How to Start a Personal Pension & Retire with Confidence

6.21.24: Audio automatically transcribed by Sonix

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

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

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

Speaker3:
Welcome to your retirement results. Result drivers. I'm Ford stokes, your chief financial advisor. I've got mister Sam Davis here with me. He's our senior financial advisor. Fresh off doing a seminar over at Ruth's Chris and over in Alpharetta, Georgia. And it was a packed house. And shout out to all the people that came. And, um, he's also our weekend ambassador. Say hello to everybody, Mister Sam.

Speaker4:
Welcome to the weekend result drivers. Welcome back. It is summer here in the south. We haven't had rain for some time but yeah Ford it is. It is great coming off of that event. Seen so many listeners and result drivers out there looking to learn everything they can to improve their future retirement, and we look forward to helping all those who give us a call and come in to see us.

Speaker3:
Absolutely. It's just always great to be able to hang out with a result. Drivers. I want to give a shout out to Andrew out of Hampton, Georgia. He is a long time listener and um, I talked to him earlier this week. He continues to diversify, um, his portfolio and the income portion of his portfolio. And he's just a really smart guy. He works with federal government. I'm not going to talk about what part of the federal government, but let's just say he's in audit but doesn't work with the IRS. And I'm just a huge fan of Mr. Andrew. And I just want to say thanks for listening, Andrew. Thanks for being a client of Active Wealth Management. Thanks for being a result driver. We sincerely appreciate you. And, um, he just got a really neat life and just a great guy. And, um, just shout out to Andrew out of Hampton, Georgia. And we've got two unique problem solvers later in the show. I think you're going to want to hear this on today's show. We're going to talk about how June is Annuity Awareness Month and how to start your own personal pension and how to receive income for the rest of your life. We're also going to talk about what is your Social Security strategy? Uh, we help Listerners make better financial decisions with Social Security. Also, how can you maximize your Social Security income benefit? And also, we've got a really great inflation demonstration talking about how rising prices affect your retirement and what you can do about it. And we've also got our retiree of the week. Um, have you heard of The Iron Nun? Stay tuned and you'll get to learn all about her. So, Sam, um, let's go ahead and get started.

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

Speaker4:
All right. This week's financial wisdom quote of the week comes to us from Steven Levitt. And Steven Levitt is a renowned economist. He co-authored Freakonomics, which you may have seen before on a lot of bookshelves. I would definitely recommend picking that one up if you're at all interested in economics, finance, business. It's a really interesting, uh, book written by Steven Levitt. And Levitt once said, people who buy annuities, it turns out, live longer than people who don't. And not because the people who buy annuities are healthier. To start with, the evidence suggests that an annuity steady payout provides a little extra incentive to keep chugging along. And I just thought that was so interesting. Ford, we've actually talked about that in the past because Tom Hegna, uh, talks about that same point how when you know that you're going to have those paychecks and play checks, you're not worried because you have a retirement plan that meets your income needs. It gives you that extra boost every day. And you keep moving. You keep moving forward. And it's a great tool to start building a happy retirement.

Speaker3:
Yeah. It also just also gives you a less stressful deal where you know that paychecks coming in every month, uh, we talk about on the show here a few times to, um, always ask the questions. Kind of a fun joke, like, why are farmers hats bent in on the sides? It's because when they're looking in the mailbox for the subsidy check, and if you've got mailbox money coming in every single month through a personal pension, you are going to live longer. You're going to live to that next check. You're going to live and really enjoy or try to enjoy life, whatever your quality of life is month over month. And that's just proven. I mean, it goes all the way back to Jane Austen's sense and sensibilities in the 1800s, when she talked about annuities being no joke and that people will live a very long time if they're receiving an annuity. Um, that's a book that a lot of people read in high school back in the day. And a lot of ladies love that book. As well. And, you know, that's all the way back to the 1800s. This has been proven over time. I mean, Beethoven had an annuity from the city of Austria, uh, you know, so he would live there and, uh, and they even tried to break it. And he won his case, and they didn't break the annuity.

