How We Use Structured Notes in our Portfolios Transcript: Audio automatically transcribed by Sonix

How We Use Structured Notes in our Portfolios Transcript: 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 the Act of Wealth Show with your host. Ford Stokes Forde is a fiduciary and licensed financial advisor who places your needs first. He’ll help you protect and grow your wealth. The Active Wealth Show has grown because activators like you want to activate their retirement planning with sound tax efficient investing. And now your host Ford Stokes.

Ford Stokes:
And welcoming Active Wealth Show activators on Ford Stokes, your chief financial advisor. And I’m joined by Sam Davis, our executive producer. Sam, welcome to the weekend.

Executive Producer Sam Davis:
Welcome to the Weekend Activators. So happy that you’re here listening to the Active Wealth Show. It is springtime in Georgia. And this weekend we flip the calendar from April to May.

Ford Stokes:
Yes. And I think we’re going to play that song here in just a little bit. It is going to be May and it’s going to be May on Sunday. And super excited about this show, too. So this show we’re going to be talking about, we’ve got a structured note, a new structure note for May that I think you’re going to really like. And and that one is offered by Bank of America through Brookstone Capital Management, our registered investment advisor. And here’s what we’re talking about on today’s show. Well, number one is we’ve got a news article on retirement travel and retiree travel. And we’re going to talk about that here in segment one. We’ve got an update on jobless claims. It’s actually really good news. I know it’s been a tough week in the market. We’re also going to give you some real detail on undervalued tech stocks. We’ve got an inflation demonstration as well on drug prices, which is a remarkable news article, segment that Matt McClure, our reporter on retirement radio, what he gave us. So we’ve got two of segments from Matt McClure this this week and he’s just doing a great job and and we’re so excited to have launched the Retirement Radio Network. We’re so excited to be a part of it. Also kind of pumped up that I get the opportunity to be on the same panel as Laura Ingraham on May 6th.

Ford Stokes:
Helping radio advisors out there and all this growth is really thanks to you, the activators and we really appreciate you all listening to the wealth show on a weekly basis or listen to us on our podcast and the episodes on Stitcher, Spotify, Google Play or iTunes or even iHeart Radio. Even though we’re on a Salem station, iHeart took our show as well. So again, thanks to all of that support and feedback. And if you want to listen to the Active Wealth Show at any time, you can always listen to our episodes on Active Wealth Show.com, that’s Active Wealth Show.com. And you can also click a schedule a consultation button. There’s a button in the upper right corner of Active Wealth Show.com and active wealth.com. And we’re happy to give you a free financial consult where you can understand the risks you’re taking, the fees you’re paying, and also just help you plan for successful retirement all the way to and through your 95th birthday, we give you a portfolio analysis, a financial plan, your 95th birthday with your current plan, then a financial plan to your 95th birthday with our recommended portfolios, and then also a financial plan with our recommended portfolios and a Roth Ladder Conversion plan. Your 95th birthday at no cost to you. It’s like a $4,500 value. We do it on the front end at no cost to you because we feel like you deserve the opportunity to be able to make an informed financial decision about who you’re going to work with.

Ford Stokes:
If you’ve seen a lot of market downturn in your portfolio this year, I would encourage you to give us a call and get a second opinion just like you would if you’ve got an ailment and you’re going to go to a second opinion with with a different doctor, we’d love the opportunity to help you feel free to give us a call at (770) 685-1777. Again, (770) 685-1777. And Sam, let’s kind of dove into this thing. Let’s first talk about the meme that is out there that everybody talks about. It’s going to be may meme, it’s going to be made meme. It’s from NSYNC and Justin Timberlake. When he’s saying it’s going to be me, he says, you know, it sounds like it’s going to be May it’s going to be May, it’s going to be May is widely used in the weeks leading up to May as a fun Internet tradition. People may post the original meme. It’s simple text or subsequent variations on it, including gifs. The meme has become so popular that it’s often referenced, ironically used to comment on meme and internet culture more generally. I just thought that was a fun thing to share. And Sam, you were very young when. When that song came out from In-Sync?

Executive Producer Sam Davis:
Yes, I was about ten or 11 years old when that came out. But I remember people making jokes about that as a kid. And and as I grew up, people continue to make jokes about it. But I’m wondering how much this really crosses generations, because you brought it up to me this morning. I’m aware of it. Are your daughters, who are 15 years old, aware of this?

