How to Remove the IRS and Government Volatility from Your Retirement Plan

5.12.23: Audio automatically transcribed by Sonix

5.12.23: 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 morning, central Arkansas. I want to welcome you to today's show. My name is Randy Sams. Of course, if you heard the intro, you know who I am. Want to welcome you to Your American Retirement on 101.1 FM. The Answer We're Little Rock comes to talk again. I am your host, Randy Sams, CEO, president of. SMMG Financial been in this business for about 36 years now. Enjoy every day of it, learning new things every year. Love to work with our clients. And hey, I want to thank you for listening, all our faithful listeners. I know there's quite a few of you out there. Tell all your friends and your family about our show. Tell them about this guy that's teaching you and educating you on retirement information, retirement options. Because remember, folks at SMMG Financial, Your American Retirement. We are focused. On addressing the major financial issues facing retirees and pre-retirees in America today. By helping people like yourself, our listeners understand and prepare for a secure retirement. Not a risky retirement, folks. You know, if you've listened to the show, what's my deal? We want to remove as much risk as we possibly can. Now, the only thing that I can really help you with is financial risk. All right. We want to sit down with you and put together a plan and see what you have. Listen to what your objectives are. And we want to eliminate as much of the risk in retirement that we possibly can. Number one, we're going to focus on what. Longevity risk.

Randy Sams:
Okay. People are living longer. Especially you married couples out there. Yes. Even you husbands. If you're married, the life expectancy of a married couple is a lot longer than it is if you are single. All right. Not saying that you single folks are going to die early or die young, but it's just statistical data shows that married couples are going to live longer. So we want to sit down with you and your spouse and put together a great retirement plan addressing the number one risk in retirement, which is longevity risk. Hey, again, folks, let's get this show started. Thank you for joining me on this Saturday morning. Hopefully your day has started off well. And everything looks rosy for the rest of the day. But I appreciate you joining and listening in. Hey, Today Show. Listen to this, folks. Kick the government out of your retirement plan. Kick the government out of your retirement plan. How Congress and the IRS are putting your golden years at risk folks. You're going to be able to listen to the show today. But if you want to let everybody else know in your family, hey, you can go to our website YourAmericanRetirement.com and you can listen to today's show. In any of our previous shows that we've recorded over the past year. And also we have a podcast. So wherever your favorite listening spot for podcast might be, YouTube, Spotify, whatever it might be. Go to our podcast. Again, we don't put the whole show on our podcast. We pick what we feel like, are specific, you know, highlight a couple of points during the show and we put those on our podcast to give people kind of an idea of what we're talking about and then hopefully generate enough interest to where you'll either get in contact with us or you'll go to the website again, YourAmericanRetirement.com and you'll listen to the full show.

Randy Sams:
But hey, we want to thank you for listening. Please don't hesitate to call us. Give us a call. We love hearing from our listeners and you guys that are going to the website and leaving me some messages as far as what your concerns are, some of the things that you'd like for me to maybe address on the show. I really do appreciate it. Again, we're more than happy to Answer any and all of your money questions during our consultation, but also if you leave me your contact information, I'll be glad to reach had a young lady that was driving through from Missouri a couple of weeks ago and she somehow ran across the show and she listened to it as long as she could. And then when she received when she got back to Missouri, she reached out and gave me a phone call. And I've sent her some information to complete. And we're going to do a follow up call here probably in the next couple of weeks to figure out what we might be able to do for her. But hey, again, thank you for listening. And again, to to title for today's show.

Randy Sams:
Our subject is kick the government out of your retirement plan. How Congress and the IRS are putting your golden years at risk. But folks, we're going to start off. A little story that's going to fit right into today's show. And this is nearly half of baby boomers have no retirement savings. Did you hear that? Nearly half of baby boomers have no retirement savings. More than 2/5 of baby boomers are nearing retirement with no retirement savings. So that fact may surprise you if you're a typical white collar worker dwelling in a corporate culture of near-universal retirement coverage, that what you're really taking care of. So you're encouraged to save a half $1 million or more before taking that gold watch. You know the stories you worked for so many years now you're going to retire. You've got that pension plan. You're going to get that gold watch and everything's going to be fine. But guess what? Many Americans work for smaller companies that don't offer retirement savings or are self-employed or are living paycheck to paycheck. If you remember last week's show, we spoke about that living paycheck to paycheck and how to make adjustments. Get yourself out of that situation. So you see, you think everyone works for Fortune 500 company and everyone has a pension plan. But that's not reality. You see, fewer than half of working age Americans have any retirement savings, according to census data for 2020. Savings rates rise with age. So in other words, the older you are, the more wiser you are and you begin to save, but only to a point.

