Behind the Numbers: Unraveling Social Security’s Funding Problem

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

Producer:
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.

Producer:
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, an author of multiple books on retirement planning. Here's your chief financial advisor, Ford Stokes.

Ford Stokes:
And welcome to Retirement Results. Result drivers. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis, our co-host and retirement income specialist here on the show with us. Sam, say hello to everybody.

Sam Davis:
Welcome to the weekend result drivers and welcome back to Retirement Results. Thank you all so much for giving us your great feedback. After our first week on the John Fredericks Media Network and on Am 920, the answer locally in Atlanta as well. We absolutely love hearing from our listeners. I'm glad everybody thought we were able to share some really important information. We talked with Eric Sussman of the Institute of Financial Wellness and tried to give you some really important information regarding tax strategies as well. And Ford, we've got a whole lot more to talk about this week. It's just going to be you and me today talking right to those result drivers, giving them the information that they need and deserve as they prepare for their own retirement.

Ford Stokes:
On this week's show. It's a very important show. We're going to talk about navigating common challenges in retirement, how to prepare for taxes and Social Security shortfalls, and more during retirement. But I want to first explain who a result driver is. So in our old show, the Active Wealth Show, we called our listeners Activators. Many of you are still listening this show because we're on the same timeslot in Atlanta, and we want to give a shout out to those activators. And here's who in a result driver is. It's those activators who used to listen to the active. Well, we're now listening to Retirement Results. And those are result drivers who are looking to do this. They're looking to build a tax efficient, fee efficient and market efficient portfolio. They're looking to protect and grow their hard earned and hard saved wealth. And they're looking to build a successful retirement, and we're here to help you do that during the next hour here on Retirement Results. We're so glad you're with us. We're also so glad you're part of this new rebirth and relaunch of the Active Wealth Show as Retirement Results. For those of you activators who've been listening to us for four plus years, Sam and I really appreciate you. And I just want to say hello. Result drivers, this is the way we're going to go forward. We're going to generate that tax efficient, fee efficient and market efficient portfolio for you so you can really enjoy your retirement years with your family. Uh, in our family we spell love Tim. We want to help you generate enough money and enough income during retirement, and build enough wealth and pay as little in taxes as possible so you can spend more time with your family so you can spend more time with your family and friends during retirement, and really enjoy the retirement that you've worked so hard for that you've really earned.

Ford Stokes:
Also, the CDC said they came out last year and said that, listen, if the two people within a married couple, the male and the female, if the male and female actually make it to age 65, there's a 60 plus percent chance that one of them's going to live to be over age 90. And I would ask you, do you feel like your retirement is built to live to age 90 or longer? And I know a lot of us men out there, legacy is really important. But legacy really starts first with us taking care of our wives and making sure that they have a really good retirement if we happen to go first. On average, women live about seven years longer. Many women marry men who are older than them. My wife happens to be seven years younger than me. Yes, I'm pretty good at closing the deal. I was very happy and fortunate to get Diana to marry me when she did over 22 years ago. Shout out to my wife, Diana Stokes. I love you very much, honey, and what that means is, you know, Diana could live like 14 plus years longer than I do. And I've got to make sure that we have a retirement built for the long haul for her. And I would say the same for you. I mean, I Sam, I know that you have the same feeling. I know you're much younger than me, but for Bailey and for your wife as well.

Sam Davis:
Absolutely. My wife and I's third wedding anniversary is coming up later this month. We've had a lot of great memories in our marriage so far. We've actually known each other for over ten years now, and obviously she's the most important person in my life and I understand that. I'm hopefully a long ways off from, you know, graduating on up to Heaven. But whenever that time does come, if she's still here, absolutely. The number one priority is making sure that she would be taken care of, the family would be taken care of. And sometimes that means life insurance solutions. And as you get older, that means retirement solutions. Yeah.

