How to Start Planning for a Successful Retirement

5.19.23: Audio automatically transcribed by Sonix

5.19.23: 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, everybody. I want to welcome you to today's show. Thank you for joining me. My name is Randy Sams. I am president CEO, SMMG Financial, and I want to welcome you to Your American Retirement on 101.1 FM. The Answer We're Little Rock comes to Talk. Hey, again, thank you for joining me on this Saturday morning. Hopefully your day has has gone well. I know it's kind of early in the morning, but hey thank you for joining. Want to give a shout out to all our listeners, to the folks that I know that are frequent listeners, listeners that you've not only listened to me and sent several comments, good comments, good suggestions, but you've also told your friends and family about us. So I want to thank all our local listeners here in the Little Rock area, central Arkansas, Benton Bryant, Conway You know, you've you've called me like I said, I told you a story last week about a young lady that actually lives in Missouri, and she was visiting some family in Malvern, Arkansas. And as she was driving through on a Saturday morning, she turned on 101.1 FM, the Answer, and she heard Mister Randy Sams, Your American Retirement radio.

Randy Sams:
And she listened to the to the show all the way through until she couldn't pick it up anymore. And so when she got home, she called us. So again, thank you for listening. Tell all your friends and family, you know, we have a podcast now, guys. Our podcasts are a little bit different. We don't have a 30 minute or a 40 minute or a one hour podcast. We like to take little snippets, you know, one minute to minute, three minute segments of our show. Some of the most important parts of the show that we feel like very, you know, as far as information goes, just to kind of pique your interest. And then hopefully from that podcast, you're going to go to YourAmericanRetirement.com and you can listen to the entire show. You know, if you ever miss one of the shows again, you can go to the website YourAmericanRetirement.com and you can click on past recordings or past shows and it'll have every show on there that we've done since last year. So again, thank you for all our faithful listeners. Again, our podcast is available on YouTube, Spotify, whatever your favorite choice, your favorite vendor is for podcast. So again, don't hesitate to call us. Give us a shout out. You know, you can reach me by phone.

Randy Sams:
(866) 990-7664. Is the toll free again (866) 990-7664. Or my direct number my cell number 50124923435012492343. You can also text or you can go to the website. So folks, just give us a shout out. Let us, you know, kind of give us a thumbs up. Let us know you're listening. Kind of give us some of your thoughts. Again, I've got a lot of good suggestions. Some of the things we're going to talk about today are suggestions that we've received from some of our listeners. And so thank you for doing that. So leave us your information. We'd love to be able to get in contact with you and hopefully with the information that that you've heard over the past, you know, shows we've done over the past year or today's show, you'll give us a shout out and we'll be able to meet each other face to face and maybe do a free consultation. Hey, for our listeners today, if you'll get in contact with us again, you know how to get in contact with us. Call the toll free number or go to the website YourAmericanRetirement.com and you can receive a free report. So what we've got folks the reports available to you. Listen to this. These are reports that if you'll just give give me your information, leave me your information. I can text them to you. I can email them to you. I can mail them to you.

Producer:
But listen to the reports that we have available to you. One we're focusing on today is 23 retirement cost cutters for 2023. Okay. Saving you money. So 23 retirement cost cutters for 2023, saving you money. But we also have available bank failures. Too big to fail the widow's tax, how to plan and prepare in advance tax free investments two times the Tax Savings Secure Act 2.0. What it means for your retirement. Really good information and bond replacement. Eliminate fees and establish your own personal pension. So folks, we have those reports available to you. Again, if you'll give me a call. (866) 990-7664. Leave me your information that you want one of those free reports, just pick out which one you want. We'll get it to you or your American. Retirement.com and we'll get those reports to you. Hey today's show folks thank you for joining again. How to get started with retirement planning. Whew man I bet some of y'all wish we'd have had this conversation five years ago or ten years ago. Don't you know when I meet with people that are getting close to retirement and they said, Man, I wish we would have been able to do this a few years ago. Well, what's stopping you from starting right now? So today, show how to get started with retirement planning, proper preparation for your golden years. All right. So, folks, you asked me what we do at SMMG Financial, Your American Retirement.

Producer:
You know, we work with retirees or pre-retirees facing the issues that you're going to hear in America. And we want your retirement issues that we want to be able to sit down with you and educate you and help you to understand and prepare for a secure retirement, not a risky retirement. That's what we do at SMMG Financial. Slash Your American Retirement. We want to educate you folks. You know, some people say, well, you're in sales. No, I'm an educator. That's what I look at myself as, as my job. My responsibility to you is to educate you on the options that you as a pre-retiree or someone who's in retirement right now. What options do you have? How can we set you up for a secure retirement? Not a risky retirement. I like to use the terminology, a happy retirement, and that's what we do. One of the first things when we talk about retirement, I want to ask you, what path will you take in retirement? Okay. So what path will you take in retirement? So listen to this. When considering your budget in retirement, there are three general paths people take those who spend too little, those who spend too much and those who identify the optimal spend level. That kind of sounds like Goldilocks of retirement, doesn't it? You know, like Goldilocks, the the porridge was too cold or the porridge was too hot. And then all of a sudden she got the baby's porridge and it was just right.

