Retirement Red Flags: 5 Mistakes to Avoid While Planning Your Future

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

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

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

Ford Stokes:
Welcome to Retirement Results on Ford Stokes, your chief financial advisor. I've got Sam Davis, our co-host and senior financial advisor, here with me on the Retirement Results financial radio show here on Am 920. The answer. We're so glad you're with us. We've got an important show today, and it's going to be a fun show. And it's gonna be an extremely informative show today. The title for our show is Retire Smarter by avoiding these five mistakes. We also have incredible audio from Senator Tommy Tuberville of Alabama. At the US Senate hearing. It was a Senate hearing for health, education, Labor and pensions called the Help Committee. And with everything that's going on with Social Security, you're darn right Americans need help. And I would say Capitol Hill needs help. And it's interesting. The hearing was about how Americans shouldn't be taxed twice for Social Security. We're going to play that at the beginning of segment two. It is an eye opener. I will just tell you, you're not going to believe what you hear. And I just want to give credit to Senator Tommy Tuberville or Coach Tommy Tuberville for encapsulating what everybody knows to be true. Um, it is just literally the perfect example of government waste, but it's an important thing for you to hear if you're a Social Security recipient or you hope to receive Social Security in the future.

Ford Stokes:
Please stay tuned and be here for segment two. You're going to want to hear that. We're going to play it right up front of segment two. But we're going to talk about these five mistakes to avoid so you can retire smarter and happier. Uh we're also going to talk about how Americans love pensions and what to do if your employer does not offer one. And also if you don't think pensions are important, try taking it away from somebody. We're also going to talk about why now is the time to build your own retirement plan, and how we can help you get that done, because we want to help you protect and grow your hard earned and hard saved wealth. We want to help you build a tax efficient, fee efficient, and market efficient portfolio. We've also got some fun stuff in segment four talking about the top vacation destinations for retirees where American seniors want to retire. And first, our financial wisdom. Quote of the week. Sam, go ahead and share that with us today.

Producer:
And now Folsom Financial Wisdom. It's time for the quote of the week.

Sam Davis:
This week's quote of the week comes to us from Warren Buffett, the Oracle of Omaha. We do like sharing quotes from Warren Buffett on this show fairly often, and Warren Buffett once said, it's good to learn from your mistakes. It's better to learn from other people's mistakes.

Ford Stokes:
Yeah, there's no doubt about it. I mean, everybody can see where people haven't saved enough. And, you know, the best time to save money is when you have it. And so I would say we need to do a better job at that. Also, we're going to give a shout out to, um, some folks who reached out to us this week, uh, Mary and John's Creek. We look forward to seeing you on Monday. Thanks so much for listening to Retirement Results. Mark and Karen and Roswell, they've got a really neat house that they built and not too far from their kids and their grandkids in the same neighborhood, in fact. And Mark and Karen's been great to speak with you guys and help you guys out. And then Roger and Kathy in Alpharetta. Thanks so much for reaching out to us. Uh, specifically about what to do about Roth ladder conversion and what to do about Social Security. Thank you guys and gals so much for listening to Retirement Results each and every week. Many of those Sam or folks that have listened to us for quite a long time, and if you've been listening to us for quite a long time and you just haven't called us yet, and you're like, you know what? I do need to go ahead and call Forward and Sam and have a conversation.

Ford Stokes:
I would encourage you to reach out to us just by calling (770) 685-1777 again, (770) 685-1777, or you can reach out to us at RetirementResults.com and click that schedule a consultation button in the upper right corner. We appreciate all of you who listen to the show. You guys and gals are result drivers for your own retirement, and we're here to help inform you each and every week. But we're going to talk about how you're going to retire smarter by avoiding these five mistakes. Mistake number one is failing to plan. Many people carry on living for decades as if retirement will never arrive, but for a large majority of people, it does not. Planning to retire encourages more mistakes, like failing to budget, save and invest so that you'll be able to afford living expenses later in life when working becomes difficult or even impossible. And Sam, what we're trying to do is help people with this whole plan and program today. We're trying to help them. Do retirement right. And you need a solid financial plan that includes a clear vision for what you want your retirement to look like. A plan for when you want to take Social Security, an income plan that will allow you to beat your own budget. A sound investment strategy for any retirement accounts you may have.

Ford Stokes:
However, behind these seemingly simple principles lies a complex set of ways it can all go wrong. That's why we're sharing a list of five mistakes to avoid so you can retire and plan for retirement with peace of mind, and so you can build a successful retirement. Now let's go ahead and give you mistake number one. Mistake number one is failing to plan. Many Americans are facing age discrimination, especially with there being a large number of millennials out there. And you're seeing baby boomers and Gen X folks kind of getting pressured out of the market. And they're going to lower paying jobs. So you want to have a plan. You want to have a nest egg. Remember human capital and actual capital. When we first start working, we have a lot of human capital because you have so many years ahead of us, so many working years ahead of us, hopefully. But as we age, our human capital bank decreases and depletes. So hopefully we're adding real wealth capital so that we don't have to work later in life. And then our assets can actually generate an income later in life when our human capital has been depleted. So we don't have to go back to work at Walmart, things like that. Sam, what's mistake number two that people should be avoiding to retire smarter?

Sam Davis:
Yeah. The second one we really want to focus on is avoid mismanaging tax advantaged retirement plans. So there's a lot of people out there who actually fail to contribute enough to their workplace IRA or 401 K to get that maximum employer match. And we just want to let people know that if you're not taking advantage of this match, it can be a very costly mistake, because those who are falling into this trap are missing out on what is essentially free money in 100% return on that percentage of contributions that your employer is willing to match. So a couple other 401 K and IRA mistakes to avoid, especially when it comes to taxes, is you don't want to borrow from a plan and fail to pay it back. There's going to be some penalties there. And also it's going to really set you back with regards to saving long terme for your future. You also want to do everything you can to avoid taking those early withdrawals that subject you to a penalty. That's any withdrawal before 59.5, and you do not want to invest your hard earned retirement plan funds exclusively in shares of your employer's company. Often that's offered in workplace retirement plans, but you want to diversify your investments always to help minimize risk. And that is mistake number two to avoid.

Ford Stokes:
Yeah, we really like for people to consider Roth ladder conversions, to try to move money from those tax deferred accounts to Roth IRAs so they can get truly tax free. I'm their tax advantages to an IRA. It allows your money to grow tax deferred. But at some point you're going to have to pay taxes in the future on the distributions from those. And. You know, unfortunately, the IRS is not the world's greatest partner in retirement. It's not the kind of partner you want, because they're always going to be out there with their hand out every time you take a a withdrawal from your IRA. I would encourage you to do everything you can to delete the IRS from being your partner in retirement. And we can help you do that. Here's a hint, folks. If you move money with a Roth ladder conversion from your IRA to. Your Roth IRA. You've got an opportunity to save six figures. If you have over $400,000 sitting in an IRA account. During a 35 plus year retirement. Let me repeat that. You're going to say over six figures. That's over 100 grand, folks.

Ford Stokes:
At least that you're going to save if you've got over $400,000 in. A41ka 403 B, an, IRA, a Sep, IRA, etc.. So it probably is worth it to you to consider a Roth ladder conversion as well, to really take advantage of those tax deferred retirement accounts and trying to move that money from an IRA to a Roth IRA. We'll come back with a break. We're going to talk about mistake number three, which is not planning for Social Security. And we've got that audio from Tommy Tuberville in the Senate hearing, the health, education, Labor and Pensions Committee hearing that happened just recently. I think you're going to want to hear this. It's going to blow you away. How honest and upfront Senator Tommy Tuberville of Alabama was. And it really spells out exactly what Americans are dealing with and what they're facing with Social Security. As a registered Social Security analyst, I implore you to come back and listen to this audio from Senator Tommy Tuberville of Alabama. We'll be right back on Retirement Results right here on Am 920. The answer?

Producer:
Thanks for listening to Retirement Results. Schedule your free financial consultation now at Retirement Results. Com or by calling toll free at (888) 814-0304. That's (888) 814-0304. 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 RetirementResults.com to schedule your no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at RetirementResults.com. You're listening to Retirement Results. And now back to the show.

