YAR 7.15_AWAITING COMPLIANCE.mp3: Audio automatically transcribed by Sonix

YAR 7.15_AWAITING COMPLIANCE.mp3: 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 hosts. Randy Sams and Kale Simpson get set for a full hour of financial information and economic news affecting your bottom line. Randy and Cale work hard each day to educate Americans like you on how to reach the financial freedom they worked so hard for by protecting and growing their hard earned money. And they can help you, too. So now let's start the show. Here are your hosts, Randy Sams and Kale Simpson.

Randy Sams:
Hey, good afternoon, Central Arkansas. Randy Sams. Kale Simpson. When you're American retirement, we want to welcome you to the show. You can reach us 8669907664 or go to the website, Your American Retirement. We want to talk about today. The show is the title. The more you learn, the more you earn. So Cal and I are going to be talking about different subjects. Again, we want to welcome you to the show. Got your set up for American retirement schedule, a free consultation with either Kayla or myself. Subscribe to the podcast. If you listen to podcast, we are we're there to leave us a rating. Rating. You know where it says little bell hit the thumbs up? Like us give us a deal. So market updates help. Give us a little market update for me today.

Kale Simpson:
All right, Randy, good talking to you. So market updates, guys. Jobless claims or new jobs created a little higher than expected, actually. Quite a bit higher than than expected. We expected 250,000 new jobs created. It was more in the line of like 317,000, I do believe. So it's a little hotter. It's weighing on the market just a little bit. And in addition to that, Randi, we've continued to see a strong dollar, strong dollar's going to it's going to play its role in currencies, obviously. But with that being said, we have seen we've we've seen bond yields fall. So that means there's been a flight to treasuries and we've seen that ten year treasury come down quite a bit, actually actually went down below 3%. We've seen the shorter end of the curve, the two year Treasury rise above the five and the ten, which is an inverted yield curve. We won't go into detail about inverted yield curves, but you guys can just Google. What does an inverted yield curve mean? And you can read all kinds of various articles regarding inverted yield curves. Let's give a let's give the listeners an update on gas prices. Randy gas prices have come down. We watched oil go from $120 a barrel down below $100 a barrel, which is great for us. Going to the gas pump, $4.30, roughly, is the average here in central Arkansas, which is better than 4.49. I think it is what it was averaging last week when we when we talked about gas prices on the show average, the national average is still above 4.50. It's 4.72 on a national average. But if we're around 430 here in central Arkansas, that's not too bad. I just got back from a trip to Mississippi yesterday, actually, and I filled up for 4.49 in Mississippi, but then I also filled up for 439 on my way back. So starting to see a little bit of relief. Still not where we need it to be. So ultimately we're still feeling the pain at pump.

Randy Sams:
Randy Yeah, and we're getting into the summer months, you know what I should say? Getting into we've been in the summer months, especially here in central Arkansas. It's getting hot now. But you know, you've got families that are getting ready to go on vacation. And something that we may not have had to take into consideration is as large lead today as we have in the past is because gas prices. So, you know, we've got a trip planning driving to Florida. And that's something that, you know, that I've got to look at is, you know, I can fill up my tank here in Arkansas, but what's it going to cost me in Georgia or Florida to fill up? And then when I have to come back, what's it going to cost me? So, you know, that's just a little added added cost that we have to endure with the gas prices. But, you know, as far as market goes, just for everybody's information, I've got an article from MarketWatch and I get emails from them every day kind of giving us updates on what the market's doing, what some of their objectives are, what they're looking at. So what they're saying right now that the S&P 500 officially dropped into a bear market on June 13. Closing down more than 20% from its last peak. Then they went on and did a study, Wells Fargo Institute using Bloomberg data, did a study. And here's what they've done. They studied the last it says 11 past S&P 500 bear markets since World War two and finding that the downdrafts lasted an average of 16 months and produced a -35.1% bear market return. But what really caught my eye, Carl, is that the length to recover just on a bear market is over 24 months, so just a little over two years to recover from the bear market. So what we're looking at, folks is the fact that sequence of returns comes into play. And what that means is that if.

Producer:
You're.

Randy Sams:
If you're working right now and you've got a 401k and you don't really want to look at what your value of your 41k is because you know you've lost 20 to 30%. We enter into a bear market if a recession hits, but you're young enough to where you can kind of override that, you can ride it out. But still, if it takes 24 months or three years, 36 months, whatever, but where it really comes into effect, Cal, as you and I, what we deal with every day is when we've got folks that are retiring or you're getting close to retirement and you hit your 401. K or your investment accounts, whatever it might be, if it goes down by, you know, 28, 30%, what are you going to retire on? You're going to retire on a lot less. And what do you come into play where the sequence of returns happens if you retire and you start taking money out and at the same time your account value is going down by 25, 30%, you're running a risk of not being able to have your account, your funds last throughout your retirement. So that's where sequence of returns comes in. So when I saw that this morning and I knew we were going to talk about the market, I wanted to add that little piece of information because for those of you who are getting close to retirement, this is what Cal and I do, is we believe in removing risk. We prepare our clients for a secure retirement, not a risky retirement. So we want to take part of the risk off. And one of the risks that you're going to run into is sequence of returns. At the same time, the market is going down. But what do you do if you're 41k is going down or your investment accounts going down? So give Kale Taylor myself a call. 8669907664 or go to your American retirement schedule a consultation with Kayla. And I care what you have to add to that, brother.

