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YAR Full Show 8.3.mp3: Audio automatically transcribed by Sonix

YAR Full Show 8.3.mp3: 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. Welcome to your American retirement with your hosts. Randy Sams and Kale Simpson get set for a full hour of financial information and economic news affecting your bottom line. Randy and Cale work hard each day to educate Americans like you on how to reach the financial freedom they worked so hard for by protecting and growing their hard earned money. And they can help you, too. So now let's start the show. Here are your hosts, Randy Sams and Kale Simpson.

Randy Sams:
Hey, welcome, everybody. Welcome. Central Little Rock. We'd like to welcome you to our show this Saturday afternoon, your American Retirement with Randy Sams and my co-host, Mr. Kale Simpson on 101.1 FM. The answer. Hey again. We want to welcome everybody. We thank you for for listening to the show. We're excited when we hear from our from our listeners. You can get in contact with us 8669907664 or go to our website. American your American retirement. Leave us a good message. Also, we have podcasts. Subscribe to the show. We don't want you to miss an episode. Give us a thumbs up. Let us know you're out there. We love hearing from our listeners. Anyway, again, we want you to be able to book an appointment, to be able to speak with myself or Kale. We'd love to do an annuity checkup, kind of see how you're doing financially, what your retirement plans might be. Remember, at your American retirement, our focus is on addressing the major financial issues facing retirees and pre-retirees in America today by helping people understand and prepare for a secure retirement, not a risky retirement. So, again, your American retirement. 8669907664. Leave us a message. Schedule an appointment with myself, Randy Sams, or my co host, Mr. Kale Simpson. So today, folks, our show is going to be a financial checkup for a healthier retirement. Something to think about. We're going to be looking at a little financial wisdom quote of the week for you guys today. Is interest working for you or as interest working against you? Compound interest is the eighth wonder of the world who understands it earns it. He who doesn't pays it. That's by Mr. Albert Einstein. I think he was a smart guy, wasn't he?

Kale Simpson:
Pretty smart guy, Randy.

Randy Sams:
Pretty smart guy. He must have been in the insurance business.

Kale Simpson:
Yes, I think he did. He did that before everything else that he did. I think you're right.

Randy Sams:
I bet he had an annuity. What? You bet.

Kale Simpson:
I bet he had more than one bet.

Randy Sams:
Albert Einstein had an annuity. Gail, you want to bet on that? Do a little research. Yes.

Kale Simpson:
Let's do a little way.

Randy Sams:
Get our producer Sam to do a little research on that. Make sure that we can tell you Albert Einstein being a smart guy, he was he had an annuity in his financial planning.

Kale Simpson:
Did he say.

Randy Sams:
Sam's going to do a little research? We'll get we'll get that information out to you next week on next week's show. But that's just something that we can maybe play right or wrong, you know, with that one. So I thought I.

Kale Simpson:
Have annuities been out that have annuities been available for that long?

Randy Sams:
Randy Annuities have been around since the days of the Roman soldiers. Cale That's why a.

Kale Simpson:
Lot of our listeners did not know that.

Randy Sams:
If they actually survived battle, didn't lose too many limbs or whatever, then they when they retired, then, yes, that's what they retired on was an annuity. I don't know what it paid. Maybe a couple of shekels a month, I don't know. Hadn't been, you know, I may be old, but I'm not that old. But I do know that that the annuities have been around since the Roman Soldier Day. Yes, sir. So, yeah, a little homework for you there? Something to do so we can look at that. So, hey again, folks, call to action. We've got a little book we want you guys to get in contact with. We'd love to send it to you. We sent out several over the past couple of weeks. That's an annuity. 360. We'd love to get that in the mail to you if you'll call us again. 8669907664. Leave us a message. Leave us your information. We'll get back in contact with you or go to your American retirement and leave us a message and we'll get you that little book, the the Annuity 360 book, give you a lot of great information about annuities, the ups, the downs, the ends, the outs, the whys. You should have one if you're going to retire. Everybody needs an annuity because everybody needs retirement income. Is that correct, Kale?

Kale Simpson:
That is correct. Randy Sams.

Randy Sams:
I have yet to meet a retiree that does not need income. If there's one out there, please give us a call. We'd love to talk to you, but I don't think we're going to get any phone calls. But hey, look, I'm. I'm done on my part. Kale, I think I brought us in to this to this segment here. So let's going to give a little I'm gonna throw it over to Kale, folks. Kale is going to give us a little update on the market, kind of give us what's going on in the market. So take her away for us, please, sir.

Kale Simpson:
Hey. Thanks, Randy. Hey, guys. Good. Good to have you back on one on 1.1 FM The Answer and your American Retirement. Always great to talk to you guys and give you a little bit of education. Maybe pick up a nugget or two on on Saturday during your weekend to help you financially make the right decisions for you and your family as you head towards or progress through retirement. Give us a call like Randy said or go to the website. If you go to the website, there's an area where you can submit information on the website for a return phone call. If you guys give us a call, you're not going to be on the air. You're not going. To be asked multiple questions on the air or anything like that. We're we're solely here to help you guys navigate the retirement landscape, help you understand what you can and you can't expect in today's retirement marketplace. Have you understand what's going on in the overall macro economic environment, which I'll go over here in just a minute during our market update, which we do on a weekly basis. But again, wherever you listen to your podcasts or watch your podcasts or listen to your or listen to your stuff online, go to your American retirement.

