Episodes

  • 0013. The 7 Benefits of 3rd Generation Annuities

    0013. The 7 Benefits of 3rd Generation Annuities
    Aug 9 2024
    In this episode, I continue my deep dive into annuities, focusing on the transformative benefits of 3rd generation annuities. These modern financial tools offer a balanced and secure approach to planning your financial future. I explore 7 key benefits—flexibility, safety, liquidity, growth, tax deferral, low to no fees, and longevity protection—and discuss how these features can empower you to achieve your financial goals. Tune in to discover how 3rd generation annuities can be a cornerstone in your journey toward financial independence. If you missed our previous episode, I highly recommend starting there to gain a comprehensive understanding of the evolution from 1st, 2nd and 3rd generation annuities and how each generation differs. This foundation will enrich your understanding of the powerful benefits I discuss today. Episode Highlights and Takeaways: Annuity - A private, portable pension plan, of which there are 3 types: 1st Generation Annuity (Fixed Annuity/FA) - Similar to a certificate of deposit (CD), where all elements of this type of annuity are protected and guaranteed. Like the CD, both the principal and earnings are protected from losses. Unlike a CD, where interest is taxed as earned, the earnings of the 1st Generation Annuity are tax-deferred until distributed. The primary method of distribution is called "annuitization". Annuitization surrenders the principle and earnings in exchange for ongoing payments/distributions. The payments are made to the annuitant for a guaranteed period of time, ranging from a specific number of years to the lifetime of the annuitant. Once annuitized, the distributions generally cannot be changed or stopped and, the principle is no longer available for lump-sum withdrawals. 2nd Generation Annuity (Variable Annuity/VA) - An annuity that primarily invests in stocks, bonds or mutual funds to provide the opportunity for higher earnings and growth. Just like a 1st Generation Annuity, the earnings of a 2nd Generation annuity are deferred from taxes until distributed and the primary method of distribution is "annuitization". However, the 2nd Generation Annuity has no guarantees to protect the principal from potential losses. In addition, the 2nd Generation Annuity is often subject to higher fees than other types of annuities. 3rd Generation Annuity (3GA/Fixed Indexed Annuity/FIA) - The 3GA is a hybrid that combines the safety, security and guarantees of a 1st Generation Annuity with some of the upside earnings potential of a 2nd Generation Annuity. The 3GA is a safe, flexible and liquid annuity, that can be designed with low or even no fees. A 3GA can be annuitized to provide income, however, most often the annuitant will choose to exercise the more flexible "Income Rider" option instead. Similar to annuitization, the Income Rider is a private, personal and portable pension-like plan that provides a guaranteed ongoing distribution of money that one can never outlive. The significant difference between the income rider and annuitization is that the principle is never surrendered, making it possible to receive lump-sum withdrawals of money as needed. Additionally, the distributions can be increased, decreased or stopped altogether. The 7 Primary Benefits of the 3GA - Flexibility, Safety, Liquidity, Growth, Tax Deferral, No/Low Fees and Longevity Protection Flexibility - The 3GA generally combines multiple earnings strategies, a variety of low/no-fee strategies, as well as a number of liquidity/distribution options to address your goals and needs today. It can also be modified if your situation changes in the future. Safety - A 3GA protects both principal and earnings from losses by eliminating drawdown risk* during the accumulation phase and, by eliminating the sequence of withdrawal risk* during the decumulation phase. With the addition of an income rider, the 3GA protects against tail-risk* as well. Liquidity - A 3GA provides ongoing penalty-free access to some of your principal at all times. If serious health issues develop, then larger amounts of penalty-free withdrawals become available as well. For example, 100% penalty-free withdrawals are always available after a specified period of time or, immediately, upon the death of the annuitant. Growth - The 3GA provides a number of crediting methods to grow your account's value, all with no market risk to the principal and earnings. Tax Deferral - Earnings are deferred from income taxes until those earnings are withdrawn. No/Low Fees - A 3GA generally has no trading costs, no M&E (mortality & expense) charges or management fees. Only optional rider fees may apply, if elected. Longevity Protection - The 3GA's income rider option is a flexible, private, personal and portable, pension-like plan, that eliminates tail-risk, the risk of running out of money, by providing guaranteed ongoing income you will never outlive.
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    24 mins
  • 0012. The 3 Generations of Annuities

    0012. The 3 Generations of Annuities
    Jul 25 2024

    In Episode 12 of the Financial Independence Now podcast, host Randy Luebke, discusses the topic of annuities, clearing up many common misunderstandings surrounding them. He compares annuities to familiar financial instruments like Social Security and company pensions, emphasizing their importance of considering the use of annuities in retirement planning.

