Are you paying too much for your retirement plan? This week, Randy discusses some strategies for eliminating unnecessary fees, taxes and expenses so you can live the retirement lifestyle you deserve.
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Call today by dialing 866-990-7664
1.13.23: Audio automatically transcribed by Sonix
1.13.23: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.
Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.
Producer:
Welcome to Your American Retirement with your host, Randy Sams. Get set for a full hour of financial information and economic news affecting your bottom line. Randy works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for. And he can help you too. So now let's start the show. Here is your host, Randy Sams.
Randy Sams :
Hey, good afternoon, everybody. I want to welcome you on this beautiful Saturday in central Arkansas. My name is Randy Sams. I am your host for Your American Retirement Thank you for joining us. 101.1 FM. The Answer where Little Rock comes to talk. Folks, I want to thank you for listening to the show. And by the way, happy New Year. Happy 2023. We've got a great show scheduled for you today. Program is going to be very informative. We're going to talk about some of the taxes that went into into effect in 2023, January 1st, 2023. And we're going to talk about. Hit that delete button. Delete button. That's what we want to do, folks. But again. My name is Randy Sams. I welcome you to the show, Your American Retirement 101.1 FM. The Answer, folks, We have a podcast for those of you who may be just hearing this show for the first time, we do have a podcast. Wherever your favorite podcast, you listen to YouTube, Spotify, whatever that might be, go look us up. YourAmericanRetirement.com , You're going to see my pretty face. We have some segments of the show. Give us a thumbs up. We enjoy listening to some of the comments that people put on the podcast. But also guess what? Like the suggestions that folks have been giving to us throughout 2022. Going into 2023, we're going to use some of those suggestions as far as subjects for our shows in 2023, because we've got a lot of people that listen to the show that are getting close to retirement.
Randy Sams :
They've got questions on Social Security, they've got questions on retirement. When should they turn on Social Security? Tell me about Medicare. What do I do with all my retirement funds for one K? But folks, go to YourAmericanRetirement.com . Leave us your name, your information, leave us a comment. Give us some suggestions on what you think you'd like for us to spend some time on the show this year. You know, we've got 12 months, so we've got to give us a lot of time to be able to hit some of those subjects that you guys are looking for and are interested in learning about. Because you know, here at YourAmericanRetirement.com at SMMG Financial you know we're all about your retirement folks. We want to help educate. We are focused on addressing major financial issues for today's retirees. Folks that are getting close to retirement, folks that are in retirement. What we want to do is help people understand and prepare for a secure retirement and not a risky retirement. So, folks, again, go to YourAmericanRetirement.com . Leave us your contact information. Love to be able to reach out and just have a if it's via email that's fine.
Randy Sams :
Have a conversation about you what your plans are or what some of the questions you might have. Hey, but guess what? You can also go to our leave us a voicemail. 866 990 7664. Is our toll free number or local 501 249 2343. Folks, if if we're unable to Answer, just leave us a message. Leave us your contact information. I'll be glad to get back in contact with you. Have a conversation about your retirement We can Answer questions about, like I said, Social Security, Medicare, retirement funds, guaranteed income. We want to eliminate risk again. Today Show. We're going to be talking about how to delete fees, taxes and experience and expenses excuse me, how to eliminate fees, taxes and expenses. I like to call it hit that delete button. Well, folks. I run across a lot of people over the many years that I've been in the business and. A lot of folks, they always ask me, So, Randy, what is it that you guys do at SMMG Financial? Well, I'm going to spend a little bit of time in this first segment of the show and kind of explain to you. Folks. What I'm very, very adamant about, what I'm passionate about is eliminating risk. You're going to hear that many times during this show and many time on the shows to follow. And if you listen to the shows in 2022, you know, that's what we talk about.
Randy Sams :
Risk is not something that you need while you are in retirement. Folks, you've worked too hard to get where you are at right now. The last thing you want to do is lose. So let's take that off the table. Let's eliminate risk. So over the years. Meeting with clients and sitting with people at their dining room tables. You know, I'm a little bit different, folks. I like to come to you. I'm like Marcus Welby. I'm the Marcus Welby of the financial industry, of the annuity business. I make house calls. You remember the old show Marcus Welby? You know, he would always make house calls. Well, that's what I do. I feel like it's a lot more comfortable for you as a client to be at your house versus that at an office. A lot of things can happen. You know, if I'm at your house, you're comfortable. We're going to go to your dining room table, your kitchen table, wherever you're comfortable. And that's where we're going to have our discussion. So anyway, I've met with many, many clients at their dining room table, their kitchen table, who. You know, they were supposed to be retiring, living the American dream. But guess what? Many of them men and women in their mid seventies who now have to try and find a job because their retirement was blown up. By what? By Wall Street.
