YAR Full Show 8.10.mp3: Audio automatically transcribed by Sonix

YAR Full Show 8.10.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 Kyle 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 Cole Simpson.

Randy Sams:
Hey, good afternoon, Central Arkansas, and welcome to your American Retirement Radio show. I am Randy Sams. I'm here with my esteemed co-host, Mr. Kyle Simpson. Folks, we welcome you to the show. We've got a great show playing today. We're going to talk about smart retirement plan and hopefully some of you even have a retirement plan. It's either going to be the now retirement plan or hopefully after you get through listening to the show today, you'll understand whyKale and I are in this business. So we want to help you get to a smart retirement plan. Again, go to our website, folks. Your American retirement, sign up for a free consultation or go to 8669907664. Our toll free number. Leave us a message. We'd love to get back in contact with you. Be able to set up a consultation. Hey, we have podcasts, Apple, YouTube, Spotify. Please subscribe to the show. Give us a thumbs up. Listen to past episodes. Mr. Cal Simpson has just been crazy good giving financial information to the folks here in central Arkansas. We're talking about annuities, we're talking about retirement plans. We're talking about what we do at SMG Financial, what we can do to help you set up your American retirement. Folks, listen here at your American retirement, we're focused on addressing the major financial issues facing retirees and pre-retirees in America today by helping people understand and prepare for a secure retirement, not a risky retirement. So, folks, we want you to listen to today's show because we want to get you prepared for a smart retirement and put together a smart retirement plan.

Randy Sams:
Hey, listen, a little call to Action for Retirement Plan consultation is available with myself, Mr.Kale Simpson. Listen to some of the things that what we could do for you. We will provide a comprehensive consultation at no cost to our listeners. All of those who are listening to us this Saturday afternoon, there is no obligation. We don't charge any fees. You only work with us if it's best for you and any products that we might present to you. Again, it's your decision. We take our responsibility to put you in the best position very seriously. We will help you analyze your current financial situation. We will closely examine any annuities that you may currently have. I know Kale is doin couple as we speak. I've got a couple that I spoke with this week that that we're we're looking at what they currently have to see if we might be able to put them in a better situation. If not now, here in the near future, we will discover exactly how much you were paying in fees in your current plan. If you want to cut unnecessary cost in your IRA, your 401. K or any retirement savings accounts, we can also help you with Social Security planning and Medicare. Hey, all you guys out there on Medicare, you have a medicare supplement plan. You have a medicare Advantage plan beginning in October. We have the annual enrollment period from October, I think as October 15th to December the seventh.

Randy Sams:
So we'd love to talk to you about your current Medicare supplement plan or your Medicare Advantage plan coming up, because the annual enrollment period will give us a chance to change guaranteed issue. If that's something that we can consider and meet with you guys, we will compare your current situation to what's possible if you choose to work with us, give you lots of options. And let me ask you a question. How long has it been since you've heard from your advisor? Unfortunately, if you haven't heard from your advisor lately, give us a call. We'd love to talk to you again. There's no obligation, Carolyn. I've been in the business for over 50 years combined. I've been the majority of that. ButKale is fantastic. He's a little bit younger than I, so he can travel a little bit farther than I do. But folks, we travel Arkansas, Tennessee, Mississippi, Louisiana, Texas, Oklahoma. We haven't been to Canada yet, but by gosh, if someone calls in, we're going to be we'll go to Canada and meet with you and sit down and talk about your plan. So anyway, folks, smart retirement plan is what our show is going to be about today. So I'm going to be quiet. I appreciate you listening. Appreciate you joining. And I'm going to turn it over to Kyle. He's going to give us some market updates. Kyle, take it over, please.

Kale Simpson:
Randy, thank you so much. Hello, everyone. Welcome again to your American Retirement on Retirement Radio Network. Your you are listening to your American retirement. Welcome back to the broadcast. It's hard to believe it's already been a week, Randy, since we did our last broadcast. Here's the deal, guys. We're getting we're getting a ton of feedback. We have clients that are requesting the annuity 360 book from us. It's a it's a valuable piece of information that we'll be glad to send your way. We also have client info kits, these folders that we will put third party articles along with some good literature for you to put your hands on and to read over that will help you understand. The retirement landscape, what's available. We're a brokerage firm. We're a national brokerage firm. So we don't do just one thing. We have relationships with multiple companies out there, some of the biggest companies on the planet. So we have a wide we have a wide net that we can cast and help formulate a custom retirement plan. Like Randy spoke just a moment about on on what we do and how we do our retirement plan consultations and our annuity health checks. But, you know, Randy, I appreciate you bringing me back in. I always like to go over a market update, as you guys know. So what's going on this past week in the market? Well, let's talk about it. Earnings season is is coming to an end. Thank goodness we have had some disappointing earnings and we have had some great earnings. Bank earnings were mixed. Some of them were great oil and energy companies outperformed.

