How to Build a “Results in Advance” Plan for Your Retirement

2.16.24: Audio automatically transcribed by Sonix

2.16.24: 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.

Speaker3:
Hey. Well good morning. Hello again, Central Arkansas. I want to welcome you to your American retirement. My name is Randy Sams. Thank you for joining me on this Saturday morning. I hope your day has started off well. You've had your cup of coffee one, two, three, however many it takes. There's brain cells to get going. So folks, thank you again for joining us. I want to welcome all my friends and all my listeners here in Central Arkansas. You guys there in Benton, Arkansas. Hope you all are having a great, great morning folks. We've got a jam packed show again on tap for you today. And please don't forget to check us out. Check out the show on podcast form on Apple, Google, Spotify, or wherever you may get your podcast, whatever your favorite vendor is. And also, you can visit our YouTube page as well. You know, you go to youtube.com and search your American retirement. And as I always say, you know, you hit the right spot when you see my smiling face. Anyway, folks, hey, on a little bit of difference. When you see podcasts, you're going to see the entire show. Or if you go to our website, your American retirement.com. And look, uh, we have a section there for previous shows. Uh, you'll be able to see any of the shows that we've had in the past couple of years on YouTube.

Speaker3:
We just put a small portion of the show on YouTube, because that way you get to kind of get an idea of what today's show is all about, or last week's show or show last year. And then you can go to the website or go to podcasts and look up that particular show and get the entire show. So we're going to put a little bit of whatever we feel like was going to be the highlights of today's show or like I said, any past show on on YouTube, and that's how you're going to be able to see, but you can be able to find us on youtube.com, your American retirement. So folks, listen again. Thank you for joining us. I want to give a quick, uh, public service announcement. You know, last year, the end of last year, we spoke about, uh, there were some negotiations going on between Baptist Health System and United Health Care. And, uh, they were having some issues and negotiating a contract that I guess both of them were happy. Uh, I don't know if both of them are happy right now, but I can tell you that I got a little announcement since I'm contracted with United Health Care.

Speaker3:
Uh, as of February the 9th, 2020 for United Health Care and Baptist Health, i.e., Baptists have reached a multi year agreement that ensures United Health Care members enrolled in employer sponsored plans, you know, group benefits through your employer. Any of the United Health care, uh, Medicare Advantage plans, uh group retiree plans, uh, dual special needs plans. You have access to Baptist provider and the hospital networks. Okay. So as of February 9th, 2020, for those of you who are listening, and I know I got several calls from folks that were asking questions, if you have United Health Care, United Health Care and Baptist Health System have reached an agreement. So you're good to go see your doctors and the hospital at Baptist. So I want to get that out of the way to get let you guys know. Hopefully that's one less thing you have to be concerned about because I'm in the same situation. Um, but now we're okay because UHC and Baptist have reached that agreement. So folks, listen, we are very happy to have you join us this morning. And please, we get phone calls, I get emails, people that visit the website and send me they they give me ideas. As far as Randy, this is something that I've had a concern about or this is something that I am concerned about.

Speaker3:
I'm getting close to retirement and this is something that I want to kind of get some more information on. They've given us ideas about upcoming shows. Okay. Matter of fact, some of the ideas may be on today's show. But listen, we love hearing from you and speaking with our listeners and hopefully we'll be able to set up a consultation. Answer any of your questions. Remember, our consultations are free, but we love helping and hearing from our listeners. So please don't hesitate to give us a call, because we'd love to meet you and discuss how we can help you to reach your retirement goals. Remember what our deal is at SMC financial. We want to set you up. We want to educate you and get you in the right program, the right plan for a safe and a secure retirement, not a risky retirement because we want we believe in building plans for our listeners. That's what we do. It's not a one size fit all. It's based on what your objectives, what your wants and what your needs are. And we help people relaunch, not just retire. So remember you can give us a call (866) 990-7664 or go to the website Your American retirement.com.

Speaker2:
It's time for this week's Problem Solver.