Randy Sams :
By investment accounts. So I've seen older people break down. Break down in tears wondering how something like they had prepared for 30, 40 years. Their retirement suddenly has lost 50% of its value folks, in 2022. I just had an important day outside of Memphis, Tennessee, and that gentleman had lost 18% of his retirement funds that he started with in January 1st, 2022. So guess what we did? We eliminated that risk. He's not going to lose anything. But folks, some people have lost close to 50% of their value in a 12 month period. Again, 2022, it was probably close to around 20%. So, folks, what happens is this. What they're concerned about. They're concerned about their retirement account hitting zero. Before their blood pressure does. It's not what it's supposed to be. All right, So people like you and me. Main Street Americans. So we wonder if we will now outlive our retirement again. Will your retirement fund go to zero before your blood pressure does so? On top of that, what happens? You've got to face people like Bernie Madoff, the Bernie Madoff's of this world who, you know, taken your trusted life savings and disappeared in an instant because people they trusted spent their retirement funds on homes and yachts and cars and country club membership. So I wonder how people like that actually can live their life, you know, live a life of luxury, knowing that they've destroyed the lives of so many people, so retirements ripped apart, grandkids not being able to go to college or have a dream wedding.
Randy Sams :
Greed is a root of corruption and dishonest dishonesty, folks. The Bible says that what the love of money is the root of all evil. It's not money, but it is the love of money. So greed is the root of corruption and dishonesty. So these crooks remove themselves from any sense of morality by continuing living a lifestyle that buries them in attention and financial fame. So folks, in my opinion, people who commit these types of financial crimes, they should be penalized to the fullest extent of the law. They've ruined people's lives and it's almost like they don't care. So there have been actual cases of seniors opening their financial statements, having a heart attack or a stroke right then and there. So there are other cases I've read about, and you've seen them probably when you've seen the markets crash, people find out their retirement and their savings. Have have vanished or they decreased significantly and they commit suicide because they've lost complete hope for their future and their loved ones future. You see, there are two common killers of seniors that few people talk about or even realize. The two common killers are stress and rocking chairs. Okay, So, folks, let me tell you a little story.
Randy Sams :
This so the gentleman that I met with yesterday. He had 401k and he also had an investment account. Am I going to mention names? But here's here's what I had to tell him. Because, you know, if if you have a41k or you have your money with a money manager or an investment advisor and you mentioned the word annuity, you're going to see them. They're going to raise their nose, they're going to hold their nose. They're going to Oh, we don't like annuities. Well, folks, let me tell you a little story. A simple definition of annuity is what an annuity is a guaranteed stream of income. So let me ask you a question. What do you think those advice, investment advisory or money managers are making? As long as they have your money in their hands, as long as your money is AUM assets under management for those people, as long as the investment advisors have your money, they are guaranteed in income off of that money, a guaranteed revenue stream. So guess what, folks? Whether it goes up or whether your money goes down, they're going to get their fees. So you are their annuity. So when I told my client yesterday, when I told him that story, his eyes got real big. He said, Man, that's right, Randy. These guys have been making. One and a half, 2% off of my money for many, many years in my account has gone down 18% in 2022.
Randy Sams :
So he was ready to make the move. So, folks, listen to this again, two common killers of retirees, stress and rocking chairs. Stress. Stress kills because it causes all sorts of health issues that can lead to death. Folks are stressed out because what they're they're concerned about their retirement funds being eaten up. All right. Rocking chairs kill because retirees have nothing to live for or no money to do anything with. So one of the greatest causes of these two killers is retirement and savings being blown by market risk. So, folks, retirement money should never and I stress that never be put at risk again. I'll say that again. Risk should be taken off the table. Retirement money should never be put at risk. So, folks, people work all their lives to hopefully have a happy and a secure retirement. But too many times in the past 2 to 3 years, I've had to meet with clients that have lost 20 to 30% of what they had in retirement funds, in IRAs for one case investment accounts or managed accounts. So, folks, listen to me. I'm going to end segment one with this. Listen to me closely. Retirement money should never be put at risk. Stop losing money, folks. Thanks. Will be right back. You're American Retirement. Randy Sams is your host, 101.1 FM. The Answer?
Producer:
Thank you. Dreaming. I'm always dreaming. Miss part of today show Your American Retirement is available wherever you listen to podcasts and online at YourAmericanRetirement.com .
