On this week’s show, Randy explains the six key tasks investors should complete when preparing for retirement. Plus, he discusses the meaning of “Peak 65” and how it can affect Social Security in 2024.

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Contact Randy Sams & SMMG Financial at (866) 990-7664

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

Speaker1:
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.

Speaker2:
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. Well, hello again, central Arkansas. Want to welcome you to your American retirement. My name is Randy Sams. I hope you're having a fantastic Saturday morning. I want to thank you all for joining me again on this Saturday. We've got another jam packed show, an exciting show, folks. You know, we're going to talk about, uh, we talk about retirement. We talk about, uh, issues that come up in retirement when you guys give us a call. But listen, don't forget to also check our check out the show on podcast. You can, uh, whatever podcast form you can do Apple, Google, Spotify, wherever you get your podcast, whatever your favorite vendor is or provider is. Also, you can visit our YouTube page, You know Where You Go, youtube.com and search your American Retirement. And you can listen to, uh, YouTube is a little bit different because what we do on YouTube, we have a short segment of the show just to kind of get you interested and say, hey, I like to know more. Then you can either go with a podcast provider or you can go to the website, Your American retirement.com, and you can listen to today's show in its entirety, or you can listen to any show that we've had previously had over the past two years.

Speaker2:
But listen, we want to give a shout out to all my listeners in the Central Arkansas, Benton, Bryant, North Little Rock. Hey, thank you all for joining us. I appreciate all the phone calls that I've gotten over the last couple of weeks. You know, we're going to talk a little bit today about, uh, Tax Day. Uh, because as a reminder, for all our retirees, you know, you if you haven't already, you have to file by April the 15th. Monday is tax day, Monday, April for the 15th. Today is Saturday. We're cutting it short, folks. I hope you have, uh, taken care of those taxes. You consulted with a tax professional, and you file your taxes on time. Remember, you can, uh, you can file for an extension, but you still have to send in that money. You know, that's what they want that money to make to make sure you got it. But folks, listen at today's show. We're going to talk about building a roadmap for your retirement. Navigating common obstacles as you approach your golden years. Folks, this fits right in with what Qmg financial your American Retirement is all about. Because you know, if you've listened before, we are focused on addressing the major financial issues facing retirees and pre-retirees in America today by helping people like our listeners understand and prepare for a secure retirement, not a risky retirement.

Speaker2:
And that's what we're going to talk about today. And that's what we do at Qmg. So, folks, look, please don't hesitate to contact us. Reach out with all your questions. You know, you can call us anytime that you want to. (866) 990-7664 is the toll free number (866) 990-7664. Or go to the website Your American retirement.com. Leave us your contact information. Leave us any questions or concerns. I get a lot of suggestions as far as Randy. This is something that has come up. I wasn't anticipating, uh, in my retirement. Can you maybe do some research and then talk about it on the show? And that's what we love to, uh, to do. So. Overview on today's show. Are you approaching retirement? Those of you who are getting close, we're going to share six step checklist to help you prepare for retirement. For unseen icebergs that could sink your retirement plan. Is your retirement plan? Did you ticket it on the Titanic, or have you ticketed that retirement plan for a luxury secure retirement cruise? And why it pays to have a plan? And lastly, have you heard from your advisor lately? Those are some of the subjects we're going to talk about today. But, you know. We cannot start the show without the financial quote of the week. Financial wisdom quote of the week. So, Mr. Jim, if you'll play that music, please, we'll get right into the quote.

Speaker3:
And now for some financial wisdom. It's time for the quote of the week.

Speaker2:
All right. Thank you. Financial wisdom quote of the week comes from Mr. Jim George. And it is. It's not how you start that's important, but how well you finish. Now, I've heard that before. I think that's sometimes I've heard that in sports lingo somewhere before. But anyway, it's not how you start that's important, but how well you finish. So. Hey. Let us help you finish. Well, that's what we're all about at SMG. A safe. And a happy and a secure retirement. Not a risky retirement. All right. So let's get right into it. Six key tasks for investors approaching retirement. So if you're getting close to retirement you're five years. You're ten years. However far out it might be. Take notes. Listen to this. And if you're in retirement right now. Look back and see. Hey, did I do this? Is there still time for me to do this, or is it something I should do right now? So six key tasks for investors approaching retirement. Because many individuals approaching retirement, as you know, have come to us seeking guidance on their plans for retirement and how to make the most of their hard earned savings secure retirement, not a risky retirement. So this checklist that we're going to go over, for those of you who are approaching retirement, especially for you all, and want to give yourself the best chance of success, secure retirement, happy retirement. Remember, folks, you're listening to me today. People are living longer than ever before, so you may be retired almost as long as you spent working.

