Protect Your Retirement from Inflation

9.22.23: Audio automatically transcribed by Sonix

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

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

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

Ford Stokes:
And welcome to the Active Wealth Show Activators. I'm Ford Stokes, your chief financial advisor, and I've got a special executive producer guest on our show this week. We have got Jim filling in for the absent Sam Davis. Jim, say hello to everybody. Hello, everybody. The legendary Sam Davis. Well, really legendary because he's figured out on his first trip to Europe ever, he talked his wife into, hey, I've got this great idea. Let's go to Europe. It's all about you. It's going to be great. But let's go ahead and make a small short stop to watch the practice round on Thursday and go to the first day of the Ryder Cup. Italy at Marco Simone Golf Course, Golf Country Club over there just outside of Rome. That is the way to do it.

Producer:
Yeah. And to your point, Ford, about the Ryder Cup. Don't know about you. I know you're a big golf fan and I wasn't until recently. I know Sam's Sam's a big golfer as well. I've recently have been playing a little bit more golf than usual, though, and I've been working on my golf swing for so many years. I worked on my baseball swing in my living room, and that's turned into my golf swing. Baseball swing, Left-Handed golf swing right handed. And I'll tell you what, one of the most frustrating and hardest things to do is hit a golf ball. And one of the most frustrating things is the mental side, because you hit a hit, one really good. But then the next hole you go say it's a par three and you go par six, and then you get really frustrated. So golf is an always evolving game for people who are not professionals.

Ford Stokes:
It is it is the difficult sport that nobody ever masters and or maybe Tiger Woods and Jack Nicklaus. But I will say this. You baseball players, you guys know how to compress the baseball. You can also compress the golf ball. You'll actually do just fine, I think. But anyway, again, you heard me at the front of this of the show talking about activators. And a lot of people may be thinking about, hey, who is an activator or an activator? Is somebody who listens to the Active Wealth Show every week, somebody who's looking to build a sound retirement plan, somebody that is looking to protect and grow their assets. And it's someone who's looking to build a tax efficient, fee efficient and market efficient portfolio. And we're here to help you do that. Absolutely no problem. And at no cost to you today. If you want to meet with us and we've had so many long time listeners over the last 30 days, reach out to us and say, Hey, Ford, I'd like to go ahead and sit down with you. I've been listening to you for two years or three years. I think it was finally time or I'm about to retire or I'm in that red zone of retirement, which is five years before retirement and five years after retirement. If you're in that red zone or even if you've been retired for a long time or you've still got a lot of years, I would encourage you to reach out to us at ActiveWealth.com and go ahead and click that schedule consultation button in the upper right corner. You can also get any of these episodes on active wealth.

Ford Stokes:
Show.com that's Active Wealth Show.com and that schedule consultation button is in the upper right corner of Active Wealth Show.com as well. You can also pick up the phone and give us a call at (770) 685-1777 again (770) 685-1777. Now on this week's show, this week's show is all about inflation. We're going to talk about inflation. We're going to have our inflation demonstration. Jim is going to give us our quote of the week. And we're also going to talk about how inflation impacts seniors and retirees. I know a lot of people are wondering about that and how does it continue to to bite into your your purchasing power? And is Social Security keeping up with inflation? We're going to talk about that and the importance of a strong income plan and what else you can do to do that. How to beat inflation a little bit by staying invested, but also having a strong income plan. And we'll talk about strategies for protecting your lifestyle during retirement and just tips to beat inflation. Again, this is the inflation show this week is the inflation show also and encourage you to make sure you share this episode from active wealth. Show.com we'll also post it on the active wealth management Facebook page and from Twitter at active wealth. M that's our Twitter handle or is now our account. And then if we have time, we're going to talk about a little bit of this week in history because there's some interesting events that happened during this week in history. But now, Jim, go ahead and share our financial wisdom quote of the week with. Our great listeners.

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

Producer:
Yeah. Ford Our quote of the week comes from the great and always reliable with these quotes of the week. By the way, Warren Buffett, Omaha, Nebraska native himself born in 1930, one of the most successful investors and prominent philanthropists. Known for his commitment to value investing principles. And he says, quote, again, today's show is Ford mentioned about inflation and Warren Buffett about inflation, said, quote, Inflation eats up the fruits of your labor, leaving you with less to enjoy in your golden years.