Randy Sams :
Hey, welcome back, everyone. Again, my name is Randy Sams. I am your host for today's show and tomorrow's show and every other show coming next. But Your American Retirement , thank you for joining us on 101.1 FM. The Answer we're Little Rock comes to talk. Excited about you being here, folks. I hope 2023 even though it's only been a couple of weeks into 2023. I hope you're having a great year to start this thing off, folks. The way I look at it is this way. I look at every New year as an open book. You've got 12 chapters. Each chapter has anywhere from, let's say, 20, what, 28 to 30, 31 pages in it. They're all blank going into 20, 23, 2023. So stop and think about it. What do you want? Your book titled 2023 My Life and 2023. How do you want it to look? What do you want it to read? So just sit down and think about it. Write yourself a little journal you've got. We're in month one right now. Chapter one. We're in day ten right now. So hopefully you've got some good thoughts, you've got some good reading materials for the first ten days, for the first chapter, but you've got 11 chapters more to go. It's going to go by fast, isn't it? Hey, anyway, again, thanks for. Thanks for listening. I hope you enjoyed that first segment because again, folks, I want you to understand exactly what it is we do at SMMG Financial folks.
Randy Sams :
We eliminate risk. That's going to be our number one objective with you is eliminate risk. We want you to have a happy retirement, not a risky retirement. We want you to have a secure retirement, not a risky retirement, so that you're going to hear it more. Get used to it, risk, eliminate it. You are at a point in your life where you do not want to lose. Stop losing money. Democrats claim the Inflation Reduction Act would help ordinary Americans, but new analysis suggest and folks, I'm getting my information from the Daily Mail. All right. This was an article that was written December the 31st from the Daily Mail. And I wanted to include this to let you know that beginning January 1st, all these taxes that were supposed to reduce inflation against you and me are now into effect. And I want you to understand what some of them might be and how they can affect you personally, your household and your retirement. So, folks, listen to this. Biden said that anybody making less than 400,000 a year would end up paying what, Oh, we're going to end up paying $20 Billion of new tax revenue that the Inflation Reduction Act brings in. But anybody. Making less than 400,000 a year end up. Billion.
Randy Sams :
Of new tax revenue it brings in. So President Biden signed the act into law in August, injecting 473 billion of new spending on climate and health care. Yet there are strong concerns it will do little to reduce inflation. In fact, middle class Americans like you and me. We will be paying new taxes, directly contradicting President Biden's promise not to raise taxes or penalties on people earning under 400,000. Now Republicans. And you know, they now have the sin or they now have the house. They now have finally elected a speaker. But the Republicans continued to criticize the bill, claiming that it will lead to taxes, new taxes, higher taxes on ordinary Americans, and do little to help reduce. The soaring costs. So listen to this. January 1st tax hikes and I'll go over some of these in more detail as we speak. But I want you to listen to some of these. All right. January 1st tax hikes. This is the tax, 6.5 billion natural gas tax. What's I going to increase that's going to increase your household energy bills. Boom, There's an increase. Tax as of January 1st, 12 billion crude oil tax. What's that increase? That increase everything. Household cost, gasoline, you name it. So there's an increase January 1st, 1.2 billion in coal tax. Again, household energy bills are affected. They're going to be increased. You know how it is. If the taxes are increased on the corporations, they're going to pass it right on to you and me.
Randy Sams :
So we're just going to enjoy that increase. On the household energy bills as of January 1st, 74 billion. In a stock tax, folks. This is the one that's going to affect your retirement accounts or for one case for three B's, whatever it might be. Iras, pension plans. You're going to see those affected tremendously because of this, the taxes that are going to go up and be assessed against them. 12 billion on January 1st, 12 billion corporate income tax. And guess what I said earlier, if the corporations are going to pay higher taxes, guess who they pass those on to us. So, folks, there's just four instances that we're going to see increases in energy bills, household overall household cost for one K IRAs, pension plans are going to be affected. And those corporate income taxes that are going to go up, they're going to be passed right on to you and me. So, folks. The House passed the bill to 22 207 on a party line vote after it squeaked through the Senate 51 to 50 with all Democrats, all Democrats and Vice President Kamala Harris. So, folks, the the new bill that raises $265 Billion by allowing the government to negotiate with drug companies for lower Medicare prescription drug costs. Now, hopefully that'll be a good thing, folks.
Randy Sams :
We'll wait and see. But it raises 265 billion by allowing the government to negotiate with drug companies for lower Medicare prescription drug costs. The new excess excise tax on stock buybacks came at the insistence of Senator Kristen Sinema. She's a Democrat from Arizona after she nixed a provision to close the interest of the carried interest loophole. So listen to this folk 6.5 billion natural gas tax, which will increase household energy bills. The Inflation Reduction Act includes three major energy taxes that actually likely to increase your household energy bills. One of these taxes is a regressive tax on American oil and gas development, which is estimated to increase taxes by $6.5 billion. The tax hike goes against President Biden's promise not to raise taxes on Americans making less than 400,000 per year. So, see, people always ask, Well, what do you mean? Randi? He didn't say, My taxes are going to go up, folks. If you're going to be paying more for gas and oil, heating, your taxes went up. All right. So according to the American Gas Association, the methane tax alone could result in a 17% increase on the average family's natural gas bill. So does that an increase in your taxes? Yeah. You bet it is. So it's crazy. Officials from the Biden administration have acknowledged that this type of tax, which raises consumer energy prices, goes directly against the folks.