Kale Simpson:
Subscribe to our YouTube channel. You'll get all of our newest videos, podcasts and updates delivered straight to you. Hit that like button and then also share it with your friends and family guys. We not only work here in central Arkansas, I know I've got non-resident licenses in multiple states along with Randy Sam's. Myself. I'm heading next week. I'm going out of town. I'll be in three different states in addition to Arkansas next week. So guys, we don't work just here in central Arkansas. We see clients in multiple states surrounding Arkansas. That's Oklahoma, Missouri, Tennessee, Kentucky, Alabama, Mississippi, Louisiana and Texas. So. If you have family or friends or you're seeing this sent to you via social media or any other platform, just remember, guys, we we can help clients in other areas and we do more often than not, most of my clients that I talk to, I'm on the road. I'm out there seeing them shaking hands. Thank goodness I was going crazy during COVID, but now I'm able to get out and shake hands and help people understand what's available. So before we go any further, Randi, if it's okay with you, I'd like to give you a little heads up on what's going on last week during our market update.

Randy Sams:
Please do, Kale. I'm all ears.

Kale Simpson:
So, guys, as you know, Speaker of the House Nancy Pelosi visited Taiwan this past week. We shall see how this unwinds. China said that's a bad move. Other people said that's okay. I don't I don't know. We are having the. The semi semiconductor shortage. Supply chain. Problems. Inflation problems. Inflation problems. Again, I have to echo that a couple of times. We've got we've got to understand that. We've got to put that on the radar screen and we've got to check the barometer on those things. So we we shall see how that unfolds. The market took it took it relatively in stride. From a earnings standpoint, earnings, corporate earnings have been decent, Randi, but we all know that markets are forward looking. So it doesn't matter what companies are doing necessarily right this second, unless they are absolutely atrocious, then you will be punished. But forward guidance, like like Wal-Mart, for example, Wal-Mart was hit was hit hard, but it was just on forward guidance. Same thing with Caterpillar. Caterpillar seeing slowing down in China. So I mean, that's obviously going to resonate in an earnings outlook and. You know, a movement in the overall market. The one thing we do have going for us guys market, you know, markets are seeing a drop in in gas prices. Consumers are seeing a drop in gas prices, which is which has been great. We've talked about gas being higher for the past four or five shows. Gas is finally down to a reasonable level. So hopefully we see oil. Oil's around $94 a barrel. Hopefully we see oil remain at 94, maybe go lower than that.

Kale Simpson:
But I mean, national average around $4 between $4 and 420 a gallon. You know, I mean, in Arkansas, we're going to be closer to the $3.45, $3, 75 cent range. I filled up for $3.50, $3.49 the other day. So it's good, but we need to keep an eye out on bonds. The short duration bond is the yield is high. We've seen we've seen a lot of selling on the short duration bond. And then we've seen buying Treasury increased federal funds rate by 75 basis points again. But we saw the ten year retreat. We've seen the dollar explode higher, which doesn't bode well for for exports with US dollars going higher. But again, Randy will again, we'll see how that plays out because with with the Federal Reserve doing what they're doing, we did see the ten year Treasury go higher, but then has retreated back to the to the 2.5 to the 2.65 level, while two years still remain at three or little higher than three. So we still are seeing that inverted yield curve that we need to be cautious of. And that's what all the economists and all the PhDs are saying is, you know, it's you're skating on thin ice. We've got to be careful. But we shall see what the landscape looks like for the September Fed meeting to see if we're going another 75 basis points. A little less than that or higher than that. We don't know until more data comes out, but that's where we are from a macro standpoint, Randi.

Randy Sams:
But I mean, from what I've been hearing, I guess that's the rumbling, isn't aren't they anticipating the feds to jack it up?

Kale Simpson:
Yes, sir.

Randy Sams:
Yeah.

Kale Simpson:
That is that is the consensus right now. Yes.

Randy Sams:
Yeah, that's what I'm looking at. Okay. All I can tell you, you know, I just got back from vacation, and it's been a long time that, you know, we missed speaking the last few weeks about about inflation and about gas. But I'll just tell you that there were several times that I had to put my debit card into the into the machine more than one time to be able to get enough gas in my truck because it stopped at $100. And then I had to put it back in there again. So anyway, folks, we're dealing with it. We're glad you're joining us. We're going to be taking a little bit of break here. We'll be coming back again. Randy Sam's Mr. Kale Simpson, my co-host, Your American Retirement. Back in just a second. Some folks up on May. Who will that.

Red, white and blue. And we're in a bad way.

Producer:
This part of today's show, Your American Retirement is available wherever you listen to podcasts and online at your American retirement.

Kale Simpson:
Hey, guys, welcome back. 101.1 FM. The answer this is Kale Simpson your American retirement dot com and along with my esteemed co host Mr. Ransom's I'm so glad you guys are taking the time out of your day to listen and get an idea of what we do from a financial advising standpoint. We work with SMG Financial. Randy Sams is the the President and founder of SMG Financial. So we do we do a wide array of financial matters on a daily basis, from insurance to retirement planning. And one thing that I wanted to talk to our listeners about, Randy, is something that came up the other day, which is what we call an annuity x ray or an annuity health checkup. Have you heard of that, Randy?

Randy Sams:
I have now, yes, sir.