Producer:
Well, maybe that's what we got to we got to look at. Okay, we want to set you up to where we identify the optimal spend level. So, folks, you've heard me tell stories about folks that I've meet with. You know what you do. You work for 30, 40 years, you retire, you have a retirement plan. You have that retirement, you know, celebration. You get the gold watch, fictitious gold watch, and you're off on your own. You've worked all those years to accumulate your retirement funds, and you're doing that because you've got these big plans in retirement. What do I want to do, man? I want to join the country club. I want to take cruises. I want to travel. You know, I want to travel United States. I want to go to Hawaii. I want to go, you know, what are your plans? But then all of a sudden you get concerned about spending too much money and you don't go do anything. So those people who spend too little and then those people who spend too much, those are the ones that, you know, you took that trip and you forgot to look at the gas gauge. And before you know it, guess what happens? The gas gauge is getting close to empty. You know, you you know, you're going to run out of gas. You just don't know when. And unfortunately, there's a lot of people in retirement that because of certain circumstances, because of sequence of returns, because your money was in the stock market and it fell tremendously and you're still taking money out, you know you're going to run out of money.

Producer:
You just don't know when those who spend too little, those who spend too much and those who identify the optimal spend level. So people who spend too little often live in constant fear that they will run out of money. You forego the fun things many of us associate with retirement like trips, seeing the grandkids, golf club memberships, you know, just what I said, but also the little things like a new pair of reading glasses or a healthy food at the grocery store. So, folks, here's what happened. You've got all these big plans that you've had getting up to retirement, getting to retirement age, and then you retire and then you're concerned about spending all your money. You want to be able to leave something for the kids. So all those big plans that you had leading up to retirement, you don't do anything. And when you pass away and you leave all that money to the children, guess what happens? They're the ones that join the country club. They're the ones that take the cruises. They're the ones that take the trips. All right. So I want you to be able to spend your money. It's your money. You spend it. You've heard me say this before.

Randy Sams:
That's why I use life insurance. You want to leave money to your kids or grandkids, leave them a legacy through a life insurance policy. All right. The death benefit is tax free. And that gives you and your spouse the opportunity to go spend all the money that you want. Okay. Now, people who overspend risk running out of money. And forfeiting the lifestyle they desire as they grow older. So a recent survey found that households led by adults over 65 with debt have increased from 41.5% in 1992 to over 60% in 2016. So with life expectancy nearly doubling in the 20th century, overspending is a serious risk for many Americans. So income planning can be a great way to ensure and secure your optimal spend levels. Enjoy. A comfortable lifestyle. Free from the burdensome financial anxieties. Protection is the base to a good income plan. So the so that regardless of the market ups and downs, essential expenses are covered. So, folks, that's what we want to do. Okay. We want to meet with you. We want to set clear retirement goals. You want to pay for certain things, let's set those goals. We want to calculate a monthly retirement budget. Distinguish between your essential needs. Those are your basic needs, your wants, and your wishes. Cover your first shorthand for essential. You got your mug, your mugs. Those are your essential. Expenses, mortgages, utilities, groceries. And then let's categorize your wishes and your wants.

Producer:
So let's identify any so you know, your security gap. That's the difference between your guaranteed monthly income and the essential expenses you must pay. So do you have a pension when you retire? What's your Social Security going to be? That's what we want to look at. And we want to set you up with a secure, protected lifetime income stream to cover your security gap and probable income streams so you can be optimistic. About achieving your wants and your wishes. So, folks, we want to meet. We want to identify. Your basic expenses. And then we want to set you up with a guaranteed lifetime income annuity to where we take the stress off of you having to worry about spending too little. About spending too much. We want to put you into that category of a happy retirement, a secure retirement, not a risky retirement. So, folks, again, protected lifetime income streams include your Social Security, pensions and annuities. Okay. So let's meet let's get together and let's get you set up to where you're not worried about spending too little, spending too much. We want to be Goldilocks and we want to find that optimal spending level where you have a stress free retirement. Hey, make sure you come back, folks, because we're going to talk about Social Security and how the buying power for Social Security has eroded by 36%. Again, you're listening to Your American Retirement on 101.1 FM, The Answer. We'll be right back.

