Planning to Protect and Grow Your Retirement Savings – Personal Pension Options

11.17.23: Audio automatically transcribed by Sonix

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

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

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

Ford Stokes:
And welcome to the Active Wealth Show Activators. Ford Stokes, your chief financial advisor. I've got Sam Davis, our executive producer, here with us. Sam. Sam, say hello to everybody.

Sam Davis:
Welcome to the Weekend Activators. So happy that you're listening once again. And we've got some interesting information about how much more expensive your Thanksgiving meal may cost this year due to inflation. Lots of other important information coming up on this week's show. If you missed any of our recent episodes, definitely check out our podcast feed and subscribe. We've got some big things coming over the next couple of months, and you'll want to be subscribed to the podcast feed so you don't miss any of the important information that we're going to be sharing.

Ford Stokes:
Yeah. It's. We have a lot to be thankful for. And one of the big ways that you can. Change your perspective is to alter your perspective from expectation to appreciation. And I am doing everything I can to make sure that I am appreciative of. Of all the many blessings that that my family has and the number one blessing and have this past week, Sam, is we. We were at Macon Coliseum for the g-h-s-a. State Cheerleading Championship for competitive cheer and. Our North Forsyth Raider Girls cheer team won it all. They won the state championship. It's the first state championship for North Forsyth. And competitive cheer, I think they have. They've had a few others in baseball and softball. But that was the big deal. So if anybody checks us out on. The podcast or check us out. At active wealth show.com. You'll actually see me fanboying up here. I've got my North Forsyth Raiders hat on and my North Forsyth golf shirt on. And shout out to Peter Miller. We got that sent in. And the folks over at Lanier Goods did a great job at embroidering. The Peter Miller shirts for us for the state championship and just. Want to thank everybody. That was part of it. Thanks to Reed Jackson, who is kind of the competitive coach, and thanks to Jessica Woods, who's their coach at the high school. And, um, it was just a big deal. Our girls are going to get state championship rings and shout out to North Forsyth High School and everybody that supported them. And also just mainly. To those 19 athletes who are on the North Forsyth Cheer com team.

Sam Davis:
Yeah. Big congratulations to the North Forsyth Raiders and your twin girls. Ford I know that is such a special achievement. Not just for you as the cheer dad, but for them working so hard for the last ten, 12 years to get to that point. High school championships are such a fun thing. I was lucky enough to compete in three of them. Never came out on top, but it is very special and I'm so proud of your twin girls to bring home the trophy.

Ford Stokes:
Yeah, it's cool. We've got one other state champion in our family, my brother in law, David Ross. He was state champion in wrestling for Westminster High School his junior and senior year, and that's the extent of the state champions in our family. Um, I competed in state championships, in cross country and in tennis and never made it either. So, um, just shout out to our girls, Grace and Madison. Congratulations, but mainly to the whole team because it takes a full team efFord. There are 16 athletes on the floor and. If you want to see what a cheer dad looks like, all you got to do is go to Active Wealth Show.com and you'll see me dressed up full fanboy today as a cheer dad. My reaction was ten years of a culmination of being a cheer dad and seeing it all go and come together. So that was pretty cool. And and thanks to all the activators and you've been sending me good luck stuff. And, you know, on social media on active M on Twitter, which is now formally Twitter and, and also on the Active Wealth Facebook page and my own Facebook profile. Just thanks for all the great wishes from our active wealth management clients, our our prospects, and. And also just our active Wealth show listeners. It's a big deal for sure.

Sam Davis:
Well, that's some great news to kick off the show, and I'm sure that's going to be a fun way to kick off the Stokes family holiday season this year. And we're going to keep the attitude of gratitude going here in the first segment. And just first wanted to say how thankful we are for all of our listeners and also the active wealth clients who have been listening to the radio show. It's been on for the last four years, and all of our listeners on Am 920, The Answer and the podcast feed, you're the reason why we come on the air every week. And I've been putting together this show every week since March of 2020. So it's been a long stretch. And it's it's the listeners who get in touch with us and become active wealth clients. You guys are the reason why we do what we do. So thank you.

