Misconceptions About Retirement

December 06, 2021 00:47:46
Misconceptions About Retirement
Retirement Results
Misconceptions About Retirement

Dec 06 2021 | 00:47:46

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Show Notes

On this week’s Active Wealth Show Ford discusses the most common misconceptions about retirement as well as:

As a listener of the Active Wealth Show, you can get a financial plan to your 95th birthday completely for free with Active Wealth. Just go to www.ActiveWealthShow.com and click the set an appointment button in the top right corner, or call (770) 685-1777.

Misconceptions About Retirement Active Wealth Show 120321: Audio automatically transcribed by Sonix

Misconceptions About Retirement Active Wealth Show 120321: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
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Producer:
Welcome to the Active Wealth show with your host! Ford Stokes Ford 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, investigate and now your host Ford Stokes

Ford Stokes:
And welcome the Active Wealth Show activators on Ford Stokes or Chief Financial Advisor. And I’ve got Sam Davis, our esteemed executive producer with us. Sam hit him with their greeting.

Producer:
Welcome to the weekend activators the very first weekend of December. Some may say the best month of the year. I hope everyone enjoyed their Thanksgiving holiday and is looking forward to the rest of the holidays to come in 2021. We’ve got a big college football weekend to get things started off in December, so enjoy it.

Ford Stokes:
So we’ve got a really big packed show this week and last week you heard some excerpts during the holiday weekend from my new book Annuity 360, and it is to Sam’s point, a great stocking stuffer. And what you can do is just visit Annuity360.Net and put your information in. You’ll get the digital version, but if you want a free hard copy, we’ll send it to you. And and if you want us to send you extra copies for loved ones, you can always just email me Ford at ActiveWealth.com. That’s Ford at Active Wealth and we’ll get some books out to you. No charge, no cost. You don’t pay postage or anything because we want to help people make informed financial decisions about their retirement income and also about the safe leg of their portfolio. The first thing we’re going to talk about after the market update is we’re going to talk about the seven financial headwinds that you face during retirement. Then we’re also going to talk about what’s going on in this post COVID 19 economy. And then after that, we’re going to talk about all the misconceptions out there that people have about retirement and what to do about them. So this is more about planning for retirement in this segment. This whole show even more than maybe investing and and how to maximize returns and minimize risk and things like that. This is going to be more about planning for retirement and get a real plan for your retirement. I think you’re going to want to. You know, go back and check this show out at ActiveWealthShow.com. This is an important show and it’s important show for you to get all of it so you can always go to ActiveWealthShow.com and listen to all of our episodes anytime you want. All right, so let’s go straight to the market update here.

Producer:
Your Active Wealth market update

Ford Stokes:
Well, jobless claims hit a 52 year low after seasonal adjustments. Jobless claims dropped 71,000 last week to just 190,000. It was the lowest since November of 1969. That drop this week’s jobless claims total 222,000. The 4 week average claims are just over 252,000, the lowest since mid-March 2020 and also Cyber Monday sales dropped by 1.4%, falling for the first time ever. Record breaking e-commerce activity is still expected during this holiday season. The Dow Jones Industrial Average rose to 640 points, or 1.9%, putting it on pace for the best session of the year. The S&P five hundred and the Nasdaq Composite rose 1.5% And 0.86%, respectively. Oil, which entered a bear market, also rose one point five percent. In economic news, the second labor related report of the week again was just talking about how we’re now back up to 220,000. Jobless claims for this week and it was one hundred and ninety nine thousand jobless claims that were filed the week before, which marked a 52 week low in stocks. Kroger shares jumped after the grocer boosted its full year forecast, helped in part by consumers who continue to eat at home.

Ford Stokes:
Boeing shares rose after China cleared the Boeing 737 MAX on Thursday to return to flying with technical upgrades more than two years after the plane was grounded worldwide following two fatal crashes. China is the last major market where the Boeing 737 was awaiting approval after the United States allowed flights to resume in December of 2020. The European Union regulators gave permission in January. Brazil and Canada have also given approval. Apple shares slipped after seeing several days of gains, even amid down market days. And where we want to talk about next. Here is we want to talk about we want to start talking about these seven financial headwinds. No one is just dealing with the COVID 19 pandemic, you’re having to deal with whether you have to get vaccinated, staying at home, but also just a lot of different factors in an economic downturn. And the S&P five hundred lost over 11 percent in March of twenty twenty. That’s one of the seven financial headwinds you’re facing in retirement, just dealing with the post COVID 19 pandemic. World number two is rising inflation. And by the way, last or two weeks ago, we reported that Atlanta is number one and rising inflation in the country at six point two percent last month. That’s remarkable. We’re seeing that increased rents, we’re seeing that and in higher real estate prices, we’re seeing that in higher grocery prices, higher gas prices, et cetera.