Ford Stokes:
They are because it’s kind of become a dad joke. So I’ll even say that going into going into the weekend or whatever. And they’ll be like, Oh, Dad, we’ll get the eye roll and the whole deal. But yeah, so yeah, it does cross all generations. Plus, Justin Timberlake’s a good guy. Every kind of likes him. Don’t love his politics. I’m. I’m a conservative, and he’s a little bit more of a liberal. But I do appreciate his music. I appreciate his personality. I think he’s very he’s a professional. And and so but we had to give some homage out there to it’s going to be May it’s gonna be.

Ford Stokes:
So kind of a fun deal there. All right. So let’s kind of just jump into this travel piece. I want to go ahead and go ahead and play that news article about retiree travel.

Producer:
I’m Matt McClure with the Retirement Radio Network. It’s getting to be that time of year when people start flocking to the beach, soaking up the sun as waves crash on the shore. But how can you make it happen after you retire? At a certain age, people are less likely to travel and more likely to sit at home in front of the TV watching reruns of their favorite sitcoms. Okay, maybe not doing that exact thing, but you get the idea. And now we have COVID to consider when traveling, especially since seniors are among the most at risk groups for the virus. The CDC says if you’re going to travel, do it safely.

Producer:
Of course, COVID also makes international travel more difficult, since different countries have different entry requirements. Still, for seniors looking for a getaway outside the country, US News and World Report ranked some of the top destinations for retirees as places like Ireland, Italy and Mexico. If you want to get away for a more affordable trip, stay closer to home. Triple H says travelers this year are choosing road trips or shorter flights to some classic destinations like Orlando, Seattle, Miami and Las Vegas. That’s not the only way to potentially save money, though. Jim Miller is senior editor of Savvy and told Oklahoma’s News four about something called travel clubs.

Producer:
These are designed for travelers over the age of 40 or 50. There’s two clubs. There’s the Evergreen Club and the Affordable Travel Club and memberships to to join. These are 65 or $75 per year. And how it works is, is when you travel, you stay at a club members house and they’re in a room with breakfast for $20.

Producer:
And of course, there are discounts available through organizations like Triple AA or AARP. So how do you make travel more affordable during retirement? That’s a key question to consider as the weather warms up with the retirement radio network. I’m Matt McClure.

Ford Stokes:
What we try to do here at the Active Wealth Show and also at Active Wealth managed to help you plan for retirement completely and comprehensively. And one of those aspects is travel. I’ve got several clients and also several relatives. My dad’s 83 years old and he doesn’t travel anymore. He’s healthy enough. He still works from his house as an attorney, but he just doesn’t like to travel. I can’t even get him out to a Braves game. We have season tickets with active wealth and and let our clients take their friends to a game or two each year, each season. And it’s hopefully the Braves will continue to turn around this a little bit of sputter I mean they’re not doing too bad but they’re that really haven’t won a series yet they’re getting better but hopefully and Ronald Acuna is back on the roster. So we’re super excited about that. But you know, my dad doesn’t want to travel, so you’re going to likely travel in your seventies, in your sixties and seventies, during your retirement years. And you got to know what’s going on with travel. And obviously, the high cost of gas is getting higher, but it’s nowhere close to what what it is in Europe. And and I would encourage you to get out and see our country, try to check out, make it fun, try to check off different states. And I’ve got a friend and a client who takes his kids to three different states every year, at least because he’s trying to get through. You know, by the time they’re they turn 18, he wants to see all 50 US states with them and sometimes he does four or five.

Ford Stokes:
But again, the goal of us sharing that travel news article. For Matt McClure with the Retirement Radio Network is we want to help you better plan for your retirement and also reduce your fees that you’re going to pay. And that includes travel fees. I mean, go ahead and sign up for Triple A to try to reduce the cost of your hotel rooms when you’re traveling out there on the road and maybe get a hybrid or get an electric car and enjoy the time. And granted, you’re going to have to charge up every 300 miles or 250 miles, but go ahead and and, you know, do everything you can to reduce fuel costs, but also reduce your the costs you’re going to pay for hotel and get out there and see the country also. A gentleman I used to work with. He became an expert in photography, and he just takes photos everywhere he goes. And he’s even trying to get into the NFT side of things. And he’s he’s done some really neat stuff and it’s just something he looks forward to every time, everywhere they go. And so he and his wife has done the same thing. So they take different pictures. And from a male and a female perspective, what was coolest to them about the trip? And that’s kind of fun too, but we’re trying to just help you spend more time with your significant other. When we come back from the break, we’re going to talk about the latest jobless claims. You’re listening, Active Wealth Show right here on AM 920. The answer they reported coming back.