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. Come on, come on, come on. Come on now. Touch me, babe. Visit YourAmericanRetirement.com to schedule a free consultation with Randy today. And now back to the show.

Randy Sams:
Hey, welcome back to Your American Retirement 101.1 FM. The Answer Where Little Rock comes to Talk. I am your host, Mister Randy Sams, president, CEO of SMMG Financial. I want to again, thank our listeners. Thank you for joining us this Saturday morning. And we're going to get right into the next segment, folks. I want to talk a little bit about Social Security and what we can do for you as far as some of the folks that we meet with again. I guess one of the questions that I get asked the majority of the time now when I'm first meeting with folks that may not have had an opportunity to, you know, listen to the show, you know, so anybody that's out of state because, you know, guys, I you know, I've traveled quite a bit. I do a lot of business in the surrounding states, Tennessee, Mississippi, Louisiana, Texas, some in Oklahoma, some in Missouri. But the majority of those, you know, Arkansas and the four surrounding states that I just mentioned. And when I meet with folks that are getting close to retirement, one of the things that we always look at, this is part of our our our process. One of the things that we want to cover is Social Security. When should I take Social Security? Should I take it at age 62? Should I delay and take it at age 67? Or should I delay further and get the and get the optimal or the maximum payout at age 70? All right.

Producer:
So I want to spend just a little bit of time in this segment talking a little bit about Social Security. And some of the things that that we can do to kind of, you know, at least give you something to think about. When we sit down, we're going to ask some questions. I'm going to listen. I got two ears and one mouth, so I'm going to listen. So I may ask a question and then I'm going to listen to what your responses are. And we're going to together, we're going to put together a plan based on your needs, your specific needs, your objectives, not a cookie cutter one size fits all, because what we do for you is not what we're probably going to do for somebody else or what we just did last week for some for another couple might not be the same thing we put together for you because your needs and objectives, your wants are totally different. But listen to this. Talking about Social Security. Social. And this comes from Newsmax. Okay. Social Security's buying power eroded by 36%. Did you hear that? Social Security's buying power eroded by 36%. So inflation has lowered Social Security benefits, power buying power by a substantial 36% since the year 2000. And that's according to the Senior Citizens League. Okay. So inflation. Since the year 2000. Has lowered Social Security benefit power by 36% again since the year 2000. So the average senior citizen. Relying on Social Security benefits would need 517.

Producer:
More dollars $517 more per month to cover the cost of daily items that have risen at higher rates than Social Security's annual cost of living adjustments. Those are Cola. Okay, so the average senior citizen needs an additional $517 more per month to cover the cost of daily items. That's risen higher than the Social Security cola rates. Okay, so this has hurt many older Americans living on a fixed income who depend heavily on their monthly Social Security checks. Again, folks don't ever want to see someone who is getting close to retirement. And their retirement plan is called Social Security. That's not going to work out well, folks, because you know that the average Social Security, I think the average Social Security payment right now is around 1800 or maybe even a little bit less. But let's just choose 1800. I would not want to be in a position to where I'm going to be retiring here in the near future. And my retirement plan was 1800 a month. That's why we want to meet. But that's why we need to talk about these things, folks. So, listen, the Social Security Administration gives beneficiaries colas. They gave beneficiaries Cola cost of living adjustments of 5.9% in 2022 and 8.7% in 2023. The highest annual boost since the early 1980s. But the cost of food, medicine, transportation, gas, heating oil, housing and other essentials has increased at far higher rates. And this has been by the US Bureau of Labor Statistics data. All right. So all those, I guess you would call them, you know, your basic needs, those are expenses food, medicine, transportation, utilities, housing have increased at far higher rates than what you're seeing.

Producer:
Nikola. So eggs, for example, 110% more expensive in the past year. Bread is up 18%. Dental visits cost 16% more. Electricity bills have spiked 13% and car repairs have also become that much more costly. Folks. My car needs new or my wife's car needs four new tires. I know those new tires that we're about to put on their. I'm going to cost more today or this year than they did three, four years ago when we actually when we put them on the last time. Okay. So everything's going up. So goods and services that typical retiree buys that the typical retiree buys have increased a whopping 141%, 141% between January 2000 and February 20th, 23, far outpacing the 78% increase in Social Security benefit checks in that same time period. Did you hear that? So all the costs for those goods and services, just a few of them that we listed, that retirees have to have increased 100, 141% from January 2000 to February 23rd. But Social Security increased during that same time frame has been 78%. So you see where the shortfall is. So everyone is getting pinched. $100 worth of groceries in 2000 would buy only $64 worth of groceries or food today, and that's by the Senior Citizens League. There is. So the league expects that as inflation has been coming down moderating to 5% in April, the cost of living adjustments for 2024.

