Protect and Grow Your Retirement with the Nationwide Peak 10

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

Ford Stokes:
And welcome to Retirement Results result drivers. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis, our co-host and retirement income specialist here with us on the show this week. And we've got a big show today. We've got a really important show today. We've also got Josh Lumme with AmeriLife, which is one of the largest wholesalers of fixed indexed annuity products and life insurance and and Medicare supplement and Medigap supplement plans, Medicare Advantage plans. They're a major wholesaler, but they're they've partnered with Nationwide insurance company. Yes. Those folks nationwide who's nationwide is on your side. On a project called the Nationwide Peak 10. We're going to dive deep into that. I've never really heard or seen on financial and radio shows where you actually get the detail of how you could replace the bonds in your portfolio with a fixed indexed annuity, and what are the features and benefits of a specific fixed indexed annuity product. And we're going to dive into that today with Josh Lumme. Um, in segments two and three, I think you're really going to like this interview that we're going to do. I can't wait to talk to, uh, Josh, you know, Sam, he's a he's a big advocate for us. He's a great guy. But he's also so knowledgeable on fixed indexed annuities. And I think our result drivers are really going to like listening to us, talking to Josh at the second and third segments. So glad he could make time for that.

Sam Davis:
Yeah, absolutely. And I hope all the result drivers out there are having a good weekend. Thank you to everyone out there who has listened to the show, sent us your messages. We appreciate the support. Thank you for everyone who called (888) 814-0304 or dialed pound 250 and said Retirement Results to get in touch with us today forward. We even had some people go to Retirement Results. Com and schedule a complimentary no obligation consultation. They're just at RetirementResults.com. You can click that button in the upper right-hand corner. We're here standing by to take your calls this weekend. And really just appreciate your support. And we're back here for some more very important information to help all of you prepare for a retirement that you can be confident in, because we want to help you plan now so you can retire with confidence later.

Ford Stokes:
Also, we want to give a shout out to John Fredericks and the John Fredericks Radio Network. First of all, thanks, John, for having me on your show. And and if you want more information about that interview that I did on Wednesday with John while he's trucking around America, he was in Iowa. Now he's heading to New Hampshire and all that stuff. I would encourage you to check out RetirementResults.com. That episode is up on on RetirementResults.com. I want to make sure everyone that can hear the sound of my voice in our nine states across 18 stations. Now, the Congressional Budget Office came out and gave a projection and a revision of that projection in January of 2023. And we're concerned that it's going to be an even shorter revision and projection at the end of this month. But I wanted to make sure everybody understands the old Age Survivors Insurance Trust Fund, the OAC, that trust fund, according to the Congressional Budget Office at CBO. Gov. They are projecting that that trust fund is going to be 100% depleted by 2033, which is nine years away. We're in 2024. Right. And when you're writing checks right now, Sam, you're writing a very few people writing checks these days.

Ford Stokes:
But the people that are there, they're putting in 2024, that's nine years away, folks, where the OAC trust fund would go away. And what does that mean? That means that across the board, there would be a 23% retirement income benefit cut across the board for Social Security income benefit recipients in 2033. That's nine years away. So you really do need to have a retirement income plan for your retirement. It's also likely that you're going to one of the two of you in a married couple are going to live to be over 90 years old, according to the CDC. If both of you live to be at least 65 years young, that longevity risk is real. We need to have a plan for that. But today we're going to do the quote of the week. Sam's going to share that here in a second. We're going to talk about why millions are financially unprepared for retirement and how we can help. And then we've also got a problem solver in segment four. And we may also talk about how we can help listeners like you, um, right after this financial wisdom quote of the week.

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

Sam Davis:
This week's quote comes to us from Jim Rohn, the renowned motivational speaker and life coach who offered many valuable insights about financial planning, goal setting, and the pursuit of a purposeful life during retirement. And Jim Rohn once said that financial independence is the ability to live from the income of your own personal resources.