Producer:
We have Ford Stokes, author of two important personal finance books, Annuity 360 and taxes are on sale here on AM 920. The answer as the host of the Active Wealth show Saturdays at 12 noon and Sundays at 11 a.m..

Ford Stokes:
And welcome back, activators the Active Wealth Show. I’m Ford Stokes, your chief investment adviser and jobless claims in the US declined by 5000 to 180000 for the week ending April 23rd, the Labor Department reported on Thursday. First time applications generally reflect the number of layoffs. The four week average for claims which evens out the weekly ups and downs, rose slightly from 179,000 750 from 177,500 from the previous week. The total number of Americans collecting jobless benefits for the week ending April 16 inch down by 1000 from the previous week to 1.408 million. That’s the fewest since February 21st, 1970. That’s kind of a while there.

Executive Producer Sam Davis:
Sam Yeah. I mean, I think it’s a it’s a sign that the economy is starting to come back, at least in that respect. I know at least in the Atlanta area, I’m sure anyone that’s driving around listening to this show here on the weekend on AM 920, the answer is notice that the traffic in Atlanta has picked up significantly compared to where it was a year ago, or especially especially two years ago. I mean, you could you could drive from the outside, the perimeter to downtown in 12 to 15 minutes. But no way that’s happening now.

Ford Stokes:
No, that’s exactly correct. And we, you know, trying to drive to the Braves games with clients and take them and some of that, it’s, you know, we’re having to go back roads and take that interstate North Park away. That’s kind of almost like an access road to to 85. It’s death to get to 85. Right now it’s especially that Roswell Road and Hammond, where our offices are also if you’re one where our offices are, our offices are in the King Queen building. We’re on where the King building on the 29th floor overlooking my commute home to Forsyth County, looking straight up 400 we ever look perimeter mall and all that stuff too and looking towards downtown. And so we’d love to have you come up here and meet with us just to kind of get an understanding of what’s possible. And let me tell you a little bit about what’s possible with structured notes. So we’re a little unique and we offer structured notes to our clients for a bond replacement strategy. You take like ten or 20, even up to 40% of your portfolio and. Replace the bonds in your portfolio. The typical. Modern portfolio theory portfolio is 60% stocks and 40% bonds. So if we take and bonds have not done well, I mean, bonds have lost 10% this year and the S&P 500 is over 11% down for the year. And so if you were in the S&P 500 and bonds, you’re down 21 plus percent on average, more than likely. And so I would encourage you to consider replacing the bonds in your portfolio with structured notes.

Ford Stokes:
And the difference is you can walk into a bank and go talk to a bank and say, hey, bank advisor, say Hey, I want a structured note. They’re going to sell you one that is a broker or a broker structured note that allows them to take their five and three and a half to five and a half percent commission on the front end. So let’s just say it’s 5% and you buy a $20,000 structure note. You’re walking out with a $19,000 structure note and they got 1000 bucks just for you showing up that day. That’s fine and all. But I would prefer to do in an advisory structured note, which is the structure notes that we offer because it’s just a different asset allocation, it’s different investment sleeve within our portfolios that we offer. That’s what private wealth management looks like. What we like to do is we like to invest in a structured note ladder, so we work with a lot of folks. Let’s say they want to put $100,000 into structured notes. We would take 20,000 and put it into this one for May and then we take another 20,000, put one in for June, another one for August. Another one for September and another one for October. The premise there is, it’s more than likely if you’ve got five different starting points on the indices with five different notes, with five different issuing banks and five different interest rates, you’re going to diversify your risk. So I recommend trying to do implement some sort of structured note ladder to diversify your risk and protect your money.

