Replace Your Bonds & Bank CDs for a Better Retirement

10.25.24: Audio automatically transcribed by Sonix

10.25.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to Retirement Results, the national radio show and podcast for listeners like you who want to protect and grow their hard earned money. In a world filled with so much uncertainty and financial risk, we seek to cut through the noise and build successful plans for hard working Americans on their road to financial freedom. Retirement results is powered by Active Wealth Management, a team of fiduciary advisors who always place your needs first and now your host. He's a registered social security analyst, member of the Forbes Finance Council, and author of multiple books on retirement planning. Here's your chief financial adviser, Ford Stokes.

Speaker3:
And welcome to retirement results result drivers. I'm Ford stokes, your chief financial advisor. And I've got Sam Davis, our co-host and senior financial advisor here on the show with us. Sam, say hello to everybody.

Speaker4:
Welcome to the weekend result drivers. And welcome back to Retirement Results. We had such a good show last week. Ford. We've been hearing from a lot of the result drivers out there who are interested in how they can reduce risk without having to reduce their returns, and we've got some more to talk about in that regard this week as well. We're also a week and a half away from a big, big election. And Ford, I know you've got two daughters that just turned 18 years old and are excited to go vote for the first time.

Speaker3:
Yeah, we're super excited. They're all going to cast. We're all going to cast our votes for Donald J. Trump for president of the United States, and super excited that we get to do that as a family. That's that's a really special moment for us. And hopefully it'll will get a fair and legal election and Donald J. Trump will be our 47th president of the United States, and we can get back to being the United States of America and not what we've seen the last three and a half or three and three quarters years. It's been really tough for me as an advisor. A lot of people say, hey, Ford, you know, why don't you fence ride? You can work with Democrats and Republicans. Quite honestly, this comes down to being an American and wanting the very best for our children and wanting to get back to the America that we all know and love. I've got friends in Western Carolina that have been affected by the Hurricane Helene and all that stuff, and and the lack of support from this administration and this federal government has been absolutely awful. And so but we've always been supporters of Donald J.

Speaker3:
Trump. I've this will be my third vote for Donald J. Trump for president. Um, so anyway, I'm not going to fence right here on retirement results. I am casting my vote for Donald J. Trump. So my daughters, we got them registered to vote last month. They turned 18 on the 18th of October. Just, you know, five just a few days ago. And, um, we're super excited to be able to go do that. And thanks for mentioning that. Also, we've got the end of cheer comp season for and Go North Forsyth Raiders because they are, um, going to compete in regionals and also the game day comp at Dawson and also the game day regionals. And then we've got state for both of those. So we're super excited about where we're headed on the cheers front here the next three weeks. And look out there where it's just it's going to go really quick. And and Sam, this is our last high school year of competition because they're seniors. And, um, I will tell you, as parents, it all goes really fast.

Speaker4:
Yeah. You get one more go round at it, but it's just a beautiful time of year for it. Here in the South, we're seeing those fall colors really start to come in nice. Hope everybody's football teams are doing well in the college football season and the NFL season and just a great time of year. And like I said, make sure if you haven't yet, make that plan to get out and vote early. Voting, I believe, is still open, so you can cast your ballot early and election day is Tuesday, November 5th.

Speaker3:
The Georgia Bulldogs look pretty great last week. I know a lot of the Georgia fans are super excited about that with their win. And unfortunately, Georgia Tech came up on the short end of the stick at the Benz against Notre Dame. I was hopeful that they would do pretty well. We always pull for the local teams here and and good luck to everybody in this college football season. I wanted to kind of just give you an overview of today's show. So our show today is set yourself up for retirement success. Plus we're going to talk about smart, safe alternatives to bank CDs as well. But here's what we're talking about today. Number one is we're going to talk about actual performance and the actual index performance on three really high performing, high flying fixed index annuities that are really doing well, that are generating growth and income for clients. We wanted to share the actual index performance over the last two years. For those three, one is from nationwide. Called the nationwide P10. The other one is the North American Charter Plus 14, and the third one is the SPDR Synergy Choice Bonus. And pretty excited about all of that. We're going to do that right after I kind of give you the rest of what we're talking about in today's show. So number one is we're going to talk about the biggest regrets of older Americans. Two top regrets concerned planning for retirement, by the way. And then number two is America receives a C plus for retirement.