Speaker3:
One of the things that, uh. I'm going to give you an idea today, what we've done in the past. Uh, I've got a client that I'm working with. She a matter of fact, heard the show, and what she was concerned about was she just got a notice from, uh, the pension provider. So she's retired, and her company had a pension plan. So she's one of the lucky few out there that actually had a employer that had a pension plan. Her pension plan, uh, the administrator is sending out. So her company has decided that they're getting rid of doing away with their pension plan. Okay, so she received a notice from the pension administrator, basically giving her, I think it was 30, maybe 45 days from that notice that she had to let them know what her plan was for her pension amount. Now, this young lady had about $175,000 in her pension, so it was still a good amount. But I've seen this in the past when a when your pension amount gets, you know, below 50,000 or 30,000 or 25,000. But this is one of the first ones I've seen. But basically what has happened is the the administrator, the employer has basically notified the administrator, we're getting out of the pension business, give a notice. So basically what they're doing is they're not going to be having to pay any of those fees.

Speaker3:
They're not going to have to worry about it. So the notice that they she received from her administrator basically told her she had that 30 to 45 days to make a decision on what she wanted to do with that 175,000. She could take a lump sum out of that pension. But you know what that meant. If you get a if you decide you want to take a lump sum of 175,000, you're going to have to pay a whole lot of taxes. Okay. So basically what we were able to do, we put together a couple of plans for her. And we we were able, uh, we're in the process of doing that right now of taking the 175,000 and rolling that away from the pension administrator. Not there's no tax complications, no tax implications, no, no penalties or anything. So we're just taking the money from her pension and putting that into an income annuity, where she continues to receive an income and her income is actually going up. Based on what we were able to do for her in the income annuity versus what she was receiving from her pension. Okay. So that's just one of the things that, uh, that we're able to do.

Speaker3:
So if you have a pension and you're getting close to retirement, I would always suggest that you reach out and get in contact with us again. (866) 990-7664 or go to our website, Your American retirement.com and let us know. So hey Randy, I'm going to be retiring here in the next six months or a year or whatever that time frame may be. Could be two months. And one of my options is to look at the pension payments. What options do I have for pension? And let's look at what they're offering as far as payments go. And then let's look at what we can put together for you as far as an income annuity, and see which 1st May be the better option for you. Okay. A lot of people like to take that money out of the, uh, pension plan and move that over into an annuity because it gives them a little bit more control. They feel like of that money that's in that annuity. Okay. So that was just one of the things that we were able to do for this young lady. So again if you have a pension you're getting close to retirement. I would always say just to give you the peace of mind, reach out, touch base with us and let us look and see what you have as far as your pension balance.

Speaker3:
What amount of money you've got. And then let's look and see. Compare an income annuity. What is going to generate for yourself, yourself and your spouse if you want to do joint versus what the annuity versus what the pension might be offering for you guys? Okay. So that along with we look at Social Security, we're going to make you help you make the decision as far as what Social Security benefits are going to be for you. Do we want to take them early? Is there a way we can do like a Social Security bridge instead of taking your benefit at age 67, can we put together a social Security bridge via an annuity over the next 3 to 4 year period and get you to age 70, where you will max out your Social Security benefit? A lot of things. So folks, listen, we provide comprehensive consultations at no cost to our listeners. And there is no obligation. Folks, you will only work with us if it's best for you. So remember, you're listening to your American retirement, folks. We're going to come right back, and we're going to get into the power of a results in advance retirement plan.

Speaker2:
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. Got a wife and kids and. 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.

Speaker3:
Hey, welcome back to your American retirement on 101.1 FM. The answer we're little Rock comes to talk folks. Don't forget to check out your our YouTube page. You know the drill, visit youtube.com and search your American Retirement and you'll see my smiling face. You'll know you're in the right spot. So folks, again, I get a kick out of this. I was on the, uh. I'm not going to take a big rabbit trail on this one, but I when I did the 101.1 FM, the answer, uh, I guess I plugged the radio station, but I had someone I was speaking to on the telephone the other day. I think I was talking to someone at the bank, and they said, Mr. Sams, you should be on the radio. And I said, well, as a matter of fact, I am. And I did the 101.1 FM the answer where little Rock comes to talk. And they thought that was very funny. So anyway, folks, let's jump right into the next part of the show. Because you know what we do every week, man, we want to share some wisdom and we're getting ready for the financial wisdom. Quote of the week. So, Mister Jim, if you'll cue up that music, we're going to get right back into financial wisdom. Quote of the week.

Speaker4:
And now for some financial wisdom. It's time for the quote of the week.

