Responding to the Market’s Wild Week

8.9.24: Audio automatically transcribed by Sonix

8.9.24: 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 your retirement results. Result drivers. My name is Ford Stokes. I'm your chief financial advisor. I've got Matt McClure here with us today. He's filling in for the second week in a row for Sam Davis, who is at the Olympics in Paris. And Matt is a financial advisor with us, also our roving reporter for retirement results. And he's here with us today. Say hello. Matt.

Speaker1:
Hello, Matt. Um. That's. Yeah. Say good night, Gracie. Uh, no, I hate it. How's it going? I hope you have had a great week and busy, busy week. In a good way at least.

Speaker3:
Yeah, I was a little tough. You know, obviously with the market volatility this week we're going to talk about protecting your investments in volatile times. Plus how to terminate your partnership with the IRS in retirement this week Matt. But um, it was a little bit of a concern for a lot of people. We we got messages out to all of our folks on Monday. All of our, our all of our clients and, um, prospects are looking to do business with us. And I wanted to quickly read over a message that came from our chief investment officer, Mark Diorio, who is a CFA, a certified financial analyst. Um, let me do that quickly. On today's show, we're also going to talk about how to protect yourself better from market volatility. Uh, obviously markets go up, markets go down. But it's um, there's steps you can take. Um, if recent events have you concerned. And then also we're going to talk about timing isn't necessarily everything. Why timing? The market is really never a great idea. And then also we'll talk about financial landmines. You can avoid to say steer clear of these mistakes before and during retirement. And then the last thing is we're going to talk about is how to delete the IRS from being your partner in retirement, how to reduce your tax burden in your golden years. Because, you know, Matt, you and I have talked about quite a bit is aging is expensive.

Speaker1:
It is. I mean, and that's the thing too. It's, you know, you've got so much that you already are going to have to bear the burden of in your retirement years, you're going to have increased health care costs. You're going to have, you know, all the things that you want to do, right? Going to travel, whether it's traveling, whether it's, you know, sipping a mint julep on the front porch or something like that, it's not, you know, the mint juleps aren't free. Kentucky Derby time, right? Exactly. I mean, you know, whatever you want to do, it's going to cost you money. And they're going to be those increased health care costs as well. And on top of that, you could have that. What we like to refer to as a retirement tax bomb waiting for you. So you want to reduce that as much as possible. So then you can keep as much of your hard earned money in your own pocket as possible for your retirement years.

Speaker3:
Yeah. And we've we've also got, um, a really great problem solver this week. Um, it's it's regarding what one client has done with their variable annuities. And I'll give you a hint, he replaced all of them with a fixed index annuity. Yes, because he was tired of paying the fees. And we're going to talk about what he did and how he did it, um, in segment four. So but first, let me go and get into this letter. Um, to all of our clients and prospects from Mark Diorio, our chief investment officer. So here's what he said. He said, I want to send out a few quick thoughts as market volatility is escalated on Monday. Uh, as a reminder, volatility is a natural part of the capital market landscape. And when we build portfolios, we consider the impact at a high level. We allocate assets balancing the level of volatility consistent with each investor's risk profile. That Matt, what you and I do is we match the risk profile to the portfolios and the allocation that we invest our client's hard earned and hard saved money in. And he gave us seven points that he wanted us to kind of share. And number one is in general the markets have had a good year and we're overdue for some type of correction, especially in the technology sector.

Speaker3:
Number two in August September correction is consistent with seasonal tendencies, especially during election years. Number three is the blame for the sell off is a growth scare. As unemployment ticked up and fears of a recession, along with geopolitical tensions have risen. I would also just say, Matt, just for all of our listeners out there, one thing that really compounded the problem on the unemployment ticking up is the three straight months of the Biden administration reinstating the unemployment numbers each of the last three months, where they made mistakes and they've had to come back and say, actually, unemployment was higher each of the last three months. And I think the market was tired of hearing of it. Number four is there's a concern that the fed is behind the curve in cutting rates, but inflation is coming down and they're likely to cut rates before year end. Ultimately loosening financial conditions, which is supportive of asset prices for diversified investors. Bonds have rallied playing their traditional role of setting equity market volatility. But again, I feel like you're better off if you can do a bond replacement strategy. This is me talking. If you can replace the bonds, your portfolio with a fixed index annuity and get an immediate 20 to 26% bonus, you've also got the availability of getting 8% guaranteed simple interest each year that you defer and wait to take any withdrawals, and then also you can get up to 325% participation rate in those.