Speaker2:
Now, you all have heard me say this before. We'll talk about this just a little bit. We always go over the retirement red zone. What is the retirement red zone? Well, that's the 5 to 10 years before you retire and the 5 to 10 years after you retire. What happens to your retirement funds during that period of time, whether it be a 401 K or an IRA or 403 B, whatever you have as far as your retirement money is concerned, what happens during that 5 to 10 years before you retire, and that what happens during your retirement, the first 5 to 10 years after retirement, that has a large a huge bearing on how well you're going to enjoy and how secure you're going to feel during retirement. And we'll talk about that a little bit, because, listen, the most critical time to avoid market volatility is that 5 to 10 years before retirement and the 5 to 10 years after retirement. And you all know that that's what I refer to as the retirement red zone. So listen to this. Here's step number one in invest in your human capital by continuing to work while improving your skills and knowledge. It's never a bad idea to add a new skill. So invest in your human capital by continuing to work while improving your skills and knowledge. So it's never a bad idea to add a new skill in the final years of your career, you are likely making more income than ever before.

Speaker2:
And Mr. Dave Ramsey, some of you all have heard of him before, says that your income is your greatest wealth generator, so take advantage during your final decade before retirement that ten year before retirement. Take advantage of yourself. Improve your skills. A lot of people don't just want to retire, they want to relaunch. Meaning explore pursuing an encore career. What do you want to do after you retire? If you want to work, that's great. I think that's fantastic. It keeps you active. A lot of y'all heard me talk about my mom. She's still running around. She still works three days a week. I'm not going to tell you what her age is, because if she's listening, she'd get mad at me for, uh, divulging that secret. But she is a go getter. She still likes to mow the grass. Uh, I have to get her off the ladder to clean out the gutters. She likes to do that. But anyway, she likes that work. It keeps her active. And she has her friends that she gets to see three days a week and continue that conversation with them while she's at home. But anyway, you see, it's more fulfilling and less demanding on that, on that encore career, which can provide additional income. That's why most people do it and reduce the need for portfolio withdrawals in retirement. Okay, now, folks, some of the things that I've run into, all this talking about the encore career.

Speaker4:
Yeah.

Speaker2:
A lot of times what happens during that retirement red zone if you have your money in a risky investment? I say within that 5 to 10 year period and your 401 K balance drops by 20 or 30%, what options do you have? Number one option is you're either going to have to not retire when you planned on, and continue to work to build that 401 K balance back up, or number two option. If you retire at the same age that you figured out you're going to retire on less money than what you originally planned on. So I am all for people continuing to work or finding that encore career once you hit retirement, as long as it's something that you choose to do. What I don't want to see happen is you get into retirement and you have to take that encore career, or that second job, or that first job, another job just to make ends work meet and pay for those basic expenses. So, folks, listen, y'all come right back because we're going to talk about the other five steps in investor approaching retirement.

Speaker3:
Thanks for listening to your American retirement. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes. Seven. Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (500) 124-9234 three. That's (501) 249-2343. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio. Visit your American retirement. Com to schedule a free consultation with Randy today. And now back to the show.

Speaker2:
All right folks, welcome back to your American retirement on one on 1.1 FM. The answer where little Rock comes to talk. Don't forget to check out our YouTube page, visit youtube.com and search your American Retirement. All right. Number two. Step number two. Key task. When approaching retirement, have a game plan for your Social Security benefits. Now guys this is important. Consider working longer and delay filing for Social Security to increase your eventual benefit okay. Your final benefit amount is based on your top 35 years earning. So your top 35 earning years. And how long you chose to delay beyond full retirement. So if by chance you have some zeros in that top 35 years, if you work each year that you work, that zero drops off and that income replaces that zero, okay. Which means what? Which means that your Social Security benefit will go up. So you need to collaborate with your spouse, talk it over with your husband or your wife, and consult with a licensed professional to develop a social security strategy that maximizes total lifetime benefits for both individuals. So, folks, are you planning on taking Social Security at age 62, or are you going to wait till your full retirement age, which might be 67? Or do you want to maximize max it out to the full and wait till age 70? See, those are things that we have to talk about. Because once you realize if you take your Social Security at age 62, that amount you're getting at age 62 is going to be the same amount.

