This week on The Money Puzzle Podcast Chris Vaughn & Eric Douglas discuss where retirement income comes from to fill the gaps. Once you have a good financial plan, specifically if you’re approaching retirement or you’re already there, you need to have a good income strategy or an income plan. So we wanted to talk about those a little bit today.
Speaker 1 [00:00:01] All right. Welcome back to the Money Puzzle with Family Wealth Planning Partners. I’m Chris Bond. This is my partner, Eric Douglas. As promised, last week, we talked about some market updates and inflation and things that are going on. And we said, how do you deal with that? Well, you have a good financial plan specifically if you’re approaching retirement or you’re already there, you need to have a good income strategy or an income plan. So we wanted to talk about those a little bit today. I’ll kind of start this off by saying that there are really two forms of income that you can have during your retirement years, and we call them permanent, predictable and nonpermanent, non predictable. And it’s very simple. Permanent predictable comes from there’s there’s really only three sources. There are pensions, Social Security, annuities, and we’re talking about income annuities, not investment products. That’s a different animal. Those the whole point is that you can’t outlive that money. The second part, the nonpermanent, non predictable that comes from money that you’ve saved and invested over the years, which is obviously, you know, an area that we focus on a lot. But how do you go about managing those things correctly? And that’s that’s where we want to talk about it today. So, Eric, why don’t you talk about the first one where we talk about trying to manage that gap? We were talking about that before we started. So why don’t you go down that road a little bit?
Speaker 2 [00:01:28] Yeah. So there’s always an art and a science to so many professions, right? And you hear a lot of you hear that term, you know that, well, is it an art or isn’t a science? Well, it’s both. I think the science of putting together an income plan is really around, okay, what are those permanent, predictable forms of income that you have? What is your Social Security if you have a pension, one good for you don’t see too many of those these days. You know, if you have an annuity or something like that that you’re driving income from, those are permanent, predictable forms of income. Very PBI. You know, that’s going to be every month. You know, some people refer to it as mailbox money is going to come in every month is going to be the same amount of money every month. Maybe you have a slight inflation kicker on there, but it’s, you know, what’s coming. And you can bank off of the fact that that amount of money is coming in every day, every month for the rest of your life. The other part of that scientific process is what are you spending every month? Right. Pretty simple. Look at your bank statement. Look at your credit card statement. Average amount over the last six months. How much how much money do you spend every month? You know how much is left in your bank after you spend all of your money. Right. The gap between what your expenses are and what your permanent predictable forms of income are, that gap is kind of where we get into the art.
Speaker 1 [00:02:51] Yeah, absolutely.
Speaker 2 [00:02:52] Because that’s where it’s like, okay, where do you draw from first? How much do you draw from? What is your tax burden? Right, from drawing from your different types of accounts? What is the likelihood of outliving your investments at that point? How much risk is tied to those other investments that you’re drawing? You’re not permanent, predictable forms of income, right? That’s where you really get into the art and that’s where things get a little bit more hazy, I guess. Yeah, it’s the easiest way to take it because, you know, science is proven right. You know, we think about science as, okay, these are the facts, these are the details. There’s not really you don’t want to stray from that process. Well, this is the art. It’s going to be different for everybody. Your your your income plan is going to be different from mine, absolutely different from what needs is going to be different from everybody else’s. And so we have to kind of create that picture or put together that puzzle, if you will, really in that gap. And that’s really what we’re spending most of our time focus on is that gap between your nonpermanent I’m sorry, between your permanent predictable income and your lifestyle.
Speaker 1 [00:03:53] Right. So let’s talk about the you and I both know there are hundreds of different types of income strategy can put together. There’s really probably ten real basic ones and then all the different variations on them. But why are there so many different types? Why is it that this one doesn’t work for everybody? I would argue that it’s more of an emotional thing. There are there are people and there’s some statistics out there to back this up that there are people who just feel more comfortable knowing that they’re probably making less money than what they could opportunity cost. But they know there’s no chance of not having enough money to pay their bills and their lifestyle this month and every month going forward. That’s where you hear about government employees when they’re retired because they have pensions. So they got for the most part, they’ve got Social Security and pensions coming in. They can’t outlive that money. They live happier, quote unquote, retirement years because they don’t have to worry about. Are they stressed out about how. What other reasons other than emotion would drive, why you would use one plan versus another with somebody.
