Why 2024 Could Be the Best Time to Invest in a Fixed-Indexed Annuity

4.26.24: Audio automatically transcribed by Sonix

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

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

Speaker2:
Welcome to your American Retirement with your host, Randy Sams. Get set for a full hour of financial information and economic news affecting your bottom line. Randy works hard each day to educate Americans like you on how to reach the financial freedom they've worked so hard for, and he can help you too. So now let's start the show. Here is your host, Randy Sams. Hey, hello again, central Arkansas. Want to welcome you to your American retirement. I want to thank you for joining me on this Saturday morning. Hope you've had a great Saturday morning starting out, uh, this weekend. Got your cups of coffee down in your whatever it is to get your motor going on Saturday mornings. But, hey, listen, we got a great show for you today. Listen to what we're going to be talking about, what retirement planning looks like in 2024. Is it any different than it was in 2023 or 2022, or maybe what's coming up in 2025? But we're going to talk about how to take proactive steps today and improve your future. Slash your retirement. But listen, you know, always have to put this little plug in here. Don't forget to check out our show on podcast. That's where you have the entire show, wherever you may get your podcast, whoever your favorite vendor might be Apple, Google, Spotify, wherever you may get your podcasts, you know where to look for you. Look for American retirement and also visit YouTube channel.

Speaker2:
Use our YouTube page youtube.com your American retirement and look for my smile and face again. You know, there's a little bit difference between our podcast and the YouTube page. Youtube page is going to have just a little short segment of maybe today's show, or any of the past shows that you may come across on YouTube. We basically do that to kind of get you, hey, I want to listen to this more. So you can either go to the website, your American retirement.com, or wherever you get your podcast and listen to the entire show on your podcast provider. All right. But listen, don't hesitate to give us a call. All my friends in Benton, Bryant, Haskell, bauxite area, all my friends and family in Conway, Faulkner County, you guys have been doing great. Giving me some phone calls, giving me some suggestions on what y'all feel like y'all want me to talk about on some of the subjects, or maybe some future shows. But you know that we love hearing from all of our listeners. We like to listen to what your comments might be. Also help you out with any questions or concerns that you may have coming into retirement. You may be in retirement. Brandy. This is something that I didn't I didn't anticipate happening. How do we deal with this? But we want to help you remember what we do at SMC financial.

Speaker2:
We like to educate our clients about the major financial issues facing retirees and pre-retirees in America today. By helping you, our clients, our listeners, understand and prepare for what a secure retirement, not a risky retirement. So that's what we do at SMC financial. That's what we do at your American retirement. If you listen to the show, you know that what we talk about here on this program is what you're going to be looking at in retirement. Some things that you may if you're in retirement, you may be already experiencing those things. If you're getting close to retirement or retirement may be 5 to 10 years off. That's fantastic. Now's the time to plan. But that's what we like to do is we like to help help our clients. We love to meet with you, discuss how we can help you reach your financial goals and help you with your retirement planning, risk management, estate planning, whatever it might be. Social security, Medicare, the whole ball of wax. Folks, we want to help you build a sound financial plan. You, our listeners, give us a call today, (866) 990-7664 or go to the website Your American retirement.com. All right folks, we're going to get this show kicked off. And you know that we cannot start the show without what. The financial wisdom quote of the week. So, Mr.. Jim, if you'll cue up that wisdom music, we'll get this thing started.

Speaker3:
And now for some financial wisdom. It's time for the quote of the week.

Speaker4:
All right.

Speaker2:
Financial wisdom quote of the week is given to us by Mr. Warren Buffett, not Jimmy Buffett, but Mr. Warren Buffett. And here we go. Someone's sitting in the shade today because someone planted a tree a long time ago. Wow. Now stop and think about that. What are our. What's this show about? Your American retirement? Someone is sitting in the shade today because someone planted a tree a long time ago. Now what? That reminds me of folks. Again, everything that I think about and talk about is about retirement. But the first thing when I read that quote by Mr. Buffett, I started immediately thinking about that seed, because, remember, somebody had to plant a seed or they planted a seedling, a small tree many years ago, five years, ten, 15, 20 years ago. And now that tree is big. It's given a lot of shade. Same thing happens when we talk about what compound interest. You see, the secret to a tree growing is time. You know, it's got to be. It's got to get sunshine. It's got to get water. All of that good stuff. But the longer you let that seed grow, that tree grow, the higher it's going to be, the more shade it's going to be able to give off. And that's the same thing when I look at compound interest. The secret to compound interest is what time? The more time that you utilize compound interest, the better it performs. The more return it shows you.