Ford Stokes:
We have come a long way. We've also got a lot of momentum. I think momentum is one of the most powerful forces in the universe and. We've got momentum for our clients and protecting and growing their wealth, and also trying to get them more efficient, more market efficient, and more tax efficient with their portfolios. And if you want to get momentum for your own retirement, all you've got to do is reach out to us at ActiveWealth.com and click that schedule a consultation button in the upper right corner. That's ActiveWealth.com. You can also call us at (770) 685-1777. Again that number is (770) 685-1777. We're also extremely thankful that the markets come back. The S&P 500 returned from a 19.64% loss in 2020 to. To what's now the S&P 500 is up about 15% so far in 2023. Now with sequence of return risk, that is an issue and a concern because if you lost 19.64%. The 15% coming back is on a lower principle. So you've got to really do a great job at protecting or growing your wealth. And we want to help you do that. One other piece of momentum and growth that we've had. It's recently come up. We did announce it a few weeks ago that I'd been selected to be a member and a contributing member of the Forbes Finance Council. Well, Forbes.com has published my first article. And that article is entitled.

Ford Stokes:
Is it time to replace bonds with fixed indexed annuities? And it's a pretty well balanced article. Talks about the pros and cons of doing that, and I would encourage you to check that out. You can also just reach out to us at Forward ActiveWealth.com. And I'll send you a link to that article. Absolutely no cost so you can just Google it. Is it time to replace traditional bonds with fixed indexed annuities by Ford Stokes on Forbes.com, and it'll take you to the article. Um. You know, it's a big deal. I mean, I've written three books. I've contributed an article on Fox business, but now to be a regular contributor to Forbes and have my first article approved and published here in the first few weeks is a really big deal for me. I'm super excited about it, and we wouldn't be able to do it without the people that listen to this radio show and the feedback you guys give us when you meet with us, and if you've been listening to us for a long time, we'd love to hear from you. We'd love to be able to get started on helping you. Get on a path to successful retirement. We want to help you protect and grow your hard earned and hard saved wealth, and all you have to do is reach out to us at ActiveWealth.com.

Sam Davis:
Before we take a break. Just a couple important reminders for all of our activators, our loyal listeners. Only a few weeks remain in Medicare's annual enrollment period. So if you're turning 65, or if you're already 65, you've got until December 7th to make any changes. By reevaluating that plan each year, you might be able to save some money on some of your Medicare expenses, so don't forget about that. Also, required minimum distributions are due by the end of the year. That's December 31st. And that's going to be here before you know it. Coming up on the show today, when we come back, we're going to share the quote of the week. We're going to talk about some Turkey Day trouble, how inflation will be affecting your Thanksgiving feast this year. Also, Americans are living longer, so we've got some solutions to make sure that your money will last throughout your entire retirement. We've got five ways to fill holes in your retirement plan. We can talk about the new income tax brackets for 2024. And of course, we're always going to talk about what it's like to work with us here at Active Wealth Management. You're listening to the Active Wealth Show and the Active Wealth Show will be right back.

Producer:
Is it possible for your turkey to be inflation proof? I'm Jim Taribo here for the Retirement.Radio Network powered by Amira Life, according to a recent study by Wells Fargo. The pace of inflation may be slowing down, but this year's Thanksgiving dinner could still prove pricey. Trevor Ault of ABC news explains further some products still have rising price tags ham at an all time high, with a price of $4.56 a pound in September, it's up 5% from last year and canned cranberries are up 60%. Meanwhile, a recent report by Advantage Solutions dot net states 50% of Thanksgiving food shoppers say inflation will alter their spending. 59% plan on spending more this year in 2023. But as ABC News Becky Worley reports, grocery stores across the country are using a counter strategy to help you save money.

Becky Worley:
But grocery stores are indeed trying some new marketing campaigns, which could result in a super inexpensive dinner and maybe even a free bird.

Producer:
Shoprite supermarket, for example, is giving away a free turkey to shoppers who buy at least $400 of food. For giant supermarket shoppers, 400 membership points can be redeemed for a free turkey up to £20. Target is getting into the act as well, after announcing it will be serving a Thanksgiving meal basket feed for for under $25, including a turkey at less than $1 per pound. Thanksgiving and inflation may be antagonists of one another, but thanks to some smart thinking and strategizing, you can have a worry-free dinner and a full plate of turkey for Thanksgiving for the Retirement.Radio Network. Powered by AmeriLife.

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

Ford Stokes:
And Welcome Back activators the Active Wealth Show. I'm Ford Stokes, chief financial advisor. I've got Sam Davis here with us as our executive producer. And Sam, why don't you share the financial wisdom quote of the week.