Speaker3:
They had to keep paying him out. That goes all the way back to his time. So, um, you've also had other famous people who've owned annuities, babe Ruth, he put 50% of his salary aside. He invested in fixed annuities, and he was able to live on it the last seven years of his life after he retired because of health reasons from baseball. And he he lived what is the equivalent of over $250,000 today? He lived on like $17,900 a year in annuity payments. That was during the Great Depression. That was in 1929, um, when he was investing in annuities. And he retired, I think, in 20. I mean, he retired in like just shortly after that and was able to live another seven years and enjoyed his retirement even though he had health problems, uh, living on annuities didn't have to worry about money. So it was a big deal too. So we're going to talk more about that. Listen, we do a lot of tactical asset allocation and tactical management of portfolios. We're not just an annuity shop by any stretch of the imagination, but we do like to invest in new 60 over 40 plans for our clients. So 60% stocks and ETFs and managed portfolios and 40% in fixed indexed annuities so that we can protect that income portion of your portfolio. If you haven't looked at your portfolio thinking, well, do I have an income portion of my portfolio or not, you probably ought to reach out and give us a call at 1-888-814-0304.

Speaker3:
That's (888) 814-0304. Shout out to the folks in Huntsville, Alabama that are listening to us. Also, shout out to, um, the great folks in Atlanta to listen to us on Am nine, to one of the answers they have over the last five years. And we're looking to expand into the panhandle of Florida. Many of you go down to 30 A for spring break, fall break, summer break, and, uh, go to try to get away. We're going to be on the radio, um, down there in Fort Walton, Panama City Beach area, and we'll cover Rosemary and and all in watercolor and, and seaside and all the great, uh, resorts down there. Um, our radio coverage will cover that. Also, we're super proud to be airing our retirement results television show in Huntsville and also in Panama City and Columbus, Georgia right now. And, um, really appreciate all the people that have reached out to us from those cities and those states. Uh, we're able to help them. We're licensed and registered in those states. And so we're super excited about that as well. Before we kind of get done with this segment, Sam, tell them about the next seminar you've got at Ruth, Chris on Haines Bridge in Alpharetta.

Speaker4:
Yeah, we've got one coming up next Tuesday. That is June 25th, June 25th at the Ruth's Chris on Haines Bridge Road and Alpharetta. Anybody who's interested in a bit of lunch and learn learning how you you can reduce future taxes, how you can build a smart retirement plan. It's really a lot of the things we talk about on our show each and every week, but we get the opportunity to meet with people directly in person and address some of their questions. And Ford, it's great whenever we see the result drivers out there coming together, ready to improve their retirements and making sure that they're getting the most out of what they've worked so hard for. And that's what we look to help them do. So if you're interested, definitely give us a call. And seats are limited, but we'd like to get you on that list if you're interested.

Speaker3:
Yeah, we've got I think we're about three quarters away full right now, but it's a big room. It'll seat like 60 people. You go ahead and give us a call at 188881403048888140304 Deborah, Diana and the team are standing by to take your call. All you've got to do is give us a call. It's just toll free (888) 814-0304. You can also visit us at retirement results.com/plan. That's retirement results. Dot com forward slash plan will get you into that seminar. It's also really a great menu as well. Um they they put our logo on the menu. Ruth's Chris did a great job taking care of us. We appreciated that. Um, but they had fantastic, you know, filet. They had, uh, salmon that you had Sam uh, they had great salad. Their, their, uh, honey mustard vinaigrette was unbelievable. And what else is really neat? And I it was tougher to do that during the lunch day, I mean during the workday but had that great moose, um, recipe and that dessert with, uh, with the Oreo crumble crust. That was something else. Um, and we got to take a couple of those home to our wives. That was really good stuff. So they appreciated that. So I would encourage you if you want to learn. It's a it's just a like a 50 minute seminar. It's called Retire Well. And it also helps you grow assets and reduce taxes for your retirement and also generate income for your retirement. I'd encourage you to reach out to us at (888) 814-0304. That's (888) 814-0304. If you've been a long time listener or a long time result driver, even all the way back to the Active Wealth show and you've been an activator, I would encourage you to go ahead and reach out to us at (888) 814-0304. When we come back, we've got two great problem solvers you're going to want to hear. Come right back and listen to these two incredibly informative problem solvers.

Speaker2:
We. Tournament results. We'll be right back to learn more and schedule your complimentary retirement consultation, visit retirement Results.com or call us at (770) 685-1777. You're listening to retirement results. And now back to the show.

