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1.27.23: 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 Your American Retirement with your host, Randy Sams. Get set for a full hour of financial information and economic news affecting your bottom line. Randy works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you too. So now let's start the show. Here is your host, Randy Sams.

Randy Sams:
Hey, good afternoon, everyone. I'd like to welcome you to today's show. You're listening to 101.1 FM. My name is Randy Sams. You're on Your American Retirement again 101.1 FM. The Answer. Where Little Rock comes to talk. Hey, I want to thank you guys for joining the show today. Very excited about what we have to talk about. What? I've been meeting with several clients here the beginning of the year. They're really upset about what happened over the last couple of years. You know, 401k balances, IRA balances, retirement fund balances. So we're going to take a focus on today's show and we're going to try to give you the secret formula to a happy retirement. So today's show, write this down, the secret formula to a happy retirement. Again, my name is Randy Sams. I am the CEO and president of SMMG Financial. Folks just want you to understand what we do at SMMG. We like to meet with our clients. We want to educate folks. We want to get you set up for a secure and a risk free retirement. But folks, we want to thank you for listening to the show. We want to thank you for calling in again to the number 866 990 7664 is the toll free number 866 990 7664 or direct number is 5012492343. Again 5012492343. We'd love to talk to you. Leave us your information, Leave us a message. Give us some ideas on what you'd like for us to talk about. Go to the website YourAmericanRetirement.com. Again, leave us the same information. How we can get in contact with you.

Randy Sams:
We'd love to have a chat with you. Kind of talk about what maybe some of your concerns are. But folks, we also are own we have a podcast, so hopefully you guys are not only listening to the show today on Saturday, but you also join us on the podcast. You can get that podcast on YouTube, Spotify, wherever you enjoy listening to your podcast. But we want to thank you folks for giving us that Thumbs up. Subscribe to the podcast. Let your friends and neighbors send it to them. Let them know that, Hey, you know, we're in this business to educate. Yeah, you know, we have to we have to make money just like everybody else does. But you know what I tell folks when they when they ask me, you know, Randy, what is it that you guys do? I tell them, hopefully it takes off some of the pressure from you guys. What I what I what my focus is, is to educate. And I feel like that if I can help you as the client or as the soon to be retired person or you are in retirement right now, if I can help you understand and navigate retirement what your options are, because, folks, there's a lot of options. There's a lot of risk whenever we're going into retirement that you need to understand. If I can help you understand, if I can help you navigate and we can put a plan together that is based on your objectives. All right. We're going to look at what assets you have.

Randy Sams:
Well, I'm going to listen to what your plans are. And then we're going to put together a retirement plan, not just me. It's not a cookie-cutter plan. This was not a one plan fits all. I'm going to listen to what your objectives are, and we're going to put together a plan based on what you want to see for yourself or for yourself and your spouse. All right. So again, people ask, Hey, Randy. What is it exactly that you do at SM and G? Folks write these down. We want to remove these two away or out of your retirement plan. Number one is stress. Number two is rocking chairs, stress. Why stress? Stress is the number one killer of retirees. It causes heart attacks. It causes cancer. It causes all kinds of problems. People are stressed out. Listen. You've heard my story before. But we look at people and I say, You know what, You've worked all your life. Let's just say the gentleman's name is Joe or let's talk to Sally. All right. Let's say Joe and Sally are married. Joe and Sally, you've worked all your life. You have these visions Of doing what? Enjoying retirement. You want to be able to go see the world, you want to take those cruises, you want to rent that RV and travel around the United States and see the different national parks that we have available. See the scenery. There are people that I know they've never seen the ocean. They've never seen the Grand Canyon. They've never been to Alaska.

Randy Sams:
They've ever been to Hawaii. So what are your plans? All right. So, folks, you're working all your life 25, 30, 40 years to accumulate a retirement fund. And when you hit retirement, the last thing you want to be is stressed out because you're worried about spending too much money. You're worried about what happens to the stock market in my retirement funds are in the stock market and I just lost 20, 25, 30, 35% of my 401. K balance where my IRA balance. All right. You are worried about spending too much money. You're worried about running out of money. Worry, worry, worry. You've heard that? Yeah, worry. You're a worry wart. That's what some people have have referred to themselves as. They are worried. They're concerned because, folks, here's what happens. A lot of people are concerned about your retirement account hitting zero before your blood pressure does. To get that. You don't want your retirement account to hit zero. Before your blood pressure does you want it the other way around? All right. So we want to remove the stress. How do we remove stress? One thing is we're going to focus on what risk you're looking at. And we're going to dive into that here a little bit deeper in the show. But number two, rocking chairs. People say, well, Randy, why do you want to remove rocking chairs? Because, folks, you know what happens when you get in a rocking chair? All you do is move back and forth, Right? That's all you do with a lot of people there.