Randy Sams:
So in the 55 to 64 year old boomer age group, 58% of Americans own retirement accounts. Folks, only 58%. And that's the problem. A newly retiree of age 65 can now expect to live 20 more years on the average. So, you know, 85, like I said, married couples, we're seeing your average is like 92 to 95. So a new retiree can now expect to live 20 more years and without a retirement account. Most retirees count on Social Security. Folks, that's a big no no. The average monthly Social Security check to a retired worker is around $1,800. The average household run by an American older than 65 and get this, spends more than 4000 a month. Now you do the math. If you think you're going to retire on Social Security alone, the average monthly Social Security check is around $1,800 and the average household. For Americans older than 65 is 4000 a month. That's called an income gap. So yet many people go into retirement thinking that Social Security is going to provide for them, folks. It's just not going to work. So a chasm of wishful thinking separates America's retirement goals from a retirement realities. All right. By one rule of thumb, retirement calculator workers should aim to save. Now grab your pen and pencil. Ten times their annual salary by age 67. So, folks, you do the math. You do the multiplication. Listen to that. Workers should aim to save ten times your annual salary by age 67.

Randy Sams:
So, folks. If you're single, making 50,000 a year, ten times, that's 500,000. So you your goal should be what, have 500,000 by the time saved by the time you're 67. If you're married. And both of you, let's say your your income together is 80,000 a year times ten. That's 800,000 for a household based on median incomes. All right. If the goal is to retire in a relative comfortable comfort, Americans assume they will need something in the range closer to a 1.1 million, according to a survey by Schroders, the asset management company. But the average retirement account folks listen to this was just over $100,000 at the close of 2022. So. That kind of creates a problem, doesn't it? So the median baby boomer household isn't doing much better with 134,000 in retirement savings in 2019. So about one third of the average retirement savings at that age. So, folks, you can see where we're in trouble. All right. Nearly half of baby boomers have no retirement savings. It's crazy. Nearly half of the private sector employees, 57 million Americans have no option to save for retirement. Folks, that's what we do at SMMG Financial. We want to sit down with you and we want to take you out of this situation. We want to see what you have. We want to work with you and put you in a happy and a secure retirement, not a risky retirement. So, hey, we'll be right back. Thank you for joining. You're listening to Your American Retirement. I'm Randy Sams again. We'll be right back.

Producer:
Miss, part of today's show, Your American Retirement is available wherever you listen to podcasts and online at YourAmericanRetirement.com . God. Are you concerned about market volatility, rising taxes, economic uncertainty and how it all could affect your future in retirement? Then tune in to Your American Retirement to learn how you can protect and grow your hard earned money. Your American Retirement. Every Saturday at 1 p.m. right here on 101.1 FM. The Answer protect your hard earned money today and schedule a free no obligation consultation now at YourAmericanRetirement.com . Are you interested in ways to protect and grow your hard earned money? Your American Retirement is here to help. Here's Randy Sams.

Randy Sams:
Hey, welcome back, folks. Again, I want to welcome you to today's show. My name is Randy Sams, and you're joining us on 101.1 FM. The Answer where Little Rock comes to Talk Your American Retirement. And want to jump right back in, folks, about what's happening with baby boomers having no retirement savings. So listen to this. Most retirement nest eggs are much smaller now than a year ago. This is done by fidelity. The average retirement account lost one fifth of its value in 2022, dwindling from 135,000 to 104,000. So it shows why it's really important for everyone, no matter how old you are, to have a diversified portfolio, folks. Okay. So we're picking up where we left off in segment one. What's going on with baby boomers and retirement plans? So among retirees, the average savings account dwindled. It decreased from 192,000 to 170 1000 in 2022. So it's the share of retirees with no savings jumped from 30% to 37%. Now, folks, what's really concerning to me is when I meet with folks and we're talking about what you have in a savings account, in the bank account, okay, Whether it be checking or savings, I don't meet a whole lot of folks that have 192,000in the savings account or 171,000 in a savings account. Now, they may have, you know, emergency fund. They may have half that amount or a fourth of that amount.

