The Retirement Planning Playbook for 2024

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1.26.24: 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. I'm Ford Stokes, your chief financial advisor. I've got Sam Davis here with us who is our co-host. He's also a retirement income specialist buddy. In my opinion he's one of the greatest ambassadors of the weekend ever. So Sam say hello to everybody.

Sam Davis:
Welcome to the weekend results drivers. And welcome back to Retirement Results. Yes I'm Sam Davis here to help bring you with our host Ford Stokes. Lots of great information today about planning for retirement, properly managing your money. There's a lot of people out there for that are concerned about the 2024 election and how that may affect the economy as a whole. We're going to talk about that on today's episode.

Ford Stokes:
We're going to talk about three concerns that you might have about market volatility during the election cycle. We're also going to talk about what it's like to have a smart vision for your retirement. And I think you're going to really like that. And we're also going to discuss, hey, if you're 50 years old or older, um, we're going to share our three step guide to preparing for your retirement. Also, we're going to talk about how you can generate multiple income streams for retirement. So you can diversify your income sources during retirement as well. And we're going to ask the question and try to answer it as well. Are you overpaying for money management fees. That's advisory fees and portfolio fees. And give you a hint on how to delete up to 40 to 50% of the advisory and portfolio fees in your portfolio. This is an action packed show. Today. You're going to want to lean into the radio. You're going to want to lean in to your speaker when you're listening to us on the podcast at Retirement Results. Com and anywhere you can get podcasts including Stitcher, Spotify, iTunes, Google Play, etc.. But Sam, go ahead and let's share the financial wisdom. Quote of the week.

Producer:
And now wholesome financial wisdom. It's time for the quote of the week.

Sam Davis:
This week's quote of the week.

Sam Davis:
Comes to us from Thomas Edison. And boy, do we all enjoy his groundbreaking contributions to society. The light bulb, the motion picture camera, the phonograph. He was even at the forefront of audio technology. We may not have been able to speak to you like we are right now. If it wasn't for Thomas Edison, he had over a thousand patents, making him one of the most influential figures in the history of innovation. And Thomas Edison once said, good fortune is what happens when opportunity meets with planning.

Ford Stokes:
Amen. And I think nothing's more true than that for retirement as well. And that's what we try to provide results and advance planning for our pre-retirees and retirees, the people that call us when they call us at (888) 814-0304, that's (888) 814-0304 and book their financial consultation. They can also, um, if you only want to dial a just a few digits, you can dial pound 250. That's pound 250 and give the keyword Retirement Results. And you'll get pats directly into our office, our headquarters phone. Um, and again, our headquarters phone is (888) 814-0304. And Deborah and Diana and their team are standing by to take your calls. We're here to help you, uh, across the nine plus states that our show airs and plus all the podcasts and in all 50 US states and several foreign countries as well. We're really happy that John Fredericks and the John Fredericks Radio Network have given us this platform of giving us the opportunity to really branch out and be syndicated. It's really great to have the Retirement Results show be syndicated on the John Fredericks Radio Network. We are huge fans of John Fredericks, and also good luck out there on the campaign trail. But I want to go back to what Thomas Edison said. He did say good fortune is what happens happens when opportunity meets with planning. You really should plan your work and work your plan, but you also ought to plan your retirement and work your retirement.

Ford Stokes:
You want to make sure that you can inspect what you expect about your retirement. And if you haven't done that, if you don't understand what an expense ratio is and what the expense ratio is within your portfolio, if you don't understand what the risk level is in your portfolio that's measured by standard deviation, then I would encourage you to pick up the phone and give us a call if you don't know how much you're paying in advisory and portfolio fees and also expense ratio, which are the hidden fees that are within your portfolio that are only disclosed within prospectuses on mutual funds. As an example. Then I strongly urge you to give us a call at (888) 814-0304 or dial pound 250 and give the keyword Retirement Results. You really should understand in advance what you're dealing with so you can see your entire retirement in two pages, because we can give you year over year what your retirement looks like, how much you should have in assets each year. What's your effective tax rate each year? We do all of that for free. We give you a retirement income gap analysis. Should we show you what your retirement income is each year, based on your assets and your Social Security income, and any pensions you may have, or any personal pensions you might be able to generate with us.

