9.21.22: Audio automatically transcribed by Sonix

9.21.22: 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. Get 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.

Safe Money Bob:
Welcome, everyone, to this week's show. Financial freedom with Safe Money, Bob and I would be Safe Money, Bob. I hope you enjoyed last week's show. If you're able to listen in or go to one of my listen to the podcast. Again, I appreciate the audience. Great. Hopefully you're getting value out of what I can provide you each week, and hopefully whether we work together or not, you get. It makes your life a little better, not just with financial matters and insurance. So this week, what we're going to do? Well, actually, I'm going to share some personal some personal highlight news hot off the presses. So I'm not sure if I mentioned it last week, but we I founded a back in 2011. I founded a charity golf outing. Back then, I can say I was definitely not where I wanted to be and I was feeling a little down. So instead of kind of going into a corner and curling up, I decided to start a charity golf outing for families who have a lot had a lot more things to deal with than I did. And happy to say we had our 11th outing. We missed 2020 because of COVID. I didn't want to get anybody sick at our 11th annual Flemington Moose Lodge 1829 charity golf outing to benefit special needs children in the Flemington Moose this past Monday had 108 golfers tee off a great weather. Everybody had a blast, no injuries, no wildlife was hurt.

Safe Money Bob:
And the kicker of the whole thing well, I'll get to that in a second. So we were able to raise, I believe, somewhere around 19,000 this year, which is not our best, but it's way up there. So with 11 under our belt, we've raised somewhere close to 240,000 for families with children with autism and a lot of other things that prevent them from being able to do the things that a regular kid could do. And probably a lot of times how they will even they will never be able to leave their parents care. So the family, the kids drive around with their mothers or fathers if they're not playing, all the golfers see them. There's a lot of tears because you just see how much it's hard enough raising kids that are healthy. And then when you have healthy kids and a kid who special needs, it's they're super human parents. So to be able to help them and give back to the community, they're always local and they're so appreciative. And, you know, it's just a great feeling. So on top of all that, everyone having a blast, everybody having fun, everybody getting fed well, all that goes with it. Playing around with their buddies and brothers and sisters and wives and husbands. Mr. Seifman Bob here was on the fifth tee with a six iron 160 yards into the wind. A little sun coming at him.

Safe Money Bob:
Hit the pure six iron of his life and hit a hole in one with the ball flying in on the fly. Didn't even hit the ground. So who? Yeah. Yeah. So that just made the day even more special. And everybody coming up to me and texting me, it's on my Facebook. It was insane. So anyway, it was a great day. Keep helping. Help, help, help others. Help themselves. Help people that can't cover things themselves. You know, it's good. It's a good feeling. And I think what goes around comes around. And, you know, it was a great day and I was very drained yesterday. You know, I all it's all I could tell you. So anyway, so this show back to what we're doing here, we're going to go over to five important things to own during retirement. That's going to be a good chunk of our show today. And again, if you want to talk about anything that I mention, don't mention, just want to have a conversation. You can always book a consultation with me. Save Money by ABC.com. There's a calendar link. You can also call my office 9083592861 and leave a message 24 seven And one of my staff will get back to you and help you schedule your appointment so we can have a talk and see how I can help you, or at least give you some guidance. How to call yesterday, driving home from an appointment.

Safe Money Bob:
I actually was on an appointment in person. It's very rare, but I did it so anyway. This person in particular actually inheriting money and an annuity from his aunt, and he wasn't sure how much he would be paying tax on. So I explained to him it's just on the gains of his share from his aunt's annuity, not the whole amount of money. So this guy thought he was going to be taxed on an extra 44 grand and it's only paying tax an extra 15. So. Again, someone I know personally coached with him, you know, whether or not I'm getting the money or not, it's okay. But he has the question. You need help and guidance and I gave it to him. So that's what we do. Also, you can subscribe to my podcast at Safe Money by ABC.com. So if you can't make a show, you want to go back and listen to some of the other shows, maybe particular points I made or mentioned. Feel free to do so. And again, you can always book me free of charge on the web, as well as calling the number 9083592861. So again, you can get a complimentary retirement consultation, financial consultation, etc., if you so choose. And again, you know how to do that. I've just explained it to you. And we'll provide comprehensive plan analysis. Listen to what you want to. Get accomplished and help me try to get that accomplished.