Ford Stokes:
So we're going to try to figure out again how to prepare for those taxes that are coming down the pike, how to delete the IRS out of being your partner, retirement. Also, what's going on with Social Security shortfalls and how you can backfill that, and also how to really fill in any potential retirement income gap that you may or may not have. We hopefully you're starting out your retirement or you're in your retirement, or you're going to plan and build your retirement over the coming years. If you're a pre-retiree with that retirement income surplus. But we want to make sure that you get prepared. And we call this results in advance planning. So we give you your Retirement Results in advance. And if you want to get your Retirement Results in advance, you want to get a free financial plan to your 95th birthday. It's a $1,500 value, absolutely at no cost to you because you are a result driver and you actually listen to Retirement Results here on the John Fredericks Radio Network and on Wgka Am 920. The answer in Atlanta. I would encourage you to reach out to us at RetirementResults.com just go to RetirementResults.com and click that financial consultation in the upper right corner, and you'll get booked directly into my calendar. That's RetirementResults.com . And click that schedule a consultation button in the upper right corner of the home page of the website. And I think that button stays on every page of the of that website.

Ford Stokes:
You can also listen to all of our episodes. There at retirement. Results.com and Sam and I record each and every radio show via video as well. And, um, we're just so excited to be able to do that for the result drivers out there. And then one other way to get in touch with us, and we've tried to make it as easy as possible and keep. The dialing of digits down for you. So if you just dial pound 250, all you have to do is hit pound 250 and hit call on your phone. So it's a lot less digits than those ten digits if you're dialing a full a full phone number. So if you just dial pound 250, that's the pound sign 250 and use the keyword Retirement Results. All you have to do is say when they ask for the keyword, just just say Retirement Results. You'll get dialed in straight to our office, and Diana and Deborah are standing by to take your call this weekend. We're happy to do that. And also, Deborah will be there to take your call starting Monday morning if you want to call us, then, um, but again, dial pound 250 to use the keyword Retirement Results. And then one last final thing. If you want to just dial the regular phone number, you can dial a toll free from anywhere within the United States at (888) 814-0304. That's (888) 814-0304. And Sam, let's go ahead and share our quote of the week.

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

Sam Davis:
All right for this week's quote of the week comes to us from Milton Friedman, the renowned economist and Nobel laureate. Born in 1912, Friedman was a leading advocate for limited government intervention, and Milton Friedman once said, inflation is the one form of taxation that can be imposed without legislation.

Ford Stokes:
Yeah, I think we've seen that from this administration as well, where they're able to do exactly that. And I'm very gravely concerned about what's going on with inflation for retirees over the last two years. Um, also, you we've seen bonds really suffer. We've seen, um, the US national debt ballooned to over $34 trillion. And if you don't believe us, you can check out US debt clock. Org. But I would just say this. Milton Friedman is the truth in every sense of the word. Every time he and a lot of people. A lot of people try to discount him discount what he has had to say when he was alive. The problem is that everything he said is a 100% true. Um, one of the things he also said that inflation only comes from one place, and that's Washington, D.C., and our country. And that's exactly right. They do it through policy. They do it through printing too much money and also doing too much with entitlement programs. And we need to do everything we can to help you delete the IRS out of being your partner of retirement. When we come back from the break, we're going to talk about taxes and retirement and some things you need to consider about taxes right after this next break.

Producer:
The national debt clock is ticking, but your retirement clock is too. It's time to take control of what you've worked so hard for. Schedule your free financial consultation now by dialing pound 250 from your cell phone and using the keyword Retirement Results. That's pound 250. Key word Retirement Results. Fixed indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's Peak Ten can help protect against market risk and provide guaranteed income for life. Peak Ten also has an optional rider that offers an immediate 20% bonus based on your principal applied to your income benefit base. Dial pound 250 and use the keyword Retirement Results to connect with a qualified advisor. Now that's pound 250. Key word Retirement Results. Indexed or fixed annuities are not designed for short terme investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company that may include higher surrender charges, longer surrender charge periods, or lower caps. Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within are subject to the claims paying ability of Nationwide Life and annuity insurance company nationwide. Peak Ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Brookstone Capital Management, LLC. While Washington's spending keeps growing, your retirement doesn't have to shrink, protect, and grow your hard earned money today by dialing pound 250 from your cell phone and using the keyword Retirement Results, that's pound 250. Keyword Retirement Results.