Ford Stokes:
That's right. So you want to do everything you can to stay invested so that your assets can keep pace with inflation. So let's go straight into inflation and where inflation is hitting the hardest right now. The following are notable areas where inflation has caused prices to rise so year over year inflation figures from August 2022 to August 2023. Groceries are now one year later. 4.3% more expensive. Food away from home is 6.5%. More expensive. So if you think you're saving money by eating out more often, you're actually losing more. Buying power by eating out rent is now seven. A whopping 7.8% more expensive. So as you thought about downsizing and then selling the house and I'll just rent an apartment. You're going to be paying more for that rent a year later. Electricity is 2.1% more expensive. Not too bad, but still more expensive. Garbage collection is crazy to me. Is 8.9% more expensive. That is unbelievable. They have decided they're just going to charge 8.9% more. Motor vehicle insurance is 19.1% more expensive. And I can tell you with twin daughters who are 16 years old, we've got. Or cars in the house. And yes, our car insurance is definitely more expensive for sure, but 19.1% more expensive is just mind. Mind boggling to me. Motor vehicle repair is 17% more expensive. Also, if you're a retiree and you're holding on to that classic car or whatever you may want to. Try to kind of chop your car insurance and work with like a. Hagerty to insure your your traditional or historical car and then use, you know, Geico or progressive or whoever else to and State Farm in all state to try to do your own car insurance for the rest of the of your cars because you'll find that it's a lot lower because they know that you don't drive that historical landmark car as often.

Ford Stokes:
And then new vehicles are now 2.9% more expensive, which is hard to believe considering what's happened to new car, new car prices and new truck prices since Covid since 2020. Over the counter, drugs are 7.5% more expensive. Which obviously hits our retirees really hard. Hygiene products, dental hair, hair, shaving, all that. All those different products are 7.3% more expensive. Baby food and formula is 8.4% more expensive. Again, these are things where people have got to have them. Doesn't matter. I'm going to go ahead and do it. And they're they're just taking advantage, in my opinion. Impact of inflation on everyday items as of 2023 is just a remarkable result. You've got even transport services have now gone up 10.3%. So it's people that are riding the bus. You know, they're trying to save money. It's gone up 10.3%. Shelter has gone up 7.3%. So again, it's something we really need to stay focused on. James going to play a description that Lonnie Perkins read for us on the Nation wide peak ten. That's going to give you a lot of detail on nationwide ten. We'll talk about that when we come back from the break. But it's got a lot of really great benefits and it's a safer way to stay invested, to keep pace with inflation and would encourage you to give this 2.5 minute excerpt on the nationwide peak ten a careful listen and we'll talk about it right when we get back to the break. You're listening to Active Wealth Show right here on 920 The Answer.

Producer:
Nationwide is on your side and they now offer the peak ten fixed indexed annuity through Ford Stokes, a fiduciary Series 65 licensed financial advisor and licensed life insurance agent in the state of Georgia. Ford is the host of the Active Wealth Show and president of Active Wealth Management. Ford and Nationwide have teamed up to help retirees and those preparing for retirement, protect and grow a portion of their savings that can also generate income they can never outlive. The nationwide Peak ten fixed indexed annuity offers an immediate 20% bonus on the income benefit base. For the principal you invest into the product, you can take up to a 10% penalty free withdrawal each year on the policy. With the peak ten, you'll receive 8% interest guaranteed on your principal for the first ten years and each year thereafter that you defer income payments. And that's not all. Nationwide is a mutual insurance company that answers to their policyholders, not shareholders. And as of the recording of this show, you can receive up to a 325% participation rate in the BNP Paribas Global H Factor index that follows global health care. That means if the Global H Factor index from BNP Paribas goes up 10% during a two year protection period, you'll receive 32.5% growth on your principal, and bonuses combined less a 1% spread fee for a net of 31.5% growth on your principal bonus and previous gains. Your gains will be locked in every two years with the BNP Paribas Global H Factor Index crediting method guaranteed and there are additional crediting options to choose from. With nationwide peak ten, you can add your spouse and generate joint income so you're both covered for life. Annuities are designed to provide protection and income for life, and the nationwide peak ten with the bonus income writer can do just that for you and your spouse. To learn more about the nationwide Peak ten, call Ford and his active wealth team at (770) 685-1777. Again call (770) 685-1777 to reach Ford and his active wealth team. Investment Advisory Services offered through Brookstone Capital Management, LLC, a registered investment advisor. Visit ActiveWealth.com for more information.