    The episode details 3 Generations of Annuities:

    The First Generation Annuities (Gen1), or Fixed Indexed Annuities, are likened to certificates of deposit (CDs), where the investment is tied-up for a specific period of time. The interest paid is guaranteed and the principal is 100% protected from loss of value. The difference between the CD and the Gen1 Annuity is the Gen1 Annuity also provides tax-deferred earnings.

    The Second Generation Annuities (Gen2), known as Variable Annuities, invest in stocks, bonds, or mutual funds. Gen2 Annuities offer the potential of higher earnings but they generally do not offer guaranteed earnings of principal protection. Also, Gen2 Annuities almost always come with higher fees.

    The Third Generation Annuities (Gen3), also referred to as Fixed Indexed Annuities, combine the safety and guarantees of Gen1 Annuities, along with the growth potential of Gen2 Annuities. Gen3 Annuities are flexible. They offer low to no fees, as well as income rider options. The income riders provide a guaranteed amount of income distribution, generally for life. However, the principal is never surrendered, providing access to lump-sum distributions as well.

    The episode underscores the importance of understanding the different types of annuities, Gen1, Gen2, and Gen3, and the importance of evaluating their suitability based on individual financial goals and risk tolerance and utilizing available resources to make informed financial decisions.
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    13 mins
  • 0011. Budgeting for Dummies

    0011. Budgeting for Dummies
    Jul 2 2024

    In this episode of Financial Independence Now, host Randy Luebke dives into one of the most crucial yet challenging aspects of financial planning – budgeting. Randy introduces a practical strategy to simplify the process, the "false scarcity" method and categorizing expenses into essentials and lifestyle.

    Listen in as Randy breaks down essential expenses into six categories: food, shelter, clothing, healthcare, transportation, and taxes, and explains how to track and manage these effectively. He also shares insights on setting aside savings and managing payroll taxes, making budgeting manageable even for those who find it daunting.

    Whether you're struggling to keep your finances in check or looking for ways to optimize your spending and savings, this episode offers valuable tips and a straightforward approach to help you gain control over your budget and move closer to financial independence.

    Highlights:

    • The challenges of budgeting and how to overcome them
    • The "false scarcity" method explained
    • Differentiating between essential and lifestyle expenses
    • Practical steps to start budgeting effectively
    • The 20-30-50 rule for savings, taxes, and spending

    Tune in and take the first step towards a more organized and stress-free financial life.

    Links from the episode:

    Webpage with details and downloads

    The 4x4 Financial Independence Plan ℠

    The Smart 3-Tiered Cash-Reserve System ℠

    The Business Owner's Guide to Financial Freedom: What Wall Street Isn't Telling You

    The Financial Independence Toolkit ℠

    More podcast content

    Questions:

    If you have any comments or questions about this episode, we would love to hear from you. Email us at info@LifetimeParadigm.com or connect with us on Facebook https://www.facebook.com/groups/financialindependencenowpodcast

    Learn More:

    https://lifetimeparadigm.com/education/financial-edification/

    https://lifetimeparadigm.com/webinars/

    Support:

    We hope you enjoy listening to this episode and learn something that you can apply to your life starting now. If you get value out of our podcast, please share it with a friend! Tell your podcast streaming host, iTunes, or whichever streaming service you use, that you enjoyed what you heard in this podcast, and you valued the information we shared. Then give us your 5-Star rating, so we can connect with more people just like you.
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    19 mins
  • 0010. Roth Math

    0010. Roth Math
    Aug 24 2023

    In this episode of The Financial Independence Now podcast we debunk several common myths and misinformation surrounding Roth conversions. We call this "Roth Math" and most people don't understand it. Discover the essential considerations that you need to understand because they will significantly impact your decision to convert your traditional IRA's, 401(k)s and other traditional retirement savings plans into a Roth. Trust us, you will be surprised with what you will learn from this podcast.

    Episode Highlights:

    • Explore the misconceptions surrounding Roth conversions from traditional retirement plans.
    • Uncover the straightforward truth behind "Roth Math" that can guide your financial decisions.
    • Learn about the origins of Roth accounts and why they didn't gain as much traction initially.
    • Deciphering the Roth Math Formula
    • Strategies for Smart Conversions

    Join us in deciphering the intricacies of Roth Math and gaining insight into making informed financial decisions that align with your goals and aspirations.

