Preservation Specialists, LLC
Founder and Owner
Patrick (Pat) Strubbe is the founder and owner of Preservation Specialists, LLC, established in 2003. Pat and his team offer a dynamic process that integrates their clients' financial resources with their vision of personal fulfillment and security. Since 1997, Pat has been teaching consumers age 50+ how to preserve their assets and increase their income through the use of tax efficient strategies.
Pat vividly remembers being in high school and how his grandfather’s need for nursing care at that time affected his entire family. His mom having to handle the bills and coordinate payments, his grandfather having to depend on someone else to take care of him both physically and financially — the entire situation wore down the family. This experience is what gave Pat the desire to help people attain their financial goals and avoid the problems his family faced.
A well-known financial educator and retirement planning specialist, Pat is a recurring guest on the WIS (NBC)-TV news with anchor Dawndy Mercer Plank. He also was the financial columnist for the Lexington Chronicle for many years and has been featured in USA Today, Columbia Business Monthly, Investor’s Business Daily and other national publications. He has been a featured guest on numerous radio shows around the country and is often recruited as an area "expert" in the field of retirement planning. He is the host of the show “Retirement with Confidence” on WVOC and author of the Amazon.com best-selling book, “Save Your Retirement from Mass Destruction by the 7 Retirement Villains!” His professional designations include Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU) and Registered Financial Consultant (RFC).
Pat lives in Columbia, South Carolina, and is married to his beautiful wife, Janelle, who works as a nurse. He is the proud father of three children: son Carter and daughter Ava are students at Dutch Fork High School, and baby Gabriella is enjoying time at home with her mom and dad. Plus, he and his family are excited to announce that Pat and Janelle are expecting a girl later this year!
Pat enjoys watching NBA basketball games with his friends and family. He loves to see his favorite team, the LA Lakers, whenever he can, and has fond memories of watching the Lakers in the era of Magic Johnson from his youth. Pat also is an active member of Hope Lutheran Church in Irmo, where he has served as an elder of finances since 2003.
BS, Accounting, Purdue University
Securities offered through Kalos Capital Inc. and investment advisory services offered through Kalos Management Inc., both at 11525 Park Woods Circle, Alpharetta,Georgia, 30005, (678) 356-1100. Preservation Specialists, LLC is not an affiliate or subsidiary of Kalos Capital Inc. or Kalos Management Inc.
I'm very sorry to hear about your long-standing illness. Regarding investments versus cash holdings, I believe there are two considerations that are important: emergency reserves and diversification.
While there are varying beliefs regarding how much of an emergency reserve to keep, a general rule that I believe to be reasonable is to keep three to six months expenses somewhere safe and accessible (One could argue that you may want to consider a larger buffer if you anticipate needing more funds in the short term due to your illness). This will typically mean finding some type of checking, savings, or money market account for these funds. While this type of account will most likely pay little to no interest, it will keep your money safe and available if you need it on very short notice.
Once you have funded your emergency reserve, next you can consider your investments, which certainly could include dividend paying stocks. We love the endowment style model of investing. If you review how Yale, Harvard, and other large endowments invest, they typically are diversified into many different types of holdings and asset classes. The goal of course is to reduce the risk you would take having all your money in one type of investment.
I hope that this helps you determine the best mix for you!
This is a great question and one we get frequently because we work primarily with those getting ready to retire or recently retired. You are right to be asking the question because term life insurance should only be carried for as long as you need it, barring major health concerns of course. My recommendation would be to spend a few minutes generating an analysis somewhere such as:
This will allow you to thoroughly consider what financial needs would occur if you were to pass away. If the calculator agrees that you don't need the insurance, and if you're in decent health, then it may make sense to cancel the policy and put your premium money to better use.
Best of success!
As with most things in the financial world, I would say that when it comes to a statement like "guarantee of zero loss with an IUL," many financial advisors could either agree OR disagree with that statement.
On the "agree" side, an indexed universal life policy is indeed structured so that any cash value you have in the account cannot go down in value due to the stock market dropping. This is often the best feature of most indexed type products. Competitive IUL policies can offer much of the upside of the stock market without risk of loss of principal. If there is little to no cash value, this feature doesn't provide much benefit. However, if you build up a sizable cash value over time, having it protected from a significant stock market drop could be a huge benefit.
On the "disagree" side, while you are protected from stock market drops, any life insurance is going to have insurance charges. Therefore, it's possible that your cash value could be reduced due to insurance charges. Many advisors believe that the costs of these type policies make them poor choices. I personally believe it really depends on what you're trying to accomplish.
For example, most of my clients are close to or already in retirement, and we rarely see a need or benefit for IUL. However, my wife and I each have IUL policies that have proven to be very beneficial for us.
I hope that helps, always remember, there's nothing perfect out there. Make sure you understand the pros AND the cons.
Best of success!
You've asked a great question! You absolutely can designate how your beneficiary receives the funds. However, this ability may be limited by the financial institution you are working with. For example, if your IRA custodian requires only the use of their beneficiary form, these types of designations may not be possible. There are some financial instruments, primarily in the annuity and life insurance world, that are actually designed to pay out monthly rather than lump sum. Researching these options might be a good next step.
If I were in your shoes, the first thing I would do would be to call the 800 number on your 401(k) statement. You will reach the company that administers your 401(k) plan. I would ask them this exact question. Companies have a great deal of options with how they handle their 401(k) plan, and I would want to get the answer straight from the administrator.
The question you might want to ask yourself is what benefits would you have from staying in the existing plan? Here's how I explain the difference between a 401(k) and an IRA to my clients: an IRA is YOUR money and YOUR account. A 401(k) is YOUR money in THEIR plan. This means that the plan can be changed at any time. In my opinion, an IRA gives you greater control.
If you decide that an IRA is a better option for you, the next decision is whether you wish to hold your IRA directly and handle the investments yourself or if you would rather work with an advisor. If you want to keep your fees low, there are plenty of IRA companies that will allow you to handle the account directly with them, and this can often allow you to keep investment fees extremely low - and potentially much lower than the fees in your current plan.
I hope that helps, and I wish you the best of success in determining the best choices for you!