Better Alternatives for Your Bonds & Bank CDs

7.26.24: Audio automatically transcribed by Sonix

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

Speaker3:
And welcome result drivers to retirement results. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis here with us, our senior financial advisor and financial co-host here on retirement results. And we are so glad to be back on the John Fredericks Radio Network and expanded John Fredericks radio network that now includes Memphis, and it's got Nashville, Atlanta, West Virginia, Pennsylvania, parts of new Jersey. Um, we're just excited to be on this great network that is owned and ran by a great American patriot who's also got an incredible team, starting with his wife. And we are also want to give a shout out to Nancy McGee, who's, um, our contact over at John Fredericks. We we love you, Nancy. You're great. Thank you guys so much for inviting us back to be on the John Fredericks Radio network. Um, we're we're just excited, especially to be able to talk about it between now and through the end of the year and specifically through the end of the election. Um, try to give you here's what you ought to do with your hard earned and hard saved retirement dollars, your investment dollars, just even the money in your bank account, your checking account, your savings account, and how to really make those dollars go further and hopefully get them to grow a little bit so you can enjoy a great retirement future as well. Today we're talking about knowledge is power in retirement. Plus, we've got a little bit on how the 2024 election could impact your retirement. And we're going to talk more about that over the coming weeks.

Speaker3:
So let me just share what we're going to talk about on this week's show. Sam Davis is going to have an incredible financial wisdom quote of the week for us that came from a another New Englander a long time ago. And we're also going to have our inflation demonstration. We're going to talk more about where interest rates could be headed by the end of the year. And then we're also going to talk about what to do with that stray 41K. What do you do with that orphan 400 K and how to recover those funds and put your dollars to work. And we've got an incredible interview with Josh Lumi with Vertical Vision Financial Marketing and Amira Life. They're one of the largest wholesalers of fixed index annuity products and life insurance and multi year guaranteed annuities in the entire country. And I think you're going to want to hear what he has to say and some of the strategies he's got with our new 6040 portfolio, where you've got 60% stocks and 40% bonds, where we're talking about a new 60 over 40 portfolio, 60% securities and exchange traded funds, and 40% fixed index annuities instead of the traditional 60% stocks and 40% bonds is the old 60 over 40 portfolio. We're going to talk about bond replacement strategy and how you really could get to work for you. And first, Sam, let's go ahead and go into our financial wisdom quote of the week, because I think it's a great one.

Speaker4:
And now for some financial wisdom. It's time for the quote of the week.

Speaker5:
This week's quote of the week comes to us from one of our nation's founding fathers, Benjamin Franklin and Benjamin Franklin once said, an investment in knowledge pays the best interest. And I love this quote forward. Benjamin Franklin is one of my favorite historical figures to read about. I actually minored in American history in college, and what Ben Franklin is saying here is one of the best returns you can get is an investment in knowledge. You know, take the time to what Ronald Reagan would say. Inspect what you expect. Learn about these things that are so important to you. And before long, I think you'll see some great interest with your financial portfolio as well.

Speaker3:
Yeah, I don't think now is the time to bury your head in the sand. I think now is the time to seek as much information as you can to better your financial standing. And it's not just meaning what is the equity in your home I'm talking about what is what is your retirement portfolio and your investment portfolio look like? How can you get more tax efficient, more fee efficient, and more market efficient with your investment portfolio? Because remember, you worked really hard for that money. You also worked even harder, probably to save it. You really deserve to maximize the growth of your portfolio and also make sure it's delivering a great retirement lifestyle for you in the future.

Speaker2:
Want to know where your hard earned money is going? It's time for an inflation demonstration.

Speaker5:
So when we're talking about interest rates, we're talking about monetary policy from inside the Federal Reserve. If you see Jerome Powell talk on the news, that's what we're talking about. The Federal Reserve And they're not expected to raise rates before the month of July ends. But there are indications that the central bank may cut rates as soon as September. And this is shifting towards easing its monetary policy and why interest rates matter, you know, especially for retirees and pre-retirees, a rate cut could reduce the amount of interest income that you're getting on your savings, which is already pretty low, and some fixed income investments as well. But Ford, as we're going to talk about with Josh Leumi later in the show, interest rates have a broad, wide, sweeping effect across all sorts of different financial instruments for retirees.

