12.24.22: Audio automatically transcribed by Sonix

12.24.22: 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 Financial Freedom. With your host Safe Money Bob gets set for a full hour of financial information and economic news you can't afford to miss. Bob works hard each day to educate Americans like you on how to reach the Financial Freedom they've worked so hard for. And he can help you too. So now let's start the show. Here's Safe Money Bob.

Producer:
Merry Christmas and happy holidays. Welcome to a special holiday version of Financial Freedom with Safe Money Bob delivering all of your financial trimmings for a successful 2020 year. Thanks as always for tuning in on 107.3 WBCB and don't forget to subscribe to the podcast to listen back to all of our shows at any time Apple, Google, Spotify or wherever you get your podcasts. All right. Coming up on today's program, ways to eliminate RMDs from your retirement. Plus a comprehensive guide on how to rebalance your investments in 2023. So let's all give a warm welcome and say hello to Bob Claus himself. Safe Money Bob.

Bob Loss:
Well, Jim, doing well. Looking forward to the holidays. Family food.

Producer:
Yeah, certainly some great football games this weekend. It's always good when Christmas holiday and the New Year's holiday, they kind of fall on a weekend. It's always kind of fun because it's kind of wrapped around football that we'll see coming up this weekend. All right. Well, complimentary if your listeners to our show Full Retirement consultation, Bob, provides comprehensive conversations at no cost to our listeners. And there's absolutely no obligation. Bob will help you cut unnecessary costs in your IRA 401 K or any other retirement savings account. Bob can also help you with Medicare and maximizing your Social Security. So contact Bob today visit SafeMoneyBob.com.

Producer:
And now for some financial wisdom, it's time for the quote of the week.

Producer:
And this quote comes to us from PJ O'Rourke. Pj says, quote, Christmas begins about the 1st of December with an office party and ends when you finally realize what you spent around April 15 of the next year, which coincidentally April 15th. That is indeed tax day here in the United States.

Bob Loss:
Of course, yeah, you have a great time around the holidays. You may not be doing the planning. You should with either doing Roth conversions, any other deductions you can take. Say you're going to donate to charity during the holidays, your favorite church and so forth. So all of a sudden it's April and you're like, what happened to the first third of the year? And it comes up on your quick. So you want to you want to lose sight of your finances and your in your current situation. So definitely reach out to us at 900 83592861. Leave a message for make an appointment or go to save money by orbcomm and book a call.

Producer:
And one more quote Just because we're in the holiday spirit, this is from Dr. Seuss from How the Grinch Stole Christmas quote, Maybe Christmas, he thought, doesn't come from a store. Maybe Christmas perhaps means a little bit more. All right. Well, important reminders for the end of 2022. Moving on with the show, Social Security, upcoming cost of living adjustment for 2023. According to Szaky Gov, the increase for 2023 will be 8.7%. Now, this is up from last year's 5.9% COLA, bringing the two year increase to 14.6%. This is the Government recognizing, of course, there has been significant inflation and we want to help protect our listeners from that inflation by protecting and growing their portfolios. So again, for more information log on to save money Bob dot com and again Bob, furthermore how can you help?

Bob Loss:
Yes we do a comprehensive initial call again 1530 or 60 minutes free of charge because they just have to go to save money. About.com or call us at 983592861 leave a message and so on. I'll call you back to book a call. We basically looked at your whole situation and then from there, if everything sounds good and you want to move forward, at least with the next step, we'll we'll put your life into a life cycle model and see where we see. We'll see where maybe we can tighten some things up. And if those concepts and ideas sound good to you, then we can go from there.

Producer:
All right. Well, hey, last week's show we discussed RMDs required minimum distributions and kicking the IRS out of your retirement plan. Bob, three ways to execute this. First, let's discuss the role of RMDs and how they affect your financial plan.

Bob Loss:
The government decided at some point they want to get their tax money, so they created this requirement distribution requirement. And basically at some point in your life, which is now 72, it was 70 and one half, you have to start taking your retirement and distributions from employer based retirement plans, traditional IRAs, etc.. They would normally be due on December 31st. However, if you turn 72 or older this year, you basically be able to take those distributions next year and the distributions are generally taxable, assuming your tax bracket puts you in a spot where you can actually pay tax on it. The one exception, as I just mentioned, is when you turn 72, I'll repeat this. When you turn 72, you have until April 1st, the following year. Take the armed and pay the taxes on it. Now that's good. However, you'll have to rmds potentially if you don't spend down all that money to do a Roth conversion that year. So years ago Congress had determined that it would be great, it would be we would give people a three month grace period who start their RMDs or get to that age. But you have to, as I just mentioned, that same year. So it's positive and negative. It's just for ten. It just everything depends on your situation at the time you make these decisions or do something so we can help you manage your distributions in an efficient way. So and one thing to I want to bring up, you want to make sure you take the proper amount and the proper year.

