2.3.23: Audio automatically transcribed by Sonix

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

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

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

Ford Stokes:
And welcome to the Active Wealth Show Activators. Welcome to this week’s edition of the Active Wealth Show. And this is a really important one. It’s good for you to always stay up to date on what’s going on with the legislation out there. And also, it’s good to stay up to date with what’s going on with Punxsutawney Phil. This past week, we had Groundhog Day. I’ll let Sam give you some history on Groundhog Day up there in Punxsutawney, Pennsylvania. But also the outcome, whether Punxsutawney Phil saw his shadow or not. But on this week’s show, we’re going to talk about important updates to secure Act 2.0. It’s really important for you to stay up to date on legislation, how it affects your retirement. And we’re going to go through in detail some pretty big changes that happened with that omnibus bill that got signed into law on December 29 by the presidents in the White House. He’s not somebody I am for being in the White House. Believe me, I, I voted for the other guy. But they did sign that into law. And and it’s good for you to know what’s going on there. And also, as part of our Smart Retirement Plan series, we’re going to talk about health and care during your retirement years. But again, we want to just give a shout out to all of our activators out there. Thanks for making us the number one Listen to radio show on AM 920.

Ford Stokes:
The Answer on the weekends. We sincerely appreciate you if you’re wondering who an activator is other than somebody listen to the show. It’s somebody who’s looking to build a sound and smart retirement. It’s also somebody who will take action. They understand that, you know, you don’t make a decision until you take an action. And a lot of those folks will actually pick up the phone and give us a call in the office at 770 685 1777 again 770 685 1777. And we look forward to helping you plan for your retirement. You want to most of our activators they want to a successful retirement they want to plan for a successful retirement. They want to prepare in advance. And our financial quote of the week is going to talk to that. I’ll just say this. You’re looking for a tax efficient fee efficient and market efficient portfolio. If you are, then I would encourage you to pick the phone up and give us a call at 770 685 1777 or just visit ActiveWealth.com that’s ActiveWealth.com. It’s spelled just like it sounds and we’ve got to schedule a consultation button in the upper right corner of our website and you can book directly into my calendar. You won’t get passed off to any other advisor you’ll get, you’ll get to talk directly with me your chief financial advisor and we’re happy to help you.

Ford Stokes:
We’ll give you a free financial plan to your 95th birthday at no cost to you. We’ll give you a portfolio analysis. You can understand the risk you’re taking, the fees you’re paying, and also the correlation of your assets. And then we’ll also give you a retirement income plan because chances are you may not have one and because also that accumulation phase is really one of the most important and most complex parts or phases of retirement for sure. So we’ll help you there. We’ll also give you a Social Security income maximization report. If you always wondered how can I really maximize the Social Security income benefit that I get, then we would just say, hey, let’s go ahead and and help you get set up there and then we will give you a financial plan, your 95th birthday with your recommended, with your current plan. And then we’ll also give you a financial plan for your 95th birthday with our recommended portfolios. That also includes a Roth ladder conversion plan. So you can kick the IRS out of being your partner in retirement with those retirement accounts. And Sam, I’m just thrilled you’re with us to go ahead and share with the folks a little bit of history about Groundhog Day and Punxsutawney Phil. And also, can you share what happened this week in Punxsutawney on February 2nd this year?

Producer:
Well, first off, welcome to the Weekend Activators. Happy you’re with us on yet another episode of the Active Wealth Show. And this past week, we flipped the calendar to February. Hard to believe that we’re already one month through 2023. And on Thursday morning, Punxsutawney Phil woke up. He saw his shadow, which short, short. The short story is that six more weeks of winter, folks. So you’re going to have to wait a little longer before you get out on the golf course. Play tennis. Get the pool ready for spring and summer. So it’s just going to be a little bit longer, unfortunately. Here we go. A little bit of history about Punxsutawney Phil and Groundhog Day. Punxsutawney Phil is the name given to a groundhog. It’s been different groundhogs over the history of the tradition residing in Punxsutawney, Pennsylvania. And he is the central figure in this celebration. On February 2nd of each year, the whole town holds a civic festival with music and food during the ceremony that is very early in the morning there, bundled up there in Pennsylvania for sure. This week he comes out of his home and the council determines if they see his shadow or not. What is amazing for it is that this tradition dates back to the late 1800s. And some say that tradition is actually even older than that. And I couldn’t believe that.