Kale Simpson:
Yeah, absolutely. And guys, all the listeners out there, remember, we do provide comprehensive consultations at no cost, no obligation to our listeners as we've been doing these radio shows and podcasts. Randy You know, the type of feedback that we've been receiving from Arkansans and every episode goes onto the website. So that way you can share that with friends or family that might not be able to listen to the broadcast on one on 1.1 on Saturdays. So, you know, your American retirement dot com. We have we have the episodes loaded into the website. But, you know, you kind of hit the nail on the head earlier, Randy, when you're talking about sequence of returns, risk and what we do. By removing unnecessary risk from the overall retirement retirement equation, I think speaks volumes to what a lot of people are doing. I mean, right now, if the S&P is down 19% year to date, call it 20% year to date, it was down more than that. We had we had a decent. Bounce in the market last week and a little bit of a bounce this week. Still, we're not anywhere close to getting that back. And one thing that I explained to clients and I think I think I've explained this to you two or we've talked about it, think about this real fast. So if I had a dollar. And I lost half of that dollar to you, Randy. How much? How much do I have left? Can I have 50.

Randy Sams:
Cent.

Kale Simpson:
$0.50? Correct. So I lost 50% of my money. Correct. So now I have I have $0.50. How much of a return do I have to make on that $0.50 to get my dollar back? Is it?

Randy Sams:
100%.

Kale Simpson:
It's not.

Producer:
100%.

Randy Sams:
100%.

Kale Simpson:
That's right. So a lot of clients that we talked to when I explained that analogy to them, you know, their eyes open really wide and they go, well, I didn't understand that well. It's the difference between absolute and relative returns on on real money. So, you know, you've really got to keep that in mind. And, you know, Warren Buffett, it's what we were talking about, the title of the show today. The more you learn, the more you earn. That is Warren Buffett. He's probably the most famous and prolific investor of of our lifetimes of multiple generations. And he's been he's always been one that will outperform the benchmark or outperform the S&P. And I can't remember the number that we talked about this morning. I think the market being down 19%. Sam helped me. I think his company, Berkshire Hathaway, was down about 7%.

Producer:
Yes, that's right.

Kale Simpson:
Performing about 12% better than the S&P this year. And he he does a lot of research, obviously, and knows companies very well before he decides to put his own cash or the company's cash into that. But not a lot of our listeners are able to do that. Everyone works. Everyone saves money for retirement. They have 401 case defined contribution plans, IRAs, 403 B's, Randi. And they need that money, that nest egg, to last them to create an income stream for the rest of their life in retirement. And that's what we do. So not everyone is Warren Buffett. Not everybody can be Warren Buffett. But what we can do is we can look at the retirement landscape, make proper recommendations based on what clients are trying to what clients are trying to achieve financial goals and objectives in retirement and build plans, strategies and ideas around those goals. Right, Randi. So all the listeners out there, we've had a huge amount of feedback and it's been great feedback. So so don't forget, guys, comprehensive financial consultation, consultations at no cost. Let us analyze your financial situation.

Randy Sams:
We're going to take a short break. Your American retirement with Randy Sams and Kale Simpson 101.1 FM. The answer.

Producer:
He was proved. In liberating strife. Who more than self. When it comes to saving for retirement, who is winning the battle of the sexes? I'm Matt McClure with the Retirement Radio Network. Powered by a marriage life. The gender gap is a real thing in the US with women making less money on average compared to men. Congress passed the landmark Title nine law more than 50 years ago prohibiting gender based discrimination in education, and that resulted in women pursuing careers that had previously been considered off limits. And while females have made strides over the years when it comes to finances, a new study from TIAA shows it's men who are setting aside more money for retirement 27% more, to be specific. And while that number is better than in years past, it's still a significant gap.

Jill Gonzalez:
And in the past year, 78% of men have increased their retirement portfolios through stocks, compared with 51% of females. And now this imbalance really underscores not only the gender wage gap, but it also has really far reaching implications for long term retirement security.

Producer:
Stephanie Simcox with Yahoo! Finance recently reported on the gender gap in retirement savings.

Jill Gonzalez:
When stretched over the course of a career, a woman's lower wages really directly impact her ability to save for that nest egg and then live comfortably in retirement.

Producer:
And she says, the pandemic surely didn't help the situation. In fact, it got worse.

Jill Gonzalez:
Because of the pandemic. A preponderance of women have downshifted, taking time away from work to really concentrate on these pandemic measures of supervising remote schooling for children or caring for aging parents.

Producer:
The TIAA study also showed women have some catching up to do when it comes to financial literacy. When asked financial questions in a survey, women got 45% of them write, compared to 55% for men and alone with. Tiaa told CNBC that all of this underscores the need to equalize financial education among the sexes. So women. Do you have a sound retirement plan in place? That's a key question to consider as all of our retirement years draw closer with the retirement radio network powered by a life. I'm Matt McClure. If tomorrow all things were gone. Worked for all my life and I had to start again. Just my children.