Ford Stokes:
And welcome back result drivers to Retirement Results. And again if you're a result driver you're somebody who's looking to build a tax efficient, fee efficient and market efficient portfolio. And you're looking to literally try to delete the IRS out of being your partner in retirement and specifically with your retirement accounts. And you listen to the show. You listen to the Retirement Results show right here on the John Fredericks Radio Network and on AM 920 The Answer in Atlanta. And we're talking about taxes and retirement and things you do not want to overlook. So Sam and I are going to take these one at a time. The first one is tax efficient withdrawal strategies. We will help you develop an efficient strategy for withdrawing funds from different types of accounts to minimize the tax impact. This might involve drawing from taxable accounts first and allowing tax advantaged accounts to continue growing. I'll give you a perfect example. What we encourage people do we tease this last week when you do a Roth ladder conversion, you ought to take money from your IRA to your Roth IRA and move it dollar for dollar, and then take money from your taxable account and pay the taxes on that conversion. So let's say you're in the 20% effective tax bracket. You move 100 grand from your your IRA to your Roth IRA. You owe $20,000 within three months of doing that conversion. You gotta oh, you gotta pay it within that quarter. So what I would encourage you to do is take $20,000 from either an investment account that would be a taxable account, or take it from a checking account or savings account and pay the tax on that so that when your IRA goes down 100 grand, which is tax deferred growth and it's a tax deferred account, your tax free account goes up commensurately equal to the amount that you withdrew from the IRA. All right, Sam, why don't you take this next one?

Sam Davis:
Yeah. The next thing we want people to not overlook about taxes and retirement is taxation of Social Security benefits. Because, yes, depending on your overall income, a portion of your Social Security benefits may be subject to federal income tax. So understanding how taxes work can help you plan accordingly for how you're going to receive income in retirement. And for most people out there, Social Security is a very important component of their overall retirement income plan. We're very fortunate here at Retirement Results and Active wealth Management to have a registered social security analyst on our team in Ford and Ford. Just talk a little bit about how important it is to understand what's your Social Security benefits going to be, how you can maximize it, but also keeping in mind there are some taxes due there.

Ford Stokes:
Yeah, there's over 2000 decisions and decision points within Social Security that you can make. Most people don't realize that. Also, the other thing that people don't realize is that when you take money out of your IRA. During retirement, and that turns into ordinary income, you could actually be spiking two things. You could be spiking Medicare surcharges going up for you, because with the two year lookback where they look back two years and see what your income is, and the second is you could increase the taxation on your Social Security income benefit. You really should check in with a registered Social Security analyst. There's very few of us in the country. In fact, I'm one of 15 in my state. So all you have to do is reach out to us by dialing pound 250 on your phone and use the keyword Retirement Results. Again, all you have to do is dial pound 250 and click call. And all you got to do is say Retirement Results. When the voice recording asks for, um, the keyword and just say Retirement Results. And you'll get put directly into a phone call with our office. And Deborah and Diana and our team are standing by to take your call this weekend. And on Monday, Deborah and the team will be there to take take your calls.

Ford Stokes:
I would just encourage you to reach out to us. You can also just visit us at Retirement Results. Com and click that schedule a consultation button in the upper right corner. But we're here to make sure that you're also paying less in Medicare surcharges to. And there's a lot that goes on with this. And if you're retired and you're hearing the sound of my voice and of Sam and I talking to you today. Do yourself a favor and reach out to us. We're happy to help you maximize the Social Security income benefit that you're going to get, or you are receiving already. And two, we're trying to minimize the Medicare surcharge you've got, and we can help you delete the IRS out of being your partner or retirement. And if you're in your 30s, 40s or 50s. We've got another way to reduce the taxes you're going to pay on retirement income and get you guaranteed growth and get you guaranteed retirement income. That is absolutely 100% tax free. Through a rule 7702 plan. All you've got to do is reach out to us by dialing pound 250 and use the keyword Retirement Results. Just just dial the pound sign 250 and click call and give us the keyword Retirement Results. And you'll get dialed straight into our office. And again our office toll free number is (888) 814-0304.