Randy Sams :
That's Democrats saying that this goes directly against President Biden's 400,000 tax pledge. 12 billion. Crude oil tax, which will increase household costs. Man, it's crazy. According to some sources, Democrats are proposing a 16.4. Since per gallon per barrel tax on crude oil and imported petroleum products. That is expected to be passed on to consumers in the form of higher gas prices. So, folks, you've gone to the gas station and you've seen those little stickers with Biden's picture and says, I did that because we're now paying, what, over $3 a gallon? Where the previous administration, if we still had them, them in charge, where we were, what we were energy efficient, we were energy, we were self sufficient. We produced our own energy. A matter of fact, we began to export. And our gasoline would probably be around a dollar, $8 a gallon right now. So, anyway, listen to this. In addition, the tax increase is tied to inflation, meaning it will also increase as inflation increases, as inflation rises. This tax, the 16.4 cents per barrel. Is going to also rise. Ban. So the Joint Committee on Taxation, a nonpartisan organization, estimates that this provision alone will generate $12 billion in taxes. 12 billion, folks, that's a lot. So listen to this. Inflation jumped by 9.1% in June, the fastest since 1981. Since then, prices rose 0.1% for the month of November or 7.1% over the past 12 months.
Randy Sams :
So, yeah, inflation is going to go up. Democrats are proposing a tax increase that more than doubles the current excise tax on coal production. Under this proposal, the tax rate on coal for a subsurface mining would increase $0.50 per tonne to one dollars and $0.10 per tonne. Now, folks, this doesn't affect us here in Arkansas because a lot of us don't have we don't use coal to heat our houses. But just think about the folks that are up in the north. You know, it gets a lot colder up north than it does here in Arkansas or in the south. And those people, majority of them, are using coal for their furnaces to heat. So that price, their heating bill, their energy bill just went up. So now we've got something. This is what's going to affect your 401. K folks, $74 Billion stock tax, which could hit nest eggs, including four on one case, IRAs and pensions. What does that mean? The Democrats are proposing a new federal excise tax on stock buybacks. Stock buybacks are known to help grow retirement accounts, and this tax could discourage companies from conducting buybacks negatively impacting retirement savings For the 58% of Americans who own stock. And over 60 million workers invested in a41401k. All right. So this could probably it's expected to reduce the value of the household nest egg retirement savings accounts, including 401.
Randy Sams :
K's IRAs and pension plans. So listen. Corporate sponsored funding sponsored plans made up 4.45 trillion in market value in 2017. So folks, a tax on buybacks, stock buybacks by corporations could also result in a significant. Costs for American companies, which will be passed on to working a household. So, folks, there's also $225 Billion in corporate income tax that will be passed on to households. So folks $225 Billion in increased corporate income tax which is going to be passed on to you and me. So folks, it ain't all rosy. It ain't all terrible. And I'm not trying to sound like Debbie Downer, but I want you to understand that these taxes that I just quickly went over. They are in effect. And it's going to start hitting your retirement accounts. It's going to start hitting a little bit harder than what we used to. What we saw in 2022. When you go to the gas pump, when you buy your pay your energy bills. A lot of you I talked to your energy bill, your electric bill, your gas bills are going up. So, folks, hey, thanks for listening. This is Randy Sams. I am your host. This is the end of segment two. We're going to be right back for Segment three again in Your American Retirement on 101 FM. The Answer will be right back. Hey, baby.
Producer:
Visit YourAmericanRetirement.com to schedule a free consultation with Randy today. And now back to the show.
Randy Sams :
Hey, welcome back, folks. Again, my name is Randy Sams. I am your host, Your American Retirement on 101 FM. The Answer. Thank you for joining us on this beautiful Saturday afternoon, folks. We are very thankful for all our listeners, for all of the people that have called 866 990 7664 or our local number 501 249 2343 or you've gone to the website YourAmericanRetirement.com And you've left us your contact information, you've left us information suggestions on what you would like for us to maybe talk about on some of the upcoming shows, because I understand that your retirement is very important to you. And guess what, folks? We take it very seriously. Also, it's my number one objective is to have you and your spouse, have you and your family set up for a secure retirement, a happy retirement, and not a risky retirement. So, folks, we're going to jump right into segment three. I'm going to call Segment three. Hit that delete button. We're going to talk about how to delete fees from your retirement plan. We're going to talk about how to delete taxes from your retirement plan. And we're going to talk about how to delete expenses from your retirement plan. But folks, I'm going to talk about right now how to delete risk. Some people say, well, how can I delete risk, Randy? You know, risk is something out there, folks. I can't delete or I can't eliminate all risk, but I can't help you eliminate risk when it comes to your retirement plan.
