On this episode, Ford discusses the biggest news of the past week with the assassination attempt of Donald Trump. Plus, how can you protect your financial future from ongoing inflation? Ford and Sam share some strategies that you won’t want to miss.
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7.19.24: Audio automatically transcribed by Sonix
7.19.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.
Speaker2:
Welcome to Retirement Results, the national radio show and podcast for listeners like you who want to protect and grow their hard earned money in a world filled with so much uncertainty and financial risk, we seek to cut through the noise and build successful plans for hard working Americans on their road to financial freedom. Retirement results is powered by Active Wealth Management, a team of fiduciary advisors who always place your needs first and now your host. He's a registered social security analyst member of the Forbes Finance Council, an author of multiple books on retirement planning. Here's your chief financial advisor, Ford Stokes.
Speaker3:
And welcome to retirement results. Result drivers. I'm Ford stokes, your chief financial advisor. Got Sam Davis here with us on the mic as our co-host and senior financial advisor. And we're really talking today about watching retiree wallets and how to navigate and combat inflation with your retirement plan. But first, we're going to address two big events that have happened in the last week. Number one is the attempted assassination of Donald J. Trump, our 45th president, who I hope will be the 47th president of the United States. It was unbelievable when his ear was pierced by an assassin's bullet. Obviously, there's been significant investigation on what happened and the failures that were committed by the Secret Service and everybody else involved. That allowed an assassin to get within 130 yards of the president. And with a rifle and a scope, uh, be able to start popping off shots. And I'm so sorry to hear about the loss of that fireman. And our thoughts and prayers go out to Corey. Comparators family. And again I apologize if we mispronounced his name, but we just absolutely just appreciate that hero. And also um, or just our thoughts and prayers go out to his family. And I just want to say it was just one of the biggest moments, I think, in my lifetime when Donald J.
Speaker3:
Trump stood up and put his fist in the air and just yelled, fight, fight, fight! I thought that was just an incredible moment. I, I am like Tucker Carlson. I believe that Donald J. Trump is going to win the election. Um, I think all of us need to get a plan for voting. Um, and Sam, you and I talked about it at the break right before we came on here. Um, both of us have a plan to vote in our actual precinct, and, um, you can vote. You can vote early at your actual precinct, or you can vote day of, um, in Atlanta, Georgia. I would caution you to consider, um, voting by mail because there's been so many issues with the mail regarding the Palmetto Distribution Center south of Atlanta. Um, I'm not here to dissuade anybody from voting with, um, absentee mail in ballot. But I would strongly encourage you to consider, um, just voting at your actual precinct. And if you can vote early, go ahead and do that. Also, I'd encourage you to vote down ballot if you're trying to take care of your retirement. Please vote with your retirement in mind. Uh, right now, the 24% tax bracket, um, during the 1960s, in 1960, 1963, that actual 24% bracket was 56%, which is 8% higher than two times of where we are right now.
Speaker3:
So if you don't think taxes can go up in the future, I would beg you to reconsider. And obviously, the lower tax party is going to be the Republicans. Hopefully there'll be more of the fiscal conservatives as well, which they've traditionally been. I was just pleased. Just do everything you can to vote for Donald J. Trump to be our 47th president in November. And also, let's do everything we can to get out the vote, get your friends out to vote. Do everything you need to do to vote legally. Obviously, uh, vote one time and do the right thing and vote for Donald J. Trump. And also vote for all the Republicans down ballot because your retirement depends on it. It really does. And I also wanted to cover a couple of clips. I thought it was really neat. Um, there was a war veteran that spoke on Wednesday night, uh, that just did an incredible job at the RNC. And Sam, go ahead and play that quote from that incredible war veteran. I just thought it was amazing, you.
Speaker4:
Know, and I was fighting in Europe and I came back home. I kissed the ground, thanking God that I'm back home and President Trump back in commander in chief. I would go back to re-enlist today.