Speaker3:
A quote of the week. Words of wisdom to begin our conversations today. Retirement is not the end of the road. It is the beginning of the open highway. Man, I like that. You know what? I guess I could take credit for that, but I'm not, because it says here that that is unknown. So we don't know who said that. So if you want to take credit for that, go ahead. Because it's no it doesn't have anybody's name beside it. But retirement is not the end of the road. It is the beginning of the open highway. Man, I could take that and run with it because, believe me, how many conversations have I had over the years with folks about what they're about to encounter, going from being employed to retired? Okay. Going from. Having a paycheck every day to woo. Where's the paycheck going to come going to come from when they don't have a paycheck? In other words, you're not working any longer. Folks, we want you to be able to jump into retirement. And we want every day to be Saturday for you. We want every hour to be a happy hour. We want you to join the country club. We want you to play golf, tennis, pickleball, whatever it is. We want you to take the cruises, but you have to be prepared. And one of the things you got to remember is I love this.

Speaker3:
I've said it. This will be, I think, the third time. Retirement is not the end of the road. It is the beginning of the open highway. I like that your journey is about to begin. Okay. Open highway called retirement. All right. How to build a results in advance plan for your retirement I like this step number one. We must delete the IRS. Everybody loves that idea. And minimize your taxes in retirement, okay? Paying taxes is a reality of life, but you don't have to leave the IRS a tip, okay? We don't want to pay more than what we have to. We're going to do our legal amount. Well, let's figure out how to pay that and not give them a tip. All right. So let's take advantage of one. Or both of the only tax free investments for Americans today. Number one is what we do. I guess probably the majority of our tax free investments or our tax free strategies is we talk about Roth conversions, okay, because Roth IRAs allow for tax free growth and tax free distributions. Folks in retirement, see, when you put money into a Roth, if it's a Roth conversion Roth IRA, that money's already been taxed. So it's not going to be taxed again. So it gets to grow tax free. And then when you start taking the money out that money is tax free. Also the distributions are tax free.

Speaker3:
In retirement you can actually convert funds from other types of retirement accounts into a Roth IRA. I'll give you an example. This is something that we do. We have clients that have 401 K's. And you remember we've spoken about this on previous shows. It's called an in-service distribution. When you hit the age of 59.5 and you have an IRA or a 401 K or a 403 B, you can take a portion of that 401 K. Roll that into an annuity or an IRA. Whatever qualified plan is okay. Roll that into an annuity that we will set up, but we set it up specifically as a Roth conversion. So let's just give an example. So let's say you have a 401 K that has 400,000 in it whatever amount you want to it. I'm using 400,000 because it's easy math. We take 50% of that 401 K funds 200,000, and we roll that over into an annuity. The feature on this annuity will allow us to take 10% on an annual basis without any penalties. So we start out with 200,000. And with the first year we take 10% or 20,000. You can pay the taxes on that from that 20,000 or wherever you get the funds from. So you can roll all of that 20,000 into the annuity. All IRS or Uncle Sam's concerned about is that the taxes on that 20,000 have been paid.

Speaker3:
It can come out of a savings account, but we take that 20,000 and put that into that Roth conversion. Taxes have already been paid on it. It now grows tax free. Okay, we do that over the next ten years or eight years or whatever. The key on a. Roth conversion is we have to at least let it grow for five years. We have to do that for five years before we start taking money out. Okay, so if you're age 60 and you plan on retiring at age 68 or 70 or whatever. You could take that 401 K money. Put that into the annuity. Let's start taking 10% out over the next ten years. And when you hit age 70, your Roth IRA all that money from the 401 K. The qualified plan is now into that Roth. And it's tax free. It's growing tax free at any time you start taking money out, that's tax free. Because remember, in addition to the tax free benefits, there are no required minimum distributions for Roth IRAs, meaning the IRS can't force you to withdraw funds each year, allowing your hard saved money to grow. Okay. I've had conversations with people that are upset and I'm going to use that word lightly. Let's just say they're concerned, okay? Because they're just now turning 73 and now they've got a good pension. They may have a good you know, they may have a good Social Security.