Ford Stokes:
That's (888) 814-0304. I'm going to go ahead and take this next one. So tax diversification we're talking about taxes in retirement and things you do not want to overlook. So tax diversification is one of those things you don't want to overlook. While it's common to focus on accumulating pre-tax retirement savings example being traditional IRAs and four one KS, 403 B's, 457 and simple IRAs, even a Sep IRA if you're a business owner. Having a mix of pre-tax with IRAs and foreign CS, etc.. Also, after tax accounts, which would be a Roth IRA and taxable accounts, which are your investment accounts or savings accounts, can provide flexibility in managing your tax liability during retirement. You really should have money in different tax buckets. And we can help you do that. And by the way, I'm going to tell you a secret. Just lean into the radio, but make sure you're watching the road. We can actually put more money in your tax free bucket than all the other buckets combined, if you'll just call us. Again, just reach out to us by dialing pound 250 and use the keyword Retirement Results, or call us at (888) 814-0304. We're happy to help you. And you can also visit Retirement Results. Com Sam, why don't you take the next one.

Sam Davis:
Yeah. First just want to say how important that tax diversification component is. So please give us a call. Dial pound 250. Use the keyword Retirement Results. Because last week on our problem solver segment, we talked about a couple of people that gave us a call, a couple that had a retirement tax bond. That's what we call it when someone has way too much of their hard earned retirement savings in those tax deferred accounts. We call that a retirement tax bomb because the IRS and Uncle Sam, they haven't gotten their cut of that money yet. And so you want to make sure that you have proper amount of tax diversification. So the IRS isn't that huge partner in your retirement.

Ford Stokes:
Hey, Sam, real quick on that. That couple actually called me while they were listening to the to the show. And we were able to take the call at the break. They were dying laughing and we were talking about them, but they were like, I know we you said tax bond, but we didn't really understand the real tax bomb. And we need to get started on Monday about the Roth conversion immediately they did that. And also they're interested in trying to figure out their retirement income plan as well. So I thought that was really interesting. First time we've actually had a couple that we were talking about actually hear us talking about them on the radio. So um, and then thanks. Shout out to to them for being loyal listeners. We appreciate that here on Retirement Results. The next thing that's really big for people to understand is, is what you're going to talk about next. I think especially with our good friends that are living in the northeast and Pennsylvania and Virginia and Delaware. Uh, there's a real concern here on the next one. Yeah.

Sam Davis:
The next thing you really want to consider is state taxes. You know, one thing we talk about quite a bit on Retirement Results and on our previous show, the Active Wealth Show, is, if you're choosing to relocate in retirement, making the right decision about what state to live in is key. For one, you want to be close to your family so that you're spending lots of time together, right? But if you can also be living in a state with tax advantages, that can be a big benefit as well. Or if you want to stay in the same state, understanding how those state taxes work so you can make them work to your benefit. So people right now are listening to us forward on Retirement Results all over the country. If you're listening where we are in Georgia, we've got a 5.75% state income tax on top of federal for most for most filers. If you're listening in Tennessee, we've got some listeners in the Nashville area and our affiliate in Tennessee, our affiliates there. They have great tax advantages in Tennessee. And as you mentioned, Ford, on the way up to the northeast, Pennsylvania, Delaware, not as great when it comes to taxes, can be a bit more expensive there. But for retirees there can be some benefits. So really it just comes down to don't forget about state taxes, understand the implications of where you choose to live and how it can impact your overall tax burden throughout retirement.

Ford Stokes:
State taxes are an important deal, by the way. We work with all kinds of people who relocate to Florida with zero state taxes. I know Tennessee's got a lot of tax advantages as well. So does the state of Texas. We can help you figure all that out. All you've got to do is reach out to us at RetirementResults.com RMDs required minimum distributions once you reach a certain age. Currently it's 73 years young. You're required to start taking minimum distributions from your tax deferred retirement accounts because the US government, they want their money, they want their tax money on the money that you've been able to grow over time. Don't don't get this twisted. Your 41K was there to grow tax deferred and to be a growth account. But also for the federal and state governments. Just so we're clear. They're also taxing on the harvest instead of the seed, and we would encourage you to try to nip that in the bud a little bit. All the puns intended here, and try to do a Roth letter conversion. It's a centerpiece of our practice at Active Wealth Management. And Active Wealth Management is the private wealth management firm that is behind Retirement Results. We're the ones that power Retirement Results is a radio show, and we're here to help you. Now we come back from the break, we've got three more important things you don't want to overlook for taxes in retirement. We're also going to talk about what's going on with Social Security, a potential shortfall starting in 2033. Trying to figure out your retirement income gap analysis give you the formula for that, and what you can do about all of this right here. When we come back on Retirement Results, we'll be right back right after this break.