Ford Stokes:
A structured note is a security and there is market risk involved, but this is an educated market risk. And also it’s smarter because you can do a structured note ladder to further diversify the risk. And I, I believe in structured notes. Also, the US has got like 16% of the structured notes out there. Most of the structured note market is actually in Asia and Europe. And these folks have figured out this is how you can generate a rate of return over the long haul. I would seriously consider investing in structured notes with us, and if you don’t need that money for a year and you’re not going to touch that money for a year or to six months, then I would encourage you to consider a structured note with us. And the best way to do this is just pick the phone up and give us a call at (770) 685-1777. Again, (770) 685-1777. We also have a white paper called Understanding Structured Notes to our chief investment officer, Mark Diorio sent and he wrote and we will send that to you. Absolutely no cost to you. All you’ve got to do send me an email at forward at Active Wealth.com that’s Ford at Active Wealth.com. We’re going to educate you about structured notes. We’re going to be transparent about structured notes. We’re going to email you a full white paper that’s easy to read. It’s easy to understand about structure notes and why this makes sense and how that could be part of an actively managed strategy.

Ford Stokes:
That’s why the name of our business is Active Wealth Management. So I would encourage you to reach out to me at forward at Active Wealth or just go to Active Wealth.com and click that schedule a consultation button in the upper right corner and you’ll get put directly into my calendar and I’ll help you with it. No problem. But have you been struggling to figure out how am I going to get a rate of return? Then I would encourage you to consider investing with us with structured notes, and I would encourage you to visit Active Wealth.com to get your free consultation so you can learn more about structured notes and helping you get a higher rate of return than you’re getting now on your bonds. Bonds pay income, structured notes pay income. And the structured notes are paying a higher income. Yes, there’s some risk involved. It is a security. There is market risk involved. But I would encourage you to consider structured notes so you can get a higher rate of return in this volatile market. When we come back from the break, we’re going to talk about undervalued tech stocks. We’re going to talk about some inflation stuff. We’re going to have another news article from Matt McClure. We’ve got a lot to cover here on the Active Wealth Show this week, and we hope you come right back. You’re listening to AM 9 to 1 and the answer.

Producer:
Are you concerned about US tax rates being raised by the Biden administration and how that will affect your retirement? Tune in to the Act of Wealth show with Ford Stokes, your chief financial advisor, to learn how you can reduce the taxes you pay before and during retirement. The Act of Wealth show Saturdays at noon and Sundays at 11 a.m..

Ford Stokes:
And welcome back Activators, the Active Wealth Show and Ford Stokes in Chief Financial Advisor, joined by Sam Davis, our executive producer. Also, if you’re wondering who in activator is that somebody who listens this show, it’s somebody who has helped us grow like crazy. It’s somebody who is wanting to protect and grow their wealth. They want to tax efficient, fee efficient and market efficient portfolio, and they want to enjoy their retirement with some peace of mind. And Sam, I know you’ve got a real passion for the activators out there. Just your thoughts on how the activators have helped us grow this show and grow even the production value of the show to.

Executive Producer Sam Davis:
What we found is that there’s a lot of people out there that are seeking information, which is a good thing, because they realize that if you fail to plan, you’re planning to fail. They consume a little bit of the Active Wealth Show every week, whether it’s on the radio on AM 920, the answer or if they listen to the Active Wealth Show, wherever podcasts can be found, you can find the Active Wealth Show there and listen on your own schedule. So we’re just very grateful that people are seeking information and that we’ve been able to reach more and more people every month.

Ford Stokes:
No question. And just big thanks out there to the activator. So, Sam, if you could, part of that production value that we’re getting now as being part of the retirement radio network and we’re you know, we’re one of the founders of the retirement radio network. Can you just share Mat’s article on news article on inflation, specifically what’s going on with prescription drugs? I think all of you are going to be shocked at some of the some of the pricing increases that have happened with prescription drugs out there.

Producer:
I’m Matt McClure with the Retirement Radio Network. Next time you head to the pharmacy, you could be in for some sticker shock. So do you need to plan now for higher drug prices in the future? First, let’s spell out the problem, and it’s not necessarily a new one. Prescription drug prices have been rising faster than inflation for decades, according to AARP. To put it in perspective, the group says if gas had risen as much as prescription drugs have over time, regular unleaded would cost more than 12 bucks a gallon by now. For seniors on a fixed income, being able to afford prescription drugs is essential. Ron Mastro, Giovanni of Health View Services recently told CNBC.