Ford Stokes:
So rising inflation is another financial headwind you’re facing during retirement. Number three is. Required minimum distributions, believe it or not, creating downward pressure on the U.S. markets over the next 20 to 30 years, because you’ve got folks who are getting older, you have baby boomers who are taking money out of their IRA, they’re selling it off. They’re paying the taxes, and they’re either having to reinvest it or they’re putting money in their checking account, and they’re using that to live on what that means is you’ve got a huge sell off of the trillions of dollars that are in the U.S. markets that are in retirement accounts. And so you want to be very careful about how you invest and what you invest because they’re they’re forced sell offs. A four or five, six, seven, eight percent, depending on a person’s age, when you turn seventy two years old, which is what the current secure act of twenty nineteen. Prescribed when you when you’re actually meeting your RMD requirement, when you start, when you turn 70 and a half, I mean 70 to it used to be seven and a half. And now at seventy two, you’re literally facing. I just a significant issue where you’ve got all these 72 plus year old folks that are selling their stocks out of their IRA accounts to pay the taxes and to live on.

Ford Stokes:
And so that’s going to create downward pressure because you’re going to have fewer buyers. So you want to be careful about what you invest in and specifically, you want to be careful about the bonds you hold and the stocks you hold. Because when people are selling some of your holdings, the same assets as you hold off, it can affect stock price, right? The number four is we’re up to twenty eight point ninety six trillion dollars in U.S. debt. And let me ask you while you’re driving around going to Home Depot or trying to go to the grocery store or running to a basketball game for your child or grandchild or or you’re headed down to the Benz, the Mercedes Benz Stadium to attend the Georgia football game today and the SEC Championship game. Let me just ask you, do you think taxes are going to go up in the future? If you listen to our president, that’s definitely going to happen if you listen to Congress, that’s likely going to happen. And if you think taxes are going to go up in the future, then we need to do a better job, right? We need to do a better job at planning for our retirement and having money in different tax buckets, not just all in taxable and tax deferred buckets.

Ford Stokes:
We need to try to start getting some of our assets and tax free buckets like Roth IRAs and life insurance. And number five is low CD and market rates. Anybody seeing them, the CD and money market rates these days, a one year bank CD, if you walk into your local Bank of America or Truist or. Or Wells Fargo, you’re looking at zero point zero, five percent on a one year bank CD. That’s crazy. I mean, that is losing ground to inflation if you’re investing in something like that. The number six is rising taxes and financial services fees. If we’ve got rising taxes and we’ve got financial services fees being charged more, whether it’s a higher expense ratio within our portfolio that we can’t see on our statements. Or if it’s higher advisory fees that we do see in our financial statements. We’ve got to be careful about how much money we are throwing away, and also if you’re hearing the sound of my voice and you own a variable annuity, I want you to go ahead and check out. Active Wealth rt.com Click that set an appointment button the upper right corner, and we’re happy to meet with you and do a variable annuity review.

Ford Stokes:
Chances are you’re going to find out that you’re paying between three and six percent in many fees, which stands for mortality and expense fees, or your or you’re facing admin fees or sub account fees because you know a variable annuity is in is a mutual fund wrapped on an annuity chassis. You’d only be spending that kind of money, a fixed index annuity is a much better idea. And so go ahead, pick the phone up, give us a call at (770) 685-1777 and we’re happy to help you and we come back from the break. We’re going to be talking about what’s going on with this post COVID 19 pandemic. We’re going to talk about in the economy itself. We’re going to talk about the last two financial headwinds you’re dealing with as a pre retiree or retiree. And we’re going to talk about all of the misconceptions out there about retirement and what you can do about them. So glad you’re with us here on Amazon. One of the answer? Sam and I are thrilled. You’re with us. We’re here, you’re here. And I know you’re going to come back and be with us right when we come back after the break. You’re listening Active Wealth Show right here on AM nine. Twitter The answer?

