Is America Ready for Retirement?

3.15.24: Audio automatically transcribed by Sonix

3.15.24: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Speaker1:
Any examples used are for illustrative purposes only, and do not take into account your particular investment objectives, financial situation or needs and may not be suitable for all investors. It is not intended to predict the performance of any specific investment, and is not a solicitation or recommendation of any investment strategy.

Speaker2:
Welcome to your American Retirement with your host, Randy Sams. Get set for a full hour of financial information and economic news affecting your bottom line. Randy works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here is your host, Randy Sams.

Speaker3:
Hey. Well, hello again, Central Arkansas. Welcome to your American retirement. I want to thank you for joining us on this Saturday morning. I hope you've had your cup of coffee or two cups of coffee or whatever it takes to get your going in the Saturday morning. Looks like we got a beautiful day. And hey, it's daylight Savings time, so we got a lot of daylight in front of us, but we are glad that y'all joined us to start your Saturday morning off with your American retirement. My name is Randy Sams. I am your host, president, CEO of Qmg financial. And folks, listen, we've got a jam packed show for you on tap this Saturday. And please don't forget to check us out on podcast. Wherever you get your podcast from, that could be Apple, Google, Spotify and also visit YouTube. Com you'll see my smiling face. Just look for your American Retirement on youtube.com and again, you'll know you hit the right spot when you see my smiling face. See, I'm smiling right now. Those are on the radio. Can't see that. All right, so listen, I want to give a shout out to our listeners in, uh, Saline County. We've got a lot of stuff going on in Saline County. I think we just had a big dedication or they're going to be building, I guess Saline County here in Benton, Arkansas. Uh, if y'all remember the movie Sling Blade, uh, Billy Bob Thornton did a movie here in Benton, and there's a bridge.

Speaker3:
It's the oldest bridge, I believe, in America. Still standing in the original spot. It was built in, like the 1800s. And they're going to make that part of a walking slash back bike hiking trail from little Rock all the way to Hot Springs. And so they did the dedication this week. And I just want to give a shout out to all our people that were involved in that and looking forward to the completion. But again, hey, those of you in Bryant, Benton, Haskell's anywhere in Saline County, Central Arkansas. Thank you all for joining us. As you know, please don't hesitate to contact us. This is what we're in business for. I've been doing this for 38 years. That's right. I started when I was really young, but I travel five states. I get to talk to a lot of people. And again, when I tell them we do a radio show, they say, well, what's the program about? Randy? Well, guess what, the name is your American retirement. You know what we talk about. You know what our mission statement is at Qmg Financial. And in case you've forgotten. We're focused on addressing the major financial issues facing retirees and pre-retirees in America today. We want to help people understand and prepare for a secure retirement, not a risky retirement.

Speaker3:
Folks, I'm not into risk my job to you as a client if we do a consultation, if we have an appointment. My job to you is to reduce and eliminate as much risk, financial risk as we possibly can. I'm not saying we can take care of everything, but we'll talk about some of that in the show as to what we do. But remember, when we meet, I'm going to ask you two questions. How much guaranteed lifetime income do you have? And number two, have you taken the key risk in retirement off the table? You know what that key risk is? It's called longevity risk, folks, because the majority of the people that I speak with that we meet with across this five state area, one of the things, whether you're getting ready to retire or you're in retirement, people always are concerned about outliving their retirement funds. That's called longevity risk. Because, folks, the longer you live, the more likely we're going to see a market crash. The longer you live, the more likely we're going to experience health issues, okay, if we get older. Our bodies break down. We have things that need, need fixing. Okay. The longer you live, we're going to be worried about taking too much money or likely outliving your money. Okay, you're not going to have to worry about that with Smug Financial, because one of the things that we want to set you up for is we are a big believer in guaranteed lifetime income, because, see, we feel like and this is something that we go over when we meet three distinct phases of retirement.

Speaker3:
We want to get you prepared for each one of them. How do we do that? See, we want to help baby boomers never run out of money. We want to help baby boomers enjoy their latter years, their retirement years, a happy retirement. Okay, because see, a lot of folks think that retirement is 30, 40 years of going on cruises, golf, tennis, whatever they want to do. Okay, every hour is happy hour, but we have to be prepared. So see, the first phase of your retirement is the go go years. That's when you can still do anything and everything that you want to do. You can go on those cruises. You can play golf. You can play pickleball again. Every day is Saturday and every hour is happy hour. Those are your go go years. We want to make sure that you have the financial wherewithal, your guaranteed income, social security, pension, self pension, annuity payments, income payments, whatever that might be. That's what we need to meet with and make sure that you have a paycheck and also a play check, a play check, okay. That play check allows you to take those cruises, play golf, pickleball, travel, and do whatever you want to do.