Speaker3:
Why you can't count on Social Security as your retirement plan. Again, reminder, according to the Congressional Budget Office and the Social Security Administration, we're looking at the Oasi Trust Fund getting 100% depleted by 2035, which would mean a 23% across the board cut for everybody would mean you wouldn't get Social Security, but it would mean between a 20 and 23% across the board cut for everybody receiving Social Security If Congress doesn't do anything about that, hopefully they will. I believe they will. But they've been kicking the can down the street since the Reagan years, to be quite honest. Number three is money habits of wealthy Americans. What the wealthiest retirees did to set themselves up for true success. Want to share those so you can copy those and duplicate those and follow those as well. And then number four is we're going to again, like we said, we're going to share those safe alternatives to beating bank CDs. We love our beating Bank CD segment. We're going to bring that back this week on this week's show. Um, because you really shouldn't settle for less return as you consider investing in multi-year guaranteed annuities or mygas instead of bank CDs. Or at least consider investing in brokerage CDs versus bank CDs because you're going to get a higher rate of return. That's a great hint today for everybody, Sam. And I know Sam, you've got a financial wisdom quote of the week you're going to share with us right now.

Speaker5:
And now for some financial wisdom. It's time for the quote of the week.

Speaker4:
This week's quote of the week comes to us from William Arthur Ward and William Arthur Ward once said, opportunities are like sunrises. If you wait too long, you miss them. And I love this quote for perfect for this week, because with where we're seeing interest rates going, you know you don't have much time if you're looking to lock in a higher rate. And we're going to present some opportunities for all of the result drivers out there today if they're thinking about that. And, you know, with an election coming up, you know, we don't know what the future holds. But we do know where taxes have been in the past and with how much they're spending up there in Washington DC, where they likely could be headed in the future. So some opportunities out there for Pre-retirees and even those who have just retired in the last few years to make those changes, just to further optimize and dial in that retirement plan because you've worked so hard 30, 40 years. I mean, we're talking multiple decades. The better part of your life to save up this nest egg. And really, what we want to do here at Active Wealth Management and Retirement Results is help you get the most out of that because we think you deserve it.

Speaker3:
No doubt about it. And also, we really want to encourage people to to start replacing the bonds within your portfolio, the fixed income portion of their portfolio with fixed indexed annuities as a bond replacement strategy, but also as a great way to generate retirement income and really protect that retirement income portion of your portfolio. It's just an overall retirement income strategy, and it starts with getting your retirement income gap analysis done right here with active wealth management. Again, retirement results as a radio show is powered by the advisors at Active Wealth Management. Fortunate and blessed to be the founder of Active Wealth Management and also the host of this show. Retirement results with my co-host Sam Davis. I'm a financial advisor and a fiduciary. So is Sam. So is Matt McClure. So is Carol little, and so is Brandy. Seats. We've got licensed financial advisors ready to help you. Also, we've got Diana Stokes and Chris seats that are there ready to help you with any of your retirement income needs. Obviously, all of our advisors do the same thing. So we've got a pretty big team. Also, our registered investment advisory firm has $8.8 billion in assets under management. We work with Brookstone Capital Management as our registered investment advisor.

Speaker3:
That's an advisory firm, and they are fantastic. And we're so glad to be investment advisor representatives with them. And you've got the power to be with a registered investment advisor or an Ria that's got $8.8 billion under management. That's really good news as well. We're here to help take care of all of your financial and retirement needs. But mainly we're here to help you do a do three things. We're here to reduce the taxes that you pay during retirement. We're going to help you reduce the fees that you pay in retirement. We're going to reduce the risk that you face in retirement with your retirement portfolio, so you can build that strong foundation for a successful retirement right here with active wealth management and the Retirement Results Radio Show, you can schedule your meeting with us directly just by calling us at (770) 685-1777. Again, that number is (770) 685-1777. Or you can visit Retirement results.com and click that schedule a consultation button in the upper right corner. Also you can visit our corporate website Active Wealth. Com. We're pleased and privileged to be contributors to the Forbes Finance Council, and we're contributing articles to Forbes.com consistently. Both Sam and I are contributors to Forbes.com. That's a great thing.