Speaker2:
You're going to get age 72, the same amount you'll get at age 82, and the same amount you're going to get at 92. All right. Now, that may not seem like a big deal, but 20 or 30 years down the road is that thousand dollars a month you're getting now because you turned it on at age 62. What's it actually going to be able to buy for you? What's the purchasing power of that thousand dollars today in 20 years that in in two years, in five years, in ten years. Think about it. So the longer you can wait. And again, this is me speaking. This is what I believe. Then I've helped a lot of people get from that 62 to 67. They didn't want to wait. But what we did is we did a Social Security bridge. And how that works is we took some of their 401 K money, put it in a five year annuity and immediate annuity, and that gave them that income, that same income that they would have gotten from turning Social Security on during that five year period. So they didn't really lose anything. But at the end of that five years, there were now 67 years of age. And they could wait. They waited till their full retirement age, and that gave them a boost of 25 to 30% more on their Social Security benefit. So there's ways that we can work together if you'll get in contact with it. Because, see, folks, a lot of people that we talk with, they are they have this question, say, Randy, I'm concerned about Social Security.

Speaker2:
You see, we understand that many of you are worried about future cuts to Social Security, and we'll talk about that. It's going to affect. Your retirement. We want to provide you with a Social Security maximization plan customized for you and with you and your spouse. But we have to get together and have that consultation to talk about. So please give us a call (866) 990-7664 or contact us on our website. Your American retirement. Com to take advantage of the complimentary offer today. And let us sit down and talk to you, our listeners, about your Social Security options. All right. And this is why it's so important social security finances are under pressure. Why are they under pressure? Randy. Good question. Because beneficiaries are living longer, meaning the program pays recipients over a longer period of time. They never planned Social Security to be paying people that were in their 80s, mid 80s, 90s, mid 90s. A hundred years. Okay, because listen to this. Approximately 10,000 baby boomers now this year 2024 is actually known as peak 65, which means that the number of baby boomers turning 65 every day has jumped up from 10,000 to 12,000 per day. And those are baby boomers retiring every day, meaning the number of workers or the share of workers paying into the system via payroll taxes has been falling relative to the number of beneficiaries, creating an imbalance. Now, what that means is when Social Security first started, there were like ten people working for every one beneficiary, one person retiring and getting their Social Security.

Speaker2:
All right. Right now that number has fallen to about 2 to 3. I think it's maybe three right now for every retiree. There's three people working. So you can see where the stress is. You've got 12,000 baby boomers turning 65 every day now for about the next year and a half, known as peak 65. So as a result, without any action from lawmakers, the Old Age and Survivors Insurance Trust Fund that supports Social Security benefits for retirees. Listen to this is estimated to run dry in 2033. Only about 77% of promised benefits would be payable if the trust fund runs out of money, according to the SSA. So listen to this if this were to occur. If they had to drop your benefits by 23%, 25%, what effect would that have on your retirement income, especially if you took your retirement at age 62? So instead of it being $1,000 a month at age 62, and it drops down to $770 a month, and that happens in 2033, which is less than ten years from now. You're making less money and you know it's going to cost more ten years from now. Something to think about. That's why you need to plan. So it's time to get serious in 2024. This is an election year. And there's already so much uncertainty in this world that we live in today, affecting. Our listeners, our clients, retirees, and pre-retirees.

Speaker2:
So please don't. Please don't wait. Please don't hesitate. When you're ready to start planning, you give us a call. Please don't wait until you're ready to get to do that. Okay? We need to have that 5 to 10 year window to take care of that. Alright, let's jump into number three, maintain your safety net, continue to maintain A and fortify and adequate emergency fund. So we recommend saving at least six months of living expenses. That would be my minimum is six months to provide a financial safety net and avoid having to make premature withdrawals from your retirement savings. You guys remember the years of Covid, and there were a lot of people that weren't able to go to work, so a lot of people lost their jobs and there was a lot of stress because a lot of people did not have an emergency fund that would last that long. Some people were off of work for two months, three months, six months. And you can imagine the stress when you've got your basic expenses. If you've got mortgage, you've got to buy groceries, you've got to pay your utility bills, but you don't have six months worth of savings for in a in an emergency fund to take care of those. All right. What happens if your washing machine breaks down and you got to get a new washing machine, or the transmission in your car falls off as you're going down the street? See, those are things that you have to have an emergency fund to where it won't affect your retirement savings.