Speaker3:
The second phase of your retirement is what those are, the slow go years. So in the slow go years, you can still do everything you did in the go go years. You just don't want to. Okay. Does that make sense? So you don't go out after 530 because you can't see very well after dark. Now with daylight savings time, that five 30th May be 637 3830 as we get farther into the summertime. Okay. But when it gets dark. Mom and dad don't really want to drive because they have a hard time seeing at night. Okay, slow go years. You can still do everything that you want it to do. You just don't want to do them anymore. And then number three phase is the no go years. The no go year is basically when you're probably leaving the building. You know what I mean? You're not leaving the building until somebody is carrying you out of the building, if you know what I mean. Okay, so go go years could be 60 to 80. We don't want you to be stressed out about running out of money. We want you to have this time is to enjoy your retirement. Okay? But I feel like that retirement is all about income. It's not about assets, folks. You can lose assets. 100% of your focus should be on income. Because everybody that I ever meet, whether you're getting ready to go into retirement or you're in retirement, you are concerned about income.

Speaker3:
You have to have that income. Right. So. You don't need a bunch of money when you're 105. You want that money when you can enjoy it. Those are your go go years. Slow go years. It's about long term care. What's your plan for long term care? If you don't have a plan, what's going to happen to you? Because remember. If you don't have a plan in place. The rules say that you have to spend all your money down until you're basically destitute. Okay. Living in poverty. And then you go on welfare slash Medicaid. That's when you lose control of your decisions. And as far as I'm concerned, that's not my idea of a successful retirement. No go years, folks. It's all about life insurance. You need to understand that life insurance is what sets up your children, okay? You and your spouse should go and spend everything that you have, but leave them a life insurance policy. That way they're guaranteed to have an inheritance, and you and your wife or your spouse can go out and have a great time. So folks, that's what we do at SMG financial. So let's end this segment with this. Mr.. Jim, can we have the financial wisdom quote of the week music please as we tee this up.

Speaker4:
And now Folsom Financial Wisdom, it's time for the quote of the week.

Speaker3:
Financial wisdom quote of the week is given to us by Abraham Lincoln. You cannot escape the responsibility of tomorrow by evading it today, folks. That's wisdom right there. You cannot escape the responsibility of tomorrow by evading it today. So, folks, what do we talk about? Retirement. When's the best time to talk about planning for retirement? Right now. Okay. Right now. Today. So if you don't have a plan, you need to call us (866) 990-7664 or go to your American retirement comm. Leave us your information and let's get together. So, folks, listen. We're going to come right back and we're going to talk about the seven retirement statistics that will motivate you to start planning for your future. Seven retirement statistics that will motivate you to start planning for your retirement. We'll be right back.

Speaker2:
Like what you're hearing, you can watch the show to visit youtube.com and search your American retirement to watch clips from this program.

Speaker5:
Got on board a westbound 747.

Speaker2:
Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (501) 249-2343. That's (501) 249-2343. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio. Are you anxious about retirement? Concerned that you could outlive your money? Randy Samms is a little Rock native who has nearly four decades of experience helping hundreds of Arkansans retire with confidence. If you want to get the most out of what you've worked so hard for, or if you're interested in learning how to maximize your Social Security, call Randy today at (501) 249-2343. That's (501) 249-2343. Or visit your American retirement.com. Visit your American retirement.com to schedule a free consultation with Randy today. And now back to the show.

Speaker3:
Welcome back to your American retirement on 101.1 FM. The answer where little Rock comes to talk. Folks, don't forget to check out our YouTube page, visit youtube.com and search for your American retirement and you'll see my smiling face. Anyway, segment two we're going to talk about seven retirement statistics that will motivate you to start planning for the future. Folks. Like I ended segment one when's the best time? If you don't have a plan to put a plan together today, you need to call us. You need to go to the website, leave us your information, and let's sit down and let's have a discussion about what your objectives, what are your plans for retirement? That's where we have to get to. We have to at least have a plan. You've got to know what you're about to get into. If you know football or basketball or you do any kind of sports or whatever or you're in business, you know that you have to have a business plan. You just don't go start an ice cream stand somewhere that you don't have anybody that comes by you. So you have to have a plan. Retirement is the same way. And we're going to talk about some retirement statistics that hopefully will motivate you, that will motivate you to start planning for your future. All right. Number one, listen to this. 54% of people don't know their retirement needs. That's right. I meet with a lot of folks when we're dealing about 401 S or IRAs.