Late December, back in 63. Very special time for me,

Ford Stokes:
As I remember. Hey, activators, if you’re looking to learn all the aspects you need to know about planning for a successful retirement, we’ve got a brand new course offered at Mercer University this Monday and Tuesday, December 6th and 7th, from six to eight 30 each night. All you’ve got to do is give us a call. At (770) 685-1777 again, (770) 685-1777 spaces are limited. We’re recognizing safe COVID protocols and we just encourage you to come on out and give us a call to register and come on out to our retire well, reduce taxes and Grow Assets Workshop on Mercer’s Atlanta campus. All you got to do is give us a call at (770) 685-1777 and you’re going to want to call us before Monday at 12:00 noon. All you got to do is give us a call at (770) 685-1777 to register for your spot. To attend our retire will reduce Taxes and Grow Assets Workshop on Mercers Atlanta campus. We look forward to seeing you there.

Ford Stokes:
And welcome back activators on Ford Stokes, the chief financial adviser, I’m joined by Sam Davis, our executive producer, and he’s with us as well. So we’re talking about the seven financial headwinds you’re facing as a pre retiree or retiree. And we’ve gotten through the first five and the first five or the COVID 19 pandemic. We all know what we’re dealing with their post COVID 19, then also rising inflation and then RMDs creating downward pressure on U.S. markets, forcing sell offs of the markets. And therefore, sometimes we have more sellers than buyers for certain assets that are held, and the number four is twenty eight point nine six trillion in US debt that could cause taxes to go up in the future. Also, low CD and money market rates. It was number five where we’re looking at zero point zero five percent on a one year bank CD. It’s like zero point six. Our point sixty five, if you go to Ally Bank or an internet bank on a one or two year CD, but all of that’s not keeping pace with inflation, considering the Social Security Administration gave us, they gave all the Social Security retirees or recipients. I’m not a Social Security recipient, but they gave Social Security recipients a five point nine percent cost of living adjustment. So point zero, five percent on your bank CD from a bricks and mortar bank is a lot less than five point nine percent cost of living adjustment. And I’ll tell you, a lot of retirees don’t think five point nine percent is enough because also their Medicare surcharges went up fourteen point nine percent.

Ford Stokes:
Number six, rising taxes in financial services fees. Did you know that financial services fees and expense ratios actually went higher after 2008 and 2009? You would have expected since it was all their fault on the mortgage derivatives with the home the mortgage crisis in the United States in 2008 and 2009, then they would actually reduce their fees and not over charges. In fact, the opposite happened. So we’ve got to do a much better job at keeping fees down. That’s why in our normal fee is right around between one and a half, two and a half percent. That includes portfolio fee and advisory fees. But that’s why across the board, for our listeners here on the Active Wealth Show, we we provide our financial services as zero point nine five percent. And if you want to take advantage of that before the end of the year, all you’ve got to do is pick the phone up and call us. At (770) 685-1777 again (770) 685-1777 or you just visit ActiveWealth.com and the number seven. The one we haven’t talked about is the potential bond bubble. So did you know that the go forward price to earnings ratio of U.S. stocks is right around between twenty two and twenty three times earnings? But the go forward price to earnings ratio of corporate bonds in the United States get this, folks. It’s a whopping one hundred and fifty. So it’s over one hundred and fifty times the price to earnings ratio of bonds, the p e ratio and bonds.

Ford Stokes:
And so if you don’t think there could be a bond bubble, I would beg you to reconsider and it’s interesting than the safe leg of the portfolio like we talked about. Harry Markowitz was given credit in nineteen fifty two with being the founder of Modern Portfolio Theory. But you know, and he said, Hey, let’s take 60 percent stocks and 40 percent bonds are both traded on the same U.S. markets, whether it’s Nasdaq or NYSE or Amex or whatever. Well, that’s great. But I mean, goodness gracious, you’re talking what happens when you’ve got, you know, the the safe leg of the portfolio is not doing well and it’s got a chance to lose its value. That’s bonds right now. I mean, he said 60 percent needed to be invested in stocks and 40 percent needed to be invested in bonds. It’s hard to believe that stocks are literally seven, six or seven times safer if you look at the two different price to earnings ratios. Then bonds are I mean, it’s pretty remarkable, and so I would I would beg you to consider a bond replacement, and the best way to figure that out is you can also check out bond replacement. That’s bond replacement. We put together a very detailed report about how you can replace the bonds your portfolio with fixed index annuities and generate a retirement income that you can never outlive and also generate, you know, market like growth without market risk. Also, we’ve got structured notes as well as a as a consideration for bond replacement and example.

