On this week’s show, Ford Stokes and Sam Davis want to help you learn from other people’s mistakes as they walk listeners through five common retirement pitfalls and how to avoid them.

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About Retirement Results:
Welcome to Retirement Results! Each week, Ford Stokes and his team of fiduciary advisors help educate pre-retirees, retirees and business owners on ways to better protect and grow their hard-earned money.

With $36 trillion in national debt and counting, many economists believe that taxes are likely to increase in the future, affecting retirees for decades to come. Ford and his team will help you build a smart plan that is TAX-efficient, FEE-efficient and MARKET-efficient. Listen to the show every weekend on WGKA AM 920 The Answer in Atlanta, Georgia & subscribe wherever you listen to podcasts.

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1.24.25: Audio automatically transcribed by Sonix

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

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

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

Speaker3:
Welcomes all drivers. I'm Ford Stokes, your chief financial adviser. I've got Sam Davis here with us on the mike. Sam is our co host and senior financial advisor. Sam, say hello to everybody. Welcome to the.

Speaker4:
Weekend result drivers. Welcome back to retirement results. We're so happy you've chosen to spend just a little bit of your weekend with us listening on Am 920 the answer or wherever you listen to podcast. We get all of our new episodes published, usually every Friday afternoon before they air on the weekends. So if you're a big fan of our show and want to get a little sneak preview of the show ever, usually you can just subscribe to wherever you get your podcasts and you'll get that on on Friday afternoons. But Ford, it's been a big week in our nation's capital. There are some new residents over there at the white House, and there's a lot of change actually already unfolding in week one.

Speaker3:
I'm so excited to have Donald J. Trump in the white House. Wow. What a week it's been. He is at a flurry of executive orders. He also pardoned 1500 J6 political prisoners, um, that were mislabeled as insurrectionists. And, I mean, including an Olympic swimmer, um, the head of the Proud Boys, um, of so many American patriots are now free and back with their families and trying to put their lives back together. Um, I'm so excited for those J6 prisoners. I can't believe what they've been through, uh, over the last four years. So, so glad that Donald J. Trump. It was promises made and promises kept on that one. Obviously, it's great for our economy, for the markets to have, um, Trump back in the white House. He's already launched some executive orders regarding the border. He also put 1500 US troops on the On the border. He's making the military to be more about homeland security, which I think is fantastic. And if anybody caught his interview with Sean Hannity on Wednesday night, it was something to behold. He kind of laid it out. He's like, you know, they don't the Democrats don't even have common sense. They think that it'll help them get more votes by letting 21 million plus people into the country over the last four years. And he's like, I just don't think it does. He goes, I did really well with Hispanics. I did really well with blacks. I did really I won the youth vote by 36%. Uh, it's just been a flurry of activity. I love the fact that he also put a muzzle on the FDA and the National Institute of Health and others, where they can't start doing scare tactics with pandemics. He's he's he's heading that off at the pass. Um, there's just so many things he's doing, Sam, that I just am so giddy about. I'm finding myself not being able to walk by my TV without making sure that Newsmax is on, so I could see the latest.

Speaker4:
Well, there's certainly there's certainly a lot of changes happening. I mean, the new leader of the executive branch is is executing, um, his power right now and really trying to pick up where he left off. Um, in at the end of 2020, beginning of 2021, when Joe Biden moved into the white House. So a lot of changes coming so far. You know, as of recording, the market is reacting positively, um, to Donald Trump and his administration. And so, um, I was I was very grateful and pleased to see there was at least very little political violence or any, you know, bad actors on Inauguration Day.

Speaker3:
What was really interesting is that Tom Homan has already arrested over 380 80, folks. Um, that was an interesting tidbit and is deporting those people. So they went after some serious criminals really quickly. Um, who's the director of Ice? And then I'm just really excited to to be able to bring each week kind of an update. Just a big overview, positive update about what President Trump is doing for our country and also how what he's doing for our country is going to impact the markets. Also look out for February 1st, because that's when tariffs on a lot of countries will start. And um, it's uh, it's going to be serious I think for Canada, for Europe, for Mexico obviously. And we've got to stop the fentanyl from coming in. Uh, what's what was amazing was the 100,000 people were killed, um, with fentanyl, um, over the last couple of years. And that's more than the number of Americans that we lost in the Vietnam and Korean wars combined. So we've got to protect our citizens. We just have to. So on today's show, we've got a great outline for you. We're going to do a great job today in educating you. We're going to talk about how you can retire smarter by avoiding these five retirement mistakes, and help you feel more confident about your plan. We've also got a great cost cutter of the week that we'll share. And we've also got we kind of ask the question, does your job offer a pension plan? And if not, we can help you establish your own personal pension. Sam, why don't you go ahead and share the financial wisdom quote of the week. And it's a great week to have another quote from the Oracle of Omaha, Warren Buffett.