Speaker2:
So how many folks I meet with say, I wish we would have started planning ten years ago to allow the compound interest to grow, or to have this plan allow this plan more time to work. Because folks, they look, look, if we've got a plan that gives us a guaranteed compound interest of 8% for, let's say, ten years, when's the best time to make that plan and put that plan into effect? For me, I'm looking at the longer that we can take advantage of the compound interest. So if we're guaranteed 8% growth for ten years, man, if we could if we could get you at age 59.5 or 60 and you're going to retire at 68 or 70, we're going to take full advantage of that growth. That seed is going to grow to be a great big shade tree called your retirement plan. All right. Okay, folks, I love Mr. Warren Buffett. He's a great guy. Of course, his investments and my investments are different, but we still have the same thing. We're looking out for your best interest and try to put you in the best position we can for your retirement. Remember the what? A safe and a secure retirement. Not a risky retirement. All right, so let's get into the first subjects we're going to talk about on today's show. You got this ten little known facts about retirement in America today. You'll write that down ten little known facts about retirement in America today.

Speaker2:
Number one, generation X is retiring in droves. You know what generation X is? Generation X is the generation in between baby boomers and millennials. Those basically those people that are born starting in 1965 and 1980. So that 15 year period, 1516 year period between 65 and 1980. So if this sounds like you. If you're in your 50s, now's a fantastic time to meet with a financial adviser, a retirement planner, and start putting a formal retirement plan in place with time. Remember, compound interest. With time on your side, there's a lot you can do to improve your financial future. The best time to plant that seed and let it grow is when it has a lot of time to grow, right? So get it started. Many Gen Xers are starting to reach the age of retirement, leading to significant increase in the number of retirees. Folks, that's why we're seeing the issues that we have today with Social Security. And possible issues in the future with Social Security. Why? Because we have fewer people in the workforce adding to Social Security. We have more people retiring, taking out of Social Security so we could talk about Social Security, how many people are putting into it. But when it started a long, long time ago, it was like 10 to 110 people working, putting into Social Security, one person taking out. Now it's like less than three. So you've got less than three people putting in and one person taking out.

Speaker2:
So that's why we're seeing some issues with Social Security. And we'll talk about that a little bit later on in today's show number two. Family responsibilities don't end in retirement. Do you hear that? Family responsibilities don't end in retirement. Retirees often find themselves continuing to support their adult children. Did y'all hear that? Your grandchildren. I know a lot of families, a lot of grandparents that have their grandkids living with them today. Or you're taking care of your aging parents, so you're taking care of them financially or through caregiving responsibilities. Now, there were a lot of a lot of folks that we deal with. That's what they're looking at, is their mom and dad or, you know, one of the one of the parents may have passed away and mom may be moving in with the with the kids, or dad may be moving in with the kids. Okay. So you got a plan for all of that. So Gen X are facing unique challenges and considerations such as balancing financial responsibilities, caring for aging parents, and planning for their own future. So that's what we have to look at, folks, because you got to balance your family obligations with personal financial goals can be challenging for retirees, requiring careful planning and communication. So folks, listen, those are the first two. We've got eight more to go. So y'all come right back. Want to thank you for listening. We'll be right back.

Speaker5:
Thanks for listening to your American retirement. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes.

One of these crazy old.

Speaker5:
Visit your American retirement.com to schedule a free consultation with Randy today. And now back to the show.

Speaker2:
Hey, welcome back to your American retirement on 101.1 FM. The answer where little Rock comes to talk. Don't forget to check out our YouTube page. You know, you go to youtube.com and search for your American retirement. All right, folks, we're talking about ten little known facts about retirement in America today. We went over the first two. Let's hit these next ones very quickly. Number three one third of retirees live on Social Security alone. Now that hurts my feelings. Okay, folks, Social Security was never created to be your retirement plan. I'm sorry. And I'm not trying to step on anybody's toes. That's why I enjoy doing what I do every day. Working with people to get you in a financial position when you retire. Social Security is not your only retirement plan. It never was created to be a retirement fund, your only retirement source. Okay, but one third of retirees today are living on Social Security alone. Social security plays a significant role in the financial well-being of many retirees, with a substantial portion relying on it as their primary source of income. Now, folks, just think the average Social Security check is somewhere between 1700 and $1800. Think about that. If that's your only source of income now, hopefully you've got a husband and a wife and that helps out having the two Social Security's coming in. But again, you should never put yourself in a position to where Social Security is the only guaranteed income source that you have. You see, living on Social Security alone can present financial challenges.

