Improve Your Retirement Plan This Summer!

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

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

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

Speaker3:
And welcome to retirement results. I'm Ford Stokes, your chief financial advisor. Got Sam Davis here with us. He's our senior financial advisor and co-host on the show. Sam, say hello to everybody.

Speaker4:
Welcome to the weekend result, drivers. Thanks for tuning in to retirement results. Just a quick reminder before we start the show, if you missed last week's episode or if you missed any part of today's episode, feel free to subscribe to retirement results. Wherever you listen to podcasts, you can listen to all of our episodes on demand. We share a lot of great free information. Ford. We've been doing this show together over five years now. It's hard to believe and you can go back and listen to all those classic episodes and learn everything you could possibly want to know about preparing for retirement. And Ford, that's what we're talking about today.

Speaker3:
Yeah, we're talking about how to improve your retirement plan this summer. A step by step guide, plus free retirement planning support for you. All you got to do is reach out to us at retirement. Com Results.com. That's retirement. Results.com. The fastest way to do that is retirement. Results.com. That's retirement. Results.com. Put your information in and we'll reach out to give you a call, and we'll get started right away. Also, Diane and her team are standing by to take your calls at (770) 685-1777. We've got information packed show today. We've got something that's really going to help you. And we've got some great sound from Jamie Dimon, JP Morgan. We'll play that right after the financial wisdom quote of the week. But here's what we're going to talk about on today's show. We're going to talk about a step by step guide for our listeners how to get ready to retire with confidence. Also, what it's like to work with us, how listeners can receive free help with their retirement. Also, we're going to talk about Social Security planning. I am a registered Social security analyst. I'm one of 23 registered Social Security analysts in the state of Georgia, and I'm happy to help. We're pretty busy running these Social Security plans. You really want to take advantage of it. If you're anywhere between, let's say, 57 years old and 67 years old, I'd encourage you to reach out to us all the way up to 70. If you want. I would encourage you to reach out to us to get started on your RSA roadmap, which is a Social Security maximization report. We're going to help you understand why you need to make the most of your benefits, and how to plan ahead for your retirement future.

Speaker3:
Listen, when you take Social Security, it's going to be the number one or number two most important choice regarding your retirement income that you're going to make. So let's make sure we do that with a sound financial bedrock of information with something called an RSA roadmap. Rsa stands for Registered Social Security Analyst. Again, I'm one of only 23 here in the state of Georgia. I'm happy to help you get going on that. And then we've got an inflation demonstration. Rising costs are affecting the buying power of retired Americans. We're going to talk about that as well. Although I want to give credit to President Donald Trump and Scott Bessent and the entire Trump administration for trying to bring inflation in line seemed like the gas was a little bit less during Memorial Day weekend. It's kind of crept back up a little bit, but they've done a great job at trying to reduce costs, reduce waste, reduce fraud, all that kind of stuff, and also hopefully help protect Social Security so that it's there in perpetuity for everybody. So we're going to talk about all that stuff on this week's show. The title of this week's show again, is How to Improve Your Retirement Plan. This summer. We're giving you that step by step guide, plus free retirement planning support. Absolutely at no cost to you. Our goal here is to better educate you on how to retire successfully, how to invest successfully, how to plan for that successful retirement, but also how to protect and grow your hard earned, hard saved assets, and really just how to build that tax efficient, fee efficient and market efficient portfolio. And Sam, why don't you go ahead and share this week's financial wisdom quote of the week?

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

Speaker4:
Retirement is when you stop living at work and begin working on living. I had never heard this quote before Ford, and I thought it was really good. I'll say it again. Retirement is when you stop living at work and begin working on living. And I thought this one was a good one for this week we've been meeting with a few different retirement results listeners and some other folks from the Atlanta area here in the office, and we've we're meeting with a lot of people who just want to get to retirement. You know, they'll tell us, hey, Sam. Hey, Ford, I want to retire on or before my 60th birthday or my 61st birthday or 59th birthday, whenever it is they want to retire. And we want to help get you there. And we're going to give you some step by step help for that today.

Speaker3:
Amen. I feel like it is important to start working on living when you're actually retired, and you try to want to do that when you're able to. You know, George Foreman talked about it's not really when I want to retire. It's what income I want to retire at. And we want to help you generate higher than that 4% withdrawal rate from your assets. We also want to help you maximize that Social Security income too. So we want to get started right away on that. But first let's go ahead and play this sound from Jamie Dimon, who is the CEO of JPMorgan Chase. Always in the news. He's always really, really out there as far as everybody really is. Kind of he's almost like a second Oracle. Like we've got the Oracle from Omaha with Warren Buffett. People really want to lean into what Jamie Dimon has to say. And I gotta say, what he said this past week on CNBC was eye opening.

Speaker6:
You are going to see a crack in the bond market, okay? It is going to happen. And I tell this to my regulators, some of you in this room, I'm telling you it's going to happen and you're going to panic. I'm not going to panic. We'll be fine.

