3.17.23: Audio automatically transcribed by Sonix

3.17.23: 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 the Active Wealth Show. With your host, Ford Stokes. Ford is a fiduciary and licensed financial advisor who places your needs first. He'll help you protect and grow your wealth. The Active Wealth Show has grown because activators like you want to activate their retirement planning with sound tax-efficient investing. And now your host, Ford Stokes.

Ford Stokes:
And welcome to the Active Wealth Show Activators. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis with us as our executive producer and also the guy that's in charge of some of our smart, safe money out there. Sam, we've got a big show today. We're going to talk about how to be prepared and not scared and how to protect your family and your retirement from financial volatility. I know a lot of people have been kind of seeing what's going out there with the failure of Silicon Valley Bank in the last week. But first, Sam, go ahead and welcome the folks to the weekend.

Producer:
Welcome to the weekend activators. It is springtime in Georgia. Before you know it, the Masters will be here. You'll be able to get out, play golf, play tennis, whatever you enjoy doing outside. But for now, we've got a big basketball tournament starting. So whatever team you support, I hope they do well in the tournament and enjoy the games.

Ford Stokes:
Absolutely. We're we're always pulling for for your team Sam Kansas Jayhawks the a bunch of good folks out there. So let's just talk about what we're going to talk about on the show. Number one is we're going to we're going to give you our quote of the week. We're also going to talk about failure at the banks. We have had the number two and number three bank failures in the history of us banking in the last week. So that shouldn't be missed. We should actually talk through that. We've also got our Beating the Bank CD segment, which is very apropos and important this week. Also, we're going to talk about maximizing your Social Security and also why your nest egg might be smaller than you think and what's happening to your bond. And so those are the big things that we're going to cover this week. It's this is an important show. And if you've got a chance, I would encourage you to listen to this entire show if you can. And if you can't, Sam, tell them how they can get in touch with us and how they can listen to the entire show if they miss part of the show this week.

Producer:
Well, you can always head over to ActiveWealthShow.com to check out past episodes. You can even watch videos of our episodes right there on ActiveWealthShow.com and schedule an appointment and see all of our contact information there. And we have a podcast feed. So wherever you listen to podcasts, be it Apple, Google, Spotify or even your smart home device through Amazon or Google, you can find us just ask for the Active Wealth Show.

Ford Stokes:
Yeah, absolutely. And we're also going to try to help you here too. We've gone over our retirement cost cutters and I believe we've got another one this week with our retirement cost cutters. But I would encourage you to get in touch with us so you can receive your copy of our 23 retirement cost cutters for 2023 to get all the details about hanging on to more of your hard earned and hard saved money, the free report is yours today. When you get in touch with us by sending me an email at Ford at Active Wlwt.com that's Ford at ActiveWealth.com. Or you can just visit us at ActiveWealth.com and click that schedule a consultation button in the upper right corner. You'll get booked directly into my calendar and I'll give you that free report when we meet. And again, you're going to meet with me. None of the other downline advisors, we do have other advisors with our firm, but we are happy to work with you and we look forward to working with you very soon and helping you protect and grow your hard earned and hard saved assets like we talked about.

Producer:
And now wholesome financial wisdom. It's time for the Quote of the Week.

Producer:
This week's quote of the week comes from Will Rogers. Will Rogers, a social commentator lived from 1879 to 1935. He was also in 71 films and wrote more than 4000 nationally syndicated newspaper columns. And Will Rogers once said people should be more concerned with the return of their principal than the return on their principal.

Ford Stokes:
Absolutely. I think that's profound. And and we wanted to share that that financial wisdom quote this week, because in light of what's happened with Silicon Valley Bank failing, you know, over the past week, and here's how you can protect your family and your hard earned money and your retirement from a potential banking crisis. Silicon Valley Bank was a commercial bank headquartered in Santa Clara, California. Svp was the 16th largest bank in the United States at the time of its failure on March 10th and was the largest bank by deposits in Silicon Valley. The bank operated from offices in 13 countries and regions. Silicon Valley Bank's failure quickly became the second largest bank failure in United States history. Also on March 10th, Signature Bank, a New York based full service commercial bank, also experienced failure as customers spooked by the sudden collapse of Silicon Valley Bank withdrew more than $10 billion in deposits that run on deposits quickly led to the third largest bank failure in US history, all on the same day. Regulators announced on March 12th that signature bank was being taken over to protect its depositors and the stability of the US financial system. In a matter of days, we saw two of the three largest bank failures in US history. The largest bank failure in US history was when Washington Mutual collapsed in 2008. In fact, if you look at the 20 largest bank failures in US history, ten of them happened to be between 2008 and 2010.