Ford Stokes:
And welcome back to Retirement Results on Ford Stokes, your chief financial advisor. I've got Sam Davis here with us, who's our co-host and senior financial advisor with Active wealth management. And we're talking about the five mistakes to avoid if you want to retire smarter here in the United States of America. And mistake number three is not planning for Social Security. And I've got an important clip I want you to hear first. Listen, I'm a registered social security analyst. There's only 15 of us in the state of Georgia. And Social Security income is either going to be the number one or number two source of retirement income for a majority of Americans. So it's a very important decision on when to take Social Security income and what to do, and also how to plan for income and make sure that you don't have a negative income gap when you start retirement and you start with a positive retirement income surplus, and we can help you plan for that. But before we get into this mistake number three, which is not planning for Social Security properly, we want to do everything we can to give you enough information. So I want to play this important audio clip from US Senator Tommy Tuberville of Alabama. He's a Republican senator from Alabama. He literally just stole the show at the Senate Health, education, Labor and Pensions Committee, what's known as the health committee hearing on how Americans shouldn't be taxed twice for Social Security. Sam, go ahead and play that audio clip.

Tommy Tuberville:
This is all a scam. I mean, we got people that's getting ready to retire, that's going to try to live off 2 to $3000. Impossible. It's impossible because what happens, it comes up here, we spend it. We're 35 trillion in debt. We don't have any money. We're dead broke. And then taxpayers have $2 trillion in credit card debt. We are in huge trouble in this body. We had better start figuring that out, because we're going to have a run on this city here soon, and there's going to be about 150 million people coming up here and saying, where's our damn money that we paid in? I could have put my Social Security money 40 years in the market and probably be worth 8 to 10 million a day, but the federal government wasted it. So it's not going to help people. People are going to have to work, continue to work longer and longer. Am I right, miss Ginger? Can you say something about Social Security and and it being taxed? For some reason, we're taxing people for the second time on Social Security that they put into into an account.

Senate Hearing Testimony:
Yeah. And I'd like to point out when Social Security was first founded, those who established it, it was started out as a 2% tax. And they said, this will never take more than 6% of your income. Today it takes 12.4%. And depending on whether you go with CBO or Social Security trustees, it needs to take between 15.8 and 17.5%. So we're talking about thousands of dollars more per year. It also was actually only originally recommended that the tax be up to $66,000, the equivalent in today's dollars of earnings. But over time, it has expanded massively and the money has been spent every year. So where is everybody thinks this money's been set aside for me? No. For the past 13 years, every dollar that has gone out of workers paychecks has gone immediately to pay promised benefits. And that's what happens when you have a system that enables those in charge of it to spend the money in the immediate terms and leave the buck to the next generation that's coming along. And because Social Security has grown so much, it's actually to the detriment of lower income workers in particular, who have to pay such a large share of their check to Social Security. They have little left to save for retirement. And I think that workers need an option to have their money in something that actually earns a positive rate of return, and that can't just immediately be spent by Congress.

Tommy Tuberville:
I have a 28 and 29 year old. Two boys got jobs working hard, paying Social security. They asked me all the time, dad, will I ever see any of that money? Will they see it?

Senate Hearing Testimony:
I think they will see some of it. That's the exact same thing I hear whenever I ask a group of younger workers, and none of them raises their hands. So I think that there will be something there, but it's not going to be what has been promised.

Senate Hearing Testimony:
What I would add is when we talk about Social Security or we talk about pensions, the two things that they both have in common is that guaranteed income, you know, what you're going to get, generally speaking, at the end of it, what I reference in terms of protected retirement, we have developed now solutions to get it both of those in a very efficient way. And they also address the issue around market volatility because we have step ups and lock ins. And it's a very efficient way to deliver that to millions of Americans that we we've been talking. And that's all because of what you all did around secure act 1.0 and 2.0. They have put us in a position to do that. And that's why I'm really encouraging us to have every 401 K plan, 457, plan 403 B, plan at at least one of those solutions, so that the American workers can choose if they want to know what they're going to get in retirement.

Tommy Tuberville:
Young people of all ages ask me, why can't we put our money in our own 401 K instead of put it in Social Security? Is there an answer to that?

Senate Hearing Testimony:
What I love is that they're asking the right question. Savings in any way is a good thing. And I think there's a place for Social Security, there's a place for pensions, and there's certainly a place for what we're doing in 401 K plans.