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

Speaker4:
Yeah, I found this one back from a episode we did almost three years ago, but I thought it was really appropriate for what we're talking about this week. And this one comes from Warren Buffett. And Warren Buffett once said, it's good to learn from your mistakes. It's better to learn from other people's mistakes. And that's perfect for, you know, this outline and this segment that we're going to bring people throughout the the rest of segment one and segment two, because we want to help all of those listening, avoid those mistakes in retirement. You know, the clients that we serve and the people we work with, we want to be that person by their side, you know, guiding them through, you know, some of the obstacles that all retirees face.

Speaker3:
For sure. And I want to go ahead and get right into these five mistakes to avoid so you can retire smarter. Um, to do retirement, right, you really need a solid plan that includes a clear vision of what you want your retirement to look like. I mean, retirement is a very a very important part of our lives, and it's a very important time period in our lives. And it's also going to help bring your family together, bring your family and friends closer to you. And we really need to do a good job with that, because if you don't have a good plan, you don't have a plan for how to fund it or how to fund and finance your retirement. You could see splintering away from your family and friends. If if friends are going on great cruises and trips that you guys aren't able to go on because you haven't done a good job at properly planning or you you have to continue working, you don't have as much time during your retirement years to go enjoy life with your friends, and also spend more time with your family. I also want to give a shout out to a couple. I'm not going to name their names, but they're amazing people. They live in the Dunwoody area and they also have a house on Lake Lanier. And one thing that they said to me is Ford.

Speaker3:
We got a lake house over the last year. Literally, from listening to you, we've been looking for a lake house for a few years. Then we made it an earnest decision to go ahead and get a lake house. When you said, you know what, get a house on the water so your your family and your kids will come back to you. And that's exactly what's happened. They said it's worked so far. Our kids want to be at our lake house with us all the time, and they're not necessarily bringing friends. They're just bringing themselves, their spouses and kids over to spend more time with us. And we get to see them a lot more than just Thanksgiving and Christmas. So I wanted to go ahead and and re-up on my urging of folks like, if you go to downsize, try to get, um, a property on the lake or the beach on a body of water so that your kids will come see you like Memorial Day, July 4th, Labor Day. Um, also, it's come when when you guys are going to be at your your lake house, your beach house. I think it's a really good idea. And, um, and so it was just good to get that validation from another loyal results driver listener. Um, again, if you want to hear a results driver, is it somebody that listens to this show? It's somebody who listens to retirement results.

Speaker3:
They want to build a tax efficient, fee efficient and market efficient portfolio so they can be successful in retirement and build that smart retirement plan. We want to also make sure that when you're building a solid plan, that you've got a plan for when you will take Social Security again, the longer you wait, the more you can make, but you don't want to put too much downward pressure on your portfolio by having to over withdraw money from your account. Um, next is an income plan that will allow you to beat your budget. We want to make sure that you're starting with that positive retirement income surplus on a monthly basis, versus starting with that negative retirement income gap. And then also we want to build a sound investment strategy for any retirement accounts that you may have. Behind these seemingly simple principles lies a complex set of ways it can all go wrong. And we come back. We're going to talk about these five mistakes to avoid for a successful retirement. Sam's going to go over each one of them and I'm going to give my input on them. Come right back and learn about the five mistakes to avoid so you can retire smarter right here on retirement results.

Speaker2:
Schedule your free, no obligation consultation now by calling toll free at 888140304. Listen, are you concerned about rising taxes and how that could affect you and your family during retirement? If you have an IRA balance over $400,000, you could save six figures in retirement taxes that you would be paying during a 35 year retirement. Find out how much you could save today by scheduling your no obligation Roth conversion consultation with Ford Stokes of retirement results. Learn more and schedule an appointment at retirement results. Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit retirement.com for more information. Get started on your free portfolio analysis and financial plan right now by visiting Retirement results.com.