Producer:
Whether you’re affluent or whether you’re the average person, I’ll tell you what, when you look at your Social Security check, you’re paying for health care.

Producer:
Prescription drug insurance plans provide some coverage, of course, but not all plans are created equally. And it’s important that you know the details of your plan, especially what it will and won’t cover.

Producer:
You really need to look. At the. Coverage in those types of plans to determine what makes the most sense for you.

Producer:
Lawmakers in Washington have been trying to come up with solutions on several fronts. They include things like allowing the government to negotiate drug prices, capping the cost of insulin and more. But those proposals have stalled. They were part of President Biden’s build back better plan. It passed the House, but that massive piece of legislation hit a roadblock in the Senate. Even though surveys show big majorities of us adults approve of those measures, it seems like everyone agrees something needs to be done to control costs but just can’t agree on exactly what that might be. In the meantime, what should you do to prepare for higher drug prices in the future? Well, putting more money in savings surely couldn’t hurt, according to the experts. But that can only go so far. And what can you do now to save money at the pharmacy? Well, that is a key question to consider as inflation continues its upward climb with the retirement radio network. I’m Matt McClure.

Ford Stokes:
Sam, I thought that was a very insightful news article for Matt and can you just share your thoughts on if the same price increases that happen to gas, we’d be that have happened to pharmaceutical drugs and pharmaceuticals out there for our seniors. We’d be at $12 a gallon for gas. I mean, that was a while to me.

Executive Producer Sam Davis:
Yeah. And I think that’s a really good comparison. That puts it into a perspective we can all understand because not necessarily everybody has the same amount of expenses each month for prescription drugs, but pretty much everybody has to stop at the gas station at least once or twice a month to get gas. So so it is incredible. You know, we’ve seen inflation impact almost every part of our economy, but it just seems that where it hits the hardest is the stuff that we need the most. You know, food, gas, health care, child care, you know, the cost of housing. So, you know, inflation is something that we look out for at active wealth management. And you want to make sure that your clients are prepared to combat inflation moving forward.

Ford Stokes:
No question. It’s just a big concern for me. So here, what do you do about it? I mean, even Matt asked at the end of the news article, What do you do about it? So I would recommend what you do about it is you try to plan. You need to get you need to get a good plan for your Medicare Part D supplement insurance plan. You need to have make sure you’re sign up for Medicare Part A and part B, which is part A is the hospital. Part B is the physician side. I mean, I don’t specialize in Medicare. We work with Bonnie Dobbs, who is the CEO of Medicare and other red tape, and she and her group of license agents that are amazing. She sits on the the Council for Aging for the Atlanta Journal Constitution. And if you’ve got questions about Medicare, I would encourage you to visit Medicare and other red tape or just reach out to us and we’ll we’ll schedule a direct appointment with Bonnie Dobbs. I mean, she’s just amazing. And I’m a big fan of hers, and she’s going to help walk you through everything you’ve got to deal with with Medicare, whether it’s Medicare supplement insurance or it’s kind of like a PPO where you’re paying for paying money each month, which then it’ll cover your co-pay and cover any deductibles you may have. Or if you do Medicare Advantage, which is kind of like an HMO where you’re getting a lot of stuff for free, but you may have large deductibles if you get checked into a hospital.

Ford Stokes:
As an example, I think it’s like a deductible of $6,790. If you if you get admitted into a hospital, you’re going to have to pay out of pocket if you have Medicare Advantage. Medicare Advantage has become wildly popular because there’s no additional fees. To me, we like Medicare supplement insurance because you can cap your costs and have a better plan for it and pay 150 around, you know, I’d say 150 to $170 a month. And you’ve got a network. It’s like a PPO, but it covers all of your deductibles and co-pays and you’re able to cap your costs that you call it. Even if it’s $200 a month, call it $2,200 a year. That’s something people can fit into their budgets during retirement. And we like that. We like minimizing risk. We don’t like having a risk. Hey, I don’t know how many times I’m going to get admitted in the hospital in my sixties and seventies and eighties. I just I need to be careful about going with Medicare Advantage and that that speaks directly to that pharmaceutical side. It just does. It’s too scary to not have a plan for health care because it’s going to be one of your largest costs during your 35 plus year. Retirement is health care. And a lot of people don’t see it that way because they go through their working years and they don’t they don’t actually spend a lot of time going to the doctor too much.

