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.
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Unfortunately, with interest rates at historically low levels, finding a good solution for your goal is extremely difficult. I look at it this way - there are three things most of us would love to have from our investments: 1) growth, 2) safety, and 3) accessibility. However, there is no one investment that provides all three. If someone tells you they have something with all three, BEWARE! :-)
To some degree, in your question, you're looking for all three. You mention growth, but also the safety to know that you won't have a negative return. Finally, you need access in two years, when many investments will require more time. If I were you, I would give some thought to those three possible goals and prioritize them. Most likely, you want accessibility within two years primarily, then you want safety next. Growth is actually the last of the three. In this case, unfortunately, you may not have a better option than on online money market or shopping for the best CD rates.
I'm sorry I don't have better news. I hope that helps, and I wish you all the best!
First, congratulations on the growth of your account as well as the locking in of your gains! As some of the other answers have mentioned, there are many different things to consider when determining how to invest inside an IRA. For the sake of this question and forum, I'll keep my advice short and sweet. We believe that there is a tremendous amount of proof to show that the best general path to take for long term investing, for many people and circumstances, is the "Endowment-style of investing." You could Google this term to learn more about it. A short summary; David Swensen has run the Yale Endowment for over thirty years now, and has achieved tremendous success. The endowment has earned strong annual returns, often with smaller losses during down markets as well as generating steady income. His method is really as simple as taking diversification to the next level. In addition to ensuring you hold more than one stock, the endowment-style strategy would suggest you find many other different types of asset classes to invest in. Some examples would be: U.S. stocks, international stocks, private equity, real estate, secured debt, and natural resources.
If successful, this type of strategy could generate a strong income for you to enjoy living off of while also giving you a great opportunity for growth. I wish you success!
You've asked an very important question, although I believe it is challenging to answer with only partial information. Having said that, I'll offer my opinion as best I can:
While there is nothing wrong with the American Funds, I personally believe that a different investment strategy would be extremely beneficial. Since you have mentioned that you have reached the point where you have a Required Minimum Distribution (RMD), this means that for the rest of your life, you will be required to take money out of your retirement account. It sounds as though all of your funds are invested in assets that can go up or down in value on any market day, such as long term bonds. This means that your current strategy is based on what we would call "Reverse Dollar Cost Averaging."
I would encourage you to google "Risks of Reverse Dollar Cost Averaging," as it would be difficult to cover this topic in detail here. Basically, by taking systematic withdrawals from an account that can drop in value, you are creating additional risk for yourself. While there is nothing wrong with having some of your retirement account in American Funds, we would strongly encourage you to diversify some of your retirement account into assets that either provide a guarantee of principal or generate steady dividends that can help cover your RMD each year. This way if the American Funds are down in value, you may not have to sell them at such a low value.
I hope this helps, and I wish you the best!
You're asking an extremely smart question. From my experience, variable annuities can often have some of the highest fees out there. Having said that, the question I always ask is: what are the fees you are paying, and what is the value you are receiving for those fees?
The big question to ask yourself is: what do I want this money to do for me? If you have no interest in the guaranteed income, then it is silly to be paying these fees. However, if you have any concerns about outliving your money due to longevity and/or inflation, then this account may still be a good choice for you. If this is the case, since you are past the surrender charge timeframe, I would attempt to make the best apples to apples comparison. Determine what the guaranteed lifetime income would be out of this account. Then get a quote to find out if you transferred this account into a fixed indexed annuity with an income rider to find out what type of guaranteed income this alternate annuity would provide. Whichever contract offers you the higher income should be the better choice for you.
I hope that helps, and I wish you all the best!
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!