Speaker3:
They have enough funds, but they've also got some qualified money in an IRA or 401 K or 403 B that they really don't want to touch. But when you hit age 73 right now in a qualified plan, you must start taking RMDs. So see if we could have met ten years ago when you were 63 years old. We could have done what I just explained to you. We could have taken a portion of your 401 K or all of it. You can do that. Put that into an annuity, withdraw 10% over the next ten years. And boom. When you hit 72 or 73, you don't have to worry about taking those RMDs. Okay. But if you do want to start taking money out, guess what? You don't have to pay taxes on it. So that's just one of the things that we can set you up on. All right. Roth conversions. Give us a call (866) 990-7664. And let us explain that in a little bit more detail for you okay. Number two we're going to use life insurance to generate a tax free income stream. Meaning we can help you invest in life insurance options that protect your family with a death benefit. Money for dying. The words death benefits from a life insurance policy are not taxable. So you can leave that to your beneficiaries, to your spouse, or to your kids.

Speaker3:
So in the likely scenario that you don't die unexpectedly, money invested in the right types of life insurance policies can with be withdrawn tax free. That's money for living. Okay, so a life insurance policy covers both of those bases. You have money in case for your loved ones in case you die unexpectedly. Or if you live, you have money for living. So in other words, with a life insurance policy where they cash value life insurance policy, you can start taking what is referred to as a loan against your cash value. Loans are not taxable. So if you have 200,000 built up in a cash value life insurance policy and you want to take out 12,000 a year, whatever it might be, that 12,000 is tax free. So that's an additional 1000 a month. So we can use that cash value inside that life insurance policy. But folks, you need to start a life insurance policy at an age young enough where you have that time for accumulation, starting a life insurance policy at age 60 and thinking you're going to have enough cash value at 65 or 70 is not probably going to work as well as if you'd have started it at 45 and then looked at 65 or 70, because you've got that 20 or 25 years worth of growth, okay. So you utilize that. So that's one of the things that we can do help to build a results in advance plan for retirement.

Speaker3:
Because folks remember well we got to look at is taxes marginal tax rates in the United States. You got to understand that the current 24% tax bracket was actually 56% in 1960 through 1963. Did you get that? That's 8% higher than twice the current tax rate, 24% tax bracket today in 1960 through 1963 was 56%. So if you're concerned about rising taxes, give us a call (866) 990-7664 or visit our website. Your American retirement.com. Get in contact. Get in touch with us so we can help build a smart tax plan for you and your family during retirement. Because remember guys, the cost of taxes will significantly affect your retirement if you do not have a plan. You got to have a plan. When's the best time to put one together? Right now. So having a proper estate plan in place is another thing you can do if you are interested in minimizing your total tax burden. Okay, so folks, strategies for tax season. Man two types tax free investments available to Americans. And we can help you with both. So give us a call and schedule your complimentary consultation online. Remember Roth IRAs Roth conversions life insurance okay. So folks listen we're not through. If you stay tuned, we're going to talk about the five biggest reasons you should consider a Roth conversion. We'll be right back. Thanks for joining us.

Speaker2:
You're listening to your American Retirement. To schedule your free, no obligation consultation, visit your American retirement.com.

I believe in miracle. Way from.

Speaker5:
You said something. So thank you. I believe.

Speaker1:
Do you want a steady stream of income for retirement? Then it's time to consider annuities. I'm Matt McClure with the Retirement Radio Network powered by Amara Life. Gone are the days when most employers offered pensions with guaranteed lifetime payouts to their workers. But what if I told you that you can build your own personal pension? It's possible with an annuity. An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time, often for the rest of their life. There are several.

Speaker6:
Options for you to consider when choosing an annuity. Be confident in knowing that there is an annuity out there that can meet all of your needs.

Speaker1:
Ford Stokes is founder and president of Active Wealth Management and author of the book annuity 360. There are several different types of annuities, including fixed, variable, and fixed indexed.

Speaker6:
A fixed annuity offers a specific guaranteed interest rate on their contributions to the account. A fixed indexed annuity is an accumulation based product offered by an insurance company. The growth of your fixed indexed annuity is dependent on the performance of a chosen stock market index, but your money is not actually invested in this index. This offers you great growth potential and exceptional protection for your investment.

Speaker1:
While each can provide tax deferred growth and a lifetime income stream, variable annuities put your principal at risk in the market.

Speaker6:
If you are currently investing in a variable annuity, your funds could be in serious trouble if the market experienced any downturns.

Speaker1:
With so many possible choices to consider, it's essential you speak to a financial advisor or professional to help you make the best decision for your future. So are you ready to consider an annuity as part of your retirement plan? It's a key question to consider as you approach what should be your golden years with the Retirement Radio Network powered by Amira 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.