Ford Stokes:
I mean, maybe when they have, you know, females when they have children or or just their their annual OBGYN checkup. But, you know, us guys, I mean, we’ll go to an annual check out, but it’s kind of you just move on and as long as you don’t have any problems and and that’s kind of been me. I mean, I go to the doctor once a year, that’s about it. And so you got to but you do need to have a plan because things are going to change. You know, we we don’t live forever. And at some point, ailments contribute and aging contributes. To the fact that you’re eventually going to pass away and go to heaven at some point. And you’ve got to have health care to help lengthen your life and improve your quality of living. And and the pharmaceutical drug stuff is part of that. And we’ve got to minimize those costs. So you’ve got to have a great Medicare Part D plan. And I would just encourage you to reach out to us because it’s smart. It’s part of a smart financial plan. Again, just to review a smart financial plan includes smart, safe investing with with fixed indexed annuities and things like that to replace your bonds. Also smart risk, which is also bond replacement strategy and tactical asset allocation on the equity side.

Ford Stokes:
But you can replace bonds also with structured notes. So we just talked about because we’re offering that Bank of America structure note that’s going to pay out 13.20% over the next 12 months. And also, you got to have smart tax solutions as well. It doesn’t just stop with smart health. You’ve got to be smarter about your tax situation and what you’re going to be paying in taxes on your IRA. Because, you know, at some point you’ve got to kick the IRS out of your being, your partner and your retirement account, i would think. And we do Roth Ladder Conversion usually between five and ten year Roth Ladder Conversion to minimize the taxes you pay upfront. But once you do conversions, you’re going to kick the IRS out of being your partner in retirement forever on the on those plans. But you’ve got to do it the right way. And yes, there are you know, there is some medicine with that. You’ve got to pay the taxes on any conversion you do within that year. But and you’ve got to wait the five year waiting period. On opening up a Roth IRA account if you’re doing contributions or do the five year waiting period on each individual conversion. But a Roth IRA ladder conversion is a really good idea and you just got to reach out to us at Active Wealth. Click that, schedule a consultation button in the upper right corner and you’ll get booked directly into my calendar.

Ford Stokes:
When we come back from the break, going into segment four, we’re going to talk about the undervalued tech stocks and what that means to you from an investment perspective. We try to be very specific here on the Active Wealth Show. We don’t just stay conceptual. We try to avoid the repetitive information that you might get on other financial shows. And we’re going to give you a really great update from Arturo, our chief investment officer, that he came out with on April 27th talking about. Tech stocks and what’s going on and how undervalued tech stocks are right now, because we’ve got a macro correction that’s going on with within the macro environment. And I hope you enjoyed that segment, that news article from Matt McClure that talks about drug prices and how you need to get a plan for your Medicare Part D plan. Which is obviously the drug plan. So I hope this has been edgy. This show’s been educational for you already, and we’ve still got one more segment to go. But when we come back from the break, we’re going to be talking about how undervalued tech stocks are. Give you the actual metrics and measurements on that. And we’re going to talk about more about what you can do with the structured note. And we’ll have a final countdown in segment four as well. You’re listening, Active Wealth Show, right here on AM 920. The answer.

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.

Producer:
Listen to the number one show on the weekends on AM 920. The Answer To Protect and Grow Your Hard Earned Money The Act of Wealth Show with Ford Stokes. You’re Chief Financial Advisor Saturdays at 12 noon and Sundays at 11 a.m.