Speaker3:
You really need to make sure you've got an understanding of what interest rates do. First of all, when interest rates go up, that means there's less investment out there. There's less investment for the stock markets and the companies to expand and to seek debt and to be able to expand their operations. So therefore, you could see a downturn in actual stock values. Also, with interest rates at all time highs, really over over the last several decades, You've got an opportunity. We're going to talk about it with Josh Lumi, where the actual fixed index annuity rates are much higher, and you can get a much better rate of return than you can from those fixed index annuities you may have invested into 4 or 5, six plus years ago. If you've got an old fixed index annuity or if you've got a pension that's pending, I would strongly encourage you to reach out to us so you can get that annuity x ray or that pension x ray. Just reach out to us at retirement results.com/plan. That's retirement results. Dot com forward slash plan again. Our private wealth management firm is named Active Wealth Management. The name of our show is Retirement Results. And we've done a television show. We've done radio show. And we're so excited to be back on the John Fredericks Radio Network with each and every one of you. Um, we appreciate all of you great Americans and all you great patriots out there. And we're so excited and and thrilled about what's going on with Donald Trump's campaign. We're so excited that he's still with us and he's still alive.

Speaker3:
It was awful. It was so scary to see what was happening live. Um, that Saturday when he got shot in the ear and one of our American patriots lost his life. And then also, um, Corey Carpenter lost his life. And then also two other Americans were shot. And one of them is is now recovered. We're thank God for that. And we are here for you. We're here to help explain what's going on from a financial perspective, and also give you the differences between Kamala Harris campaign and what she wants to do with your taxes, which is take them up. And then also the Trump campaign, which he wants to even reduce the Tcja those tax cuts are going to sunset in 2025 if Donald J. Trump is not elected as the 47th president of the United States. And we've only got like three minutes left in this segment. So the question is, do you have an orphan 401 K What we noticed a lot of people are leaving some of that money behind, and they're not taking control of those assets, and they're not maximizing the return they could be getting. They're not minimizing the administrative fees that they're that are there. And also they're very limited because they can no longer contribute to that old orphan. 401 K. Here's how to recover any funds that have been left behind in an orphaned 400 K, or what we called a stray 4k at the beginning of of this show, to recover an old for 1st May begin by locating any old plan statements received via email or mail.

Speaker3:
If statements are unavailable, contact the former employer's human resources or benefits department. You can also utilize the Department of Labor's website to find the company's form 5500 for detailed 4K plan information. Again, you want to contact the Department of Labor's website to find the company's form 5500 for detailed plan information. If you can no longer get in touch with an HR department with a company you want to check databases like the National Registry of Unclaimed Retirement Benefits and the National Association of Unclaimed Property Administrators. For any unclaimed for one K funds, these steps are crucial for pre-retirees and retirees to ensure they have access to all their retirement funds, potentially impacting their financial security and planning. Listen, it's time to get your money working as hard as you do. If you're preparing for retirement or you're at least recently retired before, within five years before retirement or five years after retirement, we encourage you to reach out to us at retirement results.com/plan. That's retirement results.com/plan. Submit your information there and we'll get started on trying to help you plan for a better future and plan for a more tax efficient, more efficient and more market efficient retirement future. We come back with a break. We're going to talk to Josh Lumi with Vertical Vision Financial Marketing and Amira Life about fixed indexed annuities and the new 60 over 40 portfolio, 60% securities and 40% fixed indexed annuities instead of the traditional 60% stocks and 40% bonds. And how that could benefit your retirement future. Come right back. You're listening to retirement results on the John Fredericks Radio Network.

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

Can you hear me? They talk about us telling lies. Well, that was the price. Can you feel.