Randy Sams:
But very seldom have I personally met a lot of folks out there. Baby boomers getting ready to retire that have 192,000 in savings. So earlier generations of retirees counted on Social Security and employer funded pensions to deliver a steady income. You know, you work 30, 40 years. You decide you want to retire. You have the retirement party. They give you the gold watch and off you go with income from both Social Security and a pension. That doesn't happen today. Folks, less than 10% of employers today offer a pension plan to their employees. So that burden is now on the shoulders of the employer's employees. So Social Security has dwindled as an income source over the years and pensions are in decline more than ever, Americans do desire a comfortable retirement must squirrel away money in a retirement account. Yet nearly half of private sector employees, 57 million Americans, have no option to save for retirement at work. In other words, they're not offered a 401. K plan. They're not offered some kind of a profit sharing plan. So according to an AARP analysis, huge swaths of American public lack access to employer sponsored retirement plans. Listen to this. 78% of workers at companies with fewer than ten employees, 76% of workers who lack high school diplomas and 64% of the nation's Hispanic employers. Lack access to employer sponsored retirement plans. So when you get below 100 employees, the likelihood of a plan really goes down.

Randy Sams:
So that leaves those people to try to do an IRA on their own. And if they're in lower income, they're less likely to have a relationship with a financial institution to set that up. And they're more likely living paycheck to paycheck. So anyone can start a retirement plan. But for lower income Americans, it is easier said than done. So to make ends meet, more Americans are working into their 70s. The share of people older than 75in the labor force is projected to reach 11% in 2026, up from 5% in 1996. So, folks, not only are we living longer, but because we haven't saved enough, people are deciding to work longer. Okay. But even with those added wage earning years, the poverty rate among seniors reached 10.3% in 2021. Census data shows, which is the highest in two decades. So if you don't have Social Security, it would be well north of 40%, said Richard Fiesta, executive director for the Alliance of Retired Americans. So, folks, there's too many folks that are retiring today thinking that Social Security is going to be their retirement plan. It's not. Thank God for Social Security because a lot of folks out there would be below like I said, 40% of the folks would be below poverty level without the Social Security coming in every month. So the savings shortfall leaves many older people unprepared for the medical costs that come with old age.

Randy Sams:
So, folks, you got to address long term care, and that's something that we do. Okay. You might as a retiree. Consider postponing Social Security benefits so you can claim at age 62. But the monthly check almost doubles if you wait until 70. So the extra money is a better deal than you can get pretty much anywhere else. So between age 62 to 70, that income almost doubles. If you wait till your full retirement age of, say, most folks are going to be either 66.5 or maybe 67 now. That's about 30% higher if you wait to age 67 versus starting at 62. All right. So, folks. You got to have a plan. You got to set yourself up to realize we're living longer. A lot of us haven't saved for retirement, and that's what we want to do. Folks, you need to get in contact with us. And let us help you have a happy and a secure retirement. Not a risky retirement. So listen to this. More than a dozen states have adopted retirement saving plans for workers at companies that don't offer them meaning. Other states consider auto IRA programs. They're basically making it a goal. To reach all 57 million Americans who can't save for retirement at work. So they're. Offering these workers. In order to plan something to try to help them out, folks.

Randy Sams:
So you got to start changing your focus to realize, hey, we are all going to retire at some time. And folks, as I've said before, I've yet to meet a retiree that doesn't need income. So give us a call. (866) 990-7664. Or go to the website YourAmericanRetirement.com . Leave us your information. We'd love to sit down with you and we'd love to get you out of this situation. Don't be one of those baby boomers that are going to go into retirement with no savings or little savings at all. Hey, a little shout out for you for listening today. So you'll get in contact with us. You can receive our free report. 23 retirement cost cutters for 2023. So it's filled with ideas for hanging on to more of your hard earned money. And it's yours today if you'll get in contact with us again. (866) 990-7664. Or go to YourAmericanRetirement.com and leave us your contact information. We'd love for you to set up a free consultation. Let us sit down with you. And we'll go from there. Hey, a little market update. You guys know what's going on out there. You know, we've got the debt ceiling we're going to talk about also on the show. But before I go into the market update, listen to this financial wisdom quote of the week.

Producer:
And now wholesome financial wisdom. It's time for the quote of the Week.