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

Sam Davis:
All right. This week's quote of the week comes to us from Jim Roan. Of course, Jim Roan, the renowned entrepreneur, motivational speaker, and Jim Roan once said, to solve any problem, here are three questions to ask yourself first. What could I do? Second, what could I read? And third, who could I ask?

Ford Stokes:
The number one thing you need to do is you really do need to get as much information as you can. You really should read a bunch of stuff. You listen to this show as an example. You can listen to it on podcasts when you're driving. We try to keep all the information really new and current, but there's also things that you can use throughout your entire retirement years. Things like the 4% rule and things like replacing bonds with fixed indexed annuities and deleting the IRS from being your partner in retirement with a Roth ladder conversion. Just strategies like that, and you want to read about that as well. But the number one thing to do is to go ahead and pick the phone up, give us a call at (770) 685-1777. Again the number (770) 685-1777. I think you're gonna be really glad you did call us. You'll be glad that you got an appointment. Or we can really help you run a full portfolio analysis, retirement income plan, social security maximization report, a financial plan, your 95th birthday with your current plan, with your current portfolio that has nothing to do with us. And then we'll run a financial plan with our recommended portfolios. That also includes a strategic Roth ladder conversion plan to delete the IRS from being your partner. Retirement. Also, to help you give your kids the greatest legacy gift you can give, which is an inherited Roth IRA versus an inherited IRA. We can do all that for you.

Ford Stokes:
All you got to do is visit ActiveWealth.com. Click that schedule consultation button in the upper right corner and you'll get booked right into my calendar. You know, Sam, you kind of finish how you start in a lot of things in this world. And one of the things that we like to talk to our clients about is getting a smart vision for retirement. And as you drive around Atlanta or, or you're listening to the Active Wealth Show on Active Wealth Show.com or on Stitcher, Spotify. Itunes, Google Play, wherever you can get podcasts. I want you to think about your retirement. I want you to think about three things. Number one is. What are you doing during retirement? Are you relaunching your career? Are you spending more time with family or are you? You know, working for charities. Are you volunteering at church? Are you, you know, coaching Little League baseball or are you writing books or whatever that is? The second thing I want you to ask yourself is. Who are you with? The severely. Your kids, your grandkids. It's your friend. Its other relatives. And also kind of. Who are you with? Where are you? Are you at the lake somewhere, or are you at at the beach? Or are you somewhere on a body of water where the kids are going to come see you more? Or are you in the same family home that you raised your kids in with a large dining room so you can have a really big Thanksgiving dinner, like a lot of people are going to have coming up here.

Ford Stokes:
So those are the top two things. And then the third thing I want you to ask yourself is how are you going to fund it? How are you going to go week in, week out, month in, month out, and not run out of money each month and not have a negative retirement income gap? And if you don't have answers to those questions, they don't encourage you just to visit ActiveWealth.com. And we're happy to help you, like I said, but I want you to have a smart vision for retirement. Sam had dinner with a very close friend of mine. His name is Mike. I'm a big fan of his. He's been probably the most impressive purchasing executive I've ever met in my life. And I've met a lot of executives, but. And I've met a good amount of purchasing executives and and especially since we work with so many manufacturing people. And I got to tell you, he's he's number one. He's he's the number one professional. He's so emotionally intelligent. And his company is about to either. Go on an IPO or get bought out that this company is owned by Walgreens. 30%. And he's trying to figure things out over, you know, the next 60 days about what's going to happen. And. And he was talking about investing and wanted to invest that money and figure things out.

Ford Stokes:
And. And that was great and I'm happy to help him. But I asked him those three questions like. But, you know, I want you to really think about, you know, not when you're around me. Like when you go off to a park or go get on your land in Kentucky and just take a walk and think about. What your retirement looks like. And. What are you doing? Who are you with? Where are you? As part of that second one. And then the third piece is. Are you going to fund it? And he just thought he has. Nobody's ever said anything like that to me about investing or retirement. He goes, that is brilliant. I need to do that. And one of the things he wanted to make sure was, hey, you know what, Ford? I want to take. A significant portion of these, and I want to make sure it's 100% protected, and I want to get an income from it. How do I do that? Is that bank CDs? What do I do? And then I told him about the nationwide ten. And the dinner suddenly got longer because he was like, I need to hear more about this. So we talked about replacing bonds with fixed indexed annuities. And with that nationwide peak ten product. And as you and I have talked about, there's so many great features to it. And I'll let you share your thoughts on it as well.