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

Speaker3:
And welcome back result drivers I'm Ford Stoker chief financial advisor. I've also got Sam Davis, our senior financial advisor and co-host with us. And as promised in segment one, we've got Josh Lim with Vertical Vision Financial Marketing. And and Josh, you guys are wholesaling billions and billions of dollars at Vertical Vision and a mere life. You guys are a subsidiary of a company called a mirror life. And you're also our wholesaler of annuities and and life insurance. And what I want to talk about today is the new 60 over 40 portfolio. So in 1952 Harry Markowitz was given credit. He was an economist. He was given credit for um, being the founder of modern portfolio theory, which basically stated in layman's terms, if you invest 60% in stocks and 40% in bonds, all in the same financial markets, you'll be able to build an efficient investment frontier where you get income and growth or specifically growth first with the securities and then income from the bonds. But then also they would say that when you know the securities are doing well, money will rush into bonds and therefore you can get some lift, but also get the income that you need from the portfolio. Well, that's a 72 year old strategy. And it's worked to some extent, is what a lot of wirehouses and brokerage houses have done and kind of live by.

Speaker3:
It's also made it more efficient labor wise for them and give them a track to kind of run on. Unfortunately, bonds have not performed well as interest rates have gone up over the last four years, and specifically in 2022 when the markets did poorly. And the bonds did poorly. It the 6040 portfolio actually had its worst year in 41 years. We're recommending a different 60 over 40 portfolio. Still do 60% stocks. You can be invested aggressively with ETFs and securities. We don't like investing in mutual funds. We like investing in exchange traded funds to keep your portfolios more fee efficient, because with mutual funds they have 12 B1 fees, they have a share fees and C share fees and things like that, and admin fees. But what we're recommending now is to take 60% in stocks and ETFs and do 40% in fixed index annuities or multi year guaranteed annuities, or even consider working in some structured notes, things like that, but specifically to make it easy on everybody. Let's just take 60% in stocks and ETFs on one side. That's the security side and the 40% side. Let's put it into fixed index annuities. And today Josh we're going to talk about three separate fixed index annuities. And also kind of what you get to save because you can delete the advisory fees and portfolio fees from that 40% portion of your portfolio, which we would consider is your income portion of the portfolio.

Speaker3:
And then we're also going to look at even if you need more liquidity, we can look at shorter term investments like multi year guaranteed annuities. We'll talk about the next segment. But Josh let's talk about just kind of that overall new 60 over 40 portfolio in general kind of what the client gets and also what they can delete in fees and how it can be positive. And also what's the financial reserve requirement on these fixed index annuity products. And then also I want to introduce the nationwide peak ten and the North American charter plus ten and 14. Again that was a very long winded preamble. And welcome to the show Josh. But again, welcome to retirement results. You're here on the John Fredericks Radio Network. You're also here on Am 920. The answer? We have over a million listeners, uh, which is pretty great stuff. And we want to educate those and, and also provide a free, you know, annuity review, a free annuity x ray, if you will, and also a free 4k review for those folks. But again welcome to retirement results. Josh, we're so glad you're with us to share some of your great knowledge. Thanks for having me for it.

Speaker6:
I'm always love hopping on these shows with you and and being a little bit of a nerd about annuities. I love that.

Speaker3:
Stuff. So, Josh, first of all, talk about what you can save by investing in the income portion of your portfolio that 40% of your portfolio into fixed indexed annuities versus just investing into bonds that would be managed by an advisor.

Speaker6:
Yeah. I mean, the first thing that comes to mind is just, you know, how efficient annuities are, you know, with regards to fees. Uh, you know, the the myth out there is that there's super high fees with annuities. And, sure, there's some that do have fees, but if you go in and you dive into the data, uh, most of them don't. Uh, and so that right off the bat, you're saving you're saving those fees. Uh, and then just, you know, the protection of principle. And in some of the things like that are, you know, there's not a fee for that, but, you know, just think about, you know, the losses that can compound if you were in, you know, bonds a couple of years ago.

Speaker3:
Those are all really good points. Josh, also, what can you get by investing in a fixed index annuity? You mentioned some annuities are very high in fees. Those are usually considered variable annuities. Those are securities. Those are mutual funds wrapped into an annuity chassis. And you've got fees upon fees with that. And those fees could average between 3 and 6%. So we want to stay away from any variable annuities. And those are usually marketed by the banks and and wirehouses and brokers. Mhm. What we want to do is try to focus in on the fixed index annuities for this conversation. So what can people get. Um just from an actual annual income when when you're investing in annuities, you're trying to get an income that's going to last you the rest of your life. What can they really get from an annuity? Is it greater than the typical 4% withdrawal rate?