Randy Sams:
They're concerned. Again, go back to point number one stress. They're concerned about spending too much money. They're concerned about running out of money. So they don't want to do anything. All right. So they just sit on the front porch and they rock back and forth until they can't get any, you know, what to do. Sometimes they don't have enough motion. They don't have enough power to start that rocking chair going back and forth. But folks, listen to this. Rocking chairs. We want to take those away because there are three. Areas in your retirement, three phases of retirement. Number one is go, go years. We want to set you up for your go go years. What are go, go years, go, go years. Or when you just retire. And every day is Saturday. Think about it. What do you do on Saturdays, man? We do everything all right? We go play golf. We go play tennis. We go see the kids. We go see the grandkids. We travel around. So every day should be Saturday. When you're in retirement, those are your go-go years. That's when you want to make sure. I don't know. Is it going to be from 62 to 72? Is it going to be 65 to 75? 65 to 80? That's what we want to put together a plan for you guys. You tell us what you want. You tell us what your objectives are during your go go years. All right. The second phase, slow go years. You know what? Your slow goes years. Are you still.

Producer:
Want to go.

Randy Sams:
But you're just a little bit slower. All right. You may not drive 95 miles an hour anymore. You may be the one that's in the left hand lane driving 45. When everybody goes by you, they give you that howdy sign, not five fingers, if you know what I'm talking about. All right. But your slow go years, you're still going to go. You're still going to go do stuff. You still want to do stuff, but you just don't do it as often and as much as you used to when you get out of the go go phase and you go into the slow go years, but you still need to have a plan put together. So we've enjoyed our go go years now we're transitioning into our slow go years, but we still want to be able to have enough funds we don't want to have to worry about. Again, I don't want to put you in a position that you have to worry about your retirement fund going to zero or hitting zero before your blood pressure does. The last phase in retirement. Get rid of these rocking chairs is the no go. Years. All right. Now, if you're sitting in a rocking chair in the no go years, it's because you've chosen to sit in that rocking chair. You're drinking iced tea or whatever soda pop flavor you you love and you're sitting there, you're waving at the neighbors because you've had a happy and a secure retirement. But the no go years are when you're probably a little bit too old and probably, you know, a little bit too feeble. Maybe your health is not where it was when you retired 25, 30 years ago. So those no go years are just where I'm not going to go anywhere until somebody has to come out and take me out, if you know what I mean.

Randy Sams:
There might be six people taking you out. So rocking chairs. We want to eliminate rocking chairs. We want to look at your go go years, your slow go years and your no go years and set you up. So that's what we do at SMMG. So I'm going to meet with you folks. Listen to these questions I'm going to ask you. These are some of the questions. You can write these down or you can call me at 866 990 7664 or go to the website YourAmericanRetirement.com and I can send you this information but these are some of the questions I'm going to ask you. So on a scale of. One, two, ten, ten being perfect, one being imperfect. How would you rate your current advisor? Are you happy with your current advisor? Are you happy that your account went down by 2025 30% in 2020 to about 2021? What's it looking like in 2023? On a scale of ten. Ten being perfect, one being imperfect. How would you rate your retirement readiness? Mhm. What is your biggest problem? So as you prepare for retirement, are you more inclined to take a sure thing? Or maybe so. Folks, remember, this risk is for people who are trying to get where you already are. All you have to do from this point on is not lose. All right. Let's take that risk of losing away. So, folks, Hey. I want you to stay tuned. I want you to come back after this message, because guess what? We're going to run right into the secret formula. To a happy and secure retirement. Again, my name is Randy Sams. You're listening to Your American Retirement on 101.1 FM. The Answer Thank you.

Producer:
Miss. Part of today's show? Your American Retirement is available wherever you listen to podcasts and online at YourAmericanRetirement.com .

Producer:
Are you anxious about retirement, concern that you could outlive your money? Randy Sams is a Little Rock native who has nearly four decades of experience helping hundreds of Arkansans retire with confidence. If you want to get the most out of what you've worked so hard for, or if you're interested in learning how to maximize your Social Security, call Randy today at 501 249 2343. Or visit YourAmericanRetirement.com . Visit YourAmericanRetirement.com to schedule a free consultation with Randy today. And now back to the show.

Randy Sams:
Hey, welcome back, everybody. My name is Randy Sams. I am your host for Your American Retirement on 101.1 FM. The Answer we're Little Rock comes to talk. Hey, folks, I appreciate you joining in. If you listen to the first segment and you're coming back and you've got your pen and pencil and you're ready to write down the new formula, what is that formula? It's a secret formula. Secret formula to a happy and a secure retirement. We're about to jump right in there, so get your pins in your papers ready. Hey, give me a call. 501 249 2343. Or go to YourAmericanRetirement.com . Leave me your contact information. I'd love to be able to speak with you I'd love to be able to talk to you a little bit further than what time I have today on today's show and give you a little bit more information on the secret formula to a happy retirement. All right. Hey, I want to give you a little financial wisdom right now. Then we're going to jump right in the Quote of the week.