Ford Stokes:
So it's quite the feedback from Tommy Tuberville. He was very plain spoken, extremely direct in that help committee. And again, that Help committee stands for health, education, Labor and Pensions. And he was in that committee hearing. It was unbelievable what he shared. One of the things that was the most profound to me was that he shared if he'd just taken the money, he'd put in Social Security over 40 years, it would have been worth 8 to $10 million if he'd have put it in the US markets. I thought that was really interesting because the government is squandered the money. I mean, it was remarkable. One of the experts said she talked about how 100% of the dollars that are being paid into Social Security are going out to Social Security recipients. In fact, here's some math folks, like in 1980. 50, there were 16 workers for every Social Security income benefit recipient. And today there's 2.6 workers for every Social Security income benefit. Recipient and that is unbelievable to me. That we haven't had a better plan for it also. It was supposed to be no more than 5 or 6% of your income, and now it is turned into 12.4. There's 6.2 that you pay in and 6.2 that the employer pays in.

Ford Stokes:
If you're self-employed, congratulations. You have to pay what's called a self-employment tax, which is 6.2 for you and 6.2% for the employer. So that's 12.4. So everybody's on a level playing field. And its real concern. Also, considering that, you know, the Congressional Budget Office and Social Security Administration came out last January and said, you know what? We're looking at the old age Survivors Insurance Trust fund being depleted 100% by 2033. That would mean a 23% across the board cut. So if Congress doesn't do something, it's a real problem. And I agree with Tommy Tuberville. There's 150 million people going, hey, where where's my money? And it just goes to show you the waste. That comes from the US federal government. It's unbelievable that that Tommy Tuberville could have put all the money he's paid into Social Security and put it into the market. And that money would have been worth $8 million. Can you imagine, Sam, if every American had done that instead? And we'd have a country full of millionaires? And how much wealthier and how much better we could take care of the poor and the disadvantaged, and how many more medical advances we could have gotten, how much longer people would be living. It's just unbelievable to me.

Sam Davis:
Yeah, it's really disappointing that as hard as you work everyone out there listening to be good stewards of your money and balance your budget and your household, that the people who we've elected and are sitting in Washington DC are not being good stewards of the people's money. And so that's why this is mistake number three on our list today is not having a plan for Social Security, because you need to understand how to make the best decision for you and your household, but also understand that what's happening in Washington, DC can have a serious impact on your own household economy.

Ford Stokes:
One of the things that he said was really profound is if you think people are going to be able to live on 2 or $3000 a month, as you said, it's just not going to happen in the future, even with cost of living adjustments, because inflation just continues to ramp up. And it is one of the biggest problems for people in planning for retirement is that inflation. When we put into our plans, we we count on a 3% inflation. We don't count on 8.7% inflation. Social security is a primary source of retirement income for American retirees. To qualify for monthly lifetime benefits, all you have to do is work the required number of years, which is also get 40 quarters while contributing through mandatory payroll taxes. Social security sounds simple and straightforward, but there are some mistakes you'll want to avoid, and we're going to talk about those mistakes when we get back from the break. As a registered Social Security analyst, I got to tell you, it is so important to get a plan for Social Security, but also to get a plan for your retirement income to make sure you don't have a negative retirement income gap, and also plan for the eventual loss of one of your Social Security income checks that comes into the household with the death of a spouse. Come right back. We're going to talk more about how to solve for those problems right here on Retirement Results. Thanks so much for listening to us right here on Am nine four. The answer come right back because we're going to talk more about the five mistakes you want to avoid to retire smarter. Here in the United States of America.

Producer:
The national debt clock is ticking. But your retirement clock is too. It's time to take control of what you've worked so hard for. Schedule your free financial consultation now online at Retirement Results. Com.

Producer:
When it comes to retirement planning, focus more on income than building a big nest egg. I'm Matt McClure with the Retirement Radio Network, powered by AmeriLife. It may sound counterintuitive, but that big nest egg number you probably have in your head means a lot less than the income you'll have each month in retirement. The math has.

Christine Romans:
All changed here, but the bottom line is time is your superpower. Save as much as you can.

Producer:
Nbc news senior business correspondent Christine Romans recently said on The Today Show that you should not just rely on Social Security in your retirement years.

Christine Romans:
Social security alone is not likely to support you in the manner to which you're accustomed, right? You want to wait as long as possible to get that maybe 70. If you wait till you're 70 to collect Social Security, you'll get the biggest check.

Producer:
And she says, contribute to your retirement accounts early and often. So this is from fidelity.