Producer:
Will also be lower, making it even harder for seniors dependent on Social Security to pay their bills. So, folks, again, that's why it's very upsetting when I when I meet with folks or I hear of folks, maybe family members that that you guys, you know, notify me about or you we have conversations about. It's disheartening when. When I see someone. That has to go into retirement and the only retirement fund that they have. To count on is Social Security. Okay. Now, thank God for Social Security, because if they didn't have that, what would what would they be? They'd be living in a cardboard box outside, um, standing on a street corner asking for help, which many people are willing to do. But folks, we need to get together and plan. So here's what we do. All right. So when we meet and we go through, we put together a retirement plan. We're going to cover Social Security. When's the optimal time for you and your spouse to take Social Security? All right. Should you take it at 62 or should you wait? Because you got to realize. If you take Social Security at age 62, that benefit is going to be, what, 25 to 30% lower? Then if you waited till your full retirement. So let me give you a little bit of information. So. With us lifetime lifespans reaching into the 80s and 90s. Because of modern medicine, expanding healthcare technology. Healthier lifestyles.

Producer:
More Americans are waiting to take Social Security. Payouts later in life. Usually that means taking those payments either at their full retirement age, which would be 66 or 67 right now, or at age 70, when Social Security payouts are the highest. Okay. So the numbers tell the story. If you opt to take Social Security payments at age 62, you can expect your Social Security payments to be 30% less than they would be if you waited until your full retirement age. Additionally, any cost of living adjustments will be lower if you claim benefits at age 62. So listen to this. This is fact. For every year that you wait to take Social Security benefits, you earn an 8% raise in your benefits. That could easily translate into, what, 24% higher monthly payments by waiting to cash out at age 70. So in many cases that could mean. 100,000 or even 200,000 and additional Social Security payments over the course of your retirement, depending on how long you live. So, folks, this is why I wanted to bring this up. What we are able to put together for you and your spouse, for your for your particular situation is what I call a Social Security bridge. So we know that if you take Social Security at 62, you're locked into that payment for the rest of your life. But what if you waited till age 67 or age 70? So what we want to be able to do is sit down, look at what those payments would be at 62, 67 or 70, and then utilize some of the funds, be it a 401 K IRA.

Producer:
Take those funds and we're going to put together what I call a Social Security bridge. All right. So if we want to go from age 62 to 67, that's five years. So we're going to take a certain dollar amount from your existing 401. K or your IRA. And we're going to put that into a period certain annuity, a payout of five years that's going to cover that span from 62 to 67. So what does that do for you and your spouse? That gives you the peace of mind of knowing that from age 62 to 67, you've got a guaranteed income coming in. For you and your spouse that's going to cover you for that gap, 62 to 67. And then at age 67, you can turn on your income at the higher 25 to 30% monthly benefit. So that's called a Social Security benefit. Social Security bridge, folks call me (866) 990-7664 or go to YourAmericanRetirement.com. Give us some of your information and let me talk to you about your Social Security benefits. When's the optimal time for you to take it? And maybe we can put together a Social Security bridge for you and your spouse. Hey, make sure you come back. Right. Come right back, folks, because guess what? We're going to do the quote of the week when we return. Again, Randy Samms 101.1 FM, the Answer, Your American Retirement. We'll 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 soaring inflation continuing to wreak havoc on everyday budgets, there's never been a more important time to cut costs. But do you know where to begin? I'm Matt McClure with the Retirement.Radio Network. Powered by AmeriLife. There is no question costs have been soaring.

Sharon Epperson:
About one third, 34%, say they are worse off financially this year than a year ago. Almost half, 46%, say they've had to cut household spending due to inflation.

Producer:
Cnbc correspondent Sharon Epperson recently reported on a survey that sheds more light on how inflation has been impacting us all. Even those who earn six figures a year.

Sharon Epperson:
These high earners say the first expenses to go are dining out at restaurants, entertainment outside the home and travel and vacations. More than half also say they'll delay big household purchases.

Producer:
That high inflation has led the Federal Reserve to respond with interest rate hikes. The goal is to increase costs to tamp down demand. Esther George is president of the Kansas City Fed.

Esther George:
Already we've seen the committee's policy actions lead to a very sharp tightening of financial conditions, but.

Producer:
It hasn't done enough yet and costs still keep rising. So what should you do? Well, we have a free resource called 23 retirement cost cutters for 2023. It's full of ideas to help you make the most of every penny. Things like take advantage of senior discounts, eliminate unnecessary subscriptions, and cut back on clothing expenses.

Sharon Epperson:
Look at your needs and wants, Figure out what's optional and what you can cut out.

