Tucker Advisors, one of the nation’s largest insurance field marketing organizations, recently held a national training conference for top insurance producers in Littleton, Colorado.
The keynote speakers included Karlan Tucker, CEO, Tucker Financial Solutions and Tom Hegna, PBS TV host and best-selling author of “Don’t Worry, Retire Happy.”
Tucker and Hegna reviewed retirement topics including income planning, annuities, and happiness in retirement.
According to Tucker, most retirees are concerned with “outliving their life savings, because they [retirees] don’t know how long they’re going to live.” Hegna agreed, “The long-term care threat…can wipe out your life savings.”
To lower longevity risks, Tucker recommends that an individual self-fund a pension with their 401K accounts. An individual can create a pension by converting a 401K with a fixed index annuity into “a safe opportunity to grow for the purpose of generating income.”
Hegna recommends that individuals work with a financial advisor to assist in developing a retirement income plan. In his book, “Don’t Worry, Retire Happy” he provides seven simple steps:
Hegna noted that individuals should use life insurance as the most efficient way to transfer wealth.
Tucker recommends fixed index annuities to many of his clients as a way to produce income in retirement. Tucker said, “If you’re going to quit your job, you need income.”
Hegna noted, “Today’s media is all about investing in the market.” Hegna reminds Baby Boomers, “once you hit retirement, you’re in the distribution phase and it’s all about guaranteed income while taking key risks off the table.”
A key to a happy retirement is eliminating or lower the longevity risks. Tucker noted, “An individual doesn’t know how long they are going to live. That’s a longevity risk and most retirees never get the income right. They have a pile of assets. They either take too much and run out of money, or take too little, and then they sacrifice the quality of their retirement.” Tucker said, “Every day I help individuals with retirement income plans. This is the first step in having a happy and quality retirement.”
Karlan Tucker Reviews
Tucker Financial Solutions CEO Karlan Tucker reviews topics on retirement planning, personal finances, fixed index annuities, life insurance, and asset management. Karlan Tucker is a financial fiduciary, radio talk show host, and author.
About Tucker Financial Solutions:
Tucker Financial Solutions, a retirement planning, financial advisory, and investment firm, specializing in fixed index annuities, life insurance, asset management, and college funding. Tucker Financial Solutions, founded in 1991, is located in Littleton, Colorado. Tucker Financial Solutions is part of the Tucker companies, which include Tucker Advisors, Tucker Asset Management, and Tucker College Solutions.
Karlan Tucker reviews 7 retirement income planning tips for 2017. Tucker Financial Solutions is a full service retirement planning, financial advisory and investment firm.
1. Hold a year-end review
If you plan to retire in the next five years, or currently retired, December and January is a great time to conduct a review of your retirement income plan. Are you on track? Is your principal protected from market downside? Are you on track to meet your goals? “Every day we meet individuals, who plan to retire within the next 10 years, concerned they will run out of money during retirement. Your income plan must include a plan of reliable and increasing income that will outlast you. How could upcoming life events or employment impact your current plan? Year end is a great time to schedule a second opinion to review your plan,” noted Tucker.
2. Reduce Fees
Research and analyze the fees that are currently embedded in your portfolio. FINRA offers an excellent tool to analyze mutual funds, EFTs and ETNs. Enter the mutual funds, EFTs and ETNs in your portfolio and analyze the net fees for a specific holding period. Typically 10 years holding period provides a good benchmark to costs. “Many times after we provide a portfolio review for a prospective client, they are shocked at the amount of fees and other costs we uncover. Taxes and fees are corrosive to a retirement plan principal and earnings. Minimizing both taxes and fees can provide a more secure retirement,” added Tucker
3. Lower Your Tolerance for Risk
As the Dow attempts to crack the 20K milestone, don’t get complacent and keep a majority of your assets exposed to the market. The stock market appears to have cyclical patterns; its highs and its lows can bring a sense of achievement or despair. Avoid the emotions of the market.
“In 2017, consider taking some risk off the table. Ask yourself: if the market drops substantially over the next several months, how will that impact my retirement income plan? In many cases, a market drop of 10% or greater, can substantially impact the plan. You might consider fixed index annuities as a way to lower the risk and yet provide a retirement income vehicle,” said Tucker. Karlan Tucker reviews portfolios regularly and has found that many retirees are 100% exposed to the market downside – this is a potential retirement income catastrophe should the market drop.