Ford Stokes:
But the the number one thing for me is. You get an 8% guaranteed interest roll up that you're going to defer withdrawals. And this gentleman, Mike, he's 50 years young. And he's planning on working another. 12 to 13 years. He's going to need income when he's 6362. And he couldn't believe how much money he could make from his original investment. So I'm going to overshare. He was going to take. $500,000 of the money he has and the money is going to get from the sale of the business. And he was going to put it in the nationwide Pac ten after the after the end of the dinner. And he's going to be able to get $137,000 a year. Significant portion of that 500 grand. But the craziest thing is, at the end of like year 13, it was estimated. That. His account value was going to be over 2.6 million. Right when he turned on income. So the 500 grand had increased five times over. 13 year period. And then it also. You know, was able to pay out a significant income. And that's a really great result. And he's like, I don't need any more money than that for it because I'm a good purchasing agent. We do a good job with our fiscal stewardship within my household. This is the best news ever and I can let the rest of the money grow. That is kind of your thoughts on that, Sam?

Sam Davis:
Yeah, well, of course, with the nationwide peak ten, so many active wealth clients have really started to enjoy the security of that personal pension solution this year. You know, when you work with active wealth management? Yes, it's a financial business, but we're really a people business. So I'm glad you brought up Smart Vision today forward, because the whole planning process starts with those three questions. What are you doing, who are you with and how are you going to fund it. And that's where active wealth comes in to help. So it's important to know when you work with active wealth, you're working with fiduciaries and you're working with someone who's going to ask you those questions. Because think about when you plan a vacation. You decide to take a week or two off. Now all of a sudden you have every hour of the day to to figure out. And that's the challenge with retirement. Except instead of 1 or 2 weeks, we're talking about 3 or 4 decades of planning. And so it it's important that whoever you're working with that your advisor's really taking the time to get to know who you are and what it is that you're trying to accomplish in retirement, or else it becomes really difficult to plan. But looking forward to helping Mike with the nationwide peak ten. And if anybody has any questions about that, you can just give us a call at (770) 685-1777. We're going to talk more about the peak ten when we come back from the break. But if you'd like some more information and to share it now.

Sam Davis:
You can just.

Sam Davis:
Visit ActiveWealth.com. And the Active Wealth Show will be right back.

Producer:
What 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 a mirror 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. There are several.

Ford Stokes:
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.

Producer:
Ford 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.

Ford Stokes:
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.

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

Ford Stokes:
Currently investing in a variable annuity, your funds could be in serious trouble if the market experienced any downturns.

Producer:
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 Amara Life? I'm Matt McClure.

Producer:
Thanks for listening to the Active Wealth Show. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes.

Ford Stokes:
Welcome back activators. The active wealth show. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis here with us. And Sam, we were talking about my friend Mike that I had dinner with. Also, just want to give a shout out to Mackendrick steakhouse up there in Dunwoody. Um, you know, a lot of us is. Professionals, and we're working hard and we don't really take the time to celebrate. Friendships or. Celebrate, you know, big wins professionally. I got to tell you, Sam, the service level at Mackendrick's was unbelievable. The food was fantastic. I had the. The bone in filet, which is off the menu and was able to order that. You don't want to do that every day, right. But it wasn't a rib eye. It was less fat. And. You know, we got asparagus with it and salads. And I did have the mashed potatoes, which were amazing. And I got the I was smart though, Sam. I got the the brownie sundae. I got two of them for the ride home for Diane and the girls. I didn't have a dessert, but I got to tell you, man, they were just. Just so fantastic. And just shout out to Mackendrick's. Thanks for taking great care of us early this week. And. We do need to celebrate. You do need to get out to that steakhouse and get out to the club, or whatever you need to do, and and go get a great meal with your family, or get a great meal with your friends.

Ford Stokes:
And it was just great to catch up with a friend I hadn't seen in a little while. I'm not going to get into how much of what the percentage is, but let's just say it's a low percentage of his total assets. And he's able to take care of his entire. Retirement income needs. With one product. Defer for 12 years and let it go. And we're seeing this trend. I'm working with a lot of manufacturing guys like I said that are in their 50s. And they've got it in them because they're real men's men. Man, I'm telling you, these people are in manufacturing. They are. Real men work on their feet all day and do all kinds of stuff, and they're like, you know what? Bored? I've got it in me to make it to 63, 64, 65 years old, maybe not 67. I've got it in me. And I want to do it. And they're real macho and and. They want to defer, but they they want something they can count on. And they were concerned about the markets or concerned about the current political landscape. And if you are, I would encourage you to consider.