Speaker3:
So a bond replacement strategy is another thing you ought to consider. Number six is what Marc Diorio said was as investors, we also know that these moments present long term opportunities for patient investors, and we'd be on the lookout for those opportunities within our managed portfolios. And number seven is we think that the seasonal weakness will fade. Corporate profits will remain resilient. And with the support of likely rate cuts, the market's uptrend will likely reassert itself in Q4 of 2024. So what does that mean? That means that, you know what, it's going to be a bumpy couple of months. So you're looking in August September kind of correction period. So hold on to that. Also if you're doing dollar cost averaging to reduce your risk, keep putting a little bit of money in to the markets each month. I mean, you're probably doing that with your 41K or your IRA. But I would say be really careful about dumping a huge amount of money into the market here in the next two months. Try to do it more a little bit at a time, and you'll also minimize some of your risk. It's just some of your thoughts on what Mark shared there. Matt.

Speaker1:
Yeah, it's um, it's great for you know, him to and I love that he he sends these statements out on days that are very rocky like we saw on Monday. It's, um, because it's reassuring. It's, you know, he's saying, look, this kind of thing will happen. We're expecting a bumpy ride in August and September. Um, and stay the course. You know, it's it's you know, they're going to be a lot of opportunities, as you said, for people out there who are patient. And keep in mind, folks, the stock market is not the Wall Street casino. You're not in it for, you know, just making going and making a quick buck. You're in things for the long haul when you're talking about your investments and specifically here on retirement results, when you're talking about planning for your retirement, you've got to be in it for the long haul. So yeah, ups and downs will happen. But overall, the trend obviously over time is higher and in recent years much higher.

Speaker3:
Yeah. And it's also a pretty good idea to kind of share kind of our goals with tactical asset allocations, which we implement when we're managing our portfolios. When you implement tactical asset allocation within the portfolios, you you're rebalancing at least on a monthly basis, and you're trying to really invest in different sectors within the allocation and asset classes that you think are going to perform better over the next six months. Each and every month, our portfolios are kind of 50% strategic, which means we're going to rebalance once a year and 50% tactical, which means we're going to rebalance at least once a month, if not more often. We don't make money when we trade people's accounts. We're not going to churn your account. We're trying to get commissions because we manage money, and we get our management fees and our advisory and portfolio fees that are really cost effective and extremely competitive in the market. And if you want information on how we could manage your portfolio and hopefully minimize the risk and minimize the downfall and reduce the market volatility of your own portfolio was experiencing. I would encourage you to go ahead and reach out to us at retirement results.com/plan. That's retirement results.com/plan. You can also call us at 188881403048888140304. But with tactical asset allocation, our goal is by rebalancing we're going to capture like 70% of the highs of the market.

Speaker3:
But we're our main goal is only capture 40% or less of the market losses. How much better would it have been if you'd only lost 40% of the losses that you saw your account lose on Monday? As an example, you really need to protect for the long haul. Our goal here at Active Wealth Management is to build a tax efficient, fee efficient and market efficient portfolio for yourself. That's what we want to do for you. That's what we do for our clients. So all you gotta do is reach out to us again at (888) 814-0304. Again, that number is 1-888-814-0304. We come back from the break. Matt's going to have our financial wisdom quote of the week. We're going to talk about all the things that we said we would at the front of the show. We're going to protect you hopefully a little bit more from market volatility. We're going to talk with you about how timing is not everything and why timing the market is not really a great idea. And then also we're going to help you avoid some financial landmines and also help you delete the IRS from being your partner of retirement. And come right back to this important retirement results show right here on Am 920. The answer and the John Fredericks radio Network retirement results.

Speaker2:
We'll be right back to learn more and schedule your complimentary retirement consultation. Visit Retirement results.com, or call us at (770) 685-1777.

We celebrate the.

Speaker1:
Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the 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 Fort stokes chief financial advisor Got Matt McClure here with us as our co-host, filling in for Sam Davis while Sam and his wife are in Paris for the Olympics. And Matt, you know, we were just talking about, you know, there's a downturn on Monday. You've got a great financial wisdom quote of the week. I think it's going to tie into what people really need to be thinking about regarding their retirement plans and their investment plans, but I wanted to be very specific and kind of share what happened on Monday. Yeah, there was a little bit of recovery on Tuesday, but they're also they gave back a lot of that recovery on Wednesday. I mean, the market's kind of been up and down since Monday. And Monday was a precipitous fall. So the S&P 500 fell 3% while the Dow Jones Industrial Average shed 1033 points, or 2.6%, and the Nasdaq Composite fell 3.4% for the S&P 500 and the Dow. It was the biggest one day percentage drop since 2022. So that is over two years. So if you don't think that's a serious fall in one day, I would beg you to reconsider. Also, if you don't think taxes are going to go up in the future, I would beg you to reconsider that as well. We're going to talk about how to delete the IRS. I've been your partner retirement in segment four. And Matt, go ahead and share Neil deGrasse Tyson's quote, because I think it's really fits perfectly in what people really need to be thinking about right now with this market volatility.

Speaker4:
And now for some financial wisdom. It's time for the quote of the week.

Speaker1:
Yeah. No, it's you're absolutely right. And, uh, Neil deGrasse Tyson. Uh, just in case you, uh, are not 100% familiar, is an astrophysicist and author science communicator as well. And he, uh, is a really smart guy. And so this is something that really is, I think, uh, hitting home for, uh, as we're talking about, you know, all of this market volatility that's been happening this week. And Neil deGrasse Tyson said this. Knowing how to think empowers you far beyond those who only know what to think. I mean that that really does say volumes. And it also says, you know, with a week like we've been having today, you need to be thinking, you need to know how to think, and you need to not be just acting on emotion. When it comes to a week like we've just had in the markets.

Speaker3:
No question. I feel like people should really seek information. They should seek knowledge, um, because knowledge is power in any situation. And I, you know, if you if you want a different result, you're going to do something different. And what I would encourage you to do is go ahead and reach out to us at retirement results.com/plan and put your information in and we'll we're happy to meet with you Matt, Sam or myself or Jacob or Carol happy to meet with you. Any of our advisors in multiple states. We we can work with anybody in any US state. And we'd love the opportunity to help you build that successful retirement. And here's what you get when you meet with us. So we ask you to bring your statements and your your Social Security statements. But here's all the stuff you get. It's a $1,500 value. We're going to do it absolutely for free at no cost, because we're here to help folks during a tough financial time in the markets. Number one is you're going to get a portfolio analysis and you're going to understand the risks you're taking and the fees you're paying and the correlation of your assets with your current portfolio. As it stands right now, what the assets that you currently hold, what is their level of risk as measured by standard deviation? What are the hidden fees you're paying that are maybe in a prospectus somewhere, but they don't actually show up in your statement month over month. All they do is they show up in the bottom line of the account value. So those hidden fees are things called expense ratio. With mutual funds you've got with mutual funds you have 12 B1 fees, you have a share fees and C share fees. It's tough for me to say that math, but it's C share fees. I sold seashells on the seashore. Right.

Speaker1:
Exactly. I was going to say so.

Speaker3:
I'm always cognizant of how I pronounce things in front of Matt, because he was a reporter on the New York Stock Exchange for the floor of the New York Stock Exchange for a year and a half to two years. And it's always intimidating, Matt, to share the mic with you. It's, um, or share the airwaves. We both have our own mics, but I'll just say this it's always intimidating to me.

Speaker1:
Don't be intimidated at all. I'll only make fun of you off the air. No, I'm just kidding.

Speaker3:
There are share fees, so those are ones that where you've got fees coming out each and every year. A share, fees or fees that come out on the front end when you buy a mutual fund. We use exchange traded funds to implement our portfolios. So those are far superior products in just about everybody's opinion. Just if you look at it from a lower fee perspective, and those shares of ETFs can be traded intraday within the trading day, whereas um, you got to get the net asset value at the end of the trading day for mutual funds. And then you can sell your shares of mutual funds if you need to. So we like exchange traded funds. We use those to implement our portfolios. And then the. But here's what you get. You get number one is you're going to get if you meet with us, you're going to get a portfolio analysis gives you the standard deviation, gives you your expense ratio. And it gives you a really cool risk reward scatterplot. If you've never seen one of those we take your top 20 holdings and kind of show them on a grid. And you get to see okay is this investment in the high risk high reward category. Is it in the low risk high reward categories, in the high risk, low reward category, things like that. And and low risk low reward category in those four quadrants. And it's a really eye opening experience when you get to actually look at your portfolio. And if you've never had your advisor show you a morningstar report, like an institutional level Morningstar report with that risk reward scatterplot and with your expense ratio, and with the duration of your bonds and with, you know, your, your standard deviation and all those things, if you haven't seen that before, then I would encourage you to go to reach out to us at 1-888-814-0304.

Speaker3:
That's (888) 814-0304. Happy to help you get started. So number one is a portfolio analysis. Number two is you're going to get a Social Security maximization report absolutely at no cost to you. That's like a 300 to $500 value alone. I'm a registered Social security analyst and I'm one of 15 in the state of Georgia. But we work with folks in Pennsylvania, Virginia, uh, West Virginia, Alabama, Florida, South Carolina, North Carolina, kind of all up and down the eastern seaboard. And we're here to help you figure out how to maximize the income you're going to get from Social Security. And there's a lot that goes into it. There's over 2000 potential decision points within Social Security. It's not just when you're going to turn on income, especially if you're married filing jointly. It's there's spousal benefits and survivor benefits and all kinds of things you need to consider. Um, so number two is going to be a Social Security maximization report. We give that to you in the form of an RSA roadmap. Uh, the association that I'm a member of as a registered social security analyst is the association, the National Association of Registered Social Security analyst. It is very long to say, Matt, but they're very sharp people. They want to take care of you. Um, and I'm happy to be one of those people. I'm here to take care of you on your Social Security income.

Speaker3:
It's going to be one of the most important decisions you're going to make. It's either number one or number two. Most important decision you're going to make in retirement regarding your finances or regarding the income you're going to make during retirement. Number three is I've only got three minutes here, so I got to go fast. So number three is you're going to get a financial plan to your 95th birthday with your current plan. That has nothing to do with us. You're just we're going to let you know, hey, here's what your current plan looks like. It's all independent. We're just giving you the facts. We're not here making anything up. It's not subjective. We also look at your obviously your monthly expenses you're going to need during retirement, your income level and then all your sources of income, the levels of income and then also your effective tax rates, all those things. We take all that into account and we give that to you in just a few pages. Number four is we're going to give you a financial plan to your knife at birthday with our recommended portfolios. And number five is we're going to give you a financial plan to your 95th birthday with our recommended portfolios. That also includes Matt. And I know you love this part. A Roth ladder conversion plan that is strategic, that is going to delete the IRS from being your partner within your retirement accounts. Imagine just kind of talk about you know, why that's important. I know we're going to talk more about it here in segment four. Yeah.

Speaker1:
No it's it's you know if you as as you said earlier, Ford believe as many economists do, the vast majority that I have heard from anyway believe that taxes are going to go up in the future. So why not now at the historically low tax rates. Go ahead and pay the taxes now on the money that's sitting in your traditional IRA, your 401 K, whatever that, you know, plan is that you haven't paid taxes on yet but are going to have to at some point in the future, go and pay it now at the lower tax rate. And then in retirement, when you do that Roth conversion, you're going to get tax free withdrawals. Yeah, completely tax free withdrawals from that Roth account. Now I always say the best kind of money in the world is free money. The second best kind is tax free money. And that's why we love Roth conversions so much.

Speaker3:
Amen. Let's let's get that moving, that's for sure. When we come back for the break, we're going to talk about what to do now and also how to not keep trying to time the market and what you can do to try to help avoid that as well. And we'll also give you a great bond replacement strategy here on retirement results. And thanks for listening to us here on Am 912, The Answer and the John Fredericks Radio Network. It's so cool to be syndicated nationally across eight plus states and 20 plus radio stations. But we love all our listeners. And thanks so much for listening to us here on the John Fredericks Radio Network. And Am 920 answer. Come right back. We're going to talk about what you should do now based on what we're seeing with the market volatility in the US financial markets. Be right.

Speaker2:
Back. Learn more at retirement results. Com or by calling us today at (770) 685-1777.

Don't think sorry is easily said.

Speaker1:
Don't 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.

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. Strokes 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 to retirement results result drivers I'm Fort stokes your chief financial advisor I've got Matt McClure here with us. He's filling in for Sam Davis who's in Paris with friends and family and with his wife, um, watching the Olympics and pulling the US through to a bunch of gold medals. He's doing a pretty job, Matt, I think.