Bob Loss:
If you do not take any distributions or your distributions are not large enough, they'll have to pay 50% excise tax on top of your regular tax, not for them not distributed as required. That's basically the largest penalty that we get charged in the IRS arsenal. So you want to say goodbye to RMDs and divest your IRS, the IRS from your retirement plan so we can help you with Roth conversion. With Roth, you have tax free withdrawals. So Roth contributions are made with after tax dollars. So withdrawals, including earnings, are tax free in retirement. And there's flexibility beyond what you would have normally with a traditional IRA. So unlike a traditional IRA, you're not required to take you're not required to take any RMDs required minimum distributions ever. You basically washed your money whether you funded a Roth IRA or you were able to do Roth conversions. And it's also creating tax diversity. What I mean by that is Roth conversions provide you the ability to diversify your tax liabilities. So it allows you to have access to both tax free and taxable income sources during retirement. We've always talked about having multiple buckets, right? Of your 41k, perhaps an old IRA, which was a41k, have Roth IRAs that you converted, have high cash value life insurance you could tap into various. Buckets to take in all the income you need and potentially have some of them not be taxable when you take them.

Producer:
All right. Well, I hope that clears everything up for everyone, even going back to last week. So if you missed anything from the first portion of today's show and want to catch up on previous episodes, subscribe to the podcast, Apple, Google, Spotify, or wherever you get your podcasts. Coming up, avoiding scams this holiday season How to rebalance your investments for 2023 107.3 WBCB Financial Freedom with Safe Money Bob. We'll be right back.

Ford Stokes:
Chapter three famous people who invested a significant amount of their hard-earned wealth in annuities. Big idea. Annuities are for everyone. Even if you're not worried about outliving your wealth. Annuities are safer for your money than investing in stocks or bonds or simply not investing at all. Babe Ruth, known as the Sultan of SWAT. Babe Ruth came into his glory days during the Roaring Twenties, and his manager was worried that he was blowing through all of his money without putting any of it away. He introduced Babe to an insurance agent from the Equitable Insurance Company, now equitable from 1923 to 1929. The slugger contributed more than half of his salary annually, purchasing between 35,050 thousand worth of annuities each year. The Great Depression hit the country hard. In October of 1929, Babe Ruth was forced to retire from baseball in 1935 due to health reasons. He was unemployed during the worst time in history. But Babe Ruth had his income annuity. It's been reported that he received an income of $17,500 a year, which would translate into an annual salary of more than 290,000 in today's dollars. His famous quote still resonates today. He said, I may take risks in life, but I will never risk my money. I use annuities and I never have to worry about my money. Steve Young. Steve Young was signed out of Brigham Young University into a $40 million contract with the USFL. That was the headline, at least in reality.

Ford Stokes:
Young was given an annuity that would pay out something like $40 Million over the 50 years that followed. Given the fact that some players were not paid for playing in the final season or other seasons of the USFL. Accepting the annuity appears to have been a genius move on the part of either Young or his agent. The annuity payments have lasted longer than the league, and it's safe to say that he's made more money than probably anyone else involved with the league. To be fair, it couldn't have happened to a nicer guy. Even with a large signing bonus and salary, he continued to wear old jeans and drive a 19 year old Oldsmobile dynamic. In addition to outlasting the league, that annuity even outlasted the Oldsmobile car company with a staggering number of pro athletes going broke after they retire. It's refreshing to read stories about players who made smart financial choices. Shaquille O'Neal, one player who's used annuities to his advantage is retired star Shaquille O'Neal, a his 19 year career. He generated $292 million in total compensation. In retirement, he is projected to make as much as $1,000,000,000 from endorsements, even after his career is long over, thanks to a wise agent who made him put $1 million annually into annuities from his rookie year onward. Shaq lives off the income the annuity generates with his endorsement legacy for his children. Shaq scenario demonstrates how pro athletes and other prodigious earners can protect themselves against their own personal spending errors.

Ford Stokes:
Allen Iverson. Nba player Allen Iverson earned $200 Million during his career $155 Million in Salary and 40 to $50 Million in endorsement deals. Iverson ended up going bankrupt because of his overly lavish lifestyle. In a December 2012 court filing, Iverson told the court that his monthly income was $62,500, but his expenses were 360,000. Luckily for Iverson, Reebok saved him from becoming destitute by paying him an annuity worth $2.3 million in 2001. Iverson made a very smart decision that would ultimately save him. He signed a unique endorsement deal with Reebok. Not only will Reebok pay Iverson 800,000 a year for life, they set aside a $32 Million trust fund that he can begin accessing when he turns 55 years old in 2030. Since he divorced his wife in 2013, he will receive half of the trust. Another way that Iverson will be able to protect himself against future bankruptcy is his access to the NBA pension. He is eligible for another 8000 a month. The lump sum of this pension is between 1.5 and $1.8 million. Most pensions are set up with single premium immediate annuities. Benjamin Franklin. When Benjamin Franklin died, he requested that the 2000 sterling he earned as the governor of Pennsylvania from 1785 to 1788 be divided equally between Boston and Pennsylvania. He wanted the money to be dispersed as a legacy 200 years later in the spring of 1990. The balance in the Philadelphia account was valued at approximately $2 million, and the balance in the Boston Trust was about $4.5 million.