4. Enjoy the Upside, Minimize the Downside
If you want to participate on the potential upside in the market; consider this, fixed index annuities as a way to participate in the market upside yet protect your principal from the market downside. The Financial Research Corporation of Boston noted “no other investment vehicle can rival the income annuity for retirement security.”
“The annualized Dow Jones Industrial Average (DJIA) has average just 3.4% in the last 16 years. You invest your hard earn capital into stock market. You take the risk; but, there isn’t much reward,” added Tucker.
5. Start Preparing for Health Care Expenses and Long-Term Care
Health care and long-term care continue to rise year over year. Start planning now on how to pay for these expenses during your retirement years. Health care and long term care costs are fast ways to exhaust retirement savings, home equity, and other assets. “The odds are high that many retirees will need some form of long-term care. It can financially wipe out a couple’s savings in a matter of months. You don’t have a retirement plan if health care and long-term care is not planned for,” said Tucker.
6. Cut Costs, Save More
Saving when employed is easier than going back to work at age 70 because you didn’t save enough while working in younger years. Retirees who enter back into the work force after retirement are often working for minimum wage because of a lapse in skill set and experience. Find ways now to lower spending: housing, cell phone, cable, college expenses, insurance, automobiles, and etc. Take a lesson from the younger millennials. Millennials are creatively cutting housing, transportation, and entertainment costs to maintain their lifestyles.
“Review all of your household operating costs. What can you lower or cut to help achieve your retirement income goals? Lowering a cable, skipping going out to a restaurant or eliminate a cell phone bill can make a substantial difference. Calculating a 5% annual compound rate while saving $200 per month over 15 years, an individual could have $52,000 in savings,” added Tucker.
7. Avoid Taxes in Retirement
Income taxes and real estate taxes in retirement are difficult to predict. Many economists believe that the Federal government will need to increase taxes to offset the multi-trillion dollars deficit. If you plan now, there are several ways to get tax free income in retirement. “If taxes rise in retirement, you need a plan to receive tax free income from your Roth IRAs and the cash values of a life insurance policy,” said Tucker.
About Karlan Tucker
Karlan Tucker, CEO, Tucker Financial Solutions
Karlan Tucker is the CEO and Founder of Tucker Financial Solutions located in Littleton, Colorado. He is also a radio talk host and author. He’s been interviewed nationwide on television and radio stations. Since 1991, he and his advisory team have helped Coloradans successfully retire. Regularly he reviews topics on investing, retirement, college planning and taxes.
About Tucker Financial Solutions
Tucker Financial Solutions, a retirement and investment advisory firm, specializes in fixed index annuities, life insurance, asset management, and college funding. Tucker Financial Solutions, founded in 1991, is located in Littleton, Colorado. Tucker Financial Solutions is part of the Tucker companies, which include Tucker Advisors, Tucker Asset Management, and Tucker College Solutions.
Investment advisory services provided through Tucker Asset Management LLC, a register investment adviser. Guarantees are based on the claims-paying ability of the insurance company.
About Karlan Tucker Reviews
Karlan Tucker reviews regularly financial planning, investing, taxes, college planning, wealth management, annuities and asset allocation.
As Karlan Tucker reviews tax strategies he keeps in mind that taxes are our greatest lifetime expense. This means we should do all we can every year to reduce what we owe Uncle Sam so we get to keep more of our hard earned money.
Almost daily Karlan Tucker reviews prospective client’s portfolios to assist them in developing retirement income plans. Taxes are corrosive to both earnings and principal.
Here are ten strategies that will save you tens of thousands to millions in taxes over your life depending on your annual income.
Fund Roth IRA’s – Tax free income
Fund Life insurance then borrow the cash value tax-free. The death benefit will pay of the loan resulting in tax-free income.
Fully vested Bonus Annuities will pay up to 50% of the taxes in your traditional IRA’s using the bonus the Insurance Company gave you in exchange for managing your money. This also stops up to 50% of your RMD’s at age 70.5 and beyond.
Move to a state with no state income tax
Invest in rental properties to take advantage of the tax deductions
Purchase tax free municipal bonds
Purchase a QLAC annuity – They don’t have RMD’s reducing your taxes
Own life insurance – The death benefit is tax free – your heirs then can use it to pay the taxes in your tax infested IRA’s they just inherited.