Speaker3:
And I'm also privileged and honored to have done the work to become a registered Social Security analyst. There's only 15 of us in the state of Georgia. I'm very busy running Social Security plans. We're here to help you do that. All you've got to do, if you've got questions on how to maximize your Social Security, if you have not turned on your Social Security income, or you haven't turned on spousal Social Security income, or you've got questions about a survival Social Security income benefit, I would encourage you to reach out to us. Just call us at (770) 685-1777 or reach out to us at retirement results.com/plan. That's retirement results.com/plan. When we come back we're going to share some of the best options for replacing the bonds within your portfolio. Really be careful about leaving your money in bonds. They've got a p e ratio of 150 plus and a go forward price to earnings ratio. Be very careful about what you're doing with bonds these days. Go ahead and come right back. We're going to talk about three great fixed index annuity options and other options including migas and brokerage CDs, to replace those bank CDs that you've been holding on to retirement results.

Speaker2:
We'll be right back to learn more and schedule your complimentary retirement consultation, visit retirement Results.com.

On the mountain top was burning like a silver flame.

Speaker2:
You're listening to retirement results. And now back to the show.

Speaker3:
Welcome back to retirement results. Result drivers. I'm Ford Stokes, your chief financial advisor. We've got Sam Davis here. With us is our senior financial advisor and co-host with me. So, Sam, we got a lot of questions. We've just done a run of seminars over at Mercer University and at Ruth's Chris over in Alpharetta, right off Heinz Bridge. And we had a lot of folks at all those seminars, and we got a lot of questions about the actual performance on fixed index annuities, because people are more and more interested in those. And as they learn more about replacing the bonds and trying to get to a new 60 over 40 portfolio with 60% stocks and 40% fixed index annuities, instead of the 72 year old strategy from Harry Markowitz called modern portfolio theory that states if you just invest in stocks and bonds on the same exchanges, you should be able to build a an efficient frontier or an efficient investment frontier. The premise there is if money moves out of stocks, they'll move into bonds on the same markets. I think that's an. Yeah. It used to be a tried and true strategy. It's had a really rough go over the last four years as interest rate risk has really impacted, um, the value of bonds, especially the bonds that people held 4 or 5, six, seven, eight years ago.

Speaker3:
So I'd encourage everybody to go ahead and reach out to us at (770) 685-1777. If you want to get any illustrations, you want to get a retirement income plan and a, uh, and an actual financial plan to your 95th birthday. Absolutely no cost to you. That includes a Roth conversion plan where you can delete the IRS from being your partner in retirement. All you gotta do is reach out to us at (770) 685-1777. A lot of people have trouble remembering a phone number, so you can just visit Active Wealth. Com or visit retirement results. Com we've got to schedule a consultation button in the upper right corner of both of those websites. Retirement results is the website for the show retirement results. They go to retirement results. Com and Active Wealth. Com is the website for our private wealth management firm Active Wealth Management. So Sam let's go ahead and talk about the actual index performance on the three most popular fixed index annuities that we're seeing out there that are getting requested by our prospects and clients.

Speaker4:
Yeah. So if you're looking for some good options for a bond replacement, We'll start here with our first example. And this would be the nationwide peak ten. So this is an FIA offered by nationwide the same company that is by your side A+ rated by both a m best and S&P and the nationwide peak ten. If you are linked to the BNP Paribas Global H Factor Index, you have all your choices of you know, which index do you want your investment tied to? But they're offering a 325% participation rate currently in that BNP Paribas Global H factor index. What that means is you would essentially get 3.25 times the performance of what that does, less a 1% spread. So just taking a look at if you were invested over the last two years, how would that have done? You just take 10.04% growth times that 325% participation rate, subtract the 1% spread, and that's a 32.08% growth over the first two years. However, you also have a 20% income bonus, which brings that growth over two years to 52.08%. So that is a fantastic result. This is another one that we mentioned last week. If you missed last week's show, go back to the Retirement Results podcast and you can really learn how you can reduce risk without having to reduce those returns and so forth for that reason. You know, nationwide and the nationwide peak ten is the first thing we wanted to share this week.

Speaker3:
Yeah, we really like that. Nationwide peak ten. Only 1% of financial advisors have access to it. And you and I are part of that 1% of advisors that have access to that product. So we're pretty excited about that. Um, just so we're clear, 325% means 3.25 times a 10.04% growth over the last two years, and the 1% spread rate is something they take off. So it was it would have been 33.08%. But you're getting a 32.08% net growth over two years, plus the 20% income bonus on the front end. That's pretty remarkable. The next one we want to talk about is from another A-plus rated carrier. This one is more of an accumulation based product, but nationwide peak ten is a combination between accumulation and income. And so that's kind of a best of both worlds. But this next one is an accumulation based product. And you can still generate your own withdrawal rate anywhere from 1 to 10% penalty free if you want. Each year we recommend a 4 or 5% withdrawal rate. But if you take the North American Charter plus 14, it's a 14 year product. They are A+ rated by Standard and Poor's and by Am best. So extremely highly rated carrier. And so the Fidelity Multifactor index has generated 7.77% times 135% 5% participation rate. That is, the performance is done over the last year. Now this is a two year protection product. So you've got to look at two years.