Ford Stokes:
Also, we deliver a Roth ladder conversion for you. Thomas Edison said, hey, you really need to have a plan because that's where opportunity can meet. Planning here. So let's do this. Let's get a plan. It's a $1,500 value with our private wealth management firm, Active Wealth Management. All you've got to do is call us at (888) 814-0304. I'm going to tell you what you get. Number one is you get a portfolio analysis. You can understand the risk you're taking, the fees you're paying right now with your current portfolio. That has nothing to do with us. Number two is you're going to get a retirement income gap analysis absolutely at no cost to you. So you can understand if you're starting with a positive income surplus or a negative income gap. And we've got plans for either way for either situation. Number three is you're going to get a Social Security maximization report at no cost to you. Social security Sam is one of the top 1 or 2 sources of income for Americans. It started out as a retirement for low wage earners, and now it's become either number one or number two income source during retirement for retirees. And since you're our retirement income specialist, just your thoughts on that and how important it is to try to build that retirement income gap analysis. You can understand where you stand before you retire or early in retirement.

Sam Davis:
Yeah. Well, first off, we know how important Social Security is to everyone out there listening and the millions of Americans who have been paying into that system for years. So it's something that they're counting on, and rightfully so, because they've been paying their hard earned money as tax dollars into the system, you know, paying out the previous. Beneficiaries of Social Security. And when it comes to their retirement, they want to have that benefit for themselves. So a couple things there. First, they want to figure out how to maximize that benefit. And second, they want to know that it's going to be there because a lot of people who get in touch with us are concerned about the financial viability of Social Security. And Ford, you recently talked on the John Fredericks radio show about the Oasi Trust Fund. That Old Age and Survivors Insurance Trust fund is set to be depleted in 2033. That's not speculation. That's according to reports by the Social Security Administration and the Congressional Budget Office. These are serious sources. These are inside the walls in Washington, DC. They're telling you that there are going to be some changes that need to be made, but you need that income source in retirement. You're going to need likely a lot more than that. And we're going to talk later in today's show about why you want to diversify your income sources in retirement, not just your portfolio, but your income sources as well.

Ford Stokes:
Yeah, no doubt about it. And so I just everybody needs to get a plan. The way to get a plan is go ahead and give us a call at (888) 814-0304, or dial pound 250 and give that key word Retirement Results. And we come back from the break. We're going to talk about smart vision. But first I want to go ahead and dive into folks that are concerned about market volatility during the 2024 election cycle. Number one is you should consult with a licensed fiduciary financial advisor to properly allocate your dollars to protect and even grow your money during difficult market conditions. And election years aren't necessarily a difficult market condition, but you should consult with a fiduciary, especially if you've got concerns about what's going to happen with your portfolio during 2024. Number two is do not be tempted to make sudden or emotional decisions with your money. Converting to cash in your investment accounts could result in a melting ice cube situation, where your money will not keep pace with inflation and you lose buying power again. John Williams, the economist who's got 52 years of experience with shadowstats.com. He estimates that the real rate of inflation is right around 14.1%, based on how they used to measure inflation during the Nixon years.

Ford Stokes:
Now is not the time to put your hard earned and hard saved money under the mattress. You don't want to bury it in the backyard and coffee cans, and have to go out there and get a metal detector to just define your money. Number three is a licensed financial advisor can help you reduce the volatility in your portfolio with a tactical asset allocation strategy that rebalances and rotates into desirable sectors for your investments on a monthly basis. Don't just hang in there with your investments. Many of you lost a lot of money during 2008 2009. Some of you may have lost money in 2022. Did your broker just say, just hang in there, it'll come back. Without explaining what sequence of return risk was. We can we'll talk about smart vision for retirement. We come back after the break and we'll also define sequence of return risk right when we come back from the break. You're listening to Retirement Results on the John Fredericks radio network. Come right back. We'll be talking about your smart vision for retirement.