Speaker 2 [00:05:09] How good the salesman is that given that gives you. Yeah. Yeah. That’s probably one. You know, let me go back to to add to your point first. Risk tolerance. You said emotions. I mean, that’s basically risk tolerance. So there is no return without risk.
Speaker 1 [00:05:27] Agree?
Speaker 2 [00:05:28] Yeah, there is no return without risk. There is no return without risk. Let me say it again for those in the.
Speaker 1 [00:05:35] Back, keep driving that.
Speaker 2 [00:05:36] Up because that that’s why we invest in the stock market. The market goes down sometimes. But you know what? You don’t get the returns if the market doesn’t go down. If you take away the opportunity for return, yes, you’re going to reduce risk, but you’re going to reduce your return. Some people are fine with that. Some people are more comfortable with more risk, and they want the higher return possibilities. Most people are probably somewhere in between. But at the end of the day, that’s that’s that art that we’re trying to figure out. That’s that puzzle piece. That’s that puzzle we’re trying to put together is how much risk is appropriate for your portfolio that one is going to get you to where you need to go and to keep you comfortable at the same time and not lose your mind, not pull your hair out. Yeah, watch. Watching what the market does. So to your other question, as far as how people decide, unfortunately, you know, I’m saying in just how good the salesman is for whatever they’re proposing.
Speaker 1 [00:06:30] You’re absolutely.
Speaker 2 [00:06:30] Solutions are but that that that’s what we’re talking about. You know if you go to an insurance guy, guess what they’re going to recommend for your retirement plan. Probably some type of an insurance product. Not that that’s necessarily bad in some cases, but it’s probably not ideal for 100% of your retirement. If you go to an investment guy, guess what? They’re going to recommend all investments, right? They’re going to say insurance is bad. The answer, truthfully, is probably somewhere in the middle, a good blend, a good mix to counter, you know, the risk of the market because you don’t want to fully expose yourself to the market, but you also want to be able to you know, you need protection, but you also need to participate in the upside. And we’ve talked we’ve done numerous shows about the myths in retirement that we see all the time. Everyone thinks you need to get ultra conservative when you go to retire, and that’s just not the case. If you retire at 65, we have to plan for you to live to 95 or more or more. If you have a 30 year time horizon. Guess what, folks? That’s a long term growth time horizon. It is. You need you need long term growth opportunities, which means you need exposure to the market.
Speaker 1 [00:07:39] So what you’re basically talking to.
Speaker 2 [00:07:41] Unless you have a lot of money saved up and you can. Yeah, okay, you’re down the level of risk in your portfolio.
Speaker 1 [00:07:46] So we joked about, you know, winning that that absurdly high Mega millions jackpot last week on our last show. Yeah. If you’ve got that kind of money to work with, you can put it in extremely low risk investments and it will still provide huge storms and sources of income because you’re dealing with such a big number in the first place. Most of us don’t have that luxury. So you were kind of hinting at what we call a bucket strategy. Yeah. So, you know, real, real 100,000 foot view of bucket strategy is where you take different portions of your savings and you partition them off for different periods of time. So a real rudimentary bucket strategy would be you have a spend now bucket. So that’s the money you’re living off of the investments and that should be extremely low risk. Right. And I’m talking investment risk, not inflation risk. Correct. Because those two are always inverted to each other. You should have another bucket that’s more your your longer term. So that’s going to be invested a little bit more aggressively because you’re not going to use that for a certain number of years. Then maybe a third bucket or a fourth bucket. That’s where this is way out. This is if I live past 80, 85, 90, however you want to set it up or maybe a and I like to call it a wild hare bucket. This is a sum of money that we don’t ever plan on using. We don’t need this money. But if we do get a wild hare, you know, if you see some crazy thing on on TV and you say, I got to go see that sometime in my life, you’ve got a fund to pull it from and that would be invested a little bit more aggressively. But you can take a bucket strategy and you can really drill down deep and you can get highly specific, which is something that you and I both enjoyed doing because that’s where the real art comes in. But why don’t you walk us through some of the variations on that?
Speaker 2 [00:09:35] So absolutely. So we can’t do any of this without understanding what your goals are. And I say we need to understand in most cases you need.
Speaker 1 [00:09:47] You need understand.
Speaker 2 [00:09:48] Right? So, so many times like, well, you know, I want to retire in four or five years. Okay? What do you.