Kale Simpson:
I'm sure you've done multiple annuity x ray or annuity health check ups with your clients, but I had one that I wanted to share with our listeners since we've got a quick moment. But guys, I wanted to share this because I think it will resonate with with a lot of you out there. I have a client that is an existing client, and we actually did some additional did some additional stuff for him since he is one year away from retirement and wanted to remove a little bit more risk from the equation that he has that that's present. So we added an additional fixed index annuity to his overall portfolio. And in in doing that, we were talking about different things and he asked me if I had the ability to do an annuity review is what he said. And I said, What do you mean in annuity review? And he said, Well, I have I have other annuities with multiple companies. I've got an annuity with. He named four or five companies, Randy, you know, F and G and he's got one with with Athene. He's got one with Allianz. It's got one with. With American. National. And. And I said, Yeah, you know, we certainly do that. We do that. We do that every day. We do that with all of our clients. That's part of that's part of what we do at your American retirement. We look at what you have. If there are any things that need addressing, we'll certainly address those things. Like if you're paying too much in fees, right, Randy? I mean, we see it all the time. You're paying too much in fees or maybe you have an annuity that's nine or ten years old. Let me ask you a question, Randy. Have annuities evolved over the past decade?

Randy Sams:
They've evolved over the past year.

Kale Simpson:
Yes, exactly. And that's what I tell clients all the time. I'm like, what? What we can do now versus what I could do ten years ago. It's like night and day. Like there are a lot of things that I'm reading where, you know, what we do should be a should should be a staple in your retirement plan, but people don't know it. They think about annuities as it's annuities ation. And you you lose control of your money and it pays you a small dollar amount and you pay incredibly high fees. That is and that is not what we do. So I said, yes, let's do that. And so when we when we looked at these various products, he's had most of them for a good amount of time. So like I told him, I said some things we need to address now, some things we probably need to address later. But yes, absolutely. There are things that we can do to better your retirement situation with what's available out in the open market now versus what you had six or seven years ago. And he's like, great. Can you can you help me do that? Yes. Yes. So, guys, I'm a certified annuity specialist and so is Randy. So, I mean, we have the we have the designations.

Kale Simpson:
I have the certificate on the wall. Annuities. That's I mean, that's what we focus on on a daily basis. So, guys, if you have questions about your annuity that you have now, give us a call. You've got our phone number 8669907664 or go to the website and enter your information and then we will reach out to you to get some additional information. But Randy, I thought that was I thought that was irrelevant to what we were talking about today and why our our our consultations are so valuable. It's not a sales pitch. We don't sell anything to you. But we do want our listeners and we do want the public to understand, look, if we can help you, great. If we're able to earn your business, that's fantastic. But we're not going to try to sell you anything. But you should be a little bit more prepared to understand what's the the first the five years before retirement. Retirement and the five years after retirement, which is what we call what Randy the retirement red zone. What is that going to look like? Why is it so important? And what do we what do we need to address now, if that makes any sense, Randy?

Randy Sams:
Makes perfect sense, Cale. I mean, that's the five years before five years. Your first five years into retirement. Perfect.

Kale Simpson:
Well, great. So, guys, if if you want, we can send out a book. It's called Annuity 360. It'll explain everything in writing. We'll put one in your hands. You can go over it. And then we'll also we'll also schedule a time where we can chat on the phone for five or 10 minutes to get a better understanding of what your custom situation looks like. It's not a cookie cutter deal, Randy. You know that people think it's a cookie cutter deal. It's not. Everybody is unique and we work our best. We work to do our absolute very best to help you understand what's available and what you may or may not qualify for, because, again, everybody is different. But hey, real quick, Randy, I read an article. I wanted to talk about this before before I throw it back your way. I know you've got some stuff you want to talk about as well, but the first half of 2022 has been a brutal year, right?

Randy Sams:
Yes, sir.

Kale Simpson:
We've seen inflation at 9%. So are you earning anything in cash? No. And the quote that you mentioned earlier about Albert Einstein. If you owe 27% on your credit card, are you behind the eight ball?

Randy Sams:
Yes, sir.

Kale Simpson:
Yeah, the eighth wonder of the world. So we've had a negative return in equities. We've had a negative return in cash, and we've had a negative return in bonds, which most of the time that's not the case. That's why you have asset allocation models. But the thing about it, if you've got a typical 6040 split equities and bonds, you should feel safe or it's or it's different. You add a little bit of cash. But again, with inflation, that's not going to be the case. But the article, Randi, said the biggest. The biggest problem that a lot of retirees have faced over the first half of this year on losing wealth is the negative returns in bonds. And I thought that was an interesting article because that's typically not the case where you can expect fixed income to offer some safety and it didn't. So we've had a lot of phone calls and I have tried to communicate that with multiple clients, that it's not somewhere where we can just hide out, right? Randy We can't just go hide out in bonds and expect to to not lose any money. There are very few places where you cannot lose any money. But the but the bond return relative to the equity return was highly correlated. And that's not been the case. And so when clients look at that, they go, well, what do I do? Well, again, that's that's what we do. We try to formulate a plan to where you don't have to worry about things like that, where you can have your money, not worry about unnecessary risks in the market. Randy, when we talk about like what the motto is, what we try to have people realize in retirement. Will you help our listeners understand what it is again on on what we do in retirement, we help them. What plan for what.

Randy Sams:
Safe a secure retirement. Not a risky retirement.