Speaker1:
Yeah, that's absolutely right.

Speaker3:
That's good stuff. It is.

Speaker1:
And I forgot to say, by the way, for earlier, I forgot to say welcome to the weekend. In Sam's absence, I forgot to say welcome to the weekend. And I just I know I let you down there.

Speaker3:
That's okay. I think I, I think he's just really proud to get the plug and that you didn't just straight up plagiarize him. So I think that's great.

Speaker1:
It's it's very true.

Speaker3:
Yeah. So okay, so what we're talking about now based on accounting in the shadows of this past Monday, um, with the market volatility where the market dropped more than it has in the last two years, I mean, it was the largest single day drop since 2022 in the S&P and the Dow. Um, here's what you should do now And I want Matt, I want you to kind of share some thoughts on this. And some of this is going to also tie in with a bond replacement strategy as well. But we want to give you a really good recommendation on what you can really get started and start doing right now, even with this market volatility.

Speaker1:
Yeah, absolutely. I mean, that's, you know, our whole sort of slogan and the way that we do things at Active Wealth Management is, you know, protect, protect and grow. That's what we talk about protecting and growing your hard earned wealth and and, you know, establishing a great retirement income. So it's, you know, it's natural for you to kind of feel in a week like this, okay, how in the world am I going to protect what I have but still get growth when things are so volatile? Right. And then also the older you get, the closer you get to retirement. Your risk tolerance is going to go down just just very naturally, you know, especially if you're in that sort of retirement red zone, which, you know, is kind of a ten year window there the few years before retirement, a few years into retirement. So, you know, if you've got this sort of buy and hold kind of strategy that you've been doing, which isn't that much of a strategy, it's just kind of a thing you've been doing. It's not there's nothing really strategic about it. Um, but you've been wanting to take some of the risk off the table. Now is the time to consider doing that.

Speaker1:
And we help people do this all the time. As you've been talking about Ford. And one of the ways that we do that is through a vehicle called a fixed indexed annuity. Now, if you have heard the term annuity mentioned, particularly on the radio or on TV, chances are you might have heard some negative things about it. Well, two things to say about that. One, the people who say that either are, you know, have their own motivations for saying something like that Uh, or they just are not familiar with the new kinds of annuities that are out there because they're not your grandfather's or your grandmother's annuities. And second, we only work with highly rated carriers and those that have just great, uh, reputations and records to stand on. So a fixed indexed annuity, by the way, it's a long term investment. You make a lump sum deposit, you can roll over funds from your retirement plan from, you know, you can put money in there from your investment accounts, whatever. But your money if you if it's a qualified plan. So meaning it's tax deferred, then that's how it's going to grow. Tax deferred.

Speaker3:
So also is not when you do the rollover Matt. It's not a tax event right. So there's not you're not going to be taxed when you do the rollover. So you're going to be able to roll it over tax deferred as well. Yeah.

Speaker1:
And the real advantage here and the reason that we talk about this as far as a protection strategy, is that your investments performance is tied to the market or tied to a specific index like say, the S&P 500 or the Nasdaq or Russell 2000, or, you know, even some proprietary indexes that that some of the carriers use, but it's not directly invested in the market. So that means that your principal is protected and the growth that's been credited to the account is also protected. So you participate in the upside of the market, but you don't have the downside risks. So in a day like you know we experienced on Monday, you don't have to worry about your money going somewhere because it's not going to you don't have to worry about if we have another year like we had in 2022, when, you know, the S&P 500 was down, what was it for more than 20% or something over the, you know, year over year in 2022? You don't have to worry about those losses either. Zero is your hero in that particular case. Yeah.

Speaker3:
So I want to jump in real quick Matt. So how these work, if you're driving around and you're listening to us or you're listening to us on retirement results. Com in the episode part of our website, or if you're listening anywhere where you can get podcasts and we've had over 14,000 downloads of the podcast so far this year, which is pretty remarkable. Um, and Matt, I appreciate your contribution to that. As our roving reporter and the host that's filling in. But I want to just quickly tell you, I'm like, Matt can continue on this list, but here's the deal. Here's how these work. They're going to take 100% of the money you give them. So let's say you put $100,000 in the nationwide peak Ten. Nationwide's an A-plus rated carrier. They have to do a financial reserve of $100,000. They have to go buy ten year, ten year US Treasury notes and put 100 grand in those. They can't go invest it into mining stocks or casino stocks or anything. Crazy, right? I'm not saying the casinos and mining stocks are crazy, but they can be volatile and very speculative. So what you can do, though, they're they're going to invest that money. And then as those ten year US Treasury bonds are gaining interest and generating interest, they take the interest from those bonds, the money that's generated from that interest, and they invest it into options, and they give you a portion of the money and they take a portion of the money. What's great about it right now with interest rates so high is that, you know, right now we're averaging right around 4% on the ten year US Treasury bond.