Kale Simpson:
But we also saw some some retail stores, Walmart, Target, Home Depot and Caterpillar. I mean, absolutely. Get get get hurt because of earnings. And it really wasn't earnings for our listeners guys. It's more forward guidance. So we're just looking at a slowing economy. That's what we're doing. As far as gas prices. I know Randy and I, we always go over natural gas prices. You guys know gas prices are down six weeks in a row. That's great. Does it stay here? We're not sure. Right now, oil is at $91 a barrel. Opec was kind enough last week to increase oil production by 100,000 barrels a week, which I'm being facetious when I say that, because 100,000 barrels a week is nothing. I think we were asking for 2 million barrels and they agreed to 100,000. But one thing that is on the mind of of everyone out there in the investment committee is is bonds. We are still in an inverted yield curve in an inflationary market with rising interest rates and a Fed that is that is tightening. So right now, the short end of the curve on your two's or yielding 3.22% as of earlier this past week and the ten year treasuries around to 2.77 ish. So what that means for our listeners guys is the the twos should probably pay less than the tens right Randy. Or yield that that would make sense. Right. If I give you money for two years, I should expect less. I should expect less of a return than if I gave you money for ten years. Right.

Randy Sams:
I agree.

Kale Simpson:
So that is not the case. So the inverted yield curve, really, what it what it's just signaling is a lot of uncertainty. We've had up days in the market. We've had three straight weeks of gains in the market. This past week, we took a little bit of a breather, but still sitting around 4000, 100, 4000 in the S&P 500. So, you know, we'll see how the market reacts. I think, you know, we chop around a little bit, Randi, as we digest more data, inflationary data still around 9 to 10%. And I mean, that's just still too high. So we're going to have a Fed that's going to have to continue to raise interest rates, and that's just the name of the game for the time being. So, guys, these are all things that we will talk to you about. Do me a favor. Go to the website. I don't know how many clients I've talked to Randy over the past two weeks that that went to the website your American retirement dot com. If you don't want to give us a call, you're not going to be on the air. But if you don't want to call, go to the website. All of our previous broadcasts, the majority of the broadcasts are all right there on the website. You can listen to them.

Kale Simpson:
They're not long. They're about 30 minutes long. A lot of great information in previous broadcasts. But listen listen to the broadcast. If you have a question, there's a spot where you can input some information and we'll reach out to you, hopefully answer some questions. But guys are just a lot of good stuff that's out there and that's available. And Randy will talk about it later in the broadcast, but. You know, when someone reaches out and I've had clients that reach out to me and they say, Hey, I checked out the website. It's really great. It really is. You guys have a lot of valuable information in your in your podcasts and in your broadcasts. Thank you very much. How do I get one of those books, though? All right. I'll send you one of those books. But anyway, I mean, that's that's what we're that's what we're doing, Randi. That's pretty much a market recap. Before we. Before we go any further, I want to bring out another quote by Mr. Buffett. That is the quote of. That's the quote of the week. So I'm going to I'm going to let I'm going to read this quote to you and I'm going to get your your $0.02 real fast on what Mr. Buffett said. Okay, Randy.

Randy Sams:
Sounds good, Gail. Jimmy Buffett. We're talking about Jimmy Buffett.

Kale Simpson:
Nope, not Jimmy Buffett. This is this is probably the most prolific, well known investor of of our lifetime of of multiple generations. I think he's like almost 90 years old. But this is what Warren Buffett says. If you don't find a way to make money while you sleep, you will work until you die. Pretty powerful.

Randy Sams:
Doesn't it? It's. Where are you having your money come from? What's it doing for you? Is your money working for you or is it not? Or is it asleep? Unfortunately, we work with a lot of folks, Cale, that they don't really they haven't thought down the road long enough. They haven't really put two and two together. So. But folks, I hope that's a good market update for you. Listen, Cale, I also saw something this morning where it looks like they say that oil prices could go like $400 a barrel depending on what OPEC does. It's just crazy what that would do to gas. But folks, we're going to come back. We're going to leave the show just for a second, let you guys get some important information from a local broadcaster, from local sponsor, folks, your American retirement. Randy Sam's Mr. Kyle Simpson. 8669907664. Give us a call. Set up a consultation 101.1 FM. The answer will be right now, nibbling on sponge.

Producer:
Cake. Watching the sun.

Producer:
All of this, too, is covered with.

Kale Simpson:
Strumming my sick.

Producer:
Miss part of today's show. Your American retirement is available wherever you listen to podcasts and online at your American retirement dot com.

Kale Simpson:
Hey, everybody, welcome back to 101.1 FM. The answer. You are listening to your American retirement on the Retirement Radio Network. This is Carole Simpson alongside Randy Sams. Appreciate you guys joining us today. We just went over our opening segment in the broadcast. Some good information. We're going to move right along into our series this week on the Smart Retirement Plan. We spoke about Warren Buffett. He is one of the smartest men on the planet. He's 91 years old, still making steel, still making profitable investments. And his partner in Berkshire Hathaway, Charlie Munger, is 98 but still is sharp as a tack. So anyway, we talked about Warren Buffett and we had some some pretty cool statistics sent over to us from our producer, Sam. So Sam, appreciate you send that information over. But hey, guys, real fast. When you get a moment, go to the website again. Go to your American retirement. You can find us on YouTube. You can find us on social media. Hit that like button, subscribe to the podcast and share it with your friends and family. Like Randy said at the top of the broadcast. We don't only work in Arkansas. Matter of fact, I plan on flying out to North Carolina and going and seeing some clients out in North Carolina sooner than later.