Ford Stokes:
This was sometimes called Franklin's IRA. The money in the Boston Trust was invested using a new take on an old idea the annuity using a tax deferred index variety. The money was able to benefit from exposure to stock market growth without stock market loss. This allowed the trustees of the Franklin Institute in Boston to turn an estimated $4,400 into 4.5 million, even while it was paying out an income for 200 years. Beethoven. The social luminaries of Vienna, wanted to keep Ludwig van Beethoven from leaving their country. And so in 1809, two princes and an archduke guarantee the musician a generous annuity. All he had to do was stay in Vienna and compose and perform his music. His benefactors have supposedly been quoted as saying something along the lines of only a man free of worries can create with such genius. Interestingly enough, Vienna also saw its time of economic downturn, and one of the annuities guarantors tried to stop paying Beethoven, claiming financial hardship. Beethoven sued, won and continued to receive his annuity payments. Perhaps this is what inspired the literary genius of Jane Austen, whose character Fanny observes in Sense and Sensibility. People always live forever when there is an annuity to be paid. An annuity is serious business. It comes over and over every year and there is no getting rid of it.

Producer:
107.3 WBCB Financial Freedom with Safe Money Bob coming up, rebalancing your investments for 2023. We'll explain. And if you haven't done so already, reach out to Bob at 908 359 2861. Again that number 908 359 2861. Or go to the website SafeMoneyBob.com and see how Bob can help you reach your Financial Freedom. Right now though we're going to give you a bit of a PSA. There are a lot of scams out there now in 2022, and they're especially prevalent during the holiday season. The Amazon scam, for example, where there are hackers posing as Amazon employees and they will email you or text you saying your Amazon account has been hacked. I actually received an email from Amazon a couple of weeks ago stating the severity of these scams and how to avoid them during the holiday season. So kudos to those real Amazon employees for letting everybody know about these scams and what these people go through to try to actually scam you. But again, the main point here, Bob, is that these scammers are frequently targeting pre-retirees and retirees.

Bob Loss:
Absolutely, Jim. So while many of us will spend the holidays relaxing with friends and family, some bad actors use the holidays to take advantage of people's good spirits. So always keep your guard up. If something doesn't make sense. Don't give anybody any information, no financial information, no Social Security numbers, account numbers, any of that stuff. That information scammers frequently target pre retirees and retirees, and it could be other people as well. But that's primarily who they go after, sometimes pretending they are from Social Security. Another government agency like an online retailer like Jim just mentioned, some fraudsters are calling to verify information about the 2023 cost of living adjustment for people who get benefits. So the adjustment, just remember this power tip. The adjustment is automatic. And the beneficiary does not need to verify anything. So do not divulge any information. Social Security won't ask you to provide information or money to get your benefit increase so the SSA or Social Security Administration will never ask for personal information via email or text. They don't do that. Scammers often pressure you to act immediately, but fear of loss is what they call it, no pun intended, and be suspicious of unsolicited phone calls, emails, mailings from people, companies or other entities. You don't know. Just don't give them any information. If you receive a questionable call, text or email, mailing. Whatever. Hang up or don't respond to report to it. If you want to report to it. Oig to SSA dot gov. I guess forward. Slash. We'll say report.

Producer:
All right, Bob. Well, real or fake Christmas trees, That's the question. It's time for this week's inflation demonstration.

Producer:
Want to know where your hard-earned money is going. It's time for an inflation demonstration.

Bob Loss:
Right. Well, growing up on a farm, we used to go out and cut down cedar trees ourselves. And one year we I guess we cut one. It was just it was like a woolly mammoth tree. And we had high ceilings in our in our living room. My mother was besides herself. We try to lop off the top and trim it. She just wouldn't take it. So unfortunately, that tree, we had to just take it and discard it and go buy one that would fit. But like Jim, like you said, unfortunately, I guess now myself, my wife and my kids, we all get allergies to the to the Christmas trees. So unfortunately, we're using the artificial which somehow is hung in there since they were little. It's sitting up right now in my living room. I'm in charge of getting it out of the attic and into the house and then back into the attic. My wife and children set it up generally and then decorate it, and I just kind of get to look at the lights and enjoy it.

Producer:
And then have to look forward to packing it up. Oh, yeah, the holiday.

Bob Loss:
Season is over. Oh, yeah. That takes Sometimes I'll just hang around for an extra week.

Producer:
What do you have on Christmas? Tree prices being at record highs.

