Randy explains how recent inflation numbers could affect your Thanksgiving holiday. Plus, Americans are living longer and Randy answers the question of how retirees are going to pay for it.
Randy is here to serve as your trusted guide for all things retirement!
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11.17.23: Audio automatically transcribed by Sonix
11.17.23: 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. I want to welcome you to your American retirement. My name is Randy Sams. I want to thank you for joining me on this Saturday morning. I want to give a shout out to all my listeners in Benton Bryant, Haskell, Sardis, Alexander, all my Saline County friends, and of course, Central Arkansas. But hey, we've got a jam packed show on tap for you this Saturday morning. I hope you've had your cup of coffee, or two cups of coffee or whatever it takes to get you going this morning. And hey, don't forget to check out the show on podcast form on Apple, Google, Spotify, or wherever you get your podcasts and remember. Visit us at your to our YouTube channel. You know where you to go YouTube.com and search for your American retirement. So folks again podcast. You want to listen to the whole show? We can listen to previous episodes on the website. You can go to your American retirement.com, or again, your favorite podcast app or the YouTube channel so you can check out our videos and subscribe to watch weekly highlights.
Speaker2:
So folks on our YouTube channel, we don't have the entire show. We just have a little snippets of what we feel like are some of the most important, um, subjects that we talk about. Hopefully it'll be enough to get your interest up, and then you'll go to the website or go to your pod, listen to the podcast. Okay. But again, you go to. Youtube.com and search for your American retirement and you'll be finding my smiling face on there. Okay, so don't hesitate to call us with your questions, your concerns, what it is that keeps you up at night. You're in retirement. What are you concerned about right now? You're getting close to retirement. You can see the light at the end of the tunnel. What is it that you're concerned about right now? We'd love to hear from you. And we love helping our listeners remember, we want to get you prepared and educated for a safe and a secure retirement, not a risky retirement. So again, you can call us (866) 990-7664 or go to the website Your American retirement.com. So folks, just a little bit of background people want to ask. And I haven't talked about this in a while, but I like this I got this from, uh, Mister Tom Hegna. Tom Hegna is a, uh, very well known economist. He's been in the insurance business for a long time. Uh, was actually in sales for a long time, I believe he worked for New York.
Speaker2:
Life was a New York life agent. He is an economist, but he no longer is in sales. He's more about training and getting agents and and retirement planners and financial planners basically educated on what they need to be able to do for their clients. And also he puts on seminars for clients as well. So one of the things that I like, and I've taken a lot of notes from some of his seminars that I've, uh, been in attendance at, what we do at Qmg Financial is we want to prepare you for the three distinct phases of retirement. Okay. So we want to help baby boomers never run out of money. We want you to enjoy your latter years. So a happy retirement. So a lot of folks think that retirement is 30 to 40 years of just golf, tennis, travel, you know, line dancing, going on cruises. That's not true. There are three phases of retirement. The first phase is the go go years. That's when you're going. You just retire. Every day is Saturday. Every hour is happy hour. You're going on cruises, you're playing pickleball. You're golfing, you're doing whatever you want to do. Those are the go go years. We want you to enjoy those go go years and not have to worry about, am I spending too much money? The second phase is the slow go years. So you can still do everything you did in the go go years.
Speaker2:
You just don't want to. Okay, so you don't go out after 530 because. You might not be able to see well after dark. And you know right now, guess what? The time fell back. And now it's getting dark by 5:00 530. See, I'm not a big fan of this time because of the fact that, you know, when I come around the corner and it's like dark at five, 530, it kind of makes me feel like it's midnight and I should already be in bed. But so the go go years number one, the slow go years number two. And the third phase is the no go years. The no go year is when you're probably not leaving the building. Until you're leaving. Leaving the building, if you know what I mean. Okay, so go. Go years slow. Go years. No go years, folks. Those are the three phases that we at Qmg Financial, your American retirement, want to get you prepared for. Because unfortunately, there's a lot of folks that go into retirement and they don't really understand the financial risk that will occur if you live long enough. Okay. And the number one risk that we always address is longevity. Longevity risk is the risk of you outliving your funds. And I talked to a lot of people that that's one of their main concerns. They don't know if they've saved enough for retirement. There's only one way to find out.