Ford Stokes:
Yeah, I would say it's almost part of the American dream, right? I think buying your own house, paying for your house, owning your house eventually is part of that American dream. Raising your family and your own home. That's one thing. The next, in my opinion, is to be able to generate income where you no longer have to depend on an employer to pay you an income from your own resources. I think that is remarkable. And we're going to teach you how to do that more easily and how to build your own personal pension, um, in segments two, three and four, uh, during this show today, and also teach you how to potentially replace the bonds in your portfolio, the bond portion of your portfolio that have been there typically for retirement income. And also, I would just ask you, why are you paying advisory and portfolio fees for the bond portion of your portfolio that is just supposed to be there for income? It's not there for growth, right? So we're going to talk more about that with Josh. And we're going to dive deep into that topic and that subject in segment four. Let's next talk about how so many people out there have done a great job at saving from retirement, but haven't put the right plan in place to ensure that they will achieve financial independence.

Ford Stokes:
And there's unfortunately, there's millions of Americans that are unprepared for retirement. And by the numbers, Sam, more than half, 52% of Americans are not on track to comfortably pay for their retirement, according to the recent report from fidelity, which is one of our, um, custodians, the nation's largest provider of 41K plans. Also, nearly half of the US private sector workers, roughly 57 million people, don't have access to an employer sponsored retirement plan like a 401 K, A, 403, B 457, etc. and unfortunately, they're not on that track to do forced savings. I just really hope that people that can hear the sound of my voice. If you're an independent business owner, you can get started with a Sep IRA, we're happy to help you. All you've got to do is visit RetirementResults.com click that schedule a consultation button in the upper right corner. We're happy to help you. Also, you can dial pound 250 and just give the keyword Retirement Results. That's pound 250. Give that keyword Retirement Results. We're happy to help you with that as well. And you can call our toll free number at (888) 814-0304. That's (888) 814-0304.

Sam Davis:
You know, Ford, you were talking about the American dream and all the things that financially we think about when we think about the American dream, like owning your own home, finding that financial independence. And I feel like part of that financial American dream used to be the pension plan, the defined benefit plan. But only about 1 in 10 Americans working in the private sector today are able to participate in a pension plan. But a lot of people out there don't know, and we try to come on every single week to let people know that you can generate your own personal pension. This is something that you can establish for you and your spouse, for your retirement, to have that lifetime income. And the reason why I think it's part of that financial American dream, is that you don't want to have to worry in retirement. You've worked three, four decades, maybe longer until you reach retirement, and you want to be able to enjoy that life that you've built for yourself. And that's why if you don't have access to a pension, I think looking into some personal pension options and we're going to talk about some what Josh Lumme and later in today's show, I think that's a great place to start.

Ford Stokes:
No question. Also, you know, Gen Xers and Millennials are far less likely to have traditional pensions than their baby boomer counterparts. Um, and so that was another interesting thing that you got influencers and people that are they're doing independent contract jobs or doing Amazon stores or all kinds of things. We've got one minute left. I don't know if we can get through this, but Sam, can you just quickly go through the essential questions that our listeners should be asking themselves about being prepared for retirement?

Sam Davis:
Yeah, I think people need to start with the basics, figure out what your budget is, and then figure out how much income will I need to live on in retirement and more importantly, how am I going to generate that number? So if it's 4 or 5, $6,000 a month, whatever your needs are. Figure out what that number is and then figure out, okay, exactly how am I going to generate it. And then, you know what? If that cost of living, what if inflation continues to increase at a rate greater than we expected? That's something you're going to want to think about and be prepared for, and how much uninterrupted, increasing income can all of your assets and your portfolio actually generate. We can help you figure that out as well. The actual income value versus the account value of your portfolio. And also Ford, we've been talking about this the last couple of weeks. What if tax rates get to the point where these income taxes actually start to reduce your spendable income month by month? These are some questions to ask yourself. And we're going to be talking about personal pension options, specifically the Nationwide Peak 10 on today's show, which can be a great solution to a lot of these concerns. Yeah.

Ford Stokes:
Come right back. We're going to talk to Josh Leumi with the AmeriLife and talking about fixed indexed annuities, the potential bond replacement, and also talk specifically about the Nationwide Peak 10 fixed indexed annuity product and give you real details about the features and benefits of that product and how it could help your retirement portfolio. Come right back. You're listening to Retirement Results right here on the John Fredericks Radio Network.

Producer:
Retirement Results. We'll be right back. To learn more and schedule your free retirement consultation, dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results. You're listening to Retirement Results. And now back to the show.