    Links from the episode:

    The 4x4 Financial Independence Plan ℠

    The Financial Independence Toolkit ℠

    More podcast content

    Questions:

    If you have any comments or questions about this episode, we would love to hear from you. Email us at info@LifetimeParadigm.com or connect with us on Facebook https://www.facebook.com/groups/financialindependencenowpodcast

    Learn More:

    https://lifetimeparadigm.com/education/financial-edification/

    https://lifetimeparadigm.com/webinars/

    Support:

    We hope you enjoy listening to this episode and learn something that you can apply to your life starting now. If you get value out of our podcast, please share it with a friend! Tell your podcast streaming host, iTunes, or whichever streaming service you use, that you enjoyed what you heard in this podcast, and you valued the information we shared. Then give us your 5-Star rating, so we can connect with more people just like you.
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    22 mins
  • 0009. The Four Sequential Steps

    0009. The Four Sequential Steps
    Aug 10 2023

    In this episode, Randy Luebke, president and founder of Lifetime Paradigm, takes you through the four sequential steps to achieve financial independence. Randy breaks down each step and highlights why people often fail to reach financial independence when they skip these essential stages. The key to success lies in following the step-by-step process diligently.

    In this episode:

    • Recap of The 4 Essential Elements
    • The 4x4 Financial Independence Plan ℠
    • The 4 Sequential Steps and why they are crucial for achieving financial independence
    • Step 1: Optimize Everything
    • Step 2: Eliminate Debt
    • Step 3: Establish Cash Reserves
    • Step 4: Save and Invest

    Entities mentioned:

    • Dave Ramsey

    Links:

    The 4x4 Financial Independence Plan ℠

    The Financial Independence Toolkit ℠

    More podcast content

    Questions:

    If you have any comments or questions about this episode, we would love to hear from you. Email us at info@LifetimeParadigm.com or connect with us on Facebook https://www.facebook.com/groups/financialindependencenowpodcast

    Learn More:

    https://lifetimeparadigm.com/education/financial-edification/

    https://lifetimeparadigm.com/webinars/

    Support:

    We hope you enjoy listening to this episode and learn something that you can apply to your life starting now. If you get value out of our podcast, please share it with a friend! Tell your podcast streaming host, iTunes, or whichever streaming service you use, that you enjoyed what you heard in this podcast, and you valued the information we shared. Then give us your 5-Star rating, so we can connect with more people just like you.
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    18 mins
  • 0008. The Four Essential Elements

    0008. The Four Essential Elements
    Jun 29 2023

    In this episode of the Financial Independence Now podcast, Randy Luebke introduces the concept of The 4 Essential Elements as part of The 4x4 Financial Independence Plan sm.

    The 4x4 Financial Independence Plan sm is comprised of 4 Essential Elements and 4 Sequential Steps. The 4 Essential Elements include: Retirement Planning, Asset Protection, Estate and Tax Planning.

    Retirement planning is very different today than it was for your parents and grandparents, who typically worked one job their entire life and then retired with a pension. Today, people work many jobs, change careers, and don't receive pensions. Today's retirement is about financial independence, when the assets you have provide the income you need to live the life you want, and work is no longer a requirement, it's an option.

    When it comes to Asset Protection, Randy introduces the concept of protecting the ability to earn income through financial safety nets, such as cash reserves. Other forms of asset protection mentioned include disability insurance, life insurance, health insurance, cybersecurity, college funding, and caregiving.

    Estate planning goes beyond wills and trusts, with an explanation of the importance of designated beneficiaries on financial documents and the need to keep them updated. The goal of estate planning is to ensure that you will always be in control of your wealth, while you are living and to create your legacy.

    Taxes are life's biggest expense. Randy emphasizes that Tax Planning is aiming to minimize taxes paid and reduce them to the smallest required amount.

    Overall, The 4x4 Financial Independence Plan sm offers a different perspective on financial planning, emphasizing the integration of real estate and self-directed retirement accounts while focusing on the four essential elements to achieve financial independence: retirement planning, asset protection, estate planning, and tax planning.

    Topics Discussed:

    - Real Estate Integration

    - Retirement Planning (Income Independence)

    - Asset Protection

    - Estate Planning (Legacy Preservation)

    - Tax Planning (Tax Minimization)

    - The 4x4 Financial Independence Plan sm

    - The Smart Estate Plan Protector sm

    - The 3-Tiered Cash Reserve System sm

    Entities Mentioned:

    - Lifetime Paradigm

    We hope you enjoy listening to this episode and learn something that you can apply to your life starting now. If you get value out of our podcast, please share it with a friend! Tell your podcast streaming host, iTunes, or whichever streaming service you use, that you enjoyed what you heard in this podcast, and you valued the information we shared. Then give us your 5-Star rating, so we can connect with more people just like you.

    If you have any comments or questions about this episode, we would love to hear from you. Email us at info@LifetimeParadigm.com or connect with us on Facebook https://www.facebook.com/groups/financialindependencenowpodcast

    Also, remember to visit our website LifetimeParadigm.com. There you will find links to our past podcast episodes, webinars, and educational articles. You will also find notices of our upcoming events both live and online. All the information is 100% free and available to you 24/7.