Speaker3:
My concern with what Jamie has to say is that so many of our listeners out there have got 40, 60% of their money in bonds, and I am really concerned about it. I'll be honest, Sam. I want people to minimize the bonds they've got in their portfolio. If not, delete the bonds in their portfolio. It's not enough just to have a bond ETF or bond mutual fund that you okay. Well I'm diversifying my bond exposure but I'm still getting income from it. Quite honestly I don't think it's I you know, Harry Markowitz came up with modern portfolio theory in 1952. It's an antiquated plan. It was something that was set up a long time ago, where you've got 60% stocks and 40% bonds to build that efficient investing frontier over time. But what it did is it really minimized the time and labor that folks had to invest in at the wirehouses, the stockbrokers out there, and actually managing their client's portfolios. And and it helped them make more money, reduce labor, things like that. And my concern is, is that you're if you're still in a 6040 portfolio, you're in a really antiquated portfolio. I think you really should consider a new 60 over 40 portfolio. Sam, you and I talk about all the time 60% stocks and or ETFs and then 40% fixed index annuities to get the income you need and also delete the advisory fees so you become more fee efficient. Lock up 40% of your portfolio where you cannot lose principal. So you become more market efficient. And then you can also grow that money tax deferred. Or if you've got that money in a Roth IRA, you can actually. A lot of people don't realize you can invest in a fixed index annuity with Roth IRA money.

Speaker3:
And we can even do some Roth conversions with some annuity carriers as well. So you can become more tax efficient with fixed index annuities as well. But you can get at least tax deferred growth with fixed index annuities. So I would encourage you to reach out to us at (770) 685-1777 or visit retirement. Com to go ahead and get started right away with us helping you better plan and help you delete the bonds out of your portfolio. If you're listening to The Sound of My Voice, or you're whether you're listening to the podcast or you're driving around Atlanta, or you're driving around the lake and listen to us on WGN, you're driving around going to Lowe's or Home Depot over, you know, in the Atlanta area, listening to us on Am 980. The answer I'm begging you to reduce or delete the bonds in your portfolio. We need to minimize those bonds full stop. I mean, why would you go through a a coming crisis in bonds when the go forward price to earnings ratio in US corporate bonds is over 135. That's 135 times earnings to get you your money back. Let's don't do that anymore. Let's go ahead. Carve out 20 to 40% of our portfolio with fixed index annuities. And let's go ahead and get more efficient. And let's take risk off the table with our income. Why are you taking risk with the income portion of your portfolio. We just can't do it, Sam, I just want to bring you in here and get your thoughts on Jamie Dimon's comments. And quite honestly, it really gave me some concern on the bond market.

Speaker4:
Yeah, he had some really interesting things to say. And if you want to hear more, he actually spoke at the Reagan Economic Forum recently and was part of a Q&A and a panel session there. If you'd like to get access to that full video, you can look it up on YouTube, online, or we have the audio as well. If you just want to reach out to us here at Active Wealth or Retirement Results, we can get you that audio as well. Um, but just really interesting. Ford. I mean, the reason why people were so interested in bonds as an investment for so long is they wanted to take some risk off the table, and they wanted something that was going to pay them income while protecting that portion of their portfolio. But decades later, we can still accomplish those same goals, but with far more efficient vehicles, vehicles that have a 100% reserve requirement. Vehicles that have a contract showing you what you're going to make every year for the rest of your life, at a minimum. And they're just better options out there. And we just want to help people kind of bring their portfolios and their retirement into the 21st century. There was nothing wrong with the 6040 portfolio 30 years ago. It was working pretty well back then. But these days you want to get as efficient as you can, and that means being both market efficient and fee efficient with your portfolio.

Speaker3:
Yeah, I mean that the 6040 portfolio and modern portfolio theory was born in 1952, like we said. I mean, folks, that's 73 years ago. When we come back from the break, we're going to talk about how to get ready to retire with this step by step guide for all of you listeners out there. Thanks so much for being a result. Driver and listening to retirement results on Am 920. The answer and retirement results.

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

Speaker1:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the visit.

Speaker2:
Retirement Results.com. To schedule your free, no obligation consultation today. Now back to the show.

Speaker3:
This is the Retirement Results financial radio show right here on Am 920. Answer and Wdan. And again, thanks for making us the number one listen to radio show on the weekends on Am 920. Answer. We appreciate that. Also want to give a shout out to everybody on the lake listening to us. Um, you know, we're growing really fast. The show is growing really fast. Um, over there on WGN. And thanks for listening to us. And be safe on the lake this summer. Let's do that for sure. And what we're talking about right now is get ready to retire with a step by step guide for our listeners. Um, Sam, why don't you go ahead and start with step one?

Speaker4:
Yeah. So step one, if you're getting ready to retire, you gotta have an idea of what that retirement is going to look like. So you have to make your retirement goals. Uh, only about 52% of people have taken the time to calculate how much they'll need to retire comfortably. That's according to the 34th Annual Retirement Confidence Survey that's conducted by Greenwald Research. So about half the people out there forward are just walking around. They're not sure how much money they need to retire. And that's frankly what we experience. When people come in and meet with us, they're not sure exactly where they're at, and they're trying to figure out a good baseline of of where they're standing today so they can figure out where they want to go. But there's some important questions you want to ask yourself.