Randy Sams:
The government's solution to a problem is usually as bad as the problem. I like that one. The government's solution to a problem is usually as bad as the problem. And that comes to us from Milton Friedman. Mr. Friedman was an influential American economist. He was a Nobel laureate known for his advocacy for free market capitalism and limited government. I like that Friedman's wit and sharp insights continue to make him a memorial figure in the world of economics. Everybody knows who Milton Friedman is, so the government's solution to a problem is usually as bad as the problem. All right. It's kind of like Ronald Reagan said one time, I believe he said, I'm from the government. I'm here to help. That doesn't work, does it? All right. Market update, folks. Increase rates and the national debt. Uh oh. National debt. Debt ceiling. You want to solve the debt ceiling? Folks. But listen to this. Interest rates go up again. The Federal Reserve raised its key short term interest rate by a quarter percentage point last Wednesday and signaled it could now pause if inflation continues to ease as expected. In a statement, the central bank removed previous guidance that some additional policy firming rate hikes may be appropriate to lower yearly inflation to its 2% target.

Randy Sams:
So we may see again again, we may see some additional rate hikes. If it's necessary. So instead, it said its policy making committee will closely monitor incoming information and assess the implications for monetary policy. So the interest rate Fed reserve raised the interest rate last week. So if you're interested in taking advantage of historic interest rate environment, get in touch with us. We can show you investment options that help pre-retirees and retirees build stronger income plans than ever before. Certain income based investments also feature bonuses. So if you have questions about your current financial situation as you look to build a retirement plan, give us a call. (866) 990-7664. Or schedule your complimentary consultation online. YourAmericanRetirement.com . Leave us your contact information and we'll be we'll get right in contact with you. All right. Now, we already mentioned something about the national debt. Let's look at the national debt. Here's the little update. I think today when I'm doing this recording, I think President Biden is meeting with the leaders of Congress and they're going to see guess they're going to bat the ball back and forth. Don't know if anything's going to happen or not, but I think it's just, you know, a political ploy.

Randy Sams:
We'll see what happens. You'll know something by the time you hear this show on Saturday. All right. National debt update, folks. It's 31.7 trillion and counting. Did you hear that? That's trillion with a T, 31.7 trillion and counting. I wonder what credit card they use, folks. They're racking up some reward points on that debt, aren't they, On that amount? So listen. This debt affects everyone. You may have concerns about the debt and you need to have concerns about the debt. I have concerns about the debt people that we speak with. Uh, it's something that has to be addressed. And when we come back. Stay tuned now. Don't want you to leave. Stay tuned. Come back to the next segment it into the three reasons we should all be concerned about the national debt and again, the national debt. 31.7 trillion and counting. All right. So again, I wonder what credit card they use. So again, come right back. We'll get right back into it. Three reasons we should all be concerned about about the national debt when we return. Hey, Randy Sams, you're listening to Your American Retirement on 101.1 FM. The Answer.

Producer:
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.

Producer:
Even with inflation, eating at home is often cheaper than dining out. I'm Matt McClure with the Retirement.Radio Network Powered by AmeriLife. Food costs are up for everyone these days and when you get sticker shock at the grocery store, you may be tempted to consider dining out more often. But think again. Prices are up at restaurants too. Chef David Burke recently told CNBC some of the reasons why not.

David Burke:
Changing the menu Not one menu, but printing menus every day. Paper goods are through the roof to gloves that we wear in the kitchen are through the roof, so there's a lot of deep fryer oil. The oil that goes into the deep fryers, which we don't really look at, we always look at the protein prices that all of those little all of those ancillary things are through the roof with pricing.

Producer:
Energy costs are also having an impact on restaurants. Not only have they driven up the price of shipping food from producers, but gas prices are driving up labor costs as well. Burke said employees who live farther away from restaurants are asking for pay increases to offset the increased cost of driving in every day. So cooking at home will still be cheaper than dining out. In most cases. Many large and local grocery stores offer discounts for seniors, but if you're not able to drive, you can also order groceries online and have them delivered directly to you. If you do decide to dine out, say, for a special occasion, try to find a restaurant that offers senior discounts. So have you thought about cutting back on dining out? It's a key question to consider, and it's one of the 23 retirement cost cutters for 2023 with the Retirement.Radio Network powered by AmeriLife. I'm Matt McClure.

Producer:
To get your free copy of 23 Retirement cost cutters for 2023, reach out to Randy at (866) 990-7664 or visit the website YourAmericanRetirement.com .