Speaker 1 [00:09:54] Want to do? What?
Speaker 2 [00:09:56] I don’t know. Well, not having any thought about it. Okay. How much do you plan to spend? How much do you plan to travel? Do you plan to buy cars every five years? What? How often you want to buy a new car? Things like that. That. You know, most people don’t think about vacation homes and things like, you know. So honestly, we spend a lot of time encouraging people to think big.
Speaker 1 [00:10:17] Yeah.
Speaker 2 [00:10:18] Tell me what you want to do. If you could plan an ideal retirement, what are the things that you want to have included? Now, maybe we can pair you down a little bit, but you need to start thinking a little bit big and so we can try to build in some of these different things. But ultimately it starts with how much money you’re spending that that your lifestyle. Now, when I say lifestyle, I’m trying to get people to think big because I want them to think about maybe spending more money in retirement. Because another myth that, you know, people have in retirement is I’m not going to spend as much money. False. You will spend more money.
Speaker 1 [00:10:48] Spend more? That’s right.
Speaker 2 [00:10:49] When you retire, what? You have a lot more time or. I’m sorry. What do you have a lot more of? It’s time. How do you fill your time?
Speaker 1 [00:10:56] You go do fun things.
Speaker 2 [00:10:57] And what do fun things do?
Speaker 1 [00:10:59] They cost a lot of money.
Speaker 2 [00:11:00] They cost a lot of money. You don’t do fun things without spending money.
Speaker 1 [00:11:04] Fun is expensive.
Speaker 2 [00:11:06] There’s only so much fun you can have, you know, swirling around in your garden all day, every day. I got a father in law that loves to do it, but and he’s been he spends probably more time than most folks I know doing that. But at some point, you know, that you’re you’re going to need to spend money on things. So we need to understand what your lifestyle looks like. From there, we can start to do some some calculations. Okay. This is about the amount of money that you’re spending each month, each year, and then we start to siphon off. Okay, well, if that’s how much money you’re spending each month, we’re going to siphon that amount of money for the next two years, basically off to the side. That’s kind of that short term bucket that you talk about that you don’t want to have exposed to market risk. It is exposed to inflation risk. You said that there is there is still.
Speaker 1 [00:11:50] But that’s why you only partitioned off, say, maybe two years worth of it.
Speaker 2 [00:11:54] But typically there’s less risk related to inflation. Of course, I’m saying that with, you know, inflation rates being super high, but traditionally there’s less inflationary risk than there is market risk over the long term. Right. So but you need to be able to feel comfortable knowing that when you go to bed every night, no matter what’s happening in the market, your expenses are paid for for two years. Okay. That that’s the first bucket, right? Pretty simple. Not really much. Not too terribly much out there right now.
Speaker 1 [00:12:22] That one’s the easy one.
Speaker 2 [00:12:23] Yeah. So the second buckets, more of that intermediate term bucket and that’s where we start getting into the types of things that we should do with that amount of money. So we’re still taking that same amount of money that you’re spending. What’s your lifestyle look like? And we’re going to adjust that for inflation because this is your second bucket. This is that kind of three to maybe eight year time bucket, you know, a 3 to 8 year bucket. So you don’t need it in the next two years, but you need it three years from now and you’re going to need eight years from now, right? So that’s kind of your intermediate term bucket. We need to expose you to some type of risk because we can’t have too much inflation risk in your portfolio. We need to hedge against that. So we need to get some type of return. But you do need that money in the somewhat near future, so we can’t tie it to long term growth risk. Right. We don’t want those assets tied to what’s happening in the market this year. Right. That’s too much market risk. We have to pare that off. So this is when we talk about risk tolerance or hedging, this is where we get into hedging the risk in your portfolio in a number of different ways. And this is, you know, really where the art comes in because what do you do with that second bucket? Now, we can do all kinds of different things. Ultimately depends upon what your risk tolerance is and how much volatility you can stomach, or I should say, how much protection you feel that you need. Yeah.