Kale Simpson:
So share it with your friends and family. And if we can help them, then we will certainly do our best to help your friends and family. But hey, real quick, under the Smart Retirement Plan series outline, Randy, I have I have a couple of stats that I want to run past you. I want to get your I want to get your feedback. And then I've also got a question that I want to ask you, because I think you probably have a pretty good idea of what I'm going to be, what I'm fishing for here, and I want to see what information you send to me. So there is a study, Randy, from Fidelity Investments, 2022 State of Retirement Planning Study. This is what it says. One in four Americans are less or less confident right now about retirement now than they were before the events of the last two years. Personally, I would think it'd be more than that. I mean, it's 25%. I think that's probably a little on the low side saying it's probably at least 50, 60, 70% are probably less confident. Yes, but Randy, 71% of Americans are very concerned about the impact of inflation on retirement. We've talked about that for, I think, four or five weeks in a row. Correct.

Randy Sams:
Every show. It's something.

Kale Simpson:
That we're going to.

Randy Sams:
Talk about. Yes, sir.

Kale Simpson:
Inflation is in the newspapers. It's it's the headlines of every news program. And, I mean, it's it's front and center. And that's, you know, economically, financially. That's what we're dealing with in our country right now. But another one, Randy, 31%. Of Americans don't know how to make sure their retirement savings keep up with inflation. As they get older and they retire. Okay. So that's a lot of people, 31%. So here's another. Here's another. I'll expound on that real fast. So this is from Angie Chin. She's a research economist at the Center for Retirement Research at Boston College. She says approximately one half, 50%, Randi, of Americans are at risk of not being able to maintain their pre-retirement standard of living after they stop working. That's a problem, my friend.

Randy Sams:
It's a big problem, Cale. Like you said. What are we talking about? That red zone five year prior to retirement? Five year into retirement. That's that ten year period, that red zone, we call it. It's crazy.

Kale Simpson:
Red zone.

Randy Sams:
Yes, sir.

Kale Simpson:
So let me ask you a question, Randy, and I know that you've done some research on this, and I kind of want to hear what you have to say. So we used to hear it all the time. And if you ask somebody who they're working with, they'll give you an answer. But let me ask you a question, because I've done a little bit of research on this, too. So if I were to say, Randy Sams, you've been in the business for a long time, not as long as Warren Buffett or Charlie Munger. But if I were to ask you where or where are the majority of people getting their financial advice and education from? Where do you think they're getting the majority of that information from Randy?

Randy Sams:
The local coffee shop.

Kale Simpson:
Probably so.

Randy Sams:
Their friends that they go, you know, they meet on Thursday mornings or Saturday mornings or whenever it was, and they have their discussions about how to solve all the world's problems. And then somebody asked a question about this and that. And, you know, Uncle Bob starts giving financial information and he's never sold a financial product in his life. But, you know, Uncle Bob, he seems to be a pretty smart guy. So. But folk folks, here's what we have to look at. Well, Carol and I want to do is we want to set you up to have a smart retirement plan. Do you have a plan? Let me ask you a question. What age do you want to retire? Cale? You can. You can respond to this. How many people do you meet with or you have conversations with today that basically state that their target retirement age is 55?

Kale Simpson:
Not many.

Randy Sams:
How about 60?

Kale Simpson:
A few more.

Randy Sams:
How about 65?

Kale Simpson:
That's a that's a pretty good number. People have that number earmarked for whatever reason.

Randy Sams:
Well, 65 years to be when Social Security would kick in for their full or full retirement benefit. But now, unfortunately, depending on what age you are, it's could be 66, could be 66 and one half, or it could be 67. And and who knows what it may be for for all you younger folks out there, it could go to 768. Who knows what it's going to be. But the folks. What what? My point is this. Is that clear? And I have discussions with people that in the past folks used to have a target retirement age and and there used to be folks that would say, I want to retire at age 55 or I want to retire at 60 while women retire at 65. Well, folks, I'm not meeting with a lot of folks that 60 or 65 is coming into into the conversation. Most folks that we're dealing with right now. I mean, I just had a conversation with this week a gentleman who just turned 60. His wife will soon be 59. And they both realized that just because of the inflation and the way they feel about the current situation, kale, they're they're not planning on retiring until maybe 68 at the soonest. So Kayla and I are working with folks every day that the you know, the retirement age is getting farther out. And because of the lack of planning, when should you start planning? Right now. Today. Give us a call. 8669907664. Set up a consultation with myself, Randy Sams or Mr. Kale Simpson. But Kyle, getting back to the financial education, the facts that I have, 26% of the people are getting their financial education from high school classes. So let me ask you a question. How much information do you do you recall right now from your high school classes?

Kale Simpson:
Not much.

Randy Sams:
So it's off. 26% of the people are getting their financial information from high school classes. And you and I are talking to people in their fifties. How much knowledge do you think they've retained from high school?