Randy Sams:
Hey welcome back folks. Your American Retirement 101.1 FM The Answer Where Little Rock comes to Talk. I am your host, Randy Sams, President, CEO of SMMG Financial. I hope you're enjoying today's show. As much as I'm enjoying recording it and putting all this information together. Folks, we just got through speaking about the national debt. We gave you what the total was, 31.7 trillion and counting. And those of you who heard that and joined again for this segment, we're about to go into three reasons why we should all be concerned about the national debt. Number one, economic stability and the future generations. That's a big one for me. Okay. Future generations, folks, what are we doing to our children and our children's children and our children's children's children? And you can keep adding to that if you want to. So the national debt puts the nation's economy economic stability at risk. It can lead to increased interest payments. Hello? Potentially requiring higher taxes. Hello. And reduced public services. So this burden falls on both the current and future generations. Limiting ability to invest in essential areas and hindering economic growth. Right, guys, if you were listening to the first segment. And we talked about baby boomers not having retirement. And you remember what I spoke about. Savings accounts and retirement accounts. Have gone down over the last couple of years. All right. One of the reasons why is because what we're dealing with, what we just spoke about.

Randy Sams:
The economic stability or instability. All right. It's not secure. That's why our interest rates are high. That's why our food prices are high. That's why it costs more to live today than it did three years ago. Two years ago. One year ago. All right. So remember, this burden falls on both the current and future generations. Focus on that. Your kids, your grandkids, your grand great grandkids. Just keep on going. It is hindering economic growth because of this debt and it's not getting paid off. All they're doing is making It'd be like having a credit card, folks. And all you're doing is paying the minimum payments. I'll talk about that in just a second. Interest payments and opportunity costs. Woo hoo! High levels of debt result in a significant interest payment. Really? That consume a substantial portion of the federal budget. Folks, it's just crazy. It's crazy. All we're doing is paying the interest. And that consumes a substantial portion of the federal budget. These payments divert funds from productive investments and critical social needs, such as health care and education. How about infrastructure? How about building some new roads? Some new interstates? Some new bridges? Man. But we're having to pay just the interest off of this debt. Listen to this. So this can hinder the country's ability to remain competitive, innovative, and support its citizens effectively. Exactly. Servicing the debt is one of the federal government's biggest expenses. Folks, listen to this now.

Randy Sams:
Servicing the debt is one of the federal government's biggest expenses. Net interest payments on the debt are estimated to total. You got your pens and paper. $395.5 billion this fiscal year. Once again, the interest payments on the debt are estimated to total $395.5 billion this fiscal year, which is a 6.8% of the federal outlays. 6.8% of the federal outlays. Goes to pay the interest only towards the national debt and that it comes from the Office of Management and Budget. Folks, I said it earlier. Man, if you were getting reward points for just for for those payments, you could do a lot. You could do a lot of traveling, couldn't you? But see, the thing is, most people with credit cards, if they're smart, they use the credit card wisely. And at the end of the month, when they get the credit card bill, they pay that credit card bill off, but they still get their reward points. All right. Unfortunately. Our government doesn't see it that way. If we ran our households like the government runs the government, our politicians run the government, we'd all be bankrupt. Number three, the impact on future economic growth. So a growing national debt can lead to a higher interest rates, making it more expensive for businesses and individuals to borrow money. This can reduce investment and economic activity impacting job creation, wage growth and overall prosperity. Folks, I'm going to hit on this one just a little bit.

Randy Sams:
I know some young families out there that, you know, I can remember way back when when I got married and we started a family. You know, you're it's your objective. You want to buy a house. I spent the night outside of what was Benton State Bank at that time because I heard there were some grant money available that was going to be at 10%. Now, you tell me this Answer this question. How many of you all would sit outside the bank overnight to be the first in line for a 10% mortgage? I don't think many of you would. Okay. We did back then. I did back then because mortgage rates were 15, 16, 17%. What are they today? Almost 7%. Folks, there's a lot of young families that would love to own houses, but because of the mortgage rates, the interest rates being charged on mortgages today. It just puts it out of reach. All right. I know of people that have been in the mortgage business working for mortgage companies that have been laid off or terminated because they're not busy enough. They can't keep them busy because nobody's buying houses or they're not refinancing because of the interest rate. So, folks, the national debt can lead, and it has led to the higher interest rates that we're seeing it make today, making it more expensive for businesses and individuals to borrow money. Okay. Concerning facts about the national debt. Interest payments on the national debt this year are expected to be 100 billion.