Ford Stokes:
We want our listeners and clients to understand current events that are happening in the economy and the financial system. We also would ask you not to be fooled by people who may be using these bank failures to help sell gold, silver, cryptocurrency or other assets that offer little to no consumer protections and carry high risk. Be very careful out there. It's also very important that you work with a bank that is FDIC insured. The Federal Deposit Insurance Corporation insures deposits up to $250,000 per depositor per insured bank. Do me a favor. Do not put more than $250,000 in with a single bank. That's like. Well, I'll put it in different accounts. No, please do me a favor. Do not put more than $250,000 in any single bank. Even if you listen, I've banked with with Truist Bank literally since I was 14 years old. When I got my first job working downtown, doing demo work. And I would just share this. I love Truist Bank. They usually do a great job taking care of me. I just think we I need to make sure that I don't put more than $250,000 in that bank. I can't let my loyalty to the bank or the or the people that I like at my bank branch to determine where I'm putting my money. And I'll give you another example. And Sam, you can back this up because you and I both talked about this this week. Janice and I cannot pronounce his last name, but he, you know, he plays for the Milwaukee Bucks and he's from Greece and he has a lot of money and he has over $250,000 in 50 different US banks because he's from Greece and doesn't trust banks and doesn't trust bank, that they're not going to fail.

Ford Stokes:
And I thought that was interesting that he brought that experience from Greece with him to the United States. But also, if you're investing in a bank CD these days, I would encourage you to consider and really strongly consider investing in a multi year guaranteed annuity instead, that carries the same type of surrender period. You've got two year, three year and four and four and five year multi year guaranteed annuities that pay a higher rate of return but also have a better tax treatment because you do not have to to pay taxes on the interest generated each year, as you do with bank CDs. You get 1090 nines from banks when you've got a bank CD, even when you haven't withdrawn the interest and you've got to then pay for that interest, the taxes on that interest out of your current income or from another source, but still leave the money in the bank. Whereas the multi year guaranteed annuities, you don't have to withdraw the money until after mean. You don't have to pay taxes on the money until after you've withdrawn the money. And Sam, your thoughts on Giannis and and also just this whole SVP situation.

Producer:
Yeah well obviously if you see two of the three largest bank failures in our country's history happen on the same weekend, that is certainly a big concern for it. I know it was a concern to a number of clients that called in through active wealth. And you know, one thing that I think is great about active wealth is that you and the team were always willing to help address clients specific concerns whenever they call you. And I start every week, you know, every Monday morning, hey, what's going on in the markets? What's going on in the news that's affecting our clients, what may concern them, what's going on in politics, what government changes could affect people's retirement as we move forward. And I think that's a fantastic example. Giannis Antetokounmpo very difficult name to.

Ford Stokes:
Pronounce you're saying that I appreciate it Thank you for pronouncing it because I couldn't do.

Producer:
It. You know he grew up in Greece and experienced an extreme financial failure over there. So it makes sense and I and I understand and sympathize that, you know, when he finally came into money and experienced the American dream over here, that he felt like he really needed to spread it all out so that his deposits were all insured. And we're going to talk more about this bank volatility when we come back from the break, because we want people to be prepared, not scared. You know, there's a lot of things to be concerned about out there, but you don't have to be afraid. You just have to implement safe sound strategies that will set you and your family up for a safe and sound retirement.

Ford Stokes:
Come right back to understand what the Fed and the FDIC did to better protect against failure in the US financial system.

Charlie Kirk:
Charlie Kirk here. If you're concerned about your investments, rising taxes from the Biden administration, then I encourage you to listen to the Active Wealth Show hosted by my good friend Ford Stokes right here on AM 920. The Answer.. Listen to the Active Wealth Show Saturdays at noon and Sundays at 11 a.m. The Active Wealth Show right here on AM 920. The Answer. Investment Advisory.

Producer:
Services offered through Brookstone Capital Management, LLC, BCM, a registered investment advisor, not an actual client of active wealth management.