Ford Stokes:
And welcome back result drivers. This is Ford Stokes chief financial advisor. And we've got Sam Davis our co-host and retirement income specialist. And we've got a very special guest that we've talked about at the beginning of the show. We've got Josh Lumme with Vertical Vision, Financial Marketing in a AmeriLife and a AmeriLife is a strong wholesaler of fixed indexed annuities, life insurance, Medicare supplement insurance, Medigap supplement insurance plans just about anything that's life insurance and annuity based AmeriLife wholesales billions of dollars of and. I just really appreciate Josh, you being on the Retirement Results radio show here on the John Fredericks Radio Network. And it's really great to have you, because I we're going to talk about real specific things about how to generate retirement income during retirement during your 35 plus year retirement. And just thanks for being on the show. Yeah, well, thanks for having me foreign. It's good to see you again. You too, buddy. There's a lot of people that are doing bond replacements. They're replacing the bond portion within their portfolio, which is the income portion of their portfolio. They're putting into products like fixed indexed annuities or life insurance. If they're if they do it early enough, because the cost of insurance for people that are older is higher. Or they're putting in structure notes or putting in bank CDs or brokered CDs, but they're replacing the bonds because of the performance of bonds over the last three years. Um, the 6040 portfolio had its worst year in 41 years in 2022, as an example, and that spurned a lot of people to go ahead and and get going on replacing the bonds in their portfolio. Also, they're looking to delete the advisory fees and the portfolio fees from the income portion of their portfolio. Can you talk about why now may be the best time to consider replacing the bonds or the income portion of your retirement portfolio with fixed indexed annuities?

Josh Lumme:
Yeah, that's a great question, Ford. Uh, now is the time, because the interest rates available and the guaranteed income payments available with fixed indexed annuities are higher than they've been in a generation. Uh, I've been doing this for a little over 12 years, and and I've seen it all kinds of different ways as far as the income and the rates. And yeah, this is the best that I can remember. So, um, in clients are seeing that as well, because if the numbers are in for the end of the year with FIAs for 2023 and it was almost $100 billion, it was that, wow, uh, that, you know, that big. So the the clients are responding to the safety of income and the fact that they can, you know, replace the bonds in their portfolios or, you know, other income providing investments over to annuities, and then they can sleep at night and have some figures I can share with you later that will really solidify that.

Ford Stokes:
No, that's great. And so also what's the financial reserve requirement we've talked about on this show. But I want to make sure that our radio listeners and we call our radio listeners here at Retirement Results, we call them results drivers. What's the financial reserve requirement on a fixed indexed annuity as opposed to a bank CD.

Josh Lumme:
Fixed indexed annuities or annuities in general, it's dollar for dollar for the the liabilities. Uh, most of the carriers, the higher rated carriers will, you know, will have a, you know, a dollar, $2, $5, ten. Um, you know, your high rated carriers will do that. But, uh, you know, with the with the banks, they, they loan out that money. Right. And I think it's.

Ford Stokes:
3 to 10% for bank CDs. And what you're saying is it's a 100% at least financial reserve requirement because the fixed index annuities or any type of annuities are an insurance products are regulated by US states versus the federal government and the FDIC regulating uh, banks. And the states have to balance their budgets. And so they want to make sure that the policyholders can get paid back their money. So they require a 100% financial reserve requirement. Is that right? Yeah.

Josh Lumme:
Because we're we're dealing with insurance. You know, we have to insure the client's principal. We have to insure the income. And, you know, so if push comes to shove, we gotta know that there's, you know, 100% of that money is safe. Right? Right.

Ford Stokes:
And you mentioned that you're dealing with insurance. You have to insure the principal. It's interesting. During the 1929 stock market crash, like over 60% of the US banks actually closed their doors and only 40% of those banks ever even reopened within ten years. Whereas the 100% financial reserve requirement, insurance companies and annuity companies, none of those closed their doors. And for people that are concerned about, you know, we're in an election year. We've had, you know, social unrest, we've had a pandemic in the last four years. We've had all kinds of stuff that's happened. And it's been remarkable. All the things that the US consumer and specifically the US pre-retiree and retiree have had to deal with. Um, it's much I think it's a lot more peace of mind for people to invest into a 100% financial reserve product, like a fixed indexed annuity, or like any type of annuity that can give you income for the rest of your life that you can never outlive. That also can give you market like gains without market risk. But some of the figures you can also share. I want to dive deep into a specific product so many times where everybody hears things about annuities, but they don't hear specifics, they don't hear features and benefits of products.