Randy Sams :
That's what I do. We all know that as we grow older and we are living longer, that we need to expect. It's called longevity risk number one, risk that we want to address and we want to hopefully eliminate for you and your family is longevity risk because if you live long enough, you're going to see a stock market crash. If you live long enough, you're probably going to have some health issues. If you live long enough, you're going to be concerned about running out of money, your retirement funds. So that's what we like to do. We want to eliminate longevity risk. So we want to take that risk word off of the table. And how do we do that? We like to use annuities. We like to use safe money products. So we want to delete that risk. So I'll give you an example very quickly. The gentleman that that I that I spoke earlier about, he was just outside of Memphis, Tennessee. I've been working with him for probably about nine months now. All right. So we met face to face and I took some information from him. Listen to a lot of what he wanted to do. Now, at the time that we first met, he was still working, but his plan was to retire in February or March of 2023. That still is plan. But what is biggest concern was losing money. Now. When we met in 2023, his retirement accounts were well over $1,000,000, but he had lost and he continued to see that it went down.
Randy Sams :
So his statements that he was continuing to to receive in the mail from his 401 K administrator and from his IRA administrator, they weren't in the positive, they were going negative. And he didn't like that. He was beginning to stress out because he had a plan to retire. So what he told me, Randy, I've been working for 46 years. It's time for me to retire and I've got to be able to stop. I've got to be able to eliminate the negatives that I'm getting on these statements. So, folks, we've met two or three, two times, three times last year, and we set up a plan for him. We talked about income, we talked about his Social Security. We talked about now he was not at a company that he had a pension, but he was going to have Social Security and he was going to turn on Social Security whenever he retired and he had his IRA account. And he also had a 401. K. Now, folks, during 2022, those plans lost 18%. So we still had quite a bit of money to be able to work with and be able to put a plan together for him. But his objective was to delete that risk. He did not want to continue to see his money go down, so we were able to put a plan together. That gives him the peace of mind knowing that he's going to have a guaranteed lifetime income. For as long as he lives.
Randy Sams :
No matter what the stock market does, it's guaranteed. Now. You can't beat that. All right, So we eliminated that risk. From his retirement plan. So now he's going to have a happy retirement because he knows that that paycheck is going to come in just like that Social Security check every month. And he is set for life. So, folks, that's how we delete it. That's how we worked with this gentleman. Yesterday and we have him set up for a happy retirement because, you know, what's good about it is that he also understands that if he passes away, he's going to be able to leave funds to his children, to his son and his daughter, which that can take those funds and. Help those grandkids. He loves his grandkids. But anyway, so that's what we like to do. So here's here's what I tell you. If you've lost more than you're comfortable with and your portfolio over the last year and you're looking for Answers, folks, give me a call. 866 990 7664 866 990 7664. Or local number 501 249 2343. We would love to provide you with a free consultation, complimentary, no obligation consultation, so you can call us again at that number or go to our website YourAmericanRetirement.com . Leave us your information and let's get started on a retirement income plan for you today. So what's it like to work with us? We want to provide that comprehensive consultation. We want to help eliminate some of the fees that you're paying.
Randy Sams :
We want to eliminate that risk of losing. From your retirement plan. We're going to help you cut unnecessary cost in your IRAs and your 401. Case delete button. And we'll also can help you with Medicare and maximizing your Social Security options. So, folks, we want to help you delete fees for your retirement. All right. 40% of your retirement portfolio or more, you all have heard the 6040 rule, 60% invested in equities and 40% in bonds. So, folks, listen to this. Bond prices move in the opposite direction of interest rates. Interest rates rise. Bond prices. Fall, interest rates fall, bond prices rise. So guess what kind of environment we're in, folks? Are the interest rates going down or the interest rates going up? So what does it do to your bond portfolio? So again, when interest rates rise, bond prices fall. So there is no guarantee. When you will be able to get your money back. So take advantage of the interest rate environment and reduce the bonds you currently hold in your portfolio with a fixed indexed annuity. Folks. By doing this, you'll delete the fees for that portion of your portfolio because there are no fees with a fixed indexed annuity. So, folks, here's here's what some of y'all I'm going to use. The gentleman that I listen to quite a bit, his name is Mr. Tom Hagner, and there are other economists out there that many of you may have read books or listened to. But here's what he says that if you take a 6040 blended retirement fund.