Speaker3:
And so great job, mister William Peccole, uh, war veteran, World War Two veteran who actually was in the second wave, stormed the beaches of Normandy. And I'm sure the Donald J. Trump will accept your re-enlistment, um, when he is sworn in in January. Um, hopefully Donald J. Trump wins the election in November. Um, but that was a pretty amazing moment. Also, Sam, just to kind of go back to your generation, obviously with JD Vance being, um, a millennial and and obviously he's 39 years young and he's our vice presidential candidate. And I thought he just did an incredible job on Wednesday night as well. And it's interesting to hear two millennials that I thought really kind of stole the show over the week. The first night you had Amber Rose, who has over 30 million Instagram followers, but she's more famous than most of the news pundits out there. Uh, it was just very telling to hear her story and to talk about how, you know, Donald J. Trump was really the best chance to create a great world that it's safe for, for all of her, for her babies and and for all of our babies. Um, our babies are 17 years old, and they're. We've got twin girls. Diane and I have twin girls who are 17. And many of you know that they're competition cheerleaders. And they won the state championship for North Forsyth High School in six a um, comp cheer last year at the Georgia High School State Association playoffs and, um, at those championships.
Speaker3:
And, um, you know, they're studying really hard and taking the Act and the SAT and all that stuff, trying to get the best college they can get into. But I got to tell you, you know, young girls don't do well in really horrible resolutions and, and duff times. And I want to do everything I can to make sure that my daughters can live in a peaceful world. And the America that's closest to where? The way I grew up. And that's why I'm voting for Donald J. Trump in this 2024 presidential election. I was so impressed with Amber Rose. And she's another young professional woman who's also a mother, and I just thought she did an incredible job, too. Those are just some of the highlights from the Republican National Convention. And also just thank the Lord above that the only thing that got hit with a bullet was Donald J. Trump's ear. And, um, I'm just, uh, I mean, an half an inch or a quarter inch the wrong way. It would have been awful. And, um, I'm just extremely thankful that that assassin's bullet didn't penetrate deeper into into Donald J. Trump's face and head and brain and all that stuff. I'm just so thankful that all it was was an injury to his ear.
Speaker3:
And it's amazing he played golf. The next day he, um, came back strong and he's 80 years old and and still going strong and also shows you what life is like if you go an entire life without without drinking. I happen to have never drank in my life and it does keep me younger. It does help. Um, it's not just good genes. It's the fact that he's never put alcohol in his body because his brother died of alcoholism. And I just I'm just so thankful that he is alive today. And we would be having much different conversations, most much more thankful just for the financial markets and for our clients wealth. Um, another real example, Sam, that you and I have talked about is protecting that retirement income portion of your portfolio in a situation where it's just so scary with big events like that. I, I'm just so thankful that we recommend to invest in fixed index annuities with a bond replacement strategy to delete the bonds out of a portfolio that could have risk of default, and things like that where there's 100% financial reserve on the product versus just a 10% financial reserve, say, on a bank CD, or having everything fully at risk in the financial markets. I mean, your thoughts on that? Yeah.
Speaker5:
Well, first off, it's always disheartening when we see any act of violence in the news. And the events of the last week really hit close to home. Um, a lot of people around the world have been struggling with violence this year, and now it's impacted our election in a very real way, and it doesn't feel good. Um, I don't think it's controversial to say that, uh, you know, that's a good thing that, uh, we we we escaped something that could have been much, much worse right there and very public. So, um, you know, there's a lot to be concerned about. Um, we don't want anybody to be scared. It's more important to be prepared, especially when it comes to preparing for your retirement and making sure that you are protected. Uh, in case of anything that could happen out there.
Speaker3:
Yeah. And also, we want you to live your life. We want you to live your life and enjoy time with your family. I spent the July 4th weekend down at, uh, TPC Sawgrass and got to play the stadium course, and I did par number 17, the Island Green. That was a pretty special moment. It is unbelievable that that course is just in pristine condition. The island green is is something to behold and something to experience. And I'm not being paid for this endorsement. I just had a great time down there. And I just want to say, all of us golfers, especially those retirees. You're trying to stay active and you're trying to stay alert, and you're trying to figure things out and really enjoy the game. I would encourage you to go ahead and get down to TPC Sawgrass and either play the Stadium course or play the Valley Course and just really have a great time and enjoy yourself. And we've run out of time here, the first segment and we come right back, we're going to talk more about how to build that retiree wallet and how to combat and navigate through inflation for your retirement plan, and a lot more retirement results when we come back to the break.
Speaker2:
Retirement results. We'll be right back to learn more and schedule your complimentary retirement consultation, visit retirement Results.com.
Let's stick together.
Speaker1:
On 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.
Speaker2:
You're listening to retirement results. And now back to the show.