Ford Stokes:
And I want to dive specifically into this right now. So they've got 100% financial reserve. That's one detail. But also, can you share a little bit about why with the higher interest rates, why that's allowing annuity companies to have more money left over, to be able to invest in the underlying indexes and options in the indexes, and therefore generate a higher rate of return for those annuity owner was I feel like it's one of the best times ever to invest into a fixed indexed annuity or any type of annuity because or specifically fixed indexed annuities, because they are tied to underlying market indexes and because that 100% financial reserve requirement, they've got to invest 100% of the money you give them into the ten year US Treasury. With the ten year US Treasury now paying out over 4%, it's like 4.5 4.6%. Historically through my career since the early 2000, in this industry, you're looking at 1.4 to 1.8% average rate of return on the ten year US Treasury. Now, annuity companies, they have more money to work with to be able to invest in options. And they can take a share of the gains and give you a majority of the share of the gains. Isn't that kind of how it works.

Josh Lumme:
At a high level? That's how it works. It's a really cool process. Um, you know, I've been, you know, like to. Is to see that, you know, in action and a few others, but it's really neat. Those guys are wearing lab coats. Oh, that's all that stuff. But they're buying options based on, you know, the type of product that you're in and, you know, with their with their internal investments. Um, so when their internal investments that are tied to the Treasury make more money than they have a higher budget, right? You know, that's been great for accumulation. Annuities with really high participation rates were really high caps with the S&P 500. Um, you know, that's been great. Um, but where we've seen the needle move the most is with the income products. And income products are are like a long terme liability for an insurance company because they're, they're tied to just the payment. And and so they when the interest rates get to where they are now, they can make those types of products really attractive. And to give you some comparison, you know, with the banks and CDs or your checking accounts and things like that, you know, you could put money in there and draw off that, that interest. But what's it going to be for it? It could be 4%, it could be 6%. And that certainly could go down over the next few years. And then what you do, whether you're, you know, 60, 70 or, you know, 80, you could take, you know, a portion of that money and put it into one of these indexed annuities. And, for example, for a 65 year old could get 7.5% of whatever their principal investment was in that annuity for the rest of their life. Yeah, we.

Ford Stokes:
Normally recommend between a 3.2 and 4% withdrawal rate. And so if you can get a 7.5% payout factor on a portion of your income, uh, the income portion of your portfolio, if you will, that really helps, because that allows you to let the rest of the portfolio grow. And so many people, you know, retirement is really more about generating an income that is about just building one big nest egg. A lot of people don't realize once you stop working, guess what? You're accumulation phase is over, and then the decumulation or the distribution phase starts. And I just implore our clients and our prospects that we talk to. And right now, Josh, you've got 18 stations over nine states that are listening to the sound of your voice. And anybody that's hear me, if you can get more efficient and more effective in generating income and generating a higher income for a portion of your portfolio, you're going to be much better off and you're going to enjoy your retirement a lot more as well. But when we come back, we're going to talk more about why now is one of the best times to invest in fixed indexed annuities. And we're going to do a deep dive into the Nationwide Peak 10, which is one of the top fixed indexed annuity products out there on the market with Josh Lim with Amira Life. Josh, thanks so much for being with us. And we'll be right back on Retirement Results on the John Fredericks Radio Network.

Producer:
The national debt is out of control, but your financial future doesn't have to be. Get on the path to a debt free retirement and schedule your free consultation now by dialing pound 250 from your cell phone and using the keyword Retirement Results. That's pound 250. Key word Retirement Results. Nationwide's peak ten fixed indexed annuity has arrived. Pten is designed to help provide a guaranteed lifetime income stream and offers protection against market losses. With Nationwide Peak 10, you'll benefit from the flexibility to choose 1 or 2 year terms, protection for a spouse through a joint option, and an immediate 10% penalty free withdrawal. One of the attractive benefits of peak ten is its optional bonus income Plus rider, which includes a 20% bonus based on your principal apply to your income benefit base. Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal. Dial pound 250 and use the keyword Retirement Results to connect with a qualified adviser. Now that's pound 250. Key word Retirement Results and discover how peak ten can help you plan now to retire with confidence later. Indexed or fixed annuities are not designed for short terme investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company. They may include higher surrender charges, longer surrender charge periods or lower caps. Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within 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 Brookstone Capital Management, LLC.