Speaker2:
Are you interested in ways to protect and grow your hard earned money? Your American retirement is here to help. Here's Randy Sams.

Speaker3:
Hey, thanks for joining us on this week's edition of Your American Retirement. Please be sure to check out the podcast version of the show on Apple, Google, Spotify, or wherever you get your podcasts. Or folks you know, we've been talking about how to build a results and advance plan for your retirement, and we spoke about Roth IRAs, Roth conversions, the five biggest reasons you should consider a Roth conversion number one tax free accumulation of wealth. Number two. Tax free income of retirement folks that you get the key on those first two tax free. Tax free accumulation, tax free income protection from future tax increases. Folks, if you have your some of your money, I'm not telling you to put all of your money. That's your decision. I think having a bucket. A portion of your retirement funds of your retirement plan in a Roth. Where that money grows tax free and that money can be withdrawn tax free. I think that's a no brainer, but we got to start it early to take advantage of being able to take the qualified plan. A 401 K, put it into the annuity and start taking out 10% over the next five years, seven years, eight years, ten years and let that money continue to grow for you tax free. But again. Ten years from now, do you think taxes are going to stay the same? Do you think they're going to go down or you think they're going to increase? But remember, if you have a Roth IRA, a Roth conversion.

Speaker3:
They're making a difference what the tax rate is, because that money that you take out is tax free. Another feature. Number four no required minimum distributions. Take what you want when you want. So right now in your 401 K your 403 B or your IRA plan. If you haven't touched that. And starting. I believe it was, what, last year? It jumped up from 72 to 73. So if you turned 73 last year, you're turning 73 this year and you have a qualified plan a 401 K or 403 B or an IRA. Uncle Sam, the IRS says. You have to start taking minimum distributions. You can't just let it continue to accumulate and accumulate, accumulate, accumulate. Okay. At some point in time, you have to start taking those RMDs out. They're going to tax those okay. So required minimum distributions. If you take that money early again if you get in contact with us early age 60 6162. Let us get that set up for you, where you can have a portion of your retirement plan in a tax free bucket. Okay. And number five, leave a tax free benefit to your beneficiaries, people that I set this up for. They love that okay. Whether it be your children. Or your grandkids, okay. And you know, if you have a grandkids, you wish you could have had those grandchildren first. I know we love our children. I love my two boys and you guys love your children.

Speaker3:
I think the reason we love grandkids so much is because it reminds me. Of the fact of when I had my two boys. Okay. I loved being a dad. I loved my two boys. I loved my two grandbabies, okay? My grandson and my granddaughter. And I know y'all do too. But wouldn't it be great to be able to leave your grandkids? A tax free benefit. I think that'd be fantastic. You know how to do it. You got to give us a call (866) 990-7664 or go to the website Your American retirement.com and say, hey, Randy, I like the CI. I like the idea of that IRA that Roth IRA. Okay. Roth conversion. How do we do that for my family, whether it be leaving it for your spouse or leaving it for your kids, but you leave a tax free benefit. All right. Let's jump on to results in advance. Step number two delete unnecessary portfolio fees. So, folks, we find that most people who call and meet with us do not understand the fees they are actually paying inside their portfolio and retirement accounts. Or if you have a variable annuity. I see this all the time. So what we want to do is quickly eliminate any excess fees, especially on assets that are underperforming. I want to give you just a quick example. Now. This was last year. I met with a young lady who had a variable annuity. I'm not going to name the company. She had had it for about ten years.

Speaker3:
Nine, ten years. Okay. Her account value had grown about $80,000 over that 910 year period. But guess what? During that 9 to 10 year period, she had paid almost $55,000 in fees through that variable annuity. So we were able to take her out of that variable annuity, paying all those fees, and put her into an income annuity that was going to guarantee her a higher income in the first place and take away all those fees. Okay. Plus, when you're in a variable annuity, your money is in the market. It's at risk. So it's going to go up and it goes down. But so let me ask you it's your money. Don't you want to get the most out of it? Most people answer yes. So you've worked hard to earn your money and you worked even harder to save it. So let us help you put that money to work and start paying you an income you and your family can count on during retirement, folks. As Randy Sam said at once, he said it twice. He said it 100 times. You do not retire on assets. You retire on income. You'll be able to lay your head on the pillow at night and sleep soundly, knowing that no matter what happens to the stock market, your money is in that income annuity and that income is guaranteed for the rest of your life. And if we set it up as a joint payout, it's set up for the rest of your spouse's life.