Speaker 1 [00:13:40] I think one of the the things that I’ve heard so many times, especially when I’ve had people who are working with other advisors that, you know, their attorney or their CPA or something has said, Hey, can you have a look at this? They’d like a second opinion. What I’ll to frequently see is you’ve got people that don’t have that kind of income strategy set up, and what they’re doing is they’re chasing return. So, you know, they’re working with somebody who is saying, oh, I think I can consistently get you, you know, 6%, 7%, 8%, whatever. Well, that’s all fine and dandy until the markets do what they have done over the last year. And that’s where they get panicked and that’s where they get emotional. What you’re saying is that there will be parts of your portfolio that will be that volatile, but that’s the money that you’re not going to use for 20, 30 years. It’s okay. You’ve got lots of time to recover. In fact, you’ll probably have a couple three recessions that are going to be painful in that window. That’s okay. The shorter term money, the the money that is say, you know, you said two years out, five years out, somewhere in that window. If you’ve got your money invested in such a way that you’re feeling the full brunt of what the market has done in the first half of this year, that’s not a good income strategy.
Speaker 2 [00:14:58] Agreed is therefore not a good income strategy if you’re planning to retire anytime soon. Right. And you cannot continue with that strategy in perpetuity because when you if. If you’re not already when you go to retire and you’re living on a fixed a much more fixed type of an income, and you have that amount of volatility that completely throws off your entire income plan. And if the market’s down 20, 25%, like it was at one point this year, we’ve got problems. And you can’t expose that level of risk into your overall retirement plan. You just you just can’t.
Speaker 1 [00:15:35] So what would you say? Let me take the completely opposite approach, because there’s a lot of people out there that the mere concept of investing and implying risk to the savings that they’ve got is terrifying to them. I met with a lady. Let’s just say she’s older a few weeks ago, and and she her family wanted me to have a look at it. It’s every penny she’s got is in bank CDs. So. Okay. Yeah, it’s insured. It’s FDIC insured. She’s not going to lose. But she’s also not growing her money. Neither she’s losing huge on inflation. So for the people on the opposite end of that, why is it still important? You know, I think these people get the short term. Why is it still important that they take some of their money, invest it much more aggressively for those longer term? Why can’t they just set aside enough money for that?
Speaker 2 [00:16:28] Well, because the value of that money is not going to be worth the same amount of money in ten years as it is today. If you set aside $100,000 a year ago, that money is only worth less than $90,000 today because we’ve had 9.1% inflation year over year. Right. The value of that 100 K is not going to stay the same. It’s not going to be constant. Yes, you still have that. You’re not losing your dollar, but the value of your dollar is decreasing in value every single day. And so that is a huge, huge risk. I mean, we talk so much about diversity, diversified portfolios, and most people think about, oh, well, what kinds of stocks, what kinds of bonds, what kind of mix between the two. Right. And they think about building a diversified portfolio. Well, there’s also other types of diversity that you want to introduce into your portfolio. Tax efficiency being one, you want different types of accounts because, you know.
Speaker 1 [00:17:26] Take advantage of whatever the tax laws are then.
Speaker 2 [00:17:28] Mm hmm. Absolutely. But if you have all your risk tied up to one type of risk within a portfolio that is a ton of risk in your portfolio, you need to diversify the types of risk within your portfolio as well. You need some market risk. You need some inflation risk, some purchasing power risk. You need some, you know, fixed some some in fixed income risk, you know, tied to interest rates. You need some you need some risk associated with the different types of investments, right? That’s why you diversify investments because there’s a different level of risk with small cap on small cap stocks versus international stocks versus large cap stocks, large cap growth, large cap value. They all carry different levels of risk. That’s why you build a diversified portfolio. You have different types of risk. He needs diversify your risk, the types of risk within your portfolio as well. You can’t have all inflation risk. You can’t have all market risk. You have to hedge against the different types of risks within your portfolio because who knows what’s going to hit hardest at any given moment. You know, we go back to the 4% rule is very common in our industry.
Speaker 1 [00:18:34] Yeah.
Speaker 2 [00:18:34] For those that don’t know, the 4% rule is the 4% rule is you. You save a million bucks and that million bucks is going to derive 4% per year. You’re going to five 4% return every year. So basically you’re going to live off of the 4%, which is $40,000 a year.
Speaker 1 [00:18:48] Which means you’re going to save up $1,000,000 to have a $40,000 a year.
Speaker 2 [00:18:51] Income. So aside from whether or not we think that’s a viable income strategy, I think it’s a horrible one, by the way, for many different reasons. But we’re not going to go there right now. But the point of that, the idea of that type of withdrawal strategy, that 4% strategy, is that you can invest in fixed income investments, bonds and get a 4% return pretty much in perpetuity. Yeah. What are you not getting over the last five, six, ten years?