Ford Stokes:
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Producer:
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Ford Stokes:
And welcome back result drivers I'm Ford Stokes, your chief financial advisor. I've got Sam Davis and we've got Josh Lyman with the AmeriLife, which is one of the largest wholesalers of fixed indexed annuity products in the country. And we were just talking in the last segment. Josh, it's now that one of the best times ever to invest in fixed indexed annuities because of the higher interest rate from the fed. And now I'd like to kind of dive a little bit more deep into a single product so that all of our listeners can understand really how these fixed indexed annuity products work. Usually when there's education about fixed indexed annuities, it's usually about, well, it's all general and it's brand driven. And yes, this Nationwide Peak 10's got a really great brand because nationwide is an A-plus rated carrier. They're nationwide, they're on your side and all that stuff. But it's a proprietary product that you folks at America Life help develop with nationwide. And I wanted to at least let give you the opportunity to kind of talk about that product. Let's talk about the bonuses available. Let's talk about the participation rate that's available and also what they call a roll up. And then also the the two year protection period on it. That's a lot. That's a mouthful. But I'd like to really make sure that everybody understands in this segment all the features and benefits, or at least the top features and benefits to the Nationwide Peak 10 fixed indexed annuity, which is a ten year product. And you can talk about why, what is a ten year product, things like that. But if you could just give us a little bit more detail about why someone should consider investing in the Nationwide Peak 10 fixed indexed annuity and and how it could benefit their retirement.

Josh Lumme:
The Nationwide Peak 10. It's a it's a ten year fixed indexed annuity. So when we say ten year it's a ten year surrender charge window. That's how long the product duration is where you'd have to pay a penalty to to withdraw more than 10% of your money. With this. It's paired with a lifetime income rider that has a 20% income bonus. So when when you make your premium deposit, they're going to apply an additional 20% to that number, um, to jump start your income growth.

Ford Stokes:
So when somebody's invested, let's say maybe they've got 1.5 million, they want to take 33% of their assets and invest $500,000 into the fixed indexed annuity. That's called the Nationwide Peak 10. They would receive 100,000 bonus immediately. Is that right? And that that would be a resulting of a $600,000 income account balance. Is that correct?

Josh Lumme:
Correct. Wherever you are in retirement, you could turn that income stream on right away. Or maybe you're still working. And we have a strategy where you need to wait, you know, 3 or 4 years or ten years to turn that income stream on. You can do that. And so, uh, each year that you wait, you're going to receive an additional 8% credited to that account. Um, you know, so after after ten years, that's a pretty big guaranteed income account that you can take that income for the rest of your life. Or if you'd like, you can add your spouse and take a joint lifetime income that would cover, you know, both your lives, you know, like to say, insure incomes for both the both you and your spouse.

Ford Stokes:
Yeah, it's a good time to break in here. First of all, it's remarkable you can get a 20% immediate retirement income bonus. That also helps you generate a higher income amount than you can get just from doing your a normal 4% withdrawal from your overall portfolio. But I think it's remarkable to be able to get that kind of income bonus that that is something else. And then you also get the chance to grow that 8% guaranteed each year that you defer any withdrawals, 8% is higher than what you can get with bank CDs right now. And that's guaranteed. It's it's contractual. But can you talk a little bit about what the upside is for the account value as well? Because there's significant participation rates with this product as well. And that BNP Paribas Global H factor index, which BNP Paribas is that big, huge French investment bank and bank. Just talk a little bit about that. If you would, not.

Josh Lumme:
Only do you get the guaranteed income in the nationwide peak, tens guaranteed income is highly competitive. Um, but you're also getting accumulation potential now historically with income annuity, you know, we're it's expensive to insure, you know, lifetime income. So you know, that comes in the form of lower interest rates for your overall account growth. But that secondary to the income that you're that you're worried about. Um, but now, you know, we talked about earlier with the Treasury, you know, being, you know, around 4.5% that's almost, you know, eight, ten x where it was just two years ago. And so that's allowed for them to not only pair high income, uh, strains for the client, but also pair it with high accumulation. So you mentioned that the BNP Paribas Global H factor. They have a two year protection period, uh, at a 350% participation rate. And you're probably thinking, well, what in the world does that mean? Uh, what that means is whatever that return is over that two year period, you're going to get a 350% of whatever that was. So if it was a 10% return over that period, you'll get credited. Credited 350%.