Speaker3:
Yeah. One of the things we do as part of every one of our financial plans is and, and also including with the portfolio analysis, what we do is we run a what's called a retirement income gap analysis. And we try to understand, are you going to start with a positive retirement income surplus or negative retirement income gap just from an income basis on a monthly basis. So you really need to kind of start there. And the best way to kind of determine your income is calling us or just visiting retirement Results.com and put your information in at retirement.com/plan. We'll get started on that. But if you want to do a back of the napkin for yourself, you can try to say, okay, if I take 4%, let's say you've got a million bucks saved up. Let's take I'll take 4% of $1 million. That's 40,000 a year. And I've got, you know, $36,000 coming into the household in Social Security income. Okay, that's 76 grand less taxes if you're not invested in Roth IRAs, things like that, or life insurance or both. Then I would encourage you to consider getting a full workup and a full plan to make sure that, hey, you know what? I need to make sure that I'm well, outpacing by 10 or 20 grand a year what I need to live in retirement and really enjoy retirement also so I can spend more time with my kids, my grandkids and and also learn hobbies or enjoy my hobbies and do all those things that you want to do travel and also service work. And maybe you want to relaunch with a second career. But I would just tell you, we need to do a better job at building that vision for retirement. What are you doing? Who are you with and how are you going to fund it? And it really all starts with that retirement income gap analysis to understand, hey, do I have enough money to meet my expenses or exceed my expenses on a monthly basis during retirement?

Speaker4:
Yeah. And sometimes people find out forward that, hey, I'm in a really good spot right now. I might actually be able to retire even earlier than I expected, because I think people just get into habits both good and bad. And if you have that habit of working hard, saving every two weeks, you know you can save up quite a bit of money and find yourself in a really good situation as you enter your early 60s or maybe even earlier. So after you have an idea of what your retirement goals are, it's time to implement a smart financial plan. If you're still working, try to save at least 15% of your income as you invest for the future. 15% is high enough to make really good progress towards your goals, but also leaves room for you to work on shorter term financial goals. You know, if you earn 100,000 a year and invest 15,000, so 15% into ETFs with an average annual rate of return of 8% after 25 years, you're just shy of 1.1 million.

Speaker3:
That's that's a really nice situation if you're just doing 15%. Also, we encourage people to do 15 to 20% when they're doing their catch up years after they turn age 50. So let's try to invest, you know, 15 to 20% of what we're making every year into our four K's or IRAs or Roth IRAs or a combination of those. And also you can always consider life insurance as well. If you're in your 40s and 50s, life insurance could be a really good situation where the cost of life insurance isn't that great. So let's let's just try to get on a plan to save and get the money working as hard as you do. There's no reason for you to have to keep making the same money year over year and not getting income from your investments as well. So let's try to get going on that. Um, and you've got step three here to Sam.

Speaker4:
Yeah. So you've made your goals. You've figure out where you stood with your financial plan, and now you need to make sure that you've paid off your debts. So one of the most important steps in preparing for a successful retirement is making sure that you're debt free. Hopefully you can complete this months or even years before you retire, but pay off your debts, including the home mortgage. When we're doing those RSA roadmaps forward and helping people with their Social Security planning, we tell them that it really helps if you can pay off your mortgage, because a mortgage payment will likely eat up one of the two Social Security payments coming into the household, and you just want to have more income flexibility in retirement.

Speaker3:
Yeah. We want to try to keep we want to plug all those holes in the bottom of your bucket, your retirement bucket of income and wealth and assets. So you don't have a leak out of the back. I mean, there's no reason, you know, to have, you know, nine to 18 to 20,000 plus dollars in credit card debt each and every year in interest. You don't want to have to do that. There's no reason to do that. Let's go ahead and get those things paid off. Let's you know, the the airline points and the miles and all that stuff that that stuff doesn't matter. You can't take that stuff to the bank. Let's get the credit cards paid off each and every month. And let's get started on learning how to live on a budget. Let's do that for sure.

Speaker4:
Yeah, absolutely. Step four is related to Social Security. Find out how and when you're going to claim your Social Security benefits. According to the SSA, Social Security is the primary source of income for nearly half, actually 49% of all US workers. For older individuals, Social Security accounts for at least 90% of their household income. We do know that the program isn't the most stable currently. If nothing changes by 2033. Believe it or not, that's only eight years away. Folks, 23, 20, 33 is only eight years away. The Social Security Administration will have depleted its excess reserves by that time if nothing has changed. So that means they wouldn't be able to pay out full benefits. That doesn't mean that Social Security would be going away. But rather than rely on Social Security for we encourage people to view it as extra income. Really just the icing on the cake, if you will.