Speaker2:
Give us a call (866) 990-7664 or go to the website. Your American retirement.com. Leave us your contact information. Love to be able to have a conversation with you over the telephone or face to face free, no obligation consultation. Let's look and see what you've got. Let's put together a plan and let's let me listen to what your plans might be, what your objectives are that you want to accomplish, or you want to be able to enjoy during retirement. So, folks, we can set up paychecks and we can set up play checks depending on what your wants and needs are. Okay, again, your American retirement.com or the toll free number (866) 990-7664. So folks, when you're listening to this again this Saturday morning. A week. Well, there's this upcoming week is going to be what, Thanksgiving. So just want to spend a little bit of time. What we're thankful for during this Thanksgiving season. What we are thankful for during this Thanksgiving season. First of all, I'm thankful for my listeners and clients who listen to our radio show and podcast. You are the reason why we do what we do. I enjoy it. We are thankful that the market has recovered from the down year it experienced in 2022. Because we know how challenging economic volatility can be for those preparing for retirement. Market volatility is one of the subjects or one of the risks that we review and we address when we put together a retirement plan for you okay.
Speaker2:
So the S&P. In 2022, folks was down just under 20% to be accurate, 19.64% -19.64% in 2022. The good news is that this year, the S&P is up so far in 2023 about 15%. Now simple question. People are already going to ask. You're listening to the show and you're saying, well Randy the S&P was down almost 20% last year. It's up 15% this year and 2023. Uh, that means that I'm still below. So if your money was in the stock market or 401 K and you lost 20%, I got folks that lost more than that in 2022 because they had their money in the stock market of 401 KS. But if your money lost 20%, if your accounts lost 20% and 2022 and it's only up 15% and 2023, you're still down, right? Okay. So see folks, that's called sequence of returns. So what happens is if you had retired January 1st, 2022 and started taking money out of your 401 K or your stock market account or whatever. And you're taking money out at the same time that the stock market's going down. Sequence of returns risk is what puts you in the. High risk zone of running out of money because your account's going down at the same time you're taking money out. But that, again, is something that we address. Okay. We're thankful to invest for investment options that can provide people, our clients with protection for their retirement, including a personal pension.
Speaker2:
I refer to it as guaranteed lifetime income, even if one isn't offered through your employer. We're thankful that there are still two types of tax free investments that we can utilize for our clients Roth IRAs and life insurance. Two tax free investments. So when you invest your money, you're going to be paying taxes on that money. Put it into either a life insurance plan or a Roth IRA, and that money grows tax deferred and you withdraw that money. It's tax free. So in the weeks we have left and left in 2023, we will be talking about building momentum into the new year and how you can make 2024 your best year yet when it comes to preparing for retirement. Okay, so do you have a smart vision for your future retirement? The holidays are a great time to sit down with your spouse and family and really think about. What your future retirement will look like. The first step in planning a successful retirement is deciding what that dream looks like to you. So if you have questions and you're ready to get started with your free retirement plan consultation, just give us a call (866) 990-7664. All right, folks, we're going to be right back. And we're going to be talking about public service announcement AEP and RMD. So again you're listening to your American retirement. We'll be right back. Are you interested in ways to protect.
Speaker3:
And grow your hard earned money. Your American retirement is here to help. Are you anxious about retirement? Concerned that you could outlive your money? Randy Samms is a little Rock native who has nearly four decades of experience helping hundreds of Arkansans retire with confidence. If you want to get the most out of what you've worked so hard for, or if you're interested in learning how to maximize your Social Security, call Randy today at (501) 249-2343. That's (501) 249-2343. Or visit your American retirement.com. Visit your American retirement.com to schedule a free consultation with Randy today. And now back to the show.
Speaker2:
Hey, welcome back to your American retirement on 101.1. The answer where little Rock comes to talk. Folks, don't forget to check out our YouTube page, you know, visit youtube.com and search your American Retirement. And again, you'll see my smiling face and you'll know, hey, this is the right one. Your American retirement. All right, folks, a little, uh, public service announcement. I've done this over the past few weeks. I've continued to do this. Just to allow folks to understand what's going on out there, what is available for you to do if you have a Medicare plan, Medicare Advantage, Medicare prescription drug plan. So only a few weeks remain, folks in Medicare's annual enrollment period. Aep is what I refer to it as. Okay, this is Medicare's annual enrollment period. The open enrollment began October the 15th, and it's going to end December the 7th. So by the time you hear this show, we've only got a few weeks left. Okay. So by reevaluating your plans each year, you will likely find that you can save money on some of your Medicare expenses. So, folks, if you have a Medicare Advantage plan, you can change that to Medicare Advantage plan if you want to. You don't have to. If you're happy with the plan you have today. And you know that the benefits are going to be as good, if not better, going into the 2024.