Ford Stokes:
The one we’re offering this month that closes very soon is our Citibank, one that we’re offering from Citibank, and that’s offering a minimum of nine point eight zero percent over the next 12 months. And it’s got a 30 percent principal protection buffer as long as the Nasdaq one hundred, the S&P 500 in the Russell two thousand don’t lose 30 percent of their volume over the next 12 months. You’ll get paid out of guaranteed interest rate of nine point eight zero percent or more. That’s nine point eight zero is a lot higher folks than than point zero five on a bank CD. Now, I’m not saying these are securities. These are not as safe as bank CDs are on your money, but you’ve got a consideration to generate an exorbitant amount of interest, comparatively. And it’s something to really consider. And so I have to do is just reach out to our office at (770) 685-1777 and we will help you get into our next structured note. Our firm invests between 60 and $100 million a month into the different structured notes, and we also like to do structured note ladders where we take, let’s say you own five hundred and $100000 you want to put into a structured note ladder. We would take twenty thousand a month for the next five months and we would diversify that and therefore diversify your risk. We would diversify it by having five different banks offering the structured notes, five different starting points in the indices, five different interest rates and therefore that diversifies your risk.

Ford Stokes:
Because if one were to go below the 30 percent buffer, let’s say the market went down over 30 percent, as it did in March of 2008. That’s the last time that happened. Then you’re looking at the other four likely wouldn’t go down further than that. And so therefore your principal would be protected completely on the other four and your principal would ride the market on the one that that broke the the buffer level of 30 percent lower on those indices. You’re far better off, though, getting a structured note and having it pay you nine point eight zero plus percent over the next 12 months. Because the interest is still being paid so that those are really, you know, fixed index annuities and. Structured notes are great options for you to go ahead and replace the bonds in your portfolio and just don’t don’t own them anymore. Literally just own equities, fixed the next annuities and structured notes and generate a higher rate of return without as much market risk, with some principal protection on a security like a structured note, but also 100 percent principal protection as long as the company stays in business on the annuity side. So that’s something really to consider, and we kind of promised in the last segment that we would start talking about this post-COVID-19 economy as well. And I want to go ahead and start doing that now. But first, let’s go ahead and talk about our inflation demonstration.

Producer:
It’s time for an Active Wealth inflation demonstration.

Ford Stokes:
So thanks, Sam, for playing that sounder. This is a remarkable inflation demonstration Dollar Tree adjusted their prices to a dollar twenty five on most of their items for the first time in thirty five years. Congratulations, Joe Biden. Dollar Tree has kept their pricing down to a dollar for thirty five years, and in less than one year of you being in office, you jack waggon dollar trees having to go up a dollar twenty five. And if that offended anybody? Too bad our president is is not doing the right things by Americans. And now you have evidence of it because Dollar Tree is now no longer a Dollar Tree than our Dollar Twenty Five Tree. It’s what Obama, the Obama administration called quantitative easement, which is what a fabulous term that is. It’s French for. We’re just printing a lot of money. Let me go ahead and try to plow through some of these on what the economy looks like right now, because many of you probably don’t know. Ok, so here’s some facts that the Brookings Institute said are true about the post-COVID-19 economy. In the second quarter of 2021, GDP returned to its pre-pandemic levels. Number two, the sharp decline in employment in spring 2020 was largely concentrated in the services sector, and that is only partially reversed. Number three is millions of Americans are no longer eligible for unemployment insurance because states said, no, we’re not going to keep paying people to stay at home, which is the right thing to do, especially the southern states led that charge with Florida and Georgia and Alabama, and I just applaud those governors. Number four is the number of job openings and the number of workers quitting their jobs is higher than it’s been in the past 20 years. Number five, is this the number five factor about the post COVID 19 economy? Even with recent jumps in inflation, lower income workers are seeing increases in real wages.