Speaker6:
Um, it is, uh, for your average senior. It's it's it's actually double that right now if you're 65 years old and you went into, uh, an, uh, an income annuity or fixed indexed annuity with an income rider, you can see the 8% on your, you know, of your principal every year for the rest of your life. Uh, you know, if you're 70, it's it's it's over 9%. I think it's 9.45%, you know, one of the highest payouts for immediate. And then if you're going to defer for, you know, a couple of years or more, you could see that go up over 10%. So that's that's huge. Yeah.

Speaker3:
That's a big deal that allows you to kind of generate the income you need from that 40% of your portfolio and let the rest of the portfolio grow unencumbered by withdrawals. That's a pretty good start. Pretty great situation now. In the next segment, we're talking about beating bank CDs. But specifically let's talk about because a lot of people are trying to get some income and safe income from bank CDs these days. What is the financial reserve difference between a bank CD and a fixed index annuity?

Speaker6:
Um, yeah. It's, you know, pretty different on that spectrum there. You know, with your, with your I'll start with annuities. You know, when you make a deposit, let's say it's $100,000 or $1 million, the insurance companies have to keep that liquid and then some. So they have to have a dollar dollar for dollar. Plus uh, most of the carriers will have another 2% to 12% in addition to that. And so when you're looking at purchasing an annuity that carries that you want to do business with, uh, I prefer to lean towards the ones that are a little bit, you know, higher whether that, you know, 100 and 109, 112 and there's plenty of them that are out there. Yeah. I mean that that.

Speaker3:
Is a significant financial reserve. It's more than what you've put in. So if you give em 100 grand, they've got to have at least $100,000 placed into the ten year US Treasury as an example. And they've all got also need to have other cash on hand to make sure that they can satisfy, um, the requirements of the annuity contract. That is a remarkable situation versus, you know, bank CDs, are they average between 3 and 10% in a financial reserve requirement. And during Covid, even that 3 to 10% financial reserve requirement is kind of suspended. And so that is, um, a real concern. And I would I have more financial confidence in peace of mind by investing in a 100% plus financial reserve product, then investing into, uh, a bank. Citi say that's going to be a 3 to 10% financial reserve requirement at the most.

Speaker6:
Sure. And I mean, it's it's a bit risky, right? You know, it. You know, we saw this with the, you know, with the some of the banks collapse here, you know, a year or so ago. Mhm. Um, you know, they actually had to get the bailout right. And so that made people feel safe that the government was going to step in. But you know that only works until it doesn't. Um, you know at some point that may not that may not be an option. And so yeah.

Speaker3:
We had clients, Josh, we had clients that came to our office after seeing the people waiting in line in California, um, in the Silicon Valley bank line. Like they were so scared seeing that on a Friday I had I had literally ten clients came in to my office on Monday saying, you know, we've got to move this money out of these banks that that we have. We didn't we probably weren't forthcoming. We have more than $250,000 in one of our checking accounts, things like that. We need to do a much better job for it. And we we've been listening to you and we we've got to do a better job. So what I would say to everybody that's listening, if you have a significant, let's say, over 50 or $100,000 sitting in your checking or savings account, you really ought to get that money working for you. We'll give you some other ideas on that. Um, right after the break, we've got like less than 30, 45 seconds in in this segment because this stuff goes by fast, folks, when we talk to Josh because he's such a wealth of knowledge. So, Josh, we come back to the break. I want you to talk about the nationwide peak ten and the North American Charter ten and charter 14 plus. And I want to also dive into a new multi year guaranteed annuity offered by CL life that many clients are taking advantage of, and beating bank CD rates and having some of the kind of same liquidity at at a three year mega. Let's dive into those right when we get back from the break. Josh, thanks so much for being with us here on retirement results. And we're going to have more great information on bond replacement strategy and investing in fixed index annuities and multi year guaranteed annuities instead of bonds and bank CDs from Josh Lemieux. The vertical vision financial marketing, right when we come back from the break.

Speaker2:
Thanks for listening to retirement results. Schedule your complimentary financial consultation now at retirement Results.com or by calling toll free at (888) 814-0304.

Speaker1:
My my 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 interests of our clients and to make full disclosures of any conflicts of interest, if any, exist. Refer to our firm brochure, the ADV Two-a, page four for additional information. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products they do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by BWA.