Safe Money Bob:
Let's see. And we also analyze if you have any current annuities, things that I deal with very specifically, I'll tell you how good they are. Not good pros, cons, all that. So you know what you have and what's going on. And you definitely want to know how much you're paying in fees. I touched upon this probably last week in your 41k, your managed money account, your brokerage account, your your your fees inside of a mutual fund you may own. These are things that no one thinks about because they're not really put out in your face saying, hey, you're paying for this. So you've got to be kind of do your own due diligence to figure out what what you're really paying for and is it making sense? You know, is it all making sense? And obviously, Social Security, a big part of planning and also continuing to know where you are in life, whether it be pre retirement during retirement, you know, and as you get much older so that, you know, you're in good shape, you're not running out of money, you know, utilizing all the strategies that you can to maximize your benefits. And again, we'll look at your current situation. I have tools where we look at where you are, where you might be in two years, five years, ten years, plug in whatever returns we want that you're comfortable with, based on what we're looking at, whether it be a bank account, funds, life insurance, annuities, stocks, bonds, whatever, whatever, what have you.

Safe Money Bob:
So we have a good gauge of where you'll be and especially based on fact, if you are actually pulling from those funds, you know, I know how that's going to affect everything while you're trying to maintain and grow your wealth as well. So another point I'd like to make for some reason, you have an advisor, haven't heard from them. They're not you're not really going over things very often with them. You know, whether it be an annual couple year, whatever your plan is, people are different. Some clients I have, they like to go over things frequently. Oh, there's they go online, look at their their contracts. If they have a question, they reach out to us. So it's all good. So whatever each person wants, we can handle. So let's see, where would that take me to now? Because obviously we financial freedom with safe money, Bob. I mean, it's all about being financially free. That not only frees you financially, frees you emotionally, mentally, physical stress. Like it can take a lot out of a person when they're worried about money all the time, you know, and that's not a way to go through life. So anyone we can help. Get to their sweet spot. And it's all everyone's different, their financial freedom. Sweet spot. We want to do that for them. And now.

Producer:
For some financial wisdom, it's time for the Quote of the.

Safe Money Bob:
Week. Quote Spec the best. Prepare for the worst. Capitalize on what comes. That would be a quote from Zig Ziglar. I'm sure many of you have heard of that person. So what I'm going to do now, if you remember a few minutes ago, I touched upon a topic where we're going to go through five important things to own during retirement. So I'm going to go through this next segment, some of these topics, and they'll probably make sense to you and you probably have them, but it's always good to. To review these things. So I'm going to start with something that you probably need to have unless you live in a particular city or small town where you can go to everything easily. You're going to want a reliable vehicle. You won't rely on others to get rides. People will have their own lives. I know people are very generous sometimes saying, Hey, I'll drive you here, I'll pick you up from there. But you want to have your own vehicle, preferably paid off, preferably not too many miles on it, preferably not a lot of maintenance. So that you have access to that. It's important to because if you have to get to and from. Medical appointments, church going to visit your family like you're really going to have somebody drive you there. I mean, I know everybody's getting into this Uber and Lyft stuff, but I don't know for that. I don't think I've ever done that with those.

Safe Money Bob:
And a lot of my clients, they're not really I don't really think a lot of them have access to public transportation like we don't live. My area is kind of rural. I mean, there might be like a thing called the link that some of our elderly population utilize, but mostly because they can't really drive anymore. But for the most part, everyone seems to have their own vehicle. They just maybe not go out as much. They make multiple stops on a single trip, which is great for conserving money regarding gasoline prices and all that, you know, and the environment, consumption and so forth. And then you can always go where you want. So say you want to go eat lunch at a park. So you want to go play bingo at the church. So you want to have lunch with friends at the luncheonette? You just go. You just do it. And then also safety. You know, it's very safe. And you can get yourself in a reliable vehicle where you need to go, especially if there's an emergency, like especially if there's like a couple and one person has something going on medically. Well, maybe you going to call the ambulance. You can't wait for the ambulance, your spouse or sister or brother, whomever is with you. You have a vehicle to get to the hospital. So very important. We want to have a reliable vehicle and preferably one that does not take a lot of maintenance money and you don't have to pay.

Safe Money Bob:
Now, if you're really doing well and you like driving new cars, low mileage leases, you'll always have reliable transportation. You'll have a little bit of expense monthly annually in moving forward. But, you know, maybe you've done enough to be at that point in life where you can do that, you know. So to each, each situation is always unique. So it's how we treat everyone individually to make sure we we hit on the points they want to hit on and get to where they want to go, no pun intended. We're talking about vehicles. Here's a biggie. Probably going to want to own a home. It gives you freedom. I know there's maintenance. I mean, we even figure in that, you know, things like new appliances, updated landscaping, what else you want to replace carpet. You need a place to get painted. You know, you want to update your bathrooms, your decor, furniture, all that should be part of a plan. A lot of advisors and the people in general, too, don't think about these things. Like you'd be surprised if you have longevity in your family and just say you're going to live where you're going to live if you have no mortgage, know how much of the tax is going to go up. We talk about that. How many times are you going to fix the landscaping? How many cars are you going to replace? What appliances are? How long are they going to last? Well, it cost now we can figure it.