Randy Sams :
And you take a portion or all of the money that you have in bonds and put that money into a guaranteed income annuity guarantee. What that does is, number one is it increases your returns. Number two is it decreases your risk. Why? Because a guaranteed lifetime income annuity acts as a triple A rated bond. Okay. So no way around it. If you take some of the money that you have invested in bonds right now, which are probably falling and put it into a guaranteed income annuity, lifetime income annuity, it's going to decrease your risk and it's going to increase your overall returns for your portfolio. So help us help you delete that risk. So the new 60 over 40 portfolio, again is 60% stocks, 40% fixed indexed annuities replacing bonds 60 over 40. Still works for me, still works for you, but that 40% is in fixed indexed annuity bonds. All right. Annuities are safe. And fee efficient ways to generate a lifetime income stream that you will need to cover expenses throughout your 30 plus year retirement. So that's why my client in Memphis, they're just outside of Memphis, Tennessee. That's why he was so happy. Whenever we ended the appointment yesterday, we hugged each other. He had a big old tree in his backyard that he needed to cut. So we had to get the appointment over with. Everything was taken care of. But you know what? He had a big smile on his face.
Randy Sams :
And I said, Jean, so what's your what you're smiling about? He said, Randy, I'm happy. He said, I appreciate you coming and visiting with me, spending this time with me, putting together all these reports showing me what we could do to eliminate this risk. Because he said, You know what? Once we get this plan into effect, I'm not going to have to worry about what the stock market does. I'm not going to have to worry about paying these fees for these investment advisers that I'm having to pay, whether or not my account goes up or whether my account goes down. So we've eliminated that. All right. Again, he's no longer going to be an annuity to the investment advisers. He's now going to be able to have an annuity that gives him a guaranteed lifetime income. Man. It's great. I love doing it. I love doing it, folks. Hey, we've got a book I want to offer. I want to make that offer to you. Annuity 360 book. If you call that number 866 990 7664 or 501 2492343. Or go to YourAmericanRetirement.com , leave us your contact information folks I'd love to get this book to you. The annuity 360 book folks it's got it's great some of the chapters why you should consider investing into a fixed indexed annuity. Famous people who invested in annuities. You can create your own personal pension. That's what I call guaranteed income. The annuity is just right. The fixed annuity. The annuity that is just right.
Randy Sams :
These are just some of the chapters. Bond replacement with f i A That's chapter 16. So folks, again, if you're listening, go to the website YourAmericanRetirement.com . Give us a call on the toll free number 866 990 7664 or my local number 501 249 2343. Leave us your information Tell us you want a copy of that annuity 360 book and we'll get it in the mail to you as long as you leave us that information. Aha. Now, are you going to hit that delete button next? Randy? We're going to do delete taxes from your retirement taxes. Didn't we spend a little bit of time on today's show talking about what taxes are now going to go up? Beginning January 1st. So folks, taxes and retirement. The national debt nearing $31.5 trillion. We believe, like many others, that taxes are likely to go up in the future. I'm going to ask that question that I ask everybody. Do you feel like your taxes are going to go up or your taxes are going to go down? So folks that tell you what, I want to spend a little bit of time on this reducing taxes on this. So. We're going to take a little break. We're going to come right back. So I want to thank you for listening again. My name is Randy Sams. You are listening to Your American Retirement on 101.1 FM. The Answer where Little Rock comes to talk. We'll be right back.
Producer:
Big changes could be coming, and they may affect your retirement. I'm Matt McClure with the Retirement dot Radio Network. Powered by AmeriLife. Increases in costs, market volatility and fears of a possible recession. All have people who are close to retirement worried about the future. Some people who were considering early retirement are staying in the workforce, while others who had already called it quits are going back to work. Marketwatch recently published a list of eight big things retirees and pre-retirees should keep an eye on. Some of them are pretty obvious. Like number one, inflation. As the prices of goods and services continue to go up at rates not seen in four decades, just paying for everyday things could eat through your retirement savings more quickly than you thought. Another concern Social Security. The trust fund is set to be exhausted by the year 2034. Potential changes to save the program could have a big impact on your retirement years. Two items on the list have to do with savings. How much money to set aside for retirement and how to address a growing gap in that amount versus what most of us have actually saved. Yahoo finance contributor Vera Gibbons recently reported that the savings gap has been exacerbated by the pandemic, with a lot of folks dipping into their retirement accounts just to get by.
Vera Gibbons:
We are in an inflationary environment here, and some of the experts I spoke to said given the fact that costs are going up for just about everything, they expect more people to actually tap into their retirement accounts or contribute less this year. Also, keep in mind that people are still quitting their jobs at a record rate, and that group may also be tapping into their retirement accounts too, to cover their costs.
Producer:
Health care spending and drug prices are two more things on the market watch list of retiree concerns. And they could be impacted by the last two items on the list Diabetes, which continues to affect more Americans each year and uses up a good portion of the nation's health care resources and exercise, which could actually bring costs down by helping you stay healthier longer. So which of these items is your biggest cause for concern heading into retirement? That's a key question to consider. As economic uncertainty continues to cause headaches for us all with a Retirement dot Radio Network powered by AmeriLife, I'm Matt McClure.