Kale Simpson:
Yeah, very little, Randy. I mean, it's it's silly to think that that's where you're getting sound financial advice from from high school classes when you're 50 or 60 years old, in my opinion.

Randy Sams:
Yeah, well, don't don't get me wrong. I believe that there should be financial classes to teach folks in high school and even college own basically how to prepare yourself for the workforce, how to prepare yourself. You're going to have bills to pay. You can't buy every Corvette or every Ferrari that rolls off the showroom floor. You've got to be able to prepare for it. So yeah, I believe very strongly that we should have financial, I guess, knowledgeable classes, teachers that can that can educate folks. But to think that 26% are coming from high school classes. Hey, Kyle, another one. How about parents and family? How much financial information have you received from your family?

Kale Simpson:
I've received some, but I would I would I would gamble and say that a pretty good percentage of people out there getting advice from friends and family. Randy I really do. I don't know what percentage it is, but I would gamble and say it's a pretty good percentage.

Randy Sams:
Well, 22% right now say they're getting their financial education from parents and family. So basically what that is, is that they're looking at what mom and dad, brother and sister, aunts, uncles, cousins, nephews, nieces, whatever, you know, that they might have and they may have a conversation with them to where know hey, tell me what you did. How did you get to this position? What how did you get to this particular product or this particular decision? So, yeah, 22% from parents and family, another 21% are coming from college classes. And like I said earlier, Kale, it's been a while since I've been to college. What I'm doing right now is not anything close to what I went to actual for what I thought I wanted to be when I went to college. I didn't want to be an astronaut and I didn't want to be in the insurance sales business back in the eighties. But look at us now. I've been doing it for 38 years myself, so anyway, but 21% from college classes. So I am a big believer in educating folks, getting them a little bit more knowledgeable as to what they're about to face when they step away from those college classes. Another one, Cale, this is a big one. Internet, social media, websites, 18% of the people today are getting their education, financial education from social media and websites. So what is it they say about the Internet? If it's on the Internet, it's got to be true, correct?

Kale Simpson:
That's what I told my kids before I told them that was false.

Randy Sams:
Exactly. So and now listen to this. Only 7% say they are being educated or getting their financial education from a financial advisor. That's sad, Gail.

Kale Simpson:
It is. Randi, let me let me jump in and piggyback on something that you just said. 77% from an advisor, probably they're afraid to ask. They think they may be asking a silly question. That's untrue. There are no silly questions. You know, I have I have a finance degree and I've retained a lot of that information. Plus, I've received additional designations like you have over the years, because education is something that you continue to that you continue to do to get better. But hopefully, Randy, that 18% from social media and websites, hopefully they're going to your American retirement and getting that information or asking for information from us on social media. Because here's the other deal, too, Randy. The other 7% that say they they work with an advisor, most advisors charge a fee. And so a lot of clients don't want to pay a fee for advice. Well, guess what you said at the top of the broadcast. We will help you for no cost or obligation. We want you to understand what you can and cannot expect in the retirement marketplace. So please go to the website, your American retirement, put in your information and let us send you some stuff out and help you on a better path to a safe and secure retirement. Guys, we'll be right back. On one on 1.1 FM, the answer.

Producer:
They say you don't know what you don't know. But a growing number of states are trying to fix that when it comes to finances. I'm Matt McClure with the Retirement Radio Network. Powered by a married life in high school, students are often required to take advanced math courses like algebra and trigonometry. But for years, the basics of budgeting, bank accounts and savings have been neglected in the classroom. But that seems to be quickly changing. 21 states now require at least some form of financial education before students graduate high school. One of those states is Nevada Governor Steve Sisolak recently told CNBC a great percentage.

Kale Simpson:
I think 50 some odd percent of Americans can't cover 1000 emergency costs if it comes.

Randy Sams:
Up without.

Kale Simpson:
Borrowing.

Randy Sams:
The money.

Kale Simpson:
So it tells us that we need to invest more. We have invested $2.5 Million from the state into these programs and to make sure that it gets out, we address access and equity so that everybody gets this education. It's not just reserved for the upper class.

Producer:
Mississippi Governor Tate Reeves also told CNBC he knows firsthand how valuable a financial education can be. He graduated with a degree in economics and worked in the financial arena before running for office, which is one.

Governor Tate Reeves:
Of the reasons that I'm so passionate about trying to encourage my fellow Mississippians and really my fellow Americans to to to make sure that financial. Illiteracy is is available to as many people as possible, because I really do think it can help Americans have a better life.

Producer:
In New Jersey, Governor Phil Murphy says programs there start as early as middle school.

Kale Simpson:
There's a temptation that comes with a lot of different things that you all of a sudden think you can afford and you don't realize the consequences on the back end, whether it's physical items, whether it's meme stocks or whatever it might be, it's of getting kids at the earliest ages possible, we think is critical.

Producer:
How well are the programs working? Well, it could be too early to tell. Money rates found mixed results in a recent survey, but its authors note that financial education itself is not a quick fix. So with more time, results could improve. So how educated are you when it comes to your personal finances and planning for retirement, and are you going to pass down that knowledge to future generations? Those are key questions to consider as our financial lives become more complicated with the retirement radio network powered by a married life. I'm Matt McClure. Remember all of Randy andKale's listeners receive a free financial consultation just for listening to the show. Visit your American retirement to learn more and schedule an appointment. Thanks for listening to your American retirement and subscribing wherever you listen to podcasts.