Producer:
We have Ford Stokes, author of two important personal finance books, Annuity 360 and taxes are on sale here on AM 920. The Answer., as the host of the Active Wealth Show Saturdays at 12 noon and Sundays at 11 a.m..

Producer:
Thanks so much for listening to the Active Wealth Show. Make sure to rate us everywhere you listen to podcasts, including Spotify.

Ford Stokes:
And welcome back. Activators, The Active Wealth Show. I'm Ford Stokes, your chief financial advisor, and I've got Sam Davis with us here as our executive producer. And we're talking about what happened with the Silicon Valley Bank failure. But the main title for this show is Be Prepared, Not Scared. So we want to give you a couple pieces of information so you can feel okay about your hard earned assets that are sitting in the US financial markets, more than likely. And so the Federal Reserve announced on Monday that it will take additional steps and they will make additional funding available to support the banking system. The funding will be made available through a new program called the Bank Term Funding Program. It will extend funds at par value for government bonds that are held by the bank. This will generally eliminate the need for banks to sell bonds at a loss to meet short term redemption requests. And that will shore up and help a lot where the run on banks can't be successful. You still have a run on banks and deposits will be repaid to people. But it's interesting that they made this move. I'm glad they made this move and it makes it much more difficult. I'll give you an idea. You know, it's unbelievable. I think it was like $72 Billion in market capitalization of stock holders that held stock like common stock and preferred stock even with Silicon Valley Bank.

Ford Stokes:
And that money's gone. Never to come back. Now the depositors are going to get their money back. The 220 billion of deposit money, those folks can get their money back. But I mean, imagine if you were a retiree in Santa Clara and you were 80 years old and you were standing in line like so many people were at a Silicon Valley branch in Santa Clara, California, and you're sitting there hoping that you can withdraw some of your life savings. How scary would that be? And what I would encourage you to do is to diversify your risk. Invest in a 100% financial reserve product like a fixed indexed annuity versus a 10% financial reserve product like the FDIC. It's also interesting, all the supporters of the FDIC. They they they they tend to say, well, nobody's ever lost any money out of an FDIC deposited account. Well, that's great and all, But how scary has it been for Silicon Valley bank depositors this past week? And if it weren't for the US government stepping in to do a bailout and that's what it is, the people that had over $250,000 in that bank would have lost those additional dollars. So here's some of the concerns that we've fielded over the last week and some of the things we've seen about the recent bank volatility. Number one is US banks have $620 Billion in unrealized losses because of mainly of the bond exposure they have with government bonds.

Ford Stokes:
As interest rates have gone up, you have interest rate risk with bonds. So you've got to be very careful. The chairman of the FDIC warned that these unrealized losses weaken a bank's ability to meet unexpected liquidity needs and cautioned that mapping out a strategy to fund themselves profitably would prove a complex and challenging task. Here's another point. Roku, a publicly traded tech company, held $487 Billion at Silicon Valley Bank, an amount equivalent to 26% of its cash reserves. How do you think the tech sector will be affected with SVB being taken over by the FDIC? Other companies such as Roblox, Blockfi and Rocket Lab also reported holding excess cash reserves at SVB. Again. Please do not keep more than $250,000 in deposits at a single bank. Do not work with a bank that doesn't carry deposit insurance. I'm sure most of you who are listening to me are banking customers. Let me ask you, how do you feel about fractional lending right now? How do you feel about having your money deposited into an account and all the bank CDs and, oh, you know, I'm going to play it safe and I'm just going to leave my money in the bank right now because the market's not doing all that great. How do you feel about fractional lending right now? How do you feel about a 10% deposit, 10% reserves on your deposits versus a 100% financial reserve that's also regulated by state insurance commissions? You know, I would prefer to have a fixed indexed annuity or a multi year guaranteed annuity or a fixed annuity where they have to reserve 100% of the money I give them into a safe financial product like the ten year US Treasury versus only 10%.