Producer:
You're listening to Retirement Results. To learn more and schedule your free retirement consultation, dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results. Nationwide's peak ten fixed indexed annuity is designed to help protect and grow your savings to generate income you can never outlive. Peak ten also has an optional rider that offers an immediate 20% bonus based on your principal. Apply to your income benefit base. Dial pound 250 and use the keyword Retirement Results to connect with a qualified advisor now. You're listening to Retirement Results. And now back to the show.

Ford Stokes:
And welcome back to Retirement Results. I'm George Stokes, your chief financial advisor and registered social security analyst and licensed financial advisor. And I've got Sam Davis, our retirement income specialist here with us and our co-host. So, Sam, we're talking about smart vision for retirement. But also we really want to talk to the folks that are 50 years old and older right now. So let me just share this. We've got a three step guide to helping you prepare for retirement. Number one is we'll help you find and examine your company's 41K plan. And you want to identify your account number. You want to understand what your vested balance is. Take note. You may not be fully vested in your account funds if your employer offers contribution matching. Plus, you should be aware that taxes are due on any distributions from tax deferred accounts like 401 KS, IRAs, 403 B's, 457 simple IRAs, and Sep IRAs for business owners. And also take advantage of your free 400 1KX ray today. All you've got to do is reach out to us by dialing pound 250 and giving us that key word Retirement Results. Just dial pound 250 and give the keyword Retirement Results. And you'll get put directly into our headquarters phone. And that phone number is (888) 814-0304. And we will do an entire 41KX ray for you to help you understand the expense ratio that you're being charged within your 401 K, and also help you better understand. How you could maximize and optimize your investments within the investment options that are available to you within your 401 K, because there are limited compared to what you can get with an IRA that we manage.

Ford Stokes:
Also, if you have any of those orphan 401 s out there, it's time for you to take advantage of your responsibility and your right to consolidate those into your own IRA so that you can manage it with a licensed fiduciary like us. Have a private wealth management firm, manage it for you, and help grow your assets a lot more than what the typical individual investor can do. Next is we're going to show you how your portfolio is really performing when compared to common benchmarks such as the S&P 500 and how it's projected to perform into the future. For your 4k, we'll also show you what percentage of your portfolio is in bonds. And there's an opportunity, with bonds having their worst three years over the last three years to better optimize your portfolio. And then also we'll show you how much you're paying in fees. Like we said, that's in the form of an expense ratio and also administrative fees. Here's a hint, folks. You want to minimize the mutual funds that are in your 41K. And you want to maximize the ETFs that are in your 41K. And you probably want to try to minimize at least get it down to that 20% level on the percentage of bonds you have. Many of you are in those target date funds, and I promise you, those things are not performing well over the last three years, especially as you age and you get closer to retirement.

Ford Stokes:
That means that more and more higher percentage of your portfolio is going to have to be put into bonds. And they have performed extremely poorly over the last three years. The 6040 portfolio, 60% stocks and 40% bonds. As part of the modern portfolio theory, the Harry Markowitz got credit for coming up with in 1952, which is now on the on the way to being a 72 year old investment strategy. It had its worst year in the last 41 years in 2022. As an example, we want you to give us a call if you need some assistance, confirming if your 41K plan has any special provisions around retirement withdrawals. You want to make sure that you're compliant with all of your plans rules to avoid any costly errors. And also you want to make sure that whenever you do a rollover, it's implemented as a rollover and not a withdrawal. And if you've got questions about all that, there's a lot of people have questions about their 401 K and they're not getting answers from their HR departments. I would just invite you to call us at (888) 814-0304. That's (888) 814-0304, or dial pound 250 and give the keyword Retirement Results to get put in touch with Diane and Deborah and our team in the office to make sure we can answer all your questions. And number two, as part of our three step guide to preparing for retirement, number one was examine your company's 41K plan documents.

