Recession Split Strategy

In our recent recession it has been quite a stressful time for those ready to retire or that are already retired.  Let’s face it, if you are in your 20’s it’s no big deal if the market drops by 20%, which by the way since October of 2007 the DOW is down over 20%.  When you are in your 50s, 60s or 70s and you are depending on market returns this recession is putting fear in many. This recession is different than most.  We are in a time when the stock market is not performing but there really is no other alternative.  Bonds are low, bank CDs are paying paltry rates and real estate is certainly too risky for most retirees.  All this and we still have to try to beat inflation which should be in the 4% to 5% range.

If you have been on my blog http://www.kenhimmler.com you know that I have been suggesting that in certain cases it may make sense to use the © Recession Split Strategy.  This is an overview of how it works.

We use an insurance company that issues an equity indexed annuity and pays a bonus.  The bonuses range from 5% to 15%.  This gives us an upfront ability to invest into index options without any out of pocket capital risk. This way over the next two to four years while the economy is working its way through the recession cycle we are splitting the investment into a safe – no risk vehicle while creating an asset allocation model with the insurance companies bonus.

If the markets go crazy and go up then the retiree can have a chance at beating inflation. If the markets go down further and or stay level then the retiree does not put their capital at risk of market volatility. Please understand that while this is a terrific idea it is not for everyone and there are some positives and negatives.

Because this is such a needed concept I have decided to do a teleconference. There is not enough time to organize a physical seminar and there are a lot of clients and blog members that are out of town for the summer. Therefore if you are interested in finding out more about how this concept works we will be doing a sixty minute teleconference planned on July 31, 2008. This teleconference will be at no cost but is limited to the first 100 people to register due to the limitation on our teleconference service. You will have the ability to log into the one hour presentation live and listen in to the conference at your home phone. If you register before July 25th we will also send you the live recorded teleconference so you can listen to it again.

As usual, I am not going to promote any product or any insurance company. This is best for those people who are really interested in learning how to protect and preserve their capital but still striving to outpace inflation. During the teleconference we will also discussing how you can turbo-charge this idea by using your IRA and a ROTH conversion to substantially reduce the income tax effect and increase your net rate of return.

You can also register and if you are unable to attend we will still send you the recording and the video file for you to play at a later time. To register you can go to http://www.kenhimmler.com or you can call our line directly at 941-907-0700 and use extension 106 and you can leave a message with your name, your phone number and your email address and we will send you the registration information.

For more information on financial planning, visit www.iamllc.biz