Speaker3:
So we're just going to double the growth from the last year. And that gives you a 20.979% growth rate with an immediate 13% immediate premium bonus when you buy the product. To give you a 33.979% account growth in the first years, now that account value and that 13% immediate premium bonus that will vest over the 14 year period of the surrender period of the annuity. But goodness gracious, to be able to get 33.979% in actual account value growth, that is remarkable. And it's with an A-plus rated carrier. So that's a really neat one. The other one both Sam and I really love as well. This one is special to both of our hearts because we really like this index. We also like the global h factor index from BNP Paribas. And we like the fidelity Multifactor index. But this next one is really a screaming great index. It's got a lot of great performance, especially over the last five years. Spdr, which is an A minus rated carrier with a m Best and Standard and Poor's. They offer the Invesco Q-q-q, um, that is generated 83.57% growth over the last two years. That's actual performance. The source for that actual performance measurement is invesco.com/q q q. Um, measuring the ETF if you want to look it up and they're offering you a 90% participation rate. Now granted it's lower than the participation rates with the nationwide peak ten and the North American charter plus 14.

Speaker3:
But what it does do is it's giving you 90% of how one of the most high performing ETFs out there. That's pretty good without any of the losses. So what? Sam, what you like to say is you like to say, hey, look, I would love to be able to get 90% of the q-q-q with none of the downside risk. I'll give you the 10% to be able to get access to the Q-q-q without sharing in any of the losses. And let me just finish this. The actual growth and what the net growth is for the account. When you look at 83.57% growth times 0.9, you're looking at 75.213% growth over two years in your account. So if you put in 100 grand, your accounts can be worth $175,000. That's just off the growth from the index. They're also going to give you a 15% immediate bonus. That gets you a net of 90.213% into the account value in the first two years. So if you invested in the in the SPDR Synergy Choice bonus product, and you put 100% of your allocation to the Invesco Q-q-q. Two year allocation to that index and linked to that index over a two year period. You would have gotten that 15% immediate bonus. That is an account value bonus that vests over ten years, which is really good because you don't have to go all the way to 14 years if you don't want to. It's ten year product like the nationwide peak ten.

Speaker3:
That's pretty attractive. A net growth of 90.213%, which is a which would mean if you'd invest $100,000 two years ago in the SPDR Synergy Choice Bonus and selected the Invesco Q-q-q as your allocation on a two year point to point or a two year protection period, you would have gotten your account value. Two years in a day would be worth $190,213. That's pretty good, considering you weren't risking any of the 100,000in your principal. So we really like the nationwide peak ten, the North American Charter Plus 14 and the Aspida Synergy Choice Bonus. All three are great options. We'd love to be able to run the illustrations on your money, which ones you would want to look at. If you want to look at it for 200,000, 300,000, 400,000. We've had people that are investing as much as $700,000 into these products because they want to get the income, so they don't have to worry about withdrawing money from their accounts and don't have to worry about the market stuff. We got like 30s left in this segment. When we come back. Sam, we're going to I want to hear from you on your impressions on the Invesco Q-q-q and that SPDR Synergy Choice bonus product. And we're going to talk more about how to generate retirement income and really good alternatives to bank CDs as well. You're listening to retirement results right here on Am 920. The answer?

Speaker2:
Learn more at Retirement results. Com or by calling us today at 777.

And they called it puppy love. Oh, I guess they'll never know.

Speaker1:
Fixed annuities, including multiyear. Guaranteed rate annuities are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer. Hi, this is Matt McClure, senior financial advisor with retirement results. You've saved your whole life so you wouldn't have to worry about your money when you retired. But you worry more now than ever. You've been a good saver. You have 500,000, maybe $1 million or even more. You should feel confident, but you don't. You're worried a big loss will wipe you out. You saved so you could spend during retirement, but you don't. You're worried you'll run out of money. You want to retire, but you don't. You're worried you don't have enough. Does any of this sound familiar? Well, it should, because we hear these things all the time from people just like you who are preparing for retirement or even already retired. So why do you worry so much? It's because you don't have an actual plan in writing. Nothing to guide you through retirement. Retirement results helps people just like you. You'll get a free, customized written retirement plan. That's right, free and no obligation. Schedule your meeting now at retirement results.com/plan. That's retirement results.com/plan.