Speaker3:
We talk about balances or what they may have those balances invested in. A lot of folks don't know. Well, what's your plan? Well, I don't have one, okay. People don't know their retirement needs. What are you plans? You want to travel. You want to visit the grandkids. You want to go to Florida. You want to go to Hawaii. You want to take cruises. All of that, folks, not everybody's needs or objectives are the same in retirement. But you need to have a plan and you need to know what your retirement needs are. Especially we have to focus on what your basic expenses. So listen, just over half 54% of American workers don't even know their retirement savings needs. This means that most people are lost and are not sure how much to contribute when saving for the future. So tracking your progress becomes challenging when you don't have a clear goal in mind, right? If you take a trip. You're going to leave home, you're going to go to what's your destination? Hopefully you have a well, we don't use maps anymore, but you have it planned out in the GPS. The GPS tells you to go here and turn right or you're in. The next exit is ten miles ahead. You're prepared for that exit when it comes up. Okay. Tracking your progress becomes challenging when you don't have a clear goal in mind.

Speaker3:
Where do you want to go? What are your retirement needs? So you need to have a smart vision for your retirement. Many factors play a role in your savings need, including but not limited to, the following your retirement age for you and your spouse. Folks, I listen. I meet with folks that some people want to retire at age 62. Some folks are going to work till they're 70. Okay, that has to do with Social Security, and we can talk about that in a little bit later. But what is your retirement age? What's your target retirement age. What do we need to look at? What plan? If you're 60 years old right now and you want to retire at 67, what's our plan to get you from 60 to 67 to where, you know, at age 67, this is what you have waiting for you, guaranteed for you and your spouse. Okay. Number two, your desired lifestyle. Are you going to downsize? Are you going to sell everything and buy an RV and just be an RV traveler all around the country? What's your desire? Desired lifestyle? What are your wants? So you have needs and then you have your wants. Number three the cost of living where you live in retirement, folks. That's a big one. Okay. Now I, I'm a member of Hot Springs Village. I'm not giving anybody a plug, so please don't think about that. That's what I'm doing. But I've been a member of the Hot Springs Village, and I like to play golf.

Speaker3:
And that's the only reason, uh, will I ever move there? I don't know, maybe. Never going to say never, but I can tell you from experience, I've been playing golf there for 25 years, and there are lots and lots of people that move into Hot Springs Village from out of state, and they build these big old houses. One of the reasons is they feel like they have to, because they may be living in a in a place like California or some northern state where their house has grown in value, and they have a lot of equity in that house. But they're moving to Arkansas because why? Because it's a little bit cheaper and less expensive. You can buy a much bigger house here in Arkansas for the same dollar you could in Texas or California or whatever state you want to in there, but you have to be aware of the cost of living where you are going to live in retirement. Are you going to stay in the same place, or are you going to move to some place that may be a little less expensive, where the finances that you have coming in are going to be able to sustain you? All right. Number four, your anticipated health care needs and associated costs. That's a big one. Health care needs long term care. Do you have a plan? A lot of people that I meet with do not okay Medicare Medicare Advantage Medicare supplement.

Speaker3:
What do we have? Those are things we have to look at inflation causing so many things to become more expensive. Wow. We can talk about that just over the past two years, right? A gallon of gas is more expensive today than it was three years ago. Gallon of milk cost more. Everything costs more today than it did three years ago. We have to make that plan for inflation. I wish I could tell you that $2,000 today is going to be the have the same value and buying power, purchasing power in two years or five years or ten years. We know that's not true because of inflation. All right. Stat number two the average yearly Social security benefit is less than $22,000. Okay. Listen to that. The average yearly Social security benefit is less than $22,000. So if you expect to live off of your or to live off your monthly Social Security payments, you might be surprised that the average monthly payment was just $1,790, which equates to $21,470 annually. Now, that's based on 2023 data, because this likely won't cover your cost. Having sufficient retirement savings is crucial for your financial security. Plus, don't forget all the potential changes to Social Security that could negatively affect your benefit amount. Folks, social security is a big one that we have to look at. Okay, so what's happening with Social Security?

Speaker2:
The clock is ticking. The debt is growing. It's time for J.R. and Anthony's weekly US debt clock update.