Speaker2:
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 Ford Stokes our chief financial advisor I've got Sam Davis here with us who's our senior financial advisor and co-host on retirement results. Just really appreciate you great Americans here on the John Fredericks Radio Network. And we're hopeful that hopefully we're going to do well in this November election and hopefully Donald J. Trump can pull that off. We're talking to Josh Lumi with Vertical Vision Financial Marketing. He's the vice president of Annuity Wholesales with Vertical Vision. And they're a subsidiary of Mirror Life, which is one of the largest wholesalers of fixed index annuities, multi year guaranteed annuities and life insurance in the United States. And Josh, want to specifically dive into we've just been talking about this new 60 over 40 portfolio where the income portion of the portfolio is 100% protected and you've got 100% financial reserve that we just talked about, um, in the last segment. But specifically, I want to dive into, um, some individual products. One is the nationwide peak ten we have access to sell the nationwide peak ten through you guys. Only 1% of financial advisors in the country have access to market and offer this product to their clients, and we're pleased and privileged to be able to do that. Can you talk a little bit about the features and benefits of the nationwide peak ten fixed index annuity that's offered by nationwide, which is an A+ rated mutual insurance company that's rated by a m Best and Standard and Poor's.

Speaker6:
Yeah, absolutely. Uh, so I helped in the development of this product. Um, you know, it it was released. It's just it was maybe four years in February. And, you know, the the thought behind this, I'll give you some context, is that, you know, when you're looking at fixed indexed annuities, you're either getting one like a really good income or two good accumulation. Um, what we found is that, you know, the clients want to have their cake and, and eat it too. And in a nationwide, it came to the table with a, with an annuity that gives you the best of both worlds. And so we'll get into, you know, the growth side here in just a minute and how that works. But uh, when you're looking at income, especially in the next few years, the nationwide peak ten gives you a 20%, uh, bonus to your income account value. Day one. Um, so you put 100,000 and that that base is at 120,000, and you can start taking that income right away. Um, but if, let's say your time horizons, you know, three, four, five, ten years, you can you can wait to turn on that income and you're going to receive an additional 8% guaranteed to that account value each and every year that you wait until you start taking those distributions. And so once you take those distributions, start taking those distributions, you know, generally with some of the higher leveraged income products, you'll start to see that account value deteriorate. Um, and that's okay because you're, you're you're locking in that payout. You know, like you mentioned earlier, it could be eight, 10% of your principal each and every year. Um, that means that if you live 30 plus years in retirement, you're going to see a pretty good internal rate of return. Um, that would likely out yield. What the what the markets are doing. And so, uh.

Speaker3:
But with the nationwide PE ten, the account value doesn't really deteriorate because the exactly the percentage growth of 330 plus percent participation rate, less than 1%, um, spread rate is outpacing the withdrawal rate. And so therefore your account value grows while you're also taking income. Is that basically correct?

Speaker6:
Yeah, that's that's correct. And so, you know, when you were talking about, you know, the modern portfolio theory and why we do 4% withdrawals and everything on that on that basket. Uh, you know, it's it's it's a similar ideology there. You know, you're but we're actually we're taking the income at a much higher rate, and we're, we're seeing potential for growth and actually seeing that account value grow. So there's something to leave behind to your beneficiaries, whether that's your children or a charity, um, or whomever. And so yeah, that's yeah, that's great. And then, you know, also with that, if you are seeing those favorable performance numbers, uh, we can see that income each year potentially grow as well. And I've actually seen that happen with clients that purchase product where they start out at one income and then they realize, you know, a great interest, um, return on their annual statement. And, and they also get a boost in their income that next year.

Speaker3:
So talk more about the participation rates if you would. Josh, the.

Speaker6:
Underlying index that you're tied to, uh, the nationwide will measure that growth over a period of time. Do you like to call them your protection period? Um, and that's a great way to explain it. And so, so the, the way that nationwide measures this is that, you know, during your protection period, um, on this it's two years, let's say there's a 10% change in, in that index from that period of time. Um, well, that's a good return. But nationwide is going to multiply that return by the 330% participation rate, you know, which would be 33% minus your spread, which is 32. Um, and then you would actually get that credited to, to your account value. And, and you probably have some clients because I know we've been we've done a lot of these over the last few years that are going to see some similar results to that. Right? Yeah.