Safe Money Bob:
Inflation, not necessarily 9% or 8%, but 3%, 4%. It's kind of been the norm, probably around three, I'd say 2 to 3. So these are all things that you have to consider, especially when you own a home. You don't necessarily want to move in with your children and be a burden. Nobody wants to be a burden. You know, you want to have visits with your family. And I've seen this personally. I've experienced it. You know, when you see your mother taking care home, take care of your grandparents. You know, as a senior citizen herself and seeing how it affects the relationship with your dad because, you know, she had to do what she had to do, you know, and it just took time away from them having quality time. That's my point. And it's also a valuable asset. So. If you own a home, it's kind of like having an extra poker chip. Like, you can always cash that chip in and say, All right, you know what? I'm going to go to some place where the rent's low, maybe out of the area from where you live. And just you have that asset sitting there, hopefully doing something good for you, which is something we can help you with because we always provide us free consultations and you can work with us or take the information and try to take care of it yourself.

Safe Money Bob:
And also safety, you know, as they say, it's no place like home. So I can tell you when I'm in my house, like, it's like my my happy place. I work from home a lot. I hang out on my home a lot. You know, most of my entertainment's from here. You know, I'm not a homebody. I do get out. So don't worry about that. But, you know, it's just it's nice knowing, you know, like they say, there's no place like home. It's true. You know, there's no there's no place like home, even when you go on a great trip, which I can tell you on that note, before I get to the next, the third of the five important things to own during retirement. Heading down to Knoxville, Tennessee, for a little game of football against Florida, University of Florida against the University of Tennessee in Knoxville, probably going to be over 100,000 of my closest friends I've never met. And in that stadium, my daughter is a sophomore there. First time we've ever gone to see her and go to a football game or any kind of function. And she's been there other than coming home for summer break. She's been there since last August. We basically, my wife and I, Beverly, moved her in a quick story, rented a found a rental, Chevy Equinox, packed it.

Safe Money Bob:
It looked like Ricky Ricardo driving on a vacation with Lucille Ball. And I love Lucy, like other than having stuff strapped to the front windshield. It was pretty packed. It's pretty probably pretty hilarious when we pulled up to get gas. And you see my daughter, like packed in there somewhere just as long as she could put her seatbelt on. I was the main thing. So we dropped her off a year ago, August, early August, and then left the car at the airport, flew home, and then last May, flew out there, rented a car, packed her up in a little big thing here, climate controlled storage units. After stuff up, she flew home and my wife and I got to go enjoy Nashville for a few days. And that's a fun place you've ever been there, if you haven't go. But I'll tell you, I think you can only really go for two nights, three nights, maybe two or three days. It's a lot it's a lot tons of great music, restaurants, pubs, all that jazz. So really cool, really cool spot. But again, after every trip, it's always great walking through the door back at home. So so I'm going to go on to the next thing here. Emergency fund. Now you think emergency fund. You know, I'll have one. You might have unexpected expenses. An air conditioner on your house. The heater goes boiler or furnace appliances.

Safe Money Bob:
Back to the appliances. How do you replace the appliance if you don't have any? You can put on a credit card and have a payment. You're going to use the zero interest and pay them your money. And then your money's gone. So. You want to have enough liquidity to cover these emergency expenses and each situation is different based on your living arrangement. Do you own a home or you're renting? Are you responsible for all the appliances? How old is your car? Am I going to need a transmission? Do I have to replace it? You know, I'll go back to some of the areas we covered earlier in the show. So the other thing is you can go. Oh, I want to have three months. I won't have six months. I want to have a year again. Just remember this everyone you you're unique. So if someone else is happy with six months of expenses liquid and there's a lot of places that can be liquid all as you can get to it within like a week or so or two weeks even it's still liquid doesn't mean bank you want help with that obviously book a free consultation call on 9083592861 leaving a message and one of my staff will reach out to you to conveniently set you up on a call with me. We generally have 15, 30 and one hour slots, so whichever you prefer, if you want to just get to know me 15 minutes or 30, you want to get into it a little bit more.