Christine Romans:
They say at age 30 you should have one time your salary in a retirement account when you're 30. So think about what your salary is at age 30, and that's how much you should have in your entire retirement account. By 50 it should be six. This is where I start to freak out, because I know a lot of people can't and don't do this by age 67, it should be ten times.

Producer:
A personal pension. Using a fixed indexed annuity is also a great option for many pre-retirees and retirees to consider. It offers protection from market volatility and a guaranteed stream of income that will last the rest of your life, no matter how long you live. Having a big nest egg may sound nice, but focusing more on income will set you up for success in your golden years. So, do you know where your paychecks and play checks will come from each month when you leave the workforce? That's a key question to consider as you plan for what's ahead with the Retirement Radio Network. Powered by Amira Life. I'm Matt McClure.

Producer:
Are you concerned about inflation, market volatility, rising taxes and how it all could affect your future in retirement? Then tune in to Retirement Results to learn how to protect and grow your hard earned money. Retirement Results Saturdays at noon and Sundays at 11 a.m. right here on Am 920. The answer schedule your free retirement consultation now by dialing pound 250 from your cell phone and using the keyword Retirement Results. That's pound 250 key word Retirement Results.

Ford Stokes:
And welcome back result drivers to Retirement Results on Ford Stokes, your chief financial advisor who got Sam Davis, our co-host and senior financial advisor here on the show with us. And we're talking about mistake number three to avoid it. If you want to retire smarter. And that mistake number three is not planning for Social Security. And we want to give you some examples. So if one member of a retired married couple dies, the survivor must carry on just one monthly check. The larger of the two. For this reason, the higher earning partner may wait to claim benefits as long as possible, because delaying your benefits increases your eventual monthly payment. As a registered Social Security analyst, it's really important for you guys to get Social Security right. We want to help you. Many people also make the mistake of relying too heavily on Social Security to fuel their monthly budget needs. Your Social Security benefits have built in inflation protection, with cost of living increases, which occur almost every year. However, many people believe these colas only partially cover what is the true rate of inflation today? Example we talked to John Williams with Shadowstats Comm. He's been an economist with over 50 years of experience, and he estimates that the real rate of inflation is actually 14.1%. Despite these increases, the average benefit is not very high, providing an annual income of only $22,884. This figure underscores the importance of additional savings to supplement Social Security benefits for a comfortable retirement. About 97% of Americans aged 60 and older either receive or will collect Social Security income benefits, according to the SSA.

Ford Stokes:
Among elderly Social Security beneficiaries, 37% of men and 42% of women receive at least half of their income from Social Security, according to a 2021 Social Security Administration report. And also Social Security's finances are under pressure, folks. Beneficiaries are living longer, meaning the program pays recipients over a longer period of time. Approximately 10,000 baby boomers are retiring every day, meaning the share of workers paying into the system via payroll taxes has been falling relative to the number of beneficiaries, creating an imbalance. As a result, without any action from lawmakers, the Old Age Survivors Insurance Trust Fund that supports Social Security benefits for retirees is estimated to run dry in 2033, as we said in the last segment, and only about 77% of promised benefits would be payable if the trust fund runs out, that means you're going to take a 23% across the board cut. Listen. Result. Drivers, please don't enter retirement without a plan for Social Security. We anticipate some changes in the coming decade, so it's critically important that you get in touch with us to learn how to maximize your own Social Security income benefit based on your unique situation and your needs. Go ahead and reach out to us at RetirementResults.com, and you can click that schedule consultation button in the upper right corner. Or you can reach out to us by calling us at (770) 685-1777 again (770) 685-1777. And Sam, why don't you go ahead and share mistake number four to avoid to retire smarter?

Sam Davis:
Yeah. The next mistake is emotional investing. And studies have shown that the best approach is to stay fully invested through good times and bad. Trying to time the market, especially on the basis of your emotions, is one of the least promising investment strategies you could have. So, for instance, you could get concerned and sell off a bunch of securities during a bear market and convert to something safe. We saw a lot of people do that during the early months of the Covid 19 pandemic. People got concerned, went into cash, and they didn't take advantage of any of the gains that came thereafter. What they did was essentially lock in the losses and make it harder to participate in any future upturn. So we have a really cool graph that we'd love for you to take a look at. You can reach out to us at RetirementResults.com and we can show you this, but it'll demonstrate how people get. Driven by their emotions as the market goes up and down. So as things start to go up, they may be encouraged, confident, thrilled when things start to peak. They may be euphoric, but as things start to turn into a bear market, they'll become surprised, nervous, worried, even panic stricken. And often that's what leads investors to buy high and sell low. So you want to keep the emotions out of investing and forward. I think that's one of the biggest reasons why it's so beneficial to work with some licensed professionals when it comes to managing your investments.