Speaker2:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. While Washington's spending keeps growing, your retirement doesn't have to shrink, protect, and grow your hard earned money today by calling us at (770) 685-1777. That's (770) 685-1777 to connect with a qualified advisor.

Speaker3:
And welcome back result drivers I'm Fort Stokes your chief financial advisor got Sam Davis here with us. Our co-host and senior financial advisor. And Sam we were just talking about the actual index performance of three really popular fixed index annuities that people are selecting to switch out the bond portion or the income portion of their portfolio. And we talked about the nationwide pick ten that has netted a 32.08% account value growth, with another 20% income value bonus. If you'd invest in that two years ago, your income account value would be up over 52.08% and the actual account value would be up over 32.08. The North American charter plus 14. That is 100% account value growth of a net of 33.979% growth in the first two years. If you'd invested in that fixed index annuity two years ago. And then the SPDR Synergy Choice Bonus that's got the Invesco Q-q-q as the underlying index offers a 15% immediate premium bonus into the account value, and we're looking at a 90.213% growth. Net growth into the account value over the past two years. If you'd invested into it two years ago, and let's say you invested $100,000 two years ago, that $100,000 would be worth $190,213.00. Sam, your thoughts on investing in that SPDR Synergy Choice bonus? With the opportunity in either the one year or the two year Invesco Q-q-q index linking.

Speaker4:
Yeah, I mean, for me, it comes down to the great credit ratings of all of these options and the performance you're getting with those underlying indexes. And yeah, with the SPDR Synergy Choice Bonus, that option to get 90% of the q-q-q gains with 100% principal protection from market losses. That is a fantastic opportunity. I mean, this is Invesco Q-q-q. We see them advertised during March Madness. Ford. I was even at the Georgia Tech Notre Dame game last weekend, and they've got Invesco Q-q-q on the field as the official ETF of of the Georgia Tech Yellow Jackets. So this is a lot of people know and trust. And I think the important thing for people to understand is these are bond replacement options, or options for a portion of your portfolio that allow you to still capture some great gains. But with 100% principal protection, you don't have to worry about those losses. And the Q-q-q is somewhere where I've put my own hard earned money as I plan for my retirement, which is many, many decades away. But I'm seeking that growth, and I think this is a great opportunity for a lot of pre-retirees and retirees who are seeking growth with that protection.

Speaker3:
Yeah, absolutely. So I think any of those three are just great options, whether it's the nationwide P-10, the North American Charter Plus 14, or the Aspida Synergy Choice. All three of those products are fantastic options for you. All you have to do is reach out to us at Active Wealth. Com and click that. Schedule a consultation button in the upper right corner or visit Retirement results.com and click that schedule a consultation in the upper right corner. We'd love the opportunity to help you get started and get those illustrations going. You can also just give us a call at (770) 685-1777. Again, that number is (770) 685-1777. We have offices in Alpharetta where our headquarters is. We've also got an office in Kennesaw where we can meet with you. We have an office in Cartersville, and we also have a midtown Atlanta office over there, Colony Square. And so we're here to help you any part of Atlanta. And we'd love the opportunity to meet with you. A lot of folks just want to meet with us in our headquarters. But we're happy to do that. All you do is reach out to us at (770) 685-1777 or visit retirement results. Com. Now Sam, let's talk about some options on how to beat bank CDs with our beating the Bank CD segment.

Speaker2:
Need a higher rate of return from your safe money. Listen up. It's time to beat the bank CD rates.

Speaker4:
So, Ford, we've spent the first part of today's show talking about good bond replacement options for that portion of your portfolio. Now we're going to talk about some good CD replacement options, or maybe just some better alternatives for those bank CDs. And I've got to take a moment for to give a shout out to Louis, who is a listener to retirement results. He's been listening. He told us on the phone so long that he's been listening since it was the Act of wealth. Show back a couple. That's very nice. That's very nice. Louis has a daughter who is a conservative investor and she has been laddering bank CDs. A lot of you out there may be doing this yourself or, you know, someone out there that's doing it. Basically, you get a bank CD and then once the term is done, you re-up and take whatever that rate is at the time. But we're here to tell you today, here in this segment about how there are better options for that smart, safe money out there. And one of them is amigo. But, you know, Ford, talk a little bit about why bank CDs are something that maybe you want to steer away from. I mean, for me, the biggest concern I have for, for our clients is that reserve requirement. I mean, your deposits in the bank, there's only a 10% reserve requirement versus when you have a portion of your money with the insurance company, they have a 100% reserve requirement.