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

Ford Stokes:
And welcome back to the Active Wealth Show Activators. I'm Ford Stokes, your chief financial advisor, and I've got Jim here on the board with us is our really great executive producer guest who is filling in for Sam Davis over the next two weeks as Sam is out in Europe with his wife going to Europe for the first time and he is going there to cheer on the USA Ryder Cup team. And we're super excited to hear about how that goes on the Active Wealth Show in three weeks and we're super excited to see the and watch the Ryder Cup starting next Friday. Um, and so that should be a pretty interesting and fun event for sure. We're talking about inflation, but also Lonnie Perkins just talked about the nationwide peak ten fixed indexed annuity. And there's some things that I want to make sure you heard. Number one is there's only about 1% of the financial advisors in the country have access to sell the nationwide peak ten fixed indexed annuity. And we think that's a big deal. We're super proud to be one of those 1% of advisors been selected to be able to market and sell the nationwide peak ten to our customers. And it is a fantastic product. It offers a 20% immediate bonus when you get the bonus plus income rider, that bonus plus income rider averages right around 1.06% a year. But when they give you 20% up front, you make out better because also you're getting that money on the front end.

Ford Stokes:
So that's another way to keep pace with inflation by getting a 20% immediate bonus. Also, if you've had losses in 2022 or you're not happy with the recovery or the lack of recovery that's happened in 2023, you've seen some erosion in September or even a little bit over the summer. I would encourage you to reach out to us and give us a call at (770) 685-1777 and we can help you with a complete financial plan and a portfolio analysis. Also with a Social Security maximization report and a retirement income plan all the way to your 95th birthday. But we'll here's all the five things you'll get. So number one is you're going to get a portfolio analysis of your current portfolio. Number two is you'll get a Social Security maximization report because when you decide to take Social Security is going to be the one of the most important decisions you're going to make during retirement. So we're going to try to help you there. Also want to remind everybody, unfortunately, the old age survivors income benefit, that trust fund is going to deplete by 2033 or 2034, according to Social Security Administration and the. Congressional Budget Office. And if that happens, you're going to see a 24%. It's estimated to be a 24% cut across the board for Social Security as a whole. So your income benefit that would be coming into you would be cut by 24%. So you need to have a plan for that. And by the way, that's 9 or 10 years from now, 10 to 11 years from now, even if you want to go back to January.

Ford Stokes:
But right now we're at we're in September of 2023. So it happens in 33 or 34. You're looking at 9 to 10 years. Number three, where you would get with us is a retirement income plan to your 95th birthday. Number four is we're going to give you a financial plan with your current portfolio that has nothing to do with us, just what your current investment plan is. Now, your retirement plan is now, and we'll tell you whether we think it's going to be successful or not. We'll run a monte Carlo simulation with a thousand different simulations for you to see how the market's going to react to the assets you currently hold. And then we'll let you know how that plan looks. And then number five is we're going to give you a a financial plan, your 95th birthday. Absolutely. At no cost to you with our recommended portfolios and a Roth ladder conversion plan in that as part of that plan, if you have over $400,000 of IRA money as an example or A4143B4 57 simple IRA or Sep IRA, any of those tax deferred accounts, if you have over $400,000 in those accounts, then what we are going to do for you is we're going to help you save six figures with an effective Roth ladder conversion plan. Absolutely no cost to you. All you've got to do is reach out to us at ActiveWealth.com, click that schedule consultation button in the upper right corner and you'll get booked directly into my calendar.

Ford Stokes:
You're going to talk directly to me. The host. The actor will show Ford Stokes your chief financial advisor. I'm going to be your chief financial adviser. It's about a 1000 hundred dollars value and we're going to do that for you. Absolutely. At no cost. Absolutely free for you, because we want to help you make an informed financial decision about your future. We think you deserve to get your retirement results in advance before you reach the end of your retirement. Most people are going to have a 20 to 30 year retirement, 30 plus year retirement. The CDC, the CDC says that if you reach age, both of you reach age 65 of a married couple and both who are in the couple reach age 65, guess what? There's over 50% chance that one of you is going to live to be over 90. Your retirement could last almost as long as you worked, so you got to make sure that money lasts. Also, you got to have good income. We don't want you to having financial pressure and monthly budget pressure when you're not going back to work. We don't want you to have to go back to Walmart and stock shelves or say, welcome to Walmart. I know they got rid of the greeters, but you know what I'm saying. We've got to do everything we can to make sure you're not going back to work and you're also going back to work making less money because age discrimination is real in this country.