Kale Simpson:
That's right. And so if you if you lose 20% in equities and you lose 15 to 20% in your bond portfolio and inflation's at 9%, you're earning negative returns in cash. But you have a mortgage, you have a car note, and you also have high interest credit card debt. Again, what did Albert Einstein say? Say. Eighth Wonder of the world. I try to tell my wife all the time, Randi, I'm like, honey, if you owe a bunch of money on a credit card and it's a 25% interest rate and you pay the minimum payment or a little bit above it, you will never, ever, ever pay it off, right? Ever. You'll never pay it off. You can never get ahead. However, if you are earning. A good a good rate of return on your investment. Then it's like Albert Einstein said, you know. He who understands compounded interest earns it, but he who doesn't pays it. And that's the whole credit card conversation that I tried to have with my wife. So anyway, guys, go go to the website, fill out the questionnaire, fill out the information on the website. We will reach out to you. And if there's something we can do to help you, I promise you we will do our absolute best to do it. But. But, Randy, I thought that you would. I thought that you would find that interesting with respect to Bonds, because we talk about fixed income a lot, and that's been one of the biggest contributors to wealth. Destruction in 2022 has been the bond market. And I promise you, with the way that the ten year note is is reacting right now, I guess the old saying is we shall see what happens, but it doesn't look promising. But anyway, I'll throw that back to you, Randy.

Randy Sams:
Well, I mean, I want to kind of coattail off of what you said. I've got an article here by Barclays basically talking about indexed annuities compared to bonds. I'm not going to go into a lot of it. We don't have enough time in the segment. Maybe we can do it on one of the later shows. But just one of the things that they say, it says that the indexed annuities have outperformed bonds on a consistent basis over the last 25 years. Both the indexed annuities and bonds are principle protected. However, bonds are exposed to yields, whereas indexed annuities can participate in a wide range of exposures other than yields. And scale yields are what at a historical low? So if your bonds are paying for based on exposure to yields in your yields are low, what are bonds going to do? They're not going to perform very well in equities, offer a flexible exposures to diverse range of index options. So that's why we like the indexed annuities. And like we've stated on earlier shows, if you have a portfolio, a diversified portfolio and. It says the bonds can be typically 40% of portfolios. That's a big concern. What we've said, Tom Hagner guy that I've listened to, you've listened to read a lot of his articles.

Randy Sams:
One of the smartest economists he's trained, a lot of hundreds of thousands of folks around around the country about the importance of having annuities. But what he says is basically, if you take in indexed annuity and income annuity and add that, take the bonds out and add an income annuity, that income annuity is basically going to do two things. Number one, it's going to increase your return. Number two, it's going to decrease your risk. And that annuity acts like a triple-A rated bond with a triple C rated return, which is which puts us in a fantastic situation. So, folks, what Kale was talking about, well, we want to be able to do when we meet with you guys is we want to be able to understand what your objectives are. All right. What are your goals in retirement? What are your needs? What are your wants? In other words, where there's two types of income and we've spoken about this before. Income that you need, you're going to have to have income for shelter, food, clothing, medical, transportation. So we want to make sure that you have those taken care of. We call those paychecks. We want to make sure that you have a paycheck coming in to cover that kind of income, what you are going to need your basic needs.

Randy Sams:
And then also what we call play checks. Those are your wants. You want to do travel, take vacations, maybe a second home education, play golf, tennis, whatever you might do, boating, hobbies, those are going to be your paychecks, but play checks and paychecks. So that's what we're going to look at. And that's what I did. We're going to sit down with you. And your spouse significant other. And we're going to walk you through our process to kind of identify what your wants, what your needs, what your objectives are for retirement. And then we're going to start to identify risk with you again, some of the risk. Number one, risk is on longevity risk. Number two, liquidity. Number three, inflation. Number four, market. Number five, mortality. And number six, taxes. So we're going to go through all of those with you during our consultation. We're going to identify, place those in order for you. And which one seems to be more important to you. If it's taxes, we're going to focus on taxes, but we are going to focus on longevity risk where we want you to make sure that your blood pressure goes to zero before your retirement account does, correct?

Kale Simpson:
Gail Absolutely.

Randy Sams:
Randy So folks, that's what we do. Again, we're at a you're American retirement. We're focused on addressing the major financial issues facing retirees and pre-retirees in America today by helping people understand and prepare for a secure retirement, not a risk of retirement. Again, your American retirement with Randy Samson, my co-host, Mr. Simpson on 101.1 FM. The answer would be back just a second.

Music:
If tomorrow all of things were gone. Worked for all my life. And I had to start again with just my children and my wife. I thank my lucky stars. To be living here today. As the flag still stands.

Producer:
Take that away. Remember, all of Randy and Cale's listeners receive a free financial consultation just for listening to the show. Visit your American retirement to learn more and schedule an appointment. Thanks for listening to your American retirement and subscribing wherever you listen to podcasts.

Randy Sams:
Welcome back to your American Retirement with Randy Sands and my co-host, Mr. Cale Simpson on 101.1 FM. The Answer. Glad you joined us this Saturday afternoon. Folks, we're going to do a little segment here called Problem Solver.

Producer:
It's time for this week's Problem Solver.