Ford Stokes:
I feel more comfortable getting my money back also. A little history lesson here for everybody. In 1929, from 1929 to 1940, basically. 60% of US banks failed and only 40% of those banks came back. Whereas in the same time period, the 100% financial reserve insurance and annuity companies did not fail. It's what happens when you have 100% financial reserves. So if you're somebody that's like been listening to all the negative talk about, well, annuities or they've got high end fees or they've or they don't really don't grow all that much or yeah, they give you income, but they've got fees and may take it to zero after 20 years. Do you know that the current fixed indexed annuities are not your grandfather's annuities? They've had to compete. The annuity companies have had to compete mightily for the baby boomer dollars, and those products have gotten better and better and better. And now with the US Treasury rates going up, there's more money available at the end of each year from the interest generated from the ten year US Treasury bonds that your money is invested in because your money is not invested into the US stock market or any of the financial markets is invested into the ten year US Treasury.

Ford Stokes:
And they take that interest that's generated from the US, the ten year US Treasury at the end of each year and let's say it's 3.6%. That's $3,600 on $100,000 invested into a fixed indexed annuity. Then what they do is they turn around and invest that $3,600 into an into options on an index, whether that's the S&P 500, the NASDAQ 100, the Wilshire 5000, the Russell 2000, or whether that's things like the Credit Suisse, Ravenpack or the Barclays Atlas five or the BNP Paribas Global H Factor Index. There's all kinds of indexes out there and a lot of them are paying really high participation rates. We have a product that's paying a 345% participation rate in how the Global H factor index does. That's that's that's managed by BNP Paribas. So if that index goes up 10%, guess what? You get 34.5% and they charge a 1% spread. So they'll take 1% off that 34.5% and you get 33%, 33.5% in a single year. So that's what could happen. I just would encourage you to really consider one of these new fixed indexed annuity products instead of putting some of your money in bank CDs. Or consider a multi year guaranteed annuity if you want those to be a little bit more liquid.

Ford Stokes:
But, you know, with most ten year and 14 year fixed indexed annuities, you can take out 10% penalty free withdrawal each year. So I would encourage you to do that. And also we get up in the morning to help people make better decisions with their money. I would encourage you to be skeptical about what you see in the media. Trust but verify everything you're dealing with. And just because you stopped working doesn't mean you have to stop inspecting what you expect about your own hard earned money. Also, stop listening to Wall Streeters who criticize annuities so they can keep managing your assets with high fees. Get educated. Make your own decisions. Work with someone who is required to put your needs first as a Series 65 License Advisor. I'm held a fiduciary standard and I'm required to put your needs ahead of my own. The best way to enjoy retirement is to have income streams you can count on and never outlive. We want to help you get those paychecks and those paychecks, not have you wringing your hands over whether or not you can get your money out of the bank. Come right back. We're going to have our beating bank CD segment and we're going to talk about some new news stories out there that you're really going to want to hear. What's the matter with the clothes I'm wearing?

Producer:
Do you want to be a jet setter in retirement? Keep an eye on how much you're spending. I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife. Pretty much everyone loves saving money, but that doesn't mean you can't pack your bags and see the world. This year. There are some simple steps you can take to reduce costs while still checking off your travel wish list. One thing to consider traveling during the off season peak season will always be more crowded and more expensive. So take that trip to the beach in the early fall when the weather is still warm but the kids are back in school. While the timing of your trip is important, so is when you book Mark with the popular travel focused YouTube channel. Walters World says you should book as far in advance as possible.

Walters World:
I know, for example, in Germany, if you pre-book your tickets on the train, it's a significant discount than if you buy at the same day. So make sure you use that advantage of doing things beforehand, whether it's a hotel room or it's tickets to a show or it's tickets to transportation, it can make a big difference. So use those discounts you can get by booking early.

Producer:
Also look for deals on flights and hotels through discount sites. Consider booking a rental home or apartment instead of a hotel, and think about taking public transit instead of a cab or ride share. So have you considered all the ways to cut your travel costs this year? It's a key question to consider, and it's one of the 23 retirement cost cutters for 2023 with the Retirement.Radio Network powered by Emeril Life. I'm Matt McClure.

Producer:
To get your free copy of 23 retirement cost cutters for 2023 give for a call today at (770) 685-1777 or go online to ActiveWealth.com.

Charlie Kirk:
Are you concerned about the Biden administration how rising taxes could negatively impact your retirement then I encourage you to talk to Ford Stokes and his team at Active Wealth Management. Ford and his team of experienced financial advisors will help you understand the fees and risks involved with your current portfolio. Simply visit ActiveWealth.com to book your free financial consultation and tell them Charlie Kirk sent you.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC BCM a registered investment advisor, not an actual client of active wealth management.