Speaker3:
We promise to have two informative problem solvers coming right out of the break, and we're going to give them to you right now.

Speaker2:
It's time for this week's Problem Solver.

Speaker3:
Both of these problem solvers are folks that have a fairly high net worth. They're making really good decisions with their money, but they they've been able to fix some things. So Kyle and Jennifer, we've also changed the names to protect the innocent here. So Kyle and Jennifer are both the together. They're worth about $4.25 million. Liquid net worth. Um, their house, their two houses are separate. They've got a they've got $450,000 in a variable annuity that comes with 4.76% in annual fees. And they also saw market losses in 2022. It rebounded a little bit in 2023. But they're down. They're down since they've owned this variable annuity, and it's approaching to getting out of the surrender period as well. Um, they called us and they got an annuity x ray. We do actually talk about and offer an annuity x ray on this. Radio show. Um, probably not often enough. So we need to go ahead and make sure that we're doing that every week. Sam. But. I'll just say we offer an annuity x ray. So if you have an annuity that you've had let's say you've got an Allianz annuity or you've got a you know this from the Allianz Insurance Company or. A lot of people have those in the 70s and 80s and 90s, and in the 2000. In the 20 tens. Um, and if you've got an annuity that you just aren't sure about, or if you've got a variable annuity and you're positive you're paying too much in fees and it's not performing like you think it should.

Speaker3:
Or you've got some fixed indexed annuities over the last several years that are underperforming because the volatility indexes didn't grow because of the bond situation. We've seen that in some annuities. We've analyzed that even some fixed indexed annuities haven't done well enough because they're in the wrong allocation mix with long end linked index mix I would should say. And. We're happy to help you. One we can help you reallocate. If you're your current advisor or the one that sold it to you in the past, is not communicating with you anymore. We're happy to help you do that. We send out monthly performance reports to all of our clients on their managed portfolios, and then we also do annual reviews for every single annuity out there. All you got to do is reach out to us at (888) 814-0304. But Colin, Jennifer, they're moving their $450,000. They've got it's, you know, give or take. It's approximately a $450,000 in that variable annuity. They're going to move that to the nationwide peak ten. Here's what they get. They're getting 20% immediate bonus in the income account. They want to turn on the income in year four from now. Um, and they're going to have two different crediting periods, um, because their two year protection periods on this, there's 8% guaranteed simple interest on their premium.

Speaker3:
The $450,000 are putting in each and every year. So they're getting 8% times four. So they're getting 32% guaranteed growth in their money because they're going to wait to take the withdrawals. But they're also getting 340%. As an or not a not an and but they've got the opportunity for that index to do better than the 8%. And so they would get the higher of the two 340% of how the BNP Paribas Global H factor index performs. We've had clients that have generated 6.27% times 3.3 or 3 point 4 or 3.5, depending on when they bought that annuity two years ago, and they're seeing 18 to 22% growth in two years on their money, and their money was not at risk in the market. That's a pretty attractive situation. It's got a 1% fee each year, but they're giving you a free 20% immediate income bonus because they're using the fee to kind of claw back that bonus. That's a pretty big deal. That's a pretty good situation versus paying 4.76% and their principals at risk. And they're like, you know, we've got to get out of this annuity. I don't want to risk our principal anymore. The fees are crazy. I don't know why I'm paying this much in fees, these variable annuities.

Speaker3:
I had to explain to them that the variable annuity is basically a mutual fund wrapped in to an annuity chassis. So you got fees upon fees. You want to always avoid a variable annuity, and you want to consider investing into a fixed indexed annuity. I want to avoid a fixed annuity as well because that's just going to pay you too little. We also have some migas. We have a multiyear guaranteed annuity that is paying 6% over the next three years. Each year compounded interest, and you don't have to pay taxes on that money. So that's kind of a big deal to you. Pay taxes on the money. Only when you surrender the policy. You don't pay for it each year that you get the index credited because you're leaving the money in the policy. So Kyle and Jennifer are super excited about getting their $450,000 moved into the nationwide peek ten annuity. And they're getting. 20% growth, they're going to get 90 grand going into their income account. Day one their income account is worth. Get this, folks. $540,000 day one. And also their payout ratio and factor goes up each year, um, as they age. But it also goes up every two years as the interest is credited and it goes up. And then if they're waiting to take withdrawals, it goes up 8% a year.