Producer:
The last one on the list of 23 retirement cost cutters for 2023 is perhaps the most important. Seek advice from a trusted financial professional. That's the best way to get in-depth financial advice and retirement planning that's customized to you and your goals. Just make sure whoever you consult for financial advice has years of experience and credibility you can verify. So do you know the best way to cut costs in 2023? That's a key question to consider as our budgets get stretched to the max with the Retirement.Radio Network powered by AmeriLife. I'm Matt McClure.

Producer:
Are you anxious about retirement? Concerned that you could outlive your money? Randy Sams is a Little Rock native who has nearly four decades of experience helping hundreds of Arkansans retire with confidence. If you want to get the most out of what you've worked so hard for, or if you're interested in learning how to maximize your Social Security, call Randy Today at (501) 249-2343. That's (501) 249-2343. Or visit YourAmericanRetirement.com.

Producer:
Hey welcome back everybody. I want to welcome you to Your American Retirement on 101.1 FM. The Answer we're Little Rock comes to talk I am your host, Randy Sams, president CEO of SMMG Financial. I want to again, thank all our listeners. Thank you for joining me on this Saturday morning. Hopefully, you've been taking some good notes and you can tell all your friends and family, hey, go to 101.1 FM, the Answer on Saturday mornings. And listen to this young fella. He's got a great program. What's it talking about? He talks about retirement. What's the name of the show? Your American Retirement. Put those two together. Hey, anyway, folks, let me get right into the financial quote of the week.

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

Producer:
It comes from Mr. Bobby Knight. You all remember Bobby Knight. He used to be the Indiana basketball coach. I think when he left Indiana, he went to Texas Tech. Anyway, this financial wisdom comes from Mr. Bobby Knight. The will to succeed is important, but what's more important is the will to prepare. You remember what the title of the show was, Folks, be prepared. We're going to get you prepared for retirement. All right. The will to succeed is important, but what's more important is the will to prepare. Again, that's from Bobby Knight. He was born in 1940. He's a retired basketball, you know, college basketball coach, Olympic basketball coach, known for his intense coaching style. He spent the majority of his career at Indiana University, where he led the Hoosiers to three national championships in 1976, 1981 and 1987. Again, financial wisdom Quote of the Week. Mr. Bobby Knight The will to succeed is important, but what's more important is the will to prepare again. What do we do with financial? We want to educate you and help you understand and prepare for a secure retirement, not a risky retirement. Hey, how about a little market update.

Producer:
Your active wealth market update?

Producer:
What is the debt ceiling? And why does it matter? So what is the debt ceiling and why does it matter? The debt ceiling in the United States is a statutory limit on the amount of debt that the US Department of Treasury can issue to cover the existing obligations of the federal government. It is essentially a cap on the total amount of money that the government can can borrow to fund its operations. Did you hear that? That they can borrow folks? Wouldn't it be great if we actually had folks in Washington DC, Democrat, Republican, Independent, I don't care. Why can't they get together and balance the budget? Why do we keep going in debt? I can't do that at my house. Can you do that at your house? Of course not. If you ran your business or if you ran your household the way the folks in Washington DC are running the government, we'd all be bankrupt anyway. I don't want to get go down that rabbit trail, but that's what the US debt ceiling is all about. So the US hit its debt ceiling or debt limit in January. So you know, right now they're having a little back and forth who, you know, they're doing that arm wrestling deal. The Democrats want to do one thing. The Republicans want to do one thing. You know this. We'll do this, we'll do that.

Producer:
I think they're trying to meet with the president. I think they met last week. I think they've got something maybe planned for this week also. Or when I say this week, when you listen to this on Saturday, they've already probably met. I know the first time that they met, they were unsuccessful on negotiating anything between the Republicans and the president. But why can't we get them to stop borrowing money and just use what you got coming in, folks? Does that make sense? I don't know. Maybe it's just me. Maybe it's what I what I do for a living. But to me, why would I put together a retirement plan where you always have to borrow money to be able to to meet your expenses? You guys wouldn't utilize me very often, would you? No. So if we have to do it and stay within our budget, our limits, why can't we get the government to do it? So the nation may run out of money to pay all its bills as soon as June 1st, the so called X date. So when you listen to this, let me see. So I guess it's going to probably end up being. The 20th when you hear this. So this is when you listen to this show. It's going to be Saturday morning, May the 20th. Um. We don't have what we have. A couple of weeks left until June 1st, which is the so-called X date, so the government wouldn't be able to pay everyone on time.