Randy Sams:
Dollars more than the government expects to spend on veterans benefits and services. Folks, are you listening to this? The national debt. $31.7 trillion. Interest payments only. This year are expected to be $100 billion more than our government spends on veterans benefits and services. Shouldn't happen. Veterans should be first. But that just shows you what we're dealing with, folks. It's got to be addressed. All right. Interest payments on the national debt this year are more than the government will spend on elementary and secondary education. Disaster relief. Agriculture, science and space programs, foreign aid and natural resources and environmental protection combined. Do you hear that? The national debt, just the interest payments on the national debt this year. Are going to cost us more than what the government spends on elementary and secondary education, disaster relief, agriculture, science and space programs, foreign aid, natural resources and environmental protection combined. Folks, that's outrageous. So listen to this. What do you do? You get your credit card and you only ever pay the minimum. Were you ever going to pay off that debt? It's going to take you forever. So if you get your credit card bill and all you ever do is pay the minimum, you're never going to pay that debt off. So what about the national debt? What's our government doing? They're making interest payments only. Nothing towards the dead. The debt is going in the wrong direction.

Randy Sams:
Why? A lot of it's politics. Why are we spending so much money? Why are we sending so much money overseas when we need to address things? Here in the United States, Folks don't have any qualms or issues or problems with helping other folks. But when you see what's happening in the United States today with some of our citizens, whether they be retired, whether they be veterans. Whatever classification you want to put them in. People need assistance. They need help. And when we're sending billions and trillions of dollars overseas, that probably is making its way back into some of these politician's back pockets somehow, family members, whatever it might be, we need to focus on the United States. We need to fix our house. Not shut off giving to foreign aid or helping other people. But you got to realize, folks, we are in need. People are hurting today. And I hate to see folks getting close to retirement that I know they're going to have to continue to work in their 70s because they can't afford to retire. And that's because the interest rates are high. Everything costs more today and it's because of the national debt. Folks, it's got to be addressed. Sorry to go down that political rat hole or rabbit hole, but anyway, I'm back off my soapbox. Now, we've talked about the national debt. We've talked about how it affects you. We've talked about not having a lot of baby boomers having retirement plans or retirement savings.

Randy Sams:
So now we've got to talk about something else. Don't count on Social Security as your retirement plan. Folks, listen to that. And meet with folks. It's just unreal, the number of folks that I meet with and say, So what's your retirement plan? And the first thing they say is Social Security. Folks, if you remember my story earlier today, the average monthly Social Security check is $1,800. So ask yourself, how many of you could retire on $1,800 where you're at right now. And again, along with that $1,800, the average for an American retiree aged 65, the average monthly expenses is 4000. So we have an income gap, folks. We don't want that. So don't count on Social Security. I don't want you to look at Social Security as your retirement plan. Yeah, look at Social Security to supplement, but it should not be your retirement plan. All right. It's just crazy. So. Everyone is going to have to make adjustments because if we don't. If we don't do this now, it's going to affect every one of us. So, folks. We're going to come right back and I'm going to tell you why you should not count on Social Security as your retirement plan. It can be a supplement to your retirement plan, but it should not be your sole retirement plan. Again, Randy Sams, Your American Retirement on 101.1 FM. The Answer will be right back.

Producer:
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..

Producer:
With age comes wisdom and senior discounts. I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife As the old saying goes, everything gets better with age. It's true of a fine wine, a happy marriage and opportunities to save money. People of a certain age can get discounts ranging from 5 or 10% to 25% or more at restaurants, shops and other businesses. Many times they'll promote those extra savings. But Jim Miller, senior editor of Savvy, told Oklahoma's News four, Sometimes you have to be proactive. So the first.

Jim Miller:
Thing is, is you always need to ask, because a lot of businesses and organizations offer senior discounts, but they don't advertise them. So don't be shy about asking.

Producer:
To save time. You can search online for lists of up to date senior deals at large retailers like Amazon, Kohl's and more. If you're willing to dive a little deeper, you can find more discounts in a variety of other places. And if you're looking to stay healthy, Silver Sneakers is a program that provides fitness classes for those on Medicare at no cost. That's right. You don't get a bigger discount than free. So are you taking advantage of the big senior discounts you're eligible for? That's a key question to consider. And it's one of the 23 retirement cost cutters for 2023 with the Retirement.Radio Network Powered by AmeriLife. I'm Matt McClure.

Producer:
Welcome back to Your American Retirement. Here's Randy Sams.