Speaker2:
That's great. You don't have to do anything. But if you got a plan that you may not be happy with, you can make changes during a EP. Again, it started October 15th and runs through December 7th. And you can make a change from one Medicare Advantage plan to another Medicare Advantage plan. You can switch from Medicare Advantage back to Medicare original Medicare, a lot of a lot of different options you have. If your prescription drug plans have changed and you want to make a change there, you can do that also. But most retirees, savvy retirees do a Medicare coverage check every year just in case they have the opportunity to save some extra money or improve benefits. So, folks, every one of you who have a Medicare Advantage plan should have got an explanation of benefits, or you should have got a coverage explanation of coverage showing what your coverage is going to be in 2024. Okay, sometimes you get more benefits. They've increased benefits. They've given you more, uh, dental coverage or vision coverage than what you may have had last year. But that's what you review. And if you're happy with it, you don't have to do anything. If you want to make changes, now's the time to do it. So let us know how we can help you with your Medicare, your Medicare Advantage, your prescription drug plan.
Speaker2:
You know, you can visit our website, your American retirement.com, or give us a call at (866) 990-7664. Now, folks, I want you to be careful. Avoid scams during this year's Medicare AEP. You know as well as I do that when you go to the mailbox or the post office box, however, you get your mail delivered. You know that you're getting inundated by all these companies wanting you to talk about Medicare Advantage. They want you to call a number. Or if you turn on the television, how many Medicare Advantage commercials do you see every day wanting you to call that toll free number? I know, But when you call that toll free number, you're probably not seeing somebody eyeball to eyeball. That's why I'm a big believer. And I will continue to say this. I'm a big believer in the independent agent I believe you should be doing with someone that's local. Folks. I'm not the only agent in Arkansas that knows about Medicare and Medicare Advantage. There are folks out there that have been doing it a lot longer than I have, and are much more educated than I am on the subject of Medicare Advantage or Medicare supplement. I know a lot about it. But what I'm trying to get my point across is the fact that you should be doing business with someone locally. Go sit down in front of them, or have them come to your house so you can see them eyeball to eyeball.
Speaker2:
That way, if you have an issue down the road in 2024 with a claim, or you got a question, you've got somebody that you can talk to. You've got somebody that you can see face to face. But let's talk about the scams. Alright. Be aware of unsolicited contacts. Be cautious of unsolicited phone calls, emails or door to door visits during Medicare offering Medicare related services during this time. Okay, folks, if I show up at your door unannounced, you didn't invite me. I do not have an appointment already scheduled with you that is unsolicited. That is a no no. I would get in trouble by doing this. So I can't just walk up to you out of the blue at the mall or the grocery store and introduce myself and say, hey, let's go talk about Medicare supplement. Okay? Let's go talk about Medicare Advantage, that that's unsolicited. If you get my number from this show and you give me a call and you ask to have an appointment, that's different. Okay. But during this time, I know you're going to get cards and letters in the mail. You're going to get inundated by commercials on the television. Just be very careful. Careful. And please protect your Medicare card. Keep your Medicare card secure and avoid sharing your Medicare number.
Speaker2:
I don't understand why people would give their Social Security number over the telephone to someone they've never met, and even your Medicare number now. Okay, so those are two things that I always want my clients and listeners to be aware of. Be smart. Don't get scammed. All right. Second public service announcement very quickly required minimum distribution reminder. So as we approach the end of 2023, it's important to remember that the deadline for taking your 2023 required minimum distribution, RMD, is quickly approaching. It must be taken by December 31st. So we do this proactively with all our clients to help them plan any annual distributions in an efficient manner. So missing this deadline could result in significant penalties that could be up to like 50% of whatever the tax is. So. Be sure to mark your calendars and prioritize this important financial task before it's too late. Okay, folks, required minimum distributions or RMDs from employer based retirement plans and traditional. Individual retirement accounts. Iras will be due again on December 31st for most people. 73 and older. So if you turn 73 in 2023, then you have an RMD and you have a qualified plan a 401 K, an IRA, whatever plan has been through your employer. Ira has been taxed deferred at age 73. You are now required to start taking your RMDs.
