How do you handle newly acquired wealth? - by Ziad K Abdelnour

It was an interesting gambit recently when Obama threw out the cap on total 401k and IRA dollars. What was even more interesting was the rational for the $3 million amount. They converted it to an annuity worth $205,000 per year and that was the basis for the $3 million. I don’t think many people were paying attention to how much money it takes to generate $205k per year, but they should. Using income rates of about 2% to 6% (range of living off dividends-interest only to complete conversion to annuities), gives a much more realistic valuation of retirement savings than focusing on the big lump sum sitting in the bank account....Continue

 

Thanks,

 Ziad K Abdelnour

Ziad K. Abdelnour is President & CEO of Blackhawk Partners, Inc. , http://blackhawkpartners.com/ , Founder & President of the Financial Policy Council http://www.financialpolicycouncil.org/ and Author of Economic Warfare: Secrets of Wealth Creation in the Age of Welfare Politics http://www.amazon.com/Secrets-Economic-Warfare-Creating-Regulation/dp/1118150120/ref=sr_1_2?ie=UTF8&qid=1311437307&sr=8-2