Speaker2:
Believe me, I've dealt with too many people, so as benefits will likely not be nearly enough to cover all your expenses. And listen to this what if? And that's a capital I with a capital F if Social Security has to be reduced, if your benefits have to be reduced. If you remember, in some of the previous shows, you guys can go back to the archives, go to the website, go to the podcast. We spoke about Social Security. Could be down to zero. In, what, 2023 or 20 20 or 20 33 or 2034? Excuse me. All right. So what happens? They're going to have to make some adjustments. What happens if they have to adjust your Social Security check if that's all you've got coming in today, ten years from now, if they have to tell you. Oh, I'm sorry, Mr. Johnson or Mrs. Smith, your Social Security check is not going to be $1,000 a month. It's now going to be 750. All right. Or your Social Security check is not going to be 1500 a month. It's now going to be 1100 a month. Okay. That's a big hit, right. Because you see, it's crucial for retirees to explore additional sources of income, such as pensions, investments or even part time work. To supplement your Social Security benefits or their Social Security benefits. If you're looking for another reliable stream of income in retirement, please get in touch with us today so we can discuss how a personal pension can become a key part of your retirement plan.

Speaker2:
You got to have guaranteed income, folks. Social security. Thank God, is a guaranteed lifetime income. As long as you live, you're going to get that Social Security check. Now, what happens ten years from now? I don't know and you don't know. Hopefully the folks in Washington, D.C. can get it figured out, and we're not going to have to worry about. Those of us who are own, or those of you who are on Social Security right now, you're not going to have to worry about them reducing your monthly benefit. I don't mean to scare you, but you have to look at if you do your own research, you can see that some of the things that they're talking about, one of those happened to be reducing the benefits that we're receiving that folks on Social Security right now are receiving today. I hope it doesn't get to that. But if you do the proper planning and you have additional guaranteed income coming in, we won't have to worry about that as much. So please stay tuned, because later on the today show and we're going to be discussing how. We may be. Well, we're now may be the best time ever to invest in a solution that can provide you with your own personal pension if you don't have a pension. Well, if you've got a 401 K or an IRA, we can create a personal pension for you.

Speaker2:
Okay? And hey, if you're concerned about Social Security, I understand many of you are worried about future cuts. And we just spoke about in Social Security affecting your retirement because we want to provide you with a Social Security maximization plan customized with you and your spouse's benefit information. Folks, that's what we can do. What happens to you ten years down the road or 15 years down the road, or 20 years down the road if one of the spouses pass away because you can't keep both of those Social Security payments. All right. Well, let's go on number four. Most retirees have not budgeted for retirement. We spoke about this a little bit in last week's show. Make sure you have a budget. Lack of budgeting and financial planning can lead to financial stress. Stress in rocking chairs the two things that kill retirees. Stress is one of the leading causes of death. When retirees, you get stressed out because you're afraid you're not going to have enough money, or you get stressed out because you're afraid you're going to spend too much money, whatever it might be. Because uncertainty during retirement is what causes the stress. Tell your money where to go instead of wondering where it went. I like that y'all write that down. Tell your money where to go instead of wondering where it went. You see, retirees should create a comprehensive budget. Do you have a budget? That budget should account for all expenses, including health care, housing, leisure activities, and unexpected emergencies.

Speaker2:
Do you have an emergency account in that emergency account? How much money do you have in there? Is it two months worth of emergency funds? Six months worth eight months or more? Those are the things that we talk about when we have our free consultation. Because, see, budgeting allows retirees to have a clear understanding of your financial situation and make informed decisions to manage your retirement funds effectively. You got to have a budget going into retirement, because you got to understand how much money you have coming in and how much money you have going out. And is there a shortfall? Is there an income gap? That's what we need to address. Okay. Number five of the ten little known facts about retirement in America today. Number five, your standard of living will probably change in retirement. Retirement often brings changes in lifestyle and spending habits as retirees adjust to a fixed income and different priorities. All right. You know, I hear that a lot of times. Well, you know, I can't afford to do this because, you know, I'm on a fixed income. All right, well, let's fix that income for you. All right. Hopefully we've got a pension plan set up. You've got Social Security, you've got some other sources of income. Because retirees may need to make adjustments to their spending, such as downsizing their home, uh, or cutting back on discretionary expenses. You can't go out to eat as many as much as you used to, and finding cost effective alternatives.