Speaker3:
Yeah, it's Social Security. The old Age Survivors Insurance Trust Fund is set to be depleted by 2033. We've seen reports even at 2035. I'm really excited about the work that Doge has done. And big thanks and credit and big ups to Elon Musk. Thanks for being that temporary government employee. Um, I think you had to do like for 134 days or something like that. Um, thank you so much, Elon Musk, for dedicating that time. And now going back to, you know, Tesla and Starlink and and boring, which is the, the, the company that that that digs all the tunnels and everything. And then you know, and then obviously everything he's doing with SpaceX. And so I mean, honestly, what what Elon's working on is our future. And what he worked on with the government is the future of so many millions and millions and millions of Americans just trying to make sure that we get towards a balanced budget and then also trying to get to a situation where we don't have graft and theft and fraud and waste and abuse, with everything that's getting paid out by the Social Security Administration. They've taken over, I think 15 million people off the rolls that were over 150, 115 years old. They've done a lot of great things. They've stopped over 10 million people from getting foreign nationals, from getting Social Security checks that are even abroad. And a lot of those were actually in us.

Speaker3:
They were actually in Ukraine, which doesn't surprise anybody. But setting a course to make sure that your Social Security benefits are maximized so that you can that can help build that income on a monthly basis for you and for your spouse is really important. One last thing, Sam I want to talk about is that you and I are really good at planning for that eventual loss of a spouse at, you know, because you're going to lose 33% of the Social Security income coming into the household on the date of the death certificate when somebody passes away, um, out of the household. So we've got fixed indexed annuity plans for that. We've got also, um, structured note plans for that other different income vehicle plans for that. And depending on your risk tolerance, we're happy to help you plan for that eventual loss of 33% of income that comes in from Social Security income into the household. We come back from the break. We'll talk more about these steps to better plan and get step by step guide to better plan for your retirement this summer. Um, right here on Am 920. The answer and you're listening to retirement results. Come right back. We've also got a great problem solver from Sam at the beginning of segment three. And we've got a great problem solver for me in segment four. So come right back. You're listening to retirement results.

Speaker2:
We'll be back in just a moment to continue helping you navigate your financial journey. Stay tuned for more retirement results tonight.

Speaker7:
All right.

Speaker1:
Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering. Annuity company you may not receive the bonuses if the contract is fully surrendered, or if traditional annuity 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.

Speaker3:
Hey, this is Ford Stokes with Active Wealth Management and the Retirement Results radio show. Are you worried about outliving your retirement savings? Nationwide's peak ten fixed index annuity is designed to help you feel secure and confident with Nationwide Peak ten. You will receive protection for your principal, keeping it safe from market downturns, growth opportunities tied to market indexes but not invested directly in the market. Guaranteed lifetime income and protection for your loved ones with spousal income options and a death benefit. Call us now at (770) 685-1777, or visit wealth.com to connect with an advisor and learn how Pekhtin can help you retire with confidence.

Speaker2:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced are subject to the claims paying ability of Nationwide Life and Annuity Insurance Company. Nationwide peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio. Neither nationwide nor its other entities are associated or affiliated with Active Wealth Management. Thanks for listening to retirement results. Schedule your complimentary financial consultation now. At retirement Results.com.

Speaker3:
Welcome back to retirement results result drivers I'm Ford stokes chief financial advisor. Got Sam Davis here with us. He's our senior financial advisor and co-host of the show. Sam. We're talking about this step by step guide to building a better retirement plan this summer for your own portfolio. For all our our listeners out there, can you go ahead and recap the first four steps? And then let's go ahead and share the fifth step. And then I want to get straight into your problem solver for William and his wife.

Speaker4:
Absolutely. So helping all of our listeners this weekend on the radio and listeners to the podcast, get ready to retire this summer with a step by step guide. So just to recap, step one is make your retirement goals. When do you want to retire? What do you want to do in retirement? Do you want to travel? Who do you want to spend your time with? And most importantly, how are you going to fund it? Which brings us to step two implement a smart financial plan with the fiduciary advisor, like those here at Active Wealth Management and Retirement Results, who can help you continue to make smart investments and adjust that plan where necessary to make sure it's aligned to meet your goals. Step three make sure all your debts are paid off before you retire, including the home mortgage. You don't want that home mortgage expense cutting into your Social Security or any other income you'll receive in retirement. Step four is decide how you will claim your Social Security benefits. Make the most of that by maximizing your benefits. You can reach out to us here at Retirement Results Portal. Put together that Social Security maximization report for you that will show you if you're single or you and your spouse if you're married.

Speaker4:
Kind of optimal times and windows to turn on Social Security based on your situation. And step five is continue to invest and optimize your plan. Make sure you're taking advantage of all your retirement accounts. If you're working, make sure you're maximizing your contributions up to the limit so you can take advantage of any match that your employer is giving you. If you are eligible to contribute to a Roth, a Roth IRA, or a Roth 401 K, that's going to play a role in this upcoming problem solver. Prioritize making those investments so you can build your tax free savings for the future. That's very important to take advantage of a Roth whenever. You can also find ways to cut monthly costs and invest the excess. For a lot of folks that are retiring in their early 60s, a lot of people are retiring, retiring earlier than they expected. So it's important to understand you still have a time horizon. That's all the more reason to work with a professional, because your retirement is going to last 2 or 3 decades.