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

Randy Sams:
Some taxpayers closed their eyes, some stopped their ears, some shut their mouths, but all pay through the nose. That's from Evan e. R. S. A r. Was an American humorist who wrote Azar's Comic Dictionary in 1943. So again, some taxpayers closed their eyes, some stopped their ears, some shut their mouths, but all pay through the nose. Folks. Hey, we don't want your retirement to be that way. We don't want you to close your eyes or close your ears, hold your nose or anything of this nature. When you go into retirement here at SMMG Financial, Your American Retirement, we want to educate you. We want to remove the risk and we want to set you up for a secure and a happy retirement, not a risky retirement. So, folks, here you go. I want you to listen to this. The first part of the equation that we're going to get into today, smart risk Woo. Is there such thing as smart risk? Yeah, we're about to get into it. Okay. Smart risk. So we want you to build a smart plan by considering the risk that you're going to place that you're going to face during retirement and learning how to best handle them. So that's something that we do. We're going to put together a retirement plan based on what risk that you see. All right. And there's all kinds of risk. And we'll get into some of them a little bit, a little bit farther into the show.

Randy Sams:
But number number one, smart risk, again, smart risk is based on the concept that all investments carry some account or amount of risk. All right. And the only way to remove risk is to diversify. All right. So we want to diversify what you have Your funds in. Diversifying means investing in a variety of different asset classes stocks, bonds, real estate, commodities and other financial instruments, such as annuities, which is what we're going to look at today. Investors need to consider your individual needs and your goals, as well as your risk tolerance. So, folks, that's something we want to look at. All right. So what are your risk? Let's talk about risk. Again risk. I just said at the end of the show or the end of the first segment, risk is for people trying to get the money that you already have. All right. When you hit that retirement red zone the five years before you retire, the five years into retirement, your objective is to remove risk. Your objective is to not lose. Now, how many of you listening today can raise your hand up and say, Randy, I didn't lose in 2022. I didn't lose in 2021. Not a lot of you are going to be able to do that unless you had a smart advisor, smart retirement plan put together for yourself and your family.

Randy Sams:
All right. So we want to get you into a into a position where you remove that risk and not lose. Because remember, again, everybody's trying to get to the point where you already are. You just need to make sure you don't lose. So here are some of the risks that retirees and pre retirees should consider. Number one, market risk. What is market risk? Well, you had your money in the market in 2022. You experienced market risk is going to go up. It's going to go down. So you take a risk or you've got to be prepared for volatility and uncertainty in the market by practicing asset allocation, interest rate rates. What are what was interest rates a couple of years ago? What are they are now? Inflation? Whew, That's a big one over the last couple of years, inflation. I'm. Are we paying more today than we did two years ago? Three years ago? Four years ago? Are we going to be paying more next year or this year then we did last year? How about two years from now? Public policy. What the heck are these politicians doing from taxes to retirement account rules or changing contribution limits? You've got to pay attention. To what these rules are. Timing. Timing comes into play. When you look at Social Security, when you're going to be able to retire, look at your retirement fund.

Randy Sams:
Some of you folks that I've spoken to over the last couple of years. You had planned on retiring. But guess what happened last year, or maybe even in 2021 and 2022. For some of you guys. That retirement account didn't go up like you wanted it to that account. The retirement account didn't stay level like you wanted it to. That retirement account went down. So what's your options now when you look at timing? Are you going to continue to work a little bit longer than you planned or are you going to go ahead and retire at a lower amount than what you had planned on? So timing makes a very big it's a very big issue as far as when you're going to retire and how you're going to retire. Liquidity. How easy is it for you to get your assets? Sequence of returns. That's a big one, folks. So right now, if you had retired in 2021, let's say if you retired in 2021 and that you were taking money out of your accounts in the first two years that you were withdrawing funds out of your account, your account values were going down, not because you were removing funds to live off of, but because the market was going down. So if you're taking money out at the same time the market is going down or your funds, your retirement accounts are going down decreasing.

Randy Sams:
That's not a good formula. That's where you're going to see your retirement account go to zero before your blood pressure does. Sequence of return Longevity. Are you going to outlive your funds? People are living longer, folks. You know that because of modern medicine, the miracles that we have, the surgeries that we have, the medications that we have woo, people are living a lot longer. All right. So we have to address longevity risk. Excess withdrawal. That's what happens to a lot of people. They get stressed out. Remember my first segment, stress and rocking chairs? People are stressed out because they're concerned they're going to withdraw too much money and they're going to run out of money before that time. Health expenses. We're getting older. We may not be as healthy as we were at 75 when we were at 45 or 55 or 65. Okay. Are you going to have to be re employed? Are you going to have to? Go out and find a part time job to supplement what your retirement funds are, maybe a little bit lower than what you expected. I don't think that's what you planned on for retirement. Again, retirement should be your go go years. Every day should be Saturday. Go out and play golf. Go out and play bocce ball.