Speaker3:
That's the annual rate of return says about right around 4%. That is much higher than the 1.4 to 1.8% traditional rate of return in interest throughout most of my career, from ten year US Treasury. So they're able to give you triple of what they've been able to give you in the past. So now is one of the greatest times ever to invest in fixed index annuities. Also, I would encourage you if you have ever thought about doing it or if you've got an old annuity, and we're going to talk about those in my problem solver, I would encourage you to go ahead and reach out to us at retirement results.com/plan. We'll do an annuity x ray. We'll review your annuity. And also if you've got a pension you're thinking about taking a lump lump pension or not a lump sum pension or not. We're happy to help you do that. Um, I think it's a really good idea for you to consider investing in a fixed index annuity like Matt's talking about, because you can get an immediate 20% bonus on your pension lump sum, and I think 120% is better than 100%. So there's that as well. But that's how those work. And so if the if those options go to zero, zero is your hero and you can't lose principal because 100% of your money is actually invested in a ten year US Treasury, and that principal is protected, that's how those work. And there's reason why you've heard some negative things that Matt talks about about fixed indexed annuities or annuities in general.

Speaker3:
There's two big reasons. Number one is variable annuities give all annuities a bad name. Variable annuities are high in fees. And they're securities that are at risk in the market. So don't ever invest in those. And we've got some people that moved money from a variable annuity to fixed indexed annuities with us this week. And I just want to tell you about that. And the problem solver number two is the wirehouses out there. All the brokerage houses, all the brokers, they're all saying all really bad things about annuities because they don't want to lose money from the bonds that they're getting. Advisory and portfolio fees on bonds, pay income. And guess what? So do fixed indexed annuities. But the fixed indexed annuities do it at a higher rate and with greater protection against interest rate risk and reinvestment risk. I'm a huge fan of fixed indexed annuities as a bond replacement strategy, and wirehouses are not because they get big fees on issuing bonds and all kinds of things, I promise you. Fixed indexed annuity is going to illustrate better than a bond portfolio every day of the week. And we've got different financial analysis to show that. And there's been checked by third parties. We're happy to show you all that stuff. Go ahead and reach out to us at retirement Results.com, or go ahead and call us at 1-888-814-0304 to get your free annuity x ray or portfolio analysis. And Matt, you can keep going on this. I know we've only got like a minute left in the segment.

Speaker1:
Yeah no worries. Um, that the last thing that I had on my list of, of, you know, kind of the, the highlights of a fixed indexed annuity here is so important for people who, you know, want to have a reliable income stream in retirement because that's a vehicle. A fixed indexed annuity is something that you can use to create that lifetime income stream and income stream you can never outlive. I mean, you know, it used to be you would go to work for a company for 40 years, then you would retire, you'd get the gold watch and then you'd have a pension that lasts, you know, for however many years after you retire. And those days are pretty much gone unless you work for, you know, what is it? I think about 14% of US employers now have pensions that they offer, but you can actually create your own personal pension, and that's an income that's going to last at least as long as you do. And that just provides so much peace of mind for people who we work with every day.

Speaker3:
Yeah, that number actually from US News and World Report, I think they reported last year that it's only 14.1% of all S&P 500 companies actually provide pensions to their employees. So when we come back from the break, we're going to go into segment four. We're going to share our problem solver. And we're going to talk about this bond replacement strategy a little bit further. And really what to do now as things have really changed in the stock market this past week, with a significant, precipitous, uh, downturn in the market on Monday and with a little bit of recovery and a little bit of give back as well, that recovery, we're going to tell you what to do now. We're just going to try to get you on the path, the right path to help protect and grow your hard earned and hard saved assets and also get the retirement income portion of your portfolio absolutely protected. You're listening to retirement results on Am 912, The Answer and the John Fredericks Radio Network.