Speaker3:
And welcome back result drivers I'm Ford Stokes our chief financial advisor. Got Sam Davis here with us our Our co-host and senior financial advisor. And we're talking about how to protect your retiree wallet. And specifically we're talking about how to combat inflation. And we've also obviously spent a lot of time in segment one talking about the attempted assassination on Donald J. Trump, our 45th president, we hope is going to be the 47th president of the United States. And then we also talked about the RNC convention and just wanted to give a shout out to, um, William Peccole, who did a great job as a 98 year young gentleman. He was a World War Two veteran, did a great job at the RNC. And then we also gave a shout out to Cory Comparator and his family and say our thoughts and prayers are with his family as he lost his life during that assassination attempt. And it appears the quarry blocked a bullet that was going to. It was aimed right directly at Donald J. Trump based on the diagrams that I've seen. And then we also wanted to give a shout out and just say, great job done by Amber Rose. She just did an incredible job on the first night of the RNC. And she's a mother, supermodel, influencer. She has over 30 million Instagram followers. There's no telling how many people she brought over to the Republican Party and brought over to vote for Donald J. Trump. Um, it was really impressive, and she was a neat lady. And I just want to say great job there. Let's talk about this inflation demonstration and what retirees should know.
Speaker2:
Want to know where your hard earned money is going? It's time for an inflation demonstration.
Speaker5:
Yes. So first, want to kick things off with what we're calling a not so fun fact. So if you look on a cumulative basis, the consumer price index, which is a good indicator of inflation, has risen by 22.5% over the past three years. So that gives you an idea of just how much more expensive things have gotten on average. And so as a result, today's retirees need to spend significantly more than they did just three years ago for the same goods and services. So that's why we're stressing to everybody out there listening to retirement results. No matter how much money you do have saved for retirement, it's not going to go as far in the future. It's important to protect your wealth. It's also important to important to grow it as well, because a gallon of milk is going to cost more next year. You know, a loaf of bread is going to cost more next year. I would expect, you know, the same for a gallon of gas and many other things that we use on a day to day basis.
Speaker3:
Two things there that I that I want to kind of unpack the consumer pricing index that's they're using the CPI value, which stands for urban. Um, and then there's also a CPI dash E which is actually 5% higher. So if inflation goes up 3%, then CPI e would be 3.15%. And CPI e is actually stands for elderly. The E stands for elderly. The because of health care costs usually outstrip normal inflation and also because the elderly need to eat as well. They capture a lot of the, um, they capture a lot of the actual inflation and actually capture more than a typical person that's younger and working. Um, it doesn't have to have the need or the use of healthcare as much as, say, a senior does. So be careful there. One other thing that I wanted to kind of point out here, with the consumer pricing index having gone up by 22.5% over the past three years, and it's likely higher for retirees than that. The concern I have is for people that are looking to turn on their pension that stays flat. Do me a favor. Don't do that. Go ahead and reach out to us at retirement results.com/plan. That's retirement results.com/plan. And we will give you a free pension x ray. We'll we'll give you a full review of your pension. Whether you should take a lump sum or turn on your pension.
Speaker3:
It's up to you. We'll do everything we can to help protect and grow your hard earned and hard saved wealth. We'll also act as fiduciaries if we feel like you know what the analysis shows that you really should keep your pension. Go ahead. That's great. The problem with most pensions is that they are flat. So they they pay out the same amount each year. So that means it will last three years. People that have a flat pension that's paying the same amount of money every year have lost 22.5% in purchasing power or more going forward. That's a huge concern. Don't just take that lump sum pension. Don't just listen to somebody that's at your employer or some plan administrator that works with your company. Do me a favor. Meet with us. We're fiduciaries. We're going to put your needs ahead of ours. Go ahead and give us a call at (888) 814-0304. That's (888) 814-0304. That's toll free for all the folks that are watching our podcast, listening to our podcast, watching us at retirement results. That's that's our toll free number. Call us anytime. The local number here in Atlanta is (770) 685-1777. Again (770) 685-1777. And we look forward to working with you on that. And Sam, you're going to talk about these rate cuts potentially on the horizon with a question mark here.