Kale Simpson:
Welcome back. Your American retirement here on 101.1 FM. The answer. Thank you so much for listening today. We've gone over quite a bit of information. You guys had the opportunity to listen to an excerpt regarding women in retirement. We just want to remind all of our listeners that. Life happens. We have meetings with. Widows. You know, my my my step mom is is a is a prime example. I mean, my my dad passed away sooner than he should, and my step mom needed needed help. So so we we helped her out. We created a plan and put that together for her. But it doesn't matter if if if you're a widow, if you're married, if you're separated, if you're divorced, if you're younger, if you're older. As we can, we can formulate different scenarios and aspects of a retirement plan and do our absolute very best to try to put you on the right track, regardless of, you know, regardless of how old you are or where you are in retirement. So I hope that makes sense. But in addition to that, Randy, real quick, I wanted to go over a few things before we jump into the next segment. And one thing about it is we've talked on prior episodes about, you know, removing unnecessary fees from a portfolio or taking we talked about it earlier in the episode, taking unnecessary market risk out of your portfolio and then also being tax efficient.

Kale Simpson:
So all of these things, I'll go over a few bullet points, Randy, but just to remind our listeners, to go over any of these things is not a problem. We can tackle each and every one of these individual items because they all come into play and they all play a huge role in someone's overall retirement, not only at the beginning of retirement, but later down the road in retirement. We all want to retire sooner than later, but we all want to live and not run out of money or outlive our money as we get older. So a few of these bullet points, Randy, that I wanted to go over with our listeners and then you can obviously expound on on any or all of them. But what we like to do at SMG Financial in your American retirement, if you can reduce fees that you're currently paying, guess what? You earn more on your investment portfolio. So if you can reduce expense ratios or or other fees that are embedded in something, embedded in an annuity that you might not be aware of, let us take a look at it. Let us analyze it and see if there are if there are items that we can remove or unnecessary fees that you're paying back.

Randy Sams:
Yes, sir. Yeah. Let me jump in real quick, because, you know, we talked about fees and I'm going to just put this little nugget out there. You know, a lot of times when you got folks that are dealing with what can we call them, managing accounts, advisors, whatever you want to call them. But one of the things that they come against annuities is first thing they say is what? Oh, man, they're loaded with fees. Right. But the truth be and Kale, you and I both know that not all annuities have a fees. All right? And the thing you have to look at when you're dealing with an annuity, if there is a fee inside the annuity, about 99.9% of the time, what you're paying that fee for is a guarantee. So if you're looking at an income annuity, unless you're going to delay taking your income, say, anywhere from 5 to 10 years out, there's going to be a fee to get a guaranteed return on your investment. And it's going to be a fee to get the guaranteed lifetime income for yourself. And also, if you want to set it up for joint income yourself and spouse. So the fees, basically when you see those within annuities, majority of the time those fees are giving you guarantees. You also have fees in the indexed annuities that if you pay a certain amount of a fee, it gives you a higher percentage of your participation rate. But but when you're looking at fees to charge for management, you're paying a fee whether it goes up or goes down. Is that correct? Yes.

Kale Simpson:
That is correct.

Randy Sams:
So what happens is, I mean, we've just come back from a long holiday weekend and some of the folks that, you know, that I spent time with, they were talking about how they were upset because every month or every quarter, guess what happens? They they get their little statement on their investment account and they have this fee that they have to pay. And unfortunately, for every one of them that I spoke with this weekend, the account that they were being having managed and paying a fee for was going down. And so that's when they started kind of bringing up the annuities. But I just wanted to bring that up. So when you look at annuities and if you're talking to someone and they say annuities are loaded with fees, Kayla and I, our first objective is to put you in an annuity and utilize build a plan for you where we want to start out with annuities with no fees, but feel comfortable knowing that if there is a fee inside the annuity, you're paying a fee for the guarantee that we get, is that correct?

Kale Simpson:
Well, that's right. And and you're spot on, Randi. A lot of clients are they're against fees of of any kind because they like you said, they've been burned with paying fees and also losing losing principal. So we can we can structure an annuity that is a no fee chassis. That's not a problem. We do. We do quite a bit of those, actually, Randi. So so good point. But back to the bullet points. Bond replacements, bonds. Bonds have been down. The market has been down. Cash has been down to inflation. Bond replacements, I mean, that's a hot topic. We talk to clients all the time about bond replacements. In addition to that, fixed index annuities, the main the bread and butter that we talk to clients about on a daily basis. How is that fee smart, mark market intelligent and tax efficient? Well, all of those things, Randi. What is an fire? Do it. Protect yourself. You can never do less than zero. So in a down market where the market is down 20%, what do we tell clients? That means zero is your hero in this market environment, zero is your hero. But tactical asset allocation, we talk about that individually with clients, but that is something we've got software programs and we've got different different companies that we work with that are really big on making sure that we have proper tactical asset allocation models that are in place. Roth Conversions Randi talked in great length last last episode about Roth conversions. That's not for everyone, but for certain clients that might make financial sense. We'll go over that with with you individually and then also life insurance. That's a tax free investment. So when I spoke earlier about my dad passing away, fortunately he had life insurance. And God forbid, if something were to happen to me tomorrow, Randi, guess what? In our safe, I have it all outlined on paper. Guess what? You know what it says. I think I've told you before, Nancy needs to do what.