Ford Stokes:
Yeah, less than 1% spread rate. Is that right?

Josh Lumme:
That's correct.

Ford Stokes:
So it'll be 34% net over two years in the growth of your account value. That also should if it if it does well should and could, especially with the 8% roll up to it could outpace the withdrawal rate. Whenever you do turn on withdrawals. And that's that's a really good goal to have.

Josh Lumme:
It certainly could. And I've seen the projections on on how that could look, um, even with just a conservative average interest return with this annuity. And, and that's a nice feature, uh, because, you know, we are living in the inflation age and, you know, ten years from now, if you're if you're pulling out $50,000 a year from your annuity, it's not going to have the same buying power. So if there's a, you know, the potential to see a step up in income, if the if the market's doing well, I think that's a, a huge added value that, uh, you don't get with a lot of products.

Ford Stokes:
Yeah. Also, you know, with only 14% or less of the S&P 500 companies still offering a pension, a lot of people don't understand that they can generate their own personal pension with a product like this. That is like the nationwide peek ten. That's also far, far superior to what the normal pension is you can get from a company, because most of those pensions are are called spias single premium immediate annuities, where they turn on income immediately, i.e. right when you retire. Right. Whereas these fixed indexed annuities, they're they're called deferred annuities. So you've got to you really need to defer a year. So you need to have enough money on hand to be able to live for a year. And then you can turn on income if you want a year later. But because of that you also get this index linking and this index crediting option. So however the index does they're giving you three and a half times how that index does less 1% each every two years during that those protection periods. And then also Josh, let's say that the index goes down over two years. There's only positive growth or no growth. Is that right?

Josh Lumme:
That's correct. And so that's kind of a superpower with annuities. Uh, you know, an advantage that they have over, you know, traditional investments is so if the BNP global factor, you know, lost 15%, you're going to get credited the nothing. You just get a zero. Uh, if you're in the market, you know, tied to whatever index, you would have lost money. And so you're going to have to make that up and it's going to be more than 15% to get back to even. And so with the annuities I mentioned, you know, one of their superpowers is this, this reset, you don't have to make up anything. You just start from where you left off. And so then you get to ride that wave as that rebounds. And that could end up being a higher return for you.

Ford Stokes:
Yeah. With almost all fixed indexed annuities. You know, they never retreat. They never lose principal or account value and they only advance. Um, yes. There's some annuities that have got like a 1% fee involved in an annual basis, but with a two year protection period at the end of the two years that you get the crediting options back and you get that crediting interest back, and then you've got a really good opportunity to see your account value grow. The goal with anytime. When we place fixed indexed annuities with clients to replace the bonds in their portfolio and generate important retirement income, we're always looking for how can that fixed indexed annuity in the index crediting option outpace the withdrawal rate when they turn on income so that they've got money left over for their heirs? And or if rainy day ten years later and they want to cash out that fixed indexed annuity, they can with no penalties. Also the with the Nationwide Peak 10 the the surrender period. You said it was a ten year and it goes down 1% a year. Right. So by the year five it's like 5 or 6% or less for them to take out any more than 10%. And they can also Josh correct. They can take out up to 10% of their account value at any given year without any penalty. Is that right?

Josh Lumme:
That's correct.

Ford Stokes:
And we've only got like a minute left here in this segment. And Josh just can you share any thoughts about the Nationwide Peak 10 or why someone should consider investing in a fixed indexed annuity with all these volatile times out there right now.

Josh Lumme:
I just want to reiterate some some numbers here. And I've been doing I've been working with my parents. They're both retiring. We're moving some money around. And, uh, nationwide. Peak tennis was a great option for them. And, you know, so I had mentioned, you know, that, you know, at 65 years old, you can get 7.5% on your money for the rest of your life. Um, well, in, in my parents case here yet. 70. That's it's 8.2%. And so if you look at how, you know, the market's performed over the 20 year period. Uh, you know S&P or what. You know, any of those other indices. We're not going to outpace. We're not going to be able to afford to take that type of withdrawal out of a traditional investment like that. That's because of all the risks that come, come along with that. With an annuity, you can put that premium deposit in, get your bonus, turn that income stream on and and live off that 8.2% for the rest of your life. And, uh, I think that's one of the reasons why annuity business is, is up as big as it is, and why more clients are asking for these types of products, because there's nothing else out there that can offer them, you know, this type of protection and this type of guarantee. Um, you know, that we've seen in over generation.