Randy Sams:
Hey, welcome back. Your American retirement with Randy Samson, my co-host, Mr.Kale Simpson, 101 point 1fm the answer, folks. We're going to welcome back to the show. If you remember the last last segment we were talking about where people are getting their financial education. Folks, we're we're in this business to help you retire, to help you plan for retirement. So I'm going to ask you once again the question, what age do you want to retire? Is it 55? Is it 60? Is it 65? Is it 68? Is it 70? Some folks like to work. And there's nothing wrong with that. But you have to have a plan in place. So are you ready? Do you have a plan? Do you have a strategy? So, folks, retirement looks different for everyone, whether you want to travel or whether you want to spend time with family. Whether you want to start a new business, you're going to need cash flow. Let me ask you this question very quickly. Have you ever spoken to someone who is in retirement or who someone is about to retire? That does not need income. Have you met that person yet?

Kale Simpson:
No.

Randy Sams:
Everybody needs cash flow, correct?

Kale Simpson:
Yes, sir.

Randy Sams:
Approximately half of Americans are at risk of not being able to maintain their pre-retirement standard of living after they stop working. Just another. Reason why we work with folks to set you up with guaranteed lifetime. Income folks. It all starts with understanding what you want to do in retirement. It's not my objective. It's not Cale's objectives that were out to try to satisfy. It's what you want to. To do in retirement, remember? There's two types of income. What you need. And what you want. Right. Once called a paycheck. The other is called a play chat. We want to sit down with you and we want to work with you and put that plan together. So what are your goals? Who are you with? Let us help you provide stability for you and your family now. Folks, I'm working with clients right now. I've got. I've got two clients. Both of them are in Tennessee right now. And their main objective is they're getting ready to retire in anywhere from 5 to 8 years. But their goal is when they retire, they want to have guaranteed lifetime income for both the husband and the wife. That's very important to both of the couples that I've had conversations with this week. The husband wants to have the peace of mind and the spouse wants to have the peace of mind knowing that if something were to happen to the husband and and Gayle, you and I both know the statistics that females, for some reason, they tend to outlive us.

Randy Sams:
Being males, correct? Yes, sir. Okay. But so what they're wanting to do is make sure that their retirement income is guaranteed for both the husband and the spouse. So basically, we're going to be able to take their finances, their for one case, their IRAs, and set them up with what we consider a personal pension plan, which is an annuity, a lifetime income annuity. So, folks, let us help you provide stability for you and your family. We're going to organize a custom financial plan to fund your goals, fund your expenses, your paychecks and your paychecks. Through a combination of guaranteed income strategies, Social Security maximization. Talk about your health care coverage. Lots to talk about. So what are you wanting to do during your retirement years? Smart vision. Who are you with? Who are you taking care of? What are your goals? How do you plan to fund them? Do you want to retire or do you want to relaunch? Which one is it? When you retire, your income will not be the same as it was when you were working. You have to be ready for a reduced income flow by preparing before you retire. What you want to add to that?

Kale Simpson:
Randy, you hit a lot of good points. Speaking of smart vision and some of the things that that you spoke about a moment ago, really from a day to day basis, the clients that we're talking to, we have to be proactive. I'll give you a real quick example, Randy. When you were talking about people retiring later than initially than initially planned ten years ago, it's hard to believe. But ten years ago, I helped my father in law with planning for retirement to where he had a certain amount of funds go into a guaranteed a guaranteed annuity that will grow at X amount of percent until he decided to turn that on. So his his retirement goal was age 66. Randy, we did this when he was 60 at age 66. He turned on his income stream. He now receives money every single month, along with my mother in law every single month for as long as they both live. But guess what? My father in law is 70. He's not 66. And he's still working. Not because he has to necessarily, but. It's it's more income and he can continue to have that additional source of revenue come into the household so they can go do things like take more cruises and and things like that.

Kale Simpson:
So when we're formulating plans. We like. I tell clients all the time, Randy, and you probably do the same thing. We can formulate a plan and we can put it on paper and we can implement those plans. But over time, things change, right? So we have to as as financial professionals, we have to be able to adapt. So I also have a client right now. I'm talking to him. And, you know, it's it's one of those deals where we have a we have a five year time horizon, but that may change. It may be three years. It may be five years. It may be seven years. But eventually he wants to retire. And when he wants to retire, he wants to have that guarantee of having X amount of dollars come in guaranteed. I'll also give you one quick example, Randy, because I didn't get a chance to talk to you about this, but I have another client that I talked to last week, and you were talking about formulating a plan and making sure that we have retirement income that's going to to fit those those voids, if you will. So I have another client in. And he told me, he said, look, I have you know, Randy, you said paychecks and play checks.