Speaker3:
Yeah, I mean, the power of discipline is amazing. So if you save money and invest money each and every year and you're saving 15% a year, eventually you're going to be able to not have to live off your own income and let that money work for you. So let's get started on that right away. I would just encourage you to reach out to us at retirement results. Com forward slash. That's retirement. Com forward slash. You can also call us at 777. Also, when you invest with us, you're going to invest in kind of a combination between a tactical asset allocation investment plan. That's where we're rebalancing on a monthly basis. And we're not just riding the the lows of the lows to the bottom of the markets. And then we're also going to invest in strategic asset allocation where we're rebalancing about once a year. We don't get paid on trading fees. We get paid when we have our flat fee grow over time that grows with your investments. We are 100% aligned with you. We're on the same side of the investment table or the meeting table, if you will, as you are.

Speaker3:
And we're also here to be on the same side of the table with you and leave the IRS on the other side of the table. We're going to do everything we can to help defeat the IRS from being your partner in retirement as well. And that starts with a strategic Roth ladder conversion that kind of lasts like from 5 to 10 years. Most of the time they're they're going from 5 to 7 years. And we're trying to keep you that 24% tax bracket or lower. Also, you might want to consider moving to Florida if you want to delete the state income tax in the state of Georgia or any of the other states that you're you may be listening to. If you're listening to our podcast, and there's a lot of things we can do for you. But if you want to get an understanding of what it really is like with like a true case study and how we solve people's problems, this problem solver that, Sam, that you're about to share, I think is going to be an eye opener for a lot of people.

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

Speaker4:
This week's problem solver on my end, Ford is William from Cumming, Georgia, and William came to us by way of kind of our retirement results roadshow. We go around to different libraries in the Atlanta area and do free presentations and workshops, primarily about social security and helping people maximize their benefits, but also putting together a smart financial plan in general. And William came to us shortly after that presentation at the library and wanted to figure out where he was standing. Now he's 58 years old, he's married, and he's actually ready to retire as soon as possible. Um, you know, it's interesting when he came in to see us for it, he, he was saying, you know, I feel like I haven't made much money my whole life, but I've been a good saver. And as we started to do his portfolio analysis and dig into his plan, we found that he actually had 2.2 million saved. And he made a very smart decision a number of years ago to change jobs. He was at a point in his life where he was kind of in between jobs and made a switch to a job that offered a Roth 401 K, and he made consistent investments into that Roth 401 K, to the point where out of his $2.2 million portfolio, $650,000 are in a Roth, and he is now going to be able to create a tax free income machine by investing in the nationwide peak ten.

Speaker4:
So a $650,000 investment into this fixed indexed annuity by nationwide, they're an A-plus rated carrier. Right off the bat he's getting a 20% bonus. All right. So he's getting $130,000 added to his income account the day his contract is signed. And then he's going to get 8% guaranteed simple interest credited every year. He defers, which he's going to do for about six years. He thinks until he turns on Social Security, he's going to defer to age about 65. And at that time, he'll turn on income of $105,000 a year, guaranteed tax free for the rest of his life. He also receives a really nice participation rate in the underlying index forward, and his account can experience market like gains. Without direct market exposure, he'll have contract value. He'll have guaranteed tax free income for life. And this is just a really good result that William was able to achieve out of just a small portion of his portfolio to generate a ton of tax free income. The result forward, he's going to be able to retire and he's going to have very few taxes in retirement.

Speaker3:
So also can you share if he defers to age 65 on that Roth money, how much is his tax free income going to be.

Speaker4:
$105,000 every year, guaranteed for the rest of his life? That's where we would start.

Speaker3:
Yeah. So when he turns on the income, let's say if it's at that $105,000 level the first year, he actually takes the income, that income is guaranteed for the rest of his life, no matter what. Now, it's not necessarily that the 105,000 can be guaranteed. He's going to have to have some growth in the account. But here's the interesting thing. He's guaranteed to get 8% guaranteed simple interest on his account on the $650,000 every year that he defers, that he defers withdrawals. He's also getting that 20% immediate bonus. What else? The other reason I really like this plan that you've set up for him, Sam, is that you're also building in some really great discipline on that tax free money because he can't just access it and go, well, I need to pull out more money that's tax free, so don't pay the taxes on it. And then all of a sudden you're taking out more money out of the Roth. And you're you're left with the IRA money that's tax deferred or you're left with the taxable account money in the investment account. We've got a couple of folks that we know that have taken money out of their Roth IRA to put to kind of fortify or pay the last bit of their house off. And they've really drawn down their Roth IRA account, which is not great.