Randy Sams:
Go out and play pickleball. Go out and play tennis. Take those cruises. That's what we want to set you up. We want to set you up for a happy retirement. So, again, folks, smart risk. Remember that? Smart risk. That's the first part of the equation. We have the risk that we're looking at for your retirement plan, smart risk. The first part of the equation. Here we go. Secret to secret formula for a happy retirement is smart, safe. Makes sense, doesn't it? Smart, safe, smart. Safe. Investing is an investment strategy designed to generate the highest. Possible return while keeping risk to a minimum. Guys, if you've joined this show since I've started since we started in 2022, you know, one of the things that my objective in my position at SMMG Financial is to what? Remove risk. Eliminate risk, but we have to address it. And that's what we talked about before. We have to be aware of what risk or available. That's called smart risk. What are we willing to take? And then number two, smart, safe. So an investment strategy designed to generate the highest possible return or income while keeping risk to a minimum or. Eliminating risk altogether. So folks, put these two together. Smart risk. Plus, smart, safe. Equal what safe money? So safe money plus smart risk, equal smart save. And that's where we want to put you.

Randy Sams:
So, folks, when we meet. We're going to take an honest look at your current situation. And we're going to take an honest look at what you're how it matches up to your horizon timeline, what your objectives might be. So we're going to gauge your assets. We're going to calculate your risk, what your risk tolerance might be, and then we're going to plan for a guaranteed foundation of income through Social Security pension, if you're lucky to have one, and then guaranteed annuity. So people are living so much longer. And the statistics, mortality statistics have changed due to COVID and different things of this nature. But individual life, folks, we're living longer. Did you know that? Life expectancy. We are living longer, so we have to make sure we're going to look at your budget deficits, We're going to look at political nonsense. We're going to look at the stock market volatility. And this is where planning becomes more difficult because some of those things we don't have control over. But many people have decided to reduce or eliminate their risk exposure and simply outsource the responsibility to a risk bearer. Folks, we want to address risk. We want to transfer that risk. We want to transfer the longevity risk, inflation risk, market risk and the health risk. So how can we do that, Randi? How can I transfer risk? I'm tired of taking the risk myself.

Randy Sams:
How can I do that? Well, folks, a risk bearer is an insurance company. Turn that around. An insurance company is a risk bearer. So that's what we utilize the insurance companies for folks, is we want to transfer risk that's been on our shoulders all these years and we want to now put it on somebody else's shoulder so I don't have to worry about the stress and I don't have to worry about the rocking chairs. I want to enjoy those Go, go. Years. So here's what we got. What is safe money? Think of safe money as money free from exposure to risk. You've got bank accounts. You've got treasuries. We have annuities. Oc. But folks, you know, here's what most of us want. We want stability. That's what safe money is. Safe money is stability, boring money that provides guarantees and stability that is safe money. So what is safe money for those planning for are already at the door of retirement. Safe Money means risk management, freedom from lost or exposure from risk. Hey, folks. We're going to take a little break right now. We're going to come back and we're going to talk about the new retirement rule and safe money again, a happy retirement, The secret equation to a happy retirement. You're Randy Sams YourAmericanRetirement.com 101.1 FM the Answer. We'll be right back.

Producer:
You're listening to Your American Retirement to schedule your free no obligation consultation visit YourAmericanRetirement.com .

Producer :
When it comes to saving for retirement, Who is winning the battle of the sexes? I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife. The gender gap is a real thing in the US, with women making less money on average compared to men. Congress passed the landmark Title nine law more than 50 years ago prohibiting gender based discrimination in education, and that resulted in women pursuing careers that had previously been considered off limits. And while females have made strides over the years when it comes to finances, a new study from TIAA shows it's men who are setting aside more money for retirement 27% more, to be specific. And while that number is better than in years past, it's still a significant gap.

Stephanie Asymkos:
And in the past year, 78% of men have increased their retirement portfolios through stocks, compared with 51% of females. And now this imbalance really underscores not only the gender wage gap, but it also has really far reaching implications for long term retirement security.

Producer :
Stephanie Simcox with Yahoo! Finance recently reported on the gender gap in retirement savings.

Stephanie Asymkos:
When stretched over the course of a career. A woman's lower wages really directly impact her ability to save for that nest egg and then live comfortably in retirement.

Producer :
And she says the pandemic surely didn't help the situation. In fact, it got worse.

Stephanie Asymkos:
Because of the pandemic. A preponderance of women have downshifted taking time away from work to really concentrate on these pandemic measures of supervising remote schooling for children or caring for aging parents.