Ford Stokes:
That’s unbelievable. Yeah, It’s you know, obviously, Bill Murray did a great job in that movie. You and I were talking about it right before we started the show. And, you know, it’s probably a good, good movie to go out there and check out again. It’ll make you laugh. The Ned Ryerson character, the insurance agent, just cracks me up every time. And it’s great that Bill Murray learns how to play piano during that time and and all that stuff. So it’s a pretty good stuff. It’s hilarious. Well, six more weeks of winter. So for those of us in Atlanta, that means cold, wet, rainy weather is kind of what it means, I think. So let’s talk about what we’re going to talk about today. Let’s go ahead and detail it out. So, again, we’re going to give you the quote of the week here in a second. Sam’s going to do that for us. And we’re going to talk about our inflation demonstration with Super Bowl party items, which I think everybody can be interested in because Super Bowls in a week and then important updates from Secure Act 2.0. I think that’s really one of the most important things for this show.

Ford Stokes:
And we’ve also got a retirement cost cutter tip of the week. We have our new 23 retirement cost cutters for 2023. We’ve added one to our one from last year. So if you want to understand 23 ways to reduce your expenses during retirement or even pre-retirement, I would encourage you to go ahead and reach out to us. You can send me an email at Ford at ActiveWealth.com that’s Ford at ActiveWealth.com or you can just call us at 770 685 1777. We just need your name and email and we’ll send you the we’ll send you that report absolutely for free And it’s like 23 pages. It’s got some really great details in it. And we’re providing that to the activators. Absolutely at no cost. It’s just our little New Year’s gift for everybody. And I think you’ll like hearing about that. And then also, we’re going to talk about smart health and smart care during retirement as part of our Smart Retirement Plan series. So, Sam, go ahead and share this important financial wisdom quote of the week.

Producer:
And now for some financial wisdom, it’s time for the Quote of the week.

Producer:
This week’s Quote of the week comes to us from Warren Buffett. He’s a favorite of ours here on the Active Wealth Show. Warren Buffett, age 92, American business owner, investor, philanthropist, one of the most successful investors in the world with a net worth of over $110 billion as of January 2023. That puts him at number four on the wealthiest individuals in the world. And here’s the quote someone sitting in the shade today because someone planted a tree a long time ago.

Ford Stokes:
Yeah, it’s so true. So what we encourage everybody to do is to start planting trees now. And listen, you could be retired and still plant trees. You could get more for efficient, you can get more tax efficient with your portfolio. You could also get better market protection against market loss if you experienced a lot of market loss last year. If you haven’t talked to an adviser about an overall and overarching, complete total retirement plan and all you feel like is your advisors only sharing rates of return and how you performed in a good month. And he and he’s shy about sharing performance reports in a bad month then I would encourage you to pick up the phone and give us a call at 770 685 1777. You can also visit us at ActiveWealth.com and we’re happy to give you a free financial consultation at no cost to you. Kind of outline what that what that session looks like but it’s a $500 value that includes portfolio analysis, Social Security maximization report, a retirement income report and also financial plan for your 95th birthday with your current plan and also one with our recommended portfolios. And we’ll also give you a Roth ladder conversion plan as well, so you can delete the IRAs out of being your partner in retirement. And we ask you to are you willing to pay the IRS for ordinary income taxes just because you withdraw money from your IRA when you’re 80 years old? 20 years after you stopped working at age 60? Probably not. And if that’s the case, then I would encourage you to visit ActiveWealth.com and we’ll we’re happy to take care of you also. Sam, can you just share with them how do they listen to any of our episodes or watch any of our episodes here on the Active Wealth Show?

Producer:
Yeah, you can visit Active Wealth Showcase. Check out our videos, check out our podcast there, and you can find the podcast wherever you may listen to podcasts, whether that be Apple, Spotify, Amazon, wherever you can find podcasts, you can find the Active Wealth Show.

Ford Stokes:
It’s great to have Sam on here. It’s great to have Sam Davis being our executive producer. What’s interesting to is that Sam is the ambassador of the weekend here on the Active Wealth Show. He welcomes all the activators of the weekend. And you know, we all need that on you know, on a Saturday or Sunday morning. And it’s nice that you know, AM 920 The Answer was kind enough to give us two our one hour slots on the weekends because we were so successful thanks to our Activators and our regular listeners. We just really appreciate you. So when we come back from the break, we’re going to have our inflation demonstration, talk about the Super Bowl party items, and then we’re going to dive right into secure Act 2.0 was passed on and signed into law on December 29, 2022. And and how it affects your retirement. You’ll see the Active Wealth Show right here on AM 920. The Answer come right back to learn more about Secure Act 2.0 and how that can affect your retirement.

Producer:
Remember, all of Ford’s listeners receive a free financial consultation just for listening to the show. Visit ActiveWealth.com to learn more and schedule an appointment. Thanks for listening to the Active Wealth Show and subscribing wherever you listen to podcasts.

Ford Stokes:
Welcome back. Activators the Active Wealth Show in Fort Stokes, our chief financial advisor. I’m joined by Sam Davis, our executive producer. And Sam, can you share a little bit of wisdom and what’s going on with Super Bowl party items this year as part of our inflation demonstration?