Ford Stokes:
Yeah, we help people get a little bit more comfortable by employing both tactical asset allocation, where we're rebalancing almost on a monthly basis, and then also strategic asset allocation, where we're rebalancing once a year. Our portfolios are basically built for a 5050 allocation strategy, 50% tactical and 50% strategic. You've got somebody to take care of it. You can take care of your own retirement and just have a great time. During retirement. I mean, you've earned it. So you need to enjoy retirement and spend less time looking at stock ticker, because I promise you, you won't remember any of the times that you went and ran. To the television. You ran to the computer to go check out how your portfolio was doing. You're going to remember those moments where you spent time with family, where you're at a grandkids graduation, or you got a grandkids wedding, or you were traveling with the entire family and did an entire family trip where everybody went and had fun at the beach, or on a cruise ship, or went to Disney World or went skiing. You're going to remember those times. You're going to remember the times where you. Took your grandson fishing on your property with your own pond, or you went and chartered a fishing boat in the Gulf of Mexico, which is some of the best offshore fishing in the world, by the way. And so I would just encourage you to do everything you can to focus on your retirement. And let us help you protect and grow your hard earned and hard saved wealth. And mistake number five that you want to avoid to retire smarter is focusing only on the financial side of retirement.

Ford Stokes:
Retiring is only partly about money. You'll also need to find ways to fill the time you previously spent working, preferably in ways that improved your health and enrich your life. And let me ask you, do you have a smart vision for your retirement? I don't want you to close your eyes or anything while you're driving around. We want everybody to stay safe out there, but for many people. This is the most fun part of retirement planning. Ask yourself these questions. And really think about your answer seriously. What are you doing during retirement? Where will you live? During retirement. Who will you spend the most time with? In retirement. And how do you plan to fund your plans for retirement? If you don't start planning with a clear vision and a list of goals for your retirement, you could experience a lot of unknowns down the road. 37% of Americans feel they need more education on retirement planning. And 52% of Americans wish they had more education on how to invest. If you're unsure on how to best maximize your income in retirement. Feel free to give us a call at (770) 685-1777. Diana and Deborah standing by with her team to take your calls. Or you can visit our website at RetirementResults.com and click that schedule a consultation button in the upper right corner. Just get your own complimentary retirement consultation or for one review. Our listeners work directly with us and there's no obligation. And Sam, why don't you go ahead and give us the recap of the five retirement mistakes that people need to avoid to retire smarter?

Sam Davis:
Yeah, absolutely. So if you missed any part of today's show so far, you can check us out. Just search Retirement Results wherever you listen to podcasts. Or you can even go to RetirementResults.com and review this episode and listen to it and any of our other episodes as many times as you like. So to recap, these five mistakes to avoid when planning for retirement are number one not planning to retire at all. Number two failing to take full advantage of your retirement savings plans. Those are your 401 K's, your IRAs, your 457 plans like that. Mistake number three to avoid this was a big one. And we played a really interesting clip from the help committee. And that is mismanaging your Social Security benefits. And if you have any questions about Social Security, absolutely. Get in touch with us at retirement. Results.com. Mistake number four was making emotional investment decisions that could cost you money. And mistake number five is not having that smart vision for your retirement. So if you feel like you need help with any of those items that we just reviewed, we invite you to give us a call. Work with us. No obligation. You can call us today at (770) 685-1777. That's (770) 685-1777. Or visit us online at Retirement Results. Com where you can check out all our past episodes, get in touch with us and learn more.

Ford Stokes:
And we come back after the break. We're going to talk about how Americans love pensions and what you can do if your job doesn't offer one. And we're going to talk about a few retirement destinations that Americans want to travel to during retirement. And I think you're going to like hearing some of the top domestic and international vacation destinations for baby boomers. We'll be right back.

Don't wish it away. Don't look at it like it's. Ever.

Producer:
Between you.