Speaker5:
Earlier this week, Fed Chair Jerome Powell said that the Federal Reserve is becoming more convinced that inflation is heading back to its 2% target and the fed would cut rates before the pace of price increases actually reached that point. So that's indicating that they're not going to wait till it gets all the way down. But if it gets a little bit closer to that amount, then they would consider doing rate cuts. Despite inflation cooling retirees who rely on Social Security for income are still contending with higher costs. As we mentioned, beneficiaries typically spend about half their budgets on housing. That category has stayed higher even as the rate of broader inflation has come down. Some other things that also stay higher also food, electricity, hospital and outpatient medical services for these are all things that retirees have in their monthly budgets healthcare, food, electricity, housing. You know, inflation is affecting these categories even worse. One last inflation point. The average grocery item with prices tracked by the CPI jumped by 24% from 2020 to 2023. That's according to the Senior Citizens League. And so we really asked the question has inflation changed the 4% rule? What do you think for.
Speaker3:
Um, I think it absolutely has. As for the recent spike in inflation, you know, Sam, a retiree might have been able to cover annual spending needs with an initial withdrawal amount of $40,000. That's 4% of $1 million, right? If you've got $1 million portfolio and you're taking out 4%, 4% of $1 million is 40 grand. But the same spending needs would now cost more, like 49,000. Put another way, a $1 million retirement portfolio doesn't go as far as it used to. And it's unfortunately, this is an opinion. This is just metrics. This is math. And we've got to do a much better job at managing inflation from here. I know a lot of you have questions that you've sent in to us, um, by reaching out to us at retired results on Twitter and also sending emails to me personally at forward at Active Wealth.com, that's Ford at Active Wealth.com if you've got questions, go ahead and reach out to us and send me an email at Forward and Active Wealth.com. That's Ford at Active Wealth.com and we're happy to answer them. We've only got a few minutes left in this segment. Sam, do you want to. Let's tackle the first question.
Speaker5:
Yeah. We have a listener who's concerned about taxes. This is coming from Jean in canton, Georgia, not too far from our home office in Alpharetta. Jean says, I'm 67. I'm about to retire. I've got about 1.4 million saved in my IRA. He also has a $200,000 investment account with another 100,000 as an emergency fund, and is checking and savings. And Jean is asking, should I consider converting some of my IRA money? Remember, he's got 1.4 million inches that IRA to a Roth IRA, and if so, can you make some recommendations on how to best do that?
Speaker3:
Yeah. So, um, we actually know Jean and Jean's married and he's got, um, he has four kids. And I know legacy is important to him. And so what what I would say is, yes, Gene, I think there's a real opportunity for you to implement a Roth ladder conversion between now it's age of 67 all the way through up to age 72 before 73, when your RMDs kick in, I would encourage you to use some of the money from the investment account to pay the taxes on it. So the hint here is, as you move money from your IRA to your Roth IRA, you move a dollar for dollar. You don't withhold any of the money to pay the taxes, and then you pay the taxes within that same tax year using money from the investment account. Now it's going to obviously impact the investment account. But your tax deferred dollars will then be moved to a tax free bucket. And then you'll grow the tax free dollars as much as you're depleting the tax deferred dollars, which is a really great thing to do. Um, also, if legacy is important to you, we can help you get your own trust or get your own will done. We work with a service here called Estate Guru. They do a great job, and they put you in touch with a licensed estate attorney who just specializes in wills and trusts, and they will actually prepare your will or your revocable trust or irrevocable trust absolutely. At a discount. So go ahead and reach out to us for that at. You can just send me an email at forward at active Wealth.com. And now we're we're heading towards the break here. After segment two we come back. We're going to take more questions from listeners just like you. You're listening to retirement results on Am 920. Answer.
Speaker2:
Learn more at retirement results. Com or by calling us today at (770) 685-1777.
Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to make full disclosures of any conflicts of interest, if any, exist. Refer to our firm brochure, the ADV Two-a, page four for additional information. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by BWA.
Speaker2:
Are you concerned about rising taxes and how they could affect you and your family during retirement? If you have an IRA balance over $400,000, you could save six figures in retirement taxes that you would be paying during a 35 year retirement. Find out how much you could save today by scheduling your no obligation Roth conversion consultation with Ford Stokes of retirement results. Learn more and schedule an appointment at retirement Results.com Investment Advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit retirement Results.com for more information. While Washington's spending keeps growing, your retirement doesn't have to shrink, protect, and grow your hard earned money today by calling us at (770) 685-1777. That's (770) 685-1777 to connect with a qualified advisor.
