Podcast Episode 172: Mailbag: Variable Annuities, Flipping Houses, and Mortgage Debt
Questions come in all the time about many different types of financial topics, and we use the podcast as a platform to provide information and answer as many of those questions.
On our latest episode of the Money Wisdom podcast, we open up the mailbag and let the listeners determine the direction of the show. As you’ll hear, we get to three questions touching on some pretty common subjects within the world of investing and financial planning.
Carrying a Mortgage Into Retirement
We can show people in an analytical way that it makes sense to have a mortgage payment in retirement, but it all comes down to how comfortable you are with debt. If you don’t like having debt and it gives you security paying it off, then that’s likely the path you need to take. But there are benefits to carrying a mortgage in retirement, including cash flow and tax deductions. Either decision could work for you so get feedback from a financial professional to make sure you have a plan for whichever way you go.
Flipping Houses
Joel knows a lot of people that have gotten wealthy doing this or teaching people how to do this. For most people, the idea sounds better than it works out to be. That’s not to say you shouldn’t buy houses, renovate them, and make a profit. But go into it knowing it’s a full-time job if you want to do it well and you have to know what you’re doing. So to answer this listener’s question, Joel wouldn’t recommend flipping houses as the main investment strategy for most people.
Variable Annuities
A listener has a variable annuity that provides a nice income guarantee but keeps hearing that this is a bad investment idea. Let’s start with the cons. They can be very expensive and even more confusing to try and figure out where the expenses are. If you have mutual funds and you’re trying to make money on them, but you have 2.5-3% fees, it takes a while to make money. Now having said that, there are some variable annuities out there that have very attractive income guarantees. Joel shares an example of a client that got a great return off his investment so they can be beneficial.
Too many people will share an opinion without much knowledge or understanding of a product so don’t get rid of your annuity until you sit down with an advisor who can assess your situation.
As always, we offer a complimentary Money Map review for you so we can help answer your questions in more detail if you prefer. You can call or email us as well so don’t worry about someone on the other end giving you a big sales pitch. That won’t happen if you reach out to set up a meeting.
[0:21] – Mailbag Question: We have an opportunity to refinance at a lower rate but it would be a 15-year mortgage and we only have 5 years left to pay now. It seems like a bad idea to have a mortgage heading into retirement. What do you think?
[1:23] – Mailbag Question: What’s your opinion of flipping houses as an investment strategy?
[4:59] – Mailbag Question: I have a variable annuity that seems to have a nice income guarantee associated with it, but I have heard many people say variable annuities are usually a bad deal. What am I missing?
[7:49] – A Money Map review will help get your questions answered.
Thanks for listening to this episode. We’ll be back again next week for another show.
Information presented here is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
Podcast Episode 430: Should I Work 5 More Years or Retire Early?
Prefer to watch? Click here to watch and listen. Without a paycheck, how do you know if you can support your lifestyle after retirement? This is one of the most common questions people have whe… -
Podcast Episode 429: 5 Tax Moves to Make Before December 31
Prefer to watch? Click here to watch and listen on YouTube. As the year comes to a close, so does the window for many important tax-planning opportunities. Key considerations include maximizing… -
Podcast Episode 428: What Is Considered Good Debt vs. Bad Debt?
Prefer to watch? Click here to watch and listen. Is all debt truly harmful, or can some of it help you achieve your retirement goals? Not all debt carries the same weight. While it’s important … -
Podcast Episode 427: Long-Term Care Planning: How to Protect Your Assets
Prefer to watch? Click here to watch and listen on YouTube. Planning for long-term care isn’t just about the care itself; it’s about protecting your assets and preserving your legacy. In thi… -
Podcast Episode 426: What Happens to Your 401(k) When You Change Jobs?
Prefer to watch? Click here to watch and listen on YouTube. Staying at one company for 30 or 40 years is becoming increasingly rare. Today, more people are saving for retirement in multiple emp… -
Podcast Episode 425: 5 Financial Lessons from Stevie Nicks
Prefer to watch? Click here to watch and listen on YouTube. What can Stevie Nicks, legendary singer-songwriter and member of Fleetwood Mac, possibly teach you about retirement planning? As it t… -
Podcast Episode 424: 3 Tax Benefits of a Health Savings Account (HSA)
Prefer to watch? Click here to watch and listen on YouTube. Health savings accounts (HSAs) are one of the most underrated tools in financial planning, especially from a tax savings standpoint. … -
Podcast Episode 423: What Kind of Insurance Do I Need in Retirement?
Prefer to watch? Click here to watch and listen on YouTube. Insurance is about preparing for the unexpected — whether it’s an accident, illness, natural disaster, or other costly event. Ultimat… -
Podcast Episode 422: Traditional vs Roth IRA: Which Is Right for You?
Prefer to watch? Click here to watch and listen on YouTube. At first glance, it may seem like you must choose one or the other: a traditional IRA or a Roth IRA. But the answer is often a combin… -
Podcast Episode 421: Can You Really Pay Less Taxes on Social Security?
Prefer to watch? Click here to watch and listen on YouTube. Social Security is one of the most important sources of income for many retirees. But it is also one of the most misunderstood around…
-
Laura H.Laura H. is a client of Johnson Brunetti and received no compensation for their statement.
“Your corporate values and mission have stayed constant which we’d say is the primary reason we are so satisfied. We believe that mission should never change.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
John L.John L. is a client of Johnson Brunetti and received no compensation for his statement.
“We are extremely please with J&B. Referring back to our one word, Family, we trust your firm, advisors, and services as we would a member of the Family. Thank you for everything!”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Joe D.Joe D. is a client of Johnson Brunetti and received no compensation for his statement.
“Your model is working well, continue to keep your focus on your clients. The podcasts are an effective way of communicating information and real life stories. Your business is supporting your clients’ many different real life stories.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Jackie L.Jackie L. is a client of Johnson Brunetti and received no compensation for her statement.
“I love how everyone in the company makes us feel. Like we are one big happy family. I wouldn’t change anything! “
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Christine Q.Christine Q. is a client of Johnson Brunetti and received no compensation for her statement.
“Your services are exemplary and greatly appreciated by my husband and myself to live out our retirement years feeling safe and secure. Thank you!”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
-
Barbara S.Barbara S. is a client of Johnson Brunetti and received no compensation for her statement.
“We are very happy with Johnson Brunetti. It has really taken a load off our shoulders. Thank you.”
Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