Producer :
The TIAA study also showed women have some catching up to do when it comes to financial literacy. When asked financial questions in a survey, women got 45% of them right, compared to 55% for men. And Olin, with TIAA told CNBC that all of this underscores the need to equalize financial education among the sexes. So women, do you have a sound retirement plan in place? That's a key question to consider. As all of our retirement years draw closer with the Retirement.Radio Network powered by AmeriLife. I'm Matt McClure.

Producer:
Welcome back to Your American Retirement. Here's Randy Sams.

Randy Sams:
Hey, welcome back to Your American Retirement. My name is Randy Sams. I thank you for listening to 101.1 FM. The Answer we're Little Rock comes to talk. I hope you're having a fantastic Saturday afternoon. Hey, folks, for those of you who have listening and you've got your pens and pencil, remember? We are giving out the secret formula for a happy retirement on today's show. We've spoken about safe risk. And we were talking about safe money right now. Okay. So safe money. Regardless of what the definition of safe money might fit be in your situation, Baby boomer generation has introduced a new concept. Listen to this. Cash has become king. The simple rule, one that most retirees must live by. It's not how much money you have. It's not about assets, folks. It's about how much income you have each month. Folks, you do not retire on assets. Assets can be lost. I see it every day. How many of you all lost assets in 2022 because of the stock markets? You have your money in an IRA and a money market account in a 401 K, whatever it might be. How many of you can actually say that you did not lose money? In 2022. All right. Now my clients can say that because we use safe money, we take that word loss, we take that risk off the table. We want to eliminate that. So, folks, remember, you retire on income, not assets. If you want to remove stress from your retirement plan. Come talk to me.

Randy Sams:
Go to YourAmericanRetirement.com leaving your information or call me at 866 990 7664. Leave me your contact information and I'll show you why you do not retire on assets. You retire on income. I have yet to meet someone who is getting close to retirement or someone who is in retirement right now that says they don't need income. Everybody needs income to live off of. So here's the new retirement rule, folks. It's called safe money. All right. So if we take safe money and we add that to smart risk, that equals smart safe. And that is the secret formula for a happy and a secure retirement. Safe money plus smart risk equals smart, safe. And that's what we want to put together for you guys. So listen to this, guys. So. Baby boomers spend more. And save less. Did you know that? So having income each month is more powerful, especially right now, than how much you have in your savings account or how much you have on deposit. Remember, you retire on income, not assets. Financial security begins by considering these questions. Have you planned for the accumulation? Everybody loves the accumulation phase, but have you put together a plan for accumulation? So what is your exposure to risk? How does it compare with your time? With your time horizon? Where do you invest? Where is your money at? Is it still at risk? Is it still in the market? Is it going up? Is it going down? Is it staying level? So what? What exactly is your time horizon? When are you planning to retire? How far out? Remember the red zone? Five years before you plan on retiring.

Randy Sams:
Five years after you retire. Who has earned your trust. Folks, hopefully listening to this show, you've you realize that what my objective is, I'm going to come meet with you. You're under no obligation whatsoever to do business with me. I hope you do. I hope I earn your trust. I hope I earn your business. But my objective is to number one, if I walk away and we don't do business, at least I know. And you know you're going to be educated and you're going to. Have a lot more wisdom on what you're planning might lead to some changes you might need to make, what your retirement plan might need to include. So I look at educate. I feel like if I can sit in front and be with a lot of people. And I can educate them on what their options might be for retirement. Everything's going to work out for me. It's going to be good, all right? It's going to be good. All I'm looking for is the opportunity to be able to sit down with you and earn your trust and show you what? How we can put together a retirement plan based on what your objectives are. So, you know, we want to use safe money. We want to use safe risk. Smart risk. And that brings us to smart. Safe. All right.

Randy Sams:
So here's what I do. The majority of my business is annuities. Don't don't hold your nose because you're going to love annuities. By the time we get through annuities, the first step towards safe money. So annuities are an important part of any retirement plan as they are safe. They're secure and they are risk free. The ones that I deal with anyway. So an annuity allows you to accumulate funds for retirement on a tax deferred basis. And upon retirement you'll receive an income from the annuity that the insurer will guarantee the last either a fixed number of years or as long as you live, or as long as your spouse lives depending on what you choose. All right. So folks, there are no annuities out there that we can set up to pay for ten years, 15 years, 20 years, 25 years, 30 years or life. Okay. We can set them up to pay for your life. We can set them up to pay for your life. And when you pass away. Your spouse will be able to receive the same amount of income for the rest of his or her life. All right. So some of the quick. Summary of some of the benefits. And we're not through talking about annuities. We're I'm just jumping into this. Number one, remember this tax deferred earnings, that's a benefit of annuities. No contribution limits. Folks, I have annuities that you can start out at a certain dollar amount. And you can put in more. Every year after that.