Speaker3:
Yeah.

Speaker6:
I like having.

Speaker3:
A 100% financial reserve requirement, I like that. I also like the fact that my rates are generally higher than the bank bank's CD rates, and I would encourage people to reach out to us if they want to get the latest micro rates, you can reach out to us at (770) 685-1777. And then also we've got brokered CD rates that are offered by, like JP Morgan and others that are higher than the typical bank CD rates as well. And those are 12 month products. So there's two different ways we can go. We can put it as part of your managed portfolio in assets under management, or we can invest that money into a 2 or 3 year, multi year guaranteed annuity. That's a really good idea. Both of those products are paying higher than bank CDs. And we encourage you to go and reach out to us at (770) 685-1777 or visit retirement results. Com just click that schedule a consultation button in the upper right corner. I just personally feel a lot better investing in 100% financial reserve product. That pays me a higher interest rate. I don't know why that doesn't make any sense or why other people haven't taken advantage of it, but it is a huge thing to take advantage of. I'd rather get a higher interest rate, and I'd rather get 100% financial reserve protection. Reminder for everybody. Not that any of us were still alive when this happened, but during the 1929 crash, from 1929 to 1939, 60% of all US banks closed their doors and only 40% of those banks ever reopened, whereas the 100% financial reserve insurance companies and annuity companies, none of them, closed their doors because they were forced to reserve 100% of the money so they could give their investors and give their depositors money back.

Speaker3:
And I just think that's the way we go. Also, one time I talked to a regulator with the Insurance Commission, with the state of Georgia, and he told me that what they do when they're regulating Relating insurance companies or their saying that an insurance company or an annuity company might get distressed. They make their decisions on what their actions are going to be, to make sure that they're protecting where not a single policyholder will lose a dime from that company. So they make they take action immediately if they're going to do that, because they want to make sure that they're protecting the money of the policyholders. They're not protecting the company. They're protecting the policyholders. First, with the State of Georgia Insurance Commission, I think that's the right way to look at it. Annuities are regulated by the states. They're not regulated by the federal government. And the states have to balance their budgets. So they require the 100% financial reserve product, so that they don't have to come up with the money to make the shareholder whole. So that's another thing to really think about. There's other safeguards out there that we can talk about when we're talking to you one on one. Reach out to us at (770) 685-1777. And again, I would strongly urge you and encourage you if you are a bank CD investor. You hold bank CDs right now. I would encourage you to go ahead and try multi-year guaranteed annuities or brokerage CDs to get you a higher rate of return and hopefully a higher financial reserve with the migas, for sure.

Speaker4:
Yeah, and another reason I would maybe look elsewhere instead of bank CDs is you sort of run into the same issue that you do with bonds. When we were talking about bond replacement in the first part of the show, and that's interest rate risk. You know, with Amiga you can get these two, three, four even higher lengths of term options with those Amigas. But the bank CD, there's no guarantee that that same interest rate that you may like or you may be okay with now, there's no guarantee that that rate's going to be there when your CD expires and you go back to renew. And so just that interest rate, that interest rate risk still being a factor is another reason why we would steer people away from bank CDs.

Speaker3:
We come back. We're going to have our problem solver, and Sam is going to share what a thousand older Americans said when they were asked what were their biggest regrets? They've got two of them. Where retirement is really up close and personal, you're going to want to hear these two regrets that Americans have. Go ahead and come right back. You're listening to retirement results right here on Am 920. The answer.

Speaker2:
Thanks for listening to retirement results. Schedule your complimentary financial consultation now at retirement Results.com.

Oh, what a night. Late December back in 63. What a very special time for me. As I remember.

Speaker1:
Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company. You may not receive the bonuses if the contract is fully surrendered, or if traditional annuity payments are taken, and if the policy is partially surrendered, it could result in a partial loss of bonuses. Because these are bonus annuities, they may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don't offer a bonus feature.