Randy Sams:
I'm going to talk about a problem. I'll give you an example that I'm working with a client currently, and it just kind of falls right in line with what we're talking about. So problem, many people own variable annuities today. They don't understand them. Number one, their principal is at risk in the stock market. They're paying exorbitant fees anywhere from 3 to 6% in fees. They're also paying income rider fees. They're paying for guarantees. When you have a variable annuity, you're paying for guarantees. What I mean is you want a death benefit guarantee. You're paying a a fee for the death benefit to be guaranteed. If you want a your principal to be guaranteed, you're going to pay a fee. So variable annuities are loaded with fees. And that's one of the things that Kayla and I like to do when we meet with folks is let's do an annuity checkup doing annuity MRI and let's look at what you have and let's kind of compare with what may be some of the options and see if we can reduce or eliminate your fees. So we want to be able to make sure that we get some of your put you in the best position that we have. So the example I have, it just so happened to happen this week while on vacation, I was still making phone calls.

Randy Sams:
One of the clients that I was dealing with, he has an annuity again, you know, like you said, you asked the question earlier, Cale has as annuities evolve. Well, this gentleman had an annuity that I had never heard reacted this way or acted this way. But what it was, it was on a five year cycle. I thought it was like going to be a fixed like a MIGA every five years. But this was a variable product, but it was like every five years. And then it renewed, but it was like for a 15 year period. And when he first had the variable annuity, again, you know, like anybody else, we could have gone down to the zoo and monkeys could have probably picked out a good investment strategy for most folks because the investments for one K's were going through the roof. Now it's going the other direction. And guess what's happening to his investments, Kale? What's his what's his value doing on that annuity going down? Yes, sir. And and that's his concern. So he was asking me all kinds of questions. So, Randy, what what can I do? Luckily for him, Kale, he's not in a surrender period.

Randy Sams:
So if we are able to put together a a plan for for this gentleman who he's here in Arkansas. But if we're able to put to put together a plan for him, there won't be any surrender charges. So we'll be able to take that money out of a situation where he's currently losing and put him into a situation where his principal is going to be protected and he'll get some good growth with that indexed annuity. So solution is this, folks, when you have a problem with a variable annuity, you don't understand. Give us a call. 8669907664. Go to your American retirement. Send an appointment with myself or Mr. Simpson, because what we want to be able to do is help you consider a different type of annuity to better protect and grow your wealth. We believe your money should be working as hard as you, as you have worked for it. And that's something that I do. You know, when you get to a certain age and you're still working, but when you get what is that, that red zone that five years before or five years after you retire, that's when you don't want to lose. You work too hard to get to where you're at. What I tell people all the time, Cale, when I'm dealing with a couple who has a pretty significant retirement fund and they're wanting to protect it, well, we try to make them understand is number one is you've worked too hard to get to where you're at right now.

Randy Sams:
And the one thing you don't want to do at this point in time is lose, correct? We want to protect so we want to take risk. There are people out in the country, across the country today, Cale, that are trying to get to the position where a lot of our clients are at right now. Correct. So they're in the accumulation phase. What we're dealing with is we're working with folks right now that are in the accumulation phase. They're going to start taking the income or they at least want to protect that money. So what a fixed indexed annuity can help both protect and help grow your wealth. So that's my solution. Cale For folks who may have a variable annuity, if you'd like, for us to maybe do a consultation with you again, give us a call. Cale or myself, go to the website, set up an appointment. We'd be glad to do that. So, Cale, I got a little story for you. Goldilocks in the three bears comparison. You ready?

Kale Simpson:
I'm ready for this one.

Randy Sams:
All right, so variable annuity is too hot. The market is at risk. Lots of fees, a fixed annuity to cold bank CD, not beating inflation. Low interest, but a fixed indexed annuity is just a right because what do indexed annuity do for your folks? Cale They protect their.

Kale Simpson:
On the way up. Protect you on the way down.

Randy Sams:
That's right. It lets you and it lets you participate on the on the upside and it protects you from the downside. So like we said before, the indexed annuities can both protect and help grow your wealth. So that's the Goldilocks and the three Bears comparison. Kale.

Kale Simpson:
Randy, that is awesome.

Randy Sams:
Right?

Kale Simpson:
We're we're going to have we're going to have to send our producer Sam a gift for putting the Goldilocks and the three Bears comparison in in the show today, because that's fantastic. And really, Randy, to be completely honest, that makes that makes so much sense. To me. Like, that's something that I could talk to my six year old about, you know, and he could probably he could probably understand that. He could probably help clients understand that, too, by letting them know, Oh, no, that's too hot. Y you just mentioned it or Oh, no, that's too cold. But hey, I've got clients calling all day long, every day, Randi, saying they they want some of that cold porridge, right? No, it's too cold. You need something that. You need something that's just right. You got to keep an open mind. But but again, sometimes that sometimes, you know, sometimes that might that might be the pause that you're looking for. I don't know. But more often than not, there's there's going to be other other options. But gosh, Randy, that was a great one. I appreciate that. And we're going to have to bring we're going to have to bring Sam in for for this next segment that I'll do, because we always bring Sam in for wrong or right. Right.

Randy Sams:
Right or wrong. Sam, these two. Sam needs to be here.

Producer:
Come on down as we test your financial knowledge in right or wrong?

Kale Simpson:
All right. So so, Randy, we're going to jump into that. Let's let's tee Sam up, because I've got I've got a question that I'll throw in here and Randy, I'll see if I can I'll see if I can stump you. I think you're I think you're sitting at an A-plus. I think Sam is still sitting at an A-plus, too, on on my right or wrong trivia questions on 101.1 FM The answer during our Your American Retirement segment on on Saturdays. But I'm going to try to get you guys today. So I've got this stuff teed up. I've got it right here on my computer and on my desk. Randy, are you ready?