Producer:
It would most likely prioritize payments to investors holding US Treasury bonds to avoid a technical default and more widespread financial volatility. So payment services such as Social Security, Medicare, tax refunds, military salaries and others would likely be delayed now, folks. I'm going to get on my soapbox. You want to be able to take care of this? Immediately or watch it turn around very quickly. If the first paychecks to be cut because they can't get together and they continually have to increase the debt ceiling and we continually go farther into debt. If the first checks that they did not send out were the checks to those in Washington, DC, you know. Those in the White House. Those in as the House of Representatives. Those in the Senate. If they didn't get paid. I guarantee you this would be corrected very, very, very quickly. But you see what they do. So see, their threat is, oh, well, if we can't get this, then all you guys on Social Security or Medicare or your tax refunds that you haven't gotten so far or your, you know, your military salaries. We continue to send those out to everybody here in the general public. You know, the ones that vote you into office. And if there's anybody that has to miss a paycheck, let it be you guys in Washington, DC.

Producer:
Okay, I'm off my soapbox. So Democrats and Republicans haven't yet reached an agreement to raise or suspend the debt ceiling and avoid that outcome. So, folks, the debt ceiling ceiling and what we are as far as in debt, I think it's, what, $31 trillion, folks, that has significant impact on everything that we're doing today and in the future. All right. It has to be corrected. So listen to this little nugget. Household debt surpasses 17 trillion for the first time. Household debt. That's you and me and everybody listening to this and everybody around. Okay. Household debt surpasses 17 trillion for the first time. So Americans debt level continued to climb to new heights at a time when economic conditions are becoming increasingly less stable. So a household debt balances set a fresh record. Listen to this. A fresh record high of $17.05 trillion during the first quarter of 2023, growing 148 billion or 0.9% from the fourth quarter of last year. So that's almost 1% growth from the fourth quarter of last year. To the end of the first quarter of 2023, folks. So the Federal Reserve Bank of New York. Reported on Monday that the debt load has spiked to 2.9 trillion since the end of. 2019, UK household debt load has spiked by $2.9 trillion since the end of 2019.

Producer:
So during the first quarter, the increases in debt were seen across practically all categories with larger and record balances for mortgages, home equity, lines of credit, auto loans, student loans, retail cards and other consumer loans. All right. So. While we're listening, a couple of tips for avoiding debt and financial stress since we're talking about household debt here. Have an emergency fund that covers 3 to 6 months of expenses, folks, when I do an annuity. Application for a client or clients. We don't ask health questions. The majority of the annuities that I do, there are a couple of annuities when we're dealing with like long term care. Coverage or whatever, that I have to ask a few health questions. But side subject not going down that rabbit trail. The majority of the annuity applications that we take is based on your financial health. Okay. And one of the questions that they ask is what do you have? For emergency fund. What do you have set aside in a savings or checking account that you can utilize in an emergency? Folks, it's disheartening. To understand and to hear that there are folks out there that if they had a $400 expense, an emergency expense. That they couldn't cover it. All right. That's $400. So just think if it was $4,000. So having an emergency fund that covers 3 to 6 months of expenses.

Producer:
So what are your monthly expenses? The. 4000. Take that number by three. Or if you want to do better, take that number by six or if you even want to do much better, take that number by 12. Okay. We're going to eliminate some of the stress. If you lose your job or something happens like it did during Covid, where people couldn't go to work, what were they living off of? People were stressing out because they didn't have anything set back. So have an emergency fund that covers 3 to 6 months of expenses. Let's establish a household budget and stick to it. Any of you politicians out there listening. Establish a budget and stick to it. Anyway. Pay off your high interest debts. Credit cards. Okay. If you're going to tackle your credit card debt. Take your highest interest, being charged by whatever credit cards you have and tackle that debt first. All right. I know folks that have had have gotten himself into credit card trouble as far as debt goes. You know, you have one credit card and you put that balance on another credit card for another six months or whatever at zero interest. But then that interest jumps up anyway. I've had folks that what they've done is they've taken out home equity line of credit because your, your your home equity lines of credit.

Producer:
Okay. Your homeowners equity lines of credit. Are charging less than what these credit cards are. So they take out the some of the equity in their house and they pay off those credit cards. Well, the thing that you got to do when you pay off those credit cards, guys, are what you got to cut up those credit cards and then you got to focus on paying off that home equity loan. All right. So make regular contributions for your short term and long term savings goals. Okay. Again, if you start saving at age 25, you'd be surprised. Don't care what you start saving. I don't care what you start saving. If you start early. You're going to have a lot more at age 65 than you will if you start at age 55. Okay. So make it a point. Make a regular contribution to your short term and long term savings goal. And again, you may tell me, Randy, I don't have an emergency fund. Well, it's always a good time to start, isn't it? So take a little bit of what you want to just take a certain certain percentage. Take 10%. Take 10% on a monthly basis and put that into a savings account or a checking account. Maybe, you know, some kind of account that you don't you just can't jump in there and use it like a Christmas, you know, a Christmas account.