Speaker3:
The national debt currently tops 34 trillion. That's with a T and continues to grow. Social security will become insolvent in 2033, less than ten years from today, according to the latest Congressional Budget Office analysis at CBO. The CBO projects that Medicare will also become insolvent in 2030, so both the Democrats and Republicans agree that something must be done. What is certain is a Social Security benefits will eventually be cut when the program's trust fund run out of money. Unless significant changes are made, they're either going to have to reduce the benefits, or they're going to have to increase the taxes being paid into Social Security. Folks. The national debt 4.5 trillion. Listen to this. National debt update 4.5 trillion. To address the national debt, the US will likely have to. It's 34. Excuse me 34.5. Wish I could just cut $30 trillion off the debt, don't you? But $34.5 trillion. So listen to this. Excessive government borrowing can lead to inflation, which erodes the purchasing power of retirees, fixed income and savings. Now, folks, here's what gets me the national debt. And this is as of Monday, March the 11th, $34,501,674,619,061. That equates to the debt for the average taxpayer is $266,499. Can you cut that check today to help eliminate that debt? I doubt it, so please don't enter retirement without a plan for Social Security.

Speaker3:
So we anticipate some changes in the coming decade, and it's critically important that you get in touch with us to learn how to maintain and maximize your own Social Security benefit based on your unique situation and needs. Stat number three about 34% of people haven't saved anything for retirement. A 2023 report from Ramsey Solutions showed that 34% hadn't saved any money at all. That's terrible. That's bad. Okay, this not only includes money for retirement, but also an emergency fund and savings for other goals. So in addition to causing financial struggles during retirement. Having no savings to handle today's emergencies is dangerous and could force people to take on debt. Just think about the era of Covid 19. Of the people that had bankruptcies because they didn't have any savings, they weren't prepared for that emergency. So we recommend paying yourself first by saving for retirement and also saving for unforeseen emergency expenses. Every time you receive a paycheck. Pay yourself first. Okay, well, pay your tithes. Pay, Almighty God, then pay yourself these purposes. Pay off and provide financial security. So a good rule of thumb is saving up at least three. And I say 3 to 6 months of expenses for emergencies and 15% of your earnings towards your future retirement.

Speaker3:
Okay, folks, I like to say people when I do, when we talk about annuities and we talk about what financial assets the clients may have. I like to feel a whole lot more comfortable when I can say that they have anywhere from 6 to 12 months of their necessary what takes care of their needs, their mortgages, their expenses, their bills, groceries, whatever it might be. 6 to 12 months is something that I think you need. Because then that way if we have another Covid 19, which I pray to God, we never do, but if something happens to your job and they shut it down for a while, you have that money back to where you're not stressed out about how we're going to pay the bills over the next few months. Okay, so listen, schedule your no obligation consultation with us today. So this is a $1,500 value provided to you at no cost to our listeners. Listeners, all you have to do simply get in contact with us this week so we can help you build and navigate your financial plan. Give us a call 866990766 4 or 5 012492343 or go to the website. Your American retirement.com folks. Come right back. We're going to get into number four, number five, number six and number seven. In segment three.

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

I, Robert Bly.

Speaker1:
Do you have a vision for what you want your retirement to look like? I'm Matt McClure with the Retirement Radio Network, powered by Amira Life. Planning for retirement can be overwhelming. A survey from Gobankingrates shows that one third of Americans don't think they know enough about retirement, and they're probably right. So if you fall into that category, how do you know where to begin? Well, you've got to know where you want to go before you start planning how to get there. That's where having a smart vision for your retirement comes in. Whether you want to be a jet setter during your retirement years. Want to take it easy in a quiet cabin in the woods, or start a new adventure by opening your own business, you should set that goal and keep it in mind throughout your working years, retirement expert Dean Waguespack said during a recent Ted talk. I want to.

Speaker6:
Challenge all of us to redefine retirement away from depart, remove withdrawal to a new definition a blending of pay, passion and purpose.

Speaker1:
Until retirement looks different for everyone. Sit down with your spouse and talk about your retirement goals. That will make it easier to determine how fiscally responsible you need to be now, and how much income you'll need to make it happen after you retire. That's right, I said income. More and more retirees are finding that cash flow is more important than one big nest egg number.

Speaker7:
That's when you want to say, hey, listen, I want to start thinking about all of this accumulation that I've done through these decades of working. How do I begin to think about turning what I've saved and what I've accumulated into paychecks after I retire?

Speaker1:
That's Lee Baker, president of Apex Financial Services. Speaking to CNBC. He says annuities are a great option for most retirees to generate an income you can never outlive. That's especially important since life expectancy has grown over the years, so you'll need to plan for a longer period of time than you may think. So do you have a smart vision for your retirement years? That's a key question to consider as you start planning how to get there. With the Retirement Radio Network, powered by Amera life, I'm Matt McClure.