Randy Sams:
Yes, sir.

Kale Simpson:
Did we get Sam in here? I'm ready, guys. All right, Randy, this first one is for you. So. So again, guys, if you've never if you've never heard this, this part of our broadcast, I like it a lot. It's a question you can play along with us. Answer the question. I'm going to I'm going to ask the two gentlemen, Randy and Sam. I'm going to ask them a question. They're going to give me an answer, and then I'm going to either go ding, ding, or if it's wrong, if it's wrong, then I'll give you the correct answer. If it's right, then I'll ask them to explain in a little bit more detail why it's correct from their point of view. So, Randy, are you ready? First questions headed your way.

Randy Sams:
Bring it on, Kale. I'm ready.

Kale Simpson:
All right, so first question to Mr. Randy. Sam's right or wrong. Is it a waste of time, Randi, to have your financial accounts reviewed? On an annual basis, right or wrong?

Music:
Ding, ding, ding, ding, ding, ding.

Kale Simpson:
Doing this once again would be a hard question.

Randy Sams:
That would be wrong.

Kale Simpson:
Cale Why is it wrong, Randy?

Randy Sams:
You want to inspect what you expect regarding your future, financial future? An annual checkup can prevent you from paying too much in taxes and fees before those expenses cause a lifestyle change down the road. Cale That's something that we do every year. I mean, with the annuities that I'm in, I'm looking at my desk right now. I've got folders and folders and folders every year that that we have to have when I say have to. We get to have a financial checkup with our clients on their performance of the annuity every year. So we do an annual review and see if there's any changes that we need to make with those annuities. As far as index options, strategy options, we're going to go from a one year to a two year from a two year to a one year. So there's different options that we have. So, yes, you need to make sure that you're having your financial situation checked up every year on an annual basis, if not sooner. So you must inspect what you expect regarding your financial future.

Kale Simpson:
Cahill That is correct. And I really love how you said you've got to inspect what you expect, because when we when when we do plans for clients, Randy, they expect a certain outcome, correct? Yes, sir. So we obviously have to inspect the performance. You know, it's not we ride it and then we then we forget about it and we'll we'll talk to you a few years down the road. No, I mean, this is this is a proactive this is a proactive set of set of check ups, like you said, that we do with our clients on on an annual basis. Most of the time, it's a monthly basis, a quarterly basis, semiannual and an annual basis. So anyway, Randy, again, you are still sitting at an A-plus across the board. Next question is is is headed to Sam. Sam, I'm going to ask you this question. You give me right or wrong, you're ready. I'm ready. Okay, Sam, you should balance your investments across tax deferred taxable and tax free accounts, right or wrong?

Producer:
All right.

Kale Simpson:
I'm going to go with. Right. Because I feel like it's hard to go wrong if you've got a good balance. And I like especially taking advantage of those tax free accounts I'm going with. Right. That is fantastic. Well said, Sam. A-plus on that one. Ding, ding, ding. Hey, I'll tell you real quick. There's there's a book. There's a book out there. We used to order them by the pallet. It's called Tax-Free Retirement by a guy named Patrick Kelly. Our listeners can check it out. You can go on Amazon or any other site and look at tax free retirement talks about the four different types of money. So our listeners should know what's the the very best type of money, Randy? Free money. Agreed.

Randy Sams:
Free money? Yes, sir.

Kale Simpson:
Free money is the best type of money that that is that is one of the chapters it talks about for different types of money. Best type of money is free money. The second best type of money is what Sam mentioned just a second ago. That's tax free money is the second best type of money. The third best type of money is what we do most of our time. Throughout the day, Randi, we talk to people about tax deferred tax money. That would be the third best type of money. And a lot of people have, you know, defined contributions, defined contribution plans like for one case, for three B's, etc.. And the fourth best type of money for our listeners is fully taxed money. That's just income. Income where you pay taxes. Good answer, Sam. A-plus. I have not had a chance to stump you yet. I'm going to ask this third question. I think I can pull both of you guys up on my computer. We've got just a little bit left in before we need to take a break. So this will be the last question that I'll ask you guys. First person to raise their hand. If I can see you, I can. First person to raise your hand gets a chance to answer the question for bonus points and to win the round of right or wrong on one on 1.1 FM The Answer to Your American Retirement. On today's episode, Are We Ready, guys? Given coming your way. Here we go. Randy and Sam, you can structure your retirement accounts to deliver tax free income during retirement. Sam. You got it. What's your answer? I'm going to go with right, guys. That is a possibility to generate tax free income. And I know Randy could have beat me to the punch and answered that question correctly, too, but I just wanted it more. So that's why I want I love your candidness. So let me.

Randy Sams:
Expand on Sam. So, see, I'm going.

Kale Simpson:
To.

Randy Sams:
Go split. You got it. Right. But you see, you can do Roth IRAs and IUL policies can buy can provide tax free funds. You know, the Roth IRAs, tax free withdrawals, no required minimum distributions, us build up cash value life insurance and take tax free withdrawals from the accumulated cash value of the policy. So, Sam, you get half and I get half because you said. Right, but I gave the reasons why not it.