Speaker3:
Every year. On their principle and their account value, and therefore the amount of withdrawal that they can take is higher as well. So. If you've got questions about what you need to do with the retirement income portion of your portfolio, I would encourage you to reach out to us at (888) 814-0304. That's (888) 814-0304. Or try to reach out to us at retirement results comm. You can click that schedule a consultation button in the upper right corner. Or you can also just visit retirement results.com/plan. That's retirement results. Com forward slash plan. Also if you want to check us out and check out our overall corporate page, you can check us out at Active Wealth Comm. That's Active Wealth Comm as well. But a lot of people really like going to that retirement results.com/plan. So they can kind of get started and put their information in. And we can get started on giving them their free financial consultation and their free annuity x ray at no cost to them. And it is a $1,500 value. When we give you the Social Security maximization report, we give you the retirement income gap analysis. We give you a financial plan to your 95th birthday with your current plan. That has nothing to do with us. So that way you get a base level to understand the expenses you're paying and the fees you're paying, and also the risk you're taking and the correlation of your assets as well.

Speaker3:
So how much do your assets move with each other? When the market goes up, the market goes down. And then we also give you a financial plan to your 95th birthday with our recommended portfolios or recommended allocation mix. And then also with. A strategic Roth ladder conversion plan. All of that. I'm almost out of breath here, Sam. All of that is literally a $1,500 value. We're giving it to our result drivers absolutely for free because we appreciate you result drivers. Thanks for making us the number one listen to radio show on Am 920. The answer on the weekends. That's a big deal. We just sincerely appreciate you. Also, thanks again to all of our result drivers in Huntsville that are listening to us. Uh, you guys, we haven't been on the radio all that long, a little bit over a month in Huntsville and appreciate all the calls. And that's why we got the toll free number to make sure you can reach out to us. So again, feel free to reach out to us at (888) 814-0304. And we love going over Huntsville. And we've got our office over there near the Redstone Arsenal. It is fantastic to be able to go and visit with people in Huntsville. So thanks for that. And then. This next one, I'm going to go ahead and give it to you quick.

Speaker3:
So these folks are worth over $5 million. Matt and Judy. Again, we change the names to protect the innocent. They have a $500,000 annuity that really hasn't moved in like four years, that saw no movement in 2020, no real movement in 2022. And, um, and they're hopeful they're going to get some growth back, um, and their anniversary date in August, but they're getting ready to move their money over to an accumulation product because they're worth 5 million and they don't need the income. They just wanted to diversify their accumulation allocation and go to a different type of product. They didn't want to be in the market. They they wanted to take part of their assets and say, hey, you know what? Let's just take 10% and let's make it safe. They're going to move it to a North American product, and they're going to get a 25% immediate account value bonus day one. And that's going to make up the differences on any surrender charges. So this one's close to on the way to halfway through their surrender period that they've got. And they're super excited to move it. They're they're really excited about the new volatility index from Barclays. That's got a 12% volatility index. So that if so that way the stocks get a chance to run and work harder and longer.

Speaker3:
Um maybe on other shows. We'll go ahead and describe what the difference between a 6% and a 12% volatility index. But you're going to want the higher, um, because you want to give the stocks and the ETFs an opportunity to really work within that index. Um, because the bonds are really dragging down those, those index indices and the allocation and the growth on some of those annuities is coming out fairly flat. And that's something we we like to try to move and change. And so we're making sure that we're reviewing all of these different policies. So if you want an annuity x ray go ahead and reach out to us at (888) 814-0304 or visit retirement results. Com forward slash plan. And um, we're super excited to be able to offer that annuity x ray free financial portfolio analysis and a free financial plan to your 95th birthday with a Roth ladder conversion to help you delete the IRS out of your retirement accounts and hopefully save you over six figures in reduced taxes over a 35 plus year retirement. Listen, you've been listening to retirement results. We're so glad you are. Come back. We've got more about this important show talking about annuity awareness and also how to start your own personal pension with the right type of annuity. Come right back and we're going to get after it.

Speaker2:
Learn more at retirement results. Com or by calling us today at (770) 685-1777. That's (770) 685-1777.