Ford Stokes:
Absolutely real. And if you didn't stay linear and you let's say you you were out in retirement for five years, you try to come back. It's very difficult to come back into the workforce. Even with all the 7 or 8 million jobs that are open. So let's finish up this this conversation about the nationwide Big Ten. I'm going to give you a 20% bonus on the front end. They're also going to give you a 325% participation rate. And now the BNP Paribas Global Factor Index works. That's a big deal. Then the next one is is really cool too. They give you an 8% roll ups. They give you 8% simple interest growth on your money every year and the income account every year that you defer. Withdrawals. And every year that you decide, hey, I'm not going to turn on withdrawals this year. So that's a big deal. Getting 8% without risk in the market is pretty helpful. Also, how these products work. They're going to invest in the ten year US Treasury, which is typically been seen as one of the safest investments on the planet. And then they're going to take the interest at the end of year one, End of year two, end of year three. It's generated from those Treasury. Bond investments and they're going to invest into options in the BNP Paribas Global Factor Index.

Ford Stokes:
Now they're making money off of your money. But they're also going to give you 3.2, 5% times how that index does. So the index goes up 10%. Guess what? You're going to get 32.5% growth over the two year protection period. If the index goes up 10% over that same two year period, less a 1% spread fee. So for a net of 31.5% growth over a two year period, that sounds pretty attractive to me. If it goes up 10%, if it goes up 20%, double it, you're going to be over at 63% growth net. That's pretty remarkable stuff. And so if you got questions about, hey, Ford, I've got questions about how can I generate more income in my retirement? I've got questions about this new fangled new cool. Fixed indexed annuity. That almost sounds too good to be true. I would encourage you to reach out to us. You can just send me an email at Forward Active Worldcom. I'm happy to answer any questions you have. That's Ford Ford at ActiveWealth.com. Or you can just call me at (770) 685-1777. By the way, we also have offices in Alpharetta. Our new location where we bought a building super excited to no longer be tenants. Got an office in Midtown that Matt McClure, our advisor down in Midtown runs. And then we've got Brandi seats up in Kennesaw and Cartersville, as well as Carol Little working with her in in Kennesaw and also working with me over here in our Alpharetta office.

Ford Stokes:
And Sam Davis as well, helps folks with retirement income, as well as being the regular executive producer of the show. And super glad that Jim's on the board with us today. So if you've got questions about the nationwide Big Ten, you've got questions about, hey, Ford, how do I generate more income during retirement? We've got questions on how do I better protect but still keep pace with this inflation that you're talking about here on the inflation show? This special inflation. Episode of the actual show would go ahead and encourage you to schedule your free financial consultation with us at ActiveWealth.com. Just click that schedule a consultation button in the upper right corner. Now, let's go ahead and go through a little bit more inflation talk. So gasoline costs $3.88 a gallon on average as of last Monday, according to Triple A, Gasoline was the largest contributor to inflation in August, accounting for more than half of the increase, according to the Bureau of Labor Statistics. The increase is largely attributable. The increase is largely attributed. Sorry. The increase is largely attributable to dynamics in the market for crude oil, which is refined into gasoline. Earlier this month, oil prices hit their highest levels since November of 2022. And here's where the gas is most expensive. No surprise here. Number one is California with $5.69. Washington with 5.0 $0.05 a gallon. Nevada with 4.92%, Hawaii with 4.80% per gallon. Oregon at 4.70 per gallon. Alaska at 4.61 cents a gallon.

Ford Stokes:
Arizona at 4.55 a gallon, and Utah at 4.30%, 4.3 $0.00 per gallon, By the way, all but. Alaska and Utah are. Everybody. All the rest of them are blue states. The red states were Alaska and Utah. Pretty interesting there. Also, when we come back to the break, we're going to talk about why inflation hurts retirees and seniors disproportionately. In other words, they get hit more than everybody else. And you're probably feeling that right now if you're. Tired or you're pre-retiree and you're concerned about the future. We're here to help you. We're here to help you on this show. You can stay invested. Also, one of the ways to stay invested is to invest more safely with 40% of your portfolio. That's going to be for income. And we can help you do that with that nationwide peak ten product and other products out there. But we're super excited to be only 1% of advisors have the ability to sell the nationwide ten. Go ahead and reach out to us again at Active Health.com. Schedule a consultation button in the upper right corner and I'm happy to help you. Get your own illustration. See how the nationwide Big Ten can help you with your retirement income and protect your principal and potentially grow your money as well. You'll see Active Wealth Show right here on Am 912. The answer when we come back from the break. We're going to again, we're going to talk about how and why inflation affects pre-retirees and retirees and seniors disproportionately.