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

Speaker3:
Hey, thanks for joining us on this week's edition of Your American Retirement. Be sure to check out the podcast version of the show on Apple, Google, Spotify, or wherever you get your favorite podcast. Hopefully American, your American Retirement is one of those. Give us a thumbs up. All right, folks, let's get these done. We're talking about the seven statistics that hopefully retirement statistics that will hopefully motivate you to start planning for your future right now. What is the best time to do it today? All right. Number four. Around 39% of people don't invest in stocks. Stocks tend to have some of the best average returns across all asset classes classes. Some investors might not feel comfortable with the higher volatility. We can address that that comes with these types of investments and choose safer, less profitable options instead. So here's a cost cutter tip. When you do choose to invest in stocks, consider fee efficient options like ETFs compared to typical mutual funds that often contain layers of fees. Now folks, you knew what? You know what we do. You've heard me talk about this on previous shows and we'll talk about it again. I'm a big believer in the rule of 100. You may say, well, Randy, what is the rule of 100? Well, the rule of 100 is this it basically gives you a formula. It that's what we run by. Okay. You take 100 and subtract your age.

Speaker3:
And the number that you have left over is the percentage that we feel like you should have invested in, or at least no more than that percentage invested in equities, more risky type investments, stocks, bonds, whatever it might be. Okay, so if you're 50 what's that split 50 from 100 leaves 50. So you should have 50% invested. In safe money investments, what I consider to be like annuities or, you know, stocks, bonds, CDs, whatever are not the stocks and bonds are going to be the other 50%. So the rule of 100 kind of gives us a track to run on is what I look at. So if you're 75 years old, who you should have no more than 25% of your retirement funds invested in more risky stocks and bonds. All right. So it's important to stay invested and protect your buying power later in life. Investing in stocks is one way to protect against inflation. That's why I never tell anybody to take all your eggs and put them in one basket. We run by that rule of 165 35. Let's put 65% of that 401 K or IRA. Let's put that into a guaranteed lifetime income annuity where you've got a guaranteed income coming in, and then now you've got 35% that you can put into the stock market. And if it goes up, that's great. And I hope it continues to go up. But you also have that volatility.

Speaker3:
What does that income annuity do for you. It takes that risk off the table of you ever outliving your retirement funds. Because a guaranteed lifetime income is exactly that guaranteed for your lifetime and for your spouse's lifetime. So if you see the value in stocks but are looking for less risky options as you age or near retirement, contact me so I can discuss options that provide market like gains without the risk of losing principal in the stock market. Folks, those are indexed annuities. You're you get to enjoy the ups when it's going ups and the thing is, is that when it starts to go down, you don't lose. It's like that elevator example. You get that elevator, it goes up. Then all of a sudden when the stock market can starts to go down, your elevator stays at that same level. When the market comes back up and that index begins to rise again, you get to ride that elevator up with that index. So it locks you in to whatever the value is of your account. Even when the index is going down, zero is your hero. Okay, so if you don't want your golden years tarnished by financial stress, you'll need to be prepared with a solid plan. So give us a call (866) 990-7664 or visit our website, your American retirement.com so you can contact us and schedule a complimentary no obligation consultation.

Speaker3:
We don't want you to spend your retirement watching the ups and downs of the market. Many people like working with a licensed professional slash advisor or retirement planner who can look out for their best financial interest. So in many cases, consulting with a professional will save you money in the long term. Let's look at stat number five. 69% of Pre-retirees think their retirement savings are not on track. That's that. Whether or not they know their goal amount 6,569% of Pre-retirees don't feel confident about their retirement savings being on track. This statistic is based on a 2023 Federal Reserve report that showed how retirement preparedness. Varied based on different demographic factors. Matter of fact, I think in a previous show we went over that report, talked about the different factors based on age, demographics, income levels. So. If you have some doubt about your retirement savings, consider meeting with me. Meeting with Qmg Financial during a no obligation consultation so we can address any questions and make recommendations on how to maximize what you have already saved for retirement. Okay, so if you're unsure how to best maximize your income in retirement, give us a call today again (866) 990-7664 or that's toll free (501) 249-2343 is my direct number. Or again visit our website your American Retirement ta com to schedule a complimentary retirement consultation and a 401 K or IRA review, our listeners can work directly with us with no obligation.

