The Power of Our Planning is Safety

The Power of Our Planning is Safety

By William Jed Mayfield

Retirement Income Specialist

Mayfield Financial & Estate Protection Services, Inc.

The Best Practices Used to Create Sustainable Streams of Retirement Income



Guarantees or a future guess—which would you choose? With the S&P 500 Index, the Dow Jones Industrial Average, and the NASDAQ Composite Index trading around record highs as government paper has been hitting record-low yields, it is a dichotomy in the market that has many on edge with the future’s Central Bank’s monetary management. I call it the financial squeeze shoot. But my clients aren’t worried about it. My clients like the guaranteed retirement income formula we use for the solid foundation that provides a safe haven for the inevitable periods of risk off and asset price correction during episodes of market uncertainty.

Now is an excellent time to assess your comfort level with you investment asset allocation. One result of the high returns in the stock market last year coupled with the negative returns in the bond market is that most retirement portfolios are now over their target equity allocations and under target for their income planning. Bear in mind that the primary reason that most of my clients come to see me is because they are looking for this benefit of Safe Money and income planning—for capital preservation, stable income, and to contribute to the overall portfolio stability. If you are at, or close, or past retirement age, you should carefully evaluate your current asset allocation; and is your retirement income planning complete with a guaranteed financial foundation designed to get you and your spouse safely to the end of your lives?

Over and over again as I visit with my clients they focus almost exclusively on the great results that they hope to get, or the great results that they’ve gotten in the past. I believe that is essentially a waste of time and energy. Instead, focus on the potential loss you could face if things don’t go as you expect. The most common problem that investors run into, especially at retirement age, is taking too much risk. The most successful planning is about defense, not offense. That means avoiding the loss of the money you have saved and the gains that you have already made. It’s called gain and retain, not gain and give back.

The power of our planning is safety, security, and guarantees without fees, charges, and expenses. It is income that you and your spouse cannot outlive; income that will guarantee that you will never run out of money.  With the volatility of the economy and the possibility of market risk exposure, you might possibly be interested in what my clients are doing—moving the appropriate amount of their portfolio to safety, security, and guarantees. It makes sense.

With the immense responsibility of helping my clients and future clients, the very math and science of the financial services industry has proven that if there is not the correct annuity contract as part of your retirement portfolio then your plan is sub-optimal. That is, it is less than it could, would, or should be, yet many of the so-called experts can influence you to have a negative perspective on annuities. That’s called financial bias; bringing up negative aspects of a contract that may have nothing to do with the contract that is right for you. For example, people may like to say that annuities have high fees. That is true for a variable annuity, but has nothing to do with the fixed annuities. Here’s the difference: a lifetime income annuity is not a fee product, it is contractually guaranteed to fill the need with no fee. Now compare that to a variable annuity that has mortality and expense charges, investment management fees, rider fees and surrender charges and the like. These products are wide versed. That is why it is so important that you get with someone who has no financial bias that will show you all that is available, but more importantly, has available for you that which you can take advantage of for the financial foundation you can count on.

This type of planning is not about changing everything. It’s about putting into place the proper part of your portfolio to meet the essential needs that you’re going to have to have for the rest of your life. Many of my clients continue to manage their own portfolio for the discretionary funds they need, or maybe they’ve got a good investment advisor that they really like, so he takes care of that part for them. Or, here at Mayfield Financial and Estate Protection Services, Inc., we do have risk money managers that also can be of assistance to you. But the absolute case design on the Safe Money part—on the income money part—is done with the availability of over 200 contracts, so that we can meet your personal objectives.



For further information or a free consultation, contact me:

Wm. Jed Mayfield, President

Mayfield Financial & Estate Protection Services, Inc.

Phone # 520-322-9773