Producer:
Nibbling on sponge cake.

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:
And welcome back to the Active Wealth Show Activators. I'm Paul Stokes, your chief financial advisor. Got Jim Terubok here with us as a executive producer. Fill in guest for Sam Davis, who is out in Europe. And he's going to the Ryder Cup with his wife, um, to watch the first day of the Ryder Cup and cheer on our boys in the red, white and blue for the for the US and this Ryder Cup competition. Hopefully they can bring the Cup back with them as we have the cup now from that Marco Simone. Golf club. And again, coverage of the Ryder Cup starts on Friday. And I think it starts on Golf Channel and it also is on Peacock and NBC. So we're talking about inflation on this episode. Today is the inflation episode for sure. And what I wanted to do is I want to cover right as talked about right at the end of the break in the last segment, why inflation Hurts retirees and Seniors disproportionately. Retirees tend to spend larger portions of their income on items affected by inflation. If you're a retiree or a senior listening to this show, you likely are spending a large part of your income on housing, food, gas and health care, all of which we are seeing the full effects of inflation as we just talked about in the last segment. Additionally, inflation hurts those who are living off savings and have less money invested in the market, which could otherwise provide higher yields. Retirees are much more likely to be dependent on their savings than a younger working person who may receive cost of living increases to their salary and can afford to have more money at risk in the market.

Ford Stokes:
The recent rise of inflation leaves many retirees with difficult decisions on how to protect retirement savings while covering their cost of living. Pensions are a common source of retirement income for many, but many pensions are struggling to keep up with inflation. Most private pensions don't offer cost of living adjustments or colas like you see with Social Security. The number one product that supports pensions is something called a sPIa. It's a single premium immediate annuity, sPIa, sPIa, single premium, immediate annuity. And what it does is it's just like when you stop working and you want to get paid the next month, guess what? They turn on the income, but it's not tied to an index like the nationwide Peek ten being tied to the BNP Paribas Global Factor index that follows global health care and follows the global health care market, the rebalances on a monthly basis. These are volatility indexes. They're volatility control indexes. Speeds don't have any of that, and they're really good products at paying our money back, but they're not really good products at growing our money. The next question is, is Social Security keeping up with inflation? While Social Security does offer cost of living adjustments or COLAs, they often fall short of the actual increase in prices, according to the CPI, which is consumer pricing Index. Because of this, retirees relying on Social Security could see insufficient income moving forward. According to the Senior Citizens League's research, Social Security benefits have lost over 30% of their purchasing power.

Ford Stokes:
Since 2000, due in large part. Two inadequate COLAs and rising health care costs. To address this growing issue, the Senior Citizen League urges Congress to adopt legislation that would base the cost of living adjustment on an inflation index specifically for seniors. That is called the Consumer Price Index for the elderly or CPI. E CPI is what they call the headline, the headline Consumer Price Index. And that's basically used to answer urban. It's basically what the city folks are dealing with. But CPI is the consumer price index for the elderly, and it's typically 5% higher than CPI. So a CPI dash you is running at 3%. Inflation is an example. Cpi would be running at 3.15%. The index that is currently used to measure inflation, the consumer price index for urban wage earners, and the other one would be for CPI Dash W underestimates inflation that Social Security beneficiaries experience because it does not effectively consider expenses like health care or housing. The Tsql supports legislation like Dash E Act, the guaranteed 3% Cola Act. The Senior Citizen League supports legislation like Dash E Act, the Guaranteed 3% Cola Act, the Senior Security Act, and other bills that would better protect the purchasing power of Social Security benefits. The senior center, the Senior Citizen League, also supports legislation that would give beneficiaries a modest boost in benefits to help compensate for years of excessively low COLAs. Social Security forecast 2024 and beyond is another thing we want to talk about.