Producer:
Want to know where your hard earned money is going. It’s time for an inflation demonstration.

Producer:
So on this week’s inflation demonstration, you got it forward. We’re looking at the Super Bowl party items. So inflation has driven up prices for food at home 11.8% over the past year. But some watch party food prices are easing thanks to improvements in the supply chain, according to a new report from Wells Fargo. So while we’re looking at about 12% food inflation over the last year, here are some items that will cost less this year. Starting with avocados, the MVP of guacamole, those will be much less expensive this year thanks to a strong crop. That’s always good to hear that the farmers are doing well. Wells Fargo notes that prices have dropped about 20% on avocados. Are you a guacamole guy?

Ford Stokes:
I am a guacamole guy. And I got I went to Costco, got some avocados for Dianna. The girls, they like to put avocados with salsa in it and and just kind of cut them up into chunks. And then I will go full on guacamole with tomato and and onion and pepper and stuff in it.

Producer:
With supply at its highest levels since the beginning of 2019, the price of chicken has dropped from about 338 a pound to 265 per pound. So chicken wings, a good bargain item for the Super Bowl this year, as well as hamburger prices, which have fallen since their peak last July. Bacon is going to be a little bit less as well. So you can have some bacon cheeseburgers during the big game and sirloin steak as well. So we’re seeing some kind of uniform drops with meat prices lately, which is a nice bit of good news. We haven’t been hearing that lately and avocados have come down, but it’s not all good news. Here are the items that are going to cost more this year. Beer is up 11%, wine is up 4%. Spirits are up 2%. The star of many Super Bowl commercials. Beer is going to cost you a little bit more this year. Another item that’s going to cost more this year, soda, 25% increase from last year. The price hike is unlikely to break the bank because of two litres. Only about 213, but it all adds up. We’re seeing a bit of an increase with soda as well as chips, which are up 22%. So beer, soda and chips are costing more. And that is your inflation demonstration.

Ford Stokes:
Yeah, that’s a good one. I it’s interesting also, obviously not many people eat a lot of eggs but what’s going on with the egg stuff? It’s crazy to me whether they think it’s feed. And then also one of the top egg producing facilities lost 100,000 hens from a fire. I just can’t think that’s coincidence and. So just hopefully things will stabilize in the egg market as well. Now, let’s give you guys and gals some an overview on the changes that affect retirees and pre retirees from the Secure Act 2.0. So Security 2.0 RMDs are required. Minimum distributions now begin at age 73 and. And they also will begin at age 75, starting in 2033. With the age of our RMDs increasing, we suggest letting your money grow. If you can afford to postpone withdrawing from these accounts for income needs. We also want to encourage you to consider implementing a Roth ladder. Conversion also gives you another year and by 2033 it’ll give you another two years to be able to implement a Roth ladder conversion. Remember also your Roth ladder conversion amounts do not equal and do not count as your required minimum distributions because the government wants their tax money. So if you’re doing it when if you do a conversion in your mid to late seventies, it exacerbates the tax problem because you have to over withdraw money from your account because you’ve got to take out the four to 5 to 6% depending on your age with with. So you’ve got to take all that money out for the RMDs it was four or five, 6%. And then you also have to you’re going to do your conversion.

Ford Stokes:
It usually 10 to 20% of what your assets are in a given year because you know, Roth order conversions when you’re taking money from your IRA and moving it to your Roth IRA and you’re having to pay taxes on the money, you’re moving in that in that actual tax year, you also only have up to one quarter to be able to pay the taxes. You can’t take the conversion at the beginning of the year and then pay the taxes all the way at the end without incurring interest penalties. So just letting you know there are. And starting in 2024, RMDs will no longer be required from employer based Roth retirement plans. Employers can now contribute matching contributions with after tax dollars. The penalty for failing to take an RMD. Decreased to 25% of the RMD amount. It was 50%. It was the highest penalty in the tax code and it decreases to 10% if corrected. You must file an amended tax return. And next is catch up. Contributions will increase in 2025, four for one, K for three B governmental plans and IRA account holders. This gives pre-retirees more room to catch up and save. Again, take advantage of your opportunities to catch up and save employer sponsored plans. Let’s say you’re still working and you’re within that retirement red zone, which is five years before retirement and five years after retirement. Let’s say you’re still working. Your current catch up limit is $7,500 a year for those who are 50 years old and over as of one one 2025, you can do 10,000 per year.

