Smart Is The New Rich is the indispensable retirement guide to winning financially in the "New Normal." All-time low interest rates mixed with all-time high stock markets have put retired investors and those near retirement into the cross hairs of history. Experts agree: The markets can rise, but something has to give at some point. Where will you be when the music stops? In retirement, there are no "do overs." Smart Is The New Rich reveals your risks, considers the alternatives, and helps zero in on practical solutions.
Published by: IQ Wealth Press
Date published: 03/29/2013
Edition: 1st
ISBN: 098905389X
Available in Paperback
IQ Wealth Management
Financial Advisor
Steve Jurich, Retirement Coach, Wealth Manager, and Founder of IQ Wealth Management, speaks more like a favorite professor than an insurance agent, or even a retirement adviser. Unlike the breed of annuity agents who use pressure tactics and tired lures like “free steak dinners” to gain captive audiences, Jurich’s priority is creating more informed consumers. He takes time to make sure his clients understand the range of options available to retirees so they become better educated investors on the whole. That investment of time is a significant one for Jurich (pronounced “Jur-itch”), but he believes the results his clients see in their portfolios speak for themselves. It’s been said that “knowledge is power,” and when that knowledge is applied wisely, Jurich believes it can lead to a desirable destination: lasting wealth. Besides his role as a Wealth Manager (, Jurich is a leading expert on Hybrid Index Annuities and Index Universal Life Insurance ( . He is the Editor-in-Chief of, and host of the popular radio show, Journey to Wealth, on Money Radio. His company, LYON Pension Group, specializes in defined benefits and profit sharing plans for business.
7702 E Doubletree Ranch Road, Suite 300
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480-902-3333 is a privately owned website published by IQ Wealth Management, an accredited member of the Better Business Burueau with an A + rating. Owner and founder Steve Jurich is a Certified Income Specialist™ who has been counseling retirees since 1994.
7702 E Doubletree Ranch Road, Suite 300
United States

Most people want to simplify their finances, not make them more complicated. But planning for 30 years of income is far more complicated than previously thought. It turns out that the “buy-and-forget” portfolio of the old days is no longer the simple solution it once was. The same investment strategy that can get a person to retirement, is often a poor strategy to getting through retirement.
Think about it—previous generations had pensions. Bonds paid 6% to 7%. The average person spent only 15 years in retirement before resting in peace. The math was pretty simple. Income planning was not all that difficult. There were no textbooks on the subject.

Welcome to The New Normal
Today, interest rates on bonds range from 1% to 3% for high quality bonds. The shuffle board and martini’s of the past have been replaced with exercise, better diets, and purified water. People are living into their 90s more frequently.
What is today’s biggest financial risk in retirement? Early depletion of capital. A $1 million portfolio withdrawing the equivalent of 5% ($50,000) annually from 2000 to 2010 could have been drained to less than $250,000 in ten short years due to cyclical bear markets in 2001 and 2008. With 20 more years to go, the problem is obvious. When an investor shifts from contributing to investments and starts withdrawing from them instead, bad things can happen.
Studies reveal that retirees are more concerned with running out of money than any other financial issue. Ten years ago, the greatest fear Americans had was “dying” according to research by Cerulli & Associates, the Boston-based research and consulting firm. Today, retiring Americans state that their biggest fear is running out of money—and being forced into a form of poverty later in life.

How long will your money last? Do you know? You should. Research by a leading USA accounting firm (Ernst & Young) indicates that today’s retirees now face up to a 56% chance of income failure in their lifetimes¹, due to withdrawing against low interest rates, future inflation, and volatile markets. When banks paid 6% and retirements lasted 15 years, planning was easier.

Today, interest rates have been cut in half and retirements have doubled in length.
When banks pay nearly zero, and retirements last more than 30 years, income planning becomes the most important aspect of retirement planning for many. Markets may rise and fall, but income that is reliable, durable, and constant requires planning.
A properly designed income portfolio, incorporating guarantees from legal reserve insurance companies combined with investment growth assets in separate “buckets” can simplify and fortify a retirement portfolio. This is the foundation of the IQ 4 Bucket Retirement System™.

Why Annuity Ladders Are Replacing Bond Ladders
Modern day annuities can pay the equivalent of 5% to 9% income for life. No bond or mutual fund can do that. Certain types of annuities can generate growth, but in general, annuities are at their best when used for their intended purpose: to perpetuate income in retirement. A properly designed annuity strategy can be the practical anti-dote to your 3 biggest risks in retirement: Longevity Risk, Income Shortfall Risk, and Sequence of Returns Risk.
As a younger investor, an annuity strategy may not have been on your “to do” list. At younger ages, optimism for stock market performance for most of us is high. Then, after a few bear markets, reality sets in. In the accumulation phase of retirement most investors to think “tall” rather than “long.” Once retirement hits, and “decumulation” begins, you need income either right away or at a specified date and in a specified amount. You want your money to last a long time and pay you without interruption through up, down, and sideways markets. Bonds are no longer up to the task. Annuities have arrived.

According to Professor David Babble of the Wharton School of Business:
“The consensus of the literature from professional economists is that lifetime income annuities should definitely play a substantial role in the retirement arrangements of most people. How great a role depends on a number of factors, but it is fair to say that for most people, lifetime income annuities should comprise from 40% to 80% of their retirement assets under current pricing. Generally speaking, if a person has no bequest motive, or is averse to high risk, the portion of wealth allocated to annuities should be at the higher end of this range.”
– Professor David Babbel Wharton School of Business, University of Pennsylvania

In the past, bond ladders played an important role in retirement planning. Today, the interest rates on quality bonds is far too low to support a credible retirement plan. Annuity ladders can be more effective.
A bond “ladder” is simply a coordinated and portfolio consisting of bonds with timed maturity dates. Each bond pays interest along the way and then matures. When it matures, the cycle is repeated. Is it kind of a pain? Yes, to be honest. Even when interest rates are high enough to support bond ladders, they are work intensive. For retirees looking to make life easier, do you want more headaches or less as you get older?
A properly designed annuity ladder can provide more income with less work and less worry. At IQ Wealth Management, our expertise lies in designing an income portfolio using top quality annuities from highly rated companies. The annuity “ladder” can pay you ever increasing income to battle inflation at contractually guaranteed rates of income.
To learn how an annuity strategy can add more income to your financial plan with less risk and lower cost, call us today. (888)310-1776. We’ll personally take the time to answer your questions and advise you on your best options.

©Copyright 2014 by Steve Jurich

¹Ernst & Young/Prudential, 2012 “Should Americans Be Insuring Their Incomes?”