Randy Sams:
I call Randy.

Kale Simpson:
Oh, Randy, that's exactly right. Call Randy. And then Randy knows everything that's going on. And he'll be able to help my wife because she's not going to be in a position to even want to entertain the idea of taking care of final expenses or whatever's going on with our children. So, guys, all of these things come up. I had a great a great buddy of mine that that called me out of the blue. I had to do some business with him, Randy. And guess what he told me? He said, I don't have enough life insurance. We just had another kid. And I said, Well, I can I can help you with that. He thought it would be tremendously difficult to get life insurance. It's not. I think we did it. It was like 10 minutes. I went to his office. We did the application. It was approved the next day. Now he has enough life insurance to take care of his wife, who's a homemaker and and his kids. So he's happy. But again, all of these things, this is what we do. No obligation, free consultation. We find various holes in a retirement strategy and we do our absolute best to try to fill those holes. Right, Randy?

Randy Sams:
Right. Kalan, you've said something about bond replacement, folks. What we'd like to have you do again, give us a call. 8669907664. Go to the website, your American Retirement Schedule, a free consultation bond replacement. If you look at your portfolio and you want to take if you take some of the money or the money that you have invested in bonds right now and you invest it into an income annuity, what it's going to do is going to do two things. Number one is going to increase your returns. Number two, it's going to decrease your risk because an income annuity is going to act the same as a triple rated bond with triple C rated return. So there's been challenges out there by economists that have talked about this, that they'll anybody that wants to put together a portfolio come back to them and they're going to take out the bonds, they're going to put the income annuity in. And that income annuity, like I said, acts like a triple-A rated bond with triple C rated returns guaranteed, it's going to increase your return overall return and decrease the risk, because when you got guarantees put into your portfolio, what does that do? It helps them, correct? Absolutely. Everybody helps everybody. So lot lot to talk about, kale. We're we're excited about this, folks. If you want to, please give us a call. 8669907664. Your American Retirement Tom Randy Sam's Kale Simpson what all 1.1.

Producer:
F in the answer.

I'll never be your beast of burden. My back is broken.

Producer:
How long will inflation last? I'm Matt McClure with a retirement radio network powered by America Life. Americans and people around the world are struggling through the worst inflation we've seen in four decades. Everything from a gallon of gas to the food you buy at the grocery store is all more expensive these days.

Jill Gonzalez:
We're also seeing it in all sorts of other everyday services. Nail salons, hair salons, you name it, you're seeing difficulties in terms of higher prices.

Producer:
Tara Sinclair is a professor of economics at George Washington University. She says the inflation situation is a bit of a vicious cycle right now.

Jill Gonzalez:
Employees are asking for higher raises and then employers are trying to figure out how to pass those costs on into the goods and services that they're selling.

Producer:
Ongoing supply chain issues are a huge factor driving inflation. In an ideal world, Sinclair says, fixing those issues would be a perfect outcome.

Jill Gonzalez:
If we could provide all the goods and services that people are demanding at the current prices, then we would be in much better shape and we wouldn't see this competition to buy these goods and services. That's really pushing up the prices, but.

Producer:
It doesn't usually work that way. Instead of increasing supply, the way we usually tamp down inflation is on the other side of the equation.

Jill Gonzalez:
And so instead it's about slowing the demand for goods and services. And the way that that happens is through the Federal Reserve, our central bank, raising interest rates.

Producer:
And that means things like car loans, mortgages, home loans and credit cards get more expensive. It's not the most pleasant way to do it, she says. But that is likely how inflation will cool down in the coming months. The Fed's interest rate hikes have also caused a lot of volatility in the markets. But Sinclair says if you're planning for retirement, it's not all bad news.

Jill Gonzalez:
It is important to remember that they have seen strong years of growth recently up till now. And so we're seeing a lot of people that have a lot better financial conditions now then, particularly if we think about people that were trying to retire after the global financial crisis.

Producer:
And she says many pre-retirees are looking to move assets into safer investments.

Jill Gonzalez:
And there are these higher interest rates from the Fed are good news. So hopefully they can look forward to to that and maybe be able to find a steady annuity that will support them in retirement.

Producer:
So how will you respond as interest rates go up in an effort to bring inflation back down? That's a key question to consider as you plan for your retirement years with the retirement radio network powered by a merrill life. I'm Matt McClure. Thanks so much for listening to your American retirement. If you like what you're hearing, make sure to rate our show on Spotify or wherever you listen to podcasts. We get it almost every night.

Kale Simpson:
All right. Welcome back to your American retirement. And bright Saturday here on the 1.1 FM, the answer, Kale Simpson and Randy Sams with SMG Financial. Coming back to another segment, hopefully you enjoyed you enjoyed that last audio clip. Randy, I've got a little game here in front of me that I would like to play. If you'd like to play a little game of right or wrong, let's do.

Randy Sams:
It, Carl.