Ford Stokes:
The Senior Citizens League said on Wednesday that over the Senior Citizens League said on Wednesday that the Social Security cost of living adjustment or Cola will likely be 3.2% in 2024. Let me ask you a question, folks. You're driving around Atlanta and you're going to Publix or Kroger or you're going to a kids or grandkids. Athletic event, but you're going to a soccer game or. Ball baseball or softball game or going to a cheer competition or gymnastics meet or dance recital or any of this stuff. Just drive around Atlanta and you've got errands to run at Home Depot or Lowe's. Do you really think that 3.2% is all that inflation's gone up over the last 12 months? Do you really think the Social Security cost of living adjustment is actually keeping lockstep pace with inflation? I personally do not. I do not believe it is anywhere coming anywhere close to keeping up with inflation. Overall, the inflation rate is significantly lower than a year ago. However, most Americans report that persistently high prices still affect their household budgets, according to a survey by the Senior Citizens League. Also, here's what Social Security Administration is telling us from Gov. The old age and survivors insurance, like we talked about in segment one, will be able to pay 100% of total scheduled benefits until 2033. That's the good news. But here's one year earlier than last year. Last year they reported at 2034. This year, they're reporting that they're going to be able to keep. All the winner percent of total scheduled benefits until 2033. At that time, the fund's reserves will be depleted and continuing program income will be sufficient to pay 77% of scheduled benefits.

Ford Stokes:
So instead of 24. As said in the in the first segment, it's actually 23. So you'd see a 23. It's estimated you'd see a 23% at least cut across the board of all benefits. And what does this mean for pre-retirees and retirees? Benefits paid out by the program have exceeded money coming into 2021, and the trust fund is now expected to be depleted by 2033, not 2034. That's a year earlier than forecasted last year. We talked about thanks in part to slower economic growth unless changes are made before then to shore up the program, 66 million Social Security recipients would see their benefits cut by 23 to 25%. Meanwhile, the Medicare trust fund, which supplements payments to hospitals and nursing homes, is also running out of cash. Oh, thank goodness. Horrible. That could result in 11% pay cut to health care providers unless changes are made by 2031. That deadline is three years earlier than had been forecast last year. Holy cow. That's unbelievable. Three years sooner in one year. We are not. Operating efficiently with our government checkbook are we listen correctly? Choosing when to start taking Social Security is perhaps one of the most important decisions you will make when planning for retirement and you only have one chance to get it right. Let us help you consider all of your options with our free Social Security maximization report. We believe you deserve to get back what you have paid for.

Ford Stokes:
Luckily, I know a lot to cut the Kremlin on that you have the right in front of the thing you have. All right. How much how much time I got left correctly. Choosing when to take Social Security is perhaps the most important decision you will make when planning for retirement, as we said earlier in this show. You only have one chance to get it right. Let us help you consider all of your options with our free Social Security maximization report, we've actually got a portal that you'll be able to work through for the rest of your life if you want to give you a free subscription to it. And we believe you deserve to get back what you paid for. Take advantage of this free offer for our listeners, for our activators out there, for the people listening to the Active Wealth Show, give us a call at (770) 685-1777 or visit ActiveWealth.com to schedule a free complimentary retirement consultation to do that absolutely at no cost to you it's about a $1,500 value. We want to make sure that you have all the information you need to make an informed financial decision. And we come back with the break. We're talking about how to protect your retirement from inflation. We've got significant strategies here one, two, three, four, five, six. We're going to share six strategies to help you combat inflation as a pre-retiree retiree right here on the Active Wealth Show. You're listening to Am 920 The answer, come right back. Here are our six strategies on how to combat inflation As a pre-retiree or retiree.

Nobody's going to hurt someone before the night is through. Somebody is going to come undone. Something we can.

Producer:
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.

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

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.

Ford Stokes:
If you are 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 America life. I'm Matt McClure. Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity. Contract guarantees are backed by the financial strength and claims paying ability of the issuer. Remember, all of Ford's listeners receive a free financial consultation just for listening to the show. Visit ActiveWealth.com to learn more and schedule an appointment. Thanks for listening to the Active Wealth Show and subscribing wherever you listen to podcasts.

Ford Stokes:
And welcome back to the Active Wealth Show Activators. I'm Ford Stokes, Chief Financial Advisor. I've got Jim Terebovlya, our executive producer Phil and guest to fill in for Sam Davis, who is out in Europe going to the Ryder Cup and cheering on our boys in the red, white and blue for the Ryder Cup next Friday. Be sure to tune in and cheer on our Ryder Cup golfers on the US side. And we're talking about six ways to combat inflation as a pre-retiree retiree or go through them one by one. I'm going to give you these six really quickly. Number one is you want to diversify your assets. You want to diversify your investment. Number two is you want to consider delaying your Social Security benefits to help you keep pace with inflation. We'll talk about that. Number three is consider part time work. Income is your greatest wealth generator for sure. Number four is recalibrate your budget, really understand your expenses and your income and make sure you don't have a negative retirement income gap. You have a positive retirement income surplus. Number five is you want to stay informed. You want to list the Active Wealth Show you want to research, You're going to be a bear, be a grizzly, be as aggressive as you can about seeking information, about investing, retirement, what's going on with inflation, what's going on with the interest rates. Just make sure you're well aware of what's going on and get a plan for it. And then number six is consult with a licensed financial advisor like myself.