Speaker2:
Thanks for listening to retirement results. Schedule your complimentary financial consultation now at retirement results.com.

Speaker5:
And you don't know where to go to. Why don't you go where fashion sits. Puttin on the Ritz.

Different types of wear a coat, pants with stripes and.

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

Speaker3:
Com and welcome back to retirement results on Fort Stokes. Your chief financial advisor got Matt McClure here filling in for Sam Davis, our illustrative co-host. Um, Sam is in Paris with his wife and some friends. And, Matt, we're so glad you're here with us. You're a roving reporter, and it's great to have you here co-hosting. And, um, we I think I feel like we've done a good job informing the folks about what to do, especially with what's going on this past week in the markets. And you've got a really great update on why people really need to consider to stop trying to time the market. And can you go ahead and share a little bit of that information for us?

Speaker1:
Yeah, absolutely. I mean, here's the thing. You and this week is a perfect illustration of it. You don't need to try and time the market. Chances are you can probably get it right. You know the buying and the whole buying and selling thing. Buy low, sell high, right. That's what that's what everybody always says. Chances are you can get one of those two, right. But not both. I mean, even, you know, a lot of, you know, professional money managers might have a problem doing it in both directions. So it's not something that you want to try and do. And you also, as we were saying earlier, don't need to invest with emotion. That's when people really start to try and time the market here. Um, but you really need a solid plan in place that is going to be a solid plan and protect and grow your wealth no matter what happens in the markets. And here's the thing as well, when we talk about this concept. So you get a plan in place, right? And you go forward with that piece of mind that we were just talking about. That means so much to the people who we work with all the time. But here's the kind of an illustration of this, talking about how, you know, timing really isn't everything. Right? So if you were to invest $2,000 a year, let's say, which, you know, not a lot, I think that's doable. Pretty much anybody. Right, $2,000 a year for retirement.

Speaker3:
And started doing that. Start now.

Speaker1:
Yeah, exactly. Um, just bottom line, get it going. And so let's say we look at a two decade period, right? So from 2001 to 2020, if you invested $2,000 each year for retirement, let's look at some different scenarios here of how you would have done at the end of 2020 if you timed everything perfectly. Buy low, sell high, right? Which as I said, you can get one of those, right? Probably, but not both. Then if you did happen to do that, if your crystal ball is out of the shop and it's fixed and you know exactly what's going to happen, you timed it perfectly $151,000 plus it's what you'd end up with. Now, if you invested in that that money immediately, in other words. So you just it's kind of like a dollar cost averaging thing. You get that $2,000 and you just put it in on a regular basis. 135 134 is what you get with actual dollar.

Speaker3:
It's more important for you to get started.

Speaker1:
Exactly. I mean, that's the thing, if you invest it immediately, you you really do get yourself started on that road. And then you do the dollar cost averaging. So you invest on regular intervals and you know, and just do it over time. It is right at $135,000 just below that for actual dollar cost averaging there. If you have bad timing. So you maybe you get one of those, right. You get it right on the buy side, but not the sell side, $121,000. And here's the thing. If you stay in cash, you get that money. You just put it under your under your mattress, or you put it in a savings account at the bank or your checking account. The bank, God forbid, $44,000 and change. So you don't want to stay in cash. You don't want to keep that. Money is not doing anything for anybody sitting under the mattress. And you, of course, don't want to try and time the market because you could you see that swing there of $30,000 one way or another with, with great timing or with bad timing. So what you want to do is do that dollar cost averaging, get yourself invested and stay invested for the long term.

Speaker3:
No question. I mean, I think I just I just think it's really important that people consider staying invested. And you can also get invested with safer products that are even safer than what the, you know, bonds have really taken it on the chin the last four years as the interest rates have gone up. In fact, the 60 over 40 portfolio with 60% stocks and 40% bonds. That 6040 portfolio had its worst year in 41 years in 2022. That's another example of what not to do. Just got to be careful and not do the 72 year old strategy of, hey, let's go invest in 60% stocks and 40% bonds. Here's here's what we want you to do. Number one is based on this market volatility. This is what we're asking. And what we're recommending you do. Number one is consider working with a fiduciary to get some expert advice. Number two is do everything you can to eliminate the mutual funds in your portfolio and invest in exchange traded funds within your portfolio. I think you're going to be much happier with those, because they're lower in fees, and you'll be able to hold on to more of your money. Number three is consider a bond replacement strategy and replace the bonds within your portfolio that give you income with fixed indexed annuities. And we're happy to help you.