Speaker2:
Okay, that changed because of the secure act 2.0. That changed on January 1st, 2023. So it went from age 72 to age 73 this year. So it's kind of funny. I had a gentleman this week client. He's been a client of mine was an annuity client still is uh, for now three, four years. And he sent me an email this week basically saying, hey, I turned 72 next year in 2024, do I have to start taking out my RMDs? And I gave him the good news, said, oh, well. Because of the secure act 2.0 starting in January 1st, 2023, you do not have to take those RMDs until you turn 73, which for him will be in 2025. Okay, so he was relieved about that. So remember, be careful what you do and during AEP. And remember AEP is over December 7th. So if you want to make a change on your Medicare advantage or prescription drug plans, you have to do it by December 7th. And those of you who have to take your RMDs, it's got to be done before the end of the year, December 31st. All right. So I've gone quite a ways, but you know what I forgot? We're going to pick it up right now. I need to cue that music, please. Mr. Jim, financial wisdom quote of the week.
Speaker4:
And now for some financial wisdom. It's time for the quote of the week.
Speaker2:
That is going to be given to us by Jim Rohn. So the quote of the week is to solve any problem. Here are the three questions to ask yourself first. What could I do? Second, what could I read? And third, who could I ask again? That was given to us by Mr. Jim Roan. Mr. Roan was, uh, born in 1930, passed away in 2009. He was a renowned American entrepreneur. He was an author, motivational speaker. He was born in Washington State and he overcame. He overcame early financial challenges to become a mentor and motivator to millions. So his philosophy focuses on responsibility and self discipline. Alright folks, it's up to us now because of the changing environment that we go to work on or go to work in today. It's up to us that we have to secure our retirement and that's what we want to help you out with. But again, to solve any problem, three questions to ask yourself. Number one, what could I do? Number two, what could I read? And number three, who could I ask. Hey. You know the person that I would recommend? Well, you know who it is. You're listening to him right now. All right, folks, we're about to do Thanksgiving. So let's do a little bit about this Turkey Day. Trouble. How inflation will impact your Thanksgiving feast. There was a survey called the Advantage Solutions Survey. And this was the holiday 2023. And according to the Bureau of Labor Statistics, grocery prices are up nearly 17% over the past two years. Last year, the rate of inflation was running at 13%.
Speaker2:
This year, the inflation rate for food at home was at 2.4%, according to the latest Consumer Price Index report. Okay, so folks, just a couple of examples. The cost of russet potatoes. Y'all going to do potato salad. Y'all going to do mashed potatoes. It's up. It's an all time high $1.17 a pound rising 14% from a year ago okay. Green beans are almost up 9%. Cranberries, canned cranberries, all of y'all like that cranberry sauce increased 60%. And if you all like those adult beverages, beer and wine are more expensive this year, up 5.3% and 1.2%, respectively. So 50% of surveyed adults say inflation will alter their Thanksgiving food spending. Among the group, nearly 6 in 10 say they anticipate spending more money compared to last year. So, folks. The impact of inflation on Thanksgiving food spending. Who 18% plan to spend more and buy more? 28% plan to spend more, but likely buy the same. That's inflation. Plan to spend more, but likely buy yes, less. And that's inflation also. So we're going to talk about inflation risk when we have that free consultation. Because that's one of the risks that we address when we meet to put together your retirement plan. So folks the big picture, one third of respondents or 34% expect to spend more on Thanksgiving food this year. So I hope that you work that into your retirement retirement plan. Folks, come right back. We're going to talk about what's going to happen to Social Security. You're listening to your American 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.
Go back. Share the spice of life.
Speaker1:
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.
Speaker5:
Is it possible for your turkey to be inflation proof? I'm Jim Terubok here for the Retirement Radio network powered by Amara Life. According to a recent study by Wells Fargo, the pace of inflation may be slowing down, but this year's Thanksgiving dinner could still prove pricey. Trevor Ault of ABC news explains further some products still have rising price tags ham at an all time high with a price of $4.56 a pound in September, it's up 5% from last year and canned cranberries are up 60%. Meanwhile, a recent report by Advantage Solutions net states 50% of Thanksgiving food shoppers say inflation will alter their spending. 59% plan on spending more this year in 2023. But as ABC News Becky Worley reports, grocery stores across the country are using a counter strategy to help you save money.
Speaker6:
But grocery stores are indeed trying some new marketing campaigns, which could result in a super inexpensive dinner and maybe even a free bird.