Win tonight. But she has only whispers.

Speaker2:
While Washington's spending keeps growing, your retirement doesn't have to shrink, protect, and grow your hard earned money today by calling us at (770) 685-1777. That's (770) 685-1777 to connect with a qualified advisor.

Speaker3:
And welcome back result drivers on Ford Stoke's chief financial advisor I've got Sam Davis our senior financial advisor and co-host here with us. And we're talking about how to start your own personal pension with the right type of annuity. Most Pre-retirees and retirees do not have a personal pension, but that doesn't mean they can't create lifetime income streams by investing in the right types of annuities, just like we shared in our two problem solvers. Um, just right after the break in. Segment two. More and more people are establishing a personal pension to create a stable, long term income during retirement. They're also doing it so they can live longer. We've already covered that with what Mr. Levitt said. Um, about how people with annuities do in fact, statistically live longer. Sam, why don't you go through kind of the highlights here on. The things you need to do to start your own personal pension.

Speaker4:
Yeah. So if you're looking to really bolster your income, plan for retirement and really just get to the guarantees wherever possible. You need to first understand the basics of annuities. So first off an annuity is a contract with an insurance company that creates a guaranteed income source for the owner, often lasting as long as they live. But there's a few different types of annuities you want to be aware of. We've already talked about a couple of them today. Fixed. Indexed variable. And keep in mind we do not recommend variable annuities. Variable annuities are essentially a mutual fund in an annuity chassis for you. You mentioned that pretty regularly and there's too many fees in there. We recommend fixed indexed annuities. But you want to understand the basics essentially a contract with an insurance company. And we always recommend you work with a highly rated insurance company as well.

Speaker3:
You also want to identify your retirement income needs. That's kind of number two. Number one would be understanding the basics of annuities is the same as you just said. Number two is you want to identify your retirement income needs. You want to consider how much income you'll need in retirement to cover all of your expenses. Specifically, you want to understand what your monthly expenses are running. We encourage you to go ahead and add two months together and divide by two. And that way it will give you an idea of what you're kind of, on average, running each and every month. And you want to evaluate your current savings, expected Social Security income, benefits, any other income sources like a pension if you've got that, or rental income or even dividends off of, you know, large cap stocks, things like that, annuities can help you fill the gaps in your retirement income plan. One thing that I want to also really dive in here and just kind of make sure everybody understands if you are taking 100% of your income from 100% of your portfolio, let's say you're invested. I've got a a girl that I went to high school with and she played tennis on the same, uh, you know, at the same school. Um, she actually won state with her doubles partner. Um, which is pretty neat stuff.

Speaker3:
Uh, when we were in high school. And shout out to Katherine and. Her portfolio. She just recently retired because her dad passed away and gave her and her siblings, um, quite a bit of money, but the concern is that she's generating 100% of her income from 100% of her portfolio, because she's basically taking dividends off of large cap stocks like Coca Cola and others in different bank stocks. And those banking stocks got hit quite a bit in the last couple of years. And she's come to me and said, hey, you know what, Ford? I need to get an income from my portion of this, and I want to let the rest of this grow and get into more growth stocks. And so that was another really good situation. Just be careful. If you are generating income from 100% of your portfolio and you've got a lot of dividend stocks, you're taking a lot of risk. Because if the overall market goes down like we saw from March oh eight to March oh nine, when the S&P 500 lost 50.1% of its value, that could be a real concern. And it could be a real problem for you. I would encourage you to take 20 to 40% of your portfolio and just dedicate that to income, and then dedicate the rest of it to growth in the portfolio.

Speaker4:
So first you want to be able to choose the right type of annuity. I mentioned some of the different types of fixed indexed annuity. These offer guaranteed payouts. It's a safe option for those who need stable predictable income. Returns are going to be based on the underlying index. So you get the advantage of market like gains without necessarily having to take on the market like risk. When you're just invested in the stock market, you've also got migas and Miga that stands for multi Year Guaranteed annuity. Think of this as more of a bank CD alternative. They offer a guaranteed rate of return on your principal for a certain number of years, anywhere from a two, three, four year option, sometimes even a little longer. So a shorter time horizon. Um but a good bank CD alternative. So if you're somebody who likes knowing what you're going to get from bank CDs, consider a Miga, give us a call and we can talk to you about the latest rates. And then there's also variable annuities. This allows you to invest in various funds. It's a higher risk for potentially higher return. But we do not recommend this type of annuity in most cases.