Ford Stokes:
Number two is check your Social Security benefit projection. Create your free account at tsa.gov with the Social Security Administration. Contact us for a free Social Security maximization report. We run something called an RSA roadmap. I happen to be one of the few registered Social Security analysts in the United States. There's not a lot of us as an example, there's only 15 in the state of Georgia, and I'm happy to be one of those. Um, you got to do a lot of studying and take a, take a certified exam with a proctored all kinds of stuff. We want to do everything we can to help you maximize your Social Security income, because it's going to be one of the top decisions you can make in retirement regarding the income you're going to generate during retirement, having a sense of what you'll receive in Social Security income can help you figure out how much you'll need to have saved by the time you retire. For instance, if you find out that you'll receive $30,000 a year in Social Security income benefits and your expenses are $80,000 per year, you know that you need to come up with another $50,000 worth of income in order to cover your budget in retirement, and also you got to factor in taxes there, too. And by the way, there are taxes on your Social Security income benefit payment. And so you want to make sure you get that settled and you understand what that looks like in advance. Also, many of you may be surprised to know that your Medicare surcharge is actually removed and deleted and taken out from your Social Security income benefit check each month.

Ford Stokes:
Take note. Additional income streams can come from. Personal savings. Investment income. Part time work. Or even from personal pension products like fixed indexed annuities or even rental income. But we really recommend that people consider building their own personal pension, where they don't have to make sure that the air conditioning is working and their rental property. Also, knowing how much you'll receive from Social Security helps you make retirement income planning a bit more clear. The beauty of checking your Social Security early is you have more time to improve your Social Security income payout by earning more in the coming years. Also, remember, your greatest wealth generator is your personal income and working one more year before you retire. Also, please remember that. The definition of retire is to withdraw. And you may not want to have to withdraw from working. You may want to work another year or two and really fortify those retirement accounts. And now we've got the number three part of our three step guide to prepare for assignment. Number one was examine your foreign plan documents and really understand what's going on with your foreign K and the expense ratio within your 41K. Number two is check your Social Security income benefit projection and figure out how to maximize that Social Security income benefit for the future. Also, please keep in mind that the Congressional Budget Office just came out and said, guess what? The Oasi Trust Fund.

Ford Stokes:
The Old Age Survivors Insurance Trust Fund is going to be 100% depleted by 2033, which will mean a 23% cut across the board for all retirement income benefit recipients if Congress doesn't do something about it. So again, let me let me just recap before I get to number three. You want to examine your 41K plan documents. You also want to get an understanding of your expense ratio within your 41K. Like I said, the next thing you want to do is really try to optimize the investment options you have within your 41K and be very careful and cognizant and almost resistant to invest in target date funds because it's maximizing too much in your bonds. And then when we come back from the break, we're going to talk about more about number three. But number two was check your Social Security benefit projection. And then number three is have a smart vision for retirement. We're going to go in depth on how to build a smart vision for your retirement. You're going to allow me to hopefully overstep a few bounds here as a financial advisor, and try to be your friend and try to really help you build that smart vision for your retirement so you can spend more time with your family, enjoy your retirement more, and help you really build that successful retirement, not just in dollars and cents, but really enjoy that retirement lifestyle. You're listening to Retirement Results right here on the John Fredericks Radio Network. Come right back.

Producer:
While Washington's spending keeps growing, your retirement doesn't have to shrink, protect, and grow your hard earned money today by dialing pound 250 from your cell phone and using the keyword Retirement Results, that's pound 250. Keyword Retirement Results. Foreign. Stokes is a fiduciary, series 65 licensed financial advisor and president of Active Wealth Management, and he is now offering an exclusive product that can help retirees and those preparing for retirement. Nationwide's peak ten fixed indexed annuity can help protect and grow your savings to generate income you can never outlive. One of the attractive benefits of peak ten is its optional Bonus Income Plus rider, which includes a 20% bonus based on your principal applied to your income benefit base. Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal. With Nationwide Peak ten, you can add your spouse and generate joint income so you're both covered for life. To help manage inflation risk, peak ten has five index options designed to help provide higher returns than traditional fixed investments may offer. Choose one or allocate among them to further diversify your portfolio, Ford and his team are proud to offer an annuity from nationwide. Nationwide is a strong, stable mutual company with nearly 100 years of experience helping people prepare for and live in retirement.

Producer:
To learn more about Nationwide Peak ten, call Ford and his active wealth team. Dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within are subject to the claims paying ability of Nationwide life and annuity insurance company nationwide. Peek ten is issued by Nationwide Life and Annuity Insurance Company, Columbus, Ohio. Neither nationwide nor its entities are associated or affiliated with Active Wealth Management or Brookstone Capital Management, LLC. Indexed or fixed annuities are not designed for short terme investments and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company that may include higher surrender charges, longer surrender charge periods, or lower caps. 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 by dialing pound 250 from your cell phone and using the keyword Retirement Results. That's pound 250 key word Retirement Results.