Kale Simpson:
Let me ask you this before we go to a break. So on a Roth IRA, I have a client that is 37 years old, that is a business owner that has a Roth IRA, is wanting to move out of a different brokerage account. And we need we need to try to help him. So he asked me the question, can you take money out of a Roth IRA before you're 59 and one half? The the IRA still has rules about the old 59 and one half rule. So that's what I told him. This is money for retirement, not not money that he needs to use now. But, guys, that's that's all the time that I have for right now. We're going to come back here in just a moment. Going to a break. Kale Simpson and Randy Sams, your American retirement on 101.1. If I'm the answer.

Music:
Is just back to see. Caught in a landslide escape from reality. Open your eyes. Look up to the skies and see. I'm just go.

Ford Stokes:
For chapter three famous people who invested a significant amount of their hard earned wealth in annuities. Big idea annuities are for everyone, even if you're not worried about outliving your wealth. Annuities are safer for your money than investing in stocks or bonds or simply not investing at all. Babe Ruth, known as the Sultan of SWAT. Babe Ruth came into his glory days during the Roaring Twenties, and his manager was worried that he was blowing through all of his money without putting any of it away. He introduced Babe to an insurance agent from the Equitable Insurance company, now AXA Equitable. From 1923 to 1929, the slugger contributed more than half of his salary annually, purchasing between 35,050 thousand worth of annuities each year. The Great Depression hit the country hard. In October of 1929. Babe Ruth was forced to retire from baseball in 1935 due to health reasons. He was unemployed during the worst time in history, but Babe Ruth had his income annuity. It's been reported that he received an income of $17,500 a year, which would translate into an annual salary of more than 290,000 in today's dollars. His famous quote still resonates today. He said, I may take risks in life, but I will never risk my money. I use annuities and I never have to worry about my money. Steve Young. Steve Young was signed out of Brigham Young University into a $40 million contract with the USFL. That was the headline. At least in reality, Young was given an annuity that would pay out something like $40 million over the 50 years that followed.

Ford Stokes:
Given the fact that some players were not paid for playing in the final season or other seasons of the USFL, accepting the annuity appears to have been a genius move on the part of either young or his agent. The annuity payments have lasted longer than the league, and it's safe to say that he's made more money than probably anyone else involved with the league. To be fair, it couldn't have happened to a nicer guy. Even with a large signing bonus and salary, he continued to wear old jeans and drive a 19 year old Oldsmobile dynamic. In addition to outlasting the league, that annuity even outlasted the Oldsmobile car company with a staggering number of pro athletes going broke after they retire. It's refreshing to read stories about players who made smart financial choices. Shaquille O'Neal, one player who's used annuities to his advantage, is retired star Shaquille O'Neal. Over his 19 year career, he generated $292 million in total compensation. In retirement, he is projected to make as much as $1,000,000,000 from endorsements, even after his career is long over, thanks to a wise agent who made him put $1 million annually into annuities from his rookie year onward, Shaq lives off the income the annuity generates with his endorsement legacy for his children. Shaq scenario demonstrates how pro athletes and other prodigious earners can protect themselves against their own personal spending errors.

Ford Stokes:
Allen Iverson. Nba player Allen Iverson earned $200 million during his career, $155 Million in salary and 40 to $50 Million in endorsement deals. Iverson ended up going bankrupt because of his overly lavish lifestyle. In a December 2012 court filing, Iverson told the court that his monthly income was $62,500, but his expenses were 360,000. Luckily for Iverson, Reebok saved him from becoming destitute by paying him an annuity worth $2.3 million. In 2001, Iverson made a very smart decision that would ultimately save him. He signed a unique endorsement deal with Reebok. Not only will Reebok pay Iverson 800,000 a year for life, they set aside a $32 Million trust fund that he can begin accessing when he turns 55 years old in 2030. Since he divorced his wife in 2013, he will receive half of the trust. Another way that Iverson will be able to protect himself against future bankruptcy is his access to the NBA pension. He is eligible for another 8000 a month. The lump sum of this pension is between 1.5 and $1.8 Million. Most pensions are set up with single premium immediate annuities. Benjamin Franklin. When Benjamin Franklin died, he requested that the 2000 sterling he earned as the governor of Pennsylvania from 1785 to 1788 be divided equally between Boston and Pennsylvania. He wanted the money to be dispersed as a legacy. 200 years later, in the spring of 1990, the balance in the Philadelphia account was valued at approximately $2 million, and the balance in the Boston Trust was about $4.5 million.

Ford Stokes:
This was sometimes called Franklin's IRA. The money in the Boston Trust was invested using a new take on an old idea the annuity using a tax deferred index variety. The money was able to benefit from exposure to stock market growth without stock market loss. This allowed the trustees of the Franklin Institute in Boston to turn an estimated $4,400 into 4.5 million, even while it was paying out an income for 200 years. Beethoven, the social luminaries of Vienna, wanted to keep Ludwig von. Beethoven from leaving their country. And so in 1809, two princes and an Archduke Guarantee the musician a generous annuity. All he had to do was stay in Vienna and compose and perform his music. His benefactors have supposedly been quoted as saying something along the lines of only a man free of worries can create with such genius. Interestingly enough, Vienna also saw its time of economic downturn, and one of the annuities guarantors tried to stop paying Beethoven claiming financial hardship. Beethoven sued one and continued to receive his annuity payment. Perhaps this is what inspired the literary genius of Jane Austen, whose character Fanny observes in sense and sensibility. People always live forever when there is an annuity to be paid and annuity is serious business. It comes over and over every year and there is no getting rid of it.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it all could affect your future in retirement? Then tune in to your American retirement to learn how you can protect and grow your hard earned money. Your American retirement. Every Saturday at 1:00 pm, right here on 101.1 FM. The answer Protect your hard earned money today and schedule a free, no obligation consultation now at your American retirement.