Keep all your tax deductible expense receipts then deduct them from your income. Every year people pay taxes on income they didn’t get to keep as a result of poor record keeping
If you collect Social Security prior to your full retirement age, which for many is age 66, and continue to work, your wages will cause your Social Security income to get taxed. Be careful to coordinate when you take SS with when you actually quit working.
For the full details of every strategy above please call us to schedule a complimentary visit.
Tucker Financial Solutions 303-734-1234
Karlan Tucker has been helping his clients save taxes and be prepared for retirement for the past 35 years.
If something you thought to be true turned out to be exactly the opposite, how soon would you want to know about the actual truth? It was once believed that the world was flat, and that the earth was the center of our solar system. It was also believed that atoms were the smallest particles in existence. These once-held truths are hardly given a second thought today. Our “new” way of thinking is the result of many years of advanced discoveries and facts being passed from generation to generation. But imagine how hard it must have been to grapple with the idea that one could actually sail around the earth rather than falling off the edge of it. People were mocked, ridiculed, and even persecuted for an idea so preposterous as the sun being the center of the solar system instead of the earth.
Fast-forward several hundred years. Although it now seems almost laughable to reflect on this way of thinking, we must not forget the human process of wrestling with truth, particularly when it goes against what we have been taught for much of our lives. Decisions become exponentially harder to make when they go against ingrained thought patterns.
Investing is no exception to this rule. When it comes to choosing our investments, the same mental challenges are present that were there hundreds of years ago. When choosing the best vehicles to invest our retirement funds, what we have been taught may or may not be true. We owe it to ourselves to perform the proper due diligence and consider the best place to invest our money in this ever-changing economic environment. Below are three suggestions that will help serve as catalysts to begin this process:
Do not let your emotions get in the way of your investing. While this may be easier said than done, it is vital to making the best financial decisions. You need to base your financial choices on factual, sound evidence and not conventional wisdom. When you notice your emotions beginning to dictate your decisions, take a step back for as long as you need to gain composure. Remember, it was conventional wisdom that sent stocks down almost 50% during the great recession.
When doing research, avoid publications that are clearly biased. When a magazine is littered with advertisements from mutual fund companies, it is probably going to be a pro-mutual funds publication. Not everyone is a financial expert – just because someone has a slew of letters behind their name doesn’t mean they know everything. Be aware of extreme language. When people start describing investments as a sure thing, bullet-proof or the worst idea ever, it could be a sign of a biased point of view.
Perfection does not exist. If an investment existed that was entirely safe, 100% liquid and could outperform the market all the time, there would be no need for diversification. Everyone would simply place all of their money in this type of investment. This perfect investment vehicle simply does not exist. So remember: If something appears too good to be true, it probably is.
Starting from the bottom, Karlan was born and raised on a dairy farm in the poorest county in Michigan, his childhood memories mostly of weeds and work. As a boy, it was a life he loved, but it was not without difficulty and hardship for his family. When Karlan was 16, his father’s failing health forced their move to Arizona for a much-needed change of climate. The family farm in Michigan was sold, thus creating, for the first time, a modest nest egg for his parents. Karlan’s father eventually succumbed to his long battle with Chronic Farmer’s Lung, an incurable respiratory disease that literally took his breath away. Karlan began looking after his mother’s affairs, including her financial well-being and retirement savings. It was a big responsibility with real consequences. Karlan knew his mother would never be able to go back and re-earn the money if he made a mistake or took too much risk. With his very first client, Karlan’s investment mantra became a version of Warren Buffet’s Rule # 1: “Don’t Lose Mom’s Money!” An investing obligation soon grew into a career, as Karlan carefully applied Rule #1 in helping others grow and protect their hard-earned savings. He formed his first financial services business in 1988, specializing in Long Term Care Insurance and Medicare Supplements. This business quickly grew into Karlan Tucker & Associates (later renamed Tucker Financial), a full-scale retirement planning team. For the past 30 years, Karlan has helped over 5,000 retirees prepare for a successful retirement. So many of his clients have been just like Mom and Dad, ready to retire, sitting on a pile of hard-earned cash and just not sure how to make it last for multiple decades. That’s why the focus of Tucker Financial has not strayed from Rule #1, striving to provide secure income and peace of mind at the core of each retirement plan.