Speaker3:
And welcome back result drivers I'm Ford Stokes your chief financial advisor I've got Sam Davis here with us who's our co-host and senior financial advisor as well. Sam we are taking questions from our result drivers. We just heard from a question from Jean in canton, Georgia. Go ahead and give us our second question of the week from our result drivers.
Speaker5:
Yeah. This second one is from Carolyn in Tucker, Georgia. And Ford, my wife and I, Bailey, have a home in Tucker. And so this one is coming from our town here in the Atlanta area. And Carolyn says, I'm a divorced female. I was married to my ex-husband for 21 years. Am I entitled to any of his Social Security? I didn't work until after my divorce and I want to maximize my Social Security income. I'm 61. I'm thinking about turning Social Security on next year. What can I do? And Ford, you're our registered social security analyst on staff here. What are your recommendations for someone in Carolyn's situation?
Speaker3:
Yeah, there's only one of the 15 registered Social Security security analysts in the state of Georgia. I'm very busy running these type of plans. We run RSA roadmaps for people, um, which is the organization, registered Social Security analysts. It's an actual association of of registered social security analysts. And what I would recommend, yes, you're first of all, I've got good news for you, Carolyn. You are entitled to 50% of his benefit, which is pretty fantastic because you were married over ten years, by the way, if you're married nine years and 360 days, unfortunately you're not entitled to a ex spouse benefit, but you are entitled to it because you were married to him for 21 years. So happy to make sure that you can maximize your Social Security income, it sounds like you likely are getting more of a Social Security income for 50% of his since you started working after the divorce. Um, and I would just only assume that you probably have children, and you probably worked harder than he did, working hard and staying at home doing a job as a mom that you can't get fired from. So mad. Respect and props to you. Um, but again, if you want to maximize the Social Security income, yes, you can file for 50% of his. You will get up to 50% of his. If you can make it your full retirement age. Since you're 61, uh, your full retirement age is 67. So if you can get to therefore, you're born after 1960, if you can just get to your, um, full retirement age of 67, I think you'd be a really good spot to get 50% of his Social Security income benefit.
Speaker5:
All right, Ford, our next question comes from Susan in Roswell, Georgia. And Susan says I'm a 68 year old widow. My husband recently passed away this year. It's been devastating. And my two children, who both live in Georgia, are spending more time with me during this difficult time. I'm considering downsizing. I want to consolidate my investments and retirement accounts while minimizing the taxes I pay each year. I inherited my husband's IRA with approximately 1.2 million. Can I start converting his IRA into a Roth IRA for me?
Speaker3:
This is a really technical question, and it's a really good one, believe it or not. You can. Um, so, Susan, you're in Roswell, not too far from our Alpharetta headquarters office. We've also got offices in Midtown and in Kennesaw in the Georgia area. And we also can work with anybody in all 50 states. But we would first do is try to get your husband. Since you're inheriting it as a spouse, you can get it moved over into your IRA, and then you can start as a spouse can start converting from your IRA to a Roth IRA. It's a little bit more of an extra step, but then it would be if it was just your own IRA. But as a spouse, you can convert an inherited IRA into your own IRA and then start converting where you would roll it over into your IRA, and then you can start converting, uh, to a Roth IRA from your personal IRA, your individual retirement account. If you've got questions on how to do that, Susan, I would just encourage you to reach out to us at retirement results.com/plan. Or you can call us at (770) 685-1777. We're right off exit 12 on 400. Um, so really near Halcyon. So I would encourage you to go ahead and just reach out to us, and we're happy to meet with you in the office. But for many of you out there, they're inheriting IRAs. You can move it into your own IRA as a spouse, not as a child, um, or a friend or somebody inheriting an IRA. But you can do it as a spouse, and then you can start converting it to a Roth IRA over time. And she's also Susan, you've got some time between 68 and 73 years old to implement those Roth ladder conversions before the RMDs make it problematic, where you have to take the RMDs and the withdrawals compounded, um, at age 73 and beyond. So go ahead and reach out to us at (770) 685-1777. Susan, we'll go ahead and we're happy to help you. Thanks for that question. We appreciate it.
Speaker5:
All right. Our last question that we've got from the mailbag for today, Ford comes from Alpharetta, Georgia, right here. Uh, this says hello. This is Zach. My wife and I are both retired. I'm 65 and my wife is 63. I just rolled my 401 K to my IRA. It's a good idea. We have never worked with a financial advisor. What are the first steps to getting the results and advanced financial plan that you often discuss on your show?