Speaker2:
As you see, downsizing if necessary and planning for a change in standard of living can help retirees maintain financial stability and enjoy a fulfilling retirement that is within their means. So, folks, it doesn't mean anything if if it's, uh, I talked to folks in in and I'm glad. I'm I'm happy for folks. You have a big old house, 5000 4000ft², uh, or even larger. But it's just you and the spouse. It's either the husband and the wife or the wife, or they're by themselves. Do you need that much space? Something to consider would be, hey, maybe we could downsize. Something that's a little bit smaller, maybe easier to clean or to maintain. Those are things that we have to think about. When you're getting ready for retirement. Because that is a decision. Because sometimes when you sell your house, just think you've got a lot of equity in that house, so you get a smaller house. You've got that equity. You get to pay that house. Maybe you buy a smaller house and you pay cash for that house, and then you've still got some money left over from the equity that you sold your last house for. And you can use that to set up maybe a pension plan or put it in the bank for your emergency fund. A lot of different options that we can talk about. Let's jump in to number six. Poverty is getting worse for retirees. Wow. 10.3% of retirees in 2021 were living in poverty.

Speaker2:
Do you know that despite Social Security nets or despite social safety nets like Social Security, a significant portion of retirees still face financial hardship and live below the poverty line? Because we don't want our listeners to become a statistic. That's why we offer the 100% complimentary consultation for all of our radio and podcast listeners who contact us, folks. You got to be able to understand. Where you're at. That's part of the budgeting. That's part of the guaranteed income, that's part of having more sources of income versus just Social Security, because many people are looking for a solid plan that helps avoid the number one fear of retirees. What is that? What's the number one fear running out of money? So what do we have to address when we put together our retirement plan? Longevity risk folks, longevity risk is the number one risk we are all going to face in retirement. And that is the risk of outliving your funds at Smith Financial, your American retirement. What's our goal? Our goal is to set you up with a retirement plan, guaranteed income to where? What? Your blood pressure will hit zero before your retirement account does. Get it. Think about that. So we got to address longevity right risk and take away that number one fear which is running out of money. All right folks, we got seven, eight, nine and ten to finish up with this. Don't go away. We'll be right back.

Speaker5:
You're listening to your American retirement. To schedule your free, no obligation consultation, visit your American retirement.com.

Speaker6:
Time keeps on slipping.

Speaker5:
Welcome to Nationwide's Peak ten fixed indexed annuity, designed to help provide guaranteed income for life. Peak ten offers protection against market losses, plus protection for a spouse through a joint option and an immediate 10% penalty free withdrawal. Call us now at (500) 124-9234 three. That's (500) 124-9234 three. Guarantees and protections referenced within are subject to the claims paying ability of nationwide life and annuity insurance company nationwide. Peak ten is issued by Nationwide Life and Annuity Insurance Company. Columbus, Ohio.

Speaker1:
Do you want a steady stream of income for retirement? Then it's time to consider annuities. I'm Matt McClure with the Retirement Radio Network powered by Amara Life. Gone are the days when most employers offered pensions with guaranteed lifetime payouts to their workers. But what if I told you that you can build your own personal pension? It's possible with an annuity. An annuity is a financial product that provides a series of regular payments to an individual over a specified period of time, often for the rest of their life.

Speaker7:
There are several options for you to consider when choosing an annuity. Be confident in knowing that there is an annuity out there that can meet all of your needs.

Speaker1:
Ford Stokes is founder and president of Active Wealth Management and author of the book annuity 360. There are several different types of annuities, including fixed, variable, and fixed indexed.

Speaker7:
A fixed annuity offers a specific guaranteed interest rate on their contributions to the account. A fixed indexed annuity is an accumulation based product offered by an insurance company. The growth of your fixed indexed annuity is dependent on the performance of a chosen stock market index, but your money is not actually invested in this index. This offers you great growth potential and exceptional protection for your investment.

Speaker1:
While each can provide tax deferred growth and a lifetime income stream, variable annuities put your principal at risk in the market.

Speaker7:
If you are currently investing in a variable annuity, your funds could be in serious trouble if the market experienced any downturns.

