Indexed Annuity contributions are part of the distribution process in retirement

Index Annuities Gains

In 2008, the SP500 lost about 40% of its value.  Investors in indexed annuities did not lose a cent which took nearly 4 years for the SP500 to get back to 2007 levels.

For individuals who were retiring in 2008, or had tax qualified accounts in an Indexed annuity and passed away, that was a great deal.   Some use an indexed annuity as the “safe” portion of a portfolio as an asset class


Most indexed annuities have “$0” fees and $0 admin and maint. fees. An estimated 95% of indexed annuities have zero fees associated with their policies unless you add a specific rider for income or death benefit guarantees.  That commission is paid to the agent from the company, it doesn’t come out of the clients portfolio.

Many agents take their commission over a 5 year period, meaning that their commission is <1% annually, which is less than most brokerage account manager’s charge.

Surrender charges

State regulators limit the surrender charges. The highest surrender charge that I can find is 14% in year one (two financial companies), and that is only available in a few states.   Surrender charges in annuities function very similar to Bank CD surrender charges.  If you pull the investment before maturity, you will pay a penalty.   That is why it is called a “contract”.

There is built in liquidity that every policy has by state law.  Usually this amount is 10% annually, and some companies allow that 10% to aggregate (i.e.  if you don’t pull funds for 5 years, you can pull up to 50% of the contract in one withdraw without penalty).


Taxes are the same as any 401k, IRA, or qualified plan (the same thing that the author recommends in the final section).   Suitability practices over the past five to ten years or so have increased substantially to prevent mis-representation by agents or the companies.

 Personalized client investment goals

Not every client is trying to maximize return, some simply want the guarantee that they won’t lose any of their principal, their taxes are deferred, and don’t mind if it’s in a 5- 10 year contract with minimum guarantees.   There are very few annuities that have flexible premiums and allow annual contributions, most are single premium rollovers.   Putting money into an indexed annuity or an ongoing contribution strategies are part of the “Accumulation” process leading to retirement.

Email Connie at or to have a chat with a sr investment advisor to help you reduce your income taxes and protect your cash flow. 408-854-1883

Take advantage of legitimate tax strategies to grow your nest egg as quickly as possible

Do not catch a falling knife but do use tax strategies to grow your wealth which is a more effective strategy than trying increase returns on risky investments. Call Connie Dello Buono to meet our senior financial advisors and wealth managers who have a track record of protecting you especially if the market corrects itself by end of November 2014. 408-854-1883

alpine capital net


Business ownership, real estate and paper assets are your path to wealth building

Business ownership and real estate are the two wealth building asset
classes financial advisers typically don’t talk about (because they
can’t sell them) even though they are essential components to many
wealth plans.

Just to be fair, however, business ownership and real estate aren’t
for everyone either. These two asset classes have their own set of
issues (there is no perfect solution) and require far more active
involvement to create excess returns.

You must have entrepreneurial skills and a deep commitment to your
vision to compete. Additionally, the risks are much higher and the
outcome is less certain. Finally, both of these asset classes
require a higher dedication of your scarcest resource – time.

With that said, if you have what it takes you can gain huge
leverage and tax advantages. There is literally no practical limit
to the mathematical return you can make on investment.

Some entrepreneurs and innovative real estate investors have gone
from zero to financial security in under 5 years starting with
little or nothing – something you can’t do with paper assets.

With real estate and business ownership you are limited only by
your dedication, abilities, and creativity. It is a higher reward,
higher risk path that can be good if you have entrepreneurial
dreams and skills.

One of my favorite ways to manage the risk (something you will
learn more about in future lessons on risk management) is to work
the two paths simultaneously and hedge your bets.

For example, one of my coaching clients has a passion for real
estate and his spouse has a high earning career she loves. He is
building the real estate portfolio for wealth while she supports
current lifestyle with her earned income. They keep their their
expenses below her earnings and max out retirement plans with paper
assets each year.

With this plan they are working two simultaneous paths to wealth –
one through traditional savings and paper assets, and the other
through real estate. Because of other risk management tools we’ve
implemented their risk of failure is so small their ultimate goal
is a question of “when”… not “if”.

Another client is building his wealth through growing two separate
businesses. He also purchased the real estate that his
companies rent and contributes massive amounts annually to
his wife’s and his retirement savings. Each component – his
business, real estate, and paper assets – are individually
sufficient to provide financial security. It is really just a
matter of which one will get there first – not whether he will
reach the goal at all.

Notice how these paths are not mutually exclusive but can be
creatively combined to increase synergy and reduce risk.

You homework is to build these concepts into your wealth plan. Do
you fit one of the two profiles where you can use paper assets
exclusively? If not, how are you going to implement business
ownership with real estate while applying risk management?

Map out your wealth plan. Commit it to writing.


Connie’s comments: I work with a senior financial advisor when I map out financial strategies with my clients which include real estate, business ownership and business structuring, tax planning and paper assets. Yesterday, I shared my real estate experience with a young client who wants to own a business and do real estate investing at a young age of 27. Call 408-854-1883 or email me at to map out your wealth plan.

Earn $5000 per month for 40 years tax free with health benefits

38 female in cal tax free lifetime income retirement at 8percent

Save $8500 per year starting the age of 38 yrs old for 30 years and receive $5000 per month as retirement income tax free with health benefits, access to funds during health threats: cancer,stroke or disability.

Stop waiting to be a lotto winner. There is another way. Start saving electronically each month. Increase your deductions. Call Connie Dello Buono CA Life Lic 0G60621 at 408-854-1883


Some companies are not providing 401k retirement plan

There is a better than 401k retirement plan with tax-free IUL index strategy with zero market risk that grows up to 13% and living benefits added free (access to $1.5M when stroke, cancer, or disability occurs).  If you want to protect your wealth from 50% taxes after accumulation and from market risks, call Connie Dello Buono , CA Life Lic 0G60621 at 408-854-1883.

Since most companies are not providing 401k, some people are choosing a tax-free retirement plan, real estate and other positive income cash flow strategies.  You can better control your retirement savings if you know that your savings will not participate in the downside of the market.

With an index universal life policy, your savings will only participate in the upside potential of the market (SP500). There is flexibility and a higher limit not like the IRA/401k that limits you to $6k per year and anyone from age 0-75 yrs can participate.

You are all invited this Monday at 7:pm at 400 Oyster Point, Ste 120 , South San Francisco to learn how to win the money game and be protected from the following threats in your life:

  • living too long with no retirement savings
  • dying too soon with no protection and no estate you can leave behind with a stroke of a pen
  • getting sick with no access to $1.5M when cancer, stroke or disability occurs

This is my mission to help families maximize wealth, minimize taxes and access up to 70-90% of the face value of their policy when cancer, stroke or disability threatens their assets, income and life.

We are hiring.