Producer:
Retirement Results will be right back. To learn more and schedule your free retirement consultation, dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250 key word Retirement Results. At Active Wealth Management. We know you've worked hard for your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, Ford Stokes of the Active Wealth Show is passionate about helping people protect and grow their wealth while educating them on all their options so they can choose what's right for them. Visit Active wealth.com to schedule your free consultation today. It's a $1,500 value provided at no cost to you. Book yours now at Active Wealth Comm. Dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250 keyword Retirement Results. You're listening to Retirement Results. And now back to the show.

Ford Stokes:
And welcome back to Retirement Results. I'm Forge Stokes, chief financial advisor. I've got Sam Davis, our co-host and retirement income specialist here on Retirement Results. So Sam we're talking about taxes and retirement and things that our listeners do not want to overlook. And you're going to share the next on the list for us. Yeah.

Sam Davis:
The next thing that you do not want to overlook when it comes to taxes and retirement is health care costs. So medical expenses, a big part of the budget for almost every retiree out there in America today. So understanding the tax implications of health care costs, that includes Medicare and planning for potential deductions or credits is crucial. One of the things for that people aren't considering is Medicare surcharges. Simply put, the cost of Medicare to each individual out there. And because of the importance of health care, I mean, it's our health and our wealth, these two things we really need to manage as we get older. You need to understand the tax implications of health care as well.

Ford Stokes:
No question about it. Um, also just trying to reduce those Medicare surcharges, also selecting whether you're going to do a Medicare Advantage plan or you're going to select a medigap Medicare supplement plan, a lot of folks look to cap their costs so they can eliminate the co-pays, the 20% co-pays and deductibles as well. If you get checked into a hospital with Medicare, I think you're looking at a $6,790. Deductible that you're going to have to pay, and it's better for people to have a plan for that. So if you don't have a plan for what you're doing with health care costs, I would strongly encourage to reach out to us at RetirementResults.com and click that schedule a consultation button in the upper right corner. And we're happy to help you figure all that stuff out, as well as part of your overall financial plan. We work with a certified Medicare agents who are life and health licensed, who are also really great at the Medicare thing. And they're licensed. They're better at it than we would be, and we do straight introductions. They're also licensed in all the states in which Retirement Results covers. So within the sound of my voice, we can help you with a Medicare plan. No problem. No cost to you. All you've got to do is reach out to us at Retirement Results.

Ford Stokes:
Com and we're going to get you in touch with the right licensed and certified people for sure. The next one on the list. This is number seven inheritance and estate taxes. We will help you understand. How your retirement accounts will be treated for tax purposes when they're passed on to your heirs. And also, rules for inheritance and estate taxes can be complex. We actually will provide either a will or trust in estate by working with licensed attorneys in your state, across all the states in which the Retirement Results airs, and we can do it at a lower cost. We have found that even wills and and revocable trusts are costing over $5,000, sometimes $10,000, with some estate attorneys these days, because also there's fewer and fewer estate attorneys that are focusing that as part of their practice. And we've been able to strike up a national network deal with a group of estate attorneys that can help provide an incredible revocable trust or will for you or for you and your your spouse if you're married and do a marriage trust or also just individual trust, the revocable so you can change them if you need to. We can do that at a fraction of what the cost has been. And I would encourage you, if you feel like you've put off getting a wheel done or getting a trust done, I would encourage you to go ahead and dial pound 250 and use the keyword Retirement Results, because we're going to get you great inheritance and estate tax results for you and get a plan in advance.

Ford Stokes:
Get a results in advance. Plan for your inheritance and your estate absolutely at a significant discount for you and your family. I would encourage you to reach out to us. You can dial (888) 814-0304. That's (888) 814-0304. Or you can visit RetirementResults.com again. Go to RetirementResults.com and click that schedule a consultation button. What we're trying to do here, folks, is we're trying to provide value for everybody who's got concerns with the retirement. When you work with big box wirehouse advisors and brokers, a lot of times they're just doing dollar cost averaging and they turn into fee ravaging later within your accounts. That's what they focus on. We focus on retirement. We focus on helping you get an overall plan for retirement, for your taxes, to try to reduce your taxes, try to reduce your fees that you're paying, try to generate a retirement income you can never outlive. Let the rest of your portfolio grow. Help your your portfolio become more tax efficient and take some of the risk off the table for you.