Speaker 1 [00:19:19] You’re not even getting close to four.
Speaker 2 [00:19:20] You’re not sniffing four. And not only have you been getting really bad yield or really bad interest on your bond, you’re not getting the 4% interest on your bond portfolio over the last ten years, really, because we’ve had such low interest rates. It’s great when you want to go get a mortgage. It’s not so great when you want to get any kind of yield on your savings or fixed income investments. Well, now that we increased rates so dramatically this year, what’s happened to bonds? Bonds have fallen through the floor.
Speaker 1 [00:19:47] Horrible.
Speaker 2 [00:19:48] We’ve talked about that. So the value of your bonds, the value of your portfolio in that type of a strategy has plummeted. That’s not that’s not a well-diversified income plan. Right. That’s all your eggs into one specific type of a strategy. And in anyone who is still using an income plan based off of that 4% rule. Is not having a good year.
Speaker 1 [00:20:10] Yeah, I agree. And I would I would lump into that same category the people who are they have a bond portfolio and they’re living off the dividends. Well, dividends are based upon the profitability of those companies that you hold those stocks. And, you know, if a company, ABC, has paid a dividend consistently year in and year out for 20, 30, 40 years, that’s great. But that’s no guarantee that they’re going to pay it this year. And with all the different problems that we’ve had this year that companies have had to deal with. It would not surprise me if a lot of ones that have paid dividends historically are not paying them now. You’re basing your income on something that is outside of your control. I’m not a fan. Sorry. I think we can probably kind of wrap this one up a little bit, just some some summaries. One of the reasons I am such a big fan of having a good income strategy, we mentioned it earlier. Is it it kind of dictates the amount of risk that you should put into your investments. And to a point and this is where the art comes in, that you mentioned the type of investments that you should have. You know, if you talk to a handyman of some type, they don’t have one or two tools. They have a lot of different tools because they don’t know which ones they’re going to need on this job. This is really no different. There’s a lot of reasons for a lot of different things to be involved. That’s that’s the art part of it. Some of the other things that I would say would be there is a peace of mind that comes along with knowing it’s in my plan for the stock market to go down. It’s in my plan for inflation to go up. I can count on one hand the number of people that I have talked to this year that are clients of ours that have been panicked because of the market.
Speaker 2 [00:22:01] Right.
Speaker 1 [00:22:01] Very few. And those are the people who are there emotionally anyway. I mean, some of us are like that. We just can’t help it. And all you have to do with everyone, I must say, remember, we built this it we we knew it was coming. We just didn’t know when. So this is all part of the plan. You are still in great shape and you can just see the the the stress bleed off of them when you have that conversation. That’s the value of having an income plan is some semblance of knowing. It doesn’t really matter what the markets do. It doesn’t really matter what the politics do or what the taxes do. I have a plan that’s designed to work around that and still get the lifestyle that I want, and it doesn’t really matter how long I live, the plan is still going to be able to take care of me.
Speaker 2 [00:22:47] And hopefully live a really long time and I can enjoy the fruits.
Speaker 1 [00:22:50] Of that. Right. You worked hard for what you’ve got. There’s a way to enjoy it. So I my opinion, if you are within ten years of your retirement and you haven’t already worked out at least the rudimentary part of what your income plan would look like, you need to get on that. If you are getting ready to retire and you haven’t already done this, that’s your next step. And if you’re already retired, you know what? You’re not committed to doing it this way forever. Sometimes some little tweaks can be made that will really improve your situation. Yeah. So what else would you want to add to that?
Speaker 2 [00:23:27] Got a plan?
Speaker 1 [00:23:28] Yeah. Get a plan.
Speaker 2 [00:23:29] It’s. It’s boring, right? It’s not sexy. But the planning, it all comes down to planning. Having a plan in place, though. Those that you know, those that failed to plan or planning to fail. Yeah.
Speaker 1 [00:23:40] I like that.
Speaker 2 [00:23:41] Yeah. I’ll give you a and this is I had an accident this morning. I had a sad conversation this morning with a lady. She called in. She was just kind of looking for some information. She’s already retired and she’s looking to, you know, gather information about, you know, moving into a senior living facility. And she’s never done any type of planning before. I didn’t get her age, but she was if I had to guess, late seventies, maybe. But she was very hesitant when I started talking about, okay, well, this is what we need to do to move forward and say, Well, I was just trying to gather some information. I’m not looking to move into the facility until next year. Okay. But do you know how viable it is for you to, you know, do you have the money saved up? What are what steps to be taking with that? And she was like, well, I don’t know. I’m just I’m overwhelmed right now. I need to, you know, I need to think about it and, you know, and I’ll probably won’t do anything until next year when I’m ready to move. Okay. She’s going to have a serious problem next year.