Kale Simpson:
He said, I have a I have a void. I have a gap that I need to fill on a monthly basis. And it's about 3000. How do I do that? That's what he said. How do I do that? So you already know what what I said and what we're doing. I said, Well, we need to determine what you have, what what options are available and what might make the most sense for you. So then we go back and we go to the drawing board, correct? We start we start working on what's available. How do we fill that 3000 monthly void? And so currently that's what we're doing to try to help that gentleman out. But Randy, I mean, that's smart vision. If we can find a way to do that, then guess what? He gets to enjoy retirement. If he doesn't have $3,000 and he waits and procrastinates or say market fluctuations with the market do the first six months of the year. Nasdaq was down 30% from from January to the end of June. Everyone has money in in big tech. Everybody did. Everybody does. The S&P 500 was down over 20%. So if you've got $1,000,000 in your 401. K and it turns into 750,000, that's a hard pill to swallow. Agreed.

Randy Sams:
Yeah, but it's only paper. You know what they say?

Kale Simpson:
Yeah. Unless it's my paper or your paper or their paper. Right. Yeah. Exactly. So we try to take that unnecessary risk out of the equation. You do need to have different baskets of money. You know, what we do is not going to be for 100% of your nest egg. It doesn't make any sense. But we like to properly plan and have that smart vision, like you said, and have those guarantees that way that if something did happen, if you wanted to retire a little earlier, if you were able to do it, then amen. That's something that we can that we can plan for. And if that equation if we're able to prepare that equation, then that's something that we can do. At least you'll know what you can and you can't do, if that makes any sense. Randy.

Randy Sams:
Strategy tailed. It's a strategy.

Kale Simpson:
It is a strategy. So when? So when we're doing, like, an inspection. And I had a client, he's a current client of mine. He had sent over an email and said, hey, I have an annuity. That is, I'm getting my annual statement at the end of the month. I want to know if there's anything that's that may be better. Well, I looked at it. Check this out, Randy. So this annuity, we actually we do business with this company. But this has been a long time ago. This is almost seven years ago. Has the annuity marketplace evolved over the past 7 to 10 years?

Randy Sams:
No, tremendously. Yes, sir.

Kale Simpson:
Yes, absolutely. So in looking at this, the S&P 500 annual point to point and listen for for our listeners, this may sound like Greek to you. If I say S&P annual point to point. Basically what that means is the S&P 500 right now, if you were to have this account right now, the S&P 500 is at, say, 4100. So you do 4100. You fast forward 12 months from now, if the S&P 500 is higher, then you earn interest. If the S&P 500 is lower, then you don't earn interest, but you don't lose any money. Correct?

Randy Sams:
Zero is your hero 000.

Kale Simpson:
But here's the caveat to this one. There was a cap. And so for our listeners guys, we don't like caps. Caps for Randy Sams and myself, caps are cuss words. We don't like caps. Why? Why would you want a cap if the S&P 500 goes up 10%, but you have a 1.5% cap, you make 1.5. Where's the rest of that money go? To the company. Is that fair? No, that's not fair. So in evaluating and doing this annuity health check for this client, Randy, I mean, that's that's what it is. For him. When we talked about it, he said, oh, my goodness, like we certainly need to look at this. And I said, Yep, your anniversary is on on the 22nd. We will we will look and find out what what is available. But but to have something that's capped at 1.5%, it's silly. There's many things that we can do. But guys, that is just one thing that we hear from on our clients. But if you don't go to the website, your American retirement or you do not give us a call, 8669907664. You might not know what you have. You might not know that you have a one and a half percent cap on that fund. Correct, Randy?

Randy Sams:
And you're paying a 1% fee.

Kale Simpson:
And you're paying a 1% fee. So, guys, if we can help eliminate fees, if we can do an annuity health checkup, if we can determine that something might be better, that's out in the open market to help you get back on track towards a healthy and secure retirement. That's what Randy Sams Simpson and SMG Financial are here to do. So as we're going to take a break, we'll be right back. Your American retirement dot com one on 1.1 FM the answer. We'll be right back. I used to be a Rolling Stone.

Governor Tate Reeves:
You know, if a course.

Producer:
Big changes could be coming and they may affect your retirement. I'm Matt McClure with the Retirement Radio Network powered by Emera Life. Increases in costs, market volatility and fears of a possible recession all have people who are close to retirement worried about the future. Some people who were considering early retirement are staying in the workforce, while others who had already called it quits are going back to work. Marketwatch recently published a list of eight big things retirees and pre-retirees should keep an eye on. Some of them are pretty obvious, like number one inflation, as the prices of goods and services continue to go up at rates not seen in four decades, just paying for everyday things could eat through your retirement savings more quickly than you thought. Another concern, Social Security. The trust fund is set to be exhausted by the year 2034. Potential changes to save the program could have a big impact on your retirement years. Two items on the list have to do with savings how much money to set aside for retirement and how to address a growing gap in that amount versus what most of us have actually saved. Yahoo! Finance contributor Vera Gibbons recently reported that the savings gap has been exacerbated by the pandemic, with a lot of folks dipping into their retirement accounts just to get by.

Speaker6:
We are in an inflationary environment here, and some of the experts I spoke to said given the fact that costs are going up for just about everything, they expect more people to actually tap into their retirement accounts or contribute less this year. Also, keep in mind that people are still quitting their jobs at a record rate and that group may also be tapping into their retirement accounts to to cover their costs.