Safe Money Bob:
Our we use the whole hour it's cool we don't know biggie I get a little break to the neck for the next call meeting or what have you webinar and as far as where does an emergency phone have to be? Well, everybody says, oh, savings account, it's one place checking, it's two money market at a bank, hopefully. So your dollars don't go less than a dollar per dollar. And that's a whole other thing. Okay, short term CDs. Fine. No risk. Fdic insured, which I can have a whole nother show on that. But you're making nothing. To nothing. Very little taxable. It's all taxable. You're paying. You're getting taxed on the interest. So you're paying a little bit of interest and then you're getting taxed on top of it, depending on your tax bracket. So many of my clients have overfunded high cash value and including myself, substantial assets that serve as a an emergency fund. They serve as a college fund. You could have retirement income come from it. And, you know, strategically while keeping that insurance benefit in force to some capacity so that you're leaving a tax free legacy to your spouse, to your brothers or sisters, to you nieces and nephews, your kids, grandkids. So an emergency fund can still work for you. You don't have to have your money doing anything.

Safe Money Bob:
I can't stand lazy money. Can't stand it. I still have clients with too much money in the bank, but it's just the way they are. They just like what they have in the bank. So I try to nudge nicely every time I say, Hey, you know what? That might be a little too much sitting there. Why don't we do a three year fixed interest annuity with a guaranteed rate of 4.2 on some of that money that you don't need to have to get at because you have enough to cover any of the things that you're worried about. Item four of the five important things to own during retirement, that's going to be insurance. Now, do I want everyone to be over insured in every way? No. Do you want to have all your bases covered? Yes. So you want to be covered? Biggies. What? Health care. Right. So you come off of your employer plan, maybe you're getting on Medicare A and B, you get your Medigap Medicare policy. So you want to have all that covered so that, again, you're not you're not leaving a drain, a potential drain to your secure retirement because you get sick and you have these major medical bills. So that's something else that's important as well. So you want to cover your bases there because it can do that. And then I'm going to get into right now long term care.

Safe Money Bob:
Biggest factor in whether if you're married and one of you needs to go to a nursing home. You could have a substantial part of your retirement money or assets net worth just disappear because they're going to take it. You know, they're going to say, give me your Social Security check. To the person in the place, in the home. You may have a pension checkup. They may want that to know where you go. I mentioned last week you're looking at like 6 to 12000 a month. And again. I've been doing this a long time. 30 some years, I guess now. Jesus. 33 years, I guess. Plus, they're just about lot. I'm not sure how I got to remember, but anyway, you don't want to. Put yourself in a position where you're leaving your spouse. A couple of things you want to leave your spouse with little to no money and a much lower standard of living. If one of you get sick and there's ways we can solve those problems like you don't don't think I've got to pay premiums for the rest of my life. And if I don't use it, I'm not going to get anything. No. There's different concepts, strategy solutions that we utilize depending on the situation with our clients to. Make the right fit. Know some. They may want to pay money over a certain amount of time. And then, you know what? They don't use it.

Safe Money Bob:
Never use long term care benefits. Still, tax free death benefit paid out others. They'll want to have a type of policy or contract that will grow. Still grow and act as if as a supplement to a retirement cover potential living expenses regarding long term care help medical help that the House will say as an example. You know, you can use life insurance now it's come so far with what's available to you. Single premium set pay a forever. It's okay. They all work in the right situation. There's not one that's not good. Or a good option, I should say. But it has to be put in properly by someone who knows what they're doing. So, again, if I can help you in any way with that. You can always call my office. You can go to my website WW. Save money, Bob. Book time with me. I can also call my office at 900 83592861. And again, you can also utilize annuities. Again, I touched upon this probably before either earlier today or last my last show. You can utilize annuities in many different ways. People think, oh, an annuity, they're going to pay me money. And then if I die, that's gone. No, that's one way you could do it. That's not how we do it. But there's many ways with the annuity annuity availability out there today, the product is so consumer friendly, you can guarantee income and pay no fee for that.

Safe Money Bob:
You can guarantee income that's much better or higher and pay a fee for that. You can still control your asset and grow the asset so that if you don't use you've got a couple of things. If you're married and you pass, you can have it set up where your spouse will get a benefit as well. Similar to some of the pensions out there that you might have or have heard of from friends or family. You can also have an income rider on a contract and let's say you have a half million dollars and you've got a million bucks in a contract. It's just an example. Using it this round and you use up, say, 400,000 of income because you had a guaranteed income option on that, you're still the ability to leave 600,000 say it's just you and you don't have a spouse to your C your beneficiaries probate free and they would just pay gains taxes on gains not on the original lump sum or investment, assuming it's not an IRA. So we're coming up on a break and I'm going to I have one more item to share with you. That would be the fifth of the five important things to own during retirement. So I'll let you think about a little bit. What could it be? What could it be? And then I'll share that with you the other side of the break. So stay tuned.

Producer:
You're listening to Financial Freedom with Safe Money, Bob. To schedule your free no obligation consultation, visit safe money, Bob. I used to be a rolling stone.

Safe Money Bob:
You know, if a cause. Right. I leave to find it. And I'm so on the road.