Speaker1:
With so many possible choices to consider, it's essential you speak to a financial advisor or professional to help you make the best decision for your future. So are you ready to consider an annuity as part of your retirement plan? It's a key question to consider as you approach what should be your golden years with the Retirement Radio Network powered by Amira Life? I'm Matt McClure. Fixed annuities, including multiyear 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.

Speaker5:
Are you interested in ways to protect and grow your hard earned money? Your American retirement is here to help. Here's Randy Sams.

Speaker2:
Hey, thanks for joining me on this week's edition of Your American Retirement. Please be sure to check out the podcast version of the show on Apple, Google, Spotify, or wherever you get your podcast. All right, folks, we're talking about ten little known facts about retirement in America today. We've covered one through six. Let's hit the last few. Number seven. 80% of American retirees never leave their state. Okay. Retirees often choose to stay in their home state due to familiarity. You're familiar with your surroundings, your people, family ties, and established social networks. Don't want to leave your church family? Or you know you may be living close to your to your kids or grandkids. Retirees who stay in their state may benefit from existing health care providers. You've already got your doctors, hospitals, and everything already established community resources. You know where everything's at and you're familiar with local laws and regulations. Makes a difference, huh? When you're going out of state. What what what what are the laws? We got to know that. Okay, number eight, most people have a retirement portfolio that is not keeping up. That's why we like to meet with people. Because many retirees face the challenge of their investment portfolios, not generating sufficient returns. To sustain their desired lifestyle throughout retirement. Okay. If your portfolio is not performing. I talked to too many people, especially over the last, you know, few weeks or months or whatever where their balances are going down.

Speaker2:
That doesn't make them too excited. You see, retirees may need to reassess their investment strategies. Take advantage of complimentary 400 and 1KX ray, and explore alternative investment options to ensure that your plan will be able to generate the desired income that you need for retirement, a safe and a secure retirement. So, folks, listen, if you preparing for retirement or if you've just recently retired, you likely saw your assets drop over the last 3 to 5 years. So we encourage you to reach out to us because you could be at risk of running out of money, which happens to be the number one fear of retirees. Folks, this is due to sequence of returns. You see sequence of returns. If you guys remember, we've spoken about that retirement red zone for quite a while. Many, many times we've talking about it 5 to 10 years before you retire, 5 to 10 years after you retire. Sequence of returns means that if you're getting close to retirement or or let's say you're you're ten years away from retirement and you've been working hard to get that 401 K balance, your retirement balance your retirement fund set up. All of a sudden the stock market crashes in your 401 K. Balance drops by 30, 40, 50%.

Speaker2:
What do you do? Hopefully you're young enough to where you can ride that out, but if you're riding it out over the next 5 to 6 years just for that 401 K balance or IRA balance to get back level where it was five six years ago, you may not be retiring on the amount of money that you thought you were going to be. So you've got an option. You're either retire on less money or you work longer than you anticipated. The flip side to that, if you're in retirement, you're no longer adding to an IRA or 401 K. You are taking away. This is called Decumulation. Okay. The accumulation means you're taking money out. If you're taking money out at the same time, your balance is going down. Sequence of returns, risk. That's what's put you what's what puts retirees in the situation to where you could run out of money. If you're taking too much money out while the balance is going down. That's called sequence of returns risk. So signs that you need your 400 and 1KX ray and portfolio analysis, you are consistently. Saving for retirement, but aren't happy with the rate of return you are receiving. You feel like your money isn't working as hard as you do, and you aren't receiving much, if any, help from your work based retirement plan servicer or HR department.

Speaker2:
I get that all the time. What are you doing with your 401 K? Well, I don't know what do you have it invested in? I don't know. They're not getting any help and they're really not doing it themselves. All right. That's why you need to give us a call (866) 990-7664 or go to the website Your American Retirement. Leave us your information and say, hey, Randy, I'd like for you to get in contact with me. Let's set up that consultation and let's do that. 400 and 1KX ray and your portfolio analysis. All right number nine folks. Over 35% of retirees still have a mortgage at age 65. If the mortgage is not a burden to you, that's fine. But we find folks that I have too many times where I'm in a situation where I'm dealing with people where they have that mortgage and they know that that mortgage is they still have another 15 years. If they have a 30 year mortgage, they have another 15 years to pay off that mortgage or ten years to pay off that mortgage. And that could take a huge portion of your retirement funds. There's something that you have to look at. So over 35% of retirees still have a mortgage at age 65. So. So for those of you who are thinking about retirement in ten years, 15 years, what should you just written down? Maybe you need to look at that mortgage.