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 Amara 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 Ted talk. I want to.

Dean Waguespack:
Challenge all of us to redefine retirement away from depart, remove withdrawal to a new definition a blending of pay, passion and purpose until.

Producer:
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:
The national debt is out of control. But your financial future doesn't have to be. Get on the path to a debt free retirement and schedule your free 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 to Retirement Results. I'm Ford Stokes, your chief financial advisor and registered social security analyst and licensed financial advisor. I've got Sam Davis here on the mic with us, our co-host and retirement income specialist, Sam. We're talking about. This three step guide to how to prepare for retirement. Number one was. Hey, you got to examine your 401K. You got to understand the expenses within your 41K. And you really need to talk to a licensed financial adviser to help you optimize the allocation within your 401 K based on the investment options that you have. And usually we charge about $350 to do that for people. But for all of our listeners to Retirement Results, we will do that absolutely at no cost to them. All you have to do is you're listening to the sound of my voice here. All they got to do, Sam, is call (888) 814-0304, or dial pound 250 and give the keyword Retirement Results. The second thing, Sam, was that we need to check for Social Security projection and understand how to maximize that Social Security income benefit, because that's going to be at least the number one or number two income source for most of our listeners during retirement. And we want to help them maximize that Social Security income benefit. And number three was have a smart vision for your retirement future and putting your vision down on paper or speaking with a financial advisor and your spouse is a great place to start.

Ford Stokes:
So I want you to ask yourself these key questions. I'm going to bring Sam in here after this. Number one is, and I don't want you to close your eyes or anything while you're driving. I want you to be safe, but I want you to ask, who will I spend my time with in retirement? Is it my spouse, family, grandkids, friends? Am I going to volunteer church? Things like that. The number two question is what do I want to do in retirement? I want to travel, enjoy hobbies. I want to start a business. I want to volunteer, start a charity. I want to be a dog walker, whatever that is. That's number two. Number three is where do I want to live during retirement? Do you want to stay in the family home? Do I want to downsize and then hopefully take some of that additional dollars and invest that so I can get an even higher income? And by the way, one of the hints that Sam and I give all the time is if you're taking money out of a concrete investment, like real estate. That may or may not be giving you income, but it's something you don't want to lose.

Ford Stokes:
Principle. Right? Because you're always passionate about holding on to that equity in your home, right? You really should put that money into something safe that also generates income. And the best way to do that is build your own personal pension. And Sam and I can help you do that. All you've got to do is call us at (888) 814-0304. I'll pull Sam in here in a second and he can talk more about that. But also number four is when do I want to retire? And I want to introduce you a concept called the retirement red zone. The retirement red zone is the five years before retirement and the five years after retirement. And what we want to do in those first five years before we retire, we want to make sure that we're not. Dipping into our 4k or dipping into our IRAs, we want to also up our savings rate to at least 10%. We'd like to get to 15 to 20% of our income, and we'd also like to start considering ways to get contributions or conversions into a Roth IRA, so we can get more tax efficient with our investment. So we don't have all of our eggs in one eventual IRA basket, where the IRS is our partner of retirement. And Sam and I are here to help you delete the IRS from being your partner of retirement.

Ford Stokes:
And then finally, which is number five here. How am I going to fund my vision for retirement? Most people to start out with. Okay, Ford, I got this much money. How much money can I get? And they really don't start out with. Okay, wait a second. Oh, who am I going to be with in retirement? What am I going to do in retirement? Where are we going to live? You really do need to have a plan for that. And let me recap this list. And and Sam, I want you to give us your thoughts, especially on the income side. Number one is for your vision for retirement. The key questions we want you to ask yourself is who will I spend my retirement with in retirement? What do I want to do during retirement? Number three is where do I want to live? In retirement. Number four is when do I want to retire? And number five is how am I going to fund my vision for retirement? Sam, your thoughts on. Like downsizing, what people should do with some of that additional equity and also a portion of their assets. That's that new 6040 portfolio that we recommend 60% stocks. And then what's the other 40% for?

