Take Point on Retirement

This is what I am screaming!! DON"T USE BONDS and BOND FUNDS in your portfolios!!! It's Wall Street's LIE!!!!

# WHAT IS THE "SAFE" PORTION OF YOUR RETIREMENT PORTFOLIO REALLY COSTING YOU?

Many retirement portfolios allocate a significant percentage to bonds for **stability, diversification and reduced market risk**.

But there are two important questions every retirement investor should consider:

**1. What has my bond allocation actually earned?**

**2. What am I paying in advisory fees to own and manage it?**

# # THE FACTUAL 10-YEAR BOND RETURN DATA

The Bloomberg U.S. Aggregate Bond Index produced the following calendar-year returns from 2016 through 2025:

| Year | Bloomberg U.S. Aggregate Bond Index |
| ---- | ----------------------------------: |
| 2016 | +2.65% |
| 2017 | +3.54% |
| 2018 | +0.01% |
| 2019 | +8.72% |
| 2020 | +7.51% |
| 2021 | -1.54% |
| 2022 | **-13.01%** |
| 2023 | +5.53% |
| 2024 | +1.25% |
| 2025 | +7.30% |

**10-Year Annualized Return: approximately 2.01%**

Over those ten years, **$100,000 would have grown to approximately $122,000** before considering any advisory fee that may have been charged on those assets.

# # NOW COMPARE THAT WITH A HYPOTHETICAL FIXED INDEX ANNUITY STRATEGY

Consider an S&P 500 annual point-to-point Fixed Index Annuity illustration with:

**0% floor**
**100% participation**
**10% annual cap**
**No spread or strategy fee**

Using the S&P 500 price-index returns for the same calendar years, the hypothetical FIA crediting results would have been approximately:

| Year | Bond Index | S&P 500 Price Return | Hypothetical FIA Credit |
| ---- | ----------: | -------------------: | ----------------------: |
| 2016 | +2.65% | +9.5% | **+9.5%** |
| 2017 | +3.54% | +19.4% | **+10.0%** |
| 2018 | +0.01% | -6.2% | **0.0%** |
| 2019 | +8.72% | +28.9% | **+10.0%** |
| 2020 | +7.51% | +16.3% | **+10.0%** |
| 2021 | -1.54% | +26.9% | **+10.0%** |
| 2022 | **-13.01%** | -19.4% | **0.0%** |
| 2023 | +5.53% | +24.2% | **+10.0%** |
| 2024 | +1.25% | +23.3% | **+10.0%** |
| 2025 | +7.30% | +16.4% | **+10.0%** |

# # # THE 10-YEAR RESULT

**Bloomberg U.S. Aggregate Bond Index**

$100,000 → approximately **$122,000**

Annualized return: approximately **2.01%**

**Hypothetical 0% Floor / 10% Cap FIA**

$100,000 → approximately **$213,000**

Annualized credited return: approximately **7.88%**

This historical-period illustration also highlights an important distinction: in 2022, when the Bloomberg Aggregate declined **13.01%**, the hypothetical FIA strategy would have received a **0% credit rather than participating in the index decline**, subject to the assumptions above.

# NOW CONSIDER THE COST OF A 1% ADVISORY FEE

If you're paying an advisor approximately **1% annually** on the portion of your retirement portfolio allocated to bond funds, that fee can consume a meaningful percentage of an already modest return.

But the bigger issue isn't simply the fee you pay this year.

# # IT'S THE OPPORTUNITY COST OF THAT MONEY OVER TIME.

Every dollar removed for fees is also a dollar that can no longer compound for your retirement.

To illustrate the effect, assume an investment earns a hypothetical **5% gross annual return for 20 years**. Compare that with a hypothetical **4% net return after a 1% annual fee**:

| Starting Allocation | 5% - No 1% Fee | 4% - After 1% Fee | 20-Year Difference |
| ------------------- | -------------: | ----------------: | -----------------: |
| $250,000 | $663,324 | $547,781 | **$115,543** |
| $500,000 | $1,326,649 | $1,095,562 | **$231,087** |
| $1,000,000 | $2,653,298 | $2,191,123 | **$462,175** |

# # # THINK ABOUT THAT.

On a **$500,000 allocation**, a 1% annual difference in net return compounds to approximately:

# $231,000

of ending-value difference over 20 years.

On **$1 million**, the difference grows to approximately:

# $462,000

That's why seemingly small annual fees can potentially translate into **hundreds of thousands of dollars over a 20-year retirement**.

# COULD AN FIA PLAY A ROLE IN YOUR "SAFE MONEY" STRATEGY?

Certain traditional Fixed Index Annuities can provide:

✓ **0% floor** against negative index performance

✓ Growth potential linked to an index such as the S&P 500

✓ **No separate 1% annual advisory fee deducted from contract value** in many traditional commission-based FIA structures

✓ Tax-deferred accumulation

✓ Insurance-company guarantees

This doesn't mean an FIA should automatically replace a bond portfolio. Bonds and annuities are fundamentally different financial instruments and have different liquidity, income, taxation, risk and estate-planning characteristics.

But it does raise an important retirement-planning question:

# "WHAT IS MY SAFE MONEY ACTUALLY EARNING AFTER FEES?"

And perhaps an even more important one:

# "WHAT COULD THOSE FEES - AND THE LOST COMPOUNDING ON THOSE FEES - COST ME OVER THE NEXT 20 YEARS?"

For retirees with substantial assets allocated to the conservative portion of their portfolios, the answer could potentially have a meaningful impact on **retirement income, portfolio longevity and the wealth ultimately transferred to their families.**

---

**Important Disclosures**

This material is for educational and illustrative purposes only and is not a recommendation to purchase or sell any security or insurance product or to replace bonds with an annuity.