Producer:
Are you concerned about US tax rates being raised by the Biden administration and how that will affect your retirement? Tune in to the Active Wealth Show with Ford Stokes, your chief financial advisor, to learn how you can reduce the taxes you pay before and during retirement. The Active Wealth Show Saturdays at noon and Sundays at 11 a.m.. Thanks for listening to the Active Wealth Show. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes.

Ford Stokes:
And welcome back. Activators I'm Ford Stokes, your chief financial advisor, got Sam Davis, our executive producer, with me. And Sam, let's go ahead and play him our beating the bank CDs sounder.

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

Producer:
Cd rates Ford on this week's Beating the Bank CDs. It's very topical given all the news happening around the US financial system and the banks this week. So with inflation continuing to rise and these recent bank failures that we've been discussing on this week's show, we would ask you, listening, do you really want to count on the banks for your safe money? Everybody has that portion of their portfolio that they want to keep protected, principle protected. I mean, think back to our quote of the week. You should be more concerned with the return of your principal than the return on your principal. So that being said, why would you take risks with the income portions of your portfolio? These sections of your investments are the ones that you're going to rely on to pay you income during retirement. Notice that there are no negative headlines right now surrounding life insurance and annuities, and that's because insurance companies have a 100% financial reserve requirement. And keep in mind, we talk about this from time to time on the show. The rule of 100, subtract your age from 100. That will give you a number, and that is the approximate percentage of your assets that should be at risk in the market. Another way to say it is take your age and that is the percent of your portfolio that you should have safe and protected from loss. So when you're younger, you have more time to make up any big losses. So say if you're 30, you could have 70% of your assets at risk in the market. But if you're 65 years old, you're going to want 65% protected because you're about to be entering retirement. You're in that retirement red zone, so to speak. And Ford, we've got one more quote for this week. Those who cannot remember the past are condemned to repeat it. We've definitely heard that before. If you don't remember the past, you're doomed to repeat it. And I know about 12, 13 years ago, we had some similar bank failures and and we don't want to enter that sort of a period again.

Ford Stokes:
No question about it. And we we just need to protect what we've worked so hard for, what we've worked so hard to, to earn and also to save. And it's usually harder to save the money than it was to earn it, right? I mean, for March zero eight to March zero nine, the S&P 500 lost 50.1% of its value. It took more than six years to recover from its previous value. Meanwhile, inflation eroded away the buying power of so many hard working people. I mean, imagine if you were a if you retired in January of 2008, how you felt in March of 2009, many who were nearing or already in retirement suffered during this time from the time it went for over, literally, it's been it was like a 13 year period from from the.com bubble bursting all the way through zero eight, all the way back to the recovery after zero eight. Six years later, it was like 43% of a person's 30 year retirement. Where they earn no money. Where they earn no growth on their money. And that deeply and significantly affected those people's retirements. And it's also a good it's a good education and sequence of return risk. If you start losing early, it takes so much to come back. If you lose 50% in the market, you need 100% growth to get back to even. And 100% growth is difficult.

Ford Stokes:
So here's the bottom line. Instead of placing your money in bank CDs, we suggest you consider savings vehicles with a 100% cash reserve requirement, such as multi year guaranteed annuities, fixed indexed annuities and indexed universal life insurance. We will help educate you on all of your options that could help you reach your goals. You're going to get a chance to meet with just me, your host, your chief financial advisor, Ford Stokes, the host of the Active Wealth Show. You're going to get a chance to meet just directly with me. We'll help you determine the appropriate amount of risk to take with your savings. We will ultimately let you make the final decision because it is your money. I told Sam, let's go ahead and play my Chapter two on why annuity and life insurance companies are competing for baby boomer dollars. Chapter two Why Annuity and Life Insurance Companies are Competing for Baby Boomer dollars. Big idea annuities counter one of a retiree's biggest fears outliving their wealth. Annuities create lifetime income streams. There are 73.4 million baby boomers in the United States that are close to or are already in their retirement years. Baby boomers put between 9 and 10% of their pay towards their retirement. Only 55% of boomers have any money saved for their retirement. More than 4 in 10 boomers inaccurately believe that Medicare will cover long term health care costs.