Speaker3:
Right now we've got clients that are on pace to do more than that. They they've done 6.72% in the first year. That's what the index is performed at. Well, currently they're on pace to do 21.504% in the first year. If that keeps pace just where they are right now, they'll have 43.008% credited to their account value, not just their income value, but to their account value in a single two year period. And their money's not invested in the market now, how they're able to do this is because the ten year US Treasury is yielding well over 4%. Whereas in throughout your career and my career, it's generally been between the ten year US treasuries been yielding about 1.4 to 1.8%. So it gives them triple or as the British say, treble, right. It gives them triple the amount of interest that they can use in actual money to grow into and to go buy options. And the BNP Paribas Global Factor Index also nationwide, buys options a lot more efficiently and effectively than you. Than you and I can Josh because they're buying in $100 million blocks. Mhm. And that allows our clients money to grow with market like gains without market risk, and can even grow beyond those market like gains because of this participation factor that ends up being a net of about 3.2 times.

Speaker3:
And what I encourage clients to do is specifically radio listeners to retirement results is I wouldn't wait. I wouldn't wait on trying to get involved with this product because rates can go down. As interest rates go down, annuity rates will go down as well and take advantage. While the US Treasury is three times what it traditionally is. I would encourage you to go ahead and reach out to us at 1-888-814-0304. That's (888) 814-0304 or visit retirement results.com/plan. That's retirement results.com/plan and we'll get started on running your own fixed index annuity illustration. Also give you that that uh for one k analysis. But really we're going to give you that retirement income gap analysis and that annuity x ray. So you can understand the kind of income you could get. And if you're really tight in retirement you feel like the numbers aren't going to work. A fixed index annuity investment could be a great way to go. Because if you're not making it work with only 4% withdrawal from your basket of overall retirement accounts, how much greater will it be if you can get eight, nine, ten plus percent withdrawal rate every single year? And Josh, also, can you talk about how that traditional withdrawal rate actually increases over time with both based on age but also based on the account value, increasing.

Speaker6:
The income increase over time with this product. Uh, because if you're I mean, the most basic of math is, is if you're pulling less money out of the account than what's going in, um, then whatever your payout is that, that you're locked into, um, is just naturally going to increase that, that income over time. You know, when that happens. Gotcha.

Speaker3:
And it also goes up 0.1% each year that you age with a lot of these products. To come back to the break, Josh, can you stay on for just a little bit of segment for for us because we're going to I want to talk about the multi year guaranteed annuity that could replace some bank CD money out there. Um thanks so much for for agreeing to come back. And we come right back to the break. We're talking more about fixing the next annuities and multiyear guaranteed annuities as a bond replacement strategy here on retirement results. You're listening to the John Fredericks Radio Network.

Speaker2:
Schedule your complimentary financial consultation now at retirement Results.com, or by calling toll free at (888) 814-0304.

304. Two worlds collide.

Speaker1:
When it comes to retirement planning, focus more on income than building a big nest egg. I'm Matt McClure with the Retirement Radio Network, powered by Amira Life. It may sound counterintuitive, but that big nest egg number you probably have in your head means a lot less than the income you'll have each month in retirement.

Speaker7:
The math has all changed here, but the bottom line is time is your superpower. Save as much as you can.

Speaker1:
Nbc news senior business correspondent Christine Romans recently said on The Today Show that you should not just rely on Social Security in your retirement years.

Speaker7:
Social security alone is not likely to support you in the manner to which you're accustomed, right? You want to wait as long as possible to get that maybe 70. If you wait till you're 70 to collect Social Security, you'll get the biggest check.

Speaker1:
And she says, contribute to your retirement accounts early and often.

Speaker7:
So this is from fidelity. They say at age 30 you should have one time your salary in a retirement account when you're 30. So think about what your salary is at age 30, and that's how much you should have in your entire retirement account. By 50 it should be six. This is where I start to freak out, because I know a lot of people can't and don't do this by age 67, it should be ten times.