Bob Loss:
So, you know, most increases have been 5 to 15% with some some of the increases have been as high as almost 21% or more. This is according to the real Christmas Tree Board, which conducts marketing and research for the industry. Nearly 21 million live. Think about that. 21 million live Christmas trees will be sold by the time consumers wrap up purchases over the final days leading up to Christmas Day, putting sales on par with last year's strong performance, according to the National Christmas Tree Association. I'm going to review this. I think we mentioned it last week possibly, but if you missed it, here you go. So 33.6 of American households will buy a real or fake Christmas tree. Unlike myself who keeps getting the one I have to hang in there collectively, that is 4.19 billion. So that's an average of $85.59 per real tree and $122.60 for artificial tree. Think about that. That's amazing. It's amazing just for the tree. So you have to plan if you're going to if you need to, how should I say reboot? Either replace the tree that is artificial like I may have to do at some point. It's just another expense if you can. If you can. If you can. Still be happy with an artificial tree and have an artificial tree that will still look good. You can decorate and enjoy the holiday that way. Try to try to use the artificial tree as long as you can. But again, if you're a real tree person, look around. Look at the different vendors that are growing them, that are selling them. Sometimes you can even bargain a little bit where they're still making a profit, but you got a kind of a good deal on the tree and they want to move the trees. So just something to think about when you're when you're buying your artificial or real Christmas tree. Inflation hits has hit that as well as everything else that we need from food to energy as well.

Producer:
All right. Well, again, if anybody has any questions or would like to work with Bob, visit Safe Money Bob. All of his information is right there on the front page. Again SafeMoneyBob.com. This is Financial Freedom with Safe Money Bob the holiday version. We'll be right back.

Producer:
Helping bring you one step closer to Financial Freedom. You're listening to Financial Freedom with Safe Money Bob.

Producer:
Could a recent IRS change actually save you money on next year's taxes? I'm Matt McClure with the Retirement dot Radio Network. Powered by AmeriLife. When you think of the Internal Revenue Service, your mind may very well recall the sting of forking over your money to Uncle Sam or the hassle of preparing your taxes. A recent study by the American Action Forum estimated Americans spent more than $190 Billion. That's billion with a B on tax preparation in 2021. Plus, many economists predict the federal government will have to raise taxes in the future to pay off the national debt. But there's one change the tax man is making for 2023 that could actually mean you'll owe less in taxes next year.

Andrew Pelosi:
How much you save will be relative to your personal situation. So it's not going to be the same for every household, but certainly it could have a nice little savings come tax time.

Producer:
Andrew Pelosi, with Pelosi Accounting and Consulting, recently told Atlanta News First, the IRS typically makes annual adjustments to income tax brackets, but this year they're bigger than usual due to, you guessed it, inflation.

Andrew Pelosi:
Some people will see a savings of perhaps 1000 for during tax time on their tax return. Others might see a little bit more. Certainly the brackets have changed, so

Andrew Pelosi:
Those who are in higher brackets will probably see more savings than those who are in lower brackets. But across the board, everyone's going to see some kind of savings.

Producer:
In short, all tax brackets are going up by about 7% for 2023. That means you can make more money and be in a lower tax bracket than you would be this year. The standard deduction is also going up to the tune of a $900 increase for single filers and 1800 dollars for married couples filing jointly.

Andrew Pelosi:
I mean, look, it's beneficial for everyone, right? At the end of the day, we're all looking to save money and keep more money in our pockets in a time like this where groceries are more expensive, fuel prices are at record prices, every little bit helps.

Producer:
Keep in mind, though, that these adjustments are for money you earn next year in 2023, so you won't actually see the results until you file your taxes in early 2024. So could you benefit from the IRS's new tax brackets? That's a key question to consider as you plan your financial future with the Retirement dot Radio Network powered by Amerilife. I'm Matt Mcclure.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty and how it all could affect your future in retirement? Then tune in to Financial Freedom with Safe Money Bob, to learn how you can protect and grow your hard earned money. Financial Freedom Weekends at 8:00 AM right here on WBCB AM 1490 and 107.3 FM. Protect your hard earned money today and schedule a free consultation now at SafeMoneyBob.com.

Producer:
They say you don't know what you don't know but a growing number of states are trying to fix that when it comes to finances. I'm Matt McClure with the Retirement dot Radio Network. Powered by Amerilife.

Producer:
In high school, students are often required to take advanced math courses like algebra and trigonometry. But for years, the basics of budgeting, bank accounts and savings have been neglected in the classroom. But that seems to be quickly changing. 21 states now require at least some form of financial education before students graduate high school. One of those states is Nevada Governor Steve Sisolak recently told CNBC.

Steve Sisolak:
A great percentage, I think 50 some odd percent of Americans can't cover $1,000 emergency costs if it comes up without borrowing the money. So it tells us that we need to invest more. We have invested $2.5 million from the state into these programs and to make sure that it gets out, we address access and equity so that everybody gets this education. It's not just reserved for the upper class.

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

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

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

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

Producer:
How well are the programs working? Well, it could be too early to tell. Money rates. Dotcom found mixed results in a recent survey, but its authors note that financial education itself is not a quick fix, so with more time results could improve. So how educated are you when it comes to your personal finances and planning for retirement? And are you going to pass down that knowledge to future generations? Those are key questions to consider as our financial lives become more complicated With the Retirement dot Radio Network powered by AmeriLife, I'm Matt McClure.

Producer:
You're listening to Financial Freedom with Safe Money.