Ford Stokes:
Well, Josh, thanks so much for being on Retirement Results. We really appreciate you. We also appreciate our partnership with the AmeriLife and Nationwide. And um, we'll definitely have you back on here at least once a quarter and have a great rest of your day. Josh, I appreciate you.

Josh Lumme:
You too. Ford. Good talking with you.

Producer:
You're listening to Retirement Results to learn more and schedule your free retirement consultation, dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results.

And when the band plays pay. The team that won the cannon at You Know It Ain't Me.

Producer:
To learn more and schedule your free retirement consultation, dial pound 250 from your cell phone and use the keyword Retirement Results.

Ford Stokes:
And welcome back result drivers. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis, our co-host and retirement income specialist here. And Sam, what an interview with Josh Lumme a lot of detail there. A lot to unpack for our result drivers and our listeners here to Retirement Results. A couple things I want to make sure you understood. And you heard if you're driving around right now in any of our the nine states that we're covering and you're listening to any of the 18 plus radio stations, I just want to say this, the retirement income is really important. And that what he was talking about right at the end of that last segment, 8.2%, and it could be even higher as it goes up over time, as you age, because you get things called mortality credits. And mortality credits are credits that the insurance companies give you. Annuity companies give you for living longer because at some point people are going to pass away and those annuities go away, or they're paid out as a death benefit, but they can afford to give you more if you live longer and it goes up over time so you can get increasing income. What we're recommending with the 40% of your portfolio that is should be there for retirement income, and the other 60% is there for growth, is we want to give you a higher payout factor.

Ford Stokes:
So instead of a 4% withdrawal rate that we talked about in segment one, you can get 8.2% of your 70 years old with the Nationwide Peak 10 product. And that's effectively more than doubling what you could get from $1 million in your IRA. Let's say you've got let's say a client wants to generate, you know, income from their million dollar IRA portfolio, Sam, with a 4% withdrawal rate, that's $40,000, but with an 8.2% withdrawal rate, that's $82,000. Now, you're not going to it's not suitable to put all of your money into a fixed indexed annuity, but it is suitable to put up to 40, 50, 60, 70% of your money in it if you wanted to and generate that retirement income, if that's your highest priority. But what's a really good idea is doubling the amount of income you can generate from 40% of your portfolio to let the rest of your portfolio grow. And that's what that Nationwide Peak 10 can do. The next is they're giving you an 8% roll up, where you get 8% guaranteed interest growth in the policy each year that you defer withdrawals. The next one is they give you a 20% income bonus immediately on the money you put in there. So it makes an RMD friendly. It makes it transfer friendly. So if you put in $500,000, you're going to get $100,000 immediate income bonus.

Ford Stokes:
That's going to also generate a higher income rate for you when you start taking withdrawals. What we're finding with the nationwide PK ten, when people put in their money, we're seeing 1,011% withdrawals on the original premium four years later. That's remarkable. And that's more than two x. It's two and a half times and more of what a typical 4% withdrawal rate is. The other thing is, if you can get a 350% participation rate in that BNP global h factor index, if that index does 10% over a two year protection period, you're going to get 35% less, a 1% spread rate. You're going to get a 34% net growth on your account value. Now that's not guaranteed, but that's what would happen if the index goes up even 5% a year. The other nice thing about that Nationwide Peak 10 is your principals 100% protected. Zero is your hero. If the index goes down over a two year period, you lose nothing and your principals 100% protected. You also get market like gains without market risk. It's a really good idea, and you also can delete the advisory and portfolio fees out of that portion of your portfolio. So say we want to go ahead and give the problem solver, because I think it'll help explain a lot of this. Today.

