Money Manager Bob Carlson touches on the sensitive subject of social security and more specifically how to potentially double it by collecting a “Second Social Security Check.”
If you are retired or nearing retirement age, Bob says this will be one of “the most important things you read all year.”
The Teaser
We're assured this lucrative, little-understood retirement strategy is both 100% legal and already being exploited by thousands of retirees all around the country.
To say Bob Carlson is a retirement expert would be an understatement. He's written columns and books about the financial aspects of retirement and currently manages the money of Virginia’s Fairfax County Employees’ Retirement System. The man lives, breathes, and eats all things retirement-related. So it's safe to say, he knows a thing or two about it.
We have previously reviewed Carlson's Retirement Watch publication at length and also taken a look at his “New American Retirement Plan” teaser.
As a 30-something-year-old that admittedly knows little about retirement planning, this presentation intrigues me for a couple of reasons:
One, my generation will likely never see a social security check. At least not in the system's current form. I say this because as of last year, U.S. Social Security is officially underwater, paying out more than it brings in.
According to some sources, it could run out of money completely by 2035.
Two, Bob is billing this “Second Social Security check” as an excellent alternative to IRAs and 401(k)s, which are very widespread.
But unlike an IRA or a 401(k), this new Second Social Security check is as bulletproof as your regular one and you collect it even when the stock market crashes and the economy nosedives.
Predictable Monthly Income for Life
This is the holy grail of investing that everyone strives for.
Whether you are buying a business, real estate, or passively investing, the end goal is steady, predictable income or asset appreciation.
Bob says the Second Social Security Check achieves this regardless of what Wall Street or Washington throws at us and he's going to show us how we can get it too.
The Pitch
All the details about this retirement income source are revealed in a special report called How to Generate Guaranteed Lifetime Income.
It is part of Bob's Spotlight Series which Retirement Watch members receive.
The offer comes in two options which are both deeply discounted.
- One year for $139 at a savings of $425 off the regular price or
- Two years for $199 at a savings of $929
Both offers are final, meaning no refunds will be issued, and include two special reports and 24/7 access to the secure Retirement Watch website.
What in the World is a Second Social Security Check?
Bob doesn't come out and say it at any point in his teaser, but what he's talking about here is Annuities.
What is an Annuity?
According to Investor.gov, “An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future.”
The “Second Social Security Check” misnomer is a bit deceiving, as annuities are something sold by private financial services companies and not something you receive like SS benefits.
It initially had me thinking this presentation was about Social Security Disability Insurance (SSDI), which like SS, is administered by the U.S. Social Security Administration (SSA) and is technically a second social security check. But good job by Bob throwing me for a temporary loop.
You Get What You Give
Like all forms of insurance, you essentially get back what you give when you need it with an annuity.
For example, a $100,000 annuity contract entered into when you are 55 will likely pay you somewhere in the neighborhood of $500 per month, depending on a number of factors and provisions.
If we take the average life expectancy in the US of 74 years and multiply $500 per month by 228 months (19 years), the total amount you would receive from your annuity provider is $114,000 between ages 55 and 74. Safe to say, your annuity provider is making much more than 14% on your $100,000 over a span of 19 years.
Of course, there are different types of annuities like single-life and joint, and survivor annuities, all of which affect the monthly payout you ultimately receive.
This is what Bob's “no-nonsense special report” is all about – guiding you through the annuity maze.
In this guide, he notes that many prominent people have and are currently benefitting from this form of insurance contract. People like all-time great baseball slugger Babe Ruth, former two-time drag racing champ Elaine Larsen, and everyone's favorite former Fed chair Ben Bernanke, among others.
Now, you can too. But the question is should you want to?
Guaranteed Lifetime Income?
There is no specific annuity provider or type of annuity being teased here, so we must instead analyze the merits of annuities themselves and how they stack up against the alternatives.
First, the question that is probably top of your mind – do annuities guarantee lifetime income?
The short answer is yes. Annuities guarantee income over the life of the contract.
The long answer is it depends.
It depends on the financial strength of the insurance company that underwrites your annuity contract. After all, a promise is only as good as the man that makes it.
Not many people know this, but there is actually a National Organization of Life and Health Insurance Guaranty Associations (NOLHGA) that protects annuity and other insurance policy holders like the FDIC does for bank accounts.
The amount that is protected varies from state to state, but it generally falls between $100,000-$500,000.
There is also a second lair to this and that is how well your annuity underwriter invests the money that it receives from you.
In this regard, AM Best does a decent job of rating insurers based on their financial strength and other factors.
Finally, what are your annuity alternatives?
Can You Say Whole Life
Realistically, there's only one annuity alternative and that's a whole life insurance policy.
Although there are no payouts, a whole-life policy would accumulate a cash value on which you can make partial withdrawals or even exchange for an annuity tax-free anytime you want.
I wouldn't be able to tell you which one is best for your needs, but both are legit alternatives to directly investing in the market via bonds, retirement funds, and the like.
Quick Recap & Conclusion
- Retirement expert Bob Carlson is teasing a way to double your monthly benefits by collecting a “Second Social Security Check.”
- “Second Social Security Check” is actually just Bob's quirky way of saying Annuity and a complete Annuity buying guide is what his pitch is all about.
- This guide is called How to Generate Guaranteed Lifetime Income and it is ours when we become members of Bob's Retirement Watch website. The cost to do so starts at $139 for the first year and there is a no-refund policy in place.
- An annuity is simply a contract between you and an insurance company that requires the insurer to make guaranteed payments to you, either immediately or in the future depending on the type of annuity you purchase.
- If you decide an annuity is for you, make sure you get one from a reputable underwriter that is not over-leveraged and has a better than good chance of being around over the long term to pay you.
Do you own an Annuity? Tell us what your experience has been in the comments below.