Speaker1:
A personal pension. Using a fixed indexed annuity is also a great option for many pre-retirees and retirees to consider. It offers protection from market volatility and a guaranteed stream of income that will last the rest of your life, no matter how long you live. Having a big nest egg may sound nice, but focusing more on income will set you up for success in your golden years. So, do you know where your paychecks and paychecks will come from each month when you leave the workforce? That's a key question to consider as you plan for what's ahead with the Retirement Radio Network. Powered by Amira Life. I'm Matt McClure.

Speaker2:
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, our senior financial advisor and co-host. With us. We've got Josh Leumi. Who's vice president of Annuity Wholesale over at Vertical Vision Financial Marketing, which is a subsidiary of a company called Mirror Life, which is a very large wholesaler of annuity and life insurance products out there. We're talking about replacing bonds, replacing the 40% of the portfolio, the new 60 over 40 portfolio, 60% stocks, 40% fixed index annuities and or accommodation of of multiyear guaranteed annuities and fixed index annuities. But specifically, let's talk through fixed indexed fixed index annuities for a second. We've got one more product on the fixed index annuity side. Josh, I want you to talk about can you talk about the North American charter plus ten and the charter plus 14 quickly for us.

Speaker6:
Sure. Yeah. There's a there's a lot to talk about, but I will be as brief as Josh Lumic could ever be. Uh, so we have the North American A-plus rated carrier. They have, uh, they have two annuities that, uh, are getting a lot of traction right now for a lot of reasons. But the main reason is, is that their charter ten is a 20% premium bonus, and their charter 14 is a 26% premium bonus. And so, um, that can give your account backing into the.

Speaker3:
Account value, correct? Yeah, that's.

Speaker6:
A true account value bonus. And so you're getting that lift at 26% on on that account value, which could help raise the amount that you could withdraw out of that account at jumpstarts the growth. But you know, something that's happening right now in the industry is there's a lot of clients that bought annuities pre 2020, and those rates are, you know, a bit lower than they are now. And so I talked to clients every day that you know they may maybe they purchased an annuity in 2018. It has a 6% surrender. And they have a cap on it where they can only earn 2% of what the S&P does. Well, now that those caps are are three and four x, you know what they were. And so minus that 6% loss that you have on that old annuity, you're going to increase your account by by 20% and increase the earning potential with that because you were your participation rates are sky high, your caps are sky high. And and we can lock that in before rates start to go back down again.

Speaker3:
It's also a really great time to get your annuity reviewed. Listen, Brazil drivers, if you're listening to the sound of My voice right now, whether it's on our podcast or what's available at retirement Results.com or you're listening to us, um, on the John Fredericks Radio Network or on Am 920, the answer in Atlanta. I would encourage you to go ahead and reach out to us to get your annuity reviewed. All you've got to do is reach out to us at retirement results.com/plan. Or you can call us at 1-888-814-0304. That's (888) 814-0304. And we'll do that annuity x ray for you. Absolutely at no cost to you. That's a great point Josh I appreciate that. Um, it's good that people really understand that just even a few years, like 4 to 6 years has gone by that now annuities are paying out three times what they have been, because the ten year US Treasury is yielding three times the amount of interest that is traditionally has. So can you also dive in really quickly on like the North American product, and also why they're offering the 20 and 26% bonuses that go straight into the account value, and also other features and just past performance over the last ten years of that product as well. Yeah.

Speaker6:
So you you have that upside for, you know, your bonus. But you know, we talked about having your cake and eating it too. Uh, you know, they have introduced some new, more modern crediting strategies, um, that have, you know, just great, great potential performance. And we don't have time to get into the mechanics of them and why they can perform better than some of the the crediting strategies from five years ago. Um, but when you look at just the annual point to point strategy, using what they have a Barclays strategy with a 12% volatility trigger, uh, it would have averaged over 11% the last decade. Yeah, that's and that's huge. Along with the 26% premium bonus. Um, so it the North American is is one of many that has products like this, you know, so you're not just locked in to to one carrier, but North American does have the top premium bonus in the industry right now. And they do. They are one of the highest rated carriers in the industry as well. So we talked about, you know, solvency ratio and having those cash reserves, a company like that's going to be more conservative with that. And you know, that's one of the reasons why we're talking about that today.

Speaker3:
To be an A+ rated carrier, you've got to be conservative. You got to have those financial reserves in place. Is that correct, Josh? That's correct. Gotcha. And then, Sam, I think you've got some questions on for our beating Bank CD segment for Josh as well.