Ford Stokes:
For those who are 6263, this amount will be indexed to inflation. So we’ll automatically adjust yearly based on the consumer Pricing Index or CPI. And with IRAs, the current limit for those that are 50 years old and above on the catch up contributions 1000 a year, starting in 2024, the 1000 limit will be indexed to inflation. So it could increase annually based on the consumer Pricing Index or CPI. This next one is kind of interesting. With secure 2.0, you’ve got 529 college savings plans. After 15 years, assets in a 529 account can be rolled over into a Roth IRA for the beneficiaries subject to annual Roth IRA contribution limits lifetime limit of 35,000 total. So if you’ve got an old. 529 accounting. You haven’t known what to do with it and you were going to have to just give it to nieces and nephews or whatever, or grand nieces and grand nephews. Then I want to encourage you to go ahead and reach out to us. And we’re happy to help you. So all you got to do is reach out to us at ActiveWealth.com. You can click that schedule a consultation button. We’ll help you deal with those old 529 accounts and what you can do with that money. Obviously, I. That’s starting in 2024. The next change that came from the Secure Act 2.0 is qualified charitable distributions or CD’s Beginning in 2023, People who are age 70 and one half and older may elect as part of their QCD limit a one time gift up to $50,000 adjusted annually for inflation to a charitable remainder trust, a charitable remainder annuity trust or a charitable gift annuity.

Ford Stokes:
This is an expansion of the types of charities that can receive a QCD. If you have a passion for charity, a special cause, or your church, we can help you make a strategic donation in an effective way. That leaves a lasting legacy that also keeps that income coming into that charity on an ongoing long term basis. So. What I would encourage you to do. Don’t just give them 50 grand. Dima $50,000 annuity that will pay, you know, five grand a year around around that amount a year and continue to grow. I mean, you’ve got annuities that were purchased by Benjamin Franklin that still benefit the state of Pennsylvania and the state and Boston, Massachusetts. I mean, it’s remarkable how long annuities can last if you do it the right way. So if you’ve got a passion project. My in-laws are elders in their church and they also kind of help fund the start of their church and shout shout out to Rising Hills church up there in. Battleground, Canton, Georgia. And I just go, you know, great folks and. It would be fantastic if you know. You can give money to a church in the form of an annuity that’s going to pay over time versus giving them a one time check, and that’s going to give a more lasting impression. It’s also just a better, more efficient way to do it. And also, if they’re if they’re trying to invest that money, you’re protected away from market risk. So that’s a really good idea to do.

Producer:
Here’s the cost cutter of the week.

Producer:
Yeah, one last thing here before we take a break. The cost cutter tip of the week, try to complete your Roth conversion by age 63, if possible, because of Medicare’s two year lookback. Few people realize that financial changes made by age 63 can actually affect them when they turn 65 and start taking Medicare. The tax returns you file at age 63 will affect your Medicare premiums at 65.

Ford Stokes:
Yeah, we’ll talk more about that when we come back from the break. We’ve just gone over time here. Thanks for listening. Active Wealth Show . We’re talking about smart health and smart care decisions during retirement. You want to come back and hear the rest of this? You’re listening to Active Wealth Show right here on AM 920. The Answer

Charlie Kirk:
Charlie Kirk here. If you’re concerned about your investments, rising taxes from the Biden administration, then I encourage you to listen to the Active Wealth Show hosted by my good friend Ford Stokes right here on AM. 920. The Answer Listen to the Active Wealth Show Saturdays at noon and Sundays at 11:00 AM. The Active Wealth Show right here on AM 920 The Answer.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC BCM a registered investment advisor, not an actual client of active wealth management.

Producer:
Listen to the number one show on the weekends on AM 920. The Answer to Protect and Grow Your Hard Earned Money. The Active Wealth Show with Ford Stokes. You are Chief Financial Advisor Saturdays at 12 noon and Sundays at 11 a.m..

Producer:
Thanks for listening to the Active Wealth Show. If you like what you’re hearing, make sure to rate our show on Spotify or wherever you listen to podcasts.

Ford Stokes:
And welcome back, Activators, the Active Wealth Show on for Stokes for Chief Financial Advisor. And I’ve got Sam Davis, our executive producer here with us. Hey, Sam, can you go? We kind of hurry there towards the end of the break. Can you go ahead and reread the cost cutter tip of the week? Because it’s really important as we’re talking about making smart health care decisions in retirement.

Producer:
Yeah, we want people to be aware that you should try to complete your Roth conversion by age 63 if possible, because remember, Medicare has a two year lookback. So when you’re applying for Medicare at 65, they’re actually looking at your tax returns back to age 63. So Ford, I think this is great that at Active Wealth, you’re taking a look at the entire plan, not just people’s investments, not just their income, but also, you know, you want to save the money when it comes to their health care as well.