Randy Sams:
So you're not just stuck with what your initial premium that you may have put together for in that annuity. We can add to it every year. So if you're younger. And you will start out with a certain dollar amount. Especially I've done this for self-employed people. They don't have a four on one K because they're self employed, but they have a certain amount of money that they want to put into an annuity and they want to let it grow. And then every year they can add a certain dollar amount to that annuity, whatever that might be. There's no limit. There's not a minimum contribution or a maximum contribution into an annuity. So we can set that up. And, you know, if you're young enough and you let that grow for ten years, 15 years or 20 years, then you basically have set yourself up with a pension. So that's what we do. So an annuity is the only product that can guarantee a lifetime income. All right. Investments can't do that. The 401 K can't do that. The stock market will not guarantee you a lifetime income. It cannot guarantee you a lifetime income. And annuity is the only product that can guarantee a lifetime income for you and your spouse. So you have flexibility when you want to start withdrawing those funds. There's no required minimum deposits or no maximums. And listen to this. Proceeds may not be subject to probate if there is a named beneficiary. All right. So an annuity is a it's a it's a great option for someone looking to enhance your retirement planning strategy.

Randy Sams:
So listen to this. Annuities, equal safety. All right. Did we say safe money? Annuities, equal safety? And you know what I like about annuities? They use compound interest, not all of them, but the majority of the annuities that I work with, they utilize compound interest. So now this isn't really isn't a secret as far as compound interest, at least I hope not. It's worth mentioning. So delaying retirement savings can keep you from realizing your retirement dreams because the power of compound interest only works when it has time. All right. So, folks, if you tell me that you're going to retire in a year or two years, then we're not. We could put you into an annuity that has a compound interest, but you're only going to enjoy it for one year or two years. So we're the compound interest really comes into play. Or for those folks who you've got seven years, eight years, ten years, 15 years before you want to retire, and that's when you really see. How the compound interest can really affect can really maximize your earnings in that annuity. So a quick estimate for that if you want to see how long if I've got 100,000, Randi, how long is it going to take for me to double that 100,000? Well, that's going to depend on the interest rate that you're going to get. So basically, what we use a mathematical formula very quick, it's called the rule of 72.

Randy Sams:
So you divide the interest rate that you receiving on an investment into the number of 72 and the result is the number of years it will take your money to double. All right. So if we put your money into an an investment that gives you a 5% interest return, it's going to take 14.4 years for that money to double. 7% return. 10.3 years to double. 10% interest compounded. 7.2 years. All right. So if you have money. Depending on how long you have, you use that rule of 72 and you say, Wow, it's going to take that long. If I'm getting 2% interest, how long is that going to take? Well, take 2%. Divide that into 72. What does that come up to? 36 years. Woohoo. Hope you started really, really young. But compound interest, folks, it's it's fantastic. People want to know how can these things grow like they do when you leave them in, there's cause of compound interest. So, hey, what is an annuity? Good question. An annuity in a simple definition is an amount payable annually. This is where people think about annuities. When I when I talk to folks and they have that first day, that knee jerk reaction about annuity, see what their what their idea of an annuity is, how annuity used to work, where you would give the insurance company a check of a certain dollar amount and they would shake your hand and they would guarantee you a salary. They would salary, they would guarantee you an income for as long as you lived.

Randy Sams:
The downside to that was that if you died early, they kept what was left over. Okay. There are not a lot of annuities that are like that today. Most annuities that I deal deal with, if you start an income and you pass away, whatever account value is in there can be passed to your spouse or to whoever you set up as a beneficiary. All right. So another kickback that I get, folks, is when I use the word annuity, they someone has said, well, Randy, my investment advisor, told me I don't want an annuity. You want me to tell you the secret? Why? Okay. So listen to this. What's the simple definition of an annuity? An amount payable annually. So here's what we've got. This is a side note. Advisors don't like annuities. Question Mark. You know why they don't like annuities? Because you are the annuity to that adviser. You say, well, how am I an annuity? Randy Well, because remember, investment advisers, money managers, whatever you, whatever classification you want to whatever label you want to put on them, they receive a fee, right? They receive a revenue stream in the form of a fee, which equates to income, as far as I'm concerned, from your money. It's called AUM assets under management. So as long as they have your money. And they're supposed to be managing it. As long as they have it under their management and they charge those fees, whether your account goes up or whether your account goes down.