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

Speaker5:
Yeah. Josh, real quick before you get out of here, for maybe some listeners out there who aren't looking for the income necessarily, or they're just looking for some more stable protection for that safe portion of their portfolio. Could you talk about the myga option that Cliff has out there right now?

Speaker2:
Yeah.

Speaker6:
Cliff has, uh, they have a few annuities available, but one that's really interesting right now is their three year, multi year guaranteed annuity that offers you 5.85%. It also offers liquidity, where you can access some of that money during that time frame. Uh, you know that you're locking that rate in. And so that's a great alternative to your CD. Uh, you know, you're seeing advertisements for CDs in that 5%, 5.5% range right now, but are you going to be able to get that for all three years? Um, so if you don't have a massive liquidity need over the next three years, it would make sense to maybe leverage the higher interest rate from from Cliff, because chances are they're going to we're going to see a rate drop here in September. And if we don't see it, then, you know, next year we will. And and hopefully we'll see those go down more. Um, and you know with that, if I'm a client, I'm looking to want to be locked in to something that would give me that would give me that higher interest rate for a longer period of time, or it's three years, five years or ten years.

Speaker3:
And Josh, lend me with vertical vision, financial marketing and a merry life. Thanks so much for being with us here on retirement results on the John Fredericks Radio Network. We really appreciate it. You've been you're nationwide now. Uh, you're doing a great job and we'll have you back on regularly to talk more about bond replacement strategy and different products that are out there, and also the different features and benefits of investing in a fixed index annuity or a multi year guaranteed annuity, rather than investing in bank CDs or investing in bonds where you're paying advisory fees and portfolio fees and also taking significant market risk. We're trying to take risk and fees off the table with this new 60 over 40 portfolio strategy. Again, Josh Lemmy, thanks for being with us here on retirement Revolts.

Speaker6:
Thanks for having me. It's always a pleasure. It's the final.

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

Speaker3:
Countdown. So in today's show, we gave you an inflation demonstration where interest rates could be headed by the end of the year. We also talked about what to do with that stray for one K. If you have that orphan for one K and how to recover those funds and put your dollars to work and get control of your hard earned and hard saved assets and how important that really is. And also, Sam gave us a great financial wisdom quote of the week from Benjamin Franklin himself, where he said an investment in knowledge pays the best interest. I thought that was just a brilliant financial wisdom. Quote of the week to share. Uh, great job there, Sam, for bringing that to the table. And we had just a very in-depth conversation with Josh Lindsey with Vertical Vision Financial Marketing. It's a subsidiary of a mirror life, which is one of the largest wholesalers of fixed indexed annuities, multiyear guaranteed annuities and life insurance in the United States, And I just want to say thank you to Josh for being on the show. Thanks for talking about the nationwide peak ten, where you can get, uh, up to 20% immediate bonus and 8% guaranteed interest each year that you withdraw your money, and also at 330% participation rate, which could end up in a net of 3.2% total. After this spread rate of times how the BNP Paribas Global H factor index does.

Speaker3:
So again, the example was if your index goes up 10% over the two year protection period, that's a 32% growth because you take 10% times 3.2, that's 32% growth on your account value for that two those two years. And also Josh talked about the North American charter plus ten and Charter plus 14 that are offering 20 and 26% account value bonuses, which is really remarkable. And then also that it's done over 11% over the last ten years on that Barclays 12 volatility Control index, that that thought that was pretty remarkable as well. And we talked about a multi year guaranteed annuity offered by Co life that's paying out a 5.85% over the next three years which would be a great bank CD. Um, alternative. The next week we'll talk more about how to build a smart financial plan using smart, safe, smart risk and smart tax investment strategies. We're so glad you've been with us. Remember, if you're seeking information about retirement planning and investing, if you're going to be a bear, be a grizzly. Let's get aggressive about it and let's get going on taking action. Because if you don't take action, you actually haven't made a decision. Have a great week everybody, and we'll be back next week with more retirement results.

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 and Active Wealth Management are independent of each other. Insurance products and services are not offered through BCA, 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, exists. Please refer to our firm brochure, the ADV Two-a, page four for additional information.

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.

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