Speaker3:
Yeah we recommend avoiding variable annuities completely. We really like fixed indexed annuities and multi year guaranteed annuities. Those are really great options there. Migas are going to be the thing that allows you to beat the bank CDs. And then the fixed indexed annuities can give you market like growth without market like risk. And then also they can give you an income you can never outlive. And they can also be accumulation based. If you're just looking to grow the money and not take withdrawals as well. And then number four is. Check the insurers ratings and history. This is step number four. When you're trying to start your own personal pension with the right type of annuity. You want to opt for insurance companies with higher ratings from agencies like a m Best and Standard and Poor's, indicating financial stability and reliability. You're going to consider companies with a long history in the business. So therefore you have confidence they can pay your money back and then some. And they should also have the experience and resilience in managing annuity products. And Sam, why don't you go ahead and share number five. Step number five on how to start your own personal pension with the right type of annuity.

Speaker4:
Yeah. So first understand what you don't know and consult with a financial advisor. You want to work with a licensed advisor and a fiduciary. Somebody who's going to sit on the same side of the table as you and put your needs ahead of their own. Because annuities are complex products. There's a lot of different types out there, but they can be a fantastic tool when planning for retirement and a fantastic addition to your income plan. So consulting with a trusted advisor and getting all the information you can that'll help you navigate your options and make the best decision to help you reach your retirement goals.

Speaker3:
Yeah, I mean, creating your own pension is a big deal. It definitely offers that peace of mind with guaranteed income stream during retirement, and by carefully selecting the right type of annuity and ensuring that it fits with your overall retirement strategy, you can effectively create a financial safety net for your later years and also live longer, because statistically, it's been proven that people that buy annuities actually do in fact live longer, which is, uh, something else I'll tell you. Also, did you know you can reduce the risk in your portfolio and establish a personal pension that creates a lifetime income stream with one simple strategy? Be sure to listen to our show this month to learn all you can about annuities and how they can power your retirement. Go ahead and reach out to us at Retirement results.com/plan. And you also give us a call at (888) 814-0304. And we'll be right back.

Speaker2:
Thanks for listening to retirement results. Schedule your complimentary financial consultation now at Retirement Results. Com or by calling toll free at (888) 814-0304. 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 no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at retirement Results.com.

Speaker1:
Do you want a steady stream of income for retirement? Then it's time to consider annuities. I'm Matt McClure with the Retirement Radio Network powered by Amara Life. Gone are the days when most employers offered pensions with guaranteed lifetime payouts to their workers. But what if I told you that you can build your own personal pension? It's possible with an annuity. An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time, often for the rest of their life.

Speaker3:
There are several options for you to consider when choosing an annuity. Be confident in knowing that there is an annuity out there that can meet all of your needs.

Speaker1:
Fort Stokes is founder and president of Active Wealth Management and author of the book annuity 360. There are several different types of annuities, including fixed, variable, and fixed indexed.

Speaker3:
A fixed annuity offers a specific guaranteed interest rate on their contributions to the account. A fixed indexed annuity is an accumulation based product offered by an insurance company. The growth of your fixed indexed annuity is dependent on the performance of a chosen stock market index, but your money is not actually invested in this index. This offers you great growth potential and exceptional protection for your investment.

Speaker1:
While each can provide tax deferred growth and a lifetime income stream, variable annuities put your principal at risk in the market.

Speaker3:
If you are currently investing in a variable annuity, your funds could be in serious trouble if the market experienced any downturns.

Speaker1:
With so many possible choices to consider, it's essential you speak to a financial advisor or professional to help you make the best decision for your future. So are you ready to consider an annuity as part of your retirement plan? It's a key question to consider as you approach what should be your golden years with the Retirement Radio Network powered by Amira Life? I'm Matt McClure. 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 not affiliated with the United States government. The agent does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks are the property of their respective owners. A mirror life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or of the results obtained from the use of this information.

Speaker2:
Miss. Part of today's show retirement results is available wherever you listen to podcasts and online at retirement results.com.

