11.16.22: Audio automatically transcribed by Sonix

11.16.22: 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.

Producer:
Welcome to Financial Freedom with Safe Money Bob. Thanks for making us a part of your day. On the radio side. 107.3 FM, WBCB You're listening along on the podcast. And of course, a reminder, if you haven't done so already, please subscribe to the show on Apple, Google or Spotify or of course, wherever you get your podcasts, Save Money Bob How are you, sir?

Bob Loss:
Doing well. Doing well Jim we had a great weekend. Had a great week, actually. Both Tennessee and Green Bay actually won a game, which was shocking. So the world might be upside down for a little while. So Green Bay Place tomorrow night and I got to.

Producer:
That's why I felt off this week. That's what's going on? Maybe it was because Green Bay won actually beat the Cowboys last night.

Bob Loss:
Yeah that was something. And I guess they figured out how to play with the team they have. And we had a photo op with my son for his signing day for committing to play lacrosse at Ithaca College. So that was that was fun to participate in and kind of like, Oh, wow, we kind of made it kind of deal. And thinking back to all the games from when he was eight, nine years old, all the way through travel, through high school to this to that moment, it was pretty surreal, a little emotional, as you could imagine. All happy stuff, though, You know, just looking forward to his senior year this spring and what the next chapter holds for him up at up at the Finger Lakes.

Producer:
I'm sure, you know, you're talking to a lot of parents and you probably relate to what they're going through. My father, my mom, of course, they went through that with me as well, that National Signing Day. So that's a pretty cool thing and a proud moment for parents. And it seems like you guys always seem to reminisce about the times when you on weekends, Saturdays and Sundays, waking up early and taking your kids to their respective games for that respective sport. It's it's a fun journey, I'm sure, for parents.

Bob Loss:
Oh, my goodness. Yeah, definitely had our last go around recently and with his travel guys for one last hurrah and they did go through you know, he played great and I was standing next to one of the coaches who recruited him that I had to tell him no. So I don't know if he noticed I was standing there, but we didn't. I was going to say something to him. And I turn around. He was gone.

Producer:
All right. And of course, a quick reminder, Medicare's annual enrollment period, October 15th to December 7th. Time is flying by and you're running out of time again, October 15th to December 7th. And Bob, by the way, I don't know if it's just me or what, but this fall, October through November, I mean, here we are about a week out from Thanksgiving. It's gone by lightning fast and time really is running out on AEP.

Bob Loss:
You're right. Everyone should get on top of that. And you still have until December 15th, I believe, is the date. No, I'm sorry. December 7th. Got that wrong was October 15th to December 7th. So if you haven't already done so, get with your professional or reach out to us and we'll help you out with that. But you definitely got to be set up with the coverages you need That makes sense to you. You can always call our office, of course. 908 359 2861 Leave a message. I'm going to book a call with me and I'll see how I can help you out. And if I have to bring someone else as well who's just doing that type of thing and to help you even further, we can do that. I can also book A Time with Me SafeMoneyBob.com And book a time and I'll we'll have to discuss your situation Medicare enrollment or supplement and so forth and anything else you want to talk about. And we can go from there. So here to help all of you. And again, I appreciate all of you tuning in every week. Hopefully I'm providing value for you. And if and when you're ready, you know where to find me. You can always listen to me on the weekends. Safe Money Bob Financial Freedom with Safe Money Bob Weekends at 8 a.m. on WBCB Radio 8 to 9 a.m. Saturday and Sunday. So hopefully you continue to enjoy the show and tell your friends. Appreciate it.

Producer:
All right Bob well if you've lost money in bonds this year and we expect that you have because The New York Times says that this is the most devastating time for Bonds since 1926. And again, that's nearly I mean, almost 100 years, which is crazy to think about. Then we think it's a good idea for you to consider a bond replacement strategies. Contact us today and let us help let Bob help you delete the fees that you're paying on bonds and stop the bleeding in that portion of your portfolio. So, Bob, let's talk a little bit about bond replacement and investing into fixed indexed annuities.