Ford Stokes:
And we also will introduce you to licensed and certified folks regarding Medicare and also estate planning at a significant discount on the estate planning side and the Medicare side, you don't pay anything. The Medicare carriers pay that insurance agent who's HIPAA certified to be able to handle your Medicare needs. So we're going to take care of all of that for you. It's not just rate of return that we're looking at. We're trying to build an overall retirement plan. And these are some of the things you don't want to overlook regarding taxes and retirement. And also some of these things you may not have thought about. And if and if these are new, then you ought to reach out to us just by dialing pound 250 and use the keyword Retirement Results. And same. You've got one last one out of our eight things that we're talking about, things you don't want to overlook. Regarding taxes and retirement. And I'm going to recap those and let you do number eight. So number one was tax efficient withdrawal strategies. We're going to try to make sure that we're we're not just taking money out of an account that's that's down. Like if you took out a bunch of money for your IRA in 2022, chances are you took a really big hit because those assets are gone and couldn't rebound.

Ford Stokes:
Number two is taxation on Social Security benefits. That is one of the biggest hidden taxes out there. You really need to have a plan for that. And also just a retirement income plan as well. And how that affects your taxes on your Social Security income benefit. We also talked about tax diversification, diversifying between taxable accounts, tax deferred accounts and tax free accounts. And we gave you that one hint, that one hint that we can actually put more money in your tax free bucket than all the other buckets combined. All you got to do is reach out to us by dialing pound 250 and giving the keyword Retirement Results. Sam talked about state taxes. Yeah, that can be a really big deal, especially if you're in Pennsylvania, Virginia, Delaware and other places within this radio network. We really need to get you a plan for trying to mitigating state income taxes. And also moving to Florida is not a bad idea either. I'm not trying to make you move now, but when you retire, you might want to consider it. Um, and then also required minimum distributions. We talked about that and how that can really impact you health care costs. And we just talked about inheritance and estate taxes. And Sam you're going to give us the last strategy.

Sam Davis:
Yeah. The last thing to not overlook regarding taxes in retirement is charitable giving strategies. We work with a lot of people out there who have a big heart for causes, different charities, organizations. Maybe you're a member of your local church and you want to make a donation to your church on an annual basis. If interested, you can explore tax efficient ways to donate to these different charities and causes in retirement, such as qualified charitable distributions. So if you have questions about that or any of the things we discussed regarding taxes and retirement, just pick up the phone, dial pound 250 and use the keyword Retirement Results to connect right to our office or visit RetirementResults.com . And for, you know, speaking of taxes, taxes are often more complex in retirement than most people expect. And so you'll want to get in touch with us, get those tax questions out there so we can help you out. Obviously, consulting with a tax professional is strongly recommended for any personal advice based on your circumstances, but we work with people every single week regarding taxes and retirement, so we feel like we're a great source for you there.

Ford Stokes:
No question. We can help you for sure. All you got to do is visit us at Retirement Results. Com and you know, we really want to talk to you. We want to help you for sure. So Sam, let's now talk about Social Security and what's going on with Social Security trust fund, the old age Survivors insurance trust fund, the OAC, Social Security, SSA, gov, and the Congressional Budget office@cbo.gov. Both came out in April of 2023 and said, in fact, the OAC trust fund is due to be depleted 100% all the way to zero by 2033. Now, what that means is that means you're not going to get your Social Security benefit after 2033. What it does mean is that you're looking at a 23% cut, according to estimates from Social Security Administration across the board. If Congress doesn't do something, I think they will do something. I think what they're going to do is get rid of the income limit, and they're just going to tax all year, 6.2% plus the employer has to pay 6.2%, so 12.4% total. Um, what else is interesting? There's been there was over in 1950, there was over 16 workers for every Social Security recipient. Right now it's 2.6 workers for every Social Security recipient. And that's going to go down to 2.3 workers for every Social Security recipient by 2030. So you really need to have a plan besides Social Security, in addition to Social Security, to make sure that you've got a successful retirement plan. And we've got 30s left in the segment, we come back, we're going to talk more about the issues inside Social Security and how you really need to get a retirement income plan for you to make sure that you're taking care of yourself. Remember, if it is to be, it's up to you and me. We're here to help you plan for successful retirement. You're listening to Retirement Results right here on the John Fredericks Radio Network. We're so glad you're with us. Come right back.