Speaker3:
Hey, start number six. Nearly. 80% of Americans feel the nation is facing a retirement crisis due to a lack of pension options. I run into this a lot, so nearly 80% of Americans feel the nation is facing a retirement crisis due to a lack of pension options. Now listen to this. More than 3 in 4 Americans believe pensions help lead to a more secure retirement, per the study. I'm in that group. Okay. The survey respondents aren't the only Americans who want pensions back. During the last year's labor strikes, unions like United Auto Workers pushed for pension plans in the new deals. Ultimately, the UAW demand was denied, suggesting that companies don't share the appetite to go back to the pension model, which is considered more expensive for the employer. Quick side note, folks. Remember my parents, grandparents, anybody that you know that had a job a lot of times when they were younger, they started that job and they stayed there for, what, 30, 40, 45 years? And then they retired. But back then they had a defined benefit plan, a pension. When they retired, they had that retirement party, they got the gold watch and they went off into the sunset. But they had that guaranteed income coming in called a pension. Today, about 10% of employers offer a pension. Only a few companies are going back to offering pensions again. Ibm recently began offering pensions after shuttering its legacy pension plan for nearly two decades, folks joining the likes of John Deere and Coca Cola, which still offer pension plans as well.

Speaker3:
All right. So. But folks, if you're not aware of this, what we do at SMC financial is we can set you up with a personal pension plan. Did you know that? So you can create your own personal pension plan? You no longer need to rely on your employer to generate consistent and often increasing monthly pension payments that you can never outlive. So you need to contact us today 866990766 4 or 5 012492343 again or visit the website your American retirement.com and schedule your no obligation consultation and learn how a personal pension can transform your retirement. Folks, that's what we do all the time. I'm I'm on the phone this week already with 3 or 4 people. And that's what we're talking about taking their 401 K, taking some of that money, rolling it into a guaranteed lifetime income annuity or a pension. That's what a pension is. Guaranteed lifetime annuity okay. They're doing it themselves. All right. Let's get number seven. All right. Number seven. Approximately 40% of people don't consult with an advisor or professional planner, okay? 40% of the people don't consult with an advisor or professional planner. Folks, what plan do you have? And I'm not saying that you guys aren't smart, but don't you think that. I mean, if you feeling sick, what do you go? Do you try to diagnose it yourself? Do you go down to the coffee shop or the donut shop where everybody that you know, those folks that are at the donut shop every morning, they're solving the world's problems and creating some more of their own? Where do you get your advice from? So if you're feeling sick most time you go to a doctor, that's right, a physician.

Speaker3:
So if you're getting ready for retirement, you see retirement within five years, seven years, ten years from now, folks, it's never too early to plant. Matter of fact. The sooner that you do it today, you say, we're ready. I don't plan on retiring for another ten, 15 years. Great. Now's the perfect time. Because. Remember. The magic of compound interest. The longer that we can take your funds, that of a 401 K and put them into a lifetime guaranteed income annuity guaranteed at 8% compound interest, the longer you leave it in there. Guess what? The magic of compound interest works in your advantage. It doesn't do a whole lot of good if you put your money in there today and you want to take it out next year. Yeah, we've got guaranteed 8% growth for that one year. But we just got 8%. You do the math. 8% compound interest over a ten year period. It's going to more than double the money that you start with.

Speaker3:
Anyway. That's what I talk about. All right? You need to have a plan and you need to get with a professional advisor slash retirement planning. Dave Ramsey once wrote. Trying to save for retirement without professional help is like wandering into a haunted house alone in the dark without a flashlight. Okay, if you're among the people who are not working with a licensed advisor, your other or other professional, you are not. You are at a disadvantage with everything from figuring out retirement savings needs, basic needs, expenses, learning about investment options, and simply having their retirement options answered. Folks, let me give you an example. So one of the gentlemen that I spoke with this week, this young man is, um. He's about to retire. He's got a nice sum of money in his 401 K. So we looked at a couple of different options. Now see, when I tell people this, the annuities that we have available for you today or we have available to us to market, then those weren't around two years ago or three years ago or four years ago. Okay, they are today. But this gentleman that we that when I'm working with right now, well we were able to do is we're looking at him. We're either going to put him into a guaranteed interest annuity that gives him a guaranteed rate of return. Guaranteed interest works like a CD. It's not a CD, it's an annuity.

Speaker3:
But it works like a CD. But guess what? He's able to take that interest payment out as income. So we're looking at that as an option or number two option. We're looking at an income annuity guaranteed for his lifetime okay. Both of them are very very solid options. We just got to figure out for him which one he feels like is going to be best for for him for his situation. He's single, but he still wants to be able to optimize the money he's got in his 401 K. Put that into one of those two types of annuity. Either get the guaranteed rate for a certain period of time, take that interest as a payment slash income, or take that 401 K, put it into a guaranteed lifetime income annuity where he knows that he can never outlive that income, that we start him up, set him up with his own personal pension plan. So folks, that's what we do. Again, hopefully you took some good notes because we talked about the seven. Hopefully these will get you motivated to get out there and take care of your retirement plans. At least get something started. Okay. Seven statistics that hopefully have got you motivated to start your planning for retirement today. So folks, listen, you're listening to your American retirement. My name is Randy Sams. We're going to be right back after this.