Speaker2:
Is there a way that I can have that mortgage paid off by the time I hit my retirement age. What age? You feel like you want to retire because he carrying a mortgage into retirement. Will impact retirees cash flow and financial flexibility. Because this will likely consume one of the two Social Security payments coming into the household. So if you've got a husband and wife and remember, the average Social Security payment is, what, between 1700 and 1800 a month? So one of those Social Security checks could be going to do nothing. But what pay towards the mortgage. So you can see why that that could affect a little stress level, because we retirees should consider strategies to pay off your mortgage before you hit retirement, or explore refinancing options to reduce monthly payments. Now, folks, extremely that refinancing option. I don't think that's a great idea. With today's environment, with the interest rates being as high as they are, mortgage interest rates are higher than they've ever been. I mean, what are they? Uh, back in 2019, under Donald Trump, the mortgage rates were around 2%, maybe even less than 2%. Under your current guy in the. In the white House, mortgage rates are anywhere between seven, eight and 9%. Now is not the time to refinance at seven eight 9%.

Speaker2:
It's not. When interest rates are low, then you can refinance. Why? Because it may help you reduce your monthly payments. It may extend your payment period, but you're paying less on a monthly basis. So consider refinancing when the interest rates are. Mortgage rates are low because when you enter retirement, you are beginning your decumulation phase. Remember what I spoke about while you're working? You're putting money in accumulate while you're when you retire, you take money out, you're accumulating. So you because you're withdrawing assets to live on and meet your expenses, don't let debt become an additional drain on your portfolio. All right, folks, now, number ten of the ten little known facts about retirement in America today. Early retirement could actually be bad for your health. While early retirement may seem appealing, it can also have unintended consequences on retirees, physical and your mental well-being. Listen, retirees who retire early. You think that's great, man? I'm going to retire at age 55 or at age 60 or 52. Who knows? But retirees who retire early may experience a loss of purpose. You don't have you're not you don't have that going to work every day or social connections. The people that you worked with for many years and mental stimulation, you know, sitting around watching Oprah Winfrey eating bonbons and, uh, the price is right probably is not a lot of mental stimulation going on there.

Speaker2:
Okay. This can negatively impact your overall health. You folks know people and I know people that have worked for many, many, many, many years. They got to an age they wanted to retire. And when they retire, they did not stay active. And that's the key. They did not stay active. Whether it be part time work, whether it be volunteer work, whatever it might be, taking up a hobby that kept you active. Those people passed away very quickly. You know him and I know them. So the key to this is what you got to stay active. If you're retired, that's what you have to look at. You have to look at. What am I going to do when I retire? I just don't want to sit around the house and sit on the couch and watch TV all day. Think about that. That's part of your planning, okay? It's part of your planning. So listen. We're going to come back and we're going to talk about why 2024 could be the right time for you to invest in a fixed indexed annuity slash guaranteed lifetime income. So don't go away. This next segment is going to be an eye popper. All right. Why 2024 could be the right time to invest in a fixed indexed annuity. We'll be right back.

Speaker5:
Miss, part of today's show, Your American Retirement, is available wherever you listen to podcasts and online at your American retirement.com.

I'm solid gold.

Speaker1:
I am speaking with Rebecca Kinney, director of the Office of Health Care Information and Counseling at the administration for Community Living. Rebecca, thanks so much for taking a few minutes for me. I really do appreciate it.

Speaker8:
Hello. Thank you for having me.

Speaker1:
No problem at all. Well, you know, um, Medicare is a topic we talk about quite a bit around here in, in the work that I do. And it can be really confusing for a lot of people. The good news, though, there is, um, some, some help that's available out there and it's not going to cost an arm and a leg either, which is always good news for folks. And we're talking about specifically state health insurance assistance programs. What are those and really how do they work?

Speaker8:
Yeah. Thank you. So the state health insurance assistance programs, also known as the ship. Ship? Uh, we lose the a there in the acronym is, uh, nationally, uh, federally funded program that is available in every state D.C., Puerto Rico, Guam, and the US Virgin Islands. And this grant based program funds a network of over 12,000 uh, local team members who have been fully screened, trained and certified in Medicare to help folks really navigate and understand their Medicare options and benefits and how to access those benefits and use them. Uh, we work really hard to try to make sure that, uh, our folks are available. This program is free because it is a federally funded program. There is no charge for the service if you call the ship for help. And, uh, as I said earlier, these programs are available nationwide, and we have folks in your local community available to provide assistance, either over the phone or in a lot of cases, you can set up an in-person, uh, meeting with a ship counselor to really sit down and talk through whatever your questions, uh, may be to, to help out.