Speaker2:
Are you concerned about rising taxes and how that could affect you and your family during retirement? If you have an IRA balance over $400,000, you could save six figures in retirement taxes that you would be paying during a 35 year retirement. Find out how much you could save today by scheduling your no obligation Roth conversion consultation with Ford Stokes of retirement results. Learn more and schedule an appointment at retirement results. Com investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit retirement results.com for more information. Miss part of today's show. Retirement results is available wherever you listen to podcasts and online at retirement results.com.

Speaker3:
And welcome back to Retirement. Results. Result drivers. I'm Ford stokes, your chief financial advisor. Got Sam Davis on the mic here with us. He's our co-host and senior financial advisor. And Sam let's go ahead and share our problem solver segment of the week.

Speaker2:
It's time for this week's Problem Solver.

Speaker3:
So a really good friend of mine, his name is Jimmy. His wife's name is Jane. Uh, they they live in the South here. Uh, they work. He works out of Atlanta, uh, with a major corporation in Atlanta. And Jimmy dealt with his parents with Social Security. They were 83 and 84 years old right now. And and in failing health, unfortunately. And he just felt like they didn't really get enough Social Security income during, you know, their, their lives especially, you know, post 65 years old and he thought it was going to be the same for him. And he didn't realize that his wife, who is stayed staying home and taking care of the kids. He really didn't realize that his wife was going to be eligible to get 50% of his benefit as a spousal benefit. He thought she was just going to get his benefit, or 50% of his benefit, when he passed away, and that was a survival benefit. As a registered social security analyst, I ran an RSA roadmap report for them. They they here's what they did. They sent me over their two XML files. They went to Tsa.gov Social Security Administration's website, the Tsa.gov. They downloaded their XML files and they were able to get those over to me. We put them into our software so we could get the exact top 35 earning years for he and her. Um, and I gotta tell you, he thought he was going to get about 36 to $40,000 in Social Security income benefit. The actual is more like 73,000 if they both take at 67, and if he takes at 70.

Speaker6:
And she.

Speaker3:
Takes it.

Speaker6:
67.

Speaker3:
They're going to get 93,000 USD, which is more than double what he thought he was going to get. And he thanked me, thanked me, thanked me. He sent me a gift card from Longhorn to go get a steak dinner for it. That was really nice of him. Appreciate that, Jimmy, but I gotta tell you, more and more people just don't know what is available to them for Social Security. And the Social Security Administration is not going to tell you. It's not that they're trying to keep it from you. They're busy. They got a lot of other things to do. But a Social Security administrator, they are not somebody that is there as a fiduciary to take care of your needs. They're not. They are there to do their job and move on to the next person. So I'd encourage you to reach out to us at (770) 685-1777 to see how you can maximize your Social Security income benefit, or you can just reach out to us by going to retirement Results.com and click that schedule a consultation button in the upper right corner. You get put directly into my calendar. You've heard me say this before. I mean, there's only 15 registered Social Security analysts in the state of Georgia. I'm one of those 15. I am busy running a lot of Social Security plans. We're happy to do it. I love doing them. Go ahead and reach out to us, and I will run your own RSA roadmap to maximize your very own Social Security for you and your spouse. And Sam, why don't you go ahead and share the two biggest regrets that were regarding retirement from a thousand older Americans that were surveyed recently from Businessinsider.com.

Speaker4:
Yeah, I found this really interesting. This came across my desk just earlier this week, this survey done by Business Insider, and they surveyed 1000 seniors in America and simply asked them, what are your biggest regrets? And two of those 4 or 5 of the most common regrets that they heard from those 1000 Americans had to do with retirement. So I just wanted to share this and I took some notes on this. And one of the regret regrets they shared was simply not saving enough for retirement. Some of them described saving for retirement as this trial and error process, saying they wish they had worked with a financial advisor or had educated themselves on growing their wealth throughout their working years. And nearly every respondent said they wish they had saved more for retirement. Many said they lived too much in the moment, and didn't consider putting money into retirement accounts or investments throughout their lives, for this is why we encourage people to pay yourself first. You know, don't think of it as money going out the window. Think of it as an investment in your future retirement and investment that will grow before you get to those retirement years. So the the one regret that really stuck out to me was people regretted, you know, even as they were, you know, in their in their final years of life, not saving enough.