Producer:
Thanks for listening to Retirement Results. Schedule your free financial consultation now at Retirement Results. Com or by calling toll free at (888) 814-0304. That's (888) 814-0304.

Mom and. Dad. Way. To get a good job before paying your. Okay.

Producer:
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Ford Stokes:
And welcome back to Retirement Results. Result drivers I'm Ford stokes your chief financial advisor. Got Sam Davis here. Our co host and retirement income specialist here on the mic with us too Sam. We're talking about Social Security. We're talking about what happens when the Oasi trust fund runs dry in 2033. Again it's not gonna be 100% cut, but it'll be a 23% cut across the board. If Congress doesn't do something, we think they're just going to increase the taxes that employers and employees have to pay to make sure. But also remember, there's fewer and fewer workers than ever before that have to help fund Social Security. Um, so it's a real problem. Also, SSDI, the Social Security Disability Income Fund, has been just, oh my gosh, it's been abused. There's been fraud against it at times. And and that's helped deplete funds as well. I just feel like those funds should have been treated preciously, and we shouldn't be willing to let the Oasi trust fund go to zero by 2033. It shouldn't happen, and we need to take care of the people that have gone before us. And also many of you are listening. This is going to be well within your retirement years. I mean, we're in 2024. It's nine years away to get to 2033. But Social Security is the largest federal program in the United States. The vast majority of older Americans receive Social Security benefits, which either partially or even fully fund their income in retirement.

Ford Stokes:
For 2024, the average Social Security check is expected to provide $1,907 in monthly income. That's up from $1,848 in 2023. This increase is attributed to the 3.2% cost of living adjustment, or Cola, for 2024. Also, when you talk to economists like John Williams over at Shadowstats Comm, he believes that the actual inflation rate is closer to 14.1 or higher based on how they used to measure inflation back in the Nixon years. That's shocking. So I don't think any of us believe that we've only had 3.2% in inflation in the last 12 months. Despite this increase, the average benefit amount is not very high, providing an annual income of only $22,884. This figure underscores the importance of additional savings to supplement Social Security benefits. About 97% of Americans age 60 or older either receive or will receive Social Security income benefits, according to the Social Security Administration. Listen, I'm a registered social security analyst, and there's not a lot of us around there around here, and I would love the opportunity to help you. All you've got to do is reach out to us at RetirementResults.com . We anticipate some changes in the coming decade, so it's critically important that you get in touch with us to learn how to maximize your own Social Security income benefit, how to reduce your Medicare surcharges based on your own unique situation and needs.

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

Ford Stokes:
So we talked about this last week. There's a female, a single woman. Her name is Lisa and she's in her 50s. She earns $220,000 a year in income. She's a marketing executive in the aerospace industry. She listened to our show. She gave us a call to start planning her retirement. She wants to retire on her 65th birthday. Her job doesn't offer a pension and she wants to establish a personal pension. But also she's also concerned about future tax increases. We suggested a tenpay a ten years of monthly payments index. Universal life policy. Of 2000 a month. That's 24,000 a year. That's $240,000 total in premium that she's going to pay over ten years. She can handle this within her budgets because her her actual living expenses are $3,000 or less a month. The index nature of the IOL allows her to money to grow, as its performance is linked to an underlying market index, while at the same time her contributions are protected. She also will have the benefit of life insurance as a death benefit for her daughters and her grandchildren. Once Lisa reaches retirement at age 65, Lisa will draw approximately $44,244 a year tax free as loans against the policy. This falls under IRS code 7702, which allows certain life insurance policies, such as Iols, to qualify for favorable tax treatment.