Producer:
Schedule your free financial consultation now at RetirementResults.com or by calling toll free at (888) 814-0304.

Producer:
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Producer:
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Ford Stokes:
And welcome back result drivers to Retirement Results. I've got Sam Davis our senior financial advisor and co host here on the show with me. And I'm your chief financial advisor Ford Stokes. And we just shared that we were going to talk about how Americans love pensions and what you can do if your job does not offer one. Number one on this is inflation continues to ravage American savings, making them nostalgic. For a retirement income benefit of days gone by the pension. 90% of Americans saving in a company retirement plan, such as A41K. Worry it doesn't provide a reliable stream of income that can withstand the financial strains posed by inflation, which hit a 40 year high in 2022. 76%, up six percentage points from a year ago. Worry they'll run out of money in retirement. This is the number one fear of retirees and pre-retirees even a bigger fear than death. And number four here is 83% of people surveyed now want guaranteed lifetime income to be part of their retirement plan. That's remarkable. Now, we can really help you do that. All you've got to do is reach out to us at RetirementResults.com click that schedule a consultation button in the upper right corner. We have some incredible products that allow you to create your own personal pension. All you've got to do is reach out to us at RetirementResults.com. Sam, let's start talking about these incredible places that people want to travel to when they retire these top domestic and international vacation destinations for baby boomers.

Sam Davis:
Yeah. So taking a look at the US destinations first and then we'll get into the international destinations, but in no particular order, we got four for each one. But one of the top US destinations for senior travel is absolutely Florida. I spent a couple years living in Florida myself. Can't blame them. The weather is fantastic, especially this time of year when the rest of us are just desperate for spring and in the first hints of summer. But Florida is great, Lord, I know you've spent some time there as well. Lots of beaches, warm weather, good fishing, good golf as well.

Ford Stokes:
Couldn't believe there's 825 miles of beaches.

Sam Davis:
Yeah. It's amazing. It's a state that's, uh. It's not an island, but it's still mostly beaches around it.

Ford Stokes:
Yeah. It's amazing. And then also California. My wife and I love to visit California. I don't think we want to live there because the taxes. But there's nine national parks, 280 state parks, wine tours, coastal resorts, etc.. Um, yeah. Check out California to travel to. We do not recommend that you retire there because of the high taxes.

Sam Davis:
Yeah. Another item. Las Vegas, not too far from California. This is a great destination and almost any time of year because the weather is great. But the casinos, pools, lots of live events. You may have seen recently, the new live music venue and event venue, The Sphere. Just an incredible feat of architecture and engineering. Lots of great shows and Vegas. Great place to see a show. And of course what happens there stays there. Great place for seniors to visit.

Ford Stokes:
Yeah, what's interesting about Las Vegas is their version of weather is wind. It's how much wind they get is their weather. And then Texas. I've owned property in Texas. Love, Texas. There's warm weather, barbecue tours, historical sites such as the Alamo. Dallas is very similar to Atlanta. Um. It's just a really neat state. And also the there's federal taxes for state taxes in the state of Texas as well. Something to check out. Now. What are some of the international destinations?

Sam Davis:
Yeah, of course, of course. Our country has lots of great places to visit, lots to offer. But the international destinations you'll need to grab your passport. And I feel like some of the greatest memories are made on these big international trips, especially if you're able to make them with your family. And the first one is Mexico. Fantastic beaches, great food resorts, even some ancient ruins that you can see and some food tours. I mean, I love some Mexican food, especially on the beach.

Ford Stokes:
Yeah, no doubt about it. I we we went to Los Cabos not too long ago with the girls, um, last year and just had a blast. And, uh, the next one is, is France visiting Paris and the Eiffel Tower, the Louvre Museum and French countryside. We're going to spend a couple days in Paris, France, when we take our girls to Lisbon, Portugal, to go see Taylor Swift. I'm not necessarily a swiftie, but my girls are. And so we're giving them a once in a lifetime trip out there and to Lisbon, Portugal. And we're going to stop over and go see the Eiffel Tower and get the Instagram photos in front of the Eiffel Tower and try to get over to see the Louvre and see the Mona Lisa and all that stuff. Um, so we're looking forward to that. And France is not inexpensive, folks. I'll just tell you.