Randy Sams:
How many of you all heard from your advisor in 2022? Did they say, Oh, well, your account went down. I don't want those fees now if your account goes up. They get those fees, If your account goes down, they get those fees. So folks, remember this. Anybody that tells you not to be interested in an annuity, especially if they've got your money, they're supposed to be managing your money. Just remember this. You are an annuity to them as long as they receive a revenue stream off of your money. All right. Remember that. So we can set you up in an annuity. It's a contract offered by insurance companies that allows you to accumulate funds for retirement on a tax deferred basis. And upon retirement, you'll receive income from the annuity that the insurer can guarantee to last either for a fixed number of years or for as long as you live or for as long as your spouse lives. All right. So remember. An annuity is not a CD. It's not a CD. It's not a certificate of depreciation or depression. It's not a life insurance policy. It's an annuity. It grows, it grows for you and you can use it and set it up a guaranteed income. Hey, come right back, folks. We're going to give you the the rest of this formula, the secret formula to a happy and secure retirement. Randy Sams, 101.1 FM, you're listening to Your American Retirement. Thanks. We'll be right back.

Producer:
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Randy Sams:
Hey, welcome back, folks, to Your American Retirement. My name is Randy Sams. Thank you for joining us on 101.1 FM. The Answer, folks, Today show, if you've had your pins in your paper, your pins, your pencils and your paper, hopefully you've been taking a lot of good notes because I just gave and we're still about to finish up the secret formula for a happy and a secure retirement. Remember, smart risk. Safe risk. Equal safe money. Safe money. Smart risk. Equals smart, safe, smart, safe. That's what we want to set yourself up. I think that's what I'll start calling my retirement plans. Smart, Safe Retirement Planning by Randy Sams. I like that. Y'all write that down. All right? Don't go out there and try to put a copyright on it. I think I just took that. All right. So let's talk about a little bit. We talked about annuities, folks. We talked about the formula. We're going to finish up today's show. We're going to talk a little bit about how annuities work. I'll give you some examples on annuities. But, hey, listen, you know what I do? I try to educate folks. Please go to YourAmericanRetirement.com our website. Leave me your contact information. Give me some ideas what you might like for me to kind of what subject matter might be on some of the next shows or the upcoming shows or leave me your message. 866 990 7664. Leave me a voicemail with your contact information or call me direct.

Randy Sams:
5012492343. Love to talk to you. Spend about 5 minutes Answering any questions you may have and then if you're interested, we set up a no obligation free consultation and we can set you up for a happy and a secure retirement. We're going to use this same formula that we're going over today to look at set you guys up for yourself and your spouse for a safe and a happy and a secure retirement. So, folks, how does an annuity work? So annuities. So annuities are often used to provide a pension. So if any of you out there have a pension, then you have an annuity. So if you ever tell me, you know, oh, I don't like annuities and I'm going to ask you, do you have a pension? And they go, yes, So you don't like your pension? And they say, Oh, I love my pension. Well, guess what? That's an annuity. That's a lifetime string of guaranteed income. That is an annuity. What else is an annuity? An example of annuities, Social Security. So if you're on Social Security, you can't say you don't like annuities because every month that you get that deposit, that is an annuity payment. That's a guaranteed lifetime income. As long as you live, that income is going to come in. So a secure Social Security payment and pension payments. So basically an annuity is a fixed regular payment.

Randy Sams:
Paid out over a number of years. A set number of years could be a ten year period, could be for life. To a person during their retirement. So, folks, listen. So you pay your premiums to the insurer and in return they're going to pay you an income stream later at a later date. All right. Now, you have an immediate annuities that you can put your money in there and they'll give you a guaranteed income starting today. All right. And that'll last for as long as you live or as long as you want to set it up. But so listen. So you give your premiums to the insurer and in return, they will pay you an income stream starting at a later date. And you'll see there's two phases to an annuity. Number one is the accumulation phase. And number two is the payout phase or the accumulation phase. All right. During the accumulation phase, the money you put into the annuity earns interest. Lest any charges by the insurer. And folks, if there are any charges, I try to number one objective for me when I meet with my clients, my number one objective is to put you into an annuity with zero fees or as little fees as possible. All right. I don't use fees that are annuities that are loaded with fees. No reason to. You've put up with that all these years. It's not what you want to think about in retirement.

Randy Sams:
All right. But in the accumulation phase, the earnings that you get during this phase, they grow tax deferred. So you won't owe taxes until you make any withdrawals. And because of this tax deferral and because of compound interest, your funds will grow faster than if taxes were being paid on an annual basis on your gains. So the longer you leave your funds in the accumulation phase, the more impact the tax deferral feature of the annuity is going to have on your value. All right. During the second phase, the payout phase, the accumulation, the company pays an income to you or anyone else you designate. All right. So unlike many other retirement saving investments, you typically you know, you don't really typically have the flexibility in how you receive your funds. But with an annuity, you have the flexibility. You can choose a ten year payout if you want to. We can use a ladder. We can use an annuity ladder, folks. And we can have annuities that that payout for a certain period of time. And then. Other annuity set up that will pay out when that annuity runs out. Okay. So we can do an annuity ladder to where you have you have income. For the rest of your life. But we're taking advantage of the maximum amount of income we have by using a shorter payout period. All right. But you also have the flexibility and the majority of the annuities that I set my clients up with, they are for lifetime income.

