Duell Wealth Preservation
Owner and Founder
Gary Duell is the Owner and Founder of Duell Wealth Preservation, an Oregon Registered Investment Adviser firm. Gary and his team know Health and Life Insurance is more than protection and risk reduction, it is a financial tool that helps secure the future of their clients retirement and gives them the freedom to experiment with new ideas and realize the passions that they put on hold while they are building a career and raising a family. That is why they specialize in insurance and financial products that help provide financial security such as Life Insurance, Annuities, and Long Term Care.
Gary provides comprehensive financial plans and the appropriate insurance and investments to implement them, continuing ethics education classes for insurance agents, as well as public seminars. He is currently on the faculty of Portland Community College’s Community Education department to provide retirement education to pre & current retirees.
Gary was born in Garden City Kansas, moving with his family to Salem, Oregon at the age of 5. He graduated from Willamette University in 1974 with a double major in psychology and philosophy. There being a scarcity of philosophy jobs, Gary took a harrowing nine-month stint at Oregon State Hospital as a psychiatric security aide on the women’s maximum security unit. “One Flew Over the Cuckoo’s Nest” was filmed there during that time, which only added to the chaos. The experience prompted Gary to change careers. He graduated from Willamette U. again, in 1977, with an MBA. After 18 years with Farmers Insurance, first as an underwriter, then supervisor, and then as an agent, Gary left in 1996 due to the purchase of Farmers by British American Tobacco. In 1997 he completed the last series of courses and exams to get the Chartered Financial Consultant (ChFC) designation from The American College at Bryn Mawr PA.
Gary served a three year term on the Clackamas County Economic Development Commission and was chair of the Surface Water Management advisory committee. He was Treasurer on the Clackamas Community Land Trust board of directors and helped merge the CCLT with Proud Ground, their Portland counterpart. He is also a charter member, past President and current Treasurer of the Happy Valley Business Alliance. Gary loves what he does mostly because of the people he gets to work with. Many clients and friends have been made over the years.
B.S. in Philosophy & Psychology 1974, Willamette University
MBA 1977, Willamette University
Chartered Financial Consultant (ChFC) 1997, The American College
Gary Duell interviewed by Investopedia
Lease vs Buy calculators are all over the Internet. Which is "the best option" depends entirely on the terms of each option and your car behavior.
Regarding the latter:
- Aside from this last lease, do you view cars as nothing more than transportation, usually keeping your cars forever and driving them into the ground? If so, I would buy a dependable highly rated used car with cash.
- Do you love style, power, gizmos, and all that? Wow, I wish you didn't. But a lease may be your best bet, especially for a lesser known model that still meets your preferences. Lease terms these days usually result in a payment that is less than the depreciation and maintenance you would lose by buying a new car with cash.
- Are you an electric car devotee (like yours truly) for whatever reason (quiet ride, astonishing power, cheap fuel, saving the planet)? Will your driving habits handle the limited range? Until the technology stalls, I will only lease electric cars for both the reasons in #2, but also because the technology keeps improving and the costs keep coming down. Why would I want to get stuck with an expensive antique?
As long as you're good with the fact that cars are money-pits, use a lease vs. buy calculator to compare your options if you need to finance.
Always spend less than you make.
Imagine walking into a new car dealer and asking, "I have $20-30,000 to spend on reliable transportation during my retirement." As you can imagine, they would have a lot of questions for you: Are you hauling stuff? Need a truck or van? Motor-home? Will you be taking long trips; is comfort an issue? Fuel efficiency? What's the weather like where you live? Need all wheel drive? Are you a skier? How many passengers will you have? Need GPS? And so on.
Consumers, and far too many advisors, have somewhat jaundiced and narrow views of annuities, thanks to the likes of Ken Fisher and Suse Orman. The term "annuity" simply means "stream of income." What a horrible thing! These days, you can structure that stream just about any way you please. Hence my car-buying analogy.
Your mention of annuity interest rates makes me think you're looking at MYGAs (multi-year guarantee annuities). MYGAs normally declare a fixed interest rate for a guaranteed period. For example, Fidelity & Guaranty Life will shortly be offering a 5 year MYGA paying 3.1% interest, which compares very well with bank CDs.
But the other two main species of annuities are Variable (the account value can increase or decrease) and Fixed (absent withdrawals, the account value cannot decrease). Investopedia has excellent discussions of these dramatically different families of annuities. The most cost-effective of these two, in my experience, is Equity Indexed Annuities (EIAs). I like them because they permit me to create a definite plan; properly structured, they allow me to guarantee a specific minimum income stream at any point in the future while protecting my client from sequence of returns risk. If rates rise, so will the annuity's. In the meantime, you usually have annual 10% penalty-free liquidity should you want to dollar cost average back into the market if our current bubble bursts.
You ask the key question: What should I do with the money in the meantime? Or, in other words, what's the opportunity cost for waiting for more favorable interest rates? The number one thing you should do it not lose it. And an EIA is a great place to stash it. Having said all that, in the absence of a comprehensive plan, especially regarding taxes and cash flow, it would be impossible to say whether one, a combination of, or any annuities at all would be appropriate.
Biggest disadvantages of Annuities:
- It's difficult to get impartial advice about them since the conflicts of interest are significant, with up-front commissions ranging upwards of 10%.
- Limitations on earnings in the form of various caps, participation rates, and spreads.
- Complexity of the terminology, the inner workings of the sausage factory, and the plethora of options
Which is too bad, because annuities belong in practically every portfolio. Consider the value of the most popular annuity on Earth, Social Security. Annuities allow us to pool the risks of outliving our assets and untimely volatility.
There is no simple answer. But congratulations! Let's see if you can avoid the fate of most lottery winners who go bankrupt in 5 years . . . or less. Here is the missing information I would need to give a reasonable answer:
- What is your age?
- Are you single or married? Children? Are you happy with your current lifestyle and is taking care of your family after your death more important than living it up now?
- In which state do you live? It's essential to know your total tax hit.
- What is your life expectancy? Here's a good calculator for that purpose: https://livingto100.com/calculator This is a difficult but important number because if you're 75 and the calculator says your life expectancy is 74, have a big party! If you're 35 and expect to live to 95, hire a financial planner.
- What are your debt details, i.e. amounts, terms & interest rates? Paying off debt is an investment that cannot be taken away from you (unless you carelessly acquire more!).
Depending on all of the above, there are various tax-advantaged options you could consider. This is not a -do-it-yourself issue! You need an impartial, experienced 3rd party to see through the euphoria, to soberly reflect back to you your current financial situation, and realistically project what's possible- and not possible -with this windfall.