Randy Sams:
Hey, welcome back, folks. Again, my name is Randy Sams. I want to welcome you to Your American Retirement on 101.1 FM. The Answer. I want to thank you for joining us today. Hopefully you've taken some good notes on today's show, how we got to get rid of the government out of our retirement plans. All right. We've spoken about baby boomers not having a retirement savings account. How many baby boomers don't have retirement savings account or don't have enough to retire on and they have to work? We've talked about the national debt go up, interest rates go up. It cost us more to live today than it did ten years ago, five years ago, two years ago, we got to address the national debt last segment. Why You should not count on Social Security as your retirement plan, folks. In late March, the Social Security Board of Trustees released the annual report on the financial status of Social Security trust funds. These include the trust funds for old age and Survivors Insurance, OAS and Disability Insurance Dei. According to this report, the combined assets reserves of both the OAS and the Dei funds will be depleted by 2034. So if Congress does not act. Before then there will only be enough revenue to pay for 80% of scheduled benefits. Folks, you remember what I said in the closing of last segment. We've got to address the national debt. We have to address Social Security. All right. It's not going to go away.

Randy Sams:
So we have to address it because those of us who have worked all our lives, those of you who are listening to this show and you're still working and you're still planning on working another five years, ten years, 15 years, 20 years, whatever that might be, you realize that Social Security is something that you've been paying for. All year as an employee. Okay. And to have the concern that it might not be there when I retire. That shouldn't be. Folks. So the old Age and Survivors Insurance Trust Fund, which pays Social Security, retirement and survivor benefits, will be able to pay scheduled benefits in a timely manner through 2033 with 77% of benefits payable. What would happen if Social Security runs out in the United States? So even if the trust fund is depleted, the Social Security Administration, SSA will continue to collect payroll taxes from workers and their employers, allowing the program to pay for most of the benefit, experts say, per a report by CBS News. All right. So they're going to continue to tax workers and their employers allowing the program to pay most of the benefits. However, if the program ran out of money, there would be a trust fund deficit as retirees could receive lower Social Security payments affecting millions such cuts could prove devastating for millions of older Americans, people with disabilities and children who receive benefits. It seems very likely that the Social Security trust fund will run out of money in or around 2033.

Randy Sams:
However, legislatures have proposed preventative measures, including raising the retirement age to 70 years or increasing taxes. So, folks, listen to this. I've said this before, and I'm going to point my finger at Democrats. All right. I'm not trying to step on your toes, but over the past few months, you know, we're getting into the election cycle. We're getting into who's going to run for president and who's going to run for Senate anyway. They're pointing fingers. And the Democrats big thing is the Republicans want to cut your Social Security legislatures. The folks in Washington, DC have got to take some measures and address Social Security. So is raising the retirement age to age 70 and increasing taxes? Nobody likes to hear that word increasing taxes. But how are you going to pay for it when you're 75 years old? That could be five years from now, could be ten years from now, could be two years from now or 75 could be behind you. The last thing you want to hear in 2020 and 2033 or 2034 is that we're going to have to cut your Social Security by 25 or 30%. That's not what you want to hear, is it? So if that's not what you want, the next time you hear someone use the Social Security, I'll say hand grenade in, whether it be a Republican against a Democrat or a Democrat against a Republican, you need to be smart enough and realize that somebody somewhere, at some point in time, we're going to have to sit down and address the Social Security trust fund unless we want it to be depleted by 2033 or 2034.

Randy Sams:
So many have been critical of Social Security, not helping retirees keep up with true rates of inflation. That's another issue. So here's a recent history of cost of living adjustment. So folks, in 2015, there was no cost of living adjustment. You know why? Because there was probably no inflation or if there was, the government didn't do their job. In 2018, the cost of living adjustment was 2.8%. In 2020, the cost of living adjustment was 1.3%. In 2021, the cost of living adjustment was 5.9%, and in 2022 the cost of living adjustment was 8.7%. Now, folks, the government's not giving us the cost of living adjustment on our Social Security checks just out of the goodness of their heart. Wish it wasn't so, but it is. They're giving it because it's in the law that they basically are. If inflation is 5%, then your cost of living is going to be about the same. That's why you see in 2023, that's why you see the 8.7% cost of living adjustment. It's not because of the goodness of their hearts in Washington DC. It's because inflation was so high last year that the cost of living adjustment was high. This year. What's it going to be for this year going into 2024? I don't know. But if you're interested in maximizing your Social Security benefits and strengthening your retirement income, you need to have a plan so our listeners can always receive a complimentary consultations.