Kale Simpson:
All right. So for the listeners out there, if you've if you haven't heard us play right or wrong, I'm going to ask Randy a couple of questions, and I might even ask our producer Sam a question, see if he's been see if he's been reading up and learning like we were talking about the title of our episode today. The more you learn, the more you earn. That's from Warren Buffett. But see, if Sam's been been doing his homework as well. But I'll ask you a question, Randy, then you give me the answer. I'll tell you if it is correct. And then you can go on and explain to me why that answer is either right or wrong. And then I'll send you a question that you can ask me, and then I'll see if I can answer it, and then we'll get Sam involved if he wants to get involved. So let's go ahead and get started, Randy. All right. Yes, sir. I'm waiting for the first question on right or wrong, there is no way to generate tax free income in retirement.

Randy Sams:
I need my buzzer. That's wrong. There are ways that you can generate tax free income in retirement. Number one is, as you know, a couple of episodes back, we spoke about Roth IRAs. Roth IRAs allows you to put your money in before tax. You paid your taxes and we paid your taxes when you're putting the money in and let it grow. So it's tax deferred. But when you start taking the money out, that money is tax free. Plus, you don't have to you're not required to take RMDs at a certain age. Also, tax free withdrawals from life insurance policies. Kale you and I do a lot of IUL indexed universal life policies that folks will put some money in over so many years. Or you can do a single premium. Let that let that amount grow. And then when you hit retirement age, the money that you take out is not taxable because it's looked upon as as a withdrawal. So you're taking a loan against your cash value. Also, whole life insurance, participating, whole life insurance. There's a lot of folks that that do the whole life insurance. And again, the same way as you can take that money out in the form of a loan and that is tax free. Did I get that right, Gail?

Kale Simpson:
Very well done.

Randy Sams:
Yes, sir. All right, so now it's my turn to ask you a question.

Kale Simpson:
You ready? I've sent it your way. Go ahead.

Randy Sams:
You can increase your Social Security benefit by waiting additional time. Pass your full retirement age.

Kale Simpson:
Oh, that is correct. That is right. I know for certain that by waiting to withdraw, all your Social Security benefits will increase your total benefit amount by at least 8% per year, up to the age of 70. So that Randy, that's one thing that clients ask all the time. They're turning 62. They ask the question, don't they? When should I take retirement? When should I take Social Security income, Randi? You know, that's the question we get more often than not. Does it make more sense for me to take Social Security benefits at age 62? Should I wait for a few years? Should I delay it until age 70? I mean, everyone is going to be different. It is it is not a it is not a concrete answer, Randi, on should I wait until age 70? Not everyone is going to be in that same boat. So we might advise clients to take income early if need be, but it's going to be on an individual basis. Would you agree with that answer?

Randy Sams:
Yeah, I would, Kaitlyn. That's what I would like people to realize, that that's something that Carol and I do. Let us call 8669907664. Go to the website, your American Retirement Schedule at free consultation. One of the things that Carol and I like to do is if you're if you're getting close to retirement or you're trying to make that decision, I'm about to turn 62. Should I take it 62? Should I wait till my full retirement age or should I wait till I'm age 70? So let us sit down with you and go over. Because what I look at, Cale, is what is the break even point? In other words, if you take your Social Security at age 62, some people say, Yeah, well, that gives me a five year jump on my Social Security. That's true. But you're also getting anywhere from 25 to 30% less each month. If you take it out at age 62, then if you wait till your full retirement age and then every year that you wait past full retirement age, your benefits jump up by 8% per year to age 70. And so what we like to do is what is your break even point? Meaning as an example, if you take your Social Security benefits at age 62 versus 67, at what age will your age, 67 benefit catch up and then surpass the age 62 benefit being pays? And usually those are that's anywhere from like 7 to 8 years. So let's just say you waited till you're 67 to take your Social Security benefits and seven years from then. So that would be 60, 74. So at age 74, from that point in time, you're actually making more money. You're losing money if you take it at age 62, you're making money if you waited to age 67. So again, give us a call, 866907664 and let us let us do that Social Security analysis for you.

Kale Simpson:
Absolutely. I've got I've got another question. Sam, are you there? I'm going to put you on put you in the hot seat. All right, Randi, listen to this one. We'll see what's going on here. So, Sam, the question is, on right or wrong, you can generate your own personal pension even if you were no longer working right or wrong Cale. And Randi, that is right. And this is good news because pensions aren't as common these days in the workplace. Some may say they've gone the way of the dodo bird and it's hard to to start a new position and even be offered a pension anymore. Of course.

Producer:
Military, federal employees, they'll still have.

Kale Simpson:
Some sort of pension situation more than likely. But, you know, for most people out there that are working in corporate America or no matter what you do, you probably don't have a pension anymore. So annuities can allow you to create your own personal pension. We've talked about that in weeks past, and I think.

Producer:
This leads us right into.

Kale Simpson:
An audio book chapter from.

Producer:
Annuity 360.

Kale Simpson:
But before I go ahead and play that, how about you guys talk about the.

Producer:
Book Annuity 360.

Kale Simpson:
And how people can learn more so that.

Producer:
They can.

Kale Simpson:
Possibly earn more? Randy, tell our listeners about Annuity 360 and how it can benefit them for us to put it in the mailbox and send it their way.