Producer:
Bob Welcome back to Financial Freedom with Safe Money Bob 107.3 WBCB to listen to our show every Saturday and Sunday at 8:00 AM right here on WBCB and listen to the show anytime in podcast form via Apple, Google, Spotify or wherever you get your podcast. Also, one more little piece of information. If anyone listening has any questions for the show, please email us and we'll answer your questions right here on the program itself. Is it SafeMoneyBob.com And feel free to pass along any questions, concerns or comments and we'll address on this show. Bob, I'm going to read off a list of Christmas toys beginning from 1910, a little exercise in nostalgia for everybody. Okay. Christmas toys through the decades, the teddy bear in the 19 tens that was derived from President Theodore Roosevelt, who used to shoot a tied up defenseless black bear during a hunting trip in Mississippi. The teddy bear very popular throughout the 19 tens. In the 1920s, the Yo-Yo actually, you know, I used to play with a Yo-Yo as a kid, too. So that was.

Bob Loss:
Popular.

Producer:
Popular even into the eighties and the nineties, quite frankly, the Shirley Temple doll, 1930s, kind of went away after a while. The Slinky in the 1940s, this one I highlighted on the list, Bob, because I have to tell you this slinky, think about all the technology we have today. We can create music playlists on like three or four different apps on our phone on devices people used to play in the 1940s with a slinky, a metal, a piece of metal, a hunk of metal that used to just move down the stairs. I don't know people. I guess it was different back then.

Bob Loss:
People found different ways. I played with this Slinky in the seventies, early, early, late. Let's see.

Producer:
Know you and I did for my friend.

Bob Loss:
Yeah, I had one. Yeah. I mean, to go all the way down all the steps, that was like the goal.

Producer:
Well, the Mr. Potato Head in the 1950s, in fact the Mr. Potato Head sold 1 million units in 1952, if you can believe that. The hula hoop also was pretty popular in the 1950s. They sold 25 million in the first four months, the Etch-A-Sketch, the 1960s that sold 600,000 units in 1960, the Easy-Bake Oven in the sixties. That was very popular, G.I. Joe. Now you look like a G.I. Joe type of guy.

Bob Loss:
Yeah, On the farm, we had all kinds of stuff. Usually I just go out and like, dig a hole or something.

Producer:
And now you dig a hole. Do you put the G.I. Joe members in that hole or.

Bob Loss:
Och, yeah. No barium? No, no. It was good. We had a lot of growing up on a farm, you know, like our entertainment would be like, go out and ride the bike around or like we, we just did our own thing. Like, we actually hardly were in a house, hardly watched TV. There was no electronics, none of that. But I do remember playing with the definitely doing a yo yo, definitely using a slinky and definitely just being outside, like with Tonka Toys, which I'm not sure. I don't think they're on this list, but like Tonka stuff and like being an excavator, that's what we did. And they come in all dirty. It's great.

Producer:
In the 1970s, Star Wars action figures, which I mean, I could argue we're still pretty popular today. In 2022, they sold 40 million units. In 1978, the Rubik's Cube in 1980 sold 100 million between 80 and 83. The Rubik's Cube was pretty popular. It was always that chase to try to figure out how to how to solve this Rubik's Cube, right?

Producer:
Gosh. The 19. Right. The 1990s Beanie Babies. Now, here's what got me about this. I don't know. I haven't had fast food food in about five years, but it doesn't seem like Beanie Babies in the nineties used to. Come with Happy Meals from McDonald's, Right. I don't think that those Beanie Babies or toys like that are coming in Happy Meals anymore. I mean, we really had it good in the 1990s, didn't we? Beanie Babies, They sold 100 million with McDonald's Happy Meals within two weeks. Bob. Not the whole decade within two weeks.

Bob Loss:
Crazy, Crazy. Yeah. When I ordered McDonald's back then, I did not get a Happy Meal, so that's good. And I was in my twenties. Oh.

Producer:
But I'm sure your kids would get Happy Meals and they probably got some pretty cool toys. Maybe a Beanie Baby was one of them.

Bob Loss:
Yeah, I think my kids oh three and oh five, we kind of missed that whole deal.

Producer:
All right, Bob. Well, this holiday version of the program wouldn't be complete without a mention of Apollo eight, the subject of this week in History. It's this week in history. All right. This Week in History. This date, December 24th, 1968, Apollo eight became the first manned space exploration to orbit the moon. Apollo eight was the first crewed spacecraft to leave low Earth orbit for the first human spaceflight, and it reached the moon. The crew orbited the moon ten times without landing and then departed safely back to Earth.

Bob Loss:
Good stuff. Yep. Love history. Love history. Nassau Landing of the Moon. I mean, I was too little to really appreciate it back then. But how far we have come with space travel or the potential for it, it's amazing.

Producer:
That was a big moment in history. It's one of those where you remember where you were and you remember what you were feeling like in that moment when something like this, the Apollo eight, for example, in this event happened.