Speaker3:
All you got to do is reach out to us at retirement Results.com. And next we would ask you to consider a Roth ladder conversion to delete the IRS out of being your partner in your retirement accounts, whether that's a 403 B, a 457 A, 41K, which most of you have or have had, or an individual retirement account, an IRA or a simple IRA or a Sep IRA for you business owners. I would encourage you to go ahead and implement a Roth ladder conversion, where you move some of the money from your IRA to your Roth IRA. You try to move a dollar for dollar and you pay the taxes using savings account checking account money or investment account money or rental income money, or wherever you've got assets. And that way you're moving the money that you're taking out of the IRA and putting it straight into the tax free bucket of the Roth IRA. You're really going to be much, much happier, in our opinion. I mean, Matt and I believe in this also. Here's why I know. Here's why you'll be able to know that it really works. We're going to make less money because you're going to actually have to pay taxes on the money you're converting. So we're truly putting your needs ahead of our own.

Speaker3:
We want you to pay less money in taxes throughout your 30 to 35 plus year retirement. And let me ask you a question. As you're driving around right now or you're listening to us on a podcast, do you really want to be paying ordinary income tax on money you earned 20 years before, after you retired? You're in your 80s and you're paying taxes on every dollar you take out of your IRA. I don't think so. I don't think you're going to want to do that. So I think it's a really good idea to consider deleting the IRS out of being your partner, at least with your retirement accounts, at least to try to get going on some of that. You also want to get going on that before 73, because your conversions do not count as your withdrawals for the required minimum distributions. So those kind of compound things and drive up your ordinary income for those years that you're making those conversions. So those are big things that I would consider doing in this shadow of the market having a precipitous fall on on this past Monday, which is the largest single day drop since 2022. And here's what we talked about today. Let's go ahead. Let's go ahead Matt. And well we have four minutes left. Um, yeah.

Speaker1:
A little over three now.

Speaker3:
What do you want to. Well, let's just go ahead and do the final countdown. And Matt, let's go ahead and share the final countdown. It's the final.

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

Countdown. The final countdown.

Speaker3:
So on today's show, we gave you a market update. What happened this past week in the market, specifically what happened on Monday. We also talked about how you can better protect yourself from market volatility and what you should be considering doing now. Matt shared in this segment how timing really, really isn't everything and why timing the market really isn't a great idea. It's more important that you get started saving. Um. That's important. And then also right here in this countdown, I want to give you a quick problem solver. So we have a gentleman. His name is Andrew. He works for the government and he's got over $4 million and really sharp guy, but he owns $106,000 worth of variable annuities that he just had for since 2009 and 2012. And he wanted to delete the office because he had up to 3.9% in variable annuity fees in one of these annuities. I'm not going to name the variable annuity companies, but I will tell you they were the fees were unbelievable. And the payouts aren't great with variable annuities on the income side. And they were also at risk in the market.

Speaker3:
He got out of those then went and got a 26% immediate bonus on that money into the account value that's going to vest over 14 years. That's a pretty good situation. He went from 3.9% down to 0.95% on the fees, and there are no advisory portfolio fees for that. So that's our problem solver for the week. We've got a we've had a great show, hopefully giving you some things to really work on. And specifically, number one, consider talking to a financial advisor. Number two, let's get more fee efficient and delete the mutual funds out of our portfolio and and move those over to exchange traded funds. Number three, let's consider that bond replacement strategy. And let's get going on all that stuff. And again I hope this helped you this week. And if it did, I would encourage you to reach out to us at 1-888-814-0304. That's (888) 814-0304. And we're happy to help you get started today. Remember, Thomas Jefferson said, if you really want to save money, the best time to save money is when you have it. So let's go ahead and do that. Have a great week everybody.

Speaker2:
Thanks for listening to retirement results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your complimentary financial consultation, call us now at (770) 685-1777. That's (770) 685-1777. To connect with a qualified advisor. To learn more about our mission and our team, visit retirement Results.com. Investment advisory services offered through Brookstone Capital Management, LLC, a registered investment advisor and active wealth Management are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. 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.

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