Speaker3:
What I would rather see people do is really build that Roth IRA for income and also have a grow an average rate of return that's estimated to outpace the withdrawal rate so that it won't go to zero. But then every dollar they're getting an income year over year is tax free, except for the money they're getting from Social Security, which is taxable. And what else is nice about that is that tax free income is coming in and not adding to Medicare surcharges. So that's a big deal as well because it's truly tax free. If you've got municipal bonds they're tax free. But interest from municipal bonds do contribute to the Medicare surcharge calculation as well. And also additional taxation on your Social Security income benefit. Hopefully with the big beautiful tax bill, they'll come out and say there's no more taxes on the on Social Security for seniors. And that would be game changing for a lot of people by a lot of groceries. So for folks and so I just love this plan. I, I think William is is really fortunate to have you as an advisor. And I think he and his wife are just really enjoy retirement and really be able to enjoy that tax free money coming to them And look, it's never too late to do a Roth conversion.

Speaker3:
We'd like you to try to do it before you turn 73. But this situation that you've done for William, and he's just right around the corner from our office based in Alpharetta. I've been coming just north of us. I gotta tell you, it's it's really remarkable. And he loves it. I love it, you love it. I think I think this is a really good situation. And you're only you're taking out, like, less than 33% of his total assets for this Roth IRA based annuity with nationwide. With the nationwide peak ten and only 1% of advisors have access to it. And Sam, you and I have access to it. So if you're interested in this nationwide peak ten and you want to get 20% immediate bonus, the income account and you want to get 8% guaranteed interest in the income account or your income account is growing year over year, no matter what, and also get 310% of how the underlying index performs, which is the BNP Paribas Global Factor Index. Then I would encourage you to reach out retirement Results.com or call us at (770) 685-1777 again (770) 685-1777. We come back from the break, we're gonna have another problem solver. And we're going to recap and put a nice bow on this show that talks about how to improve your retirement this summer.

Speaker2:
Call (770) 685-1777 to schedule your free, no obligation meeting with us today. You're listening to retirement results.

Speaker8:
Make good conversation.

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

Speaker3:
Welcome back. Result drivers to retirement results on Ford Stokes. I've got Sam Davis here with us on the mic as our senior financial advisor and co-host of the show. That was a great Problem Solvers thing that you had for William in Cumming, Georgia.

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

Speaker3:
This one's for Robert in Alpharetta. He's on doesn't live very far. He's actually pretty close to your club at Iron Horse, actually. Sam, where you play golf? And he came to us. He's gonna retire soon. He's actually 57 years old, and he's going to try to live off of his investment accounts. But he's got a pension, a lump sum pension with AT&T, and he's getting a $1.2 million payout on his pension, and he's got 2.4 million in IRA between he and his wife. He and his wife both work, um, and they've both worked all their lives. They've got a couple of kids, but the wife didn't stay at home. She worked really hard to. Their $900,000 is paid off, their $900,000 house that's paid off. They don't have any Roth because they were making too much money. And they're going to also try to move when they when he steps away, he's going to try to move from their house here to a lake house over in Alabama on Lake Martin. And so which is where we've got a lake house. And so here's what he's going to do. He's going to take the lump sum of 1.2 million. He's going to take $1 million and invest it into the nationwide pick ten. He's got an immediate $200,000 bonus. So it's back to 1.2 million. He's going to invest the other 200,000 into um his IRA with. So he's got 2.6 total in IRA now then he's got he's going to turn on income for the nationwide pick ten, eight years later at the age of 65.

Speaker3:
So that means it's going to go up and grow up for the next eight years at 8% a year. So the bonus plus income benefit base is guaranteed to be at 2.684 million off his original $1 million, and he's estimated to get $167,777 in income that's taxed at ordinary income rates. But we're also going to try to do Roth ladder conversions over time. Between now and when he turns 73 years old, we're going to try to take about $200,000 a year and do that and try to stay just below that 24% tax bracket rate, and he's got his income basically taking care of that. He well exceeds what their requirements are in income for retirement. And because they were basically in that $7,000 a month range and $167,000, a whole lot more than 84,000 bucks and almost double. But he's got taxes coming off the 167,000. And he said he's very comfortable with this decision. And he's taken basically a third of his assets. And he's investing in to the nationwide peak ten because he likes it, because they're an A-plus rated carrier, but they're also a mutual insurance company. And he feels like he's getting more money into the product and less than it would be if he was with another company that that had to meet a quarterly earnings report, you know, for the New York Stock Exchange or something like that.

