Couple Wants To Retire Back Home

I work with hard-working people who want to ensure that their future goal will be taken care of. We work hard and save enough to have a peace of mind knowing we can have a better future. One of them is to know that one day we can stop working and live the last days of our lives peacefully with our loved ones.

A Filipino couple consulted with me to verify if they have the best retirement plan in place. They mentioned that they were approached by another advisor and were sold a plan that promised them a lifetime retirement income. After hearing this, I have booked them for a 2-hour meeting and required them to bring the documents they have. I have also required them to talk about their retirement goals together before our meeting so I can fully understand and determine their retirement needs in order for me to give the best retirement plan that suits them.

In our second meeting, we started by gathering their personal information, then we talked about their dream retirement lives. Then with a quick analysis, I have determined the most possible retirement plan that will help them meet their needs. I have presented to them a retirement strategy with its pros and cons, showing them how they would be able to accomplish it and why it is best for them. But to my surprise, they were shocked to see it knowing it is not the plan they currently have. Then they showed me their plan and authorized me to explain what they have and why it is not for them.

They were sold an Universal life insurance and gave them the idea that they can access the money inside of the plan tax-free annually and use it as their retirement income. But little did they know that in order for the strategy to work, they’ll need to go to the bank and make an application for a loan annually, which is no guarantee that they’ll get approved and they’ll need to fly back here in Canada yearly just to make the application for the loan. When I asked them if they’re comfortable doing this strategy, they immediately said no.

With the plan I presented to them, they’ll be able to access their money guaranteed tax-free anytime without the need of approval by the company. They immediately filled up an application to open this retirement account. We did a risk tolerance check and then I showed them an illustration of the future value based on an appropriate growth rate. And showed them other possible ways to access their money. Then, we set up for another meeting to talk about what they should do with their current plan with regards to insurance.

In order to reach whatever goal we have, we must do our due diligence and see if we have the right professional, ask for their credentials to see if they’re truly working in our best interest.