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

Be happy. Make me smile with me. Never will I feel discouraged cause I love snow mystery. Grading.

Speaker8:
You're listening to your American Retirement on 101.1 FM. The answer where little Rock comes to talk. And again, if you want or need assistance with your retirement planning, reach out. A man of his community and a caring individual, Randy Sams, would love to meet with you and discuss how he can help you reach your financial goals. Everything from retirement planning, risk management, estate planning, and a whole lot more. Building sound financial plans for listeners of your American retirement is what Randy does best. Visit your American retirement.com or give Randy a call 86699076648669907664. And don't forget your American retirement. Brand new episodes drop every Saturday at 10 a.m. right here on 101.1 FM. The answer earlier in the show, Randy broke down seven retirement statistics that will motivate you to start planning for your future. So go back in the podcast archives if you missed any part of today's show, and listen for those very important seven retirement statistics that will motivate you to start planning for your future. All right, let's touch on the three states that are too expensive for many retirees and three states to consider instead. The story. According to Yahoo Finance, here are the three places that are too expensive to live in. If you currently live in or are considering moving to one of the following three states, you may want to consider maybe a similar or nearby state so you can boost your budget and quality of life. Number one California. With all the beauty of California, statistically, it's the third most expensive state in the country with a cost of living nearly 38% higher than average and housing prices 94% above the national norms. Hawaii also very beautiful, but the costs in Hawaii run incredibly high at 84% above the national average, making it the most expensive state of all.

Speaker8:
You can expect to spend more than $10,000 per month. Again, I'm going to say that one more time you can expect to spend more than $10,000 per month just on living expenses in the Aloha State and Washington, D.C. and while technically not a state on an annual basis, living in DC would cost you roughly 50% more than the national average at close to $110,000 per year. Now, let's look at three affordable states to live in during retirement. Number one Nevada. Although costs in Nevada are still 3.2% above the national average at $61,000 per year, total annual expenditures are nowhere close to the 92,000 you'd spend in California, the Sunshine State, Florida. If you're looking to keep more money in your pocket, Florida should be a runaway choice for you residents. Enjoy. Ready for this? The no state income taxes. You got to love that about Florida. And finally, Delaware. For Delaware, total annual expenditures on average cost around $70,000, roughly 40,000 below the cost of living in the nation's capital. In addition to its beauty, there's no sales tax as well. And significantly more affordable housing is located in Delaware. All right, a quick update on the US national debt. As Randy told you earlier in the show, it's now up to $34.5 trillion. This according to US debt clock. Org to address the national debt, the US will likely have to increase taxes and or cut benefits from retirees and other Americans. So please don't enter retirement without a plan for Social Security. We anticipate some changes coming in the next decade or so. It's critically important that you get in touch with us to learn how to maximize your own Social Security benefit based on your unique needs and situation. (866) 990-7664 give Randy a call or visit the website. Your American retirement.com.

Speaker9:
It's this week in history.

Speaker8:
All right. Before we get back into the final segment of today's show, if you hate Daylight Savings Time, small tidbit for you on this date. March 19th, 1918, US President Woodrow Wilson signed the Standard Time Act that established Daylight Savings Time. Really one of the more harmless features of our yearly calendar. When you think about it, that gets the most amount of venom from a lot of people in the US. Hey, look, if you want to unite the parties, Republican and Democrat together, just start a discussion about Daylight Savings Time. There's a unity right there. All right. Thanks for listening this week. Stay there because Randy is about to play. Right or wrong. Here's Randy with the conclusion of this week's edition of Your American Retirement.

Speaker3:
Now you're listening to your American retirement. Join us every Saturday morning at 10 a.m., right here on 101.1 FM. The answer where little Rock comes to talk. All right, folks, I'm looking forward to this.

Speaker2:
Come on down as we test your financial knowledge in right or.