Ford Stokes:
Baby boomers hold $2.6 trillion in buying power. They have had more time to build their wealth in comparison to other generations because some might still be in the workforce and making more money. Baby boomers control 50% of the nation's wealth, outspend younger generations and are more likely to spend their retirement savings on themselves rather than passing them down. Total US retirement assets are about $28 trillion. More than half of those assets were either defined contribution plans or individual retirement accounts. Some other facts about baby boomers and their spending habits. 69% of baby boomers either expect to or are already working past age 65 or don't plan to retire. Only 26% of baby boomers have a backup plan for retirement if they are forced into retirement sooner than expected. Baby boomers make up 46.8% of pet spending. Baby boomers are expected to spend 3.4% more on health related purchases than their parents did. Why are annuity companies targeting baby boomers? Boomers face many issues when planning for retirement. The three primary reasons are, number one, growing the money they have already saved. Number two, dealing with and preparing for unforeseen expenses. The largest of which are tied to health care and long term care. Number three, optimizing their financial plans when their exact lifespan is unknown. Annuities exist to help boomers with the last issue with an annuity, a retiree gives an insurance company a lump sum of money in exchange for an annual income that will last throughout their lifespan.

Ford Stokes:
Annuities have the potential to become useful tools in baby Boomers portfolios when planning their retirement. They offer protection from market volatility while also eliminating the risk of outliving one's retirement savings, which are not guaranteed by portfolios that lean heavily on stocks and bonds. The demand for retirement income amongst baby boomers already exists, and annuities are the only products that can provide a hedge for a long life like longevity insurance. Reasons Baby boomers should be interested in annuities. They are falling short of their retirement goals. Roughly 10,000 baby boomers retire every day, but a very small percentage of them believe they can retire and live comfortably throughout their golden years. Only 25% of baby boomers think they have enough money to retire comfortably. Many couples may be on the right track, but unforeseen circumstances such as health problems or staffing cuts, might force them into retirement earlier than planned, leaving a much larger income gap. Baby boomers are looking for a reliable source of retirement income, and annuity companies are beginning to tap into this market because they recognize the need. Not all annuities are created equal. There are two main types of annuities immediate and deferred. The right kind of annuity depends on your financial goals, your situations and your needs. One thing that makes annuities so attractive is that there are so many options available.

Ford Stokes:
While it may seem overwhelming. A financial advisor can help you sort through all of your available options and make a smart choice for your money. Security for their income. Annuities can help build a secure retirement through different income strategies while also alleviating any stress or fear they may have left over from the financial crisis of 2008 and the bear market. Annuities can play an important role in a plan along with your Social Security, health care and other factors. Annuities can address issues such as maximizing your Social Security benefits, which help create an income that you can never outlive. How annuity and life insurance companies have responded to baby boomer needs. Interest in hybrid products. Baby boomers don't want to pay a fortune for something that offers them only a part of what they need with less income to be counted in their retirement years. Already paying for individual products to meet each of their needs can be too expensive. Life insurance companies heard these concerns and responded with new hybrid products. Many life insurance companies now offer some kind of long term care rider on their whole life or universal life products. Generally speaking, these riders provide coverage for long term care should you need it or you receive a death benefit if you don't. These combination products have grown from 6,000,000 in 2000 and 8 to 2.6 billion with a B in 2013 and they are still growing.

Ford Stokes:
Need for guaranteed income. Baby boomers are also concerned with outliving their money. They want to enjoy their retirement, but they also don't want to run out of funds. The industry responded to these fears by offering a variety of products with guaranteed lifetime income. These products include variable and indexed annuities with guaranteed living benefit riders and immediate or deferred annuities. The annuity industry has been transformed by these new products. According to PricewaterhouseCoopers Employee Financial Wellness Survey, since the economic downturn of 2008, 76% of retirees say that creating a guaranteed income is their top retirement planning priority. Annuity companies rose to the occasion to create products to meet the needs of baby boomers and provide them with a sense of security. The need for advisers Annuity companies have created many products to meet the needs of their consumers. This is a good thing, but it can make for a tough decision on the part of the investor with so many options to sort through. Some pre-retirees and retirees can't sort through all the information. Many are afraid to make the wrong decision, which leads them to make no decision at all. A large part of the planning process involves an advisor educating their clients on all of their options so they can make the right decision..