Striving to be an appreciating asset, Karlan has never slowed his learning. Some of his many ongoing associations include Ed Slott’s IRA Advisory Group, Harvard’s Executive MBA Program, The Aileron Institute in Dayton, Strategic Coach in Toronto and The Genius Network in Phoenix. With all this, books are still Karlan’s favorite teacher, as he’s read over 800 books on retirement, money management and investing. Karlan is co-author with Brian Tracy in Tracy’s new book, Success in the New Economy.
Karlan and his wife Angela live in Columbine Valley. While raising three children and building a business, they’ve transformed a dilapidated horse property into a beautiful mountain estate. Now with an empty nest, they stay busy with church involvement, business coaching and beautiful landscaping. In 2005, Karlan and Angela helped form Impact Global Outreach, a non-profit organization that provides community development, education and orphanages in Southeast Asia.
Chris Wharton, Advisor Services Specialist
Chris is a Denver native and attended Littleton High School. He attained his college degree in Bible Studies and accepted a job offer to work as a planning assistant at his father-in-law’s financial practice. Chris became insurance-licensed in 2016, and obtained his Series 65 license in 2021.
In his role at Tucker, Chris handles daily trading and client onboarding. He also monitors and reviews Tucker’s proprietary tactical strategies.
“I enjoy seeing how our strategies can give clients peace of mind, while at the same time providing them stability and growth potential throughout their retirement,” said Chris.
Chris, his wife Carly and their three children currently live in Colorado Springs and enjoy all the outdoor activities Colorado has to offer. They are actively involved with their church, and in their free time, like going out to restaurants and traveling. Chris also enjoys hiking, fishing and skiing.
Lloyd Domingos, Chief Compliance Officer
Lloyd and his family moved to Colorado in 1991. He worked for Fireman’s Fund Insurance for 13 years and joined Tucker in 2001. From 2003 to 2009, he worked for US Bank, and returned to Tucker in 2009.
Lloyd is the Chief Financial Officer at Tucker, the Chief Compliance Officer, and the Director of Operations for the Registered Investment Advisor firm within the Tucker umbrella of companies. Lloyd performs many different daily tasks at Tucker, but one of his most important is monitoring the funds and stocks that Tucker makes available to its clientele.
“I like seeing our clients enjoy the tremendous upside of the market, while still having downside protection, or a floor, which protects their principal,” said Lloyd.
Lloyd and his wife Debby have been married since 1984 and have two sons, both of whom are married now. They have two grandsons and a third grandson is on the way. Lloyd is an Elder at Highlands Baptist Church and is active in the church’s music ministry. He enjoys long-distance running (about 25 miles per week), and following all of Colorado’s teams in the four major sports.
Brad Smith, Senior Advisor & professional coach
Brad’s parents moved their family to Colorado in 1960, and he graduated from Arvada West High School in 1974. Brad and his wife Priscilla lived in Marysville, Michigan, and Schaumburg, Illinois, prior to settling in southwest Denver a decade ago. Brad joined the Tucker team in 2011 following his 30-year career in vocational Christian ministry.
Brad is a member of Tucker’s Client Services division, and he also meets with prospective clients. He is committed to accurately informing people of their many choices when it comes to retirement income strategies. In addition to servicing his own clients, Brad enjoys doing retirement dinner-seminars for many of the other advisors in Tucker’s national network.
Brad and Priscilla’s oldest son Brandon lives with his wife Michelle and their two sons in McKinney, Texas, where he is vice-president of a luxury car marketing firm and Michelle is a tax accountant; Brooke is Brad and Priscilla’s only daughter, and she lives with her husband Adam and their son and two daughters in Tracy, California, where Adam is a managing engineer for Tesla; youngest son Brett is an assistant pastor in Gilbert, Arizona, where his wife Abbi is a nurse, and they enjoy spending time with their son and daughter.
Priscilla and Brad have had the privilege of doing extensive international travel throughout their lives and enjoy comparing notes with others who have also been abroad. His personal enjoyments include tennis, golf, piano-playing, and enrichment reading. On Sunday mornings, Brad teaches a Bible class at a church in Morrison, Colorado.
Chuck Schindel, Senior Advisor
Chuck began his career with 3M Company as a college recruit. Following a rewarding 20 years with 3M and A.M. International, he took early retirement and an opportunity to serve as business administrator for a non-profit ministry.
During the next eight years, Chuck began to develop a heart for retirement-related issues, and in 1994, he joined Tucker Advisory Group as a “retirement” specialist. Chuck considers it a privilege to have visited with hundreds of clients either retired or contemplating retirement, and to assist them with asset preservation and peace of mind for their retirement years.
