

49:01
uh retirement and what we covered here

49:04
just Sage wisdom from Tom hegna well

49:08
retirement people think it's about real

49:09
estate or it's about the stock market or

49:11
it's about how much money is my 401k

49:13
that's not what it's about it's about

49:14
how much guaranteed lifetime income do

49:16
you have and have you taken the

49:18
appropriate risks off the table have you

49:20
mitigated long-term care risk have you

49:21
mitigated inflation risk have you

49:23
mitigated sequence of returns risk

49:25
Market risk R uh inflation deflation

49:27
what about taxes and and most people who

49:29
do it themselves they have blind spots

49:32
oh yeah I had a good quarter oh man I

49:33
made 30% last year mark okay yeah what

49:36
happens when the market crashes 50% and

49:38
then you determine that you need

49:39
long-term care and oh by the way they

49:41
just doubled your taxes and now

49:42
inflation's at 5 per. what then what you

49:44
know and so I just think too many people

49:46
have blind spots which is why they need

49:48
to stand the annuity man to help them

49:50
out and and show them what the blind

49:52
spots are and then they can choose which

49:54
ones they want to protect against ladies

49:56
and gentlemen that rockar you just heard

49:58
is named Tom hegna go to his site Tom

50:01
hea.com we will have him on again I want

50:04
to dig into the mortality credits um you

50:07
know topic as well but I really

50:09
appreciate you being here Tom and uh I

50:11
appreciate everybody that's watching on

50:13
the fun with an's YouTube channel and

50:15
all listening on all the major podcast

50:18
platforms we will see you next week on

50:20
fun with

50:24
annuities

50:27
a