Charlie Kirk:
It's more important than ever for conservatives to stick together. That's why I recommend you to reach out to a fellow conservative Ford Stokes of Active Wealth Management. Active Wealth is offering listeners a free financial consultation worth over $1,500. This free report will show you the fees you're paying, the risks you're taking with your current portfolio and can help you maximize Social Security benefits. Visit ActiveWealth.com today.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC BCM A registered investment advisor, not an actual client of active wealth management. Thanks for listening to the Active Wealth Show. If you like what you're hearing, make sure to rate our show on Spotify or wherever you listen to podcasts.

Ford Stokes:
And welcome back Activators The Active Wealth Show. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis, our executive producer here. And Sam, you've got an interesting one that's near and dear to my heart on This Week in History.

Producer:
It's this week in history.

Producer:
On This Week in History, specifically, March 18th, 1959, President Dwight D. Eisenhower, one of my favorite presidents. He has ties back to the Sunflower State in Kansas. Eisenhower signed the Hawaii statehood bill, which dissolved the territory of Hawaii and established Hawaii as the 50th State of the Union and Ford. I know that Hawaii is one of your favorite places to visit on vacation, and I can't wait to visit someday myself.

Ford Stokes:
Yeah, we'll have to get you out there. I love Maui and Kapalua. I also love the island of Lanai, although it's incredibly expensive to stay there these days. But I just got to tell you, Hawaii is a great place. And Kapalua is one of my favorite places in the world. And I tend to play better golf there, too, because they're wide open fairways, but a lot of wind and rain you got to deal with and misting and everything. But it is fantastic and aloha to all of our good friends from the Aloha State. So now let's talk through how to maximize your Social Security. We get questions about this like on a weekly basis. People reach out to me by sending me an email at Ford at ActiveWealth.com or they call me in our office at (770) 685-1777. Also if you want to book a financial consultation, Diane and her team are standing by. All you've got to do is pick up the phone and call us at (770) 685-1777. But I want to give you some quick three steps here to receive your own maximum benefit. And by the way, the max benefit this year is $4,555 per month. Right now, step one, work a minimum of 35 years because you want to maximize those top 35 earning years. And that way you can hopefully be eligible to make up to $4,555 a month.

Ford Stokes:
But you'll need to have worked for 35 years so that you won't have any zeros in your benefits calculation for the missing years. Number two, step two you would take to maximize your Social Security is to earn an income equivalent to or greater than the wage cap did You know there's a wage cap when it comes to Social Security taxes? Workers pay taxes on their earnings for Social Security purposes only up to a certain point. And that level varies from year to year. In 2023, the wage cap is $160,200. So income beyond that threshold isn't taxed. But to claim the maximum monthly Social Security benefit, your earnings must reach or exceed the wage cap for 35 years. And then step three delay your Social Security claim until age 70. You're entitled to complete your monthly benefit based on your earnings history once you reach full retirement age or FRA, which is either 66 or 67 or somewhere in between, depending on when you're born. Congratulations. If you're born after 1960, guess what? Your full retirement age is 67. Each year you delay filing past full retirement age. Your benefits grow 8%. To snag the maximum monthly Social Security benefit, you must hold off on filing until age 70, collecting 4555 from Social Security every month during retirement might seem nice, but for most seniors, it's unrealistic because many don't have enough income to qualify for the maximum benefit.

Ford Stokes:
If the monthly Social Security benefit you're eligible for isn't anywhere close to $4,555 a month, but rather more in line with the current monthly average of $1,327 a month. It doesn't mean you're doomed to a cash strapped retirement. Don't forget, we can help you establish your own personal pension that you can never outlive. If you need help improving or starting your own income plan, give us a call at (770) 685-1777 or visit ActiveWealth.com and click that schedule a consultation button in the upper right corner and you can get put directly into my calendar and we promise the beginning of the show that we were going to talk about why your retirement nest egg might be 15 to 37% smaller than you think, and we wanted to try to help you through that. Too often we meet with people and learn that almost all of their retirement savings is in tax deferred accounts. They they're in 401. S 403 B's, 457 plans and IRAs. These accounts allow you to grow your money tax deferred, and you can defer paying taxes on contributions until they are withdrawn because the government would rather tax you on the big harvest versus the bag of seed. Don't forget to account for the taxes you haven't paid Uncle Sam and the US government for.