Speaker2:
Don't take it out of the 401 K or your IRA or whatever. And listen to this. This is a biggie. Consider long term care insurance options and develop a plan for potential long term care needs. Now, folks, this is very, very important because as you get older, you know, we don't stay as healthy as we age. And if you think that long term care insurance is expensive, just consider how expensive long term care is. So listen. What is long term care and how much does it cost? Now, a lot of y'all that are listening today will probably the majority of you out there. You have homeowner's insurance. If you own a home, you're required to have homeowner's insurance if you have a mortgage. Y'all have that. But the likelihood of you actually having a claim like a fire or something like that is very low. You all have automobile insurance, even if it's just liability. The likelihood of you actually having an automobile claim is very low. But listen to this at least 70% of people 65 years and older will need long term care services at some point in their lives. I'm going to repeat that at least 70% of people 65 and older will need long term care services at some point in their lives, and the cost of long term care depends on three factors the kind and the length of care needed, the provider chosen, and the location. So just to give you a couple of examples, monthly average rate of long term care services in the United States.

Speaker2:
The average the monthly average rate for a nursing home care is $6,600. For assisted living facility is $3,600. If you're lucky enough to be able to stay home and you have a plan that will pay for it, or if you don't and you want to stay home instead of going to a nursing home for a home, health care services is $3,520. So folks, you can see why health is something your health insurance, long term care is something that we have to pay attention to when we're putting together a retirement plan. Now. I hope y'all are all in that 30% bracket. That's never going to need long term care, but the odds are 70% of the people that are listening today, 65 years and older, will need some type of long term care during their retirement. That's why it's very important to make sure. Do you want to be that burden on your family? Is it going to be your spouse? Is going to be your main carrier or your caretaker, or is it going to be a family member? That's why we have to address the long term care. So folks, look, we've still got 4 or 5 and six to talk about. So I appreciate you hanging in on me. But these next three are going to be very important for you to also add to your checklist. Alright. So we're going to be right back. Thanks for listening.

Speaker3:
You're listening to your American Retirement. To schedule your free no obligation consultation, visit your American retirement.com.

You can do.

Speaker3:
Fixed indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's peak ten can help protect against market risk and provide guaranteed income for life. Peak ten also has an optional rider that offers an immediate 20% bonus based on your principal. Apply to your income benefit base. Call us now at (501) 249-2343. That's (501) 249-2343. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio.

Speaker1:
So you know where you are now and where you want to be in retirement. So how do you plan to get there? I'm Matt McClure with the Retirement Radio Network, powered by Amira Life.

Speaker5:
Do you have any other questions for me?

Speaker1:
Counselor, there are a lot of questions to ask yourself when you start your retirement plan. Questions like when should I retire? How much money will I need? When should I claim Social Security? What about health care costs and taxes in retirement? This complicated puzzle means you're probably going to need some help coming up with a smart retirement plan.

Speaker4:
If you want to retire successfully, you really need to plan early. You know inspectorj you expect and get prepared. Putting a plan in place now while you're still working is a great idea.

Speaker1:
Fort Stokes is founder and president of Active Wealth Management. Once you find a financial professional you want to work with, they can help you answer all the questions you may have.

Speaker4:
Back to what Warren Buffett said, if you don't find a way to make money while you sleep, you're going to work until you die. So we need to do everything we can to figure out a way to make money while we're sleeping. We talk about this human capital versus actual capital. When you're young, you have a lot of human capital. You've got a lot of left, a lot of room left, a lot of capital left in your career. Right? But at the same time, a lot of people that are older, let's say you're 65, 70 years old, you don't have a lot of human capital left, but you should have a lot of capital that is making money while you sleep. And if you don't, then you didn't make the right decisions.

Speaker1:
There are also some retirement costs you may not have considered yet. Long term care. For example, did you know it's not covered by Medicare? What about home renovations? If you decide to stay in your home instead of moving into a facility, your home might need some updates to ensure you're safe and comfortable. And those are just the tip of the iceberg. So do you have a fiduciary, financial advisor, or professional to help you wade through the complicated retirement planning process? That is a key question to consider if you want to make the most of your hard earned money with a retirement radio network powered by Amira life, I'm Matt McClure.

