Savings2Income Responds to Advertorial, “Converting Retirement Savings to Retirement Income”

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The following is a response to the September 26, 2012 advertorial in the Wall Street Journal, by Savings2Income, expressing differing views on how to convert savings to income.

According to Savings2Income founder, Jerry Golden, “We agree there’s a need for a savings to income approach. We just don’t agree that the advertorial actually lives up to its title.”

Golden pinpoints exactly how the Savings2Income (S2I) planning method differs from the approach outlined in the advertorial:

a.    Converting savings to income is not about financial products but rather about a process or a planning method.

b.    Under the S2I planning method, all retirement savings, including Personal Retirement Savings (those savings held outside a 401(k), IRA, and Social Security), must be accounted for and integrated into the total retirement income solution.

c.    A key part of the process is deferring and controlling taxes. In particular, through appropriate product selection and planning, the process can be under the control of the individual saver/investor, and advisor.

d.    Similarly, lowering fees and loads on retirement savings is absolutely critical to the process, and can be controlled. This is not mentioned in the advertorial.

e.    Guaranteed income can best be provided by monthly income payments from fixed payout annuities, built up in stages over time, rather than through a lump sum purchase. By selecting from a wide variety of fixed payout annuities and the life insurance companies that offer them, individuals can also have access to commutation values (the present value of future payments). In addition, there are a wide variety of options within the payout annuity structure to protect the beneficiary in case of early death of the retiree.

f.    Any solution must complete itself by what we call a “no worry age,” rather than depending on the active management for life by the individual and advisor. And yes, an advisor could retire or pre-decease the investor who might not have full capacity at that point.

Golden Retirement LLC, founded by Jerry Golden to create innovative financial products and services focused on the wealth accumulation and retirement income needs of broad segments of the U.S. population. The company has sponsored the Savings2Income website, and is launching its own registered investment advisor, Golden Retirement Advisors.

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Chris Spring

John Mulqueen
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