Bob Loss:
Right. That was a little older. I probably would have. But I remember things like Bruce Jenner and the Olympics, other space shuttle, good and bad growing up, like I was old enough to be kind of. It's cognizant of all those things, but I can only imagine being old enough when things like this were like major, major events, major events. So I'm sure there is going to continue to be more of events like this moving forward just in a different fashion.

Producer:
All right. We'll step aside. Rebalancing your portfolio to start 2023. That's next. 107.3. WBCB We're back after this.

Ford Stokes:
Chapter nine. You can create your own personal pension. Big idea. Using an annuity to create a personal pension helps you create a lifetime income stream, but it also helps you leave a legacy for your beneficiaries. All annuities can create annuity income to supplement the income you need before or during retirement. Those who are approaching retirement are afraid that they will run out of money. But an annuity can help make sure you have income you can never outlive. An annuity can be a great investment for your portfolio, but I encourage you to be careful that you don't overpay for your annuity when you put your money into an annuity. The annuity company will pay you your money back at a date you specify you don't want an annuity company to charge you too much to simply pay your money back to you. I'm confident that leaving a remarkable family legacy is important to you. You likely want to have money left over when you pass away to leave your beneficiaries. The goal of a personal pension is to generate lifetime income with no risk that grows your money and allows penalty free withdrawals. An annuity can create a lifetime income with market like gains and no market risk, while also allowing you to build enough wealth to leave for your beneficiaries when you pass away. Don't give the annuity company fees for doing nothing. We prefer fixed index annuities for our clients that do not have an income rider fee, but you can still create a personal pension without an income rider on your annuity.

Ford Stokes:
If you get an annuity with an income rider but don't utilize the features of that income rider, then you are not getting what you paid for. You are literally just paying the annuity company 1 to 2% each year. You defer annuity using your annuity without receiving a single benefit for that annual fee. This income rider fee will also draw down your account, value or principal, depending on how that index is performing. The growth on your entire account value could be significantly and negatively impacted. Some accumulation focused annuities are built to deliver increasing payments without an income rider. You should consider the features your income rider is providing you before deciding to purchase it as an add on. Make sure you utilize the features you are paying for more ways to get the most out of your annuity. The longer you wait to turn on the annuity, the more you'll receive in annual payments. This is because your annuity will spend a longer time in the accumulation phase, meaning it will spend more time building up your account value. Your annual payments will grow as your account value grows. Believe it or not, you can generate your own personal pension by distributing no more than 5% a year with penalty free withdrawals from your accumulation based annuity policy. Many accumulation annuities are set up to be RMD friendly, so you won't suffer a penalty when you have to take your RMD. It would be silly for you to be penalized for something you are required to do. Annuity companies take this into account by creating products that make taking your RMDs easier.

Ford Stokes:
Inspect what you expect with any annuity. Don't just go with what the annuity agent or advisor tells you. Read it for yourself. Specifically, you should read the annuity illustration guaranteed and non guaranteed tables included within the annuity illustration. Also, please remember that annuity policy is a contract between you and the annuity company. So caveat emptor or buyer beware applies here. Be aware of the annuity you are buying and choose an annuity that works best for you that will help you build a successful retirement and they'll offer you peace of mind whether you choose to generate income through penalty free withdrawals or invest annually in an income rider. Know the consequences of both. This is a decision you will make at the beginning of the investment process. One poor decision here can cost you 1 to 1 and one half percent of annual growth over a 30 year retirement. This could come out to be a significant loss. Educate yourself on your options and the specifics of each option you are considering. Making the right decision up front will save you a lot of frustration in the long run. Also, please remember that if you withdraw too much annually, say 10%, you will run out of money in 10 to 12 years. Make sure that you're working with an advisor who can help you choose the appropriate withdrawal amount so that your money lasts for your entire lifetime. As discussed above, we recommend no more than 5% be withdrawn each year from your account.

Producer:
Welcome back to Financial with Safe Money Bob, if you missed any part of today's show, subscribe to the program in podcast form Apple, Google, Spotify, or wherever you get your podcasts. And hey, be sure to listen to the show on both Saturdays and Sundays at 8:00 AM right here on 107.3 WBCB Hey Bob, I found this list and checked it twice the least and most affordable states for retirees. Dollar figure that fit the state in where $1 million will go the least and most far the last couple of years we've noticed kind of a relocation reset an exodus from some states if you will, some states gaining an influx of new people. So let's discuss. I'm curious, are there any states on this list that we're about to go through and it can go either way that surprise you based off some of the figures? And again, for full context purposes, there were some states that were omitted from this list because they really didn't move the needle all that much. But I'm not sure there are really any surprises on this said list.