Ford Stokes:
Yeah, absolutely. Again, we’re trying to be more efficient for you because that’s more of a guarantee, right? I mean, if you get more efficient, you can have more money in your pocket, just like Benjamin Franklin said. You know, he said a penny saved as a penny earned. And also what we find is a lot of people are really good at generating income. They’re not really good at saving it. And a lot of folks will go up to what their level is of of income for their expenditures and and their lifestyle. But the problem is just like what Warren Buffett said along, you know, a long time ago. He talked about, you know, at some point somebody sitting under the shade of a tree that was planted by somebody else and and they were planted by somebody else a long time ago. And what we would encourage you to do is to have a plan going into retirement, making sure that you plan your work and work your plan a little bit with Medicare, that to your look back, really matters because you could be paying 1 to $300 more a month for Medicare based on how much money you make. I’m not saying you need to go retire early. I would rather you continue to work until you’re age 65 or even 67 and then enjoy your retirement during those go go years. That Tom Hagner, a buddy of mine who’s retirement guru and a former 22 year lieutenant colonel in the Army, he says You’ve got three phases of retirement. You’ve got go, go year, slow, go years and know go years.

Ford Stokes:
And obviously the go go years when you’re going to go travel all the time and you’re going to go see the world and have fun with your spouse or whatever you’re going to do, spend time with your family. The slow go year is like you’re going to get out a little bit and then the no go years is when you’re basically inside and trying to stay close to hospitals and all that kind of stuff. Retiring can be stressful for many people. It can be a stressful time, especially when it comes to planning for their health care needs. Medicare is an important part of the retirement planning process and is important to understand. Also, Fidelity came out with their retirement survey in April of last year, and I guess they’ll come up with a new one this April. And they determine for folks who are age 65 years old, a couple will spend $325,000 during their retirement on health care. That’s remarkable and jarring. And so you need to have a plan for Medicare. Also, whether you’re going to do Medicare Advantage or Medicare supplement, things like that, I would encourage you to reach out and give us a call. 770 685 1777. And also visit ActiveWealth.com. Next is we want to help you protect your health throughout you and your spouses retirements contact us with your Medicare Medicare questions at 770 685 1777 again 770 685 1777. Also some facts about Medicare. More than 61 million Americans are covered by Medicare health plans right now. National Committee to preserve Social Security and Medicare. That was their source in 2020.

Ford Stokes:
And then also the 18.5% of the US population is on Medicare. Holy cow. That’s according to single care. 65% of survey respondents said that they would not know which part or parts of Medicare they should enroll in, according to a 2022 Medicare survey by single care. So it is a really good idea to understand what you’re facing. So all you got to do is give us a call at 770 685 1777. We’ll help you. Almost four out of ten Medicare consumers are also enrolled in Medicare Advantage plans, according to the Kaiser Family Foundation. In 2021. We’re going to share how to lengthen your life and live a healthier retirement. I need to adhere to some of these so the healthier you are, the less reliant you will be on your health insurance. Keeping your mind and body sharp will also help with other issues that arise later in life. Exercise regularly. I like to play tennis. I like to play golf. I don’t like to run. I used to run cross country in high school and that cured me of running. And so I do need to get out and play tennis and play golf more often. Physical activity is important for maintaining both. Physical and mental health. Aim for at least 30 minutes of exercise per day. I’d like to do 20 pushups and 20 sit ups. I’m trying to get to 50 pushups and 50 sit ups a day and then eventually get to 101 hundred. But you want to do brisk walking, cycling, swimming or dancing. I know, Sam, You want to dance 30 minutes a day, don’t you?

Producer:
You know, it’s funny. My family back in Kansas, they there’s actually the Davis School of Dance, and I did dance classes growing up. But as I got a little bit older and my personality started to form, I was no longer interested in dancing. That’s right.

Ford Stokes:
I did dance. I went to a dance class when I was like in seventh and eighth grade. That was kind of required by the schools and or I thought they were required by the schools, but it probably just required by my mom. And my dad always had a funny thing. He said, Look, you need to be nice at these dances. And if you’re dancing with a fat girl with sweaty hands, just tell her, Look, you dance really well for a fat girl with sweaty hands. So I thought that was pretty, pretty funny. Also, you want to eat a healthy diet? That’s something I can continue to work on. My wife’s a dietician and a farmer rep, and so I need to continue to get better and drink less. Coca Cola’s. But I think if I drink less Coca Cola, Sam, the stock will go down and that’s that could be a problem.

Producer:
It could. And we don’t want your productivity to, to go down either.

Ford Stokes:
Yeah, not at all. I like having the caffeine, but eating a well balanced diet is essential for maintaining good health. Focus on fruits, vegetables, lean proteins and healthy fats. Avoid processed foods, sugary drinks and alcohol. They nailed me on the processed foods and sugary drinks. I’m doing a better job on the processed foods, but I need to and I’m doing slightly better on this sugar drinks and I’ve never have drank alcohol, so I’m fine there, but I do need to get better there. Hopefully you guys can identify the areas you’re going to get better in. But the healthy fats, a great example of that would be avocados.

Producer:
Absolutely.

Ford Stokes:
Really good, as we talked about earlier in the show. Yeah. Avocados, a great fat for you to ingest.

Producer:
Yeah. And they’re at a good price right now for a couple. A couple others. We’re looking at maintaining a healthy weight, which kind of goes hand in hand with eating a healthy diet. Obviously, obesity can lead to serious health issues. And we want you to live a long, happy, healthy retirement. This one, I think, is really important for stay socially active, socializing, socializing with friends and family can keep you mentally sharp and emotionally fulfilled. Join a club, volunteer in the community and participate in activities that you enjoy. We don’t want everybody just sitting at home. You got to get out and enjoy the retirement you worked hard for.

Ford Stokes:
I want to jump in on that. What we we overstep our bounds sometimes as advisors and I’m going to do it now. If you’re thinking about downsizing, you’re thinking about what you’re going to do. And I want to get to know mortgage. Good for you. That’s the right way to do it. Try not to go to a crime ridden area. Let’s be safe there, especially if kids and grandkids are going to visit you. Next is you may want to try to get on the water so the kids and grandkids can come visit you. Let’s try that or and or go to a 55 plus community where everybody it’s kind of a party. And also, remember, Saturdays are usually the the fun days right there, the days you’re going to go play golf. They’re the days you’re going to play tennis. There are days you’re going to go see friends and family. You go to parties on Saturday night. Guess what? During retirement, every day is Saturday. And so you need to fill that time socially. So try to make sure you’re your you’re filling that time and making it easy for you to be social. And one of the ways to do that is to move into a 55 plus community and enjoy all the activities that come with that.

Producer:
Yeah. Ford In just a couple more here before we head to break, stimulate your brain, keep your mind active and engaged to prevent cognitive decline. You can read books, solve puzzles, pick up a new skill or hobby forward. I say if you’ve got a cruise plan to Mexico, why not try and learn a little bit of Spanish when you’re getting excited for that trip to Mexico? So when you get there, maybe you can order en Espanol?

Ford Stokes:
Si No, my Spanish is pretty bad. I took four years in high school and never immersed, but I love it, You know, I love to blast espanol. You don’t know quite another to me. I love Pedro. You know, I do the best I can. So also make sure you get enough sleep. Try to get to seven and 8 hours per night. Also, all of you folks that like to wake up earlier and earlier and earlier and you think you get extra credit for it. We love you. We they’re also the people that get up earlier tend to be the best savers. So we love working with those folks. But I would encourage you to make sure you’re getting 7 to 8 hours and don’t just try to get up early, even if you’re only getting five or six because we care about you. We’re going to get a break. We’ve got a few more on how to lengthen your life and live a healthy retirement. We’re going to talk about smart care next right here on the Active Well show. Listen to AM 920 The Answer.

Producer:
Do you have a vision for what you want your retirement to look like? I’m Matt McClure with the Retirement.Radio Network. Powered by a life planning for retirement can be overwhelming. A survey from Gobankingrates shows that one third of Americans don’t think they know enough about retirement. And they’re probably right. So if you fall into that category, how do you know where to begin? Well, you’ve got to know where you want to go before you start planning how to get there. That’s where having a smart vision for your retirement comes in. Whether you want to be a jet setter during your retirement years. Want to take it easy in a quiet cabin in the woods or start a new adventure by opening your own business, you should set that goal and keep it in mind throughout your working years, retirement expert Dean Waguespack said during a recent TEDx talk.

Dean Waggenspack:
I want to challenge all of us to redefine retirement away from depart, remove withdrawal to a new definition, a blending of pay, passion and purpose.

Producer:
Still, retirement looks different for everyone. Sit down with your spouse and talk about your retirement goals. That will make it easier to determine how fiscally responsible you need to be now and how much income you’ll need to make it happen after you retire. That’s right, I said. Income. More and more retirees are finding that cash flow is more important than one big nest egg number.

Lee Baker:
That’s when you want to say, Hey, listen, I want to start thinking about all of this accumulation that I’ve done through these decades of working. How do I begin to think about turning what I’ve saved and what I’ve accumulated into paychecks after I retire?

Producer:
That’s Lee Baker, president of Apex Financial Services, speaking to CNBC. He says annuities are a great option for most retirees to generate an income you can never outlive. That’s especially important since life expectancy has grown over the years. So you’ll need to plan for a longer period of time than you may think. So do you have a smart vision for your retirement years? That’s a key question to consider as you start planning how to get there. With the Retirement.Radio Network powered by AmeriLife, I’m Matt McClure.