Ford Stokes:
Yeah, we give you credit for that. I mean, we’re really excited that that’s happening. I’m glad that works. But we’ve got significant inflation problems and we also have a huge shortage of workers because we’ve got millions and millions and millions of jobs open. Number six is the post-pandemic income after government taxes and transfers, as well as household savings have been above their recent trends. So that’s good to know. I mean, there’s been a remarkable payoff on credit card debt. That has been unparalleled since stimulus checks have come in. Number seven is fiscal support led to a reduction in poverty in twenty twenty. That’s good. That’s really good. Number eight was to date, 36 states have made progress in catching up on delinquent rent and mortgage payments not near enough, especially for the people who own property and haven’t been able to. Kick out, folks who aren’t paying them. Number nine is the strength in durable goods spending and weakness and spending on consumer services stands in sharp contrast to previous recoveries. Number 10 is retail inventories, especially during the Christmas. Holidays are unsustainably low and No. 11 is. There were more new business applications and fewer bankruptcies in 20 and twenty one than in twenty eighteen and twenty nineteen. When we come back from the break, we’re going to talk about a lot of misconceptions about retirement. We’re here to help you protect and grow your assets. We’re here to help you plan for a successful and fun and enjoyable retirement with peace of mind. It was the Active Wealth Show right around AM920. The answer and come back right away to listen to several misconceptions about retirement.

Ford Stokes:
Welcome back activators, the Active Wealth Show and Ford Stokes for chief financial adviser. I got Sam Davis on the board here, being our executive producer. So we’re talking about the misconceptions, most common misconceptions about retirement, and we’re just going to talk through a bunch of different ones. So no one would be people think their effective tax rate will dramatically decrease once they stop working. Well, it’s not necessarily the case. Your effective tax rate may not dramatically decrease because when you go to replace your income and you’re taking income from your IRA and Social Security, those are your like your top two or you’re taking money from a fixed indexed annuity or from a pension, which would be basically a single premium immediate annuity. That’s the product behind most pensions. You’re looking at replacing your income, but all of that income is taxable because it’s taxable at your ordinary income tax rate for that year. So example, let’s say you’re let’s say you’re making seventy six thousand a year when you’re working, then you retire and you get thirty six thousand a year in Social Security benefit and then you’ve got a million dollar portfolio and you take 40 grand a year out from your portfolio to pay expenses right after taxes. But you’re taking that money out pretax. So you’ve got seventy six thousand in what’s considered ordinary income, only eighty five percent of the Social Security benefit of that thirty six grand.

Ford Stokes:
Would be taxable. Only 15 percent of it’s not taxable. And then you’ve got forty thousand, it’s just taxable at your ordinary income tax rate. So guess what? Your tax rate is about the same. Now granted, I realize a lot of you are out there listening have made more while you’re working than $76000 a year. But that’s just my example. You could double that amount. And if you’re taking out, let’s say you got a two million dollar portfolio and you’re or you’re getting annuity or you’re getting pension money. Then it’s going to you’re going to have to pay the taxes on that money, so just know this. It’s not necessarily the case that your tax rate is going to dramatically decrease. It may go down a point or two, but it’s not going down to the 10 percent level if you’ve been at twenty four percent as an example. Number two is the number two most common misconceptions. About retirement is the people think Medicare covers long term care, it does not. Medicare does not cover long term care costs. People have this idea that government is going to take care of them. You can’t depend on that because it’s just simply not the case. The government’s not going to assume the long term care coverage for everybody. And if you want Medicaid to pay for you to to live and you want to be a ward of the state and you’re only going to be able to have like.

Ford Stokes:
Twenty five hundred dollars in the bank to your name. In assets, so and they do a five year look back to see what your assets were and your and your income as well. Number three is people think that retirement is acquiring is all about requiring one big magic number when in fact retirement is really about income. It’s a huge misconception. You know, it’s great to have a million dollars or two million or three million, but honestly, retirement is more about income. Like we said, you need to make sure that you’re generating retirement income through different tax buckets, whether it’s a taxable bucket with, you know, a transfer on death account, an investment account or whether it’s tax deferred. Investments with an IRA, a Sep IRA. A four or three, b, a four point fifty seven A for one K or simple IRA. That’s tax deferred, and the other would be tax free, which was it’s not done deal to include. Municipal bonds, I mean, municipal bonds are are tax free for most stuff, but they do contribute to Social Security taxation and also Medicare surcharges, so. You know, municipal bonds are not really considered truly tax free. But Roth IRA is and life insurance are and if you don’t have either one of those, then I would encourage you to visit ActiveWealth.com and we’ll give you a free financial consultation.