Speaker3:
Are you interested in ways to protect and grow your hard earned money? Your American retirement is here to help. Here's Randy Sams.

Speaker2:
Hey, thanks for joining us on this week's edition of Your American Retirement. Please be sure to check us out on the podcast version of the show on Apple, Google, Spotify, or wherever you get your podcast. All right, folks, let's jump right into number four, number five, and number six as far as the steps that you need to look at it while you're approaching retirement. Number four, schedule a checkup for your portfolio. Very important. You need to consult with a licensed professional who can review your plan and portfolio structure, even if you have been managing your investments independently. Now that's kind of scary. Now I've got some people out there that they do this. They like to call themselves day traders and they've done pretty well, but yet they've also done pretty badly sometimes. But you need to consult a licensed professional to help you review that plan. Take comfort in the fact that there is a potential shortfall in your retirement savings. If there is a potential shortfall in your retirement, savings makes a big difference, doesn't it? So you still have time to make adjustments. You've got to increase your savings and explore your options. So folks, remember 5 to 10 years before retirement, 5 to 10 years after retirement, that retirement red zone. So now's the time to get started. Remember, it's not how you start, it's how you finish. And we want to make sure that you guys finish well with a secure and a happy retirement, not a risky retirement.

Speaker2:
Step number five sprint to the finish and maximize your savings. So take advantage of an empty nest transition by redirecting your savings efforts towards retirement. Or if you've got a child that's, uh, you've been paying for college room and board. I know it's more expensive now than it was five years ago or ten years ago, but if they're just graduated college and they can go out and get that job, just think of the money. That's if you've been paying for that or assisting, paying for that, helping them out with their college expenses. You just got yourself a raise, didn't you? But take advantage of that. So as people near retirement, we find they are earning more income than ever before in their careers. You guys know that there's a lot of times in corporations what they'll do is as we get older and, uh, we have moved up the corporate ladder and you're making more money than someone who had an entry level as they're just starting. All right. A lot of times you'll see companies offer the older folks, the more experienced folks, what are they going to offer them? They offer them that retirement package, an early retirement package. Why? Because they feel like that they can bring in someone younger. And start them out at a lower income, a lower salary versus those who might have been there 15 years, 20, 25, 30 years.

Speaker2:
And it's time for them to sell off into the sunset or right into the horizon. So consider saving a significant portion of your income, aiming for 30% if possible in the years leading up to retirement to bolster your retirement portfolio. So, folks, you need to start socking that money away. Put in as much as you possibly can if you're 50 or above, remember. We're going to talk about it here just a little bit. But you if you're 50 and above. You can add called the catch up contribution, you can add an additional $7,500 to your 401 K or your IRA. Believe me, that's $7,500 over a ten year period. You do the math. That's 75,000. But if it's invested correctly and you get the use of that, you get the use of compound interest, that's 75,000 just all by itself could turn into 100,000 or 125,000 because of compound interest right over that ten year period. So take advantage of it and put as much into your retirement plan during those final years as you possibly can. Prioritize tax sheltered vehicles like IRAs and 401 K's and take advantage of the catch up contributions. Just what I said that are available to individuals over the age of 50. So believe me, it's going to make a difference if you can. The maximum for 401 K.

Speaker2:
Contribution is 23,000, but they're given you if you're age 50 and above, they're given you the ability to put in an additional 7500, which means you could between age 50 and 60. And you can continue that on. I'm just using that as an example. But that ten year period, if you maxed out using that catch up contribution, that's $30,500 a year over ten years puts you at over 300,000 without any additional growth, puts you at over 300,000 in your 401 K or IRA. And believe me, I know there's a lot of people out there listening to me today that would love to have a 401 K balance or an IRA balance of 300,000 plus. You got to work on it. All right, all right. Step number six. Protect your savings from sequence of returns risk. Now, folks, this is where the retirement red zone really comes into play. As retirement approaches, gradually shift a portion of your investment portfolio towards safer investments to mitigate sequence of returned risk. Folks, this is where you've heard me talk about the rule of 100. Randy, what is the rule of 100? Well, here it is. Take your age today. Subtract that from 100 and whatever you have, if you're 65, that leaves 35. That means that you should have no more than 35% of your retirement investment in the risky equities, then the stock market, whatever it might be. So you should have 65% in what I call safe money and 35% no more than 35% in more risky money.