Sam Davis:
Yeah, absolutely. Just first a quick bit on smart vision. You know, everyone we talk to who gives us a call off the show or visits our website Retirement Results. Com and gives us a call. We start with figuring out what their specific goals are and what that smart vision is. Because Ford some people want to travel, some people want to relocate, get down to Florida or somewhere with some tax benefits. Some people want to stay put right where they're at. They say, hey, Sam, I'm not leaving. I've lived here 50, 60 years. This is where I'm going to retire. And that's great. And once you figure out that vision, then you get that budget in place, the income plan starts to come together. And, you know, the 60 over 40, the old way of thinking was 60% stocks, 40% bonds. We've seen with inflation and interest rates over the last few years, what's happened that people have just been getting devastated in the bond portion of their portfolio, and what a lot of our clients have opted to do is exchange that bond portion of their portfolio, that 40%, if you will, that extra equity in their home and turn that into a personal pension. So now it's generating an income stream.

Sam Davis:
It's also linked to market like gains without being at risk in the stock market. So they feel good about their money being protected. They feel good that there's a 100% reserve requirement versus their money being at risk, invested in the stock market or being in a bank CD. And we all know what's happened with banks over the last couple of years. They've had their issues as well. So why not turn that into a personal pension? Why not turn that into an income stream? And we're going to get to here later in the show. It's all about diversity of income streams. You got to have that Social Security. You can count on that pension from work, that personal pension if you don't have one at work, or if you're just looking for a little bit of extra cash flow, and then also those systematic withdrawals that make sense, those smart risk investments, once you reach age 73, you're going to have required minimum distributions. And so you want to have all of these different streams of income. So you're not just meeting your budget, you're exceeding your budget. And you're able to continue that lifestyle and even improve it on into retirement. Yeah.

Ford Stokes:
We want to make sure that you enjoy your retirement. I'll also give you I mean, first of all, I totally agree with with you, Sam, I think people need to have a better new, improved 60 over 40 portfolio. Um, also the rule of 100 states that basically if you if you take 100, subtract your age. So let's say you're 70 years old, only 30% of your. Assets should be at risk in the market. And that probably gives a lot of people a lot of pause, because they're generally in that 80, 20, 80% stocks, 20% bonds, or they're in 60% stocks and 40% bonds, and they've seen some significant erosion. Also, they haven't seen where they've come back. Really? Well, that's kind of that sequence of return risk that we said we were going to talk about. So the sequence of return risk was this. In 2008 and 2009. For March oh eight to March oh nine, the S&P 500 lost 50.1% of its value. So if you had $1 million in the S&P 500 and Spy, you were looking at a $500,000 portfolio that used to be $1 million a year before.

Ford Stokes:
And it took six years to come back to $1 million. Six. And for many people, that's well over a fifth or a fourth of their entire retirement. And let me ask you, can you go that long, that long of a that high of a percentage of your retirement without getting income, without getting interest growth on your money? Chances are no. So that sequence of return risk, basically, if you lose money on the front end, it takes twice as much money, twice as much growth to come back to return you from your previous levels. So that's really what sequence of return risk is. We come back from the break we're going to talk about. Why you might want to have multiple income streams in retirement, and how we can help you do that. You listen to Retirement Results right here on the John Fredericks Radio Network. Dial pound 250 and give that keyword Retirement Results to reach us right here in the office. And we right back with how you can generate multiple income streams in retirement.