Ford Stokes:
That’s a five to fifteen hundred dollar value. Let me give you a Christmas present today. All you’ve got to do is reach out to us at ActiveWealth.com, you can send me an email at forwarded Active Wealth and you can click that set an appointment button the upper right corner. You can pick the phone up and give us a call in our office. At (770) 685-1777 seven seven zero six eight five one seven seven and we’re happy to help you. But we give you a free portfolio analysis, we give you a free Social Security maximization plan, we give you a free financial plan, your ninety fifth birthday and we give you a free Roth Ladder Conversion plan as well. We do all of that on the front end so you can make an informed financial decision about your financial future. So again, we would encourage you to pick the phone up and call us. At (770) 685-1777 to get your free. Fifteen hundred dollars holiday gift from Ford Stokes in the Active Wealth team and you’re going to meet just with me, you won’t meet. We’ve got other advisors in our office, but if you’re calling off the radio, we’re going to be here and help you. The number for. I’d retirement misconception is people think all seniors receive the same Social Security benefit, in fact, Social Security benefits are generated based on your top thirty five years of earning what we call your top thirty five earning years.

Ford Stokes:
So the more average income you have made during your top thirty five earning years, the higher Social Security income benefit will be. So it’s absolutely not true that everyone receives the same benefit. Number five is the number five misconception about retirement is people think they’re stuck with the same Social Security benefit, they’re not. You can appeal things, but also you’ve got things like cost of living adjustments like the five point nine percent that’s coming in this year for next year. You’re looking at a much five point nine percent higher income benefits. So it’s not the same. It doesn’t stay flat, which is good news. The number six misconception about retirement is people think that taxes will remain flat during the retirement years. If you don’t think taxes are going to go up in the future, you’re entitled to your opinion, I just think taxes are going to have to go up because we’re going to pay for this twenty eight point nine six trillion dollars in debt. And by the way, I two years ago, I used to do a lot of seminars at major universities here in Atlanta, including Mercer University in the Atlanta campus, and we’ve got a new one coming out on December 6th and 7th.

Ford Stokes:
And if you want to join us for our five hour course at Mercer University, all you have to do is call Deborah and our team at (770) 685-1777. I would encourage you to reach out to Deborah today or, you know, or Sunday or Monday, because bases are filling up on that one. A lot of people were all vaccinated. We’re all practicing safe guidelines, but a lot of people are wanting to get out and learn about what’s going on in this pope post COVID 19 pandemic economy and how they should be invested and how they can get more tax diversified. And what’s the best way to implement a Roth Ladder Conversion or to invest in, you know, into indexed universal life policy and things like that that can help them out. So again, if you want to sign up for our retire well course, which is reduce taxes and grow assets at Mercer University on Monday from six o’clock to eight 30 both nights on Monday and Tuesday this week. So just in a couple of days, you can give us a call at (770) 685-1777 and Deborah and her team will get you signed up for that. Or you can just visit ActiveWealth.com or just send me an email. It’s just forward at Active Wealth and it’s free.

Ford Stokes:
And if you want to inspect what you expect about your retirement and you want all the information that you need to plan for successful retirement so you can have peace of mind during retirement, you can enjoy your retirement, your family and friends, then that course is a great way to go. So the number seven retirement misconception is people believe that Medicare will cover all their health care costs. Believe it or not, Medicare covers only 80 percent of your health care costs. You need either a Medicare Advantage or a Medigap supplement plan to plan for your retirement and replace the co-pays and the deductible payments if you get charged into it. If you get admitted into the hospital, it’s likely that you’re going to owe about sixty one hundred and ninety dollars as a deductible for your certain services you receive from that hospitalization. But if you have Medicare Advantage specifically, if you have Medigap and Medicare supplement insurance, that will cover 100 percent of that now Medigap Medicare supplement insurance, those costs are, you know, one hundred and fifty two hundred dollars a month, but it’s great to cap your costs. So that’s what most of our clients do, and we work with Bonnie Dobbs and Medicare and other red tape. And if you reach out to us at ActiveWealth.com, we’ll get you in touch with Bonnie and she can help you with all of your Medicare needs.

Ford Stokes:
The number eight misconception about retirement is people assume they will die before they’re 90 years old, and the CDC came out with a study that said if both spouses lived to be over sixty five years old, that it’s a 60 percent chance that that literally at least one of them is going to be over 90. So we’ve got to make sure that this money lasts longer. And by the way, guys, I’ll give you a I’ll tell you a secret. The ladies live longer than us. And so you’re going to want to take care of your spouse after you’re gone, don’t you? And if you do, and let’s say you’re a do it yourself and you’ve been investing on your own, I would encourage you to come in to our office and see if we can do better for you. And see if we can plan it out and take care of your wife during her retirement as well, even after you’re gone and number nine, the number nine misconception is when it comes to portfolio allocation, some people will just think they can set it and forget it, and we just ask, Please don’t do that. Please be informed about what you’re investing in. You want to be careful about seeking knowledge, and you don’t want to have systematic and unsystematic market risk negatively impact your portfolio. You don’t want to face really bad secrets of return risk.