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

Ford Stokes:
So today's problem solver. We're talking about filling income gaps with personal pensions. So Mark is a listener to our show. He called in for his free no obligation financial consultation. I would encourage you to do the same. You can just dial pound 250 and use the keyword Retirement Results. That's dial pound 250. All you have to do is hit four buttons. You got to dial the pound sign and then two, five, zero and give the Retirement Results keyword and you'll get. Dialed straight into our phone here at Active Wealth Management. Also, if you just want to call our toll free number, you can call us at (888) 814-0304. That's (888) 814-0304. And you can also visit RetirementResults.com and click that schedule a consultation button in the upper right corner. And if you want to see our primary corporate website you can check out Active wealth.com. So Mark, like I said is a listener of our show. And he called us and he's a 68 year young attorney for the government. He makes a good living. So he wants to keep working and retire in five years at the age of 73, Mark's done a great job saving for retirement and has a total nest egg of $1.8 million. Most of his savings, 1.6 million is in his tax deferred IRA or into his TSP, but basically all tax deferred retirement plan fund money, right? Mark is planning to receive 40,000 a year from his pension at at with the government.

Ford Stokes:
He's been working for the government for at least the last 15 years. And after accounting for he and his wife's Social Security income benefits, they will have a $40,000 a year income gap to fill in order to meet their budget for retirement. Here's the solution. Mark is choosing to protect and invest $500,000 of his IRA money into a personal pension to fill the retirement income gap by delaying withdrawals for five years until he reaches age 73. The cash value of his personal pension or fixed indexed annuity will grow to the point where it can be expected to generate the additional $40,000 a year that Mark and his wife need to live on. During retirement, Mark and his wife will allow the rest of their portfolio to grow until Mark reaches 73 years old and must start taking required minimum distributions, or RMDs. They'll use the additional funds. In their portfolio to travel in retirement, and the goal of eventually leaving a legacy for their two daughters and their grandchildren. This is just one example of what a private wealth management firm can do for you. This is what private wealth management looks like. I encourage you to reach out to us at retirement.com and click that schedule consultation button in the upper right corner. To get booked into my calendar and we're happy to help you. It's the final.

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

Ford Stokes:
So the main points of today is we talked with Josh Leumi, with Amira Life, and he gave us a lot of great insights of why people are investing in fixed indexed annuities. And he gave us specific features and benefits of the nationwide Peek ten, which is a fixed indexed annuity. Sam gave us, um, the financial wizard quote of the week, which was financial independence is the ability to live from the income of your own personal resources, which is really fantastic. And I think all of us can benefit from taking that coaching and making sure we build up our assets, but also have a retirement income plan so we can generate the income from our own personal resources, our personal assets. And remember, if you're seeking information about retirement, if you're going to be a bear, be a grizzly, be as aggressive as possible to get more information on how you can get higher withdrawal rates from your money. How you can reduce and delete the IRS from being your partner in retirement with Roth IRAs, and also delete advisory and portfolio fees by replacing the bonds within your portfolio with fixed indexed annuities and other products. We're happy to help you do that. All you've got to do is reach out to us at Retirement Results. Com and click that schedule a consultation button in the upper right corner. And also you can dial pound 250 and give the keyword Retirement Results to get in touch with us. And also call us at (888) 814-0304. That's (888) 814-0304. Have a great week, everybody.

Producer:
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 free financial consultation, dial pound 250 on your cell phone now and use the keyword Retirement Results to connect with a qualified advisor. That's pound 250 key word Retirement Results. To learn more about our mission and our team, visit RetirementResults.com Investment Advisory Services offered through Brookstone Capital Management, LLC, BCM, a registered investment Advisor, BCM inactive 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 Two-a, page four, for additional information. Fort Stokes is a fiduciary, series 65 licensed financial advisor and president of Active Wealth Management, and he is now offering an exclusive product that can help retirees and those preparing for retirement. Nationwide's peak ten fixed indexed annuity can help protect and grow your savings to generate income you can never outlive. One of the attractive benefits of peak ten is its optional Bonus Income Plus rider, which includes a 20% bonus based on your principal applied to your income benefit base.

Producer:
Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal with Nationwide Peak 10. You can add your spouse and generate joint income so you're both covered for life to help manage inflation risk, peak ten has five index options designed to help provide higher returns than traditional fixed investments may offer. Choose one or allocate among them to further diversify your portfolio, Ford and his team are proud to offer an annuity from nationwide. Nationwide is a strong, stable mutual company with nearly 100 years of experience helping people prepare for and live in retirement. To learn more about Nationwide Peak 10, call Ford and his active wealth team. Dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results.

Producer:
Investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peek ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its entities are associated or affiliated with Active Wealth Management or Brookstone Capital Management, LLC. Indexed or fixed annuities are not designed for short Tum investments and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company that may include higher surrender charges, longer surrender charge periods, or lower caps.

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