Randy Sams:
Yeah, just give us a call again. You've heard us give this number out several times and you'll hear it several times going going forward. 86699076648669907664. Or go to your American retirement and leave us a message request the free the free book annuity 360 going to give you all the ins and outs, the ups and the downs, the goods and the bads on annuities, great educational source, something that we like to give to our clients when we do the free consultation. So listen to this next segment. It's going to talk about reducing your risk into portfolio with annuities.

Producer:
Chapter 16 Reduce Risk in your portfolio with annuities. Big idea in annuity can protect against several risks that can affect retirees and pre-retirees and offer a better financial safety net than other investment types. One of the biggest benefits of investing in annuities is reducing risk in your portfolio. With current market volatility, pre-retirees and retirees are more concerned than ever about their retirement funds and protecting their hard earned wealth. We believe that annuities can be the answer to risks in your portfolio. Longevity Risks. Retirees and pre-retirees are concerned about outliving their wealth. We have offered some strategies in this book that will stretch your retirement funds, such as following the 4% rule. But annuities can offer even more protection against this fear. We are living longer, so it is important to plan for at least three decades of retirement. An annuity can help create an income you can never outlive. Your money will last for your entire retirement by utilizing monthly, quarterly or yearly distributions from your annuity account after your money grows during the accumulation phase, market risk fixed indexed annuities can protect you from market risk. These annuities are not actually invested in the market. They are only tied to a specific market index. This means that you enjoy all the benefits of your market index when it performs well, but you are not exposed to any of the market risks. Should your index perform poorly, you will either make money or remain flat. You will never lose any money. Zero is your hero. Inflation risk annuities can offer riders that can help you adjust for inflation, even though a rider might reduce your payout.

Producer:
Protecting yourself from inflation will ensure that your money lasts and is not exposed to any unnecessary risk. It is important to have an annuity with a payout linked to the Consumer Price Index or CPI instead of one that increases at a fixed rate each year. To ensure you are protected against inflation risk. An annuity that increases at a flat rate each year does not offer sufficient protection against inflation. Sequence of return risk. An annuity with a lifetime withdrawal benefit can counteract the effects of a down market at the start of your retirement. Research conducted by retired. One has shown that you can flip 15 years of returns from retiring during a recession to retiring during a market that is up and completely change your retirement outlook. The positive returns would offset your withdrawals and grow your assets before your account felt the effects of a negative return. Consider a smart, safe plan with a smart, safe plan. Your money is invested not in the market. The characteristics of investing not in the market include growth. Was safety market upside limited to no downside principal and gains protection low cost 0 to 1% annual fee time horizon of 7 to 14 years can earn 5 to 7% annually. Options are available for guaranteed income. Here are some examples of not in the market investing bank CDs. The annual percentage yield RPI is about 1 to 2%. Your time horizon is typically 1 to 3 years and you cannot access the funds until the contract is up.

Producer:
Treasuries, the APY is about 3%. Your time horizon is ten years and you cannot access the funds until the ten years is up. Fixed annuity. The annual percentage yield is between three and 4%. Your time horizon is typically 4 to 7 years. You are able to access the funds during the contract period, multi year guaranteed annuities or minus. You get between two and 4% growth on your principal depending on the duration of your policy. This is less growth than a fixed indexed annuity, but it is guaranteed the annuity company is required to pay you the rate they promise for the duration of your policy. Fixed indexed annuities you receive between five and 7% growth on your principal. The time horizon is 7 to 14 years and you do have access to the funds in your account if you need them. A smart, safe plan does not invest your money directly in the market. Your investment is tied to an index without being invested directly in it. This means that you get a portion of the market gains without the market risk. You may want to consider investing in a fixed indexed annuity over other not in the market options. If you invest in Treasuries or CDs, you will lose ground in your investment due to inflation. Investing in a fixed index annuity will likely cut down on your inflation risk. We prefer accumulation annuities because they minimize your risk in several areas and they lock in your gains through the use of point to point protection periods, meaning you won't lose money.

Kale Simpson:
Welcome back. Your American retirement, Carl Simpson and Randy Sams. Hope you enjoyed that audio clip that we just played about reducing risk in your portfolio. And we always say unnecessary risk because a lot of times, guys, risk is unnecessary. As Sam mentioned, during right or wrong, you can create your own personal pension. There are a lot of people that do. We work with clients all the time that are looking to do that same exact thing, have a defined benefit plan that's not as common as it was before. But one thing that clients have big misconception, Randi, that clients have when it comes to retirement, they look at a large sum of money, they look at their account value, and they think they have more money than they actually do. So we have to analyze that basket of money and sometimes it's bringing everyone back down to earth. It's reality. One of the biggest mistakes people make when planning for retirement. Retirement is actually more about income, Randi. It's not about having one big bucket of money or one big nest egg. People think that they have more money saved than they actually do. Remember, for one, four, one K's and IRAs of different kinds, guys, these are tax deferred accounts. When we start taking income from those tax deferred accounts, we'll end up paying taxes. Then you have lifetime income options where you might retire. Like Randy said, with Social Security, if you choose to retire at age 62 and and defer your Social Security as long as possible, you've got to have a stream of income that is sufficient so you can continue to live the way that you have lived while working.

