Read The Volatility Shield How to Vanquish the 4% Rule Maximize Your Retirement Income eBook David McKnight

Product details File Size 8957 KB Print Length 114 pages Simultaneous Device Usage Unlimited Publication Date March 17, 2019 Sold by  Digital Services LLC Language English ASIN B07PP3T6V7

The Volatility Shield How to Vanquish the 4% Rule Maximize Your Retirement Income eBook David McKnight Reviews

• Most people think that the primary value a financial professional brings to the table is increased investment performance. But the truth is that investment performance normally plays a very minor role in the overall financial success for most retirees. The most important factors that determine success or failure for most retirees is risk mitigation and income tax planning. David McKnight covered income tax strategies in his first book The Power of Zero. Now McKnight brilliantly illustrates risk mitigation in The Volatility Shield where he shows the main character going broke despite very acceptable investment returns and what seems to be a sustainable withdrawal rate.
  
  When I received my copy of the book I decide to read a chapter or two before putting it down and taking it home. Instead, I read it cover to cover in one sitting. It was refreshing that a book dedicated to some pretty hefty financial concepts was written as a financial novella. You actually get emotionally invested in the characters. While the story itself may be a bit far-fetched, the financial concepts are sound. And, most importantly, McKnight refrains from hyperbole which is often prevalent in these types of books.
• This is a tough book to rate as the author is clearly torn between a work of fiction, which he states on the cover, or investment advice, which he also tries to give on the cover with the statement “How to Vanquish the 4% Rule & Maximize Your Retirement Income.” He does a pretty good job as a fiction writer, but not so well as someone trying to disprove the work of Bengen’s 4% rule. The reason is quite simple you cannot improve your retirement by letting the insurance company take on your risk at the much lower rate of return of insurance products with all their expenses. Those who think they can really are just overlooking the math of the situation. Furthermore, the 4% rule specifies you increase your withdrawals to keep up with inflation. Had the author done that to make his fictional story more believable, he would have been broke around 2014 instead of 2019.
  
  I am not going to attempt to fact check every number in this fictional short story, but one particular problem surfaces on page 85 when the author correctly subtracts 30% from $14,500 to get $10,150, then uses $10,500 in the next sentence. Another glaring problem occurs when you compare the return on similar insurance products cash value account between Ted & Jack. In Ted’s case, $60,000 a year for 10 years turned into $685,000. A simple financial calculator puts that return at 2.4%. Then in Jack’s case, he is trying to turn $10,150 (or $10,500) into $375,000 in 20 years which is more than double the previous rate at 5.4%. In my opinion, a bit of a stretch just knowing what drives the earnings of most life insurance companies.
  
  In order to make money, life insurance companies have to keep their clients’ money in essentially risk-free investments. What is a risk-free investment you ask? It is bonds or bond funds almost 100%. If you keep that in mind you won’t be far off when analyzing the risk transfer cost from your money to the insurance company. 2.4% seems quite reasonable, the 5.4% not so much.
  
  Finally, ponder the question, does a product backed by 100% bonds have any chance of improving your chances of “Vanquishing the 4% rule?”
  
  If you can answer the above question you will understand why I only gave this book two stars – which by the way is twice the number I gave the “Power of Zero.”
• This book is very - very interesting and I suggest every one from age of 25 to 65 read this book (multiple times) to truly understand your options for creating FINANCIAL WELLNESS and pre-retirement planning. Get the Power of Zero and Look Before You LIRP. Remember this "The person that does NOT read is NO better that the person who can not read".
• Two of the most dreaded retirement risks the vast majority of retirees have no idea exist, sequence of return and market draw down, are fabulously explained and solved in this very simple and everyday story. The myths of Wall Street like average rates of return, the 4% Rule and their hatred for the “volatility buffer” are all dealt with in a way every person can understand and feel. Ask yourself one question; If what Wall Street and brokers and the government has been telling you is true about retirement planning for the last 50 years, then why is it that 75% or more of all retirees and soon-to-be-retirees are afraid of either not having enough money or running out of money in retirement??? This book tells you WHY and how to SOLVE that problem.
• I have read all of David's books. They all solidify his concept of the Power of Zero.
  Taxes will rise in the future!!!
  Tax deferred investments like 401k and IRA accounts will have their balance taxed when you retire.
  We are living longer, and most of us will need long term care!!
  David's plan will help solve these problems.
  Make the time to read all of his books, I've read some of them more than once.
  You'll be happy you did!!!
• As he has done in previous works, David McKnight lays out a very hard to argue with case for thinking outside the box when it comes to retirement planning, in this latest book. In this compelling story, McKnight makes the case for all serious pre-retirees to embrace a non-traditional paradigm in order to enjoy a truly secure and long retirement.
  
  Robert M. Ryerson
  Certified Financial Planner
• This eye opening book brings a new twist to retirement planning. It enlightens readers with an entirely new concept of planning for the future. These concepts are easy to understand and implement. If you want (or want your children) to be far ahead of the game, this is must read.
  Mr. McKnight has done it again.
• Great read! Love the story telling way to explain these retirement planning techniques. I am a retirement planner and use David’s principles every day in my practice. And this book, like the POZ, are very helpful not only for consumers, but also I think should be required reading for financial advisers.