Speaker4:
And welcome back to retirement results on Sam Davis, your senior financial advisor, helping you wrap up your weekend's edition of Retirement Results. Thank you, as always, for listening to us. And if you missed part of today's show or if you missed any of our recent shows, you should know you can go back, pause, rewind, and listen to any of our past episodes just by subscribing to our podcast so you can go to your favorite podcast app, whether that be Apple, Google, Spotify, YouTube, wherever you like to listen to your podcasts. You can even go online to Retirement results.com and click on the podcast tab at the top of the page, and you'll be able to listen to every single past episode of our show right there. Well, we've just got a few minutes left in this week's show. We're going to have an interview with Matt McClure. He's going to be bringing you some important information from an expert, some really interesting stuff on some summer travel trends, because we are in the middle of the summer travel season. But before we left today, we wanted to wrap up and give you our retiree of the week because we talked about it in the show preview. And this week's retiree of the week is Madonna Butyour, aka The Iron Nun.

Speaker4:
So Madonna was born Marie Dorothy Buder in 1930, in Saint Louis, Missouri, and early on in life she found her calling in. She became a nun. She grew up in the Catholic Church, same as I did, and. In 1970. She then left to form a non-traditional community of religious sisters, and she's still very spiritual, but she wanted to kind of break away from the rigidity of the church, and she began a triathlon career at the age of 52. Just incredible. And she's been known affectionately as the Iron Nun. And she's competed in over 325 triathlons, including 45 Ironman distances, which is just incredible. At age 75, she became the oldest woman to compete in the Hawaii Ironman, and eventually she started breaking her own records and set the world record for the oldest woman to finish an Ironman triathlon at the age of 82. And Madonna Butyour the Iron Nun once said, I don't know what I do without running. I love the feeling I get when I whiz past people younger than me, and they say, I want to be like you when I get to your age. And that's why Madonna Buder is our retiree of the week. Well, thank you for joining us once again this week on retirement results.

Speaker4:
Wrapping up this week. On this week's show, we talked about how you can form your own personal pension. Ford gave you a couple problem solvers to help you see how some of the solutions that we're using for our other listeners who have given us a call and become our valued clients, how we've helped them improve their future retirement. And if you have any questions or want to get started on your on your own retirement plan, you can give us a call at (888) 814-0304. That's (888) 814-0304. Or you can head over to retirement results.com/plan. That's retirement results. Com forward slash plan there. You can just give us your name email phone number. And we'll reach out directly to you at a time that is convenient for you and your family. Well thank you once again for listening to retirement results. Don't forget to subscribe to the podcast. You can also check out our YouTube channel to watch videos of our past episodes, including some of the episodes of our television show as well. Those are up there, but thank you once again for listening to retirement results for Ford Stokes. I'm Sam Davis and we'll see you next week.

Speaker2:
Thanks for listening to retirement results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary financial consultation, call us now at (770) 685-1777. That's (770) 685-1777. To connect with a qualified advisor. To learn more about our mission and our team, visit retirement Results.com Investment Advisory Services offered through Brookstone Capital Management, LLC, VCM, a registered investment Advisor, VCM 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. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest, if any exists, please refer to our firm brochure, the ADV Two.a, page four for additional information. Are you concerned about rising taxes and how they 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.com Investment Advisory Services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit retirement Results.com for more information.

Speaker1:
I'm speaking with Shikha Narula and financial expert with Bank of America. Shikha, thank you so much for taking some time for me. I really do appreciate it.

Speaker6:
Thank you. Thank you for having me join you.

Speaker1:
Well, I really do appreciate this because it's, um, you know, we're actually talking about a fun subject this time around. Summer travel and entertainment spending. What are some trends that we're seeing right now as far as, uh, summer travel and entertainment again this year?

Speaker6:
Yeah. So according to the newest Bank of America survey, we're 72% of consumers have told us they are planning a trip this summer. Uh, overall, total consumer credit card leisure travel spending is actually down 2% year on year. But we're continuing to see very strong appetite, uh, for leisure travel in 2024. Um, as far as modes of travel are concerned, uh, we're seeing cruising is making a major comeback. And this is across all generations, uh, especially millennials who doubled their cruise spending since 2019. Um, and then destinations, we're seeing Asia, Japan emerge as a hot tourism spot, uh where international point of sale credit spend, um is up 16% year on year in the region. And then entertainment consumers are seeking memorable, um, experiences, and we're seeing them splurge on, um, concerts and tickets.