Speaker3:
He just feels like, you know, their shareholders or their policyholders. I like that I want to invest in a mutual insurance company. I want to I want to invest with them. He also likes the fact that he's going very safe. His his lump sum pension was safe money to begin with because it was a pension. It was a spia, a single premium immediate annuity. And he wanted to move it to a fixed index annuity so he could get market like gains. So we invite people all the time to get pension x rays on this show. And if you you have an opportunity to take a pension, I would encourage you to at least get it analyzed first and get that pension x ray from us just by visiting retirement. Com or calling us at (770) 685-1777. Again, that number is (770) 685-1777. It's tough for people to remember the number. So just remember retirement. Com and click that schedule a consultation button in the upper right corner. And we're happy to help you get started right away on that portfolio analysis. The pension x ray or the annuity x ray. And then also get going with the retirement income gap analysis and a financial plan to your 95th birthday with your current assets has nothing to do with us. And then also with our recommended plans that also include a Roth ladder conversion plan for you. Absolutely at no cost to you. We do all that on the front end, so you can better understand and make an informed financial decision about what's that, what steps you're going to take next.

Speaker3:
So I'd encourage you to reach out to us at (770) 685-1777 or visit us at Retirement Comm. Our private wealth management website is Active Wealth com for Active Wealth Management. Retirement results is powered by the advisors with Active Wealth Management. And Sam and I are two of those advisors. We've got several others as well, and we're happy to help you better plan for your retirement future. And also, I applaud Robert and his wife for saying, hey, you know, we're going to go get on the lake. So our kids and grandkids are going to come visit us. His wife, Lisa is like, you know what? I just feel like I miss some time when I was working, and I just want to make sure that the kids and grandkids are going to come see us so I can spend even more time with them, which I thought made a lot of sense. Sam and so super excited about the job we were able to do for Robert and for Lisa as well. And um, that was my problem solver. Um, really liked yours as well. We like to give real world examples, kind of almost like case studies here on retirement results. You can understand how what other people are doing. And um, and, you know, just again, try to save as much as you can so you can really take advantage of us later.

Speaker3:
The other thing I would recommend people do is really start looking at replacing the bonds as soon as you can, especially with a quote that we heard from from Jamie Dimon at the beginning of the show about the the there could be a fracture in the bond market, especially with a go forward price to earnings ratio of over 135. Right now. Um, I'm just really concerned about that. And it's never too early to start considering a fixed index annuity for the income portion of your portfolio. But what's great about what Robert's doing, what's great about what William is doing is they're they're going to take deferred withdrawals a lot later. They're going to take, you know, eight and nine years after they first purchase the annuity. And it really helped spike up the account value. And it helped spike up the income value of the annuity. But it also will spike up the actual income for the lifetime withdrawals. The other interesting thing is if Robert takes income at 65 and he gets $167,777 starting at age, I mean, at age 65, in year eight of the of the actual policy from when he bought it, he's guaranteed to get $167,777 for life. That that first payment, that first annual payment is the guaranteed amount that he's going to receive for the rest of his life, which is really quite wonderful and shocking. Many of you really only need like 30, 40, $50,000 a year in income to really spike up with.

Speaker3:
In addition to what you're seeing with Social Security income. And if you want to get started on that right away, go ahead and give us a call at (770) 685-1777 or visit us at retirement results. But let me give you another way to look at this. So if you took $1 million, let's say you took income in year one, he'd be getting $40,000 a year from that income, and he likely would be eating up, you know, half to all of what the interest growth was. If he if you just put it in the market and that million bucks would be at risk in the market by instead deferring eight years and putting it into a safer vehicle, like a fixed index annuity, where the principal is protected against financial market risk and your premium is invested at 100% financial reserve requirement into the ten year US Treasury bond. You've got he's got an opportunity to make $167,777 $7. Eight years later. So that is remarkable. And that's 16.7% of his original premium and not 4% of his original premium. And that makes all the difference in the world when you're talking about retirement income. So if you want to get more income during retirement, I encourage you to reach out to us at retirement Results.com. That's retirement Results.com. Click that schedule a consultation button in the upper right corner, and we're happy to get started for you right away.

Speaker9:
It's the final countdown.

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

Speaker9:
The final countdown.

Speaker4:
So on today's show, Ford, we wanted to help all of the listeners improve their retirement plan. This summer, we shared a step by step guide and offered some free retirement planning support for any of our listeners who want to reach out. Just get in touch with us at retirement Results.com. We also shared our quote of the week retirement is when you stop living at work and begin working on living. We also shared two different problem solvers related to some recent clients that we've been working with here in our Atlanta headquarters office here, and for just want to thank all of the listeners one more time before we go. Thanks for listening to retirement results this week. We'll be back same time, same place next week. And don't forget to subscribe wherever you listen to podcasts and get in touch with us.

Speaker3:
Have a great week everybody!

Speaker2:
Thanks for listening to retirement results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary 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, a registered investment advisor and Active wealth Management are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosures of any conflicts of interest. Please refer to our firm brochure, the ADV Tooa item four for additional information.

Speaker2:
Get started on your free portfolio analysis and financial plan right now by visiting Retirement Results.