Speaker1:
Very good. And so are these, um, services available for people who are already on, uh, Medicare or maybe people who are about to, uh, age into the system, perhaps during the annual enrollment period. I know which is coming up, of course, later on in the year. But, um, uh, who can call these lines and and get help?

Speaker8:
Yeah. So we help anyone who is enrolled in Medicare or eligible for Medicare. We also will assist caregivers. So if you're helping take care of a parent or a spouse, in some cases, even a child who is Medicare eligible. And you need help understanding how to navigate those plan choices available to you or access certain benefits, you can contact the ship. We will help anyone, uh, as I said, who is Medicare eligible or Medicare enrolled. And because those Medicare plans change every year, we do get a lot of calls during open enrollment to help folks really look at and understand how the choices are changing for the next year and how those changes match up to our, um, individual needs.

Speaker5:
Like what you're hearing. You can watch the show to visit youtube.com and search your American Retirement to watch clips from this program.

Speaker2:
All right, folks, you're listening to your American retirement. Join us every Saturday at 10:00 right here on 101 FM. The answer where little Rock comes to talk. Let's jump right into why 2024 could be the right time to invest in a fixed indexed annuity. Folks, this is by creating your own personal pension for you, our listeners. Okay, here's the reason why it could be recession fears. We receive regular calls from our clients and listeners who are concerned about the possible impact another recession could have on their retirement. Many Americans lost 20% or more in their retirement accounts in 2022. And you still remember the economic crisis of 2008, where many people's portfolios lost 50% or more? Folks, you see, I went through that. You went through that in 2008. But what did we have on our side time, because we were all younger in 2008, so we had time to ride it out and to let that come back to recover. We don't have that much time when we jump into retirement. All right. So we want to make sure that we're making decisions today, that if something happens as far as the market crashes and it drops 40, 50%, it doesn't affect what you live on. Your income is guaranteed. Your income is going to be steady. You see, Pre-retirees and retirees who have invested in fixed indexed annuities are not at risk of losing any money from that portion of your portfolio.

Speaker2:
Your investment is always 100% protected and backed up in reserves and by the reserves of that company, making it a great alternative to bank CDs. See folks, if your risk averse, the words you don't like to take a lot of risk, but still looking to protect and grow your money for retirement. One of the best things I believe you can do for your retirement is replace the bonds you currently hold with the right fixed indexed annuity. If you take the bond money out, put it into a fixed indexed annuity, a guaranteed lifetime income annuity. It's going to guarantee you two things. Number one it's going to reduce your risk. Number two it's going to increase your returns. Nobody can argue with that okay. That's a done fact. It's over. It's mathematical. It's mathematically been proven. It's going to increase your returns and it's going to decrease your risk okay. Because when you invest in a fixed indexed annuity, you effectively put a floor on that portion of your portfolio, meaning you can't lose money. The value can only go up and never go down. What I just say, it reduces your risk and your portfolio your overall risk. You can't go wrong folks. Banking concerns. People are concerned about the safety of banks. Banks have fractional reserve requirements. They are only required to keep 10% of deposits in cash reserves.

Speaker2:
Folks, one of the things that I always talk about when we're talking about an insurance company versus a bank is solvency. That's basically reserves, okay? It's a solvency ratio. Because, you see, in contrast to a bank, a fixed indexed annuity has a minimum 100% reserve requirement. So that company that has your fixed indexed annuity has your money. That money has to be 100% guaranteed. It has to be in reserves. And many insurance companies keep more than 100% of their deposits in cash reserves. That's the solvency ratio. If you ever have anybody come talk to you about an insurance policy, slash an annuity, life insurance, long term care, whatever it might be, always remember to ask them information about the company that they're presenting. And what is the solvency ratio. You see, there may be a company that is rated B plus plus, but their solvency ratio is 110. There may be an A plus rated insurance company out there. Their solvency ratio may be 106. I could give you specific examples, but we don't have that much time. Okay. That's why you need to call me (866) 990-7664. And I can explain why that solvency ratio slash reserves is very important. You see, do not keep money in a bank that has less than 100 million in total deposits. As they are not even required to keep 10% in reserves.