Speaker 1 [00:24:36] Yep, that’s right.
Speaker 2 [00:24:37] And based on a couple of the numbers that I got from her, she is she’s not well prepared at all. And she’s going to have a serious issue next year. And so, you know, I’ll follow back up with her and try to get her back in. But, you know, it’s sad when you talk to folks like that, but you don’t want to be that person in that position because at some point, if you fail to plan for a long enough period of time, that plan will fail. Yeah. And you will have a massive, massive problem later on down the line. I know it’s really hard to convince 50 year olds. 40 year olds. Think about what’s going to happen to them when they’re 70, 80 years old. I’m the same way you talk to me in college about what’s going to happen when I’m in my forties.
Speaker 1 [00:25:18] That’s old.
Speaker 2 [00:25:19] I’ll be on my deathbed probably by then. Right. Well, guess where I’m at right now.
Speaker 1 [00:25:22] Yeah, exactly.
Speaker 2 [00:25:22] And I still feel like I’m in college. I still feel like I have the entire world ahead of me. Made me less so now than I did then. But the point stands. It’s really hard to think long term sometimes. And I get that. And I very much appreciate that. But if you don’t plan long term, you will fail.
Speaker 1 [00:25:38] You’re going to get bit. It’s just a matter of.
Speaker 2 [00:25:40] It’s just a matter of when and in. Typically when it comes back to bite you is when you’re in the most vulnerable position. Typically that that’s why so many people prey on old and elderly people. And it’s very, very we hear the sad stories all the time. They get sold products you don’t need. They can take advantage of. They lose money. Right. They trust the wrong people. If you don’t plan for that in advance and you’re not and you don’t have the infrastructure in place to take care of those things, then you get taken advantage of and you know, and you don’t want to be that person. So they had nothing else to add on top of that.
Speaker 1 [00:26:14] So I think the main thing here is if you don’t have a plan, please call us. We’ll be more than happy to sit down and talk to you. Look at your current situation. I think going back to something that Eric said, you really do need to have at least some sort of a picture of what you want your life to look like. You got it. You got to put some goals together. Even if those goals are just I want to have a nice cash flow that I don’t have to worry about. If I want to go do something, I can, you know, put together some of those goals, give us a call. We’ll be more than happy to talk to you and kind of help you figure out how to put that plan together. But to Eric’s point, if you put it off, if you wait till next year when you were going to do something anyway, you’re too late. Yeah, you need to get that done before those events happen. So that’s all I’ve got to say on income planning. Everybody needs an income strategy. No way around it. So, Eric, you want to sign us off?
Speaker 2 [00:27:09] Give us a call. If you don’t have an income strategy or any type of a plan whatsoever, follow to 205 to 1 zero. Even if you do have a plan, you want us to give you a second look at it and talk about how feasible or how viable it is for the long term. Once again, give us a call visit. Visit our website FWB Partners dot com. You can even schedule a call right there from the website. Really simple. Appreciate you watching. Appreciate you listening. If anything that we say here today resonates with you or any friends and family, please feel free to share our content. We greatly appreciate it. Until next time. The information given herein is taken from sources that IFP Advisors LLC doing businesses, independent financial partners, IFP, IFP Securities, doing business. This IFP and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and or legal advisor before implementing any tax and or legal related strategies mentioned in this publication, as IFP does not provide tax and or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors. This report may not be reproduced, distributed or published by any person for any purpose without AFP’s express prior written consent. Securities offered through IFP Securities, LLC doing business as independent financial partners, IFP Member of FINRA and SIPC. Investment advice offered through IFP advisors doing business as IFP a registered and investment advisor, IFP and Family Wealth Planning Partners are not affiliated. The information given herein is taken from sources that IFP Advisors LLC doing business as IFP, IFP Securities, LLC, doing business as IFP and its advisors believe to be reliable. But it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and or legal advisor before implementing any tax and or legal related strategies mentioned in this publication, as IFP does not provide tax and or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation or needs of individual investors.