Ford Stokes:
And welcome back, Activators, the Active Wealth Show and Ford Stokes, your chief financial adviser. I’ve got Sam Davis, our executive producer, with us, and we’re here in segment four. Man, this show is going fast. It has flown by Sam, and we’re now going to give the folks what they’ve been wanting to kind of learn a little about what’s going on in the market, what’s going on with tech stocks right now. So Mark Diorio, our chief investment officer, sent out an alert on this and I wanted to at least share it with you. So the day to day market noise can distract investors from maintaining a disciplined, long term view of their investment portfolio. With the sharp sell off in tech stocks, individual tech stock valuations are starting to turn favorable for long term investors. A year ago, only 15 technology stocks were considered undervalued relative to an estimate of their fair value, as rated by Morningstar. Today, that number is up to 69 technology stocks representing a rather large and growing list of stocks. While the market is currently in a sell off driven by a challenging macro backdrop with Russia invading, invading Ukraine inflation. And also what I would say is the Biden administration is a headwind as well. It often swings too far. Short term traders become too concerned with the day to day movements in stocks and forget about the long term opportunities or valuation. When stocks decline and valuations turn favorable, forward, returns improve and ultimately accrue to discipline long term investors. What that means is you really need to stay invested. You’ve got to be there when you have those large, big days where we have large growth days. And the highest performing days. So it’s remarkable to me that there are 69. Technology stocks that are undervalued. Sam, it is just really remarkable to me.

Executive Producer Sam Davis:
Yeah. And, you know, those tech stocks can be among the most volatile when you see those shifts up and down. But you’re right, if you’re there during those biggest up days, that’s where you really see a big percentage of that gain.

Ford Stokes:
Yeah. You just don’t you don’t want to miss the top three trading days of any year, because generally that is that represents a significant portion of the growth for that market year. I’m not saying a majority, but it is a significant portion of that growth. So you want to be invested, you want to stay invested. Next is let me just tell you a little bit about what it’s like to work with us. So when you come to work with us, what we’ll do is we’ll take all of your statements. We’ll ask you what your income is, your expenses, your monthly expenses. We’ll try to get an understanding of what’s going on with Social Security income for you, whether you’ve turned on income or not. But also, we’ll take your top 35 earning years and that comes from your Social Security statement. And we will and you can get that Social Security statement, by the way, at SSA gov, that’s SSA.gov. And we’ll do a full Social Security maximization report for you at no cost to you. We’re generally able to help folks who have not turned on Social Security income, but you’re going to get a portfolio analysis to understand the risks you’re paying, the fee I mean, the fees you’re paying, the risk you’re taking with your portfolio. Then we’re going to give you a financial plan. Your 95th birthday with your own portfolio currently has nothing to do with us, and then we’ll do one with our recommended portfolios. We’ll also do one with our recommended portfolios, including a Roth Ladder Conversion plan, and we’ll tell you how much money you’re going to save in taxes. Absolutely no cost to you. So to me, if I were listening, I would be like, you know what I need to call for just to get that Roth Ladder Conversion plan because I want to understand how I can save in taxes.

Ford Stokes:
The other would be wait a second for talked about. That structure. Note I want to learn more about structured notes. Then I’m also saying, okay, I want to learn more about this smart financial plan that Ford is talking about. I want to know how I can utilize tactical asset allocation, how I can replace my bonds. Also, how can I generate real retirement income that I can count on during retirement that is tax efficient and fee efficient and also can grow with market like gains without market risk. And that’s that’s a fixed indexed annuity as an example, to replace your bonds, some of your bonds with a fixed indexed annuity. I want to understand that. And then I want to get insight like what Ford just shared with what’s going on with tech stocks. I want to hear all that kind of stuff because, you know, with everything else, it’s with knowledge, there’s power. And I want to do everything I can. To seek more information so I can better invest and protect and grow my money. And if that’s you just reach out to us at Active Wealth, click that schedule a consultation button in the upper right corner and we’re helping you however we can. Again, we’ve got that schedule, a consultation in the upper right corner of Active Wealth.com and Active Wealth Show.com. We’re just really happy to help you. We want to help you. If you’ve listened to the show for a really long time and you’re an activator, we’d love to hear from you. So I’d encourage you to go ahead and pick the phone up and give us a call. But now the final countdown. It’s the final.

Producer:
Countdown. So let’s recap what you may have missed. It’s the final countdown.