Speaker3:
And welcome back to Retirement Results. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis here with us. He's our co-host and senior financial advisor. Sam, why don't you start sharing the five mistakes that people can avoid to retire smarter?

Speaker4:
Yeah. If you missed segment one, our quote of the week was from Warren Buffett. He said, it's good to learn from your mistakes. It's better to learn from other people's mistakes. So we're going to run down a list of five, you know, main mistakes that we see people making and we want to help you avoid during retirement. And mistake number one is simple. It's failing to plan. You know, they say if you fail to plan, then you're actually planning to fail. So many people carry on living for decades as if retirement will never arrive. We see a lot of people who, you know, we say they're putting their head in the sand. Um, but for a large majority of people, most of us are going to reach that retirement age. And if you're not planning, it's going to encourage more mistakes, like failing to budget, failing to save and invest. You know, Ford, one of the most valuable things people have as they're building up their retirement nest egg. It's not just the money that they're saving. It's the time that they have. And that's why we encourage people to take action now when they're still young. I mean, if you're in your 50s or or still, you know, in your early 60s, you still have time to make some changes and optimize your plan. Because we're talking about retirement. This is a period of time that lasts 20, 30 years, sometimes even longer. So failing to plan is really setting yourself up for failure in retirement.

Speaker3:
Yeah, you just really need to first do a great job at saving. Um, you need to do that over years, not just over a single year, obviously. And you really need to start doing the catch up as soon as you start turning 50 years old and older, you really need to do everything you can. One thing that a lot of people miss is that and you're going to talk about it. Mistake number two. But a lot of people are missing investing in an IRA or a Roth IRA in addition to their 401 K. They can't do both, but they can do A4K and an IRA. They just can't do a Roth IRA and an IRA at the same time in the same year. I would encourage people to at least put that that money aside in their IRA or Roth IRA, in addition to their 41K. I want you to get closer to that 15% savings rate after you reach 50 years old and above, so you can get to that catch up period. Um, now, Sam, go ahead and share mistake number two.

Speaker4:
Yeah. So mistake number two is mismanaging your tax advantaged retirement plans. So a lot of people aren't contributing enough to their workplace IRA or 401 K to get that maximum employer match. This is a costly mistake because those who fall into this trap are missing out on what is essentially that free money. Right. So if your employer is matching up to, you know, 50%, up to 5% of your contributions or whatever they may be, every you know, some employers are more generous than others when it comes to what their matches. But make sure that you're taking advantage of that match so you can earn that 100% return on a percentage of your contributions because they're matching it dollar for dollar or whatever their policy may be. So another 401 K or IRA mistake is actually borrowing from a plan and failing to take it back. We see a large percentage of people actually taking early withdrawals. So you want to avoid that because those are subject to penalties. And again, you know, it's all about planning for your retirement. That's planning for the future, not planning for now. So, you know, we encourage people to begin with the end in mind and and make sure that when you're managing your retirement plans, you know, do everything you can to take advantage of those, those tax advantages that are out there. Yeah.

Speaker3:
I mean, let's don't mismanage the 4k plans. Let's just don't do that. One thing you can do with four K's, you can put up to $23,500 into a 401 K, and you can put up to $8,000 if you're over 50 or $7000 if you're younger than 50 years old, into an IRA each and every year. So let's try to make sure we're doing a good job there. Uh, again, you really should try to save first and spend second. It's hard for people to do so. If you can live on what's left over after you've saved 15%, if you can get to 15% savings rate, I think you're going to be really happy with what happens in retirement. Sam, can you can also share mistake number three to avoid for a smart retirement.

Speaker4:
Yeah. Mistake number three is not planning for Social Security. So your Social Security, you know, that is going to be a really nice income source for you in retirement. It's essentially an annuity or a pension. It's money that you know is guaranteed. And it's going to come every month as long as you live. Now, to qualify for those benefits, all you have to do is work a required number of years by contributing through payroll taxes. So those of us who are working now and paying payroll taxes are supporting those who are currently taking Social Security. Now, it sounds simple and straightforward, but they give you a lot of different decisions on when to take your Social Security. Do you wait until your full retirement age? Do you defer longer to take advantage of the growth? And people just have a lot of questions for it. And that's why you went and got certified as a registered social security analyst. Went through all that training, and now you run dozens and dozens of plans for our retirement results, radio show listeners, our podcast listeners, and of course, all of our clients who are looking to make decisions about their Social Security. And, you know, walk us through like what that is like when people are looking to make the best decision about when to take Social Security and they come to you to put together these reports.

Speaker3:
Yeah, I've run over 250 of those plans actually in the last 12 months. And and what I'd love to help more people on how to plan for their Social Security, how to maximize their Social Security benefit. I'd encourage people to reach out to us at retirement. Com forward slash plan. That's retirement results.com/plan. Just put your information in and we'll we'll reach out to you to get started right away. And then also you can call us at (770) 685-1777. But what we do when we run those SSA roadmaps, which serves kind of like a Social Security maximization report, what we do is we take your top 35 earning years. We're looking for your XML file that's available on Ssa.gov, and we'd like people to get that to us. And we're happy to put that data to all of your income data, according to Social Security Administration into into our RSA roadmap. And that will generate an incredible report that will help you understand where your break even points are. It also helps you understand what what is your maximum income benefit you can get on a monthly and or annual basis. Um, also, we're helping a lot of couples, Sam, where the wife has worked off and on for a lot of years outside the home. Obviously she worked really hard inside the home, raising the kids, but outside the home and she had income where she turns on her income at 62.5, and then she might wait to file her spousal benefit, which is actually more because it's 50% of her spouse's benefit. But these are some of the things we look and dive into when we're planning for Social Security. So I encourage people to reach out to us at retirement results.com. And go ahead and click that schedule a consultation button in the upper right corner or just visit retirement plan. That's retirement results.com/plan. Submit your information. We'll call you and we'll get started right away.

Speaker4:
Yeah. And thank you Ford for for adding that to, you know, what we're able to offer here at Active Wealth. I've seen it benefit not just the people I work with, but everybody who all of the advisors here at Active Wealth work with have have really benefited from that. You know, you want to make that good decision. You know, everybody's situation is different with Social Security. So you want to make the right decision for you, especially considering we know Social Security's finances are under pressure. And the trust funds that help fund Social Security are scheduled to be depleted in just under ten years. They're going to start seeing some of those depletion dates come due. And we want to make sure that you're getting the most of what you can.

Speaker3:
It's just incredibly gratifying that we've been able to help 250 families maximize their Social Security income benefit. And I would encourage you, as a listener, to retirement results to take advantage of this. Go ahead and reach out to us at (770) 685-1777. Again (770) 685-1777. Because when you're making the decision of when you're going to take Social Security is either the number one or number two, most important decision you're going to make regarding your retirement income ever. So let's make sure that we're doing a really good job maximizing that Social Security income benefit that we deserve, that we we have earned and that we are owed by the federal government. And I think you're going to see President Trump fortify Social Security in the next 12 months with new legislation. We'll see what that looks like. But I think it's going to be More to the tune of of a higher payroll tax. Um, or at least a payroll tax that lasts the entire year versus sunsetting after you've reached 6.2% of your overall salary for the year. I think you're going to you're going to see some of that. And that's going to also help everybody that's been thinking about, well, I don't have to take Social Security or I need to take it as soon as possible, because I don't know if it's going to be around for me. I do think Social Security is going to be around for you. I've got good news there. But at the same time, we need to maximize that for you and your spouse. And if you're married, you've got real opportunities to make this happen. Also, for those divorcees out there, if you were married to your husband for ten years or longer, you are entitled to 50% of their benefit. So don't just lean on yours, you need to lean on theirs. And let's make a decision on what's higher for you, your own benefit or your own ex-spouse benefit.

Speaker4:
All right. And when we come back, we are going to give the last two mistakes we want to help people avoid so that they can retire smarter. You are listening to retirement results.

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

Speaker6:
When the night has come and the land is dark.

Speaker1:
And the moon. 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. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an 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 page for 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:
You're listening to retirement results. And now back to the show.

Speaker3:
And welcome back result drivers I'm Ford Stokes, your chief financial advisor. Got Sam Davis here with us on the mic. He's our co-host and senior financial advisor. Sam we're talking about the five mistakes to avoid, to retire smarter. And go ahead and recap the first three that we've done. And then also let's start on mistake number four.

Speaker4:
Yeah. Mistake number one failing to plan. Make sure you're actually planning for retirement and taking advantage of the time you have that's on your side. Mistake number two mismanaging tax advantaged retirement plans. You want to make sure you're taking advantage of that employee employer match. You want to make sure that you're taking advantage of those tax advantaged retirement plans that are out there for you. And mistake number three, not planning for Social Security, active wealth management, the team behind the show, retirement results can help you by putting together that Social Security maximization report. So if you want to see what you would be taking and what you would be making in Social Security income, depending on what year you would take it, we can put that report together for you, because our chief financial advisor, Ford Stokes, is also a registered Social security analyst. And Ford, that brings us to number four. Mistake number four is emotional investing. Studies have shown the best approach is to stay fully invested through good times and bad. Uh, to go back to Warren Buffett, who was the author of our quote of the week. Ford I know another quote he has is that his favorite holding period is forever when he makes an investment. He really, you know, sticks to his morals, sticks to his guns and believes in that company that he's backing. You know, trying to time the market based on your emotions is one of the least promising strategies you could have. We saw this recently with the whole cryptocurrency craze. We saw prices get very inflated. Everybody get really excited about things like cryptocurrency and NFTs in the public space. A bunch of people bought in when it was at all time popularity. Everybody was euphoric, excited. And then what happened? The whole thing came crashing down. So we believe in planning and sticking to that plan. And then, you know, being tactical, making adjustments when necessary, but definitely not on the basis of emotions.

Speaker3:
Yeah, you really want to be careful about how much emotions are are playing a part in you making decisions to go ahead and sell. We see a lot of the indexes and a lot of the stocks that we invest in for our clients. Really spring back after a slight downturn. And you also don't want to miss the top three trading days of any year, because that could be a majority of the growth for that year. Now is also a good time to share that. You know, Sam, you and I are both really excited about the new portfolios that we've been able to roll out through our Ria. Brookstone Capital Management, Marc Deorio being our chief investment officer. It's been fantastic to see the performance over the last year of the BCM growth stock basket. Also, the BCM dividend stock basket, coupled with our raised star portfolios that have a lot of Nasdaq 100 in them, um raised select and the raised Bam portfolios, um, all of those are really doing well. We're excited about those. It also gives great diversification for our clients and we can mix and match those portfolios. It's kind of diversification on top of diversification. When you are investing emotionally and you're not following a plan to diversify your assets and kind of have an overall plan, then you're really hurting yourself.

Speaker3:
And over withdrawals from your accounts are the number one way to deplete your assets down, where all you're going to be doing is living on the Social Security income check, which we don't want that to happen during retirement. But the second one that is almost as bad is market losses and sequence of return risk. And emotional investing plays a large part in that. And we want to do everything we can to minimize that emotional emotional investing. And let's go ahead and trust the professionals. Let's trust us to protect and grow. Your hard earned and hard saved wealth It was diversified between stocks. Try to avoid some of the bonds. Invest in insurance products like fixed index annuities or index universal life insurance. You've got true diversification. And if you want to have, you know, rental property and you like managing rental property, I don't know if you will in your 80s, but you can do that and diversify even further. We have clients that do that. But I would encourage you to get truly diversified to really watch that emotional investing.

Speaker4:
Yeah. And we do find that if you are someone who is a bit more of an emotional investor or someone who gets really worried about downside losses, we can implement a plan that includes a protective floor on a portion of your portfolio. That's why when we build income plans, we like to make sure that your income in retirement is going to be protected. So regardless of what may happen on the stock ticker week in and week out, you know that your retirement income should not change and it should continue to support you during retirement. So there are some things we can do. If you find yourself getting a bit emotional about your portfolio balances and the stock market. So that brings us to mistake number five. And that's focusing only on the financial side of retirement. You know retiring is only partly about planning for how you're going to earn and spend your money, but you'll also need to find ways to fill the time you previously spent working. You know, sometimes we've said Ford on the show, when you retire every day Saturday, you have a lot of fun on Saturdays, but you also tend to spend a lot more money as well. So we believe it's important to have a smart vision for your retirement, and that smart vision really helps guide us when we create these smart plans.

Speaker3:
We're excited to help you better plan your work and work your plan during retirement. You really just got to do a great job at doing an overall plan. I mean, you need to understand, hey, how do I get a smart legacy plan? How do I transfer my assets when I go to heaven or when my spouse goes to goes to heaven. So the last of Us passes away. How do we give those assets to our kids the most tax efficient way? How do I get the most tax efficient income month over month during retirement? How do I diversify my assets between taxable accounts and tax free accounts and tax deferred accounts? How do I move money from tax deferred into tax free? Those are all things we can help with. But I would also tell you, you really need to focus more on when you're going to take Social Security. How do you maximize that? How do you avoid doing over withdrawals from your accounts? A lot of these things aren't necessarily just focused on the financial side of retirement. Also, I encourage you to build that smart vision for your retirement. You want to do everything you can to understand what are you doing during retirement? Who are you spending your time with? Who are you with during retirement? And number three is how are you going to going to fund it? If we can figure out all those things, then your retirement's really going to fall into place. And if you don't feel like you've gotten that type of coaching and leadership from the advisor you're working with or from your 401 K plan, which likely you haven't, then I encourage you to go to reach out to us at (770) 685-1777 and (770) 685-1777 or visit retirement results.com/plan. That's retirement results.com/plan. Put your information in and we'll contact you so we can get started right away.

Speaker4:
All right Ford that is bringing us to our recap. And so the worst retirement mistakes we want to help you avoid are one. Not planning to retire at all two failing to take full advantage of your retirement savings plans. Those 401 K's, those IRAs, all of those different tax advantage plans three mismanaging your Social Security benefits. We want to help you make the right decision with those four making emotional investment decisions that cost you money, and five not having a smart vision for your retirement. And if you or your spouse or anyone you know is looking for some help when planning for their retirement, uh, give us a call here at Retirement Results, we're powered by active wealth management, and you can call us right here in our Atlanta office at (770) 685-1777. That's (770) 685-1777. You can learn more about us and our team at Active Wealth. Com. And when we come back we're coming back for one more radio segment. We're going to talk a little bit about optimizing your 401 K plans and those employer retirement plans. You're listening to retirement results.

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

All the things that I know you'll like making good conversation. I got a handle on.

Speaker7:
Revenue sharing and athlete employment status. The college sports business model will continue to change in 2025. I'm Jim Tarabukin for the Retirement Radio network powered by Amira Life. Last year, the House versus NCAA case settlement concluded regarding revenue sharing as outlined. Schools will now be able to pay their student athletes, but the NCAA has garnered more power to control the name, image and likeness marketplace. National college football writer Chris Hummer explains further. For football.

Speaker8:
I think you're going to see the most drastic changes. Athletes straight up are just going to get paid a lot more money. Schools are going to have to pay out essentially 20% of their television revenue to the student athletes every year.

Speaker7:
Following the ruling, each Division one school will now have a pool of money, a type of salary cap, and will be obligated to pay all of their student athletes. The cap will begin at around $20.5 million per school, and will rise to around 30 million over the next ten years. Additionally, players can now negotiate deals with schools, coaches, collectives and donors before they step foot on campus. In other words, pay for play. Forbes sports business analyst Christie Dosh says that these players are entering uncharted territories.

Speaker9:
I think that athletes and their parents and agents, agents for those who are able to get agents, are going to have a whole new world here because I do not think schools are going to choose to implement revenue sharing at a flat fee. There's some issues with that when it comes to antitrust law. Tax professionals tell me there's some potential IRS issues. So I think it's going to be based on market value with.

Speaker7:
The incoming government in 2025. Employment status for athletes has lost traction. But the Johnson versus NCAA case, which argues all D-1 athletes are employees, is still pending in federal court. Meanwhile, some are calling for athletes to hold more power at the negotiation table. A possible collective bargaining agreement could be on the horizon. All told, though, there's still a great deal to sort through over the next few years, but you could argue it's never been a better time to be a collegiate athlete in 2025. For the Retirement Radio Network powered by Molife. I'm Jim Tabaka.