Ford Stokes:
Investing a portion of your assets into a fixed indexed annuity. We we've got access to like 40 plus of these different types of products. It just so happens that the one that everybody really selects with us now is the nationwide peak ten. We we also work with Thilak and Allianz and American Equity and Athene and all these other companies and AIG. But I will tell you this nationwide peak ten now with all the rates having gone up, is significant. And they've done a great job. Here's all the factors on this nationwide peak ten product. When he invests 500 grand, he's getting $100,000 into the income account. Day one. So 20% of media bonus. So his income account value is 600,000. Then he gets an 8% roll up every year on his account value. Simple interest. Every year he defers. He's going to defer for 12 years, 12 or 13 years. He gets 350% participation rate in the BNP Paribas Global Factor Index. That follows the global healthcare market, which is really helpful for retirees. If you can keep pace with health care inflation as a retiree, when health care is going to be one of your larger expenses. And Sam, I know you've got some information on that here really quick as part of our inflation demonstration, that's a good thing to getting an income you can never outlive, but also getting a significantly high percentage of the money you put in is a big deal.

Ford Stokes:
So I just feel like the nationwide P ten is a no brainer to consider as replacing 20 to 40% of your assets that are in bonds. When bonds have lost value over the last three years because of interest rate risk and also reinvestment risk. That are not really associated with fixed indexed annuities specifically on the interest rate risk. And you could also delete the advisory portfolio fees. Because we as advisors aren't going to double dip. We can't double dip. The insurance company pays us a commission on the front end. We're responsible for servicing that annuity contract for the life of the contract, and we're good to go. So I would just encourage you to consider giving us a call at (770) 685-1777 to learn more about how a fixed indexed annuity could help you. And if you've got questions about this specific product from an A-rated mutual insurance company, we'd love to help you. I'd love to answer any questions you have and also give you your own illustration. Think you're going to be surprised by what it looks like? Sam, your thoughts on that? And then also let's dive into the inflation demonstration.

Sam Davis:
Yeah. Well, first off, you know, with Social Security on the ballot really in 2024, I think that the need to really shore up that income plan for your retirement is becoming more important than ever. We've talked about how the trust funds on Social Security are projected to run out in 2034. You're looking at maybe a 25% cut in benefits. And the government's only solution to fixing that problem is increasing taxes, cutting benefits, or both. So, you know, it remains to be seen how much the election will affect the markets in 2024, but it's definitely going to have an impact on Social Security. It was ever in the white House. Whoever's in Washington, D.C., for the next four years and beyond is going to have a significant role in determining what happens to Social Security. So I would just ask, do you really want to wait and find out what Social Security can pay after you decide to retire? I think we believe a better idea is to get started on that income plan now, so we can account for Social Security, what it may actually be like, but also taking into account some of these personal pension options for your retirement. So you can kind of get to the guarantees and really just start to put that whole retirement income picture together. Yeah.

Ford Stokes:
For people that are where income is important for you during retirement, if you think income is going to be important during your retirement years, I would definitely encourage you to reach out to us at ActiveWealth.com for sure. Also, Social Security is on the ballot. The only people that are talking about it are the Republicans in my opinion, the. Democrats are trying to use it as a political pawn and trying to use it as a crisis thing and saying that, look, Republicans are trying to take your Social Security, which they're not. They're trying to actually solve it. The spending from both sides of the aisle have really killed us. And. The Ooci Trust Fund is due to be depleted according to the Social Security Administration, by 2033. To clarify then, the years and also they're saying it's a 23% across the board cut.

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

Sam Davis:
Our inflation demonstration for this week we're taking a look at the Thanksgiving dinner table. According to the Bureau of Labor Statistics, grocery prices are up nearly 17% over the last two years. Last year, the inflation rate was running at 13%. This year, it's a bit lower. The inflation rate for food at home was at 2.4% so far this year. Here are some highlights for inflation on your Thanksgiving table. The cost of russet potatoes is at an all time high, rising 14% from a year ago. You're looking at $1.17 a pound for potatoes there. Sweet potatoes have increased in price as well, up 4% over the last 12 months. Canned goods are really seeing a spike in inflation. Canned green beans are up almost 9%. Canned cranberries have increased 60%. Same. Irving's tip fresh cranberries would cost you 20% less. So if you've got to have your cranberry sauce, maybe go fresh this year. Also, canned pumpkin, up 30% from a year ago. Beer and wine on a lot of Thanksgiving tables are up 5.3% and 1.2%, respectively. Half of surveyed adults say inflation will alter Thanksgiving food spending this year. So regardless of how much you're spending for Thanksgiving this year, I hope everybody has a great Thanksgiving holiday. And when the Active Wealth Show comes back, we're going to talk about how Americans are living longer. But how are we going to pay for it? The active wealth show will be right back.