Producer:
But start now and start saving and start putting yourself in a financial situation where you can avoid debt and avoid the financial stress. Because folks in retirement stress is one of the killers. You've heard me talk about stress and rocking chairs. People are stressed out because they're spending. They're afraid they're going to spend too much money and they don't ever do anything. They just sit on the front porch and they sit in that rocking chair. Okay. So again, we want you to get in contact with us. (866) 990-7664 or go to the website YourAmericanRetirement.com. Leave us your information. Give me a call. Leave me a voicemail. Let me get in contact with you and let us get together and set up a time that's convenient for you and your spouse to do a free consultation. And let's take a look at what you have right now and let's put together a retirement plan based on your objectives, your wants and your needs, and let's get those basic expenses taken care of. Folks, I don't want you to go into retirement unprepared. I want you to go into retirement prepared. I want you to go into retirement secure. And when we come back, we're going to talk about are you planning to retire in a few years? Again, you're listening to Your American Retirement 101.1 FM, The Answer. We'll be right back.

Producer:
Hey, welcome back, everybody. Thank you for joining me this Saturday morning. You are listening to Your American Retirement on 101.1 FM. The Answer where Little Rock comes to talk. My name is Randy Sams. I am your host. Again, thank you for joining me. Hopefully you've taken some good notes, folks. Let's get right into the last segment we want to talk about. You know, this this this whole show has been kind of putting around putting together a good plan for you in retirement. And as as we look on what we can do for you, proper preparation for your golden years, guys, that's what we're talking about today. How to get started with retirement planning. We've spoken about Social Security, we've spoken about debt. And now for those of you who are getting close to retirement, I want to speak a little bit about are you planning to retire in a few years? Here are some of the things that you need to focus on. Number one, you need to call us 866 990 7664 Or go to the website YourAmericanRetirement.com. Leave us your information and let's get together and let us put together a retirement plan for you and your spouse that's going to get you prepared for your golden years. Here's some of the subjects things to do. First, if you're planning to retire in a few years. Number one, Hey, I just said it. Meet with a financial professional SMMG Financial (866) 990-7664.

Randy Sams:
YourAmericanRetirement.com. Hint hint. Okay schedule a meeting with us today. This is what we do folks every day travel five states. I love to work locally but I've got I've got hundreds of clients, again, like I said, in Tennessee, Mississippi, Louisiana and Texas. So I've got folks that are calling. They have family members that we've done business with that they're calling them and giving them our our name. And we're going and we're putting together a plan for them. We'd love to do the same thing for you. So call us, schedule a meeting, We can help Answer any initial questions and get you started on developing a smart retirement plan. Remember a happy retirement. We want to assess your current financial situation. So we're going to consider your income, your expenses, your assets and liabilities to evaluate your retirement readiness. What do you have in place right now? What can we work with? What are our goals? What are we going to focus on? So we want to set realistic retirement goals so we help our clients establish and reach achievable financial goals based on your assets, your desired lifestyle and timeline for retirement. Number two, make adjustments to your portfolio as necessary. So after some stress tests and analysis on your current investments and retirement plan, we're going to present different options to consider based on your goals and your risk tolerance.

Producer:
We want to diversify your investments, folks. We don't want you to take all of your money and put it into an annuity. But you know what? I've told you I have yet to meet anybody that is getting close to retirement or someone who is currently in retirement that does not need income. So just take it from me right now. I've said it every show and I will continue to say it. Our focus is going to be setting you and your spouse up in a guaranteed lifetime income. We want to take that stress off of you. We want you to be able to go out and enjoy your retirement, take those trips, take the cruise, go see the grandkids, join the country club, play pickleball. Every hour is happy hour. Every day is Saturday. That's what we do. All right. We want to diversify your investments. So we're going to help you find a comfortable balance between both smart risk and smart, safe investments. I love that. Smart, smart, safe. Okay. Smart money. Safe money. That's what we're going to do. So we want you to have a good a good offense and a great defense. We're going to put you in a great position in the optimal position. Remember, we don't want you to have to worry about spending too little. We don't want you to have to worry about spending too much. We want to put you in that optimal spending level to where you can go out and enjoy your retirement.

Producer:
Consider implementing a Roth conversion if your retirement savings is mostly sitting in tax deferred accounts. 401 403 B's Tsp's IRAs. Consider. A Roth conversion. This will help you avoid future tax increases and generate tax free income. Also, with a Roth IRA, there are never required minimum distributions. So someone's going to ask me, what's a Roth conversion? All right. Very quickly. Not to take up too much time in this segment. A Roth conversion if we're looking for tax free income later on. Let's take someone who's 60 years old and you have a 401. K balance of 200,000 and you're going to retire in eight years at 68. Okay. That's just an example. We're going to take that 200,000, put it into a tax deferred annuity. No taxes are due. We're going to take it from one tax deferred or one qualified plan into another qualified plan via the annuity. And we're going to let it grow. But here's what we're going to do Every year. We're going to start taking out 10%. So we're going to take out 10% of that 200,000, 20,000. We're going to pay taxes on that 20,000. I'd rather pay taxes on 20,000 versus 200,000. And we're going to take what's left over and we're going to put that into that Roth conversion. And we're going to do that for the next eight years.