Bob Loss:
No, I mean, I reviewed it myself. Hawaii is notoriously high cost of living. New York speaks for itself. California is another one. It's tough. Massachusetts. It depends where you live. If you're near, if you definitely near the cities in those first four states, I think you're going to pay a little bit more. Alaska, you wouldn't think it would be tough, but it is. Maryland is another one. And I know people actually have retirement homes there. For second homes. You know, I'm not sure if I'm actually going to retire there. That's just like their stepping stone down to down South Oregon's another one. Um. Now you're basically looking at Hawaii. You could run out of money. Within 11 years. New York State just under 14, California 15. Massachusetts 16, just over 16. Alaska, 16 and one half. So you could get a sense for this. Maryland, 16, just over 16 and one half. Oregon. Almost 17 years. Connecticut. Almost 18 years in the hamster, just under 18 years. So that's where. Your dollar, your million dollars. Whatever you have will not carry you as far as you probably want. So then when we go into. Again, it's not every single state. These are the ones, I guess, to put on these lists here for our discussion today.

Bob Loss:
Where your money goes, Father. And probably not a lot of surprises here. Mississippi. 25 years. And this is again, how far would your million dollars go? And just in general terms, we're not taking into account Social Security, any pensions, anything like that or taxation of those in those particular states. It's just kind of how far your money will run if you had a million bucks sitting in. An account will say Oklahoma. 24.8. Coming in basically second. Kansas, 24.6. Alabama. 24 Iowa. Just under 24. Georgia. Uh, 23.8 that matches Iowa, Indiana, 23.5, Tennessee, Go Vols 23 and one half, and then Arkansas is 23.4. So any states we mentioned would probably be in the middle, I would say. And you want to know to like where you retire as a pinch, you're going to be taxed. Is Social Security going to be taxed? And again, we can help you with that along with your tax advisor. Just reach out to SafeMoneyBob.com and book a call with me 1530 or 60 minutes or call the office 908 359 2861. Leave a message with your name, phone number, date and time. You called and one of my associates will get back to you to set up a convenient time for us to speak.

Producer:
All right. Well, last week we discussed jumpstarting your new year with a financial checklist, paying off your credit card balances, setting a monthly budget for your retirement, developing a plan to pay off your house. Just a few items there that we discussed further in detail last week. So go back and listen to the show in podcast form via Apple, Google, Spotify or wherever you get your podcasts this week. Rebalancing your portfolio. Bob to start 2023.

Bob Loss:
All right, So here we go. So, you know, as we know, the stock market has gyrations, which means it has its ups and it has its downs. And unfortunately, we have a lot more downs than UPS this past year and 22. Some sectors, even in a down market or a bear market, if you want to call it that, will outperform other sectors and some sectors will underperform. So 22 has kind of been grim for everything, not only almost all the sectors, but most sectors. Bob Morgan, Stock market not doing so hot. It's been pretty brutal on top of the fact the cost to borrow money has skyrocketed, I can tell you. A person with a mortgage license and also handles commercial financing as well as money management and insurance. It's been crazy. The mortgage rates, interest rates on a 30 year mortgage. Talk about the Fed putting the sledgehammer to the economy to curb inflation. I believe we were in the low to mid threes within the last two years and now I just looked and I saw some rates, you know, six, seven, eight, depending on your credit loan to value, all that sort of thing. But related to that, by rebalancing your portfolio. To its original updated asset allocation. You're going to take steps to lock in gains from the sectors that did well. Right. And you're going to purchase shares in sectors that have lagged behind or at a discount and you want to have this occur if you can manually do it during the end of the year, of course, especially if it's in some form of a taxable account and it makes tax sense and risk sense and fee sense.

Bob Loss:
But again, you want to work also not only with a financial advisor like myself, but also your tax professionals. So you don't make any hasty decisions, but you should tip anything that is retirement based and has asset allocation and has multiple subaccounts and options. You should have automatic. I'll say it again. Power tip automatic rebalance at least quarterly. And I recommend having six or seven, maybe even eight. Subaccounts Perhaps you could go ten might be getting a little crazy. But again, also with your retirement money, you should also there should be someone who's a visor with that money at your employer, not just the administrator. But again, that's something we can look at as well. Just can reach out. 908 359 2861. Give us a call. Leave a message with all your detailed information and one of our staff will get back to you to set up a convenient time for us to speak or go to SafeMoneyBob.com. Look at call 1530 or 60 minutes, whichever you prefer. What you're going to want to do too is if you balance your portfolio with a broker. All right. This is a little key. They are likely charging you. And I'm not saying they're all charging you this, but you're going to it's going to cost you something. So it could be up to over 5%. And rebalancing fees, that's not a fee efficient strategy. Right. We want we always talk about mitigating risk fees and taxes.

Bob Loss:
So we recommend your work with someone who has your best interests at heart in mind and look to save you money, not lose more of it, and not necessarily by the investment performance, but by the cost to make the allocations up to date. So basically, again, you can reach me at 908 359 2861. Look at time and someone will call you back to book a time. You can also just go to my website w w w dot SafeMoneyBob.com and use the links to book time with me. Short period. Longer period. Again, I'm willing to spend an hour with you, even if it goes over a little bit and I don't have another call per se right after it if that would be the case. We go through just have a discussion. Just have a discussion about your situation. See where I see opportunities for you and get get your feel as to what it is that you want to accomplish. What where you are, where you were, where you are, and where you want to be. What's most important to you? Is it mitigating risk? Mitigating fees? Mitigating taxes? Mitigating everything? Living a comfortable retirement while leaving a substantial legacy to your family. And depending on the situation, we can work towards accomplishing both goals a comfortable retirement and leaving a substantial estate, or at least leaving a legacy behind you. Because we all we don't just work to spend down our assets and leave nothing. At least I don't to my kids or grandkids.