Ford Stokes:
Here's the deal. The IRS can't charge income tax on loans, so that's why they're able to do that. After taking into account this $44,000 per year plus her Social Security income benefit, she'll still have a small retirement income gap in her plan to close the gap, she's choosing to invest $200,000 into a fixed indexed annuity, specifically the nationwide Peek ten, where she will turn on at age 65, the same time she turns on Social Security and starts taking tax free income from her IUL policy. The $200,000 investment in a personal pension solution is projected to generate $28,000 per year or more in income for Lisa, which will allow her to meet her budgets during retirement. She wants to travel a little bit more and really enjoy retirement. With this plan, Lisa is able to beat the typical 4% withdrawal rate made by retirees. She will allow the remainder of her portfolio to grow with smart risk investments, with tactical asset allocation, with structured notes, brokered CDs and also tactically managed portfolios and allocations within those portfolios to grow until she reaches the age of 73 and starts taking required minimum distributions. We're also going to implement Roth ladder conversions as well. She's done a really good job at saving into her 41K2. It's the final.

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

The final down.

Ford Stokes:
So in this week's show, we talked about taxes and retirement and some things you need to consider about taxes and things you don't need to overlook. We also talked about how Social Security is potentially running dry with the Oasi trust fund going to zero by 2033, and you have a retirement income plan for that, where you could potentially see a 23% cut across the board. If Congress doesn't do something, we think they will, but they've had decades to deal with it and they haven't dealt with it yet. We also gave you an important problem solver that we just talked about here on the show, where if you're in your 50s, 40s or 50s, you can implement a tax free retirement income plan by investing into a five pay or a ten pay indexed universal life policy and get market like gains without market risk, and also generate tax free income from that policy. We also talked about a really important tip on how to convert money from your IRA to your Roth IRA, using money from your taxable account to pay the taxes on that so that as your IRA goes down, your Roth IRA goes up at the same number of dollars.

Ford Stokes:
So dollar for dollar, your Roth IRA grows as your IRA depletes as you do the conversion. Again, we want to remind you to schedule your free financial consultation with us at RetirementResults.com . You can visit retirment results.com and click that schedule a consultation button in the upper right corner. And also you can dial pound 250 and use the keyword Retirement Results. Also call us at (888) 814-0304. That's (888) 814-0304. Listen, for all you great Americans out there, for all you patriots, remember, if you're planning for retirement, if you're going to be a bear, be a grizzly. Seek as much information as you can and really plan for your own retirement. Because remember, if it is to be, it's up to you and me. We're here to help you plan for a successful retirement right here on Retirement Results. Your active wealth management team is here to help you prepare for that successful retirement. Again, reach out to us by dialing pound 250 and giving that keyword Retirement Results. Have a great week, everybody.

Producer:
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 free financial consultation, dial pound 250 on your cell phone now and use the keyword Retirement Results to connect with a qualified advisor. That's pound 250 key word Retirement Results. To learn more about our mission and our team, visit RetirementResults.com Investment Advisory Services offered through Brookstone Capital Management, LLC, BCM, a registered investment Advisor, BCM Inactive 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. Ford Stokes is a fiduciary, series 65 licensed financial advisor and president of Active Wealth Management, and he is now offering an exclusive product that can help retirees and those preparing for retirement. Nationwide's Peak Ten fixed indexed annuity can help protect and grow your savings to generate income you can never outlive. One of the attractive benefits of Peak Ten is its optional bonus Income Plus rider, which includes a 20% bonus based on your principal applied to your income benefit base.

Producer:
Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal. With Nationwide Peak Ten, you can add your spouse and generate joint income, so you're both covered for life. To help manage inflation risk, Peak Ten has five index options designed to help provide higher returns than traditional fixed investments may offer. Choose one or allocate among them to further diversify your portfolio, Ford and his team are proud to offer an annuity from nationwide. Nationwide is a strong, stable mutual company with nearly 100 years of experience helping people prepare for and live in retirement. To learn more, get it with Brookstone Capital ten, call Ford and his active wealth team. Dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within are subject to the claims paying ability of Nationwide life and annuity insurance company nationwide. Peek ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its entities are associated or affiliated with Active Wealth Management or Brookstone Capital Management, LLC. Indexed or fixed annuities are not designed for short Tum investments and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company that may include higher surrender charges, longer surrender charge periods, or lower caps.

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