Ford Stokes:
Don't try to do it on your own. You wouldn't do an appendectomy surgery on yourself, would you? You wouldn't do your own dentistry. I would encourage you to work with us here at the Active Wealth Show and we'll help you get started on the right path. Okay, so let's go through these six ways to combat inflation as a pre-retiree or retiree one by one. So number one was diversify your investments, diversifying your investment portfolio can help mitigate the impact of inflation. Consider a mix of assets such as stock, fixed indexed annuities, real estate and alternative investments such as magazine in or structured notes to diversify your investments and generate higher than normal interest rates to try to keep pace with inflation. You also want to consider a mix between strategic asset allocation and tactical asset allocation. Strategic would be something you're going to hold on to for a year, make a good decision on what you're going to invest in for the year, and then you're going to hold on to that for a year and then rebalance. Tactical would be something you're you're looking at consistently, but specifically your portfolio manager is looking at at least on a monthly basis. Number two is consider delaying Social Security benefits. Delaying your Social Security benefits can lead to higher monthly payments in the future. That's you get an 8% roll up every year that you wait. As an example, after age 67, going to age 70. This strategy can provide you with more substantial income later in retirement. Number three, consider part time work.

Ford Stokes:
Some retirees choose to work part time or pursue gig work in retirement. This can provide additional income to supplement your retirement savings and help combat fear of running out of money. I've got a client who owns a bobcat and a front end loader and and a skid steer and other things. He goes and helps people with their pastures. He helps and clear out stumps and stuff and he has a great time doing it and he makes great money doing it. And he's retired. He retired from UPS. Many retirees enjoy keeping active by staying somewhat involved in the workplace. Something to consider. Number four is recalibrate your budget, carefully manage your expenses by creating a realistic budget, monitor your spending, and adjust it as needed to ensure you're not overspending or depleting your savings too quickly. Remember, you don't need to set it and forget it. Your finances require regular monitoring and adjustments to get the most out of what you've worked so hard for. Number five Stay informed by listening to our show each week, you can stay up to date with financial news and economic trends. Being aware of inflationary pressures and adjusting your financial strategy accordingly is key to protecting your retirement. Also, if you've been a long time listener, I would encourage you to be a first time caller. Go ahead and reach out to us at (770) 685-1777. They say the power of imitation is real and it's important. And I invite you to go ahead and give our office a call. Deborah and Diane are standing by to take your call.

Ford Stokes:
All you have to do is call us at (770) 685-1777. You get scheduled with a consult with us. Number six. That's exactly what it is. Consult with a financial advisor. We'd love for you to work with us. We'd love for you to get that $1,500 value at no cost to you on the front end. Also, get that free nationwide peak ten illustration to see what the nationwide Peak ten could do for you. You might want to consider investing 20 to 40% of your assets into a fixed indexed annuity and replace the bonds in your portfolio. But we can really provide a tailored service and tailored advice to help you navigate the complexity of your retirement finances. And again, we'd love to be able to provide a free financial consultation. That's a $1,500 value to you. That includes Social Security maximization, report portfolio analysis, financial plan to your 95th birthday with with your current portfolio, and then also a financial plan to your 95th birthday with a Roth ladder conversion plan that includes a retirement income plan for you as well throughout your 30 plus year retirement all the way to your 95th birthday. Now I want to talk about why inflation has become such a problem. According to CNBC, the Covid 19 pandemic disrupted global supply chains and led prices to surge. As the US economy reopened, consumers unleashed pent up demand while there was still a shortage of goods on the shelves. Russia's invasion of Ukraine exacerbated backlogs in the global supply chain and fueled higher prices for food, energy and other commodities.