Kale Simpson:
Or at least my wife is going to require that we do the the same exact thing, Randi. But last last thing before we go to a quick break, guys, I wanted to read this. This was a survey done by AIG, Life in Retirement Retirees. We talked about this in episode two, I do believe. But listen, when asked about planning for retirement, 59% of respondents said they actually fear running out of money more than they fear death itself. I know we've talked about it, but that is a staggering number. Almost 60% of all people actually fear running out of money than they do of dying. So that right there is enough to let you know that planning, proper planning prevents poor performance, as we say. So, guys, let us give you a comprehensive consultation. No obligation. Just give us a call. 8669907664. I'm sure you've already written it down, but let us give you a consultation. Let us let you know if you're on the right path to retirement, a comfortable retirement with unnecessary risk removed from your retirement plan. You guys will be right back on 101.1 FM the.

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Producer:
You're listening to your American requirement to schedule your free no obligation consultation visit your American retirement dot com.

Producer:
When the night has come and the land is dark.

Randy Sams:
Hey, welcome back to your American retirement with Randy Sams and Kayla Simpson on 101.1 FM. The answer, Kayla, you left off the last section. We're going to pick up the ball and we're going to run with it and we're going to take off, give, give some of the solutions. One of the things that you talked about was according to a survey by AIG Life and Retirement, when asked about retirement planning, 59% of the responders said they fear running out of money more than they fear death itself. So some of the solutions that we've spoken about in the past, number one, consider a fixed indexed annuity. Help me to help beat inflation and build your own personal pension. We've spoken about that on today's program. The more you learn, the more you earn. So what we can do with an indexed annuity, again, there are annuities out there that we can put you in where you don't lose anything. Zero is your hero. As Cale said earlier, there are no fees involved. You can have access to your money on annual free withdrawals and we can also set you up with indexed annuities that will give you a guaranteed lifetime income for yourself or your spouse. So again, give us a call. 8669907664. Go to your American retirement. Set up a free consultation with either Carol or myself. Number two, don't withdraw more than 4% of your assets each year.

Randy Sams:
There is a 4% rule chapter in the Annuity 360 book, which, if you'll give us a call again at that number and the American retirement, your American retirement website, we'll be glad to send you that book. But the 4% rule, Carl, as you know, has been utilized many, many years because what it was was that retirement. Someone came up with this theory that at retirement you have your money invested in the market. You could take out 4% and your money should last to age. I believe back then they were going to age 90, maybe 95. But as we know today, because of the technology, medical advancements, people are living longer. And right now we want to set retirement for age 100 or past. So that's one reason why we like the guaranteed income annuities setting up a personal pension, because a pension is going to pay as long as you live. And that's what that income annuity will do. It's guaranteed a lifetime paycheck. Remember, it's income, not assets. Write that down. It's income, not assets. So 4% rule. Cale when we spoke about sequence of returns earlier, if you're taking out 4%, but your account value is down 20 to 25% this year, what does that do to your account? It hurts. It's not good, is it? So again, give us a call.

Randy Sams:
8669907664. Go to your American retirement. Set up that free consultation. Pay off your home is something that a lot of people look at. A mortgage payment will consume a lot of your monthly Social Security benefits. One of the things that we did, Cale, I had a client here just recently that I was working with in Texas, and she basically, as a matter of fact, she retired the end of June and we set her up with an annuity. And one of the things that she was looking at is, is that her mortgage, she has another ten years left on her mortgage. So we put together a plan and created an indexed annuity where she was able to take out free withdrawals on a monthly basis to cover that retirement for the next ten years. And then guess what happens after ten years? She basically gives herself, what, a raise because she no longer has to pay that mortgage. All right. So something that you think about, man, try to reduce your debt as you possibly can. Give us a call where we're going to talk here during this segment. Some of the things that Carl and I can do for you during what we do during the free consultation. But those are some of the solutions that I came up with. You got anything else to add?

Kale Simpson:
No, Randi, I think you you went over a lot of good items for our listeners to consider. Some are going to be more important and more prevalent than others for for different people listening. But those all make great financial sense in my mind, Randi. All three of them. And again, to remind our listeners, when you work with us, we're we're here. We help people like you every single day. The most important thing is we just we need to understand your current situation. Like Randy said, you know, you might have a current portfolio with with another broker or you might be taking out more than than what you should be taking out and really bringing sequence of returns risk into play. So these are things that we're going to talk about, but it all starts with understanding your situation and your retirement. What are you trying to do? What are you trying to accomplish? And then let us help build a custom financial blueprint. So that way you know what we advise and what we think might make financial sense going forward in retirement, Randi.

Randy Sams:
Retirement is more about income than building one big nest egg. When you're working and you're in the accumulation phase, everybody has this objective. I want to have 500,000 of my 41k or I want to have 250,000 a month for one K or $1,000,000. And that's what I want to retire on. Well, folks, assets can be lost. It's all about. Or it's when you are in retirement, whether it be Social Security, whether it be a pension or whether it be a lifetime income annuity. Let us have a consultation with you. People. Make the mistake of thinking they have more save for retirement than they actually do. Folks, you know what the market has done since January 1st, 2022. The market's not down or up. It's down year to date, what, 22, 24, 25%? If we enter a recession along with the bear market, what's that's going to do to folks retirement, especially if you're taking money out? Again, we spoke about sequence of returns, so don't forget that for one K's and IRAs are tax deferred accounts, you are going to owe the government taxes, whether you like it or not, on those distributions. So when you start taking money out of your 401. K or your IRA, that money is taxable as ordinary income. And then if you don't want to take money out at age 72, right now is the age they are going to tell you when you have to take that money out in the form of required minimum distributions. So remember, folks, it's about income, not assets. Hey, I'll add something to my to my thoughts there, please.

