Your Questions, Answered
Everything you need to know before we talk.
What exactly do you do?
I am a retirement income specialist. My focus is one thing: helping people create a guaranteed stream of income they cannot outlive. I do not manage investment portfolios, offer tax advice, or provide legal counsel. If you need those services, I am happy to point you toward people who can help.
Who will I be working with?
You will work directly with John Schwalenberg, founder of Create Your Own Pension and a licensed Texas life and health insurance professional with more than 30 years of financial services experience. Learn more about John.
Who do you typically work with?
I work with individuals and couples who are either approaching retirement or already retired, typically between the ages of 55 and 75. Most of my clients have at least $500,000 saved for retirement and are looking to create a dependable income floor to cover their essential living expenses.
Do I have to move all my investments over to you?
No, and I would not want you to. I am not an investment advisor and I do not manage portfolios. Most clients keep their current financial advisor and simply add a guaranteed income strategy alongside their existing investments. If you are looking for an investment advisor or thinking about making a change, I am happy to suggest a few good ones.
Do I have to buy anything?
No. We start by understanding your retirement income gap and whether a Pension Strategy makes sense for your situation. If it does, I will show you the options. If it does not, I will tell you that too. The decision is always yours.
Why hasn't my financial advisor ever brought up annuities?
It is rarely because annuities do not work. Most advisors are compensated based on the assets they manage, so money that moves into an annuity works against their income. Some are also not licensed to sell one, since it requires a separate state insurance license, and others simply have not taken the time to learn a product with real complexity. None of that means annuities are wrong for you, it reflects how the advisory industry is built. Read the full breakdown.
I've heard annuities are a bad deal. Is that true?
In my experience, that reputation usually comes from one of two things. Either overconfidence in beating market timing, which looks fine until a bad few years hits at exactly the wrong point in retirement, or a bad experience with an old-style or fee-loaded product that should not have been sold the way it was. Neither means a properly structured Pension Strategy is flawed, it usually means the criticism is aimed at a different product, or a bet that did not pay off. Read the full breakdown.
What licenses do you hold?
I have been a licensed insurance agent in Texas since 2018, authorized to sell Life, Accident, Health, and HMO products. License number 2266812. Annuities are life insurance products which falls within that license. I also hold an active Texas real estate sales license. I previously held FINRA Series 7 and Series 66 securities licenses and a NASDAQ trading license, but those are now inactive since I no longer manage investments.
Are you a fiduciary?
Insurance agents are held to a suitability standard of care, which means recommendations must be appropriate based on your individual situation. The fiduciary standard is a separate legal designation that applies to Registered Investment Advisors. That said, nothing prevents me from operating with a fiduciary mindset, and that is exactly how I approach every client relationship. I want to do right by you because it is the right thing to do.
Do I have to pay you anything?
No. I am paid a commission directly by the insurance company after a policy is issued. You never write me a check, and the commission does not come out of your account value. It also does not change what I recommend. If it is not the right fit, I will tell you that too.
The Process
How does the process work?
We start with a conversation to understand your retirement income picture, what you have coming in, what you spend, and what gap exists between the two. From there I present potential solutions from multiple insurance companies based on your specific situation. You decide what makes sense, and I handle everything from application through implementation. We check in annually and can adjust your income timing if your situation or goals change. The decision is always yours. I am here to guide, not to tell you what to do.
How long does the process take?
From our first conversation to a policy being placed, the typical timeline is two to four weeks depending on the source of funds, the insurance company, and the complexity of your situation. There is no rush. We move at your pace.
Protection and Guarantees
How is my Pension Strategy protected if something happens to the insurance company?
Like any corporate pension, the Pension Strategy is an insurance solution and guaranteed by the claims paying ability of the insurance company. Every insurance company doing business in Texas is required to be a member of the Texas Life and Health Insurance Guaranty Association, or TLHIGA. TLHIGA provides certain protections for policyholders if a member company becomes insolvent, up to coverage limits that vary by policy type. For complete details see the TLHIGA disclosure in the General Disclosures section below, or visit www.txlifega.org.