Speaker3:
Yes, the best way to do that is just to reach out to us. Obviously, just call us at (770) 685-1777. We'll get started. Um, just get an appointment. We'll gather in your your statements. We'll try to get an understanding of how much you're spending each month in expenses and what that looks like in expenses during your full retirement. It seems like you're both retired, so that's great. Congratulations. Um, going to need to get your wife over there to Medicare to get to 65. Uh, hopefully you guys have a good health insurance plan for that as well. We give those results in advance. Financial plans to everybody that calls in to our office at (770) 685-1777. Because we're fiduciaries, we're going to make sure you have all the information you need to make an informed financial decision about your retirement future. For sure, we're going to help you get that going. But another great way to get started is to go to Active wealth.com/workbook. That's active wealth.com/workbook. You can put in all your information. You can submit your statements, your financial statements, your Social Security statements, so we can run your Social Security maximization report and that RSA roadmap for you. We also will give you a financial plan to your 95th birthday that has nothing to do with us, or just your current plan will also give you a financial plan to your 95th birthday with our recommended portfolios. Also with a Roth ladder conversion plan. Absolutely no cost to you. We call that a results and advance plan, and we want to get you what your retirement looks like in advance, so you can have peace of mind out there and really enjoy your retirement. Zach, thanks for the question. And we're in Alpharetta two. So we look forward to talk with you and look forward to meeting our neighbor and saying, we only got three minutes left in this segment. Three. But you've got a really interesting this Week in history item. Go ahead and hit them with it.
Speaker6:
It's this week in history.
Speaker5:
Yeah. So we don't do this week in history every single week. But I highlighted this one because I thought you'd find it interesting. So uh, July 23rd, 1903. So this week in history, 121 years ago, the Ford Motor Company sold its first automobile, and it was the model A, they made 1750 of them, and those were produced between 1903 and 1904. But they rolled off the line 121 years ago. The car came as a two seat runabout and it was priced between 800 and $900. I guess it depended on what kind of options you got, but I know they weren't. There weren't many. I think I think Henry Ford himself famously once joked, you can get any color you want as long as it's black.
Speaker3:
Yeah.
Speaker5:
That one. They only made it in that color. The model A weighed, uh, and still weighs. I see a few of them out there floating around at car shows from time to time. £1,240, and topped out at a peak speed of 28mph.
Speaker3:
That's faster than a horse.
Speaker5:
And it's faster than you get to go a lot of the time when you're driving around on the Atlanta highways. So yeah, no question.
Speaker3:
Yeah, I mean, that would get you from point A to point B. That's pretty exciting stuff. You got to feel like you had quite a bit of freedom when you got had one of those. So um, just way to go, Henry Ford. It's awesome. And what a great this week in history. Adam, I love that. Um, I wish I was directly related to Henry Ford, but it is nice that, um, God forwarded my name. My my mom's maiden name was Ford, and my mom, uh, passed away about a little over 18 years ago. And, um, and her name was Judy Ford Stokes. And her maiden name, her full maiden name was Judy Melcher Ford. And she was from Iowa, not too far from Michigan. And, uh, they had some, some distant relatives that, um, that were kind of involved with the Ford family, but, um, huge fan of Henry Ford, huge fan of the Ford family. And I drive a Ford F-150, a Roush Ford F-150 truck. And, uh, thanks for sharing that. That does mean something to me. And we've got one more segment. We come back, we're going to talk about the four L's that are needs during retirement for you retirees. And it's not losses. Just so you know, uh, we're talking about the four L strategy here with all the four L's that most folks need during retirement. And I think you'll be excited and interested to hear about these four L's. And we'll you come back to the break. You're listening to retirement results right here on Am 920. The answer?
Speaker2:
Thanks for listening to retirement results. Schedule your complimentary financial consultation now at retirement Results.com. At Active Wealth Management, we know you've worked hard for your money and you've worked even harder to save it. When it comes to wealth management and planning for retirement, Ford Stokes of Retirement Results is passionate about helping people protect and grow their wealth while educating them on all their options so they can choose what's right for them. Visit retirement Results.com to schedule your no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at retirement Results.com miss. Part of today's show retirement Results is available wherever you listen to podcasts and online at retirement results.com.