Ford Stokes:
You don’t want to face and high expense ratio on mutual funds with 12b one fees and your fees and share share fees and and admin fees and things like that. You don’t want to pay three to six percent on a variable annuity. You want to pay zero percent fees on an accumulation based fixed indexed annuity that doesn’t have an income rider. If you want us to help you with all that, all you got to do is visit ActiveWealth.com. We give you a free consultation absolutely no cost to you because we’re fiduciaries. We’ve got to put your needs ahead of our own, and we want to help you make an informed financial decision about your retirement future. We absolutely do. And we come back, we’re going to talk about this last retirements, conceptual. We’re going to give you 10 total and then we also are going to talk about what’s going on with the new Secure Act 2.0, which they’re calling securing a strong retirement act of twenty twenty one. You’re going to want to hear what your U.S. government is doing. And we’re going to have some great holiday supply chain issues that you want to hear about. It’s kind of entertaining. It’s good, at least know what’s going on out there and the big crowd pleaser. As always, we’ll have our final countdown the Active Wealth Show right here on AM nine. The answer come right back.

Producer:
Jeff, the two of us, we can make it if we try to do the.

And we’ve try to put us to death.

Ford Stokes:
And welcome back activators to segment four of the Active Wealth Show and also salmon, I just want to thank you for making us the number one listened to radio show on the weekends here on AM nine to the answer. This show doesn’t go without you, and we just love our activators up there. And if you’re wondering who an activator is, it’s somebody. Listen to the show. It’s somebody who wants a tax efficient fee, efficient and market efficient portfolio. It’s somebody who wants to protect and grow their wealth so they can build a successful retirement. That’s a lot of fun, and they’re having more, you know, great times with their friends and family. That’s who an activator is, and we just appreciate you activators who are listening to us. We love working with you, and we do this for you. We educate folks. Not everybody that listens to show ends up becoming a client, but a lot of folks do. And we’re here for you and Sam and I just really appreciate you and thanks for making us the number one listen to radio show on Amazon two of the answer during the weekends. And let’s end with this week in history, Sam.

Producer:
This week in history.

Ford Stokes:
In 1965, this week in history, the WHO released My Generation. Don’t try dig what

Producer:
We all say. Gene? John is a big sense.

Ford Stokes:
Love that song, and there’s a lot of who fans out there, they just transcended music, they just did a fantastic job. So kudos to those folks and happy anniversary on the release of the My Generation album. Now let’s get back to the retirement misconception. So the number 10 misconception during retirement is people assume they can handle their retirement planning by themselves, just by themselves. It literally doesn’t make sense to me. When you have a medical problem, you don’t try to handle it yourself, do you, honey? Get out the steak knives and and I’m going to card myself up and take the appendix out? You try to perform. I mean, nobody’s going to try to perform their own root canal or do their own dental implant. I imagine you will cause yourself a lot more pain by going it alone than if you had consulted a financial expert. So I would encourage you to do everything you can to start working with a financial adviser. We’d love the opportunity to help you, and if you want a free financial consultation, that’s a $1500 value. As we talked about earlier on this show, you just visit ActiveWealth.com. You can also send me an email at Ford Stokes at ActiveWealth.com, or you can just give us a call at (770) 685-1777 again (770) 685-1777. And. We want you to do everything you can. To plan for success for retirement, we want you to minimize your fees, and we’ve already talked about it in the show for activators and radio listeners.

Ford Stokes:
We cut our advisory fee down to zero point nine, five percent. Our normal advisory fees were running around two percent. But because you’re seeking information on this radio show about how to properly plan for retirement, that means you’re a great fit for us. And we’d love the opportunity to help you grow with tactical asset allocation. Manage portfolios structured notes that we’ve talked about the structure that we’re offering for December is paying a minimum of nine point eight zero percent. Which is really good, it’s a security, and it carries a, you know, a 30 percent principle buffer as long as the S&P 500, the Nasdaq 100 and the Russell 2000 don’t lose 30 percent of their value. Over the 12 months that you own this structured note, then your principle is protected and you get one twelfth of nine point eight zero plus percent on a monthly basis, but you get paid out nine point eight zero percent if the structure remains in place for the year. These notes also can’t be called for the first six months. A lot of these notes are called in month seven. But when when that happens, you get all your principle back and guess what, you’ve got a great interest rate for six months. And if a structured notes a new type of investment to you and you haven’t heard about that or you haven’t worked with the private wealth manager before, then go ahead and visit Active Wealth.