Producer:
Are you interested in ways to protect and grow your hard earned money? You're American. Retirement is here to help. Here's Randy Sams.
Randy Sams :
Hey, welcome back to Your American Retirement. My name is Randy Sams. I am your host for today's show. Hey, I want to thank you for taking a little bit of time on your Saturday afternoon to hopefully listening and get some education. Folks, Again, we're SMMG Financial. You know what we want to do? We want to educate you and get you set up for a secure and a happy retirement and not a risky retirement. So that's what we do. Hey, 101.1 FM. The Answer is where we're at, where you're listening to us. We're a Little Rock comes to talk, folks. We're very appreciative and very thankful that you're joining us in today's show. Again YourAmericanRetirement.com go leave us your contact information if you'd like to be able to set up a free consultation. No obligation, folks. Take advantage of my 38 years in this business because I travel five states. I sit down with different people, just not here in Arkansas, but I'm in Tennessee, I'm in Mississippi, I'm in Louisiana, I'm in Texas. I got folks in southern Missouri. So I'm all over. So I love doing what I do when I'm able to meet with folks, husband and wife or single folks that have questions about getting ready to enter into retirement or retirement maybe five or six years down the road, folks. But they want to make sure that they've got a plan and they like to eliminate risk. They don't want to see their retirement funds continue to go down. So that's what we do, folks.
Randy Sams :
We want to hit that delete button, which is what we're going to continue to talk about in segment four here. We want to hit that delete button from your retirement plans, delete risk. So folks, delete taxes from your retirement is something that we want to talk about that we always talk about when we have a consultation. Again, with the national debt nearing three 31.5 trillion guys, $31.5 trillion, we believe, like many others, that taxes are likely to go up in the future. So one of the questions that I asked folks when I'm talking to them on the telephone or via email message, I'm going to ask you this question. Do you believe, will that taxes are going to stay level? Do you believe taxes are going to decrease or do you believe taxes are going to increase? You can Answer that as you want. To me, I believe taxes are probably going to increase. So folks with a Roth IRA, which is a vehicle that we can use, you are taxed when you contribute. So you're using after tax funds to contribute to a Roth IRA. So your money is protected from increased tax rate. So pay the taxes now and let it grow tax free. And any money that you would draw from that Roth IRA in the future is not taxable. So tax rates are out of your control, folks. You and I don't get to decide how much taxes we pay. Government spending continues to increase as the years go on.
Randy Sams :
Folks, if you were listening to segment two, we talked about the tax increases, the taxes that we that were just put into effect beginning January 1st, 2023, with this so-called Inflation Reduction Act, which is not going to be that way. So your taxes are going to go up. So, folks, listen, one of the things that we can do. Lives a Roth IRA. We can utilize an annuity to set that up, because here's what happens, folks. Let me give you an example. If you've got $400,000 in a 401. K and you are over the age of 59 and a half, you can do what's called an in-service distribution, which means that you can take whatever percentage is allowable in their plan documents. A lot of times it's all of it. Sometimes it may be 98% of it, but that's based on what your plan documents state and what they've stipulate in their 401. K plan documents. But if you've got 400,000, we could take a portion or all of that. If it's allowed and put that into an annuity, that allows a 10% annual withdrawal. Now, some folks might say, well, Randy, why wouldn't I take this 400,000 and just automatically roll that into a Roth IRA? Well, let me tell you why you don't want to do that. Number one is if you take the $400,000 out of your 401 K account, guess what that's going to do? You're going to have to pay taxes on that 400,000. Number two, it's going to drive you up into a higher tax bracket immediately.
Randy Sams :
So are you going to pay more taxes on that if you took it out in a lump sum? Don't do that. Listen to me. Don't do that. Stop losing money. If you did that, you would lose money that you didn't have to. So here's what we're going to do. We're going to take that 400,000. We're going to put that into an annuity, a growth annuity that allows us your 400,000 is protected, zero is your hero is never going to lose a dime. But we're going to take that 400,000, put it into that annuity that allows us to take withdrawals up to 10%. So the first year we're going to take 10% of that 400,000, and we're going to do what's known as a Roth conversion. We're going to put it into a Roth conversion plan. So the 40,000 that's taken out goes into the Roth conversion plan. You can pay taxes out of that 40,000 or you can put the full 40,000 in there and pay the taxes from another source, maybe a savings account or something else that you may have. And we're going to do that for the next ten years. So what we have done is we've taken the 400,000. Which is all taxable money. We've converted that into a Roth conversion plan. And that money has continued to grow. And at some point in time, when you decide to take withdrawals from that Roth conversion, those are tax free withdrawals. And guess what? With a Roth plan, a Roth conversion, there are no RMDs, so you don't have to start taking the money out.