Speaker3:
And welcome back result drivers. I'm Ford Stokes, your chief financial advisor. Got Sam Davis here with us, our co-host and senior financial advisor. And and we're talking about adding a level of certainty to help achieve retirement income results and really try to really exceed the goals that you're going to set during retirement. And also hopefully just make sure you stay out in front of your monthly expenses. So you start with and maintain a positive retirement income surplus, not a negative retirement income gap. And we're talking about the four L's here, um, for retirement. And these are just kind of needs for retirees. Number one is lifestyle income. I would think we could all agree that we need a lifestyle income so we can outpace the expenses so we can fund our retirement. Number two is liquidity. So you want to be able to have enough money available to you at the time in case of emergencies, but also just to make sure you have enough liquidity to satisfy your monthly expenses. Number three is longevity protection. You're looking to make sure that you're taking that longevity risk off the table. Life insurance is insurance for living too short, so it can actually replace the income generated by the breadwinner or breadwinners in the family. Annuities and fixed index annuities specifically, are designed to be insurance against living too long because you get market like gains without market risk, and they also have principal protection, so you can protect the income portion of your portfolio.
Speaker3:
We've talked about it quite a bit on this show. If everything goes crazy, you know, things like assassination attempts on Donald J. Trump, social unrest, pandemics, all those things we've seen since 2020 and some of which we've seen incredible things have happened just in the past 7 to 14 days. It's a real concern to not have your retirement income protected. You really should have just like 20 to 40% of your overall portfolio should be locked up like Fort Knox with 100% financial reserve. And if you don't have that, and you're still paying advisory and portfolio fees on the bond portion of your portfolio, that's just supposed to give you income, not necessarily supposed to give you market growth. I would beg you to consider getting a results and advance plan, beg you to consider a bond replacement strategy with us, and reach out to us at retirement results.com/plan. That's retirement results.com/plan. Or you can just give us a call at (770) 685-1777. Again that number is (770) 685-1777. And the number for L in in retirement that you're going to need during retirement is legacy assets to transfer wealth. Many of you really care about legacy. Many of you want to make sure that you know what your kids are like.
Speaker3:
You know what? Mom and dad were on it, and they set us up for success and didn't just set us up to go buy a boat and waste the money. You want to have legacy assets ready to transfer and also transfer tax efficiently as well. So one of the things we want to talk about is, you know, why are you using investment only approach and systematic withdrawals during retirement? Because it also will decrease the probability of achieving that lifetime income goal. If you can get the retirement income portion of your portfolio in a bond replacement strategy product, like a fixed index annuity, you've got your lifetime income goal where the lifetime income will keep pace with inflation. You also are going to get a higher withdrawal rate than a typical 4% withdrawal, and it goes up 0.1% each year. Typically with most products, like with the nationwide peak ten, it's offering a 20% immediate bonus. Only 1% of financial advisors have access to it. Sam and I do. It also offers an 8% guaranteed simple interest on the premium that you invest every single year. So every year you decide to stop to not take withdrawals, you get 8%. And it also gives you a 330% participation rate. In how the BNP Paribas Global H factor Index performs. That's 3.3 times how that index performs less a 1% spread rate.
Speaker3:
It's a really big deal to be able to have that kind of opportunity to protect and grow your money, but also generate the income that you need. It's an accumulation and an income based fixed indexed annuity. It's also offered by an A-plus rated carrier that is rated by a m best, and Standard and Poor's is A+, their mutual insurance company. That means their shareholders or their policyholders, they're not trying to make a fiscal quarter and they're their company stock is not traded on the New York stock Exchange or the Nasdaq. It's a really big deal to consider investing in a fixed index annuity product as a bond replacement product with that new 60, 40, 60% stocks and 40% instead of bonds due 40%. Fixed index annuities. If you've got questions about this type of new 6040 retirement plan, I would encourage you to reach out to us at (770) 685-1777. Also want to recap these four L's that are needs for retirees during retirement. Number one is lifestyle income. Number two is liquidity, number three is longevity protection. And number four is legacy assets to transfer wealth. Also, we want to do everything we can to avoid investing in variable annuities. You want to consider investing into fixed indexed annuities. So therefore you your money will not be at risk. It's not a security and it is an actual insurance product that also has index linking.