Bob Loss:
All right. So the old adage was the 6040 model. So people would have securities, say, just for example, in the stock market, let's use $1,000,000 as an example because it's a nice round number. Hopefully you have that or more and hopefully it's not set up like this. I'm going to explain to you. So basically, if you had, say, 600,000 of your million in securities, we'll just say equity type based investments, mutual funds, electronic traded funds, ETFs, stocks, on the other 40% or 400,000 happen to be in bonds. And let's just use a hypothetical example, and this is pretty close. It might be a little lower, but for for argument's sake. Just for our discussion, let's assume you were paying one and a half percent a year over the course of 35 years. So pretty much your your adult life. Let's just say you started. You put this money in there and you were saving over like 35 years. So over 35 years, believe it or not, that little one and one half percent that doesn't seem so bad would have equated to 210,000 in fees over 35 years, and that our average annual performance would have been whether or not that mix. 3.32%. And that's actually what the bonds would have performed at. So in this example, if you had your bond portfolio value after 35 years would be 1.3, three, three and change $1,000,000. Now, here's another example before I give you to the punchline here as far as the total goes. So if you happen to have 600,000 and this is where this whole bond replacement concept comes in, I help implement what my clients. So if you had 600,000 over that 35 years, again in the same type of investment for growth, and then you had a bond portion which was 400,000, but that happened to be a fixed indexed annuity.

Bob Loss:
Your yearly advisory fee for that portion would have been zero. And over 35 years. When I take zero times 35, you probably guessed it, it equals zero. So your average rate of return would have been approximately 7% a year. And with that being said, your your fire. So your bond portion, that was 1.3, three, three and change million dollars would actually be worth four point almost $4.2 Million. So you're looking at a difference of $2.8 million and 210 less, 210,000 less in fees. So that's just one example of what we do for our clients. And again, you can go to save money, Bob, and book a call and we can talk about it. Or go to call me at 908 359 2861. And we have a message. 24 seven. Holidays and weekends. Next business day someone will get back to you by phone, one of my staff to set up a convenient time for us to speak and review your situation and figure out what it is you're trying to accomplish and try to secure your retirement and eliminate, limit or eliminate your risk and your fees. So just part of the complete package we offer to try to help people help themselves. But that's pretty much what happens with a bond replacement. You take the bond portfolio and generally put it into a fixed index annuity, which normally historically will have shown it outperforms that portfolio and can be at no fees, no charges, no costs. So it's a great tool to implement for those that still want to have some risk with a portion of their money.

Producer:
All right, Bob. Well, great work there. Thank you for clearing all of that up. And again, you can contact Bob today. Bob, how do people reach out to you and how can they get your help with with bonds and fixed annuities?

Bob Loss:
So what we would do is I'd ask you to go to SafeMoneyBob.com and book a call with me so that you can have some time with me again. It could be 15 minutes. 30 minutes. I'm willing to give you one hour to start if that's what you like. You know, no costs, no charges, no nothing. We're just going to have a little chat and then from there, we'll figure out how we can help your situation moving forward and how we would operate. Also, call my office at 908 359 2861 and leave a message. 24 seven. Again, holidays and weekends. One of our one of my staff will get back with you only within 24 business hours of the first business day to set up a time for us to talk so we can basically review your situation, see what type of mix you have. You might have a 5050, you might have a 7030. And like I said, with the previous shows, I've mentioned this couple that I'm now working with due to the CPA bringing me in, you know, they probably were worth around almost a million at one point, and now they're probably worth somewhere around 750 because for some idiotic reason, whoever's been handling their affairs has 95% of the money in the equity markets with brokerage accounts. And when they needed money, they even know where to get it. So he asked me and I looked at their things like literally in a bag. I'm going through a bag with statements. Right? Normