2.17.23: Audio automatically transcribed by Sonix

2.17.23: 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, our executive producer here on the board for us and joining us. And he's going to join in on a few segments today. And we've got a fun show that's going to be educational that's a little bit different than what we normally talk about. So but it's the it's the end. It's the last episode in our Smart Retirement Plan series. And this show is all about smart lifestyles, smart legacy and making smart adjustments to your retirement plan. So we want to welcome all the activators out there to the Active Wealth Show. If you're wondering who an activator is, it's somebody who listens to the Active Wealth Show. It's somebody who is looking to build a sound financial plan for a successful retirement. They're trying to protect and grow their wealth. They're looking to build a tax efficient, fee efficient and market efficient portfolio. And we're going to help you do that today. But we're also going to help you build that smart legacy and that smart lifestyle and also help you adjust along the way. And if you've got questions or you just want to meet with us and you want to meet with a licensed estate attorney, we can put you in touch with one of those folks that we work with in different parts of Atlanta. All you've got to do is visit ActiveWealth.com. That's ActiveWealth.com or active wealth. Show.com to listen to any of our episodes and you can also call us at (770) 685-1777. Again (770) 685-1777. Sam can you also tell them how they can listen to our podcast?

Producer:
Absolutely. First off, welcome to the weekend activators. Happy to have you on this week's Active Wealth Show. And over the last month and a half, we have been working our way through the Smart Retirement Plan series. We got a lot of good feedback from our Smart Risk episode as well as our smart income discussions on that episode. And if you'd like to go back, get a refresher on all that we were talking about on those episodes. Just visit ActiveWealthShow.com or subscribe to the show wherever you listen to podcasts. So if you've got an iPhone, pick it up, Go to Apple Podcasts, search active wealth and be sure to follow the Active Wealth Show. If you've got an Android phone, you can follow us on Google Podcasts or Spotify or wherever you listen to your shows.

Ford Stokes:
That's right. Yeah, we're we're on all like the top 15 podcasting networks and we just really appreciate all of our listeners out there, whether you're listening as you're driving around Atlanta, heading to Home Depot or to Lowe's or Publix or Kroger or having two a kids or grandkids sporting event, I would encourage you to just make sure all your friends know about it too. We appreciate people referring people to the Active Wealth Show because we're so passionate about helping people kind of protect and save their wealth. And we really appreciate all the activators out there.

Producer:
Yeah, we love bringing good information to the activators. We're available on AM 920. The Answer on both Saturdays and Sundays. But if you've never listened to a podcast podcast before, that is the on-demand version of our radio show, the Active Wealth Show. And so, you know, whether you're commuting through the middle of the week and you want to catch up on past episodes, the podcast is a great tool for that.

Ford Stokes:
Also, we've got the video of us giving it so they can see our mugs. So that's good. So let's talk about today's show. And Sam was waving to the to the adoring crowd. So we're going to talk about our financial wisdom quote of the week. We've got a vignette that's really exciting that talks about our 23 cost cutters for 2023. That's 23 retirement cost cutters that are specific to pre-retirees and retirees on how to reduce their cost during retirement. And we have we're going to have a series on this for the next 23 weeks. We're going to have the vignette that sets it all up this week. So it'll be 24 weeks total. And Matt McClure is putting all this together for us and he's doing a great job. But we have that 2023 retirement cost cutters, that 23 retirement cost cutters for 2023 is what I should say. We have that available for download or we'll just email it to you. All you've got to do is send me an email at Ford@ActiveWealth.com that's Ford@ActiveWealth.com and we'll get that report sent right back out to you and you can also just visit us at ActiveWealth.com and click that schedule. Consultation button and we'll give it to you when you come in and meet with us. And we would encourage you to bring your statements and your Social Security statements when when you come in to meet with us so we can really put in an overall retirement plan for you.

Ford Stokes:
We're happy to help you do that. And we're going to talk about smart lifestyle, living within your means and enjoying your retirement. We're also going to talk about smart adjustments, how we can help you stay on track year after year. Also, we've got our inflation demonstration, which talks about egg prices impacting other foods now and also restaurant prices. You can't imagine how many how many things have eggs in them. Right? Different recipes. And then also, we've got a we're bringing back the how to beat bank CDs because I think that's a really important thing to do. Try not to just put your money in bank CDs because you can get more favorable rates. And what we believe is a smarter and safer investment with 100% financial reserve on that product versus a 3 to 10% financial reserve depending on the deposit levels of the bank that you're working with or the credit union you're working with. And then also smart legacy, how to care for those. That you will leave behind. And I think everybody wants to leave an outstanding family legacy. And we're going to help you do that today. And we've got also ten tips for happy retirement. So let's go ahead and play that two minute vignette from Matt McClure with the Retirement.Radio Network.

Producer:
With soaring inflation continuing to wreak havoc on everyday budgets, there's never been a more important time to cut costs. But do you know where to begin? I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife. There is no question costs have been soaring.

Sharon Epperson:
About one third, 34%, say they are worse off financially this year than a year ago. Almost half, 46%, say they've had to cut household spending due to inflation.

Producer:
Cnbc correspondent Sharon Epperson recently reported on a survey that sheds more light on how inflation has been impacting us all. Even those who earn six figures a year.

Sharon Epperson:
These high earners say the first expenses to go are dining out at restaurant, less entertainment outside the home and travel and vacations. More than half also say they'll delay big household purchases.

Producer:
That high inflation has led the Federal Reserve to respond with interest rate hikes. The goal is to increase costs to tamp down demand. Esther George is president of the Kansas City Fed.

Esther George:
Already we've seen the committee's policy actions lead to a very sharp tightening of financial conditions.

Producer:
But it hasn't done enough yet and costs still keep rising. So what should you do? Well, we have a free resource called 23 retirement cost cutters for 2023. It's full of ideas to help you make the most of every penny. Things like take advantage of senior discounts, eliminate unnecessary subscriptions and cut back on clothing expenses.

Sharon Epperson:
Look at your needs and wants, Figure out what's optional and what you can cut out.

Producer:
The last one on the list of 23 retirement cost cutters for 2023 is perhaps the most important. Seek advice from a trusted financial professional. That's the best way to get in depth financial advice and retirement planning that's customized to you and your goals. Just make sure whoever you consult for financial advice has years of experience and credibility you can verify. So do you know the best way to cut costs in 2023? That's a key question to consider as our budgets get stretched to the max with the Retirement.Radio Network powered by a AmeriLife. I'm Matt McClure.

Ford Stokes:
Yeah, I think Matt has done a great job introducing our 23 retirement cost cutters for 2023. And Sam, what I'd like to do is, is really offer it to the folks. If you want to go ahead and get a copy of that report so you don't have to listen to all of the next 23 shows. We do want you to we want you to come on for the next 23 weeks and listen to us for sure. But if you want that 23 retirement cost cutters for 2023, all you've got to do is send me an email at Ford@ActiveWealth.com that's Ford@ActiveWealth.com and we'll get an email back out to you No problem there and send you that free report it's worth you getting it's a great read And now let's go ahead and give you our financial wisdom quote of the week.

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

Producer:
All right. This week's Quote of the week comes to us from Dave Ramsey. And Dave said, Financial peace isn't the acquisition of stuff. It's learning to live on less than you make so you can give money back and have money to invest. You can't win until you do this.

Ford Stokes:
Yeah, I think that's right. You know, if you're constantly worried about, oh, my gosh, how are we going to. Meet the creditors. I mean, you know, if you buy a car, it's going to be a. Decreasing asset, it's going to lose its value over time. If you're investing in the country club and you're buying lots of Peter Miller shirts, which I tend to do. You know, eventually there's Peter Miller shirts are going to have zero value and. And you've got to be careful about how much you're spending. That's why so many people on fixed income, you see them not spending a lot of money on clothes. You really need to do everything you can to first and that when you're in that red zone of retirement, specifically the first five years before you retire and then the five years after. If you're in that red zone and we're going to talk about some things, but you need to make sure that you've got your debt paid off as an example. But let's do everything we can to get to that financial peace zone and have a good amount of money. Have a great retirement income plan and really enjoy our retirement and really have a plan during the decumulation phase of retirement. So also you can leave a smart family legacy by having a smart lifestyle, first and foremost. So when we come back from the break. We're going to talk about smart lifestyle first, and we're going to dive into all the things that make up a smart lifestyle that could really help you plan for successful retirement. And then we'll also talk about some smart adjustments as well. We may have our inflation demonstration in segment two as well. So thanks so much for being with us here on the Active Wealth Show. You're listening to all show right here on AM 920. The Answer, Be right back to learn about how you can build a smart retirement lifestyle. See.

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 to the Active Wealth Show Activators. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis right here on the board with us is our executive producer. And we're talking about how to build a smart lifestyle, how to build a smart legacy and how to make smart adjustments during your retirement years, specifically when you're starting in the last five years before retirement and there's no time like the present. And let's talk about smart lifestyle for a second. And our goal is to help you live the retirement you've worked so hard for. I mean, it was also hard for you to make the money, but it was probably even harder for you to save it. Let's get together and have a conversation about what you want for your retirement. You want we want to understand what is your retirement look like? What is retirement success look like to you? Also, we want to do everything we can to seek to understand before we seek to be understood so we can build that smart retirement plan for you. So you can fund it, so you can fund that lifestyle. Remember, you'll travel more in your 60s and 70s what Tom Hegner calls the go go years of retirement. And then you have the slow go years in your late 70s and 80s and then the no go years. If you're Fortunate enough and blessed enough to live into your 90s, you're probably sticking close to home and sticking close to doctors and hospitals.

Ford Stokes:
You don't want to outlive your retirement funds. You want your funds to outlive you. So you've got to build that smart retirement plan and that smart lifestyle. The happiest people in retirement are those that are living within their means, and they have income sources they can count on. And we want to help you do that. We can help you navigate Social Security pensions from your employer. If you want to take a lump sum or if you want to take the pension. Here's a hint Pensions are usually funded with a product called a SPIA, a single premium immediate annuity. I would encourage you to avoid those because they're really good at paying your money back, but they're not really good at growing your money because they're not linked to an index to a market index. So you don't have market like gains. But with a fixed indexed annuity, you can and you can also get a 10 to 20% immediate bonus. If you call our office today at (770) 685-1777. Diane and our team are standing by ready to take your calls and we can help you navigate all of this stuff. We can also help you build a personal pension with a fixed indexed annuity and or life insurance. We can also help you understand how to take advantage of the only two tax free investments out there, which is life insurance and Roth IRAs.

Ford Stokes:
We will help you with a Roth IRA as well. Believe it or not, a Roth ladder conversion feeds into that lifestyle because if you're taking money out of your IRA, but it's a Roth IRA and therefore you don't have to pay any more taxes on the withdrawals from that Roth IRA, that's a much different lifestyle than if you have to pay 15 to 22% plus 5.75% in Georgia, state income taxes on the money that you withdraw from your IRA. If you have all of your money sitting in an IRA, you need to call us. You need to pick up the phone and give us a call at (770) 685-1777. And we're happy to help you build that financial plan. We're going to give you a free portfolio analysis. That's number one. We're going to give you a Social Security maximization report. That's number two. We're going to give you a financial plan to your 95th birthday with your current investment plan has nothing to do with us. We're just going to let you know what you look like right now with your current investment plan. Number four is we're going to give you a financial plan to your 95th birthday with our recommended portfolios that also includes a retirement income plan inside of that.

Ford Stokes:
And then number five is we're going to give you a financial plan to your 95th birthday that includes our recommended portfolios, a retirement income plan and a Roth ladder conversion plan. So you can delete the IRS from being your partner in retirement. If you're interested in that, I would encourage you to visit ActiveWealth.com that's ActiveWealth.com and click that schedule a consultation button in the upper right corner. We love talk of the AM 920 The Answer listeners. We love working with conservative folks. We love working with folks that are trying to build for their family legacy as well. And we're happy to do that. And now, Sam, I'm going to bring you back in. I want to tell you, I want to get your reaction to this because I want to talk about a story. So we went to a 70th birthday party up at Cavender Creek Winery. And I don't drink. I never have. But my wife drinks enough wine for the both of us, just tongue in cheek. She's great, but she does like to drink red wine. She's she's a big Cabernet Sauvignon fan. She's a big cab fan. And we were up at Cavendar Creek with at the 70th birthday party for D, who's a friend of ours, and her husband, George. And. And they were just fantastic.

Ford Stokes:
And they had some friends there. They had some friends from Birmingham. One guy used to be an executive with Vulcan Materials and I asked him, he's been retired for 16 years. And I said, Let me ask you, what's been your favorite part of retirement so far? And what he said was. We had a lake house and I just sold it a year ago and because it was just too much money to pass up, but we and he was he's now in his 80s and early 80s and he just he said it was a lot of work to keep up but we enjoyed you know 15 years of the family coming to visit with us and we didn't have to go to them. We'd have to work hard. We didn't have to beg for people to come see us and spend time with us and. That made all the difference. I've been able to enjoy my grandkids. I've been able to enjoy my kids. And they were on Lake Martin in Alabama. They also live in Birmingham. And he just said it just made all the difference in the world for us. And I would just say that from a smart retirement lifestyle perspective, I'd say I'm want to get your thoughts on this. If you can get on the water instead of just being in the same old subdivision that you were in that's now, you know, grown up around you, the the trees and shrubs have grown up, but also the neighborhood may have changed a little bit.

Ford Stokes:
And you you may just, you know, the kids there's no reason for them to go back to see the same backyard they played in. And they're not taking their grandkids just to go see you in the subdivision. I would encourage you to try to downsize, reduce your costs, get rid of a mortgage, and then try to get on the water somewhere. You can do that, believe it or not, and and reduce your money and also peel off maybe an extra 100 or 200 grand from the equity from the sale of your home, the proceeds from the sale of your home and put it into an investment account. And we can help you with that. But I would say downsizing, getting rid of a mortgage, deleting the mortgage, and then also getting on the road to a Roth ladder conversion so you can delete the IRS as well. So you can delete the mortgage company and the IRS from your retirement. That would be a pretty good idea. But also getting a place where people can. That where all the your family members are going to want to come visit you and just your thoughts on that and trying to get on the water there, Sam.

Producer:
Yeah, absolutely. Well, the great part about living here in Atlanta and in the Southeast is there's a lot of shoreline out there. So from all the lakes that we have just here, right around the Atlanta area and on up to North Georgia and some Great Lakes as you get up into into North and South Carolina. But we've also got all that ocean shoreline as well. So there are a lot of different options out there. Having that place where the family can come congregate on Easter or anniversaries or birthday parties like the one you were at last Sunday. You know, just what a special thing for your family. And, you know, if you're ever out on vacation, maybe Irving and seeing this great country, you can offer up the lake house to to those family members to come in and stay and make their own memories. So I think it's a great idea. I was Fordunate enough to grow up living at a lake, and it was one of the best parts of my childhood. And I know the grandkids would feel the same way.

Ford Stokes:
I just really try to encourage. I overstepped my bounds a little bit sometimes as a financial adviser, and I try to just encourage the people that are retiring to try to get in a spot where your kids will come see you. There's people that are that I saw a billionaire, he said. The definition of success. Is being so successful or being such a good parent that your kids want to hang out with you later in life. And I thought that was a remarkable statement. And so just something to think through and also build it where it's an unfair advantage, where you get a disproportionate amount of time and also so you win the grandparent race, right? I mean, you're trying to the grandparent competition when you're going up against the other in-laws. Right. It's probably a pretty good idea to to get on the water somewhere where you can really attract all the kids and grandkids to come see you. We just want to talk about smart adjustments real quick. You should have your portfolio and your retirement plan reviewed annually so you can ensure that you're on track to meet your goals and so that your money outlives you.

Ford Stokes:
And we want to do everything we can to help you. Protect and grow your wealth. All you've got to do is visit us at ActiveWealth.com. Click that schedule a consultation button in the upper right corner and we'll get you started on the right road. It's a 1000 hundred dollars value that will give you absolutely at no cost to you absolutely free because we do that on the front end so you can make an informed financial decision about what to do with your retirement dollars, your hard earned retirement nest egg. We're going to make sure that we take care of those hard earned and hard saved dollars that, you know, they're precious. And we want to do a great job to help you out there. So when we come back from the break, we're going to talk more about how you can make smart adjustments to your retirement plan even before you retire. You listen to Active Wealth Show right here on AM 920. The Answer, come right back. We're going to talk more about smart adjustments for your retirement plan.

Producer:
So you know where you are now and where you want to be in retirement. So how do you plan to get there? I'm Matt McClure with the Retirement.Radio Network Powered by AmeriLife.

Jack Nicholson:
Do you have any other questions for me, Counselor?

Producer:
There are a lot of questions to ask yourself when you start your retirement plan. Questions like When should I retire? How much money will I need? When should I claim Social Security? What about health care costs and taxes? In retirement, this complicated puzzle means you're probably going to need some help coming up with a smart retirement plan.

Ford Stokes:
If you want to retire successfully, you really need to plan early. You know, Inspector, you expect and get prepared. Putting a plan in place now while you're still working is a great idea.

Producer:
Ford Stokes is founder and president of Active Wealth Management. Once you find a financial professional you want to work with, they can help you Answer all the questions you may have.

Ford Stokes:
Back to what Warren Buffett said. If you don't find a way to make money while you sleep, you're going to work until you die. So we need to do everything we can to figure out a way to make money while we're sleeping. We talk about this human capital versus actual capital. When you're young, you have a lot of human capital, you've got a lot of left, a lot of room left, a lot of capital left in your career. Right. But at the same time, a lot of people that are older let's say you're 65, 70 years old, you don't have a lot of human capital left, but you should have a lot of capital that is making money while you sleep. And if you don't, then you didn't make the right decisions.

Producer:
There are also some retirement costs you may not have considered yet. Long term care, for example, did you know it's not covered by Medicare? What about home renovations? If you decide to stay in your home instead of moving into a facility, your home might need some updates to ensure you're safe and comFordable. And those are just the tip of the iceberg. So do you have a fiduciary financial advisor or professional to help you wade through the complicated retirement planning process? That is a key question to consider. If you want to make the most of your hard earned money with the Retirement.Radio Network Powered by AmeriLife, I'm Matt McClure.

Producer:
Remember all of Ford's listeners receive a free financial consultation just for listening to the show. Visit ActiveWealth.com to learn more and schedule an appointment. Thanks for listening to the Active Wealth Show and subscribing wherever you listen to podcasts.

Ford Stokes:
And welcome back Activators The Active Wealth Show. I'm Ford Stokes, your chief financial advisor got Sam Davis here, our executive producer. And we're talking about smart adjustments to your plan. And you should have your portfolio and your retirement plan reviewed annually. Also. I kind of want to. Talk to the listeners here. I want to talk directly to you. If you haven't heard from your advisor lately, or they're telling you just to hang in there despite negative returns in 2022, you owe it to yourself to sit down with us and see what your plan could be missing. We provide consultations at no cost to you. Our listeners. We want to do everything we can to take care of our activators to our listeners, our loyal listeners. Also, if you've been listening, we've had like, I don't know, 4 or 5 calls in the last week. From people that have listened to our show for over two years. Like it is remarkable. That. They listen to our show for two years but never called. And we want to invite everybody. If you're a long time listener, we'd love to hear from you. All you got to do is just also just drop me a line. You can just send me an email at Forward Active World.com. I'll send you that. 23. Retirement cost cutters for 2023. I'll send you that report. And it's a quick easy read. You can skim it pretty quickly, but there's some good nuggets in there. But we'd love to hear from you. So go ahead and just reach out to us. You can also call us at (770) 685-1777. I'd love to just catch up with you. And also you can always follow us on Twitter at Active Wealth. M The M stands for management. And also you can check out our. Our Facebook page at Active Wealth.

Ford Stokes:
Now, when you're reviewing your assets regularly, it allows you to know when you should rebalance over time. The performance of different assets can cause the portfolio's allocation to drift away from how it was originally set. Rebalancing helps maintain your desired level of diversification and risk. Additionally, rebalancing can help to keep emotions out of investment decisions as it requires periodically buying assets that have decreased in value and selling assets that have increased in value. Want to help you take the emotion and the stress out of financial planning so you can live a stress free retirement. That's what smart adjustment is. We want to make sure we can adjust so that you can just enjoy your retirement. One of the things we like to do is we like to implement a combination of things. So one is we'll try to implement a strategic allocation that's going to be an allocation that we're going to invest into certain portfolios, specifically ETFs, so we can keep the fees down and we're going to rebalance that part of your portfolio on a yearly basis. Then we're going to take another portion of your assets. We're going to invest into a tactical asset allocation management model. And that's. Going to be something we're going to rebalance probably on a monthly.

Ford Stokes:
Basis. Or maybe even more frequently. Sometimes it's monthly, sometimes it's every couple of months, sometimes it's quarterly. But we're going to have a more active lifestyle to it and a more active management to it, if you will. And then we're also going to. Insert some bond replacement options. Like fixed indexed annuities or indexed universal life policies. We're going to do that to. And we're going to do everything we can. To help you protect and grow your wealth, but also specifically take risk off the table. For that precious income sources, those precious income sources, if you will, that you need. And we're also going to help you get more tax efficient with a Roth ladder conversion plan and or a life insurance plan. So we're happy to help you with all of that. And that's part of investing the right way. And this is some of the stuff you can experience when you visit us at ActiveWealth.com. Also, we're going to help you. Get introduced to somebody that can help you with Medicare planning. We're also going to help you with. Planning for your estate planning so that you can build that smart legacy as well.

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

Ford Stokes:
Right now, we kind of want to go into our inflation demonstration, Sam, I think. Talking about how high egg prices are impacting other foods.

Producer:
Yeah, absolutely. So we talked about the price of eggs 3 or 4 weeks ago on the Active Wealth Show. But, you know, seeing as eggs are a big additive and a major ingredient and a lot of other foods, we're starting to see it affect other items at the grocery store. So things like mayonnaise, two baked goods, egg noodles, certain kinds of bread, You know, think about all those fried foods that we enjoyed and a lot of us enjoyed last weekend during the Super Bowl that those battered meats and vegetables also contained eggs, dressings, some of your favorite condiments and soups. So food prices continue to rise for hard working Americans. We've seen egg prices increase over 60% over the last year, and eating at home overall has gone up 12% over the last year. So, you know, we're always on the lookout for where inflation is hitting pre-retirees and retirees the hardest. And I'm sure those who have been in the grocery store have seen the egg prices.

Ford Stokes:
Yeah, I noticed my wife had half dozen instead of full dozen. Cartons. And I was like, Is this hitting us this hard? And and she's like, It's $14 for it for a dozen. And I just didn't need the full. I was like, okay.

Producer:
I get it. You know, it's it's funny, I was talking to one of my friends, Ford, and he has a hunting dog and he likes to eat eggs in the morning. And he's used to, you know, cracking an egg for the dog over the dog's food and his food bowl. But, you know, he told me he he thought about it for a second because he seen the price of eggs in the grocery store. And he's like, hey, am I going to give my dog one of these eggs? And of course, he went on and he couldn't resist because he loves his dog so much. But, you know, those egg prices don't make you think.

Ford Stokes:
Yeah, that's funny. That's really good stuff. That's awesome. Yeah, You got to have a plan for it. You really got to have a plan for what's going on with inflation. You've got to make sure you stay invested too, so you can hopefully grow and also grow your income. Have a retirement income plan during an inflationary period. Just having one of those is so valuable. And if you don't have a retirement income plan, I would encourage you to visit ActiveWealth.com and click that schedule a consultation button. We're happy to work with you. So Sam, let's go ahead and. Dive into our Beating the Bank CD segment.

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

Ford Stokes:
So rising interest rates present opportunities for conservative investors. As interest rates continue to rise, so do the rates for bank CDs. But we encourage you to consider an alternative if you're interested in protecting and growing your safe money. Yes, CD rates are good right now, especially if you're not buying it from a bricks and mortar bank. If you're going to like Ally Bank or others. But many meager rates are actually more favorable. A Meiga stands for multi year guaranteed annuity. Meiga is what is the acronym for it? It's a multi year guaranteed annuity. This can be particularly beneficial for those looking for higher returns without taking on too much risk. Please don't settle for low bank CDs. I'm just begging you. And here's how those work. So if you've got a bank CD. Each year you're going to get a 1099 on the interest that's generated from the bank CD. But with a MIGA, you don't get a 1099 until you withdraw it or you surrender the policy or you end the policy and take the cash back. So you're more tax efficient because your money is growing tax deferred. I mean, even in a bank CD, if you don't take any of the interest you're still getting. You don't take the cash out of the interest.

Ford Stokes:
You're still getting a 1099 for that. And you've got to pay taxes on that money without getting the cash. Mike is allowed for tax deferred growth. The earnings and gains from investing in Magas are not subject to taxes until the funds are withdrawn, allowing for greater potential growth because it's compounded. It's its triple compounding interest because you've got interest on the principal interest on the gains and interest on the taxes, you would have paid all of that together. It's something that. Compounded interest in triple compounding interest is something that Mark Twain called the Eighth Wonder of the World. You can also receive guaranteed returns with Midas as Midas. Provide a guaranteed return on your investment no matter what the market does. It's just a contractual interest rate. And again, I want to remind everybody. A multiyear guaranteed annuity carries with it a 100% financial reserve requirement because annuities and life insurance, all life insurance products and annuity is a life insurance product, by the way. They required, also monitored and managed by the state or by the states, plural. It is not managed by the federal government. And so omegas and all annuities and all life insurance products carry with them a 100% financial reserve requirement by the states.

Ford Stokes:
And again, you're going to receive guaranteed returns as Mayas provide a guaranteed return on your investment no matter what the market does. Like I just said, this can provide peace of mind for investors who are seeking more predictable returns on their investments. Also, Omegas are generally going to be paying higher rates and more attractive rates than bank CDs. You just have to call us to find out. Go ahead and call us at (770) 685-1777 against (770) 685-1777. Or visit activewear.com. Please understand that most bank CDs have a financial reserve requirement of between 3 and 10% while guys have a 100% financial reserve requirement. Would you feel safer knowing that a 100% of your principal is backed up in reserves by law versus just 3 to 10% with a bank CD? If you're not dealing with fractional lending. What good is a safe investment if your money isn't as safe as it can be? And we come back from the break, we're going to talk about Smart legacy and segment four. Be sure to come back and learn how you can build that smart legacy and that remarkable legacy. For you and your kids. You're listening to Active Wealth Show right here on AM 980. The Answer.

Charlie Kirk:
Charlie Kirk here to tell you about Ford Stokes, founder and CEO of Active Wealth Management. Right now, for a limited time, Active Wealth is offering a financial consultation to AM 980. The Answer listeners. Absolutely free. That's a 15 hundred dollars value at no cost to you. Active Wealth will show you the hidden fees you're paying. How to potentially save six figures by deleting taxes on your IRA during retirement Visit ActiveWealth.com Today.

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

Ford Stokes:
And welcome back Activators the Active Wealth Show. I'm Ford Stokes, your chief financial advisor. We've got a packed segment here so I want to talk about planning for the end of your life can often be difficult to even discuss. Your family doesn't want to think about life without you. And you may choose not to make a plan to avoid hard conversations. The reality is that making a plan for the end of your life actually protects your family. And if you want to build a remarkable legacy and also be able to get a check to your loved ones so they don't have to debt finance your funeral. You can get a beneficiary liquidity plan through us. All you got to do is pick up the phone and give us a call at (770) 685-1777. It takes about 21 days to get a death certificate in the state of Georgia and that you'll be in the ground or be cremated well before that. 21 days comes about when you get the death certificate, which is usually the time that banks require, because they're going to make sure that, hey, I got to have a death certificate before we release these funds to the heirs and all that stuff, even to the executor of the estate. So the benefits of estate and legacy planning ensure your assets are passed on to loved ones in a tax efficient manner by setting up trusts and wills. And retirees can avoid the hefty taxes associated with distributing assets after death.

Ford Stokes:
You can also ensure that assets are distributed according to your wishes. This eliminates the possibility of family disputes over who should receive what asset. And third, it also provides for your loved ones in the event of your death. This can provide peace of mind knowing that their family, knowing that your family will be taken care of even after you are gone. Wills versus trusts. You know, if you've got that million to $2 million, I would encourage you to to just get a will and make it as fee efficient as possible. A will is a legal document that outlines how a person's assets should be divided upon their death. It also outlines who should be the executor of their estate and who should receive any assets. A trust is an arrangement that allows a person to transfer their assets to a trustee during their lifetime. The trustee is then responsible for managing the assets and distributing them to beneficiaries named in the trust. Our Two Big Tips for Planning Your Smart legacy or a remarkable legacy, if you will. Number one is have a will. Don't leave your legacy in the hands of the courts and the state. Make your last will clear so your family doesn't have to bear any additional burden after you pass away. Number two is have a Roth IRA. Funds within a Roth will pass to your beneficiaries tax free.

Ford Stokes:
They will have to take the funds over a ten year period. But any growth within the Roth is tax free as well. Don't let your family inherit a tax bomb with a traditional inherited IRA. I want to play chapter two of my book, Annuity 360. I think you're going to find it really educational. And also why annuities are so attractive these days and why more and more people are buying annuities for 20 to 40% of their assets so they can get that retirement income that they can never outlive and also reduce their market risk. And so they can really enjoy retirement and also live longer. We're finding there are studies done that where people are living longer when they invest in annuities because they're trying to get to the next paycheck and things like that. But also they've just got more peace of mind because they're not having to watch the stock ticker every day. Chapter two Why Annuity and Life Insurance Companies are Competing for Baby boomer dollars. Big idea annuities counter one of a retirees 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've 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 generation 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.

Ford Stokes:
Retiree gives an insurance company a lump sum of money in exchange for an annual income that will last throughout their lifespan. 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 comFordably throughout their golden years. Only 25% of baby boomers think they have enough money to retire comFordably. 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 Fordune 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. And now for the final countdown.

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

Ford Stokes:
The final count on this week's show, we talked about how to build a smart lifestyle for retirement, how to live within your means and have more peace of mind. We also talked about how to work in some smart adjustments to your retirement plan. And then also we talked about how to build a smart legacy and how to build a remarkable legacy for your kids and grandkids so that, you know, they'll remember you. I would encourage everybody. To do everything you can to get a plan. Go ahead and visit ActiveWealth.com Schedule a consultation and we'll look forward to working with you and helping you build that smart retirement plan. Have a great week, everybody.

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.

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.

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