Ford Stokes:
Com and click that schedule an appointment button and we’re happy to help you. And. I’ll also tell you another secret, because we don’t take brokerage commissions on the purchase of the structured notes at three and a half to five and a half percent. We were able to pass on a much higher interest rate to you because we’re fiduciaries and it’s just an allocation for us. It’s just a way that your money is invested in the portfolio, and our flat fee of zero point nine five percent makes more money as your money grows. So we’re completely aligned with you completely. We want to make sure that hey, as your money grows, our flat fee will pay us more. But our our flat fee, we’re not going to increase it from a percentage perspective. Now let’s go ahead, Sam. I want to bring you back in here. I want to talk about the holiday supply chain issues that we’ve seen out there. I want to get your reaction to some of these. Here’s a list of goods that have been affected in the lead up to the twenty twenty one holiday season. Food Yes. Expect food costs both in restaurant and grocery stores to rise as supply chain shortages continue. Fertilizer shortages have also caused a cascade effect and exasperate of this issue as well. And by the way, the price of chicken tenders is up almost 50 cents a pound. Does that affect your diet there?

Producer:
It absolutely does, and I think everyone that goes to the grocery store has noticed that, you know, usually chicken is one of the cheaper meats that you can get at the grocery store. And now it’s it’s rising and right up there.

Ford Stokes:
Yeah, exactly. Then also carbonated beverages for those Coca-Cola fans like me, also dry ice and packaged goods. Fertilizer shortages have also led to a carbon dioxide dioxide shortage. Co2 is used to give certain drinks to their bubbles, but it also is used in packaged and frozen goods to keep products fresher for longer. Alcoholic beverages, brewers are struggling to find supplies of carbon dioxide. Again, the CO2 shortage is a problem and then gasoline. Average prices in the U.S. are up close to three dollars and fifty cents a gallon for regular gas, and I’m buying premium gas from our Ralphs Ford F-150. And a shortage of gas truck drivers has made this issue even worse and thanks President Biden for closing down the Colonial Pipeline. Thanks to the political move there, instead of making the right move to the country, it’s ridiculous. And yes, I’m being critical of that decision now. Sam, let’s let’s go with 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:
We talk about the seven financial headwinds that include COVID 19 pandemic, rising inflation, armed ease, creating downward pressure on U.S. markets with sell offs, potential rising taxes with twenty eight point nine six trillion dollars of U.S. debt, rising taxes and rising financial services and a potential bond bubble. All those were seven financial headwinds. We gave you kind of an overview of what’s going on in the post COVID 19 pandemic, economic recovery and all the different aspects of that and how it’s different than most recoveries. And we’ve also talked about several misconceptions during retirement and what to do about them. And we gave you some really fun things that are going on with holiday supply chain issues, at least for fun information to have. Remember when you’re planning for retirement, if you’re going to be a bear, be a grizzly. Be aggressive about getting knowledge because with knowledge in anything, it’s power in a situation. We’re going to help you make informed financial decisions so you can build a successful retirement for you and your family. Have a great week, everybody, and enjoy this holiday season.

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 the BCM, 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:
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. 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 project the performance of any specific investment and is not a solicitation or recommendation of any investment strategy. A purchaser should evaluate and understand all of the risks and costs of an investment in structured notes Essenes. Prior to making any investment decision, a purchase of an SDN entails other risks not associated with an investment in conventional bank deposits. A purchaser may not have a 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 statements for a S.N. before investing. An investment, in essence, 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 SSNs. Essence 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 Essenes.

Producer:
As a holder of SNS, purchasers will not have voting rights or rights to 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 Essenes 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 issue. Price in any sale prior to the maturity date could result in a substantial loss. Essenes are not designed to be short term trading instruments. Purchasers should be willing to hold any notes to maturity. The tax consequences of Essenes may be uncertain. Purchasers should consult their tax advisor regarding the U.S. federal income tax consequences of an investment. In essence, if a person is callable at the option of the issuer, in the essence 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 as ins 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 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.

Producer:
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 a 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 either be 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 would 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 the types of securities held by the strategy, not FDIC. Insured may lose principal value. No bank guarantee.

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