Speaker3:
Okay. So we help our clients take advantage of fee efficient strategies while generating safe and predictable income streams that you can never outlive. Okay, so if I was putting together a retirement plan, would you feel comfortable if I looked at you and said, hey, Mr. and Mrs. Smith, I've got a plan set up here that I can give you 80% guarantee or probability that this plan will last till you hit age 85. See, I don't like that. Okay. We're going to put you in a plan that gives you a 100% guarantee that you can never outlive that plan. That makes me happy. Should make you happy. Okay. Makes me sleep better. Should make you sleep better. Okay. So. Did you know that you can establish your own personal pension? By replacing the bonds you now hold with fixed indexed annuities. While also deleting the fees on the bond portion of your portfolio. So we help our clients completely delete fees from a significant portion of their portfolio, often about 50% or sometimes even more, by simply replacing the underperforming bonds in your portfolio with a guaranteed income annuity, guaranteed income annuity added to your portfolio is going to do two things. So if you replace the bonds in your portfolio, number one, with a guaranteed lifetime income annuity as part of your retirement portfolio, it's going to increase the overall returns. It acts like a triple A rated bond okay. And it's going to decrease your overall risk, increase your overall refund your your returns because you got that guaranteed income and it lowers your risk because zero is your hero.

Speaker3:
It's not going to lose anything. So if you're interested in learning more or about how much a bond replacement could save you in fees and how it can significantly improve your overall retirement income picture, please get in touch with us. (866) 990-7664 or visit our website. Your American Retirement today. So we are standing by to help you. Okay, that's pretty good I like that. So what's an expense ratio and why does it matter? All of our listeners should ask themselves this important question how much am I paying in fees on my retirement savings? You'd be surprised how many times I ask people, folks, I ask people in your 401 K, what do you have investment? They don't know. I know if they don't know what investments they have, they're surely not going to know what fees they're paying. So we ask them to bring their statement and their statement, or if we have to make some phone calls to the administrator, we can find out what fees you're paying. But here's the expense ratio formula. The expense ratio can be found by performing this simple equation. Take your management fees over your total investment in the fund management fees divided by total investment in the fund. So if you don't know the answer to this question and can't quickly pull it up, you owe it to yourself to find out again.

Speaker3:
We'd be happy. Be more than happy to take a look and identify your current expense ratio on your retirement program. Your retirement savings. All right, results in advance. Step number three. Let's generate more income from your savings. Well, when we talk about earlier income, step number three generate more income from your savings. Remember retirement is more about income than about the size of your nest egg assets. You do not retire on assets. You retire on income. Assets can be lost. Guaranteed income cannot. Many people who call our office and meet with us ask us how much they need to have saved in order to successfully retire. That's a good question. The reality is, the size of your nest egg doesn't matter nearly as much as how much retirement income you can generate using these hard saved dollars. Because building a smart income plan starts by taking a look at your expected income sources during your retirement. For most people, that would include social security, pensions and personal pensions. And we could also throw savings accounts in there, okay, which are often established using fixed annuities. Your personal pensions are established by using a fixed annuity slashed and income annuity okay. So if I've got a client that's called me and we're going to be working together, and I ask him if they have a pension plan and they say no, would you like to have a pension plan? And they say, of course I would.

Speaker3:
Well, we can do that. So let's look at your 401 K, your 403 B, your IRA, whatever it might be. And let's look at moving some of that money or as much as you want to into the guaranteed lifetime income annuity. Let's let that start accumulating over a five year period or a ten year period, however long we're going to let it grow. And then whenever you retire or at some point in retirement, you turn on that income stream. You have just established your own personal pension. And if you're smart, all you husbands out there, if you're smart, you'll set that personal pension plan up to where it not only gives you the guarantee of having a lifetime income, but it also gives your lovely wife the guarantee of having a lifetime income. Also, that's called peace of mind. Okay, but we do that using the guaranteed lifetime income annuity. So folks we're going to talk about annuities here. Coming back in this last segment. And we're going to talk about how to build a smart income plan using Fisher's fixed indexed annuities. You guys know you've listened to this show over and over and over. Randy Sams is a big believer in annuities. I'm going to preach it because I believe it. Z-ro is your hero. So folks listening don't y'all go away. This number, this last segment is going to be fantastic because we're going to talk about how to build a smart income plan with fixed indexed annuities. We'll be right back.