Kale Simpson:
Hey, welcome back. Your American retirement sitcom one a 1.1 FM. The Answer to the Scale Simpson. Randy Sams. I'm glad you guys took the time out of your day to listen to us. Hopefully you've learned something today. I think we've talked about a lot of great things going on in the marketplace. I know we've talked about a lot of things that mean a lot to a lot of our listeners because you work your entire life to build up a nest egg for retirement. And the biggest thing that we hear, or at least one of the main things that we hear, Randy, all the time, is don't let some outside influences impact your retirement that you've worked on for your entire life. So don't let Nancy Pelosi going to Taiwan affect your retirement. Right. You work for 40 years. Why let something like that, some outside influence impact that we've talked about? How do fixed index annuities, the just perfect temperature porridge with the Goldilocks scenario, the Goldilocks and three bears that Randy talked about, why does that make sense? Why is why is that very popular today, one of the most popular financial instruments today? Why is it so popular, Randy? Why do why do 200% participation products with lifetime income and guaranteed to never lose money? Why does that make sense? Why do people like that? I mean, I think it pretty much speaks for itself.

Kale Simpson:
But guys, here in just a moment when when we wrap up, there's a segment out of out of our Annuity 360 book and something I want I want you guys to hear. And we picked it out and had our annuity 360 and your American retirement team working on this diligently to try to find out what famous people have invested in annuities over time. So I think you guys will be you'll be pleasantly surprised and may and maybe maybe by utterly surprised at who has owned annuities because like Randy said at the beginning of the segment or the beginning of the broadcast, annuities have been around for a long, long time. And a lot of people that we work with and a lot of very smart people own more than one annuity, right, Randy?

Randy Sams:
Several.

Kale Simpson:
So what we talked about beginning of the show, there's a very smart man. His name is Albert Einstein. We cannot confirm nor deny that he has ever invested money in annuity. We should if we do find out that he has money in annuity or had money in an annuity, we'll let you know next week. But again, we brought that up at the beginning of the broadcast. Randy, compound interest is the eighth wonder of the world. He who understands compound interest earns it. He who's the who he who does not pays it. And that is from Albert Einstein. But again, guys, go to the website, your American Retirement. We're on social media. We're on YouTube. Hit the button, subscribe, hit the like button. Share it with your friends and family. We help everybody. We're not in Arkansas. We're in most of the United States. We're going to be there if we need to get on a plane to come see you, let us know. We'll go get on and we'll go get on an airplane. It's like we told Sam, go, go see him in Atlanta. Go help some people out with retirement and go hit the golf ball. But Randy, before we wrap up, that's what I wanted everybody to know. We have resources, we have client info kits, we have folders, we've got literature that if you put your hands on one of our kits and take a chance to read over it, that's I mean, that's going to help you understand anything.

Kale Simpson:
And then if you want to expound on that information by giving us a phone call and picking our brains, please do. That's what we're here to do. Help you guys out. But Randy, to wrap up the show, I wanted to kind of throw it your way. You know, we've talked about famous people who have invested in annuities. We talked about Albert Einstein. We've talked about what SMG Financial in your American retirement can do for people that are getting close to retiring, people that are planning, people that are in the accumulation phase, and then people that are in the distribution phase which are taking money. You're going to talk about this in a second. I do. I will kind of preface it, but you can't go by the old 4% rule. And we'll talk about this next week, too. But you can't do that anymore. You've got to look at sequence of returns risk and you've got to be smart when you get into the retirement red zone. So, Randy, you get a couple of minutes to wrap up the show. Anything you want to talk about? Go ahead. I'm here if you need me. But I'm just I'm just going to sit back and relax and let you bring it home.

Randy Sams:
But I'm going to I want to kind of piggyback off what you just said about the 4% rule. I got something from one of our companies that we do business with. And to got to give folks an idea the 4% rule, again, I want to spend a lot of time on it, but the 4% rule was thought up many years ago by folks when they they wanted you to be able to retire and take a certain percentage of your retirement income. And that should be what you live off of and it should last until you pass away. Well, unfortunately, they didn't anticipate folks living to be 100 years old or 105 or 110 or 120. And as we all know, with medical advancements, with prescription drugs, people taking better care of themselves, people are living longer. And the 4% rule just does not work. And Gail, I read an article not too long ago. I believe that actually right now, if you want to be safe, it's like under three. Somewhere between two and a half, 3%. The indexed annuities work. They work for you. Give cail to call give myself a call. Randy Sams 8669907664. Your American Retirement. Set up an appointment again, folks. We appreciate your time this Saturday afternoon. Your American retirement again with Randy Sams, Mr. Kale Simpson, 101.1 FM. The answer. You all have a great Saturday.

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 your American retirement today that's your American retirement dot com not affiliated with the United States government. Randy Sams and Kale Simpson do 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 specific result. All copyrights and trademarks are the property of their respective owners. Amara Life 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. Fixed annuities, including multiyear guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

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