Q&A

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Name: Louis M.

Location: Salt Lake City, UT

Answer:

The 0% Floor is a contractual guarantee from the insurance company that no matter what the stock market returns in a given year, your plan can never receive less than a 0% return.  This means in 2008 when most portfolios lost up to 40%, your losses are capped at 0%.

Name: Allison Y.

Location: Denver, CO

Answer:

The RELOC™ stands for Retirement Equity Line of Credit.  This feature inside of MPI™ is an open line of credit available to you equal to around your cash value in your plan. You are able to use the RELOC™  for any use, at any age, including accelerated Compounding, early retirement, and emergency money.

Name: Michael J.

Location: Chandler, AZ

Answer:

MPI™ is a Max-funded Option B Insurance contract meaning it has the absolute lowest cost possible. Insurance contract are designed as a “decreasing fee” schedule and index/mutual funds are designed as “increasing/ compounding fee” schedule. MPI™ does cost more to begin the plan than a traditional IRA/ 401(k), however, as your plan grows over time and through retirement, MPI™ can be up to 30x less expensive than an IRA. Dave looks at year 1 only rather than the life of the plan.

Name: Paul G.

Location: Los Angeles, CA

Answer:

Most retirement plans go through 3 phases and how you finish the last phase determines your retirement income. Traditional plans typically accumulate (grow the nest-egg) in more aggressive stocks for the highest returns as the top priority, then they taper off into more security-based options such as bonds for returns around 4%, and ultimately distribute low retirement income (The 4% Rule). MPI™ also has 3 phases but with a focus on the highest distributions rather than fastest growth. Secure accumulation (slow and steady), accelerate through the RELOC™ feature (additional capital available for increased Compound Interest), and then distribute up to 15%. MPI™, because it is designed for retirement income as the priority, can produce up to 4x more income on the same account value.

Name: Kathy W.

Location: Tampa, FL

Answer:

The 4% Rule (The Trinity Study) is the rule of thumb that whatever amount of money that you were able to save in your 401(k) or IRA, the safe withdrawal amount is around 4% to not run the risk of depleting your savings too soon. $1,000,000 in a 401(k) only generates around 4% retirement income.

Name: Jordan O.

Location: Seattle, WA

Answer:

Investments and Retirement Planning are opposites in both philosophy and functionality. Investments have risks and when used for retirement planning have underwhelming results. Retirement plans should be secure and compounding focused. You invest (stocks, small business, employment, real estate, etc.) to make money in order to fund a secure retirement plan. When you try to mix investments and your retirement plan, the 4% Rule or worse is the typical result.