Speaker3:
You talk about paying yourself first, Sam. I would encourage people to try to try to get to that 10 to 15%. Pay yourself the first 10 to 15% that you get. So that's the first 10 to $0.15 of every dollar you make. Pay yourself first. You've got money left over. And for those of you who've got four, 1 or 4, 3 or 457 seconds or even Sep IRAs, definitely try to save at least 10%. Definitely, definitely make sure you're saving enough up to the match, because it's really scary if you don't invest up to the match. Um, of 3 to 6%, that would be really scary if you didn't do that. So I'd encourage you to go ahead and try to save that first 10 to 15% if you can, especially if you're over 50. You need to do that. You need to get to 15% savings each year. Believe it or not, you can catch up. Don't just throw your hands up. The best time to plan is right now. You can't go back in time. You can't go hop in a time machine. Just start planning and start saving right now and pay yourself first.

Speaker4:
Yeah, that's absolutely right. And if you are over 50, give us a call here at Retirement Results and Active Wealth Management so we can tell you how to make the most of those catch up contributions which you're entitled to use once you're over the age of 50. But in addition to not saving enough for retirement, a lot of people also mentioned Ford simply just making mistakes during the retirement process. And this touches on what we were just educating all of our result drivers. About over two dozen respondents said they claimed Social Security too early and received less money each month than if they had waited to their full retirement age. This isn't talking about delaying all the way to age 70, just delaying to that full retirement age. So you're not getting pennies on the dollar for that money that you've been putting in during all those decades that you've spent working. Some said they had to collect Social Security early because they needed the money, and simply others said they just didn't realize how much more they could have gotten if they'd waited. And that's why I think it's fantastic that you're here to serve as a resource for all of our listeners, our clients, even people who aren't clients, who are just interested in educating themselves a bit more on improving their retirement. Get that Social Security roadmap from Ford Stokes and Active Wealth Management. It really just shows you in a beautiful chart on one page, you know, on the x axis there will be one spouse, the y axis will have the other. And you can really start to dial in okay. What is our Social Security going to look like as far as income benefit goes depending on when we make our decision? And I think that's a great free resource for all the listeners out there.

Speaker3:
Yeah, I'm super excited to be able to help people maximize their Social Security. We've got two minutes left. It's the final.

Speaker2:
Countdown. So let's recap what you may have missed. It's the final.

Countdown. The final countdown.

Speaker3:
Really just kind of a final countdown here. And by the way, next week we'll talk about the money habits that wealthy retirees had in common before they retired. Um, and tips for today's pre-retirees. Be sure to tune in next week to get that. Sorry we ran out of time, but on today's show we we talked about three really important, um, fixed index annuities that are very popular. A lot of people are doing with the actual performance that people have had if they invested into them two years ago. Something to always really kind of look at. I like looking at illustrations, what the estimates are, but I really like looking at the actual performance. And then we talked about beating bank cities and, and and having bank CD replacement options. Also we talked about bond replacement options and replacing the bonds within your portfolio. You really need to get to a better income strategy. It's just the bottom line. You want to reduce fees. You can delete the advisory portfolio fees with fixed index annuities as well. Those multi year guaranteed annuities and brokered CDs are great alternatives to bank CDs. Specifically migas or multi-year guaranteed annuities are great alternatives because they've got 100% financial reserve requirement. That's a really good idea to invest in that versus a bank.

Speaker3:
Cd only has a 10% financial reserve requirement, and those migas also pay a higher interest rate and are two and three year Miga versus a two and three year bank CD. And Sam, you just shared the biggest regrets of older Americans. I totally agree, if you think you deserve more than $0.70 on the dollar of what you put into Social Security, then do me a favor please make it past 62.5 or 63 years old. When you start taking your Social Security income, try to get to 65. We like to see people make it to their full retirement age without over withdrawing. If you can do that without taking out more than 4% a year from your assets, we encourage you to do that because when you take Social Security, it's either your number one or number two most important decision you're going to make in retirement regarding your overall retirement plan. Listen, you've been listening to retirement results. If you're going to be a bear, be a grizzly. Be aggressive about seeking information about your own retirement and financial planning. Go ahead and reach out to us at retirement Results.com. Click on schedule a consultation button. We're happy to help you again. That's retirement Results.com. Go ahead and reach out to us. Have a great week everybody.

Speaker2:
Thanks for listening to retirement Results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary financial consultation, call us now at (770) 685-1777. That's (770) 685-1777. To connect with a qualified advisor. To learn more about our mission and our team, visit retirement Results.com. Investment advisory services offered through Brookstone Capital Management, LLC. Bcm, a registered investment advisor. Bcm, an active wealth management, are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest, if any, exist. Please refer to our firm brochure, the ADV Two-a, page four for additional information.

Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV Two-a item four. For additional information.

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