Speaker2:
At Active Wealth Management. We know you've worked hard for your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, Ford Stokes of Retirement Results is passionate about helping people protect and grow their wealth while educating them on all their options so they can choose what's right for them. Visit retirement Results.com to schedule your free, no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at retirement results.com. 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 result. Drivers George Stokes and Chief Financial advisor got Sam Davis here with us on the mike. He's our co-host and senior financial advisor. And Sam, you're going to share some information about what to do with your 4k. It's really great information that people need to hear. And I've got an incredible example of what a really smart manufacturing executive, middle management, middle management guy has done over the last four years with us as he's preparing for retirement. Go ahead and Sam and share some great wisdom about what's going on with four K's and what you can do.

Speaker4:
Yeah. So first, you know, the first thing we would say is, you know, we just want to help people. It's still the beginning of the year. We're still here at the tail end of January, first month of the year. Make some smart adjustments and take advantage of the time that's on your side. You know, we're always encouraging people to plan. And when it comes to your 401 K plans and you know, if I say 401 K, I could be talking to a county employee that's got a 457 or a teacher that's got a 403 B whatever sort of employer based retirement plan you have. We want you to be more in control of those investments and know what you're actually invested in. So we've talked a lot about target date funds in the past. Those are the funds that give you that target date for retirement. So maybe it's target date 2030 or 2035. It's supposed to be setting you up to retire and manage risk as you approach that target date. But they do such a poor job of what they intend to do. They're often filled with fees, sometimes even layers of fees. And you just don't have control of those options because it's made to be one size fits all. And if it's one size fits all, it doesn't really fit anybody too well. So take more control of those.

Speaker4:
Here's, you know, kind of a list of things that Ford and I put together. What we would recommend if you're looking to optimize your 401 K. So step one would be get all your 401 K investment options and your 401 K account balance. Actually, take a look at your most recent statement and take a look at what all of your investment options are. Essentially the menu of investment options inside your employer retirement plan. You know, sometimes you know, you'll have, you know, 5 or 6 options. Sometimes it will be in the dozens of options, but you'll want to see what your employer plan is actually letting you choose. You'll want to understand, you know, that risk tolerance that you have. You know, are you somebody who has time on your side still? Maybe you're a younger investor, or you're just willing to take more risk and understand, you know, how much you can actually save as well. You want to be taking advantage of that full employer match, but you don't want to be over stretching your budget each month. We would recommend choosing investment options that minimize your expense ratio. So therefore minimizing the amount of fees that you're actually paying within your plan. Um, if you send us your options and you want us to help you optimize your 401 K, we're going to seek to help you minimize risk by reducing standard deviation.

Speaker4:
We don't want you taking too much risk for just a small amount of gain. If you're taking a big risk with an investment, we want you to be able to get a reasonable amount of return for taking that level of risk. And we're also going to be seeking to help you reduce asset correlation. So some people think that they're diversified by investing in, you know, 3 or 4 different index funds. But if those index funds are all held up with the same components and the same component companies, then they're all going to move up together and they're going to move down together. So we want to reduce that correlation so that you have true diversity. Just a couple more tips. Look at ETFs that have performed well and tend to have lower fees. And avoid or sell those mutual funds that have high 12 B1 fees. A share fees and C share fees and seek to minimize your corporate bond income. We have better options for those income products in retirement, and if you have any questions about optimizing your 401 K, we'd love to help. You can just give us a call at (770) 685-1777 or visit us at either Active Wealth or Retirement Results.com, and we'd love to help you optimize your 401 K plan this year.

Speaker3:
The bottom line for me, coming out of that incredible amount of great information, what to do with your 401 K is just reach out to us at (770) 685-1777 or visit active Wealth. Com or visit retirement. Com and let us optimize it. We've got a team of financial planners that will review your 401 K will. They'll seek to reduce your expense ratio, reduce your standard deviation, reduce your asset correlation, and give you a completely different recommendation than what you're likely invested in. Within the 4k options you have available within your 4k. We're seeing people that are getting 5% to 7% better each year just by optimizing their 4k. We're seeing them just win by a couple of points, just by reducing the expense ratio within their portfolio year over year. And we're willing to review your 4K, at least on a yearly basis. We do it all for free. It's normally like a $500 value, but we're going to do that for you. Well, if you invest with us in other areas with your old IRAs, where we will provide a free 4K analysis and recommendation for you on how to allocate your 4K, it's.

Speaker2:
Time for this week's.