Producer:
You're listening to Financial Freedom with Safe Money, Bob. Once again, here's Bob.

Safe Money Bob:
Hey, everyone, we're back. I'll give you a quick little review of the first four items we spoke about out of the five that you want to own during retirement. And then we get into some other concepts here that you should find pretty interesting and helpful and definitely help help you with that. Again, I just want to thank you all for listening. And if you want to get one on one with me, see WW Safe Money by ABC.com. You can also call my office 908359286 124 seven and someone will get back to you for my staff and help you book a book, a call with me 15, 30 or 60 Minutes, whichever you like. And again, everything is complimentary. Analysis is complimentary, throwing strategies together is complimentary. And I'm not going to just show you the things I don't think I've said this before. I'm going to show you stuff. We have a couple of meetings and say, Oh, I'm just going to keep it and you've got to work with me to look at it. We don't work that way. So you'll get if it's a fact finder, you'll have a set of it. We'll have a set. If it's a lifecycle model, we'll have yours. You'll have yours. So you'll always have a say results, but you'll always have the topics of discussion or the work we did record of it. So again, most people choose to have me help them with it, but if you decide not to, you still get that same value that we provide people free of charge.

Safe Money Bob:
And hopefully in your own way, if I'm not implementing it for you, it works out for you. So, so far during the show we covered a few things, but I just want to go back over four of those topics that we just spoke about and end to the last segment. So we talked about reliable, reliable transportation, generally owning a car, low maintenance, reliable gives you gives you the freedom to go where you got to go. Owning a home. If it makes the most sense for you, then there's no place like home. And then emergency funds talked about many places that they can sit to be available and then everyone's emergency fund. How fast does it have to get to? It does have to be in a day that to be in a week. I mean, if you have a credit card, credit card and you're able to put something on there because. All right, my fridge just goes, it's three grand. Throw on a credit card. Hopefully you get rewards points, no annual fee to a couple of tips right there for you. And you get your statement and you're like, oh, guess what? At that point, I was able to move money out of, say, my life insurance cash value and I was able to borrow it out. So I borrowed out of my cash value, life insurance. I paid off my credit card, got rewards points, pay any interest, right? No fees, no taxes. Then you're like, you know what? I want to put that money back.

Safe Money Bob:
I'm going to I'm going to do like $100 a month. I have it. I'm not using all my income, so I'm going to take that or I'm going to lose a little bit of money from savings and pay $100 a month back to myself, basically being a ten year Lowes finance. So you become Lowe's finance or Home Depot or wherever you go and you pay yourself back in a day. And I'm touching a lot on this part because it's important you've paid yourself back. Your policy looks as if you never took a loan. So it gets as dividends, still gets its interest, still in force if something happens to you. So it's just one example of what I have for my me and my family and my clients that I could implement for you. So again, if that's if that sounded really interesting to you, call my office 9083592861 and leave a message and we'll set up a time to talk about it or go to WW Safe Money by ABC.com and you can book a call me any time. I mean I have I have availability. I make sure I leave availability so that my listeners can get a hold of me, talk to me and I can help you out. All right. So that was emergency fund. I think we beat that one pretty good. And then insurance, very important part of it. Not going to go through everything again, but just it's insurance is your friend.

Safe Money Bob:
Insurance is an asset. It's not a liability. It's not an expense. All right. Is it a cash flow draw? Can be. It can be. It can also be an investment that appreciates and it utilizes leverage for different things depending on what we wanted to do. So just try to remember that. And these are things we we help our clients implement. And I teach people so you can learn about it. So here you go. I'm curious if anyone's going to get this, but your fifth. Most important thing to own during retirement. Kind of not really a thing. It's. It's important. It's not it's not a tangible thing. It's not reliable vehicle. It's not a home. It's not emergency fund. It's not an insurance policy per se, or an annuity. Your schedule. So your schedule. So even in retirement, you know, work you got oh, I got to do this on this time. And then the next time I have my lunch break and then maybe that's how your day was. You were 9 to 5 person. You did your job, did it well, and you worked eight, 830 to 1230, had a half hour lunch and you worked from 1 to 5. I don't know. That's just one example. But know during retirement it's about enjoying your life because you work so hard to get to this point. You worked your whole life. You probably supported your family, your wife, you had a house, you had kids. In most cases, you may, may or may not have paid for college or help pay for school.