Bob Loss:
Eventually, perhaps. So again, just rebalancing. Doing it efficiently. Staying on top of your money. We're here to help. Any time you need us, you can always call us. Leave a message within 24 hours unless it's on a Saturday. You will get a callback to set up a call with me, a review, and again go to the website if you like Being online, that's easier for you. Smart money or safe money dot com Bobcat I'm sorry. Safe Money Bob dot com And book a call with us that way and then we can review your situation further, see how we can help you provide a lifecycle model to you. To all our listeners, we will provide you that lifecycle model. I'm not going to show it to you on a screen. And keep it from you and say, Oh, you're not going to get it unless you do business with me or something like that. That's not how we work. You know what? If I can help you in any way and you end up not working with me, for some reason, I gave you value. I gave you a nice snapshot of your situation. And then you have you're better prepared for moving forward. And then if I can ever help you currently or moving forward, then you know where to find me. call 908 359 2861. Leave a message here to help. Yeah, I would say I've got I've got some good good tidbits here, at least things that I think about. So. I would if you would go back, think about and you can even I use the iPhone note app option.

Bob Loss:
Go back through the year and try to just think back from the beginning of the year. Things that you're thankful for. Could be events. It could be gatherings. It could be other good fortune. It could be charities that you were able to help out, donations, donating your time, family time, hopefully spending time with friends that maybe you haven't seen. Just think, think back to all that. I mean, you don't have to put it into a note, but I like putting things into not handwriting anymore. That ship sailed for me. I use these my thumbs on my iPhone and create notes. Or it could be on a computer in a file. Then also, you know, look at where you are now and think forward like, what do I want 2023 to look like? Know, do I want to reduce some of my risk? Do I do I really know where I am with my finances? Is my budget in order? What can I do and who can help me? Who can be a resource? I'm willing to be your resource, but who can help me make me a better version of me? Or say and on paper you want to have a better lifestyle. If you want to have tighter finances, you want to eliminate or mitigate risk and fees and taxes. If that's part of your goal, we're here to help. But just kind of review the do the year in review. They do it on ESPN, I think year in review on SportsCenter.

Bob Loss:
You're in review for sports, you know, and think about to the people that unfortunately are not with us anymore, you know, and just remember the good times with that. But I would say enjoy. I know I'm going to do it. Enjoy your family. Your friends. Being with people, you know, time. The holidays are not about gifts. It's the gift of being together. You know, we took it for granted. Right. And it was pretty much taken from us two years ago. And then last year, for some of us, it wasn't quite the same either. So it's been probably three years since we've had the ability to gather the way we used to in the past. So take advantage of that best you can. Obviously, we talked about mitigating some of the costs during the holidays, so if everyone's too far away, see each other when it's not peak travel. You use the use the use face time. That's what we did in 2020. And last year we're at least able to get our immediate family together for the most part. But just appreciate everything you have. You know, what is it? Appreciate what you've had. And then, you know. Full steam ahead moving forward. I wish everyone safe, happy and healthy holiday season a fantastic 2023. I'll do everything I can to help you. You just have to reach out to me. Give me a call at 908 359 2861. If I could call it Safe Money Bob. And remember, free of charge, you're not paying me anything. Hopefully I can make your life a little better.

Producer:
All right. Well said. Great show this week, Bob. And don't forget, if you missed any part of today's program, please subscribe to the podcast one more time. Apple, Google, Spotify, and listen at any point of the day to previous episodes and of course, to this show as well. Reach out to Bob. SafeMoneyBob.com. See how he can help you with your financial planning. Have a great holiday and we'll talk to you in the New year.

Producer:
Thanks for listening to Financial Freedom with Safe Money Bob. You deserve to work with a financial and insurance expert who can offer proven strategies for protecting and growing your hard earned money to schedule your free no obligation consultation. Visit SafeMoneyBob.com or pick up the phone and call 908 359 2861.

Producer:
Not affiliated with the United States government. The agency does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. Amare AmeriLife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or of the results obtained in the use of this information.

Producer:
Are you concerned about market volatility, rising taxes, economic uncertainty, and how it all could affect your future in retirement? Then tune in to Financial Freedom with Safe Money Bob, to learn how you can protect and grow your hard-earned money. Financial Freedom Weekends at 8:00 AM right here on WBCB AM 1490 and 107.3 FM. Protect your hard earned money today and schedule a free consultation now at SafeMoneyBob.com. Thanks for listening to Financial Freedom with Safe Money Bob if you like what you're hearing, subscribe to the podcast and leave us a review wherever you listen to podcasts. You're listening to Financial Freedom with Safe Money Bob. Visit SafeMoneyBob.com.

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