Producer:
Health care spending and drug prices are two more things on the MarketWatch list of retiree concerns and they could be impacted by the last two items on the list diabetes which continues to affect more Americans each year and uses up a good portion of the nation's health care resources and exercise, which could actually bring costs down by helping you stay healthier longer. So which of these items is your biggest cause for concern heading into retirement? That's a key question to consider as economic uncertainty continues to cause headaches for us all with the Retirement Radio Network powered by Merrill Life. I'm Matt McClure.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it all could affect your future in retirement? Then tune in to your American retirement to learn how you can protect and grow your hard earned money. Your American retirement. Every Saturday at 1:00 pm, right here on 101.1 FM. The answer Protect your hard earned money today and schedule a free, no obligation consultation now at your American retirement.

Randy Sams:
Hey, welcome back to your American retirement with randy sams and my co-host, Mr. Kyle Simpson. 101 point 1fm the answer. We hope you're having a fantastic Saturday afternoon. We want to let you guys know. We appreciate you listening. Please go to our podcast. Go to where your favorite podcast might be, Apple and YouTube, Spotify. Give us a thumbs up. Listen to some of our past recordings. Folks, we're excited to have you leave us a message. We'll send you the annuity 360 book. Call us 8669907664. Set up a consultation, folks. Today's show has been about smart, smart retirement plan planning. We hope you have a plan. We'd love to meet with you and go over your plan. Kind of give you a second opinion, give you the ups and give you the downs, give you some outside information looking outside of what you're currently might be working with or who you might be working with. And by the way, if you haven't talked to your advisor in a long time, give us a call again. 8669907664. We'd love to have a conversation with, but hey,Kale, we've been speaking today. We've had some great information about retirement planning. We've met some great statistics about where most people are getting their financial education. Unfortunately, it's not coming from what I consider to be the right sources. It should be coming from folks like yourself and myself, folks that have been doing this for myself for 38 years, for you, probably, what, 15, 16, 17 years in the business, folks, we know what products are available.

Randy Sams:
We've given you example upon example of folks that we've worked with on how we've been able to take them and get them educated to where they're going to understand and get them prepared for a secure retirement, not a risk of retirement. So, folks, we want you to sit down with your spouse. We want you to think about your goals, what your wants and what your needs are for retirement. This is going to help you determine how fiscally smart you need to be now in order to be able to do what you want during your retirement. Folks, I'm going to give you an example. This is perfect segment going into what you determined physically smart now in order to be able to do what you want during your retirement.Kale I just worked with a couple and what we're doing is I introduced a strategy known as annuity laddering. So what they were concerned about, Cale and a lot of listeners can relate to this is that we both know right now that if you've got an income of, say, 2000 a month, 24,000 a year, with the inflation that we are seeing and we continually speak about 24,000 today is not going to buy have as much buying power in five years is you know, so what they were concerned about was how how do we take care of the inflation factor? So there are other options out there.

Randy Sams:
We can we can start you out with an income annuity where you where we are able to start you with a lower income to start with. But it increases over time. But what we did was what was known, as I referred to, as annuity laddering. So what we did is we took his 401 k and we took a portion of that 401. K and we put it into an income annuity. Now, the objective of that income annuity is they're going to leave that money in there until he's age 68, then they're going to turn on the income. But they also had additional funds in that 41k, so we took additional funds a lower amount and we put it into a separate income annuity. The objective of that second income annuity is when they turn 72, four years after he's turned on the first income, guess what they're going to do? They'll then turn on the second income stream from that second annuity with the remaining funds that he had in his 401. K. Again, folks, you've got to realize we're going to let these funds grow. First of all, we're going to let it grow for eight years for him.

Randy Sams:
And then we're going to let the second one grow until he's age 72, which is going to be 12 years. And then we're going to let the third one grow until they turn 75. Then they're going to turn on their third income. So basically what they're going to look at is the objective is at age 68, to turn on the first income stream, they will both have a pension, they both have their Social Security, and then they'll have that third income stream through the income annuity at age 72, if need be. What will they do? They'll turn on that second income stream from the income annuity and then at age 75, they'll do the same thing with the third. Now, the good the upside to this is guess what they may decide after the first time they turn on that income annuity at age 68. What happens at age 72? They're going to have to start taking RMDs because it's a requirement at that time. But they may not want the income. They may not need the income at that time. So the longer that they can let that money stay in that annuity and they continue to grow, then what does that mean as far as income for them later on down the road? Higher amount, correct?

Kale Simpson:
Absolutely.

Randy Sams:
That's that's just one of the strategies that Kayla and I can put together for you. So we want you to stop and think about sit down with your spouse, think about what your goals are, what your wants, what your needs are for retirement. Are you looking for a paycheck or are you looking for a paycheck? And that's what Kayla and I do. Hey, Kayla got a new survey from Gobankingrates shows that one third of Americans don't think they know enough about retirement and that what we're talking about today, go to your American retirement, set up a free consultation for us. Let us get you educated, give you all the information that we feel like you're going to need to get yourself prepared for a secure retirement, not a risk of retirement, folks. 52% of Americans wish they had more education on how. To invest. Hey, Kyle, how many of your clients do their own investments?