Safe Money Bob:
You save for retirement. You don't have to work anymore. So you want to have the schedule that you want. You want to be able to do things you want as well. Because you don't want to have to go back to work. You don't want to run out of money. Again, it's something we help people with. And you definitely want to watch to sit there watching a stock market and being nervous all the time. Obviously, in these times that we're in now and you want to have you want to have your assets, you know, you can have some risk if that's what you want. I have clients with zero risk. I have clients with some risk. It's their choice. It just depends on their situation. Do they have a pension or not? How much money do they really have? Do they have to really try to make the money work well? There's things you can do to grow your money and you don't have to risk it. You don't have to put it in the stock market. It's not the only place to make money. So just try to remember that. And again, if you're healthy enough, thankfully, hopefully you're healthy enough as you get older. I know if you think about this, just think about this a second. As you get older, you're will most likely travel less unless you're just really healthy. So you don't want to be able to travel and spend time with your family and see this great country or go to other, other countries.

Safe Money Bob:
I still got a lot of places to visit in the United States on my bucket list, so it's going to take me a while before I really need to go out of the country, though my family is kind of pushing for me to take them somewhere in the Caribbean for. A family vacation, which we have not had one for a week straight since probably before COVID to 2019, I'm going to say June. So. So that's important, you know, and I'm working still says my wife. So, you know, you're tired, hopefully. Or you will be. So you want to have a plan in place and we can help you with that so that you can do the things you want to do. Not worry about money, not worry about the stock market, visit your family. Just live the retirement you want to live not only financially, but just your day to day life. I always I always strive to have one thing every day. That I want to do. And makes me so happy. It could be watching a rerun of a sitcom. It could be watching a sporting event. It could be hanging out with a friend on a deck. Beautiful weather, you know, enjoying, enjoying the outside. We were friends and another somewhere else. But just something. Always have something that makes you smile. And I don't know if any of you remember Jimmy Valvano, but I'll tell you, I kind of go by this myself if you didn't laugh.

Safe Money Bob:
Try and think every day, even if it's for a minute, 5 minutes each, whatever. That's a pretty full day. Emotionally, you've had the spectrum. Also, it's really good to give. Thanks. I have found you'll be thankful for your health, your family, friends, thankful for health. Family, faith, friends, skill, positivity and opportunities. And I always tell myself, today's a great day. Make something happen. Oh, no. Today's a great day. Limited opportunities make something happen. Which means help more people. And then that's pretty much it. You know, you just got to be thankful what you have while you're trying to keep moving forward and enjoying life at the same time. So. So there's the fifth and final of the five. Your schedule with my. Other comments and thoughts and feelings on that subject. So even when you're still working, I'm sure many of you are. You got to have some time. I actually blocked time off on my calendar and then I had my work time around it so that I do things, whether it be dinner with the wife, with Beverly, with my kid Danny, my wife and my daughter. Like going on this trip, I'm not going to be I'm not going I have no appointments Friday or Monday because I'm spending time with them. You know, this is our first trip, pleasure trip to where my kid goes to college. So it's important to be a good time. So, yeah, a little game here called right or wrong?

Producer:
Come on down as we test your financial knowledge in right or wrong.

Safe Money Bob:
So we can play along. Just think about these things. Come up with some little tidbits, but we'll see how we're going to call us. So every day until 2030. You may or may not be aware, ten, potentially 10,000 baby boomers will turn 65 and set up seven out of every ten require long term care at some point. So what is what's so big about that? What does that mean? Is it possible? It's probable. Well. If you thought it was probable, impossible, you're right. So it's essential to have a smart health plan in place. So this goes back to Medicare A, B, Medicare SOP, having enough money to cover any out-of-pocket co-pays, deductibles, what have you. Having both a medicare plan as well as your a b. Is important because you want to limit if you can limit is a big point here. So if you can limit your exposure to catastrophic expenses for pennies on the dollar. Would you do it? Would you do it? Would you say, all right, you know what I can put I'm using example. I could I could put 5000 a year into something for ten years. And I will never have to pay another dime. Just as just one example. And. I immediately have what you say, $100,000 benefit. Just using round numbers here. If I die, 100,000 tax free. If I need long term care, I get X amount of dollars a month, whatever, whatever the design of that particular option is towards those expenses.

Safe Money Bob:
Did you pay dollar for dollar for them? No. So. Would you drive your car that's worth $40,000 without collision insurance? Comprehensive. No. What about your house? Got insurance on your house. Are you going to self insure? So if a sandy event happens again or god forbid our area to. Just over a year ago, September 1st, one of the worst hit places in the country. You're going to rebuild your house. Are you going have the insurance company do it? Pretty sure. All of you, if you have a mortgage, have to have the insurance coverage, homeowner's coverage. But if you didn't have a mortgage and you didn't have insurance to cover that catastrophe, you wouldn't do that. So, again, everyone knows insurance. They've used it, whether it be homes, autos. Condos, runners. Boats, jewelry. Personal articles. Very important. If you got pictures of everything with your insurance company and everything's covered, umbrella, God forbid. You know, just a little extra for you. Power tip umbrella. Most people don't have an umbrella policy. If they do, it's like for practically nothing. A million bucks, maybe. Well, with 22 teenage drivers in my house. And. With boat licences to be able to ride wave runners and so forth. I up our coverage, the $4 million because I'm not going to have, God forbid, this major event occur. That's horrible. And then everything we've worked for is gone.