Cold as ice. You're willing to sacrifice our love.

Producer:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer. With soaring inflation continuing to wreak havoc on everyday budgets, there's never been a more important time to cut costs. But do you know where to begin? I'm Matt McClure with the Retirement.Radio Network. Powered by a life. There is no question costs have been soaring.

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

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

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

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

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

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

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

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

Ford Stokes:
All right. Welcome back activators I'm Port stokes chief financial advisor. Got Sam Davis here. On the board with us is our executive producer. And Sam your inflation demonstration was really informative on what's going on with the Thanksgiving dinner table and and how it's just more expensive to put on a Thanksgiving dinner these days. One thing that just was that struck me that I thought was remarkable is every single number you gave was higher than. 3.2%, which is the cost of living adjustment. That Social Security Administration is going to give out starting next year. They announced in October. I think it's really interesting that. Everybody really needs to understand that we are losing buying power. Especially if you don't have a plan for inflation. If you start with a negative retirement income gap. That gap is going to widen over time because of inflation. You're much better off to start with a positive income gap. Specimen here in this decumulation phase. Spend all this time you work for 40 plus years, you're accumulating wealth. And then you stop working. The income goes away and. Then you've got to start distributing from your own assets and give you your own paycheck. And we can help you build your own personal pension. All you got to do is visit us at ActiveWealth.com. We can help you with that. We can also help you with managed portfolios with strategic asset allocation and tactical asset allocation as well. But if you want to build your own personal pension, you didn't think it was possible. We can definitely help you also. You know, some people say if you don't think pensions are important, try taking one away from somebody. See what happens then. So if you want to get your own personal pension. We can help you do that.

Sam Davis:
All right. The next thing we want to talk about on the Active Wealth show is that Americans are living longer, but how are we going to pay for it? One and two five year olds alive today will live to see 100. That's according to researchers at Stanford University's Center on Longevity. I'll say that one more time. One in every two five year olds alive today will live to see 100, according to Stanford University's Center on Longevity. Now, most people expect to surpass the average Americans life expectancy, which is currently 77 years old. But if you think you'll live to be 100 or anywhere close, you'll need to be prepared for it. The big challenge here is having enough income and savings to live on during retirement. If you retire at a typical age of 65 and live to be 100, that's three and a half decades or 35 years, and we're going to get into some of the numbers. But for I know that here at Active Wealth Management, whenever we do plans for folks that come in, we're always doing it to the 95th birthday at least.

Ford Stokes:
Yeah, it's pretty remarkable. I'd say that CDC is saying that if both. Members of a married couple. Both spouses. Lived to be 65 years old. There's more than a 50% chance. I think the number is actually 60% or greater. The one of the two spouses can live to be over 90 years old, which is remarkable. And so. If that's the case, let's say you retire at age 60. You're going to end up being retired almost as long as you worked. And so I would really encourage you to consider. Doing something a little bit different and making sure that your money's going to last and you can outlive your money. And that's replacing bonds with fixed indexed annuities. That's also implementing some smart risk strategies with structured notes. And. Strategic and tactically managed asset allocation portfolios. So you don't ride the markets all the way down to the bottom of the valleys. When there are valleys and you can weather the storm and also you're following the first, you know, the top two rules of investing, according to Warren Buffett. Rule number one is just don't lose the money. Rule number two is don't forget. Rule number one. So. Our goal at active wealth is to do everything we can to protect the assets of our clients. And that's number one, mission number one. And then the second goal is to grow. And our tagline is protect and grow. That's what it is. And we live by it every day. So now Sam, you've got some interesting rolled up. Numbers on how much food and health care and everything is going to cost our retirement. And there's some remarkable numbers. Yeah.