Chuck and his college sweetheart Becky are fortunate to have three children, all happily married. David, their oldest son, is senior pastor of a church near Nashville, Tennessee. Mike is a family practice physician in Lakewood, Colorado. Shayann is a registered nurse and homemaker. And, almost best of all, Becky and Chuck are now grandma and grandpa 10 times over.
Jaclynn Sornborger, Office manager
Jaclynn was born and raised near San Francisco, California. She worked for the School of Medicine and the Department of Anatomy at the University of California of San Francisco. Relocating to Colorado in 1987, she worked as an office manager in the real estate and insurance fields. She moved to Denver and joined Tucker in 2008 as a receptionist.
She presently works at Tucker in administration, office management, client services and building management. She loves being involved in the many different groups of Tucker Financial and is passionate about all of them.
“Along with longevity comes experience. I am so fortunate to help out each department with any projects they need when they need it” said Jaclynn. “I feel great joy in welcoming, assisting and caring for every client, agent or guest visiting our office or on the phone. In this busy world, a warm person with welcoming words means so much more than just a greeting. One’s faith and a kind heart are essential in this life, and being able to share that with others is such a blessing.”
Away from the office, Jaclynn enjoys live theater, the mountains and traveling to the beach. She loves spending time with her daughter in Denver, and making the beautiful drive to the Western Slope to visit her two grown sons and two grandchildren. She also enjoys reading, movies and loving a tiny Maltese named Einstein.
Ashley Schultz, EXECUTIVE ASSISTANT TO DARREN PETTY
Originally from southeast Minnesota, Ashley moved to Colorado in 2010. She completed her bachelor’s degree at MSU Denver and, soon after, began working in the financial services industry.
As Client Services Lead & Executive Assistant to Tucker Financial President Darren Petty, Ashley assists Darren in delivering a first-class retirement experience, centered around our fiduciary responsibility to each client and their best interests. “I really love what I do here at Tucker,” said Ashley. “Each day presents opportunities to not only serve our existing clients, but also to carefully perfect the artful and communication-rich experience that our new clients appreciate. The most rewarding part of my job is building relationships with clients and my colleagues.”
Outside the office, Ashley enjoys giving back to her community by volunteering at health fairs and participating in charity 5K races. In her travels, she enjoys seeing new places and meeting new people, both around the world and here at home, enjoying all that Colorado has to offer.
Caroline Reed, EXECUTIVE ASSISTANT TO KARLAN TUCKER
Caroline was born in Norfolk, England, and her family moved the to the U.S. when she was 1 year old. After moving frequently across the U.S. with her family during her elementary and high school years, Caroline obtained her B.S. in Communications at Central Washington University. She met her husband in Napa, California, and they have lived in Colorado for a total of 21 years. Of all the places she has lived, Colorado is her favorite.
Caroline worked in the banking and insurance fields before joining Tucker Financial in 2014 as Executive Assistant to CEO Karlan Tucker. She enjoys meeting people for the first time at seminars, and she specializes in micromanaging client accounts in order to simplify processes for them. She also assists in planning and hosting client appreciation events.
“I make sure the needs of each client are met, and that includes being available to talk with them throughout the year about any new needs that arise for them,” said Caroline. “I really enjoy working with clients and helping them retire.”
In her leisure time, Caroline loves downhill skiing, hiking and camping, and enjoying the great outdoors of Colorado.
Darren Petty, PRESIDENT, CFP®, RICP®
Serving as President of Tucker Financial, Darren’s passion is helping people retire HAPPY. To help our clients live life to the fullest, Darren and his team design balanced retirement portfolio that generate reliable income, growth opportunity and tax efficiency.
In keeping current with today’s retirement needs, Darren has earned the designations of Certified Financial Planner (CFP®) and Retirement Income Certified Professional (RICP®). He also holds a Colorado life insurance license and is an investment advisor with Tucker Asset Management.
Outside the office, Darren enjoys spending time with his wife, Sierrah, and their daughters, Londynn and Hayden, enjoying all that Colorado has to offer.
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As Karlan Tucker reviews tax strategies he keeps in mind that taxes are our greatest lifetime expense. This means we should do all we can every year to reduce what we owe Uncle Sam so we get to keep more of our hard earned money.