Producer:
We have Ford Stokes, author of two important personal finance books, Annuity 360 and Taxes are on Sale here on AM. 920 The Answer as the host of the Active Wealth Show Saturdays at 12 noon and Sundays at 11 a.m..

Ford Stokes:
And welcome back activators the active well show. So glad you’re with us. I’ve got Sam Davis on the board with us as our executive producer. And Sam, you’ve got a very special this date in history for us Atlantans, also somebody that was barely alive. I was alive when Hank was around. I remember him barely as his playing days, but obviously he’s been a legend for me my whole life.

Producer:
It’s this week in history.

Producer:
Yes. So this week in history, 1939, specifically February 5th, 1939, Baseball Hall of Famer Hank Aaron was born. Hammerin Hank Aaron played 23 seasons in Major League Baseball with the Milwaukee and the Atlanta Braves. He was inducted into the Baseball Hall of Fame and Cooperstown in 1982. And on July 20, 1976, Hank Aaron hit his 755th career home run, which at the time put him atop the all time home runs list.

Ford Stokes:
Yeah, it’s amazing. What’s interesting, I was telling you, Sam, at the break, the two guys that are running with him between second and third on his home run trot, those guys went to went to my high school, they went to Westminster High School. So I thought that was interesting. I don’t know their names, but I remember hearing that in the hallways of Westminster High School when I was going there. Now, let’s also finish up this thing about how to lengthen your life and live a healthy retirement. We talked about getting enough sleep. Make sure you’re getting 7 to 8 hours. Let’s do that. But also managing stress. Stress can take a toll on your physical and mental health practice stress management techniques such as deep breathing and meditation. Also, I want to share that the Wall Street Journal and Time magazine both came out with articles in the last decade that talked about people living longer who have annuities. Also Jane Austen in sense and sensibilities in in the 1800s talked about it in her in the second chapter of that book saying that people with annuities live forever. Also there’s incentive that they say that people are trying to live to the next paycheck of their annuity. So if you want to live longer, you ought to do a bond replacement and replace that with fixed indexed annuities and get your income that way and also delete your delete the any advisory fees or portfolio fees from your portfolio as well.

Ford Stokes:
Because with an annuity, there are no advisory or portfolio fees because the insurance company pays us. And if you want to get your options, you want to learn about I mean, we’ve got fixed indexed annuities that are paying out an immediate 20% bonus and significant interest rates that are that are like market like gains without market risk because annuities basically what they do is they is they invest into the ten year treasury of your money. And now the ten year US Treasury is paying out 3.5 3.6%, which is about to exit where it’s been most of my career. Most of my career has been right around 1.7, 1.8%. And what they do is they take the ten year US Treasury at the end of year one. They take the the growth of the interest. Let’s say you’ve got 100 grand and if it’s 3.6% that’s $3,600. They can then go buy options in the S&P 500 or the NASDAQ 100 or the Credit Suisse Raven Pack or the BNP Paribas Global Factor Index, which is another index we work with. There’s hundreds of indexes that are tied or linked to fixed indexed annuities. And we sift through all of those and all those products to bring you the ones that actually work the best for you. All you’ve got to do to get that annuity x ray and to rethink your retirement, all you’ve got to do is visit ActiveWealth.com and you can click that schedule a consultation button, the upper right corner.

Ford Stokes:
We’re happy to help you also with how to lengthen your life and live a healthier retirement. Stay up to date with medical checkups and screenings, regular checkups. Also the colonoscopies, folks, I mean, there’s a lot of colon cancer out there. Make sure you’re getting out there and getting checked on a regular basis and getting your colonoscopies for sure, because these screenings can help detect and prevent health problems before they arise. Also, mental health retirement can be a big transition. So it’s important to take care of your mental health, seek help if you’re overwhelmed or you’re experiencing depression or anxiety, it’s och, you’re going to be fine. And also you’ve got kids that love you, I promise, and and likely grandkids that really love you. I promise. And there’s a lot to be thankful for and a lot to be blessed about. So make sure you kind of minimize your stress there. Now, regarding smart care, it’s it’s estimated around 13 million Americans rely on long term care services, including 7 million retirees. Here’s another one. There are over 40 million unpaid care workers in the United States. Most of those are female spouses that are caring for their husbands.