Speaker2:
If you're 75, you do the math. 75 safe money, 25 more risky. All right. That's the rule of 100. So holding assets in safer securities can help protect your portfolio from potential market downturns early in your retirement years, when your portfolio value is at its highest. So, folks, let's remember the example. 5 to 10 years before retirement. You've got a window. You've got a target and a target age that you want to retire in or at. And something happens to the stock market. Big example 2008. You could look back at 2020 okay. Let 2122 it felt like 2025 30%. If that happens to your retirement fund again before you get to retirement, what have you got to do? Your options are continued to work longer. Or you're going to retire at a lesser amount than what you originally planned. If that happens after retirement. Sequence of returns and your retirement funds, you're taking money out because remember. When you retire, you're no longer making contributions. This is this is called. It's not an accumulation. It's a de accumulation, which means you're taking money out. And at the same time, while you're taking money out, if your account value is dropping because of market, because of returns are low or negative, that will have a devastating effect on your ability to outlive your money.

Speaker2:
Okay. Because remember, one of the things that we've said at SMC, financial longevity risk is one of the number one, is the number one risk that we want to consider, that we want to attack, because we want you to be able to say, hey, I've got my retirement plan set up to where my retirement account is not going to hit zero before my blood pressure does, or my blood pressure will hit zero before my retirement account does that makes sense? In other words, there's no way that you can outlive your retirement account because we're going to set you up with guaranteed lifetime income. Alright, so now final with interest rates as high as they are today. Safer investments still offer significant return potential. Folks, I have multi year guaranteed annuities. These are uh. For those of you who may not know what a Miga Miga is, that's a multi year guaranteed annuity. We have those that are approaching 6% guaranteed somewhere between five and a half to 6%, depending on what company and what length of time we put the funds in there. That's a great return on your money and it's safe. I have a lot of people that are using those migas right now. They're putting money in, and we put them into a manga that allows them to take the interest payments as an income. The good thing is, if we set that up over the next ten years, you're able to take that interest payment guaranteed at, let's say, 5.6% for the next ten years.

Speaker2:
Whatever your investment is at the end of ten years is still waiting for you. So if you started out with 250,000, you've taken that interest payment every month over that ten year period. At the end of ten years, guess what? You still have your original 250,000 sitting there. Folks. It doesn't get any safer than that. Okay? But we have to be able to get together. If you've got questions on some of these that we just went over, please contact us this week (866) 990-7664 or visit our website, Your American retirement.com and schedule your complimentary consultation and 401 k slash IRA reviews. Folks, let's recap very quickly the six steps you should take as you approach retirement. Use your human capital by continuing to work and adding skills. Determine your social security strategy and maximize your future payout. Maintain your safety net emergency fund. Schedule a checkup for your portfolio. Call us today. Sprint to the finish and maximize your savings and take advantage of catch up contributions if you're 50 and older. And lastly, protect your hard earned money from sequence of returns. Risk, protect and grow your wealth. Hey, don't go away. We're going to be right back. We're going to talk about the four unseen icebergs that could sink your retirement.

Speaker3:
Miss, part of today's show, Your American Retirement, is available wherever you listen to podcasts and online at your American retirement.com.

One of these crazy old nights.

Speaker1:
Why do annuities get a bad rap? Experts say it boils down to the risks involved with just one type variable annuities. I'm Matt McClure with the Retirement Radio Network powered by Amara Life. Unlike other annuity products such as fixed, fixed, indexed or multiyear guaranteed annuities, variable annuities put your principal at risk in the market. That's why Ford Stokes, author of the book annuity 360, often refers to them as scary able annuities.

Speaker4:
This type of annuity includes an investment feature managed by mutual fund managers. Because the funds are exposed to the stock market, they are exposed to higher risk, which means they carry the potential for substantial losses, Ford says.

Speaker1:
Two things determine the value of your variable annuity the principal, which is the money you put into the annuity, and the returns the underlying investments earn over time. But be careful.

Speaker4:
Variable annuities are tied to specific investments, which is a double edged sword for most investors. There is the possibility of impressive growth. Also a very real danger of major losses, including your principal bottom line.

Speaker1:
Ford says he does not recommend variable annuities for any of the clients in his investment advisory business. He says a much better option is the fixed indexed annuity.

Speaker4:
A fixed indexed annuity gives you a portion of market like gains. Without market risk, your investment is tied to an index but not directly invested in it.