Speaker2:
Miss part of today's show. Your American Retirement is available wherever you listen to podcasts and online at your American retirement.com.

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Speaker1:
Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to make full disclosures of any conflicts of interest, if any, exist. Refer to our firm brochure, the ADV Two.a, page four for additional information. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by BWA.

Speaker2:
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.

Speaker3:
Now you're listening to your American Retirement. Please join us every Saturday morning at 10 a.m., right here on 101.1 FM. The answer where little Rock comes to talk. So, folks, you know, we're talking about being ready for retirement. We've given you three examples. We want you to be results in advance okay. What is it called? I guess it's better to be a. Proactive than having to be reactive. When's the best time to start a retirement plan? Right now, if you haven't already, sit down with someone right now. Do it today. Okay? And that's what we do at SMG financial (866) 990-7664. Give us a call or go to the website. Your American retirement.com. Leave us your information. We'd love to be able to sit down with you. Remember folks, no obligation. If we can't help you, you don't owe me anything. Take advantage of our expertise. We've only been doing this for 38 years. I'd love to tell you, I started when I was young. Well, I actually did start when I was young, but not like when I was, you know, 5 or 6 years old. All right, so let's look at how we can build a smart income plan using indexed annuities. Fixed indexed annuities okay. Fixed indexed annuities. I'll refer to those as feas or insurance contracts that provide a guaranteed income stream for your retirement. They are seen as safe accumulation alternatives to bank CDs or traditional bonds. So folks, I look at annuities. It's it's what I consider to be the first step towards the safe money, a smart income, safe income because annuities are an important part of any retirement plan as they are safe, secure and risk free.

Speaker3:
Zero is your hero. You're not going to lose anything. Okay, so an annuity allows you to accumulate funds for retirement on a tax deferred basis. And upon retirement, you'll receive an income from that annuity that the insurer can guarantee to last either a fixed number of years, a period certain or as long as you live. Now, an annuity folks a lot here. A lot of people talk about an investment. An annuity to me is not an investment, all right. An investment is what you're going to do with your stockbroker or your fund manager or whatever. I don't do that. Yeah. An annuity to me write this down is a risk transfer vehicle. We're taking the risk away from ourselves of running out of income. And transferring that risk to the insurance company to the annuity company. Okay. Because most importantly, indexed annuities provide a solution for investors looking to protect your hard earned retirement savings from market volatility. The ups and the downs on the market. See, people love the market right now because it's been going up. But man, let it drop tomorrow and y'all hate the market okay. Indexed annuities are designed to provide protection from market downturns while still maintaining accumulation benefits for growth. So you got to ask yourself. How much of my hard earned retirement savings am I willing to risk in the market? Folks, I ask people when I meet with them, how much are you willing to lose? You know what the majority of the people say? Zero.

Speaker3:
You see, if I asked you right now, how many of y'all would love to make 25% on your money, you're all going to raise your hand. I got my hand raised right now. But if I asked you, are you willing to lose 25% of your retirement funds? Nobody wants that. So we have to address risk. And one of the risks that we talk about when we meet is market volatility. We want to address that and take that market volatility risk away as much as possible to where you have a portion of your money, your retirement funds into an indexed annuity. And you don't have to worry about the market going up or the market dropping down. See, I have received zero phone calls over the past few years from any client that has lost money in an annuity because the market just dropped 15% or 25%. I get a lot of phone calls from folks whose friends have business, have annuities with me and their IRA balances, or their managed fund accounts or their 401 K balances just dropped. And they ask their next door neighbor, you know, we all go down to the donut shop or the coffee shop, and that's where the world's problems are served solved. But someone during that conversation has said, hey, you need to call my friend Randy Sams and let him tell you exactly what he did for me and my spouse, and we'll take that market volatility away. So listen, how much are you willing to lose.