Ford Stokes:
69% of all Americans will require some sort of long term. Here are assisted living during their retirement years. So that means 6.9 out of ten people as you’re driving around, heading Home Depot or or heading to Kroger or go into a kid’s athletic event or you’re going to see friends or you’re going to try to go hit some balls and get ready for the spring and summer in golf. I would encourage you to consider, are you one of those 6.9 out of ten people? If you think long term care insurance is expensive, wait till you find out how expensive long term care is. A lot of people are having to sell the family home and self insure and dwindle down their assets from the sale of the family home instead of passing that home on to their heirs. And if you don’t want that to happen and you want a better legacy than that, then I would encourage you to go ahead and visit ActiveWealth.com That’s ActiveWealth.com and click that schedule a consultation button. The upper right corner you’ll get booked directly into my calendar will help you figure out your long term care options. According to the National Alliance for Caregiving, in 2015, an estimated 34.2 million unpaid caregivers provided care to an adult or child. Now that’s up to over 40 million, and that’s a lot.

Ford Stokes:
Unpaid caregivers such as family members or friends who provide care for someone who is unable to care for themselves can be greatly affected by their caregiving responsibilities. Some of the ways that unpaid caregivers may be affected include physical strain, emotional strain, financial strain, social isolation and burnout. In order to avoid subjecting your family and friends to these potential stressors, you should work with them. And a financial advisor. We’d love to help you. All you got to do is to visit ActiveWealth.com to make sure you are prepared in the event you should require long term care in the future. Now here’s how to pay for long term care during retirement. There are some ways to handle costs, but the best way is to purchase long term care insurance. It used to be 150 long term care insurance providers. Right now there’s 12. There’s also ways to get long term care insurance without having to go through medical reviews. You could get a fixed indexed annuity and get a home health care doubler rider that’s attached to that annuity without any medicals at all. And if you’re interested in that, I would encourage you to go ahead and pick up the phone and give us a call at 770 685 1777 again 770 685 1777. Also want to make sure you understand Medicare does not cover long term care costs. It’s the final.

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

Ford Stokes:
Look, we’ve gone through a lot today. We’ve had a big show today. We’ve we’ve talked through Secure Act 2.0. We’ve talked about how the R&D age is moving over to 73. And by 23, 33, it’s going to go to 75. As people are getting older. We talked about different things you can do with your 529 accounts. You can move money that’s been in a 529 account for 15 years into a Roth IRA, which is a pretty good situation, up to 35,000. There’s a lot of changes with Secure Act 2.0. And if you’ve got questions for that, all you’ve got to do is pick up the phone and give us a call at 770 685 1777. Happy birthday, Hammerin Hank. We know you’re looking down on us, us, Atlantans, and we love you. And thanks for setting the tone, setting the record, not doing steroids and not doing performance enhancing drugs to accomplish your your record. And we’ve talked about smart health care. Get a plan for Medicare. Get a plan for health insurance before when you’re trying to get to Medicare. And we can help you do that. All you’ve got to do is reach out to us at 770 685 1777. And again, Punxsutawney Phil saw a shadow. Unfortunately, we’re going to have six more weeks winter.

Ford Stokes:
So that’s a bummer. And you need to do everything you can to plan for retirement. Listen, if you’re going to be a bear, be a grizzly. Seek out information regarding your retirement. You’ve got to get a plan to have smart risk, smart, safe and smart tax investments. You also need to have a smart health care plan and a smart care plan to take care of you, Reduce your stress, relieve your stress, get more than 7 hours of sleep at night, eat right, try to exercise. Also, the one thing that I’ll tell you that Al Roker says when he’s interviewing people on the Today Show, the one thing that all the people that in the Smuckers episode when when they in that segment of the show, the people that always say that the one thing they all did is they walked. So get out there and walk 30 minutes a day. But I hope you know that we care about you, Activators. I hope you know that we really appreciate you as activators. Also, you’ve you’ve been a long time. Listen to this show. Do me a favor. Just pick the phone up, give us a call, and we’d love to be able to help you with a free financial plan to your 95th birthday at no cost to you so you can make an informed financial decision about what your next steps are during retirement.

Ford Stokes:
Also, if last year’s stressed you out and you didn’t like last year and you’ve had a little bit of a run up over the last couple of months, then I would encourage you to give us a call at 770685177 and we’re happy to help you. Also, if you’re a do it yourself or investor and you’re the husband that’s been managing money for a long time and last year really stressed you out and you want some help to be able to help out your spouse when you’re gone. Again, visit ActiveWealth.com and click that schedule a consultation button will help you and also be sure to do it. Do us a favor. Be sure to reach out to us forward at active wealth to send me an email and we’ll get you those 23 retirement cost cutters report will get you that report absolutely for free at no cost to you. We just need your name and email and we’ll get that to you again. Visit ActiveWealth.com to learn more about how you can plan for successful retirement. Have a great week everybody.

Producer:
Thanks for listening to the Active Wealth Show . You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free consultation, call your Chief Financial Advisor forward Stokes at 770 685 1777 or visit ActiveWealth.com.

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

Producer:
Fixed annuities, including multi-year 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.

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