The Bloomberg U.S. Aggregate Bond Index is an unmanaged index and cannot be invested in directly. Historical index performance does not reflect investment-management fees, advisory fees or other expenses that may apply to an investor's actual portfolio.

The FIA example is hypothetical and does not represent the historical performance of a specific annuity contract. It assumes annual point-to-point S&P 500 price-index crediting, a 0% floor, 100% participation and a constant 10% annual cap. Actual annuity caps, participation rates, spreads, crediting methods and other terms vary by product and can change.

Fixed Index Annuities are insurance contracts and do not directly invest in the S&P 500 or other market indexes. They may be subject to surrender charges, withdrawal limitations, market value adjustments, rider charges and other contract provisions. Guarantees are subject to the claims-paying ability of the issuing insurance company.

Traditional commission-based FIAs may not deduct a separate annual advisory fee from contract value; however, compensation, product economics and advisory arrangements vary. Fee-based annuities and some advisory relationships may involve advisory fees.

The 20-year fee example is hypothetical and assumes a constant 5% gross annual return compared with a 4% annual return, representing a 1-percentage-point annual difference, compounded for 20 years. It is intended solely to demonstrate the mathematical effect of compounding and does not represent the performance of bonds, an FIA or any particular investment.

Past performance does not guarantee future results.

I’m sharing this again to show 1. Yes I was right ! 2. Why working with an advisor who has been in the game for 30 years is important to the long term success of your retirement plans. 3. To protect you from your emotions. 4. Millions of people have learned this lesson the hard way as space ex now trades at $116 a share and most are deeply underwater on that emotional reaction and FOMO purchase.

Now I would start to dollar cost average into the position over 6 months.

Big name or the right advisor?

When you need heart surgery, you don’t choose the hospital because of its logo—you choose the surgeon you trust.

Wealth management is no different.

An independent advisor often offers:
• Personalized advice—not one-size-fits-all solutions
• Access to a wide range of investment options
• A long-term relationship with someone who knows you and your goals
• Retirement, tax, estate, and income planning—all working together

The name on the building matters far less than the person sitting across the table.

Choose the advisor, not the logo.

For affluent retirees and pre-retirees, the choice is often less about the logo on the building and more about who is actually providing the advice. Large institutions certainly have strengths, but many clients choose an independent advisor because of the relationship, flexibility, and fiduciary approach.
Here are some of the biggest differences:




Independent Advisor
Large Institution
Personalized advice tailored to your goals
Often standardized models and processes
Can often choose from many investment managers and custodians
Typically limited to the firm's own products or approved platform
Usually works with fewer clients
Advisors may manage larger client books
Relationship is with the advisor
Relationship may be with the institution
Often more flexible on tax planning, estate planning, and retirement income strategies
May have more specialized departments but less coordination
Advantages of an Independent Advisor
You hire the advisor—not the brand.
At a large firm, advisors can change roles, retire, or move to another office. With an independent practice, your relationship is typically much more personal and long-term.
Open architecture.
Independent advisors generally aren't tied to a single family of investments. They can often select from thousands of ETFs, mutual funds, individual securities, annuities, SMAs, and alternative investments from many different companies.
Fiduciary commitment.
Many independent Registered Investment Advisors (RIAs) operate under a fiduciary standard, meaning they're obligated to put the client's interests first. (Some advisors at large firms are fiduciaries in certain accounts as well, so it's important to ask.)
Comprehensive planning.
Independent advisors often coordinate:
Retirement income strategies
Tax-efficient withdrawal planning
Roth conversions
Social Security optimization
Medicare planning
Estate planning coordination
Charitable giving strategies
Legacy planning
Rather than treating investments as a standalone service.
Accessibility.
Clients often appreciate having direct access to the person making recommendations instead of calling a service center or working through multiple departments.
What we also do well like the Big Firms because of our partnership with Brookstone!
Large firms also offer meaningful advantages:
Extensive research departments
Strong technology platforms
Global brand recognition
Large lending and banking capabilities
Specialized institutional resources
Broad product availability in many cases
For some clients, especially those who want integrated banking, lending, and wealth management under one roof, these can be compelling benefits. WE OFFER THIS THROUGH SCHWAB AND PROVIDE ALL THE SERVICES
The Better Question
Rather than asking:
"Should I work with an independent advisor or a big institution?"
Ask:
Who will actually be managing my money?
How are they compensated?
Are they acting as a fiduciary?
How often will I hear from them?
Do they provide tax and retirement planning—not just investment management?
Do they have a disciplined investment process?
Will they still be my advisor five or ten years from now?
A Client-Friendly Way to Explain It
One analogy many clients relate to is:
"If you need heart surgery, do you choose the biggest hospital because of its name, or do you choose the surgeon with the experience, judgment, and bedside manner you trust? The hospital matters—but the surgeon matters more. Wealth management is much the same. The logo on the building is less important than the advisor sitting across the table."
For someone choosing between a quality independent fiduciary and a large national firm, the quality of the individual advisor, the depth of the planning process, and the ongoing relationship are usually more important than the size of the institution behind them.

There really is no advantage to the big firms

ITS JUST A NAME

Get help !

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