Sam Davis:
Yeah, that will be a fantastic trip for my wife and I are actually going to France later this year as well as part of the Summer Olympics. Never been to France. Looking forward to trying out some of that food, some of that cheese and that French bread. And, uh, coming back with lots of good memories.

Ford Stokes:
You and you and Bailey do a great job at doing once in a lifetime trips and going to Italy to go see the Ryder Cup last year was something else. And now you're going to the Olympics. I don't know how you do it by scheduling your trips around sporting events. Uh, most wives wouldn't do that. And I just want to congratulate you, sir.

Sam Davis:
Hey, I really do appreciate it. And, you know, we both think that it's really important to take those special family trips. Uh, my wife's father passed away when she was only 16 years old. And, you know, you got to live, you know, live life to the fullest. Live life like you're in retirement. Um, live life like you're on a vacation in retirement and really enjoy it and make those memories. Because like you mentioned earlier in the show, for those are the things you're going to remember.

Ford Stokes:
No doubt about it. And also, I'm just I'll just jump in and do Italy. Um. Italy is an incredible destination we love. We love Tuscany. And really, Florence is our favorite part of Italy. Uh, but we've been to Pompeii. It's pretty amazing to see what happened in Pompeii and the Amalfi Coast. Um, but the Italian coastline and the cuisine and and the beaches as well. It's just a remarkable place. And they're really nice, friendly people. And. Some really great wine there too. My wife loves getting some Chianti out of the Tuscan region of Italy for sure. And then the last one saying, what's that last destination that people are trying to grab their passport and go to?

Sam Davis:
Yeah. That last international destination for retirees is Ireland. And my dad was just in town here at Atlanta last weekend, and he was talking to me about how he wants to visit Ireland early on in his retirement. That's just a place he's always wanted to go see the castles, see the cliffs. So much green over there and world class golf as well. So if we make it over to Ireland, I think you got to tee it up while you're over there.

Ford Stokes:
Yeah. It's, um, it is actually fairly inexpensive. Um, there's a lot of people that will retire there too. Um, so it just. And by the way, incredibly friendly people. They're so nice, so wonderful. It's the final.

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

Ford Stokes:
So to recap today we mainly talked about the worst retirement mistakes, the top five mistakes you do not want to make in retirement so you can retire smarter. Number one was not planning to retire at all. Number two was failing to take full advantage of retirement savings plans such as 41S and IRAs. Number three was mismanaging your Social Security income benefits. Number four was making emotional investment decisions that cost you money over time. And number five was not having a smart vision for retirement. And we also played an important audio clip from. U.s. Senator Tommy Tuberville, Republican out of Alabama. In that Senate Committee hearing on health, education, labor and pensions, the Help committee. And it was an eye opener for me. And also, one big point I wanted to make is there was another expert on there that was talking about different pension options within four weeks, and that more and more people are opting for some type of fixed indexed annuity as a portion of their annuity, because they've made that available with secure act 1.0 and 2.0. And I would encourage you to do the same thing for your own retirement and do a bond replacement. Replace 20 to 40% of your portfolio that's invested in bonds to give you income and go ahead. And invest into fixed indexed annuities with us. And all you've got to do is reach out to us for your free 41K. Review and IRA consultation by calling us at (770) 685-1777 again (770) 685-1777, or you can just visit us at Retirement Results. Com or visit us at Active Wealth. Com. Okay, listen, you're seeking information about retirement or you wouldn't be listening to this show with everything. Knowledge is power. If you're going to be a bear, be a grizzly. Be aggressive about seeking information about your retirement, how to retire successfully, and are encouraged to reach out to us at RetirementResults.com. Next, we're going to be talking more about how to build that smart retirement plan right here on Retirement Results. Have a great week, everybody.

Producer:
Thanks for listening to Retirement Results. You deserve to work with an independent team of fiduciary advisors that will strategically work to protect and grow your hard earned assets. To schedule your free financial consultation, call Fort and his active wealth team at (770) 685-1777. Again, call (770) 685-1777 to reach Ford and his active wealth team. Investment advisory services offered through Brookstone Capital Management LLC. 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 exist, please refer to our firm brochure, the ADV Two-a, page four, for additional information.

Producer:
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Producer:
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 RetirementResults.com to schedule your no obligation consultation today. It's a $1,500 value provided at no cost to you. Book yours now at RetirementResults.com.

Producer:
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