Kale Simpson:
Not too many.

Randy Sams:
No, in in the market that we're in today. Kelly, you said earlier in the show that the S&P is down, what, 17 to 18% year to date?

Kale Simpson:
Yeah, year to date around what? We've had a couple of good weeks, Randi, but call it 15, 16%, down 15 to 16 from down 20 to 23 at the end of June.

Randy Sams:
What about for one case? I think we had an earlier show maybe, what, a couple of weeks of a few weeks back that I believe how many trillion dollars has been lost in 401. K accounts this.

Kale Simpson:
Year? It's been they, Randi, they said that the first half of this year there was so much wealth destruction in the market because clients that have a 401. K or they have a broker or whatever the case may be, they're going to have money in what, equities and bonds and cash. Right. So the first half of this year, Randi, guess what, equities were down. Bonds were also obliterated in cash, cannot keep up with inflation. So cash was negative, bonds were negative and equities were negative. So that bond safe haven got destroyed. And so they're talking about that was a huge factor in this wealth destruction. So now what people are doing, Randi, is what you said. They're going to sleep and staring at the ceiling, hoping that the market comes back and the Fed doesn't do anything crazy or they try to make a quote unquote soft landing is what you hear or whatever the case may be. It changes from day to day, but they're hoping to get some of that money back because guess what? If you're 62 or 65 and you just lost 25% in your retirement portfolio, Randi, what if you can't retire?

Randy Sams:
It makes it difficult. What my question is to people is this, as an example of what you just said, if your plan was to retire at age 65 and you just lost 25% of your 401. K or your retirement plan, one of two things is going to happen. Number one, you're not going to retire at age 65. You're going to continue to work longer. Or number two, if you retire at age 65, you're going to retire at a lot less income than what you have started out with or what you're playing with. Is that correct?

Kale Simpson:
You're exactly right. Hey, Randi, I want to I want to throw two things your way. And I think our listeners will get a lot of value out of this. And I know I've said this in previous, previous shows, but I think it makes a lot of sense. And I think everyone will kind of they will understand this when I say this, and I know you will, too. One thing is, if you have not asked if you're working with an adviser or you're working with someone else or you're talking to family members or the guy at the sandwich place is making your sandwich and he's telling you to go buy crypto or whatever. Ask them if they know about sequence of returns risk. And for all of our listeners, Randy, we've talked about sequence of returns risk on other episodes, but sequence of returns risk is very, very powerful when you're getting into retirement and start in your distribution phase. The second thing that I want people to understand, since we have been through a pretty good downturn in the market, Randi, if I had if I had a dollar and I lost half of it to you. Right. So I lost half of my dollar. How much money do I have?

Randy Sams:
$0.50.

Kale Simpson:
$0.50? Because I lost 50%. Correct. So if I if I now have $0.50, but then I make a positive 50% return on my $0.50, do I have my dollar back?

Randy Sams:
Some people would say, yes, you do. But being the linear math genius that I am, I would say no. I think 50% of $0.50 is $0.25. Add to $0.50 means you're still short your dollar by $0.25, correct?

Kale Simpson:
That's exactly right. So that is one thing that I explain to clients all the time. It's the difference between absolute and relative returns. If you lose money on the way down, it's going to take a higher and I think it was two or three weeks ago, Randi, you had some incredible statistics in in relation to to what is needed to get back to a level playing field if you lost money. And that's without taking out any money. So if you're taking money out and you're losing money, then that put that puts you in a very scary situation in retirement, which goes right back to what we were discussing earlier about sequence of returns during retirement in a volatile or down market. And a lot of people don't understand that. They go, no, if I lose 50, if I lose 50%, it goes back up 50%. It's all on paper, Randy. I'm good now. It's really not not the way that it works. But if you put it down on a piece of paper, once you think about it like that, like a dollar, then I think a lot of people will go, You know what? That really makes a lot of sense. I never thought about it like that.

Randy Sams:
Well, Kale, it's it's a double whammy. So when we have clients who are taking money out of their 41k or their IRA or whatever retirement vehicle they might have, and at the same time, the market, their account value is going down. It makes it almost impossible for them to ever recover. Those are the people I believe we had a stat not too long ago that it says that there's almost what is it, over 60% of retirees today. Their biggest concern is running out of money. Before. They pass away? Correct.

Kale Simpson:
And they're even more afraid of running out of money than they are afraid to die.

Randy Sams:
That's exactly right, folks. So, folks, let us give you a smart retirement plan inspection. Give Cail a call. Give myself Randy Sams a call. 86699907664. Leave us a message. Tell us how well we're doing. Give us some pointers. We'd love to send you some information. We'd love to send you the free annuity 360 book. Folks, go to the website. Your American Retirement set up a free consultation 101.1 FM. The answer, Randy Sams, Kale Simpson, your American Retirement. Folks, thanks for joining us. We hope you have a fantastic Saturday afternoon. Go home.

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. 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 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. 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:
Fixed annuities, including multi year guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims paying ability of the issuer.

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