    Finally, be sure to subscribe to our newsletters which are stuffed with great ideas on how to: save and invest, reduce the taxes you pay, protect yourself from lawsuits, and, of course, more information on ways to become Financially Independent, Now!
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    27 mins
  • 0007. Discipline Vs. Desire

    0007. Discipline Vs. Desire
    Jun 15 2023

    In this episode, we unravel a powerful truth: Discipline alone isn't enough to sustain you on the path to achieving your most cherished goals. Discipline can get you started, but in the long run, you are going to need more than discipline to see you through to the end when you are trying to achieve almost any worthy goal.

    In this episode of The Financial Independence Now podcast, we dive deep into the mindset required for achieving financial independence with our expert host, Randy Luebke. Randy throws discipline out the window and replaces it with a stronger and more powerful emotion, desire.

    Discipline works like a flashlight. You flip the switch and immediately the light goes on. However, over a short period of time, the batteries wear down and the light goes out. When this happens with your financial goals, you become distracted or discouraged and possibly give up on trying to achieve your goals altogether.

    Desire, on the other hand, works like two magnets irresistibly drawn to each other. As these magnets draw closer, their pull intensifies until they eventually snap together. With desire as your guiding force, giving up is not an option. As you diligently pursue your goals, your desire to achieve them grows stronger and stronger. Ultimately, you become unstoppable.

    Topics Discussed:

    • Leveraging your emotions to help you to achieve your goals.
    • Envisioning the benefits of achieving your goals many years from now
    • Recognizing the consequences of not achieving them

    We hope you enjoy listening to this episode and learn something that you can apply to your life starting now. If you're finding value in this episode, please share it with a friend! Let your podcast streaming host, iTunes, or whichever streaming service you use, know that you appreciated the insights we shared. Don't forget to give us a 5-Star rating, helping us connect with more like-minded individuals.

    If you have any comments or questions about this episode, we would love to hear from you. Reach out to us via email at info@LifetimeParadigm.com or connect with us on Facebook at https://www.facebook.com/groups/financialindependencenowpodcast.

    Also, remember to visit our website LifetimeParadigm.com. There, you'll find links to our past podcast episodes, webinars, and educational articles. Stay updated on our upcoming events, both live and online. All the information is 100% free and available to you 24/7.

    Lastly, make sure to subscribe to our newsletters, packed with fantastic ideas on saving and investing, reducing taxes, protecting yourself from lawsuits, and, of course, more insights on achieving Financial Independence, Now!
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    10 mins
  • 0006. What Is A Fiduciary?

    0006. What Is A Fiduciary?
    Jun 6 2023

    In this episode, we dive into the often-misunderstood world of financial advisors, and the distinction between fiduciary and non-fiduciary advisors. In this eye-opening presentation, we will help you to understand the very important differences between these two groups, and why recognizing those differences is so very important to you.

    We will provide you with the details that differentiate fiduciary advisors from their broker-dealer counterparts and their standards of care. For example, broker-dealer advisors are held to the standard of "Suitability". Most people think they know what suitability means, but they really do not. In this podcast, we will explain suitability in detail, and you will likely be very surprised with what you will learn. Fiduciaries are held to the standard of "Best Interest". That is a legal term that requires a fiduciary to give advice that is always in their client's best interest.

    We will also explain how some advisors operate both as a fiduciary and a non-fiduciary advisor, and why that type of arrangement is potentially very problematic to you. By the end of the episode, you'll have a clear understanding of all these relationships and how to pick the right advisor.

    Topics Discussed:

    - Definition of a fiduciary

    - Numbers of fiduciaries vs. broker-dealers

    - Responsibilities of broker-dealers

    - Standards of care for fiduciaries and broker-dealers

    - Dual-licensed advisors

    - How to identify fully independent fiduciary investment advisors

    We hope you enjoyed listening to this episode and learned something that you can apply to your life starting now. If you got value out of this episode, please share it with a friend! Tell your podcast streaming host, iTunes, or whichever streaming service you use, that you enjoyed what you heard in this podcast, and you valued the information we shared. Then give us your 5-Star rating, so we can connect with more people just like you.

    If you have any comments or questions about this episode, we would love to hear from you. Email us at Info@LifetimeParadigm.com or connect with us on Facebook https://www.facebook.com/groups/financialindependencenowpodcast

    Also, remember to visit our website LifetimeParadigm.com. There you will find links to our past podcast episodes, webinars, and educational articles. You will also find notices of our upcoming events both live and online. All the information is 100% free and available to you 24/7.

    Finally, be sure to subscribe to our newsletters which are stuffed with great ideas on how to: save and invest, reduce the taxes you pay, protect yourself from lawsuits, and, of course, more information on ways to become Financially Independent, Now!
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    10 mins