Speaker3:
Because they're going to take 100% of the money you give them and invest in the ten year U.S. Treasury. And then they're going to take the interest generated off of that and invest in options in the indexes that have the underlying indexes that are involved with the product. Some of these proprietary indexes returned quite a significant return. We want to see everything we can to try to implement an annuities protection features into your overall portfolio to increase the protection of your entire portfolio. So we want to do everything we can to kind of get things going now. Then just sitting there on the sideline waiting, oh, I know I probably should do that, but I'm going to wait till I'm 75 or whatever. Take advantage of the time. You've got the advantage of time. Imagine how big your annuity is going to be, especially if it outpaces your withdrawal rate each year in 20 years. It's also going to be one of your favorites, if not your favorite part of your portfolio, I promise. Sam, your thoughts on the four L's with lifestyle, income, liquidity, longevity, protection, and legacy assets to transfer wealth and how important it is for clients to kind of have a good idea of what's going on with those four areas.
Speaker5:
Yeah, well, those four L's are are really good things to keep in mind when you're starting to think about what you want your retirement experience to be like. And, um, when you can choose to get the income you need on a guaranteed basis versus a non-guaranteed basis, um, we find that a lot of people, when they see that they can get the income they need with just a fraction of the portfolio, that's the way they want to go. Because once they see that their income needs are going to be met, they can confidently invest the rest and let that money grow. That's why we say here at Active Wealth Management, retirement results protect and grow. We say that all the time and do it in that order. Protect first and then you can focus on that growth. It's the final.
Speaker2:
Countdown. So let's recap what you may have missed. It's the final countdown.
Speaker3:
So we talked about the assassination attempt on President Donald J. Trump. And we're so thankful that he is alive and is okay. We just, you know, a hole in his ear, thank God. And I'm sure it was a very scary situation for him and his family. There's going to be a lot of questions asked, investigations that have happened. There's a lot of questions we all have about what transpired there, and I look forward to the independent review and investigation that's put on by the House. I don't necessarily trust what's going on from the Biden administration. Number two is we talked about the Republican National Convention and just what an incredible success it was. And congratulations to JD Vance for being tapped on the shoulder to be the vice presidential candidate and running mate for Donald J. Trump to be the 47th president of the United States, and for him to be the next Vice President of the United States. So super excited about JD Vance. What a great story from Iowa. And, um, and from eastern Kentucky. And just my gosh, what a what an upbringing. And came out of one of the ten poorest counties with a single mother who was addicted. He's now ten years sober and and he's looking out for the US manufacturing worker. Manufacturing is actually one of the top lines of work that we work with. A lot of folks are in the operations side of manufacturing that work with us. They they come from Goodyear, they come from Georgia Pacific, they come from Yamaha, Honda, others. And I, you know, they're just great people.
Speaker3:
And I think he's going to be a champion for those folks. Also shout out to William Pickerel and his family who's 98 years young. He was a World War Two veteran, did a great job at the RNC. And then Amber Rose, who is a young mother, supermodel, incredible influencer, just did an incredible job in it with an impassioned speech about why she became a Maga patriot. And I'm just super proud of the job she did. I thought she had a huge impact. Listen, we also talked about the four L's during retirement, which is lifestyle, income, liquidity, longevity protection and legacy assets. We also had an inflation demonstration. Let's do everything we can to protect and grow our hard earned and hard saved wealth. Let's get a plan. Let's get that results in advance. Financial plan. Go ahead and reach out to us at retirement results.com/plan or give us a call at (770) 685-1777. Again (770) 685-1777. And remember, if you're seeking information about retirement, if you're going to be a bear, be a grizzly. Be as aggressive. You can get as much information as you can. You don't have to do things the way that everybody tells you to do them. You can actually do it the new way. 60% stocks, 40% fixed index annuities instead of bonds, and implement that bond replacement strategy, as well as implementing a strategic Roth ladder conversion plan so you can delete the IRS from being your partner in retirement. Go ahead and reach out to us at retirement results.com/plan, or call us at (770) 685-1777. Have a great week everybody.
Speaker2:
Thanks for listening to retirement results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary financial consultation, call us now at (770) 685-1777. That's (770) 685-1777. To connect with a qualified advisor. To learn more about our mission and our team, visit retirement Results.com. Investment advisory services offered through Brookstone Capital Management, LLC, 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. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest, if any, exists. Please refer to our firm brochure, the ADV Two-a, page four for additional information.
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