Sam Davis:
So let's say you retire at the typical age of 65 and you're lucky enough to live to 100. So let's take a look at food first. The most recent Bureau of Labor Statistics Consumer Expenditure Survey estimated that food at home spending for 65 and older is $4,800 a year. So you take 4800 times 35 years of food. We've got $168,000 that we'll need just for food in a 35 year retirement between the ages of 65 and 100. So food is definitely non-discretionary. And here's another non-discretionary expense health care. Medicare only covers so much. So total annual health care spending, including insurance premiums, Medicare, other related costs. You're looking at $7,540 annually for people over the age of 65, so 7540 times 35 years of health care. That's almost $264,000 just for health care in retirement. And that's for one person. So that is a big expense as well. The next one housing. Now, living in your own home can be fairly inexpensive, especially if you've paid off your mortgage. But the expenditure survey found that housing costs are about $20,300 per year, on average for people living over 65. Because you'll still have your taxes, you'll still have your utilities. You'll still need to update things from time to time, but 20,300 per year, that is going to end up being $817,000 through three and a half decades of retirement. And the last item before we kind of total up the cost of living to 100 retirement costs for incidental and discretionary spending. So the BLS found that you'll need to allow about 14,500 a year between transportation, entertainment, travel, other costs like that, such as clothes or eating out. This means 35 years of incidental and discretionary spending will cost $507,000. So if we add all that up, 35 years of food, 35 years of health care, housing and incidentals, 35 years of retirement could cost 1.75 million. And for the real wild card to consider is how much time you may need to spend in an assisted living facility because long term care costs can significantly impact your retirement savings.

Ford Stokes:
Yeah, I think they said that it's. 6.9 people out of ten are going to need some sort of long term care in their lifetimes. And as you're driving around, you're listening to this show. I would just ask a question, okay. Are you one of the 3.1 that aren't going to need long term care? Do you know that for sure? And, you know, a lot of people self-insure on long term care. I don't really recommend it, but a lot of people do. They'll use the house to pay for it. You know, when they sell and and move into the assisted living facility. But then there's drawing down the assets. So just be careful. Get a plan for it. And we're happy to help you do that. It's the.

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

Ford Stokes:
So on this week's show, we talked about rising costs of inflation for the Thanksgiving dinner. And what is going to take to put stuff on the table this year for Thanksgiving? We've talked at length and in detail on an annuity called the nationwide Peek ten that many of you are calling us and taking advantage of and making sure you're getting your 20% bonus or 8% roll up, 8% guaranteed interest each year that you defer withdrawals in a 350% participation rate, and how the BNP Paribas Global Factor Index does less than 1% spread rate, which is if the index goes up 10%, you get 34% 35%, less than 1% spread rate. And they're just seeing it where it outstrips any 4% withdrawal strategy. They really want that. So I'd encourage you to reach out to us at ActiveWealth.com, and we're happy to help you there. And we also went through. The incredible cost overall of $1.75 million during retirement. Now, obviously, Social Security is going to help you out with that, but also the money you're going to generate from your assets will help you as well. Let us help you get a full plan together. All you've got to do is reach out to us at ActiveWealth.com. And next week we're going to talk more about ways that you can build a smart retirement plan for you and your loved ones. Be sure to come right back and listen to us next week on the Active Wealth Show and have a great Thanksgiving week, everybody.

Producer:
Thanks for listening to the Active Wealth Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free consultation, call your Chief Financial advisor, Ford Stokes, at (770) 685-1777 or visit ActiveWealth.com. Investment advisory services offered through Brookstone Capital Management LLC. Bcm, a registered investment advisor.

Producer:
Bcm and Active Wealth Management are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. 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, exist. Please refer to our firm brochure, the ADV to a page four for additional information. With the traditional 60 over 40 portfolio having its worst year in more than four decades, now may be a great time to consider more than just stocks and bonds. Ford Stokes, author of Annuity 360 and host of the Active Wealth Show, wants to help you retire with peace of mind. Schedule your free consultation today at ActiveWealth.com. That's ActiveWealth.com.

Producer:
Investment advisory services are offered through Brookstone Capital Management LLC, a registered investment advisor.

Producer:
We have Ford Stokes, author of two important personal finance books, Annuity 360 and taxes are on sale here on Am 900 and. The answer as the host of the Active Wealth Show Saturdays at 12:00 noon and Sundays at 11 a.m..

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you’d love including automated subtitles, secure transcription and file storage, collaboration tools, upload many different filetypes, and easily transcribe your Zoom meetings. Try Sonix for free today.