Speaker3:
Wrong on this segment. This is something that we haven't done in a in a in a while. But, uh, as we're talking about Social Security, one of the seven statistics as far as retirement goes, to get you motivated, we got to think about Social Security. We're going to talk about Social Security addition. But this is right or wrong. I'm going to ask a question. I'm going to let you answer it. Is it right or is it wrong with what my question is Social Security addition. All right. So many of the questions that we hear regularly from our listeners when I meet with clients, this is always on their list as well as clients, supports or surround the topic of Social Security. Number one, under current Social Security law, full retirement age is 65, no matter when you were born. All right, somebody's going to buzz in. All right. Well, that's wrong, folks, all right? That's what it used to be. You know, when I talked to people, I guess some folks say always have it on their mind. Retirement age is 65. And that's what I guess everybody used to shoot for, because that's when Social Security kicked in. You could take it at age 62 if you want to. That's another rabbit hole. We don't want to go down right now. But if you think that the full retirement age right now is 65, no matter when you were born, that's wrong. The Fra full retirement age for Social Security benefit in the US is 67. For people born in 1960 or later, it's 66 for those born from 1943 to 1954.

Speaker3:
And it goes up from there 66 and two, four, six, 8 or 10 months. For people born from 1955 to 1959, the retirement age increases by two months per birth year. Question number two. Now, folks, it's the Social Security. When I turn it on, how long should I leave it? This is something that we spend a lot of time on with our clients. Uh, because it makes a difference. Because if you turn on Social Security at age 62 that it's locked in for the rest of your life. So the longer that you can wait, the higher your retirement benefit is going to be. Your Social Security retirement benefit is going to be. And if you can wait to age 70, you max it out. And we have ways that we can do a Social Security bridge that can get you from 62 to 60 7 or 60 5 to 70, 67 to 70, whatever. We call that, a Social Security bridge that we can use your current funds that you have. All right. Let's look at question number two. Right or wrong, in most cases, if I take benefits before my full retirement age, they will be reduced for early filing. Who almost gave that one away? In most cases, if I take benefits before my full retirement age, they will be reduced for early filing. So you can start receiving benefits as early as age 62. But if you choose this option, your benefit amount will be permanently reduced if you turn on Social Security at age 62. Your benefit amount will permanently be reduced.

Speaker3:
That reduction is based on the number of months you receive benefits before reaching your full retirement age, so the exact reduction will vary depending on your specific full retirement age, which is based on your birth date. Now, folks, I know a lot of people that when they hit age 62, they one of the first things they do is, man, I turned on my Social Security. It's a little bit too late if it's already happened, and we get together because there's really nothing we can do about that. If it's already been turned on and you've had it for, you know, two years or five years or whatever, but a lot of people just want to be able to take that deal. But at least what I want to be able to do. Remember what's our mission to educate you? We want to educate you on what your options are. If I have a spouse and he or she passes away, I will receive both my full benefit and my deceased spouse's full benefit. Folks that's wrong. This is something that a lot of people get surprised when I tell them this. Social Security will continue to pay benefits to a surviving spouse after one of them passes away, but only the larger of the two benefits will continue to be paid. Payments for the smaller benefit of the two will cease immediately after the death of the first spouse. So, folks, the question you got to ask yourself if my wife is used to having my Social Security and her Social Security, and I pass away and she's able to take my Social Security because mine is the higher of the two, she loses that income that she has been used to having every month her Social Security.

Speaker3:
How do we address that? We do that during a free consultation. So that's why you need to give us a call. Okay. Last question. If I delay taking Social Security benefits past the age of 70, I will continue to get delayed retirement credit increases each year. I wait folks, unfortunately, that is wrong. That's false. Your benefit will increase by 8% for each year. You delay claiming it after your full retirement age. So if you were born in 1943 or later, waiting until you reach age 70 will yield the maximum benefit. So there's no reason to wait beyond age 70 because your benefits won't increase any further. So folks, listen, that should give you a little bit of insight on Social Security. Some of the questions that I get asked about Social Security and why it's important that we need to sit down and do a free consultation with you and your spouse, and let's whatever fog you may have right now about Social Security, let's clear that fog up. So, folks, listen, I want to thank you for listening to your American retirement. So if you've missed any part of today's show, go back in the podcast archives on Apple, Google, Spotify, or wherever or whichever platform you get your podcast. Folks, I want you to go out and have a fantastic rest of your day. Have a great week. Go hogs! God bless. We'll talk next weekend.

Speaker1:
Thanks for listening to your American retirement. You deserve to work with experienced, licensed financial insurance professionals who can offer sound strategies for protecting and growing your hard earned money. To schedule your free, no obligation consultation, visit your American retirement.com today. That's your American retirement.com, not affiliated with the United States government. Randy Sams does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. A mirror life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

Speaker2:
Fixed indexed annuities can help protect your retirement savings against market ups and downs. Nationwide's peak ten can help protect against market risk and provide guaranteed income for life. Peak ten also has an optional rider that offers an immediate 20% bonus based on your principal applied to your income benefit base. Call us now at (501) 249-2343. That's (501) 249-2343. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio.

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