Kale Simpson:
No, that is absolutely flying at 30,000 feet, Randi. You hit the nail on the head. There is not one specific way that makes total sense for any one person or any one family to retire. What we do need to do is make sure that we are making smart financial decisions when it comes to retirement and understanding that people can make mistakes. And if you make a mistake, Randi, you talked about it last episode, the five years before you retire and the five years after you retire, the retirement red zone. It's a very critical time in your retirement. So it's crucial, absolutely crucial that our listeners understand that having a proper plan, having a game plan, looking at the playbook and understanding what play we're going to run is the proper plan and can reduce or mitigate any unnecessary risk like we've talked about before, while adding that guarantee of having that lifetime stream of income like that pension that Sam talked about earlier during our episode of Right or Wrong. So, Randi, that's the only thing that I would leave as a bullet point for our listeners is make sure that you get with somebody if we're able to earn your business, great. Amen. That's wonderful. We'll do our absolute best to help you understand the retirement landscape, what we can and we can't do at SMG Financial. But you'll at least leave knowing more than than you did when you got here. So again, going right back to the title of the show, the more you learn, the more you earn from Warren Buffett. And hopefully we'll help you learn more than what you knew before you got in contact with us at your American retirement.

Randy Sams:
We're focused on addressing the major financial issues facing retirees pre-retirees in America today by helping people understand and prepare for a secure retirement, not a risk of retirement. The more you learn, the more you earn. So, folks, one of the things what's it like working with Kayla or myself? It starts with understanding what you want to do in retirement. So first thing that Kayla and I have to do is what we have to ask a few questions, but then we will be quiet and we'll listen. We want to understand what your objectives are, what your goals are, who you're with. The important thing then we'd like to, from that point in time put together some asset statements, Social Security income statements, retirement statements, build a custom financial plan to fund those expenses through a combination of guaranteed income strategies or smart health plan investments and more. And yes, asset health plan. As we get older, we're going to enter the we go into the go go years and we go into the slow go years. We want to be able to make sure that you understand Medicare what Medicare supplement is, what Medicare Advantage is, prescription drug plans.

Randy Sams:
So we're going to go over Medicare with you. We're going to go over Social Security planning. We want to compare your current situation to what's possible. If you work with us and if you haven't heard from your advisor lately, call talk to Carl or myself and get a second opinion. 8669907664. Your American retirement set up that free consultation. We've got it set up, folks. We want to provide that comprehensive consultation at no cost to our listeners, no obligation. And we're only going to work with us if that's what is best for you. So let us analyze your current financial situation. Let us find out what fees you're talking about, what fees you're currently paying, and then let us look at your Medicare situation and your Social Security situation. So here at your American retirement, again, we're here to help you. We want to listen to what you've got, what your objectives are. But we appreciate you joining today's show. Again, Randy Sams, Kayla Simpson, you're American Retirement 101.1 FM. The answer, give us a call. 8669907664. Set up that free consultation.

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 your American retirement today that's your American retirement dot com not affiliated with the United States government. Randy Sams and Kael Simpson do not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specifics such. 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 may 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. Amara Life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or of the results obtained from the use of this information.

Producer:
Not affiliated with the United States government. The agent 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. A married life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or of the results obtained from the use of this information. Where's the best place to hang your hat when you retire? I Matt McClure with a retirement radio network powered by a marriage life, whether retirement is just around the corner or several years away. Time is ticking on planning not only your finances for your later years, but where you want to live out your post-retirement life. Personal Finance Website Wallethub recently released its list of Best States to retire in 2022.

Jill Gonzalez:
Florida, unsurprisingly, ranked number one, followed by Virginia, Colorado, Delaware and Minnesota.

Producer:
While at job analyst Joe Gonzales, the.

Jill Gonzalez:
Top ten continues with North Dakota, Montana, Utah, Arizona and New Hampshire.

Producer:
So what makes a state one of the best to retire in?

Jill Gonzalez:
The study was based on 47 metrics, including tax friendliness, the elderly, population, golf courses per capita and shoreline mileage.

Producer:
As for Florida, which landed the top spot this year.

Jill Gonzalez:
Florida excelled in tax friendliness, fellow retirees and things to do, but could use improvement with home health aides per capita.

Producer:
Even though the Sunshine State is number one overall, if finances are your primary concern, you might want to consider a move to Mississippi. It ranked as the state with the lowest overall cost of living. As for tax friendliness, Alaska jumps to the top of the list. But what if you want some culture in your retirement years? New York ranks as the number one state when it comes to the number of museums per capita. The trade off there is naturally the Empire State is one of the most expensive in the country. So where do you want to spend most of your time in retirement, and what factors are most important to you when considering a potential move? Those are key questions to consider as you plan for the future. With the Retirement Radio Network Powered by a Life, I'm Matt McClure.

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