When you get to 65, you have X-benefit…
$10,000 a month…the number is irrelevant…
You can do the Traditional Plan, provides the same benefit, the $10,000 a month
It’s just how you get there.
You can invest in the market, the market will appreciate more than a very conservative investment in the 412.
So it’s not, the beauty of the 412 as you pass it…
It’s called Fully-Insured cause you pass it on to an insurance company, the liability, but the insurance company says as long as you pay these very conservative premiums…
We will 100% guarantee that for the rest of your life when you get to retirement until you pass away – you can live until you’re 110 – we’re going to pay you that benefit!
Now conversely, in the Traditional Plan – I said it cost $100,000 in a 412, in a Traditional if I have decent market performance, it might only cost me $70,000 a year.
Now conversely though, I can put $70,000 a year away and when I turn 64 the market, we can have a 9/11 event or we can have a Black Friday or whatever it was (Friday I think it was when the market crashed…)
The market can cut in half and then my reserve at 64 cuts in half and now I have one year until I retire to make that up.
So that’s why the conservative nature of the 412, sometimes people really like that!