Speaker3:
Majority of you are going to say zero Randy. So the main benefits of indexed annuities include protection from market volatility. That's a risk Efya's provide protection from market volatility because the annuity is linked to the performance of an underlying stock market index, the income is not directly affected by short term market fluctuations, so this makes them an attractive option for investors who are looking for a steady and reliable income stream. Let me expand on that just very quickly. Your money. We're going to be able to choose different strategies, and we're given with each annuity company you have different index strategies. Could be S&P 500, could be Goldman Sachs could be I could go on and on and on with the different indexes okay. Your money is not invested directly into that index. What happens is, is that we are offered a participation rate. So let's say we start with an index that the value when we put our money on that particular strategy, the value is 100. And at the end of one year the value may be 108. So what does that mean? That means that index increased by 8%. You may have an 80% participation rate in that index. So what's 80% of 8%? Quick math. What does that work out to 6.4%. So that means that your money that was in that particular strategy just grew by 6.4%. But what happens if that same index, when it started out at 100 at the end of one year, was valued at 90? You don't lose anything because the growth participation rate and 80% participation rate of zero is zero.

Speaker3:
So it went negative. But you didn't you didn't lose anything, but you didn't may not have made anything. So zero is your hero. So remember that risk we have to address longevity sequence of returns. And again market volatility. And that's something that we do when we meet with you guys. Tax deferred growth fees give us tax deferred growth. This means that any earnings on the annuity are not subject to taxes when until withdrawals are made. Now folks we have to um differentiate between a qualified plan and a non qualified plan. A qualified plan is a plan like a 401 K 403 B, anything that's been growing tax deferred over a number of years. We also have a non qualified money, which could be money that you have sitting in the bank. That means that's money that's already been taxed. Now money that's already been taxed. If we take uh $100,000 and put that into an annuity, into a growth annuity, into an income annuity, and we let that money grow, and then you start taking in income. People say, well, isn't that taxed? Only a portion of it, folks, we have to take into consideration the exclusion ratio, which means that only a portion of that income for a non qualified plan is going to be taxed okay, lifetime income stream. So don't worry about breaking your budget and enjoy the retirement income you can count on and never outlive whether you live to be 80, 90, or 100 years of age or above.

Speaker3:
Annuity companies continue to make payments as long as you live. That addresses longevity. We're going to put you into a guaranteed lifetime income annuity that guarantees you the peace of mind, knowing that you're never going to have to worry about your retirement account hitting zero before your blood pressure does. Okay, again, we don't want you to have to be stressed out because your person puts you in a plan that gave you an 85% probability of lasting to age 85 or 90. Now we're going to give you a 100% probability that the plan that we. Put you in is going to last your lifetime and your spouse's lifetime. Okay. Account values for your beneficiaries. If we invest in the right annuity that provides a lifetime income for you and or your spouse, we can still provide a death benefit for your beneficiaries when you pass away. So in my humble opinion, fixed indexed annuities are suitable investments for up to 70% of your portfolio because typically our clients are using indexed annuities for a 25 to 50% portion of their retirement savings, while the rest is allocated to smart risk investments that provide further opportunity for additional growth. So, folks, listen, I want to thank you for listening to your American retirement. Remember, if you missed any part of today's show, go back into podcast archives on Apple, Google, Spotify, or whichever platform you get. Podcasts, folks, go out. Have a great weekend. Make it a great Saturday. God bless. Go Haugs. We'll talk to you next week.

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.

Speaker7:
Imagine, if you will, a streaming service that caters strictly to sports fans. I'm Jim Tarabukin. With the Retirement Radio Network powered by Amara Life, Super Bowl Week 2024 is TV executives buzzing about a new joint streaming venture tailored to sports fans. This unprecedented offering will combine ESPN, Warner Bros. And Fox together to create an all encompassing one stop shop for sports viewing, and his partner and head of global media, Mark Boidman, told Yahoo Finance. This move will benefit television networks.

Speaker8:
These companies need to come together. Bundling has been a part of the driving force, but as has the cost of sports, the cost continues to go up. As Ali just mentioned, we're hearing rumors of close to 75 billion for some sports programming that's coming up.

Speaker7:
The offering will include the four major sports college athletics, UFC, FIFA and much more. The streaming service will be offered through a new standalone app for the most passionate sports fan. The subscriber to this premier sports service will have access to linear sports networks as well. The price for the new app hasn't been determined, but according to multiple news outlets, the price could range anywhere from 45 to $50 a month, with a launch date scheduled for the fall of this year. What kind of ripple effect will this have on cable and streaming? How large will the subscriber base be? Well, sports right fees alter in the future all valid questions that remain relevant in an ever changing sports streaming landscape for the retirement radio network powered by Amara Life. I'm Jim Tiribocchi.

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