Speaker4:
And welcome to the Retirement Results bonus segment for all of our listeners on Wdan and on our podcast feed, and also watching on YouTube as well. It's good to see you. And today we're talking about is your retirement strategy age appropriate? Because depending on where you're at in your life, I mean, I think about the rule of 100 that we talk about here on the show all the time, for you should have a different level of risk and a different approach. And so we're going to talk about how investing in your 40s, 50s, and 60s, some of the differences and maybe some of the similarities as well. So starting with your 40s, you know, a critical period for building up that retirement portfolio, you're likely at a good point in your career when you're at your 40s, earning more than you did in your 20s and 30s. So that increased income gives you a good opportunity to boost your contributions. So make sure you're taking advantage of your workplace retirement plan, whether that be a 401 K, 403 B, maybe a 457. If your employer offers that match, take advantage of it. Make sure you're taking full advantage of the match because that free money can significantly enhance your retirement savings. So, Ford, how would investing in your 50s start to change a little bit from your 40s?

Speaker3:
Well, I mean, entering your 50s, your risk tolerance kind of begins to decrease as retirement nears. This is the time to start shifting your investments really towards balanced options, if you will, while you still have to a significant decade or more to grow your savings. Don't lose sight of preserving what you've really accumulated. And then also, one key advantage you want to think about here is during your 50s, the ability to make increased catch up contributions to your IRA, Roth IRA, or other retirement accounts is really big. You get an extra $1,000 you can put in there and IRAs and Roth IRAs. What I really would strongly urge a lot of, of our listeners and viewers to do is invest in your 4k. Try to get up to that 1,015%, but many of you might be able to also invest in either a Roth or an IRA, one or the other. And in addition to your 41K. So try to do that. And especially if you're a spouse as well, if you have ordinary income and they don't if they're staying at home, um, and raise the kids or whatever they're doing.

Speaker3:
Um, also, I'd encourage you to consult with a financial professional. Specifically, I'd encourage you to consult with us, uh, the financial professionals and fiduciaries at Active Wealth Management. We're here to help you better protect and grow your hard earned and hard saved wealth. We're also going to help you build that tax efficient, fee efficient, and market efficient portfolio. But lastly, we're also going to really start honing in in your 50s and trying to figure out what kind of income do you want to retire at? And a lot of strategies go into that, like bond replacement and other things you can do, including Roth conversion. If you want to get more tax efficient with that retirement income as well, and also try to hone in on what your expenses are really going to be running during your retirement years. Have you paid the house off or not? There's a lot of factors here, and that's also why you really need to reach out to us at retirement Results.com, and we'll get started right away.

Speaker4:
Yeah. And for investing in your 60s, this is really the fine tuning phase of your plan. It's that final stretch before retirement. And we think your investment strategy should reflect this. The primary goal should be to protect your investment and then grow. That's why here at retirement results and active wealth management are saying is just that protect and grow. You want to make sure you have that steady income stream during your retirement years, not just Social Security, but really diversifying your income streams through things like pensions, through your work, maybe even a personal pension that you set up through something like a fixed indexed annuity. And if you're in your 60s and you haven't already started working with a fiduciary or a licensed advisor, now is a great time to do so. Take advantage of our offer of a complimentary portfolio analysis and our free plans for your future in retirement. That's not just for you, that's for your entire household and anybody else that you really feel like we could help. We try to give people as much information on the front end forward to help them make the best decisions about their future.

Speaker3:
Yeah. And in your 50s specifically, I want to see you trying to save at least 15 to 20% and invest that in your 41K and IRAs or Roth IRAs, even setting some money aside into a fixed indexed annuity in your 50s. And let that just sit there and grow, especially if you can. You can try to collect $100,000, some at some point in your 50s, and put that into a fixed indexed annuity. That's a good idea. And then your 60s, what we really like to see is we like to see you saving at least 20 plus percent and getting started and ready for that retirement income planning and that expense planning too. Um, listen, we're going to do all this for you. We're going to do the portfolio analysis for you at no cost. You can understand the risk you're taking, the fees you're paying, um, with your current plan, and also talk about how you can get to a more tax efficient, more efficient and more market efficient, uh, plan, as we talked about earlier in that 50s part of this segment. Um, go ahead and reach out to us at retirement Results.com. You'll be glad you did. We'll do everything we can to get you on the right path with that successful retirement.

Speaker2:
Call (770) 685-1777 to schedule your free, no obligation meeting with us today. You're listening to retirement results.

Speaker3:
Hey, this is Ford Stokes with active wealth management and retirement results. You've gotten used to getting higher interest rates on your savings accounts and bank CDs, but the fed has been lowering rates. If you're 55 or older and have at least $250,000 to invest, and you'd like to lock in to higher interest rates, we can help. Currently, we can lock in income payout rates as high as 8%, 9%, or even 10% guaranteed for life. Even if interest rates drop back down to 1% or lower, you'd be locked into higher income payout rates for as long as you live. You can do this with your IRA for K for three B pension rollover. Current bank savings or even brokerage accounts. Schedule your free meeting with us at wealth.com and we will help you battle lower interest rates by locking in great income payout rates for the rest of your life. Call our office today at (770) 685-1777 or visit wealth.com.

Speaker1:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guaranteed income streams referred to fixed insurance products only and are subject to the claims paying ability of the issuing company.

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