FAQs

• Does investing in the stock market make you anxious?
• Are you exhausted by the thought of keeping a pulse on your investments?
• Are you confused by all of the “advice” you hear on how to invest?
• Do you value peace of mind over missing out on the upside of the market?
• Do you want to provide security for your family if you die prematurely?
• Does stock market volatility make you anxious
• Are you afraid of outliving your retirement assets?
• Do you want a clearly defined, easy-to-understand path to retirement?

If you answered yes to any of these questions, then is a plan you should consider.

If you are actively involved and disciplined in managing your retirement portfolio or use advisors you trust to provide you with cost effective investment recommendations, then MAP might not be right for you.

The Deferred Income Annuity locks in a guaranteed amount of income to be generated at some future date.  As a result of the payment being locked in, inflation can erode the purchasing power of the income once it is generated.  This is especially true when the income is deferred way out into the future.  Inflation is something to be aware when purchasing bonds or other fixed income securities.  Annuities are no different.

However, the purpose of the DIA product in MAP is to supplement Social Security with guaranteed lifetime income.  The intention is not to try and compete with a globally diversified investment portfolio specifically designed to combat inflation.  The DIA is used is for an entirely different purpose:  To provide protection from outliving your income.

If inflation is a concern, remember that the goal of MAP is to maximize Social Security.  Doing so provides protection against inflation, because Social Security payments are adjusted with inflation.  With MAP, you can expect that as much as 80% of post-retirement benefits will be made up from Social Security.

We recommend you sit down with an advisor and take a comprehensive look at your financial goals.  The advisors listed on our page may earn or participate in a commission on the sale of the Whole Life and/or Annuity Product.  The commission is paid by the insurance company directly (See FAQ on Commissions).  The advisor may also charge a financial planning fee.  Be sure to get clarity on fees and commissions before retaining any financial advisor.

An alternative to MAP would be to establish an investment portfolio constructed of low-cost index funds (offered by companies like Vanguard).  You may be able to do this yourself, without incurring any advisory fee.  If so, and if you have the discipline to save regularly and stick with your plan, this alternative is likely to yield higher returns than MAP.

Not all annuities are created equal.  A lot of bad press condemns the high fees typically associated with Fixed Indexed Annuities and Variable Annuities.  These are not the type of annuities we recommend in MAP.

The annuity used in MAP is a modified version of an Immediate Annuity, which is the most traditional form of a payout annuity, generating a lifetime income stream.  These annuities have no hidden costs.

The Deferred Income Annuity has a deferred payment stream, which allows the consumer to build up “mortality credits” while deferring payments.  The use of mortality credits and deferral of income provide for a higher guaranteed income stream than would otherwise be provided if the payments started immediately.  This annuity also provides for guaranteed lifetime income.  This aspect of the product is commonly referred to as Longevity Insurance, meaning it provides peace of mind that you will not need to worry about outliving your income.

Term Insurance is an excellent, more cost effective solution to provide for an immediate, short-term need for life insurance.  Whole life is generally a better purchase for a longer time-horizon because premiums will eventually be less expensive than the Term premiums, which will continue to increase over time.  In addition, Whole Life products provide cash value, which grows at a faster rate the longer the policy is held.  Cash Value can provide for future retirement income, and offers tax-free distributions up to the cost basis in the policy.

If you’re looking for cost-effective, affordable life insurance coverage, and don’t anticipate needing coverage for long, Term insurance is optimal.  But if you are integrating an insurance policy with your retirement planning needs, then whole life will provide a better long-term return on your investment.

Not all advisors have the same views on insurance policies.  Those that are focused primarily on returns, don’t see the value of investing in a cash value insurance policy. Many advisors will argue they can invest your assets directly in a portfolio that can achieve the same (or superior) returns as the insurance company’s investment portfolio, and as a result, let you keep all the profits.  Some advisors may not value the  other benefits of INSURANCE.  Insurance products provide peace of mind that can’t be provided in a portfolio of stocks and bonds.

We want your advisor to be aware of MAP, but we recognize it’s not right for everyone.  If your advisor has a better plan for you, you should carefully consider the pros and cons of both that recommendation and MAP.

MAP utilizes insurance products to provide peace of mind while also providing a glide path to retirement for those who have little appetite for risk.

Typically, the middle class doesn’t purchase life insurance, and if they do, they purchase lower cost Term Insurance.  It’s not surprising the middle class struggles to find income to buy life insurance, when many are still wondering if they can ever save for retirement.  However, MAP finds a dual purpose for Life Insurance, by also making it a meaningful part of your retirement savings.

The illustrations provided in MAP were developed from a financial projection, by making reasonable assumptions related to debt and asset levels that Americans in this demographic are likely to have.
We are making the following assumptions for a 35 year-old making 75,000 a year:

• $25,000 in existing student loan debt
• $26,000 in starting retirement savings
• $30,000 per year in basic living expenses, adjusted for inflation
• $14,000 per year for housing
• $3,750 per year in other expenses (i.e. unexpected or vacation), adjusted for inflation
• $659 per year in out of pocket medical expenses
• $3,000 annual contribution to 401k plan
• $3,900 annual premium payment to a Whole Life Policy
• $19,000 in annual taxes
• $1,780 in annual student loan payments

These assumptions may not be realistic for everybody, but reflect an average of what is likely to be realistic for most.   Everyone’s situation is different, but with a plan for expense management, and debt consolidation, a significant number of those in the Middle Class can afford to implement MAP.

Hindsight is 20/20, and you never know how much longer you have left to live. You may die unexpectedly and might have been better off collecting your benefits at an earlier date. Depending on your situation, including your current health, you may be well advised to take social security early and not to utilize MAP.

Retirement planning is about making decisions today that your future self will thank you for.  If you do live a long healthy life, you will be glad you waited to take Social Security.

We recommend you sit down with an advisor and take a comprehensive look at your financial goals.  The advisors listed on our page may earn or participate in a commission on the sale of the Whole Life and/or Annuity Product.  The commission is paid by the insurance company directly (See FAQ on Commissions).  The advisor may also charge a financial planning fee.  Be sure to get clarity on fees and commissions before retaining any financial advisor.

An alternative to MAP would be to establish an investment portfolio constructed of low-cost index funds (offered by companies like Vanguard).  You may be able to do this yourself, without incurring any advisory fee.  If so, and if you have the discipline to save regularly and stick with your plan, this alternative is likely to yield higher returns than MAP.

The Deferred Income Annuity locks in a guaranteed amount of income to be generated at some future date.  As a result of the payment being locked in, inflation can erode the purchasing power of the income once it is generated.  This is especially true when the income is deferred way out into the future.  Inflation is something to be aware when purchasing bonds or other fixed income securities.  Annuities are no different.

However, the purpose of the DIA product in MAP is to supplement Social Security with guaranteed lifetime income.  The intention is not to try and compete with a globally diversified investment portfolio specifically designed to combat inflation.  The DIA is used is for an entirely different purpose:  To provide protection from outliving your income.

If inflation is a concern, remember that the goal of MAP is to maximize Social Security.  Doing so provides protection against inflation, because Social Security payments are adjusted with inflation.  With MAP, you can expect that as much as 80% of post-retirement benefits will be made up from Social Security.