Randy Sams:
All right. So if you're single, we're going to set you up with a guaranteed lifetime income stream for as long as you live. If you're married, we're going to do the same for you and your spouse. So when you pass away your spouse, he or she will get the same amount of money every month for as long as they live. Okay. And then you have a death benefit. We'll go over that. So. How do annuities best serve you as the person who made that deposit? So you're building a future foundation of guaranteed money that will grow tax deferred. Folks, I'm going to give you a little side note. I have an annuity right now that I use quite a bit. It's worth it. I'm not going to use the name of the company, but they give us a guaranteed 8% compound interest guaranteed for ten years. All right. So listen to that. Number one, you build a future foundation of guaranteed money. So, folks, if I can put your money right now into an annuity that guarantees you in an 8% growth in your income account, your benefit base guaranteed to grow 8% for the next ten years, Whew, That's guaranteed. You're not going to lose anything that's going to grow 8% over a ten year period. You do the math.

Randy Sams:
All right. And again, that's all tax deferred. So, again, you're creating a future guaranteed income stream for retirement. That's what you want to look at. All right. They are safe and they are secure. That's why I love annuities. Okay. So. You have to be aware of what how the annuity can be utilized in your financials, in your retirement planning. And that's what we do. So you know that naming a beneficiary in your annuity can avoid probate. So if a beneficiary is named in an annuity, the funds are paid immediately and without delay. The proceeds will not be subject to probate and may be passed directly to your designated beneficiary. So, folks, if you want to use that annuity as a legacy. To pay something to your kids or your grandkids. You can use an annuity. It bypasses probate. Types of annuities. Folks, very quickly, we have deferred annuities. All right. Some people think that annuities are complex. You know, man, there's there's a lot of components that make them think, make them They're hard to understand. But you know what? Here's what here's there's three factors that I want you to think about how money is paid into the annuity contract, how money is withdrawn and how the funds are invested. All right. Pretty makes it simple. So there are two broad classes of annuity. Number one is the deferred annuity and the number two. Two is an immediate annuity.

Randy Sams:
All right. Deferred annuities, just like the word sounds. It's most appropriate for people who want to save for future retirement. They don't want to touch the principal and interest until age 59 or older. They find an investment that will earn tax deferred interest for many years. And you want to save more than the maximum annual contribution that your IRA or 401. K will allow. So with a deferred annuity, you pay a premium to the insurance company. They issue you a contract and they promise to pay you interest made on the premium while deferring the income and the taxes are also deferred until you begin to withdraw the money or begin receiving an income. Three major types of deferred annuities. Number one fix. Deferred annuities. Number two, fixed indexed annuities or equity indexed annuities. And number three, variable annuity. So folks, the fixed deferred annuities or the indexed annuities, the fixed indexed annuities, they are part of the general account. So this account is what you see when you look at an insurance company reserves. When you see that reserves, this is where the funds are. So when you see when you put your money into a fixed annuity, a guaranteed annuity or an equity index, a fixed indexed annuity, the insurance company has assumed all the risk. All right. A fixed deferred annuity or what I consider to be a mega NYG stands for multi year guaranteed annuity. That is, an annuity that pays you a guaranteed rate of return.

Randy Sams:
Works like a CD. It's not a CD, it's an annuity, but it works on that. Same if you want to kind of. What does it equate to? That's what it does. You put your money with the insurance company. They give you a guaranteed rate of return, guaranteed for a certain period of time, three years, four years, five years, seven years, whatever it might be. Fixed indexed annuities, folks, you put your money into the into the account. It goes into an index and you are your interest that you earn are based on what the index performance basically means. You have a participation rate, you have a cap or you have a spread. Folks, I don't do variable annuities because I feel like that variable annuities, you still are involved in the volatility and the market fluctuation. In other words, if you have your money in a variable annuity, you still participate in all the risk. All right. So folks, that is just some of what we're going to talk about. We may we may pick this up again next week. But right now, again, today's show was the. Secret formula to a safe and a happy retirement. My name is Randy Sams. I've been your host. I hope you've enjoyed today's show. You are American Retirement on 101.1 FM. The Answer we're Little Rock comes to talk. We'll see you soon.

Producer:
Thanks for listening to Your American Retirement. You deserve to work with licensed financial insurance experts who can offer sound strategies for protecting and growing your hard earned money to schedule your free no obligation consultation. Visit YourAmericanRetirement.com today That's YourAmericanRetirement.com.

Producer:
Not affiliated with the United States government. Randy Sams does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks of the property of the respective owners AmeriLife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or of the results obtained from the use of this information.

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