Randy Sams :
You can leave that money as a legacy to your kids or grandkids if you want to, and that money is tax free to them also. So folks, just think about that. If you want to try to avoid taxes again when you do a Roth conversion. A little side note here. When you do a Roth conversion, you have to do that for at least five years before you start taking money out. So it's not something if you're 60 years old and you want to retire at age 62, then the Roth conversion is probably not a good plan. If you're 60 years old and you want to you want to retire at age 68 or 70. A Roth conversion would be a great plan for you because once you start withdrawing those funds, it's all tax free money. All right. So we want to delete taxes. So tax free growth contributions to a Roth IRA are made with after tax dollars. So all future growth in the account is completely tax free tax free withdrawals. Qualified withdrawals from a Roth IRA are 100% tax free folks. Do you hear that? Not 95% tax free, not 99% tax free, 100% tax free. On your withdrawals from a Roth IRA or a Roth conversion flexibility. Roth IRAs have more flexibility than traditional IRAs when it comes to withdrawals. Roth IRAs don't have required minimum distributions. And a side note, folks, from this Secure Act 2.0 beginning January 1st, 2023, if you are not already 72 years old, so you're going to turn 72 in 2023.
Randy Sams :
Guess what? They have now extended the requirement for you to take RMD distributions to age 73. I have a young lady that we just put a plan together. She was going to turn 72 in September of this year, if you're listening. Hello. But she was going to turn 72 in September of this year when I called her a couple of weeks ago. Actually it was last week we were getting all the funds transferred over to her annuity right now. I told her the good news that, hey, guess what? You're not going to have to take those RMDs beginning in September of this year. You can wait till September of 2024 when you turn 73. So that gives you a little bit of flexibility, folks, Those RMDs from a Roth IRA from a Roth conversion, you are not required to take those distributions. You can leave the money in that account for as long as you would like. So no age limit. Traditional IRAs have an age limit for contributions, but there is no age limit for contributions to a Roth IRA tax free inheritance. Now, this is a big one, folks. If you've got kids or grandkids, listen to this. Tax free inheritance, Roth IRAs. Can be passed. On to your heirs without them having to worry about paying taxes on that account, folks. Listen to that. Is that not fantastic? Okay, now there's only other.
Randy Sams :
There's only other. There may be others, but let me. This is what I do. If you're looking to leave a tax free benefit to your kids or grandkids. Roth IRA or a Roth conversion is the perfect vehicle for you to do that. Something else you can think about is a life insurance policy. Remember, the death benefit on life insurance policy is tax free benefit. So if you have 100,000 life insurance policy that you've left to your son, daughter, kids, grandkids, that 100,000 is going to be paid to them. And it's tax free because it's a death benefit. So a Roth IRA can be used in the same concept with the same concept tax free inheritance for your kids or grandkids. All right, folks, now let's hit another delete button. Let's delete expenses from your retirement. Now, you heard me already talk about expenses. So, folks. I'm a big believer. In. Zero fees. The first objective that I have with my clients when we meet and I learn what their plans are for retirement, what they want to see happen for their retirement. And I'm going to use an annuity to do that. The first thing I look at is, is there an opportunity for me to put my clients or put these potential clients into an annuity that has zero fees? All right. So stop and think about it, folks. You remember my story about an annuity. What is an annuity? One of the definitions of an annuity is a guaranteed stream of income. As long as you have your money with the investment houses, the investment advisors, the money managers, whether your money goes up or whether your money goes down, guess what? They charge you a fee.
Randy Sams :
So again, as long as they have your money AUM assets under management. You are an annuity to those people. So take my advice. Stop being an annuity to all these investment folks that they get their money, whether your account goes up or whether your account goes down and meet with me, Randy Sams, SMMG Financial. Leave me your information YourAmericanRetirement.com . Give me a call 501 249 2343 or toll free 8269907664. Let me take you out of being an annuity and let me help you establish an annuity for you and your family where you will have the peace of mind knowing that you will have a guaranteed lifetime income for you and your spouse. And if you want to do it tax free, then we'll set you up with a Roth. Conversion will set you up where you won't have to pay those taxes when you take those funds out. And we'll also set you up to where if you want to leave a tax free benefit inheritance to your kids or grandkids, we can do that. So, folks, hey, again, my name is Randy Sams. I am your host for Your American Retirement. I want to thank you for joining me on this Saturday afternoon. Again, Randy Sams, Your American Retirement 101.1 FM. The Answer we're Little Rock comes to talk. We'll see you next week.
Producer:
Thanks for listening to Your American Retirement. You deserve to work with licensed financial insurance experts who can offer sound strategies for protecting and growing your hard-earned money to schedule your free no obligation consultation. Visit YourAmericanRetirement.com today That's YourAmericanRetirement.com.
Producer:
Not affiliated with the United States government. Randy Sams does not offer tax legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or a specific result. All copyrights and trademarks of the property of their respective owners of their 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.
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