Speaker5:
Shoprite supermarket, for example, is giving away a free turkey to shoppers who buy at least $400 of food. For giant supermarket shoppers, 400 membership points can be redeemed for a free turkey up to £20. Target is getting into the act as well, after announcing it will be serving a Thanksgiving meal basket feed for for under $25, including a turkey at less than $1 per pound. Thanksgiving and inflation may be antagonists of one another, but thanks to some smart thinking and strategizing, you can have a worry free dinner and a full plate of turkey for Thanksgiving for the retirement Radio network powered by Amira Life, I'm Jim Tabaka.
Speaker3:
Welcome back to your American retirement. Here's Randy Sams.
Speaker2:
Hey, thanks for joining us on this week's edition of Your American Retirement. Be sure to check out the podcast version of the show on Apple, Google, Spotify, or wherever you get your podcasts. Hey, okay. I want to thank you again for joining us on this Saturday morning. Hope your day is going well, the beginning of your day, and let's see what we can learn. So this is what something I get this question all the time from people who are getting close to retirement or folks that are getting close to that Social Security age of 62. They really have some decisions that they need to make. Should I turn on Social Security? Should I wait? What's going to happen to Social Security? So let's spend a little bit of time and let's talk about what's going to happen to Social Security. So what's the problem folks? Social security was introduced in the 1930s when the ratio of workers to beneficiaries. Now I want you to listen to this. The ratio of workers to beneficiaries was 45 to 1. So for every retiree, for every person who is taking Social Security, there were 45 workers paying into Social Security for every 145. Paying into that ratio has fallen to 3 to 1 due to population aging, and is projected to drop to 2 to 1 by 2034. So do you see an issue with that in the 1930s? So, you know, we're coming up to 100 years ago.
Speaker2:
There were 45 workers for every one beneficiary. By 2034, which is what, ten years away, there's going to be two workers for every one beneficiary. That's where the problem is. I don't know if folks don't want to work. Like I said, people are getting older, but at that point the scheduled benefit levels would be unsustainable and the system could afford to pay recipients only 80% of the scheduled amount. So you got to ask yourself 2034. So next year is 2024. So ten years from now. Inflation unless it's flat, probably not going to happen. If inflation continues to rise, say at either 2 or 3%, if it just stayed at 2 or 3%. Ten years from now. What's the price of gasoline? What's the price of bread? What's the price of milk? What's the prices of everything going to be? And you're going to get your Social Security cut by 20%. That's a big issue. That's why we have to address it now. So contrary to popular belief. The Social Security taxes you've paid aren't stashed in a jar with your name on it, so there's no personal savings account. So it's a pay as you go system. So the Social Security Administration uses the FICA taxes it collects from current workers. And remember, there's fewer workers today paying into it for every beneficiary. So from the current workers to pay current beneficiaries.
Speaker2:
So if you're collecting retirement benefits your check is being funded by the younger generation. So money that goes in comes out immediately, which is why the ratio between workers and beneficiaries is so important to the financial stability of the system. So folks, if we still had 45 workers for every one beneficiary paying into the system, we wouldn't be having this conversation. But right now it's three workers for every one beneficiary. And in ten years that's going to drop projected to drop to two, two workers for every beneficiary. All right. So what can the US government do. So they could cut a percentage of Social Security benefits so that all may continue to be paid. They can increase taxes to make up for the shortfall in the funds. Or they can increase the full retirement age again okay. So remember. When I was younger. Uh, the retirement target age, I guess your full retirement age. At that time, everybody said 65, 65 was your retirement age. Everything was designed and spoken about, talked about a age 65. Well, right now for Social Security, your full retirement age. Probably for the majority. Now, those of you who are already having Social Security, uh, but that jumped from 65 up to 67. So a lot of you that are listening right now, if you were born, what, after 1957. So if you were born in 58, 59, 60, your full retirement age right now is age 67, and they could raise that up to help the payouts going going forward.
Speaker2:
Okay. So there's a lot of things that they can do. I hope and pray that they don't mess with the people that are already taking Social Security, because unfortunately, there's a lot of people that that's all that they retire on. That's all that they have coming in is their Social Security check. And if they're told that they're going to only receive 75 to 80% of what they're getting now, that's going to hurt. It's going to put a lot of people in a in a tough situation. So what should you do? So as as myself, no one has a crystal ball when it comes to the future of Social Security. You can't control what the government will do, but you can control how much you save and how carefully you craft a retirement income strategy. So, folks, the question that you got to ask yourself. Do I turn on Social Security at age 62, 67 or 70? Now, those of you who are listening to the show and you turned on your Social Security at age 62. That's going to be your benefit from this point on. All right. So I would. Be concerned if I turned on my Social Security at age 62, which I know being in this type of business, that benefit is about 30% less or more.