Randy Sams:
And Social Security is one of the things that we look at. We look at your Social Security income for yourself and for your spouse. And we put together an income report and income plan. Okay, So give us a call. (866) 990-7664. Or go to the website YourAmericanRetirement.com . Leave us your contact information. We'll reach out touch base with you have a conversation with you. And if it works out, we'll set up a consultation and we'll talk to you and put together a good retirement plan for you. We can provide you with a Social Security maximization report and help you establish your own separate from the government or workplace personal pension plan via guaranteed lifetime income Guaranteed Income Annuity five Steps to Master your Cash Flow and Create a Budget Number one. You gotta understand. Well, this isn't number one. I just added this to my little notes here for you to understand and create a budget or cash flow. When you're getting ready to retire, folks, you need to understand the three phases of retirement. You got your go go years, you got your slow go years, and you got your no go years. Of course, your go go years is when every day is Saturday and every hour is happy hour. You want to take cruises, you want to join the country club, everything is great. And then you enter into the slow go years.

Randy Sams:
You can still do some of the things that you used to do in your go go years. You just don't want to or as do them as often as you can. All right, so you're still going, but not as often as you used to in your go go years and then your no go years, folks, is basically when you're sitting in the rocking chair on the front porch drinking iced tea, you're not leaving the building until you're leaving the building, if you know what I mean. All right. So if you understand the three phases of retirement, now, we can get into the five steps to master your cash flow and create a budget. Number one, assess your financial landscape, gather all relevant financial information, including income expenses, debt and savings. Take note of irregular income sources and any significant financial obligations that you may have. Understand, your current financial standing starts with creating a household balance sheet that will serve as a solid foundation for budgeting. Number two, set clear financial goals in retirement. What do you want to do during your go go years and your slow go years? So set financial goals. Reflect on your short term and long term aspirations. What do you want to achieve? If you want to take trips or you want to take cruises around the world, or are you wanting to drive to Arizona or see the Grand Canyon or, you know, go to California, see the beaches, makes a difference in your planning, folks.

Randy Sams:
Define your specific financial goals with measurable amounts and timelines. Goals can include saving for emergencies, which we all should do, paying off debt or investing for the future. Hey, which we all should do. Number three track and categorize your expenses. Keep track of your expenses diligently for at least a month. Keep track of it, folks. Where is my money going? Find out where you're spending those dollars and those pennies. Categorize expenses into broad categories such as housing, transportation, groceries, entertainment, excess, you know, excetera, excetera, excetera identify patterns and areas where you can potentially make adjustments. Folks, you got to figure out where we can cut the fat. Am I spending too much money going out to eat? We all love the restaurants that we have today. More and more restaurants are coming into central Arkansas, and that's great. But take a look and see how much you're spending to go out to eat for dinner or lunch or whatever. Is that someplace that you can make a cut? Don't know. But if you see some area that you need to make adjustments, make those adjustments, folks, but you got to track and categorize your expenses so you'll know where your money's going. Allocate your income, prioritize essential needs first, such as housing, utilities, groceries and debt payments. Folks, this is something that we focus on when we do our free consultations with you and your spouse. Okay? This is where guaranteed income comes into play for you and your family.

Randy Sams:
Focus on your basic needs first, get your needs, groceries, housing, utilities, debt. You got to have guaranteed income if you want to remove the stress from your retirement years, make sure that you have enough guaranteed income coming in for you and your spouse during your lifetime, his or her lifetime that you've got those basic needs taken care of. You got to focus on that. Number five, work your plan and review and adjust regularly, frequently check in on your budget to ensure it aligns with your goals and financial circumstances. Identify areas of improvement and make adjustments. Adapt your budget as your life evolves, Embracing new opportunities and challenging challenges following these steps will help you gain a clearer understanding of your finances, set meaningful goals, and make informed decisions to achieve financial stability and pursue your aspirations. Let us help you set yourself up and realize what you're going to do in retirement. Make sure that we have your basic expenses covered in your retirement years. We want to take care of your needs, your basic needs, and then we can address your wants. Those cruises, the golf tournaments, pickleball, whatever you want to do, needs first and then once. Hey, folks, my name is Randy Sams. I want to thank you for listening to today's show. You're listening to Your American Retirement on 101.1 FM. The Answer where Little Rock comes to talk. We'll talk to 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 are the property of their respective owners. AmeriLife 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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