Speaker1:
And he says that provides an annuity product that fits the Goldilocks definition. Not too hot, not too cold, but just right. So are you ready for market like gains without the market risk for a portion of your retirement plan? Well, that's a key question to consider as you weigh the options for your future with the Retirement Radio Network. Powered by a mirror life. I'm Matt McClure. 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.

Speaker3:
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 p.m. 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.com. Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (500) 124-9234 three. That's (500) 124-9234 three. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio. Like what you're hearing. You can watch the show to visit youtube.com and search your American Retirement to watch clips from this program.

Speaker2:
Well, you're listening to your American retirement. Join us every Saturday at 10 a.m. and Sunday at 2 p.m., right here on 101.1 FM. The answer where little Rock comes to talk. Alright folks, again, y'all just heard me. You all know that we are now on on Sunday afternoons at 2:00. So tell all your friends and family that if you miss our Sunday Saturday morning show that your American retirement is also on Sunday afternoon at 2:00, right? For unseen icebergs that could sink, your retirement plan is your retirement plan. Did you get ticketed on the Titanic or are you ticketed on a luxury retirement cruise? A secure cruise? Because remember this week in history, folks? April 15th, 1912 British luxury passenger ship the Titanic sank on its way to New York City from England after colliding with an iceberg. Iceberg number one stock market volatility during the accumulation phase, the stock market can help build wealth for retirement, but as retirement approaches, protecting your savings should become a priority. How many times have we talked about on today's show that retirement red zone, the 5 to 10 years before retirement, 5 to 10 years after you've retired? You see, diversification can also help mitigate the impact of market downturns. Folks. That's why I love annuities so much, because one of the things that an annuity addresses for you and me, for those of us getting close to retirement or those of us who are in retirement, is it takes the volatility of the stock market away.

Speaker2:
You're never going to see a huge jump of 2,025% with most of your annuities out there. I don't do variable annuities. All right. Because a variable annuity is still tied to the stock market. What goes up can also go down. We like to use indexed annuities or guaranteed interest rate annuities where it takes that volatility off the table. Retirement income tip you can reduce the risk in your portfolio and establish a personal pension that creates a lifetime income with one simple strategy, and that is called a guaranteed lifetime income annuity. Folks, I'm a big believer in it. You know, if you've listened to this show, you don't retire on assets. You retire on income. I have yet to meet with someone, whether they're getting close to retirement or they've been in retirement. They're more concerned about their income that they're going to be able to have during retirement than they are assets, folks. Assets can be lost. We have tornadoes here in Arkansas. They have hurricanes, you know, on the, uh, East Coast. You've got what, earthquakes out in California. It didn't matter where you're at. Assets can be lost. Something could happen to your house. Divorces happen, and you lose half of everything you had about trying to get negative. But I'm trying to make you realize that right now is the best time to take advantage of it. I love meeting with people that have 10 to 12 years before retirement. And you say, well, that's a large window. Yeah it is.

Speaker2:
You know why? Because with today's products that we deal with that I have to offer, we have annuities that give us a guaranteed 8% compound interest for ten years. Now, what does that mean? That means if you start out today with 200,000, you do the math and compound that interest every year for the next ten years. Your 200,000 is guaranteed at the end of ten years to be well over 400,000. So it's more than going to double during that ten year period. So wouldn't that be nice to know that you got 200,000 out of A41K, put it into a guaranteed lifetime income annuity that in ten years, if that's when your target retirement date is, you can turn on that income switch and will be based on a guaranteed amount of $400,000 plus waiting on you. That's why I like them. Okay, if you'd like to explore that personal pension. In other words, if you're working at an employer or a job right now that does not offer a pension, we can set one up with that guaranteed lifetime income annuity for yourself and your spouse. Because remember. You can maximize your retirement income potential by just giving us a call (866) 990-7664 or visit the website Your American retirement.com and get in touch with us so we can help you set up your own personal pension. All right. Iceberg number two. Taxes. Oh, man. Didn't we talk about April 15th? A couple of days from now? Those taxes are due. For those of you who, uh, like to procrastinate.