Ford Stokes:
Also, your Social Security is going to be taxed as well. The IRS is not a good partner for you or with you in retirement. You want to delete the IRS from your retirement accounts as much as you possibly can. So what can you do? We encourage all of our listeners to schedule an appointment with us so we can provide you with a Roth ladder conversion plan at no cost to you. So when you meet with us, you're going to get a retirement income gap analysis. That's number one. Number two is you're going to get a Social Security maximization report. That's that's number two. Number three is you're going to get a financial plan to your 95th birthday with your current plan. That has nothing to do with us. Number four is we're going to give you a financial plan to your 95th birthday with our recommended portfolios. And number five is we're going to give you a financial plan with our recommended portfolios that also includes a free Roth ladder conversion plan with an estimated amount of how much you're going to save in lower taxes over time. If you've been working with a broker or somebody that's just talking about rates of return and is not talking about a holistic plan for your retirement, you feel like you do not have an overall plan for retirement.

Ford Stokes:
I would encourage you strongly to reach out to us at ActiveWealth.com. Click that schedule a consultation button in the upper right corner and book an appointment directly in my calendar. You can also just pick the phone up and give us a call at (770) 685-1777. Again, my number is (770) 685-1777. And we're going to talk about how we can really tax efficiently and methodically implement an effective Roth ladder conversion plan for you. Now, I'll give you a hint. Let's say you're going to take $200,000 a year from your million dollar IRA account over the next 5 to 6 years because you're going to deal with growth on the account as well. And you really want to get all of your money moved over from your Roth IRA, from your IRA to your Roth IRA. You want to move it dollar for dollar. So if you move 200 grand, if 200,000 comes out of your IRA, you want to take $200,000 and put it into your Roth IRA. But you're still going to owe taxes. Let's say you're at a 20% tax bracket. After you do that, you're going to move. You're going to pay the taxes with, let's say, an investment account, a taxable account or a savings account or a checking account or rental income or whatever that looks like. But you're going to take taxable money and pay the taxes when you're converting tax deferred money into a bucket that is nothing but tax free money.

Ford Stokes:
That's a really good idea. With over 31 closing in on $32 trillion of US national debt, don't you think the taxes are likely going to go up in the future? The current 24% bracket was actually 56% from 1960 to 1963, which is likely when a lot of you were alive in your lifetime. The 24% brackets been two X plus 8%, 8% higher than two times what the current 24% bracket is. That's a problem. And so I would encourage you to do everything you can to delete the IRS out of being your partner in retirement. That's a guarantee. And we've run out of time here today. We've only got time enough for the final countdown. On next week's show, we are going to talk about what's happening with your bonds, with the bonds that you hold in your portfolio and why you should consider a bond replacement strategy. And also, I'm just going to ask you a question to consider over the week. Why are you taking risks with the income portion of your portfolio by investing in bonds? Honestly, why are you taking risks with the income portion of your portfolio by investing in bonds? Why are you paying advisory and portfolio fees on the income portion of your portfolio with bonds? It's the final.

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

Ford Stokes:
The final countdown. So in this week's show, we gave you the quote of the week, which was people should be more concerned with the return of their principal than return on their principal. We thought that was very on point. We thought that was right on. We thought that was right on point. With what's happened with Silicon Valley Bank failing in the past week. We talked about the failure of Silicon Valley Bank and Signature Bank, which were the number two and number three largest bank failures in the history of the United States. We also gave you safer solutions for your hard earned money with our bank CD segment. We also talked about the three steps you should take to maximize your Social Security benefit. And I'll give you another hint. You really ought to just call us at (770) 685-1777 so we can run your own Social Security maximization report for you at no cost to you. And also next week, we're going to talk about what's happening to your bonds and give you better strategies for retirement income that are more tax efficient, fee efficient and even more market efficient. If you're seeking information about retirement, do everything you can to get all the information you can. If you're going to be a bear, be a grizzly. Be aggressive about learning as much as you can because knowledge is power. And we hope everybody has a fantastic week.

Producer:
Thanks for listening to the Active Wealth Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free consultation, call your Chief Financial Advisor, Ford Stokes at (770) 685-1777 or visit ActiveWealth.com.

Producer:
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 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.

Producer:
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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