Speaker1:
I love this, uh, trend because it's, you know, people, I guess still, at least just from my sort of outside perspective here. And you can correct me if I'm wrong, but people I think are just, um, still kind of have like, that pent up, um, uh, desire to get out and go and do things that they weren't able to do for so long during the pandemic. Is that still, you know, part of the reasoning that we're seeing this kind of surge in travel and entertainment spending?

Speaker6:
Absolutely. We're going to we're continuing to see that demand, uh, post-pandemic. Um, you know, we had seen outsized travel spend growth, and we're continuing to see some of that trend, um, this year, um, as well. Yeah.

Speaker1:
And it comes at a time as well when we, you know, are seeing a lot of and hearing a lot about, um, you know, sort of tightening economic conditions. You know, inflation is obviously a concern for people. Um, how is that kind of factoring into how people are, are making their, their plans? I mean, obviously, like if you have a budget for your summer travel, are people, you know, sticking within that. Are they are they splurging, going above and beyond what they had planned to spend right now despite, you know, the overall economic conditions that might not be, uh, quite as as favorable, favorable from a spending and budgeting standpoint as we would like.

Speaker6:
Yeah. So, you know, some of the major travel categories, such as, um, airfare and dining, we've seen, uh, the pricing come down a little bit. So that is helping, uh, stretch people's budgets farther. But then overall, um, 84% of people have told us they're establishing a budget or a spend limit. And within their, you know, they're being thoughtful about where they want to splurge and where they want to save. So as an example, before the trip, you know, the shopping and preparation for the trip or transportation, they're looking to save on some of that. But then when they're on the trip, they are looking to splurge on experiences. 45% people have told us they want to splurge on experiences, um, and shopping during the trip or dining. So they are trying to balance things out, uh, to help them stay within their budget. Very good.

Speaker1:
And so, you know, if, uh, we have listeners who are, you know, looking for those, you know, summer experiences and, and going places doing things, um, what are some, some tips or maybe some resources that are out there that they could take advantage of or, you know, just some advice that you would have where they can make those dollars stretch farther.

Speaker6:
Yeah, I would say start with creating a travel budget plan ahead. Think of how you want to save for that trip. But then once you are planning for that trip, think of places, uh, where you will hold back a little bit, uh, and, and save versus other places where you may be, you may want to splurge a little bit. The fun budget that you create, whether it's for concerts or experiences when you are on. That trip. And then think of if you're traveling in a group, think of how you might split some of the costs, you know, how do you take advantage of group prices that can help you save money? And then if you know, going to a sport sporting event is on your agenda during that travel, think of ways you might be able to get cheaper tickets. You know, traveling on a, uh, taking those tickets or going to the event during the week is a good way to save, uh, on on the, uh, event ticket price a little bit. And then there are reward credit cards that are available that help you offset, uh, some of the travel expenses. The Bank of America Customized Cash credit card is a good example. It gives you 3% cash back in the category of your choice. So you can set that category to be travel. Um, you know, when you're booking that trip and then when you're actually traveling, you can change that category to dining. That way you can maximize your rewards, which then you can redeem as a statement credits after the trip to help offset some of the costs.

Speaker1:
Oh very good. Well, just about time for us to, uh, start wrapping things up here, but anything else that you wanted to touch on that we haven't spoken about just yet that comes to mind?

Speaker6:
Yeah. So if, um, you know, consumers want to get more, uh, of these tips on how might they spend and save in a smart way, they can go to better money habits. Uh dot Bank of america.com to learn more.

Speaker1:
Shikha Narula is head of consumer and small Business Product strategy, transformation and rewards at Bank of America. Shikha, thank you once again. Really do appreciate your time.

Speaker6:
Absolutely. Thank you for having me.

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. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products they do not, in any way refer to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company. You may not receive the bonuses if the contract is fully surrendered, or if traditional annuitization payments are taken, and if the policy is partially surrendered, it could result in a partial loss of bonuses. Because these are bonus annuities, they may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don't offer a bonus feature.

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