Ford Stokes:
So on today’s show, we gave you the jobless claims and that was significantly reduced, which is great news. Our economy is at least rebounding on the jobs front and people are actually working instead of just sitting at home. Next is we talked about additional travel costs and and how to plan for those. And obviously, I’d join Triple A and try to do everything you can to get out there and your sixties and seventies during retirement, because in your eighties, you may not want to travel too far from the hospital or or be away from home. And then we talked about undervalued tech stocks, too. And the remarkable thing that Matt McClure with the retirement radio network shared was if the same increases that happened with prescription drugs happened to oil and gas prices, we would be driving around at $12 a gallon at the pump. That’s amazing. So you’ve got to have a plan for Medicare. And we work with Bonnie Dobbs with Medicare and other red tape. And we can introduce you to her and her team and help you make the right decisions for your Medicare and health care planning during retirement, because that’s going to be one of the highest costs for retirement. Listen. With anything else. Knowledge is power. If you’re going to be a bear, be a grizzly about seeking knowledge with your retirement future. And I encourage you to reach out to us at Active Wealth to schedule that consultation with us and that button in the upper right corner. It says, Schedule a consultation. We’re so glad you’ve been with us this week. Next week, we’re going to go in detail of how to build a smart financial plan that includes smart, safe, smart risk, smart tax, smart income, smart health decisions. And I think you’re really going to want to hear this show next week. So glad you’re with us here on the Active Wealth Show. I hope everybody has a fantastic week and enjoy the outdoors, everybody and go braves.

Producer:
Thanks for listening to the Active Wealth Show. You deserve to work with a private wealth management firm that will strategically work to protect your hard earned assets. To schedule your free consultation, call your Chief Financial Advisor Ford Stokes at (770) 685-1777 or visit Active Wealth. Investment Advisory Services offered through Brookstone Capital Management LLC. Become a registered investment advisor. Bcm and Active Wealth Management are independent of each other. Insurance products and services are not offered through BC but are offered and sold through individually licensed and appointed agents. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
A purchaser should evaluate and understand all of the risks and costs of an investment in structured notes or sns prior to making any investment decision. A purchase of an RSN entails other risks not associated with an investment in conventional bank deposits. A purchaser may not have the right to withdraw his or her investment prior to maturity, or could incur substantial penalties for an early withdrawal if permitted. A purchaser should carefully read the disclosure statement and any other disclosure documents for a structured note before investing. An investment in SNS is not FDIC insured and is subject to credit risk. The actual or perceived credit worthiness of the note issuer may affect the market value of SNS. Sns will not be listed on any securities exchange. Even if there is a secondary market, it may not provide enough liquidity to allow purchasers to trade or sell SNS. As a holder of SNS, purchasers will not have voting rights or receive cash dividends or other distributions or other rights in the underlying assets or components of the underlying assets. Certain built in costs are likely to adversely affect the value of SNS prior to maturity. The price, if any, at which the notes can be purchased in secondary market transactions, if at all, will likely be lower than the original purchase price, and any sale prior to the maturity date could result in a substantial loss. Sns are not designed to be short term trading instruments. Purchasers should be willing to hold any notes to maturity. The tax consequences of SNS may be uncertain. Purchasers should consult their tax advisor regarding the US federal income tax consequences of investment in SNS. If a structured note is callable at the option of the issuer and the SN is called, the holder will receive only the applicable redemption amount and will not receive any coupon payments that would have been payable for the remainder of the term of the SN.

Producer:
Sns are not FDIC insured, may lose principal value and are not bank guaranteed. This material is provided for informational purposes only and should not be construed as investment advice or as an offer or solicitation to buy or sell securities. All data believed to be reliable but not guaranteed or responsible for reliance on this data. Past performance is not indicative of future results, which may vary. The value of investments and the income derived from investments can go down as well as up. Future returns are not guaranteed and a loss of principal may occur. Brookstone does not provide accounting, tax or legal advice. Investors should be aware that ffa determination of the tax consequences to them should take into account their specific circumstances and that the tax law is subject to change in the future or retroactively. And investors are strongly urged to consult with their own tax advisor regarding any potential strategy, investment or transaction. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be either suitable or profitable for a client’s investment portfolio. Historical performance results for market indices generally do not reflect the deduction of transaction and or custodial charges or the deduction of an investment management fee, the occurrence of which could have the effect of decreasing historical performance results, economic factors, market conditions and investment strategies will affect the performance of any portfolio, and there are no assurances that it will match or outperform any particular benchmark. The investment strategy and types of securities held by the comparison indices may be substantially different from the investment strategy and types of securities held by the strategy. Not FDIC insured may lose principal value. No bank guarantee.

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