Speaker2:
They're not required, folks. Isn't that crazy? A lot of people feel comfortable with FDIC, but you got banks out there that have less than 100 million in total assets that aren't even required to have at least 10% in reserves. These institutions have less strict requirements. Be careful interest rates, a rising interest rate environment for all of you who have bonds. You know this reduces the value of your bonds. Rising interest rate. Hey, aren't we in a situation right now where interest rates have have risen? They're rising right now okay. And that affects your value of your bonds with bonds taking up 30 to 60% of most portfolios we see today, you should consider what an annuity could do to protect your hard earned money as you age. Remember, it's going to reduce your risk. It's going to increase your return. So please give us a call (866) 990-7664. Or you can go to the website Your American retirement.com. Discover the latest rates, features and bonuses offered by our highly rated annuity companies that we work with. All right tax benefits fixed indexed annuities offered tax deferred growth, meaning you don't pay taxes on any interest earned until you withdraw those funds. You can invest in an annuity with your tax deferred IRA funds or rollover funds from your qualified, work based retirement. 401. Hey folks, this is what's very important. Remember when you hit 59.5 and you're working and your employer has a defined contribution plan a 401 K, 403 B, whatever it might be.

Speaker2:
That's the time to take advantage of rolling that money out of that 401 K, all of it or a portion of it. Okay. You can do what's known as an in-service distribution, and you can take up up to 100% of those funds if you want to, but take advantage of that compound interest, because all that interest, if I can put you into a guaranteed lifetime income annuity, that will guarantee you and me an 8% compound interest for ten years, guaranteed, and you're not going to lose a dime, why wouldn't you want to take advantage of that? It to me, it's a no brainer because that 8% compound interest, you're taking your 401 K funds, putting it into a qualified annuity, no tax consequences, no penalties from that rollover. And you're letting it grow guaranteed at 8% compound interest for the next 8 to 10 years. Whatever you want to retire and start that income okay. The indexed annuity gives you and me protection from longevity risk. What's the number one risk in retirement longevity risk. People are living longer. According to the CDC. The life expectancy in 1900 was under 50 years old. By 1950, it had risen to 68 years old. Today, life expectancy is 77 years. But more than 6300 US citizens turn 90 every day, folks.

Speaker2:
Every day we have 6300 US citizens turning 90, and there are more than 100,000 US citizens aged 100 or older. Now, doesn't it make sense that your retirement plan. Gives you a guaranteed a 100% no if, ands or buts, no what ifs. But doesn't it make sense that your retirement plan guarantees you lifetime income, even if you live to be 100 or 100 and 5 or 110? I don't want to deal with someone that gives me one of these Monte Carlo figures, okay? And it spits out and says, you have a 90% chance that this program will pay you this amount of income guaranteed to age 85 or 90. No, folks. 6300 US people in the United States today, every day are turning 90. So you need to have a plan that gives you and your spouse the peace of mind, knowing that if I lived to be 95 or if I lived to be 100, my income is guaranteed for as long as I live and as long as my spouse lives. Because folks, lifetime income, no matter how long you live, is got to be what your focus is, all right? While your assets in the stock market can lose value or be drawn down to zero as you age, an annuity provides you and your spouse with an income you can never outlive.

Speaker2:
Why would you try to systematically withdraw your assets when there is a safer option that will provide you with a personal pension for life? Folks, that 4% rule. Some of you all may have planners or investment advisors that have told you, oh, the 4% rule, folks, that doesn't work today like it used to. All right, the 4% rule. Basically means that you're going to take out 4% of what your investments are. What happens if your investments drop? You see what I do? My guaranteed lifetime income annuities, they pay you what's known as a payout factor. That payout factor. Why would you lock yourself into dealing with 4% or less? When we can lock you into a payout factor of five, 6 or 7% or even higher, depending on your age, and that's guaranteed for the remainder of your life. Okay, so folks, look, it's been a great show. I hope you've taken some great notes, but we want to put you in a secure financial position, a safe and a secure retirement. So thanks for listening to your American retirement. Remember, if you missed any part of today's show, go back in the podcast or the archives on Apple, Google, Spotify, or whichever platform you get your podcasts. Please go out and have a fantastic rest of your Saturday. Have a great week. God bless. Go Haugs. We'll talk next week.

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

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