Safe Money Bob:
So. So it's important. I want to bring that whole piece up to put a bow tie on it like I just did. Because everyone has insurance already. You have health insurance? Most of if I have life insurance at work, you're just you're paying pennies on the dollar. Insurance company is the one taking the risk, not you. So let's see. So again. So basically, you probably wouldn't want to have just one, have Medicare A and B and then not have Medicare stop. Or you can have Medicare stuff A and B, so you want to have them probably be tied together. And if you can't pay for something like that and we can set up an annuity, you know, there are different types that can not only provide you income to pay for those premiums, but still allow your money to potentially grow without risk or worry because not the stock market. So I'm going to go over a couple of rules. That we kind of use in our our industry here. And we have the rule 100, which is it's a risk rule. It's what it is. So if I'm 70 years old and. The rule says I should have no more, no more. Doesn't have to be any. But no more than 30% of their money at risk. Anything could depreciate while having growth potential. I came across. I got a referral. Recently. 90 year old couple, they're like 91, 98, 89, 90 from a CPA who refers me, his clients.

Safe Money Bob:
And I looked at everything they had. Out of almost eight or 900,000. I'll top my head. They only had like 50,000, maybe 100 of it was in investments or bank accounts. That you couldn't they couldn't lose their money. And looked at where they were. They were down and the statements are old. If I cut months old, then July was a bump up. I believe August was down. I just talked to another client and she lost another five grand on her money. So that was a couple of percent. But she that money's not with me yet. That's why she actually went backwards because. My clients money doesn't go backwards, stays level, stays the same or goes up. That's it. So if you want to learn about that, how I do that for people, please give us a call at 9083592861 and book time with me and I'll explain how I do those things or go online to save money, Bob. Ww Save money by ABC.com and book time with me and you can share your thoughts and where you're at and I'll explain some things. I'll answer your questions and then we'll see where that takes us. So, so that's the rule of 100. You don't have to have it from 60. You don't have to have 40% at risk. If you're 50. Doesn't have to be 5050.

Safe Money Bob:
You now you're in a great time because there's so many things available to you to invest in that do not have to put your money at risk, but still give you growth potential. And in charge. If there's no fees, it doesn't have to be any fees. You you choose, not somebody else you choose. So let's see here. So one more rule. It's kind of a double rule. I call it rule 72. So if you want to double your money, you divide it by 72 and say, divide it by ten or by the rate of return you want. So let's say I want to make 7% a year, 7.2% a year. Make it easy. I'm good. I like using easy numbers. In ten years, if you earn 7.2% a year, your money will double. So about 100,000 is 200. 204 hundred and 408 hundred and 801.6 mil. 1.6 mil. 3.2 million. So that's the rule of 72. So but again, that is steadfast. You just put the rate of return. You can use your calculator on your phone or what have you and indefinitely figure out where you're going to be as far as an asset. Total net worth and so forth. Let's see here. So here's the thing. Nobody talks about bonds. You know, that's their safe part of their money bond funds. You know, there's still fees involved. There's still interest rate risk involved. The bond can go down if interest rates go up.

Safe Money Bob:
You saw how fast interest rates went up and they're probably going up today or this week. I'm sorry. Whenever the heck the Fed's meeting going to go up another three quarters to 1%. So again if you're problem is so that's great. So let's just say savings rates go to 3%. All right. Inflation is like eight nine. Everything we want to buy is I can tell you, I'm spending 30, 40% more definitely spending 50% more for gas than I did a couple of years ago. I'm paying. I feel like my wife goes. We go. Me, her, my daughter and myself, whoever we pick up food at Costco or Walmart or in our case, Shoprite or Aldi, it's like. The money doesn't go anywhere like we're getting. I'm like, What are we buying? What do we have? Where's the food? I see what the cost is. But, you know, again, fees, interest rate, risk, depreciation of the bond itself, you don't need to do that. You can fix the index. Annuities were made to help with that piece of your puzzle. That piece of your pizza pie, financial pizza pie. So why would you take market risk when you don't have to? Why would you take market risk and potentially even earn what you're trying to earn when you can not have market risk and have growth that you hope to obtain over the course of your life with that particular piece of your portfolio.