Producer:
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Ford Stokes:
And welcome back results. Drivers to Retirement Results on Ford stocks or chief financial advisor and registered social security analyst and licensed financial advisor. I've got Sam Davis here with us, our co-host and retirement income specialist, and we're here for segment four. And this is gonna be a really important one, too. You might want to consider having multiple income streams in retirement. There are a few different ways that retirees can generate income that they need to live on in retirement. And some of the most common are social security pensions, personal pensions generated and built by fixed indexed annuities, or a series of them withdrawals and distributions from retirement accounts like IRAs, 400 and 403, B's four, 57 and Sep IRAs, and then income from investments, dividend paying stocks, brokerage CDs, real estate, etc. part time work, and also rental income. We know it's important to diversify your investments, but why is it important to diversify your income streams? Well, Sam, let's kind of go through these. Number one I've got is diversification of income sources. Relying on a single income source in retirement can be really risky. Having multiple streams of income provides a safety net in case one source diminishes or faces challenges. And that can be all kinds of things. You could have your overall portfolio lose a lot of. Money in retirement. Lose a lot of value and therefore your 4% withdrawal rate would be lower. We've already told you about Social Security. Facing some challenges. There could be a 23% cut across the Board of Social Security income between now and 2033, actually in 2033, according to the Congressional Budget Office, saying, what's the number two? Reasons why it's important to diversify a retiree's income streams.

Sam Davis:
Yeah, that first one's a great point. You don't want to have all your eggs in one basket with your portfolio, and you don't want to have all your eggs in one basket with your income sources in retirement. But point number two is simply long terme sustainability when it comes to retirement forward. We are doing plans with people for the long haul. We start by doing plans out to their 95th birthday. A lot of people will tell us, I don't expect to live to be 95, but, you know, hey, we're all living longer. We've talked about recent statistics from the CDC. We need your income sources to last for life. So that's why when we put people in these personal pension products like fixed indexed annuities, we make sure it is guaranteed lifetime income for them and their spouse if that's something that they want to do as well. And, you know, Social Security, you just mentioned it's a lifelong benefit, but you don't know what you can count on. You're looking at maybe a 23% cut if they don't patch things up by 2033. So having diversified income streams will help make sure that you can get to and through retirement, no matter how long it lasts.

Ford Stokes:
No doubt. And then number three, on why it's important to diversify your income streams during retirement is risk mitigation. Various income sources may have different risk profiles. Combining low risk and higher risk streams helps mitigate overall financial risk. We really don't want to have anybody exposed to default risk where you know you won't get paid your money back. So that's why we work with A-rated carriers on the insurance and annuity side. That's why we work with A-rated banks. But I would encourage you to go ahead and reach out to us at (888) 814-0304 to go ahead and get an understanding of what a structured note could do for you, and specifically a structured note ladder, where we ladder five different structured notes with five different issuing banks over a consecutive five months to reduce your risk and again, do more diversification of your risk and also give you the income that you need, and also get you a disproportionate interest rate or coupon rate than what you're typically seeing out there, especially when you're including bank CDs. Obviously, a structured note is security. It involves risk. It is not anywhere close to the same as a bank CD, but they are issued by banks, and there are opportunities for you to get a much higher even two x of the rate that you're seeing from bank CDs now. And if you're interested in that type of return, I would encourage you to go ahead and pick up the phone and give us a call at (888) 814-0304. And Sam, why don't you go ahead and give us the next reason why people should diversify their income stream?

Sam Davis:
The next thing is adapting to changing circumstances. So obviously life circumstances can change. A lot of retirements last 20, 30 years, maybe even longer. So having multiple income streams will allow you to adapt to any changes in health status. Family economic conditions are always subject to change, and you want to have that flexibility in your income sources as well.

Ford Stokes:
Yeah, no doubt. And the next one is opportunity for growth. Some income streams have the potential for growth. This growth can help retirees maintain or even increase their standard of living over time.

Sam Davis:
Also, legacy planning diverse income streams can contribute to building wealth that can be passed on as a legacy to heirs or charitable causes. A lot of people say, hey, I want to have some money set aside for my kids or my grandkids when I pass away. And so having diverse income streams is great for legacy planning as well.

Ford Stokes:
And then the last one is enhanced quality of life and peace of mind. Knowing there are multiple sources of income provides retirees with peace of mind, reducing financial stress and allowing them to focus on enjoying their retirement years. I'd encourage you to visit RetirementResults.com or give us a call at (888) 814-0304, or dial pound 250 and give the keyword Retirement Results so you can go ahead and talk directly to Diane and Deborah and our team so you can get booked directly into our calendar. It's the final.