Speaker3:
Problem solver. Brett. He's a gentleman who actually lives in the northeast. He used to work for a company where I have a lot of clients, and he was in manufacturing. He's still in manufacturing, and I have a lot of clients that kind of refer people to us. And if you're listening to us, we'd love the opportunity to have you refer people for us so we can give you give your friends and family free portfolio analysis. Free RSA roadmap to maximize your Social Security, a free retirement income gap analysis, and a financial plan to your 95th birthday with a strategic Roth Off ladder conversion. We'll do all those things for you. Absolutely no cost is a $2,500 value, so go ahead and refer folks to us by referring them to retirement results.com or active wealth.com. But here's what Brett did. He came to us four years ago and he was nervous during Covid and said, hey, I got to get on a plan here. I haven't really done a lot. He's in he was in his mid 50s. Now he's about to turn 60 years old. And what he did is he took his old he was an orphan 400 K and rolled it over into an IRA with us. We've invested we've he's done very well with that. We also took 40% of that 400 K and put it into the nationwide Pac ten. And he's done very, very well with that. And he waited a couple of years to do the the investment in peak ten. But he's he's on his second year anniversary and he's done extremely well.

Speaker3:
He also got a 20% immediate bonus. And he got the 8% roll up. And he hasn't taken withdrawals yet. So he's getting 8% a year guaranteed interest. Plus he's getting back. When he did it, it was 350% of how the BNP Paribas Global Factor Index performed in a participation rate. He's got his retirement income set. He's got a plan for when he's going to implement his Roth conversion, but he's cut the expenses within his 401 K in half. And all of that together has kind of built this wall, brick by brick to provide a great foundation for his retirement. And I really would urge each one of you to do the same. A lot of 50 year olds, late 60s, early 60s are listening to us. Please do me a favor. Reach out to us at (770) 685-1777 so we can get started on a comprehensive plan for you. There are things you can do even while you're still working, and you're not ready to roll your 41K out. If you got old orphan four one k's, you need to do something with it. If you're considering taking taking your pension and you're trying to make a decision between taking a lump sum or just turning on your pension, I'd like to see you get market like growth with your pension money and have your income grow year over year with our personal pensions that we can provide for you. So I'd really like you to do that. And now the final countdown. 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 celebrated President Donald J. Trump being back in the white House, Donald J. Trump for being so selfish. Also, thank you for making sure your promises made are also promises kept. And thanks for letting out and pardoning the 1500 plus six political prisoners. Also, thank you for protecting our border almost immediately. Excited that Marco Rubio has been appointed, I hope the Democratic senators will stop their chicanery and stop delaying all of the appointment picks for Trump's cabinet. On this week's show, we talked about the five mistakes that you need to avoid to build a smarter retirement. And those five mistakes are that we want to avoid is you want to avoid failing to plan. Let's don't mismanage tax advantaged plans. Let's do a better job of those. Let's also make sure that we're not going to fail to plan for Social Security. Let's also make sure we're not just emotionally investing. And let's be part of allocations with strategically managed portfolios. That includes tactical asset allocation. And let's also focus on more than just the financial side. Let's don't make that mistake of focusing only on the financial side. Let's have a good idea on smart legacy. Let's have a good idea on having a vision for retirement.

Speaker3:
And let's do more than just invest in stocks and bonds. Let's try to truly diversify our portfolios. That kind of speaks to number four and number five which emotional investing. And let's focus more on than just the financial side. Listen Retirement's more about than just building one big nest egg. Let's do everything we can to get a retirement income plan right for you. And let's get more tax efficient with your portfolio. Sam and I really appreciate you listening to retirement results week over week. Thank you to all of our podcast listeners that those listeners keep growing. But also, thank you for making us the number one listened to radio show on Am 980. The answer on the weekends. We really appreciate you all and thanks so much for being a result driver. And next week we're going to have more information about how to build a smart retirement. And we've got a big announcement that we're going to make next week. Come back at 12 noon on Saturday or 11 a.m. on Sunday. We're going to have a free offer for all of our result driver listeners, you're going to want to hear this big announcement next week. Have a great week, everybody.

Speaker2:
Thanks for listening to retirement results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary consultation, call us now at (770) 685-1777. That's 706851777 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, a registered investment advisor 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.

Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients, and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV Two-a item four for additional information. Not affiliated with or endorsed by the Social Security Administration or any other government agency.

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