Safe Money Bob:
So again, interest rate risk, reinvestment risk. So you're buying bonds. Rates go up, rates go down, rates go down. And what you keep buying the bonds, that's not going to work for you. You know, and main thing is fees. All right. I'm a big guy about fees. Fees aren't the end of the world. The fees do not need to be part of all of your money. Right. Most of the time, you know, even the banks. My God, it doesn't matter what you have in their asset wise, they're going to be charge you like a maintenance fee. They charge you a check in which fee? You know, sometimes there'll be what other fees are there. I mean, it's just crazy. You know, the regular banks, these are regular bank funds. They have to have their fees. They've got to pay everybody, you know, whether they're stock funds, bond funds, index funds, target date funds, all those things, it's it's not necessary. I mean, if you get anything else for me during my shows, you do not need to have all your money at risk or any of it. You can still grow your money. You can have some of your money guaranteed to get X amount of interest, whatever that rate is, depending on the years you want to put your money into something. What the prevailing rates are based on where you live because each state's got different things available to their their citizens.

Safe Money Bob:
And that's just the main thing with this part of the equation here. It's just fixed indexed annuities can be a great tool and a great addition along with multi year guarantee annuities, which provides you with a set rate of return over a set number of years to anyone's portfolio. To anyone's portfolio. I mean, how much better off would the couple I'm just mentioned who are both in their nineties and have multiple advisors be they weren't in the stock market and why the heck would they be in a stock market going into age 90 with almost all their money and they're in variable annuities, they're in the brokerage accounts, they got ETFs, they got funds. It makes they possess all this. I'm like, makes no sense. And then one of them had a recent long term care event. So now they're looking at where they got to sell things that are down to pay the money. So, again, pretty confident this is someone I'm going to be working with soon and I'm going to have to redo everything and set up income and protect the assets, get tax efficient. So because I'm pretty confident based on her age, they probably will not burn through all their assets that I can leave a nice legacy to their children who are probably in their sixties themselves and retired. Good chance if you're 90 years old, your kids could be 65 or 70, depending on when you had them.

Safe Money Bob:
So I would say off of that discussion I just gave you or monologue, we'll call it, obviously, variable annuities can be too hot. There's a lot of fees and market risk fixed annuities could be low. But again for the ultra saved, want to make sure I make an interest on my asset part of your portfolio. Excellent choice. But a fixed and fixed indexed annuity can be just right because not only can you get the growth potential and we're not talking two or 3% here like these, these things have made money year over year. So it's really cool. And again, no risk, no fees. You can have guaranteed income if you want, no fee. You have withdrawal privileges if you need that money, maybe you don't. So all of that's going to be part of the equation there. So again, there's no one thing that's the right fit and perfect fit for everybody that you should always do. It's a combination of strategies based on their goals and what you're trying to accomplish. So again, I welcome the opportunity to speak with you. Ww Safe Money by ABC.com and you can book the time with me or call the office again. 9083592861 and someone will get back to you in book time with me and we'll see how we can help you.

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 safe money bob dot com or pick up the phone and call 9083592861. That's 9083592861. 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. A married life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

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. The Federal Reserve keeps raising interest rates to combat inflation, but how could it affect your retirement? I'm Matt McClure with the Retirement Radio Network, powered by Emera Life. Supply chain issues, the pandemic, energy prices and Russia's invasion of Ukraine have all been contributing factors to runaway inflation to fight rising prices. The Federal Reserve has been using one of its most powerful tools, raising interest rates.

Economics Professor:
So they started increasing the interest rates about, I guess, two meetings ago. So about three months ago when when they had the first increase of three quarters of a point percentage points to 75 basis points, which at that point was the largest increase in about 30 years.

Producer:
Tibor Best is an economics professor at Georgia Tech. He says it's surprising that the August reading for inflation did not see a decrease, especially given gas prices have been plummeting from recent astronomical highs.

Economics Professor:
Inflation is not going to set anybody. We would one would want is hoping for is that these increases start to decrease so that we start getting to levels that are a bit more manageable and more pleasing to the eye. If nothing else, it was very surprising.

Producer:
That's why Bacevich says many analysts now expect the Fed to be even more aggressive with interest rate hikes in coming months. So what does this mean for you? Potentially higher payments on mortgages, other loans and credit cards?

Economics Professor:
Securing any sort of balance on any loan that doesn't have a fixed interest rate? Is it going to become more expensive?

Producer:
Bassett ish says it's important for consumers to cut back where they can to lessen the blow of inflation and interest rate hikes. And if you're in the market for a new home, it could be good to delay the purchase until rates or home prices come back down. So how do the Fed's actions on interest rates affect your wallet? That's a key question to consider as higher costs eat away at your hard earned money with a retirement radio network powered by a micro life. I'm Matt McClure.

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