Ford Stokes:
Labor market led to employers to raise wages at the fastest pace in decades, feeding through to inflation, particularly in labor intensive service industries. And would also tell you, our president, on the first day in office, kill the Keystone pipeline. He's burned through two thirds of our oil supplies, our strategic oil reserve. And I will just say this. The policies in Washington are driving inflation up and it's going to get worse if taxes are going to rise as well. The only thing standing in between you and a 56% tax rate at the highest end is a Republican Congress, in my opinion. Also, let me share this on how fixed indexed annuities offer protection from inflation. You get a 100% principal protection because your your money's not invested in the US stock market. Your money gets invested into ten year US treasuries while returns are tied to stock market index. Your money is not directly invested in the market. This allows you to enjoy market like gains without market risk. We only recommend fixed indexed annuities that offer 100% principal protection and a 100% financial reserve requirement so that your money is invested as safe as possible. Here's one thing I'll just tell you. Fdic rules. It's between 3 and 10%. Fdic cash reserve requirement, 100% financial reserve requirement for fixed indexed annuities. I personally feel better about investing my money into a fixed indexed annuity with 100% financial reserve than putting into a bank for savings account or bank CD. And now, Jim, let's go ahead and give our listeners the final countdown. It's the.

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

Countdown. The final countdown.

Ford Stokes:
So Jim gave us our financial wisdom quote of the week. And, Jim, what was that? Go. Go ahead. I'll let you do it.

Producer:
Well, again, it was from the great Warren Buffett, Our financial wisdom quote of the week, quote, Inflation eats up the fruits of your labor, leaving you with less to enjoy in your golden years. And that fits perfectly with what you talked about today, with why inflation hurts retirees and trying to combat inflation for retirees if you are reaching that retirement red zone.

Ford Stokes:
Yeah, that's right, Jim. And we talked to, like you said, we talked about inflation impact seniors and retirees. We we talked about it's likely that Social Security is not keeping up with inflation, even though there's going to be a likely 3.2% cost of living adjustment for next year for 2024 from the Social Security Administration. Strategies for Protecting Your Lifestyle Retirement. We shared six of those that we thought were really important and want to recap those really quickly. Number one, diversify your investments. Number two, consider delaying Social Security benefits. Number three, consider part time work. Number four, recalibrate your budget. Number five, stay informed. Listen to this show. And number six, consult with a financial advisor. And we'd love the opportunity to work with you. All you have to do is reach out to us at ActiveWealth.com. Also, this episode is going to be one of those you're really going to want to share with friends and family to make sure they understand everything that's going on with inflation and how it impacts you. But specifically your retiree friends, I would encourage you to go to Active Wealth Show.com and click that episode button and share that share this episode we're going to have the full video of this episode up. We'll have the full audio and we've got a transcription of this show as well.

Ford Stokes:
For those of you who like to read. Again, I want to invite you to be a first time caller. You've been a long time listener to the Active Wealth Show. I'd encourage you to go ahead and reach out to us and be a first time caller, and you can just give us a call at (770) 685-1777. Deborah and Diana are standing by to take your calls and to book you straight into my calendar. You can also do that yourself by just visiting ActiveWealth.com and click that schedule a consultation button in the upper right corner. That same button is also in the upper right corner of active wealth. Show.com to if you're going to be a bear, be a grizzly. As I said before, do us a favor. Seek as much information as you can about retirement. Do everything you can to build a positive retirement income surplus on a monthly basis versus a negative retirement income gap. And we can help you do that. Stay invested. And again, I just hope everybody has a fantastic week. And here's to investing soundly and safely and also to generate the income you need in retirement so you don't outlive your money and your money outlives you. So you can pass on that legacy to your children.

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, Fort Stokes at (770) 685-1777 or visit ActiveWealth.com.

Producer:
Investment Advisory services offered through Brookstone Capital Management, LLC, BCM a registered investment advisor, BCM and Active Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
Structured notes involve risks not associated with an investment in ordinary debt securities. The securities are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency. Nor are they obligations of or guaranteed by a bank. The securities will not be listed on any securities exchange and the secondary trading may be limited. Therefore, there may be little or no secondary market for the securities. Accordingly, you should be willing to hold your securities to maturity. The securities are subject to the credit risk of the issuing bank and any actual or anticipated changes to its credit rating or credit spreads may adversely affect the market value of the securities. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company. You may not receive the bonuses if the contract is fully surrendered or if traditional annuitization payments are taken and if the policy is partially surrendered, it could result in a partial loss of bonuses. Because these are bonus annuities, they may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, or other restrictions that are not included in similar annuities that don't offer a bonus feature.

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