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

Ford Stokes:
This is a really important show and I and if you want to listen to the show in depth or go back and listen to the show or you caught it halfway through, I'd encourage you to visit. Retirement Results. Here's all the things we talked about on today's show. Sam gave us a great quote from Thomas A Edison good fortune is what happens when opportunity meets with planning. You got to do everything you can to make sure you can work your plan and plan for your retirement. All you got to do is pick up the phone and give us a call at (888) 814-0304. Also, we gave reasons on why you should consider having multiple income streams during retirement. We talked about a new 60 over 40 portfolio where you've got 60% stocks and 40% personal pension built by fixed indexed annuities. And we've got a fixed indexed annuity that's generating 20% immediate bonus and 8% interest roll up each year that you defer withdrawals. That's guaranteed. And then also a 350% participation rate in the underlying index. So I would encourage you to give us a call at (888) 814-0304 if you want to build your own personal pension, but also if you want to implement a smart risk portion or portfolio with tactical asset allocation. We talked about that today versus strategic allocation. We'll talk more in depth about that next week.

Ford Stokes:
But this is what private wealth management looks like. Folks we can give you a full diversified portfolio that fits your needs, that reduces your fees, reduces your risk overall risk, and also gets you the income that you need during retirement and hopefully get a little bit more tax efficient as well. Congratulate President Trump on his victory in New Hampshire and the New Hampshire primary. It was a double digit win. The Rasmussen poll indicated that 70% of Nikki Haley's support actually came from traditional Democrat voters, who had changed over to go to the Republican side in many respects, to try to vote for the candidates being supported by so many Democratic donors now so they don't have to face President Trump in the in the presidential election. And I just want to say good luck to you, President Trump. We're we're pulling for you. And remember, everybody, please vote with your retirement in mind because it's going to matter. Next week. We're going to talk more about how to build a smart retirement plan for your own retirement right here on Retirement Results, because we're here to generate results for your own retirement. And you've been listening to the John Fredericks Radio Network, and we really appreciate the opportunity to be on the John Fredericks Radio Network. 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, dial pound 250 on your cell phone now and use the keyword Retirement Results to connect with a qualified advisor. That's pound 250 key word Retirement Results to learn more about our mission and our team, visit RetirementResults.com.

Producer:
Investment Advisory Services offered through Brookstone Capital Management, LLC, BCM, a registered investment Advisor, BCM Inactive 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. Fort Stokes is a fiduciary, series 65 licensed financial advisor and president of Active Wealth Management, and he is now offering an exclusive product that can help retirees and those preparing for retirement. Nationwide's peak ten fixed indexed annuity can help protect and grow your savings to generate income you can never outlive. One of the attractive benefits of peak ten is its optional bonus Income Plus rider, which includes a 20% bonus based on your principal applied to your income benefit base.

Producer:
Plus, this rider provides an 8% simple interest roll up for the first ten years or until the first withdrawal with nationwide peak ten. You can add your spouse and generate joint income, so you're both covered for life. To help manage inflation risk, peak ten has five index options designed to help provide higher returns than traditional fixed investments may offer. Choose one or allocate among them to further diversify your portfolio, Ford and his team are proud to offer an annuity from nationwide. Nationwide is a strong, stable mutual company with nearly 100 years of experience helping people prepare for and live in retirement. To learn more about Nationwide Peak ten, call Fort and his active wealth team, dial pound 250 from your cell phone and use the keyword Retirement Results. That's pound 250. Key word Retirement Results investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peek ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio. Neither nationwide nor its entities are associated or affiliated with Active Wealth Management or Brookstone Capital Management, LLC. Indexed or fixed annuities are not designed for short Tum investments and may be subject to caps, restrictions, fees, and surrender charges as described in the annuity contract. Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company that may include higher surrender charges, longer surrender charge periods, or lower caps.

Producer:
Structured notes involve risks not associated with an investment in ordinary debt securities. The securities are not bank deposits and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of or guaranteed by a bank. The securities will not be listed on any securities exchange and the secondary trading may be limited. Therefore, there may be little or no secondary market for the securities. Accordingly, you should be willing to hold your securities to maturity. The securities are subject to the credit risk of the issuing bank, and any actual or anticipated changes to its credit rating or credit spreads may adversely affect the market value of the securities.

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