Income Allocation Planning
The Income Allocation Planning (IAP) method has been developed by Golden Retirement, LLC (“GR”). GR is the owner of Golden Retirement Advisors, Inc (GRA) a registered investment advisor, and the 2Income Annuity Group, an insurance agency licensed for life insurance and annuities.
The IAP method is marketed under the brand name of Go2Income. In creating a personalized plan for retirement income, Go2Income plan reviews your major savings sources, including Rollover IRA or other qualified savings, after-tax personal savings, equity in a primary residence, and deferred annuities. Go2Income develops your plan based on income that could be generated from model investment portfolios, home equity conversion mortgages and a combination of lifetime income annuities ("IA"). A plan may consider all of your retirement savings or a single savings source.
Assumptions
The Income Annuity pricing in a Go2Income plan is based on the Go2Income proprietary pricing methodology. There is no assurance that the purchase prices in the commercial marketplace may be as favorable. Assumptions as to performance of the other savings sources are based on current market yields updated quarterly, and long-term returns in the stock and bond markets.
It should be noted that past performance of the investment portfolios should not be construed as an indication of future results. Investment portfolios will go up or down, depending on market conditions; and there are no promises, guarantees or warranties that any of the portfolios will generate the performance we have assumed in your plan.
The illustrations and graphs generated by the Go2Income planning tool are hypothetical in nature, and do not reflect historical results and are not guarantees of future results. You must make your own determination whether a Go2Income plan is consistent with your retirement objectives, risk tolerance, financial situation and your own evaluation of the Go2Income plan results. You should review your decisions periodically to make sure they are still consistent with your goals.
Referrals to Advisors
A plan must be implemented by an advisor who is both insurance-licensed and registered as an investment advisor. In most cases, the advisor will be an independent advisor who has been qualified in Go2Income planning by GRA through a vetting process and Go2Income training program. With agreement of the prospect the Go2Income plan will be assigned to an advisor appropriately licensed in the prospect’s state of residence. In states where we have no qualified advisor, or where the prospect requests, the Go2Income plan will be handled by an investment advisor representative of GRA.
Each advisor is registered with the U.S. Securities and Exchange Commission (SEC) or the appropriate state regulator and possesses the proper licenses. GRA does not review the ongoing performance of any RIA/IAR, participate in the management of any user’s account by an RIA/IAR or provide advice regarding specific investments.
We do not review the recommendations of annuities by the agent. All guarantees provided by the annuity are subject to the claims-paying ability of the annuity carrier.
We do not manage client funds or hold custody of assets, and this is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an agent who may be registered as an advisor may come with potential downsides such as payment of fees (which will reduce returns). There are no guarantees that working with an agent-advisor will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.
HomeEquity2Income Program
Overview
Golden Retirement (GR) has created the HomeEquity2Income program (H2I program) that can help certain consumers increase their long-term retirement income and liquidity. The H2I program includes (1) a Qualified Longevity Annuity Contract (QLAC) purchased by the consumer from their tax-deferred or other savings, and (2) a Home Equity Conversion Mortgage (HECM) loan obtained by the consumer from a licensed and FHA approved HECM lender.
GR will provide customers with a custom-designed H2I program or a Go2Income plan integrating H2I and provide assistance to both consumers and Financial Intermediaries (FI). GR will also identify and train FIs to offer the H2I program to the FIs’ existing customers as well as new customers that GR attracts to H2I through advertising, blogs and direct mail campaigns.
H2I Program Operation
GR develops and owns the H2I program for retirement income and customizes it for appropriate consumers whom GR attracts to its H2I website(s) or planning tools through various outreach campaigns.
The H2I program relies upon: (1) a QLAC purchased separately by the consumer generally from the consumer’s available tax-deferred savings (e.g., 401(k) or IRA) that is custom‐designed for and sold to the consumer by and through an appropriately qualified and licensed agent, and (2) a HECM loan obtained by the consumer from one or more HECM lenders.
The HECM illustrated is an open-ended, adjustable rate HECM with a line of credit (LOC) payment option that, if made available by a lender to a consumer eligible for it, generally provides for payments to the consumer commencing no sooner than one year after the HECM loan is obtained and for the period specified by GR under the H2I program in amounts that may be level or increasing as specified in the H2I program. These “payments” are periodic draws on the LOC.
The HECM in the H2I program is illustrative only of the type, form and general characteristics of a HECM that permits the H2I program to meet the retirement income goals of the consumer described in the H2I program developed by GR for the consumer.
The illustrative HECM is based upon (1) information GR gathers from the consumer that enables GR to custom‐design the H2I program, (2) otherwise publicly available HECM interest rates and LOC tables, and (3) information and advice with respect to the general range of HECM loan costs and features and other marketplace data and information. The licensed HECM lender will provide the detailed loan illustrations, loan documents and all required disclosures under State and Federal laws and regulations.
As regards the QLAC annuity, (1) the RM Lender neither offers nor arranges nor assists a consumer in obtaining or applying for or considering the annuity(ies); (2) only an appropriately licensed and authorized provider of such annuity(ies) and/or financial or retirement planner or insurance broker or insurance agent may do so, upon application to it by such consumer; and (3) the RM Lender provides no assurance that that the H2I program described by GR, or any annuity(ies) recommended or offered by GR or its agents, is effective for its stated purposes or appropriate for the consumer.
The H2I website, planning tools and related materials disclose to consumers, among other things, (1) the assumptions made by GR about the consumer and the HECM marketplace data upon which it relied in developing for the consumer the illustrative HECM; (2) that neither GR nor its agents offer or arranges or assists a consumer in obtaining or applying for a HECM loan; (3) that only an appropriately licensed and authorized RM lender may do so, upon application to it by such consumer; (4) the consumer is free to use any licensed HECM lender for the RM and (5) that GR provides no assurance that the HECM described by GR in the H2I program is one that such an RM lender would offer to such consumer or for which such RM lender would determine such consumer qualifies or is eligible. NOTE: FOR THE AVOIDANCE OF ANY DOUBT, AT NO TIME ARE HECM LOAN PROCEEDS USED TO PURCHASE THE ANNUITY OR ANY FINANCIAL SERVICES PRODUCT ILLUSTATED IN GO2INCOME AND H2I AND ALL FEDERAL AND STATE LAWS REGARDING LICENSING AND USE OF LOAN PROCEEDS WILL BE FOLLOWED EXPLICITLY.