Speaker2:
And maybe you've got today, tomorrow and Monday to take care of those taxes. Get them in gear, folks. But iceberg number two is taxes. So we find that most people believe taxes are going to increase. I'm in that group. Now and in the future, while at the same time they have little to no money in their tax free bucket. The words of everything that you have right now, is it going to be taxed? Do you have any tax free income coming in? Do you have a Roth program set up a Roth IRA? Do you know what a Roth conversion is? That's why you need to get in contact with us. Alright. Medicare beneficiaries with high income may face additional monthly surcharges. Now, this is something to think about if you're getting close to retirement when you want to turn on your Medicare benefits. Medicare Part B and I'm not going to go down too far on this, uh, rabbit trail, but Medicare Part B has a monthly premium. Right now it's I think it's 170 something dollars a month. All right. But if you were lucky during the last few years of your employment, you made a whole lot of money. That part B monthly premium is going to be more expensive, and the more money that you made over those last few years of retirement, the higher amount you're going to pay every month for that part B premium. Something to think about. See, something needs to be planned.

Speaker2:
All right. So. Strategies like converting savings to a Roth IRA can help lower your future tax burden. So folks, we do a lot of Roth conversions. Meaning? If you want to have a portion of your income in retirement to be tax free, we can take your 401 K balance right now or take a portion of your 401 K. Put that into a ten year annuity that allows us to take 10% out over the next ten years and do and set up a Roth conversion, meaning that every year over the next ten years, we're going to take 10% out of that annuity and move that over to the Roth conversion. Pay the taxes that are due on that 10%. So if it's 200,000, we move 10% is 20,000. You pay the taxes on that 20,000. Boom. And it continues to grow. And at the end of ten years, we've converted what was known as a qualified plan to now a tax free or a non qualified plan because taxes have already been paid. And if you want to take that money out. On a monthly basis or just let it grow. It's going to grow tax free. You can't beat it. All right. Fantastic. Number three iceberg Long-Term Care costs. We talked about this earlier. Long term care expenses can significantly impact retirement savings. Again, the average cost for a nursing home facility today $6,600. If you want to stay home and you're lucky enough to have a plan or a family member, those costs are about $3,650.

Speaker2:
So you can see where it's very, very important that we have some type of long term care. Because, folks, the average annual cost for home health care, assisted living and nursing homes are increasing as we speak today, and inflation is having a greater impact in the areas of medicine and health care. The right long term care insurance policy could save you a significant amount of money in retirement. Now, let me give you an example of what I do now. There are long term care plans out there, and there are people that may be listening that sell them. And it's your traditional health plan. All right. You start out at a certain age, you have monthly premiums, and you get to choose what benefits you want. And as you get older, those monthly premiums go up. I've dealt with too many clients to where they're getting to a point where that monthly premium is getting to be a burden for them financially, but they paid on it for so many years now, what are they going to do? They can't just let it go, but sometimes they have to make a decision. Okay? I like a plan and this is what I use. I use a plan. It's an annuity. It's a long term care annuity to where the company that I utilize will give you whatever your initial investment is. If it's $100,000 you qualify for for a few health questions that give you either 2 to 3 times that benefit to use towards long term care, it's a fantastic plan.

Speaker2:
It's an annuity. See, the good thing about it is, is that if you don't ever have to use it, it's an annuity and it has grown, but it's set up for a long term care plan. You need to get in contact with us. And let me tell you a little bit more about that. But let's get iceberg number four. It's the number one retirement risk and that is longevity. Retirement can last 2 to 3 decades requiring careful management of savings. Folks were living longer. You got to have a plan. Maximizing guaranteed income. Sources like Social Security and pensions are important. Top concern of retirees today is outliving their savings. So if your plan is ticketed on the Titanic or it's sinking, or are you relaxing on the luxury secure retirement cruise set up by Qmg financial folks? That's where we want to. We want to see you take charge of your retirement and financial future today. As loyal listeners, you know we are offering you an opportunity to schedule a complimentary retirement with our expert plan, our expert team. So, folks, listen, I want to thank you for listening to your American Retirement Today show. If you missed any part of it, you go back into podcast archives on Apple, Google, Spotify, or whichever platform you get your podcast. Listen, I want you to go out and make it a fantastic Saturday. Sunday, great weekend. Have a great week. God bless. Go Haugs. We'll talk next weekend.

Speaker1:
Thanks for listening to your American retirement. You deserve to work with experienced, licensed financial insurance professionals who can offer sound strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit your American retirement.com today. That's your American retirement.com, 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 specific result. All copyrights and trademarks are the property of their respective owners. A mirror 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 the results obtained from the use of this information.

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