Producer:
Okay, folks, we have to leave it in there for five years minimum before you can take any money out. But we're going to target age 68. So we've taken those funds out of that 200,000 over eight years. We've transferred those over to the Roth conversion. It's continued to grow. And then if at age 68, you want to take funds out or take money out in the form of an income, you can start that tax free. But let's say you say, Randy, I'm going to continue to work. Well, we've still got two more years left, so we're going to take years. Nine and ten take that 10% withdrawal, put that amount over into the Roth conversion, and then after ten years, you can let that thing grow. You don't have any RMDs. If you don't ever touch it, it can go to your kids and they don't have to pay the inheritance tax or anything of that nature on it. So that's just an example of how the Roth conversion can work. So, so if you're interested in maximizing your retirement savings and learning what a Roth could do for you folks, get in contact with us. You know the website YourAmericanRetirement.com or give me a call (866) 990-7664. We'd love to work with you on building a winning retirement plan. Hey, number three. Step number three, develop an income plan.

Producer:
We got a plan for Social Security. You remember what we spoke about earlier about Social Security planning? Do you want to take it at age 62, age 67? Age 70? And if you want to wait. Hey, we can utilize some of the funds you have now and put together a Social Security bridge to where you can wait that five years and then take your full retirement, which would be 25 to 30% higher at age 67 versus age 62. Okay. And we want to check for income gaps. So we will provide you with a Social Security maximization plan to help you get the best benefit for your needs. We will consider your other retirement income sources, pensions, annuities, rental income or other part time work. We will help you establish your own personal pension via a guaranteed lifetime income annuity to provide you with the income you need for life. Folks, you do not retire on assets. You retire on income. All right. Let's take the stress out of your life and let's get you set up with a personal pension via the guaranteed lifetime income annuity. Okay. So, folks, we're going to provide these comprehensive consultations to our listeners at no cost and no obligation. So you work with us. Basically knowing that what we're going to do is we're going to listen to what you have to say. We're going to listen to your objectives.

Randy Sams:
We're going to put together. We're going to fill out a few forms that we have to give us the correct information to know exactly what we're working with. And then we're going to come back and present a retirement plan, set you up for a secure and a happy retirement, not a risky retirement. Hey, folks, let's close out the show here with three good habits to stay mentally Sharp in retirement. Three Good Habits to Stay Mentally Sharp in Retirement. Number one. Stay connected with your community. Spending too much time isolated and disconnected from other people. Significantly impact a person's health. Including an increase of 50% in the risk of developing dementia for older adults. Let's let's take some free classes on subjects that interest you. You're never too old to learn new tricks. Hey, you want to go back to college? Go back to college, do some volunteering at your church or local nonprofit that you support. Reconnect with friends and family by going on walks and arranging other weekly meet ups with loved ones. So stay connected with your community. Number two, don't stop moving. Even if exercise wasn't always or ever a must do while you were working. It's never too late to start. No matter your age, make exercise a priority. Go for a walk. Whether that's working out at the gym, hiking or swimming, or whatever activity you choose, you'll achieve a higher a, a higher later life cognitive state.

Randy Sams:
In other words, your mind is going to stay more stable. According to a recent study that was published by the Journal of Neurology. So stay active, folks. Go out and do something. So here are some of the things most popular sports that I see for retirees. Golf. Tennis. Pickleball. Cycling. Walking. Yoga. Bowling. Stay active, folks. Number three, avoid stress. Whew. That's a big one. Not only is it important to cut back on stress. But also avoid. Creating new stressors for yourself. Keep to retirement budget that you set. 72% of Americans feel stressed about money. So, folks, even if you're not retired, it's not too late to meet with those, like, folks like myself. And let us set you up for a stress free, a safe and a secure retirement. Not a risky retirement. Folks, I want to do one little shout out. We're going to be doing another retirement seminar. It's going to be held at Saltgrass on right behind the Bass Pro shop there in Little Rock on Anglers Way. The retirement seminar are going to be start at 6:00 June 13th and June 15th. So if you'll give me a call. (866) 990-7664. I'll give you more information, But hey, I want to thank you for listening again, my name is Randy Sams, Your American Retirement on 101.1 FM. The Answer We're Little Rock comes to talk. Thank you.

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.

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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