Speaker2:
To say 30%. Then what your full retirement benefit would be. Okay, so if you turn it on at age 62 versus 65 or 67, that's about 30% less than what you would have received if you'd have waited. Now, take into account if they drop that down 2,025% what you're getting right now, that's where that's where the double whammy happens. All right. So. Pre-retirees and retirees have a Social Security problem. So I ask, do you pre-retirees and retirees have a Social Security problem? Do you? So a growing number of older adults have no plan beyond Social Security to fund their retirement. And folks, that that concerns me. So according to a recent survey from nationwide, 1 in 5 or 21% of adults age 50 or older said they have no source of retirement income beside Social Security. Okay, folks, Social Security was never created. To be your sole source of retirement income. I hope that doesn't come as a surprise to most of y'all. Social security was created in the 1930s to help supplement. Your pension. Because way back in the 1930s, folks, almost, what, 90 years ago? People went to work and they stayed there for 30, 35, 40 years. And when they retired, they had a pension. It's called a defined benefit plan. Most all of your companies that you went to work for, your employers, they had a pension plan for their employees.
Speaker2:
Now, the pension plan was never designed to pay you 100% of what you were making while you were employed. But if it paid you 60% of that salary or that income that you were used to, Social Security was created to supplement that pension, to maybe add another 20% to get you to 80% of what you were making while you were fully employed. Okay. But folks, for those of you. Who were thinking about retiring. I hope and pray that you have a plan put together and that you've thought about it. Way before now, and you don't have to worry about Social Security being your only source of income. Okay, folks, that's what we do at your American retirement. That's what we do at Qmg financial. We want to meet with folks. I want to meet with you 5 to 10 years before you retire. And let's talk about what your plans are, and let's talk about how we can put you in a safe and a secure position, not a risky position, because I don't want any of my clients to be thinking that the only retirement that they have is what they're going to get from Social Security. And I've got stories after stories after stories I could tell. Okay. So. 21%, 1 in 5 adults age 50 or older said they have no source of retirement income besides Social Security.
Speaker2:
Now, folks, that number is up 13% in 2014 due to the limited availability of pensions in the workplace and a lack of education on alternative personal pension investments. You know, you've heard me talk about them. It's called a guaranteed lifetime income annuity. So a decade ago, 48% of respondents in this age group, 50 or older said they had a pension in addition to Social Security, compared to just 31% in 2023. So. What I find is about 13% of your employers today are offering their employees a pension plan. Majority of those are going to be your public sector. Or if you're in a union job, okay, where they're negotiating contracts. But you also see that there's a lot of union jobs, a lot of strikes that may occur. Because one of the things that the companies are talking about is we can no longer afford those pension plans. It's tough. Okay. So the growing reliance on Social Security comes as an increasing number of respondents said they were doubtful that they would receive their full benefits, according to the survey. Nationwide said. 75% of respondents age 50 or older believe Social Security will run out of funding in their lifetime. Okay, so folks, we see they have we have issues with Social Security. I hope you've put together a plan. If not, you need to give me a call (866) 990-7664 or go to the website.
Speaker2:
And let's spend some time and talk about what may occur, what might not occur. And let's put together a plan for you. And we're going to take into consideration Social Security. So folks, I'm going to say this. The 2024 is going to be an election year. Social security will be on the ballot. What I mean by that in 2024. While it remains to be seen how much the election will affect the stock markets, the 2024 election is posed poised to have an impact on Social Security, which replaces about 40% of Americans pre-retirement income on average. The trust funds on which Social Security relies to help pay benefits are projected to run out in 2034, so leaders elected next year in 2024 will likely have a say on any adjustments made ahead of the depletion date. Okay, so so do you really want to wait and find out what Social Security can actually pay after you decide to retire? So we think it's a better idea to get started on your retirement plan right now. So please give us a call or go to the website (866) 990-7664 or Your American Retirement. Folks. We're going to be right back. And we're going to talk about income tax brackets in 2024. And Americans are living longer. How are you going to pay for it? We'll be right back.
Speaker3:
Miss, part of today's show, Your American Retirement, is available wherever you listen to podcasts and online at your American retirement.com.
Speaker5:
Seven. A clash of speed and iron are coming to a streaming service near you this fall. I'm Jim Terubok with the Retirement Radio Network powered by Amara Life. This November, streaming giant Netflix will stream its first ever live sporting event, the Netflix Cup, a golfing competition featuring Formula One racers and PGA tour golfers. Josh Shafer of Yahoo! Finance explains how this new venture makes sense for Netflix.
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This is happening the week that F1 is in Las Vegas and this event is happening in Las Vegas. So for fans to be able to engage with their favorite drive to survive characters, I think is something to think about here.
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The golfing exhibition will showcase two star studded rosters with names including Rickie Fowler and Lando Norris, who will play a professional eight hole course, with the two top teams advancing to the final hole to determine the winner of the inaugural Netflix Cup title. Meanwhile, the Netflix sports catalog that features hit series such as quarterback continues its upward growth with this new live event and will be charging up to $2 million to secure advertising space. Any advertiser that wants in for the crossover golf event will have to commit to spending $2 million on Netflix ad supported tier. So what does this mean for the live sports future of Netflix? The streaming service has been very timid about producing live sports content, but according to The Wall Street Journal, live boxing could be shown on the platform in the near future. And with the NBA television rights deal up for bidding next year, analysts wonder if Netflix could jump further into the live sports pool in the future for the retirement radio network powered by Amara Life. I'm Jim Tiribocchi.
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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.
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You're listening to your American Retirement. Join me every Saturday at 10 a.m. right here on 101.1 FM. The answer where little Rock comes to talk. So folks, we're going to jump right into this. Americans are living longer, but how are we going to pay for it? So one in every two five year olds alive today will now live to see 100. How about that? That's according to researchers at Stanford University's Center of Longevity. Most people expect to surpass the average Americans life expectancy of 77 years. But if you think you might live to be 100, you'll need to be prepared for it. Okay, so the big challenge is having enough income and savings to live on during retirement. If you retire at age 65 and live to be 100 or older, that's three and a half decades or 35 years that you need to plan for folks before, when they put together retirement plans, they weren't putting together retirement plans for people to live to age 100. They were shooting for 75 or 80. Now, if you have a retirement plan that's going to run out, let's say say they give you an 85%, percent or a chance that it's going to run out of money, or an 85% chance that this will last till you're 85. Folks. I don't want that. I work on guarantees. I want to be able to look you in the eyeball and be able to say to my clients, Mr. and Mrs. Client, the plan that we've put together with this guaranteed lifetime income is a 100% guarantee that it's going to be here for as long as you live.
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So if you live to be 100 or 100 and 5 or 110, this plan is still going to pay. It's guaranteed lifetime income. Okay. So let's look at some of the retirement costs. Retirement costs for food. So the most recent Bureau of Labor Statistics Consumer Expenditure Survey estimated that food at home spending for the 65 and older age group is $4,800. So this is based on BLS monthly estimates, which doesn't include eating out. So 35 years of food folks would cost you. You listen to this 168,000. So if the 65 and older age group annual. Food cost is $4,800 over 35 years. That equates to $168,000. How about retirement costs for health care? Medicare only covers so much. So total annual health care spending, including insurance premiums and other related costs, is $7,540 for people over the age of 65. That is from the Bureau of Labor Statistics, the Consumer Expenditure Survey, based on $7,540 per year, 35 years of health care, will cost at least $263,900. But to be safe, you should plan for higher health care costs. Folks, this is just for one person. So if you're married. Double these expenses. Okay, now, this is over a 35 year period. But if there's two of you. And over 35 years. Your health cost is estimated to be $264,000 times two. Folks. That's $530,000 for two during that 35 year period.
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Okay, retirement costs for housing. The survey found that housing costs are $20,300 per year, on average for people over 65. So living in your own home can be fairly inexpensive, especially if you've paid off your mortgage. So the national median cost for assisted living facility is $4,500 per month, or 54,000 per year. A private room in a nursing home can cost $9,000 per month, or $108,000 per year, according to the annual Genworth Financial Cost of Care survey. So, based on estimates of $20,300 per year, 35 years of housing will cost $817,000 if you stay in your home. But it's important to consider the cost of long term care. Folks, I've spoken about this in the past. The majority of you listening to the show this morning, you have automobile insurance, but less than about 2% of you will actually ever have to use that automobile insurance. The majority of you have homeowner's insurance. Not many of you are going to have to use that. And that's good. I'm just saying I'm giving you an example. You have automobile insurance that you say, well, something could happen. That's why I've got it. You've got homeowner's insurance where you say, well, something could happen. That's why I've got it. Well, sometimes you have a mortgage and you must have it. But when it comes to long term care and I ask the question, what I'm doing my dinner seminars or educational seminars and I get the long term care and I ask how many of the room have long term care folks? Sometimes nobody raises their hands.
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Sometimes 1 or 2 people raise their hand. They've addressed it already. But listen to this. If you're age 65 right now, 72% of Americans age 65 or older will have to utilize some type of long term care facility before you pass away. But the majority of you right now would say, Randy, I don't have long term care. That's why we need to get together and put together a long term care plan for you. And hey, I've got an annuity. That if you don't ever use the long term care benefit, guess what? It's an annuity. And if you pass away not ever having to use the long term care benefit, it's going to be left to your beneficiary, your spouse, or to your kids or grandkids. I love that plan. Okay. So give me a call (866) 990-7664 or go to the website Your American retirement.com. Leave me your information and say, hey Randy, I listened to your show this Saturday. I'm one of those that don't have long term care plan. Right now in place, I'd like to sit down and have a discussion with you about that annuity that covers the long term care benefits. I'd love to sit down with you again. No obligation, but let me educate you on how it works. So how about the incidental and discretionary spending? You're going to need to allow for $14,500 per year between transportation, entertainment and a variety of other costs, including buying clothes and eating out.
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So this means that 35 years of incidental and discretionary spending will cost $507,000. Okay, so folks, total cost of living to age 135 years of food $168,000. 35 years of health care will cost $263,900. 35 years of housing will cost $817,000 and 35 years of incidentals, $507,000. Now, folks, 35 years of those amounts. If you added them up, the average estimated cost is $1.75 million. So the primary wild card to consider is how much time you may need to spend in an assisted living facility. Long term care costs can significantly impact your retirement savings. Okay, so folks, we want to help you out. We want you to live long. But remember, one of the things that we talk about is longevity risk. That's one of the that is the number one risk. Because the longer you live you're probably going to see the stock market crash. The longer you live, you're going to be concerned about spending too much money or not spending enough money. The longer you live, you're probably going to have some health issues. Those are things that we address when we get together. Okay. Very quickly. Five ways to fill costly holes in your retirement plan. Am I going to spend a lot of time on each one of these, but five ways to fill costly holes in your retirement plan. Number one, safely draw from your retirement accounts. Okay, a lot of you are concerned about spending too much money or drawing too much money.
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You got to know what amount you can withdraw so you don't outlive your funds. Number two, build certainty into your plan. Help create a more help. Create more certainty in your plan. You might want to consider maximizing your Social Security benefit when you should turn it on. Number three plan for long term care. Number four invest to help limit inflation's impact. Remember what impact is going to have on your Thanksgiving cost this year. And number five get a second opinion. Give us a call (866) 990-7664. Or go to the website and say, Randy, I'd like to sit down with you. Let's take a look at what we have right now and let's see if we can make some improvements here, maybe save on some fees, improve in this section. But again, folks, that's what we do at Qmg Financial. We want to set you up for a safe and a secure retirement, not a risky retirement. Again, thanks for listening to your American retirement. If you've missed any part of today's show, please go back to the podcast and archives on Apple, Google, Spotify, or whichever platform you get. Podcasts. You can go to the website, your American retirement.com, and listen to any show that we've done over the past two years. I want to thank you for listening. I hope you have a fantastic Thanksgiving. Enjoy your Thanksgiving week. We'll talk to you next weekend. God bless and go hogs.
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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.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. 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. 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 10 a.m. right here on 101.1 FM. The answer protect your retirement and schedule a free, no obligation consultation now at your American retirement.com.
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Any bonuses mentioned may be subject to additional restrictions and regulations based on the offering annuity company. You may not receive the bonus if the contract is fully surrendered, or if traditional annuitization payments are taken, and if the policy is partially surrendered, it could result in a partial loss of bonuses. Because these are bonus annuities, they may include higher surrender charges, longer surrender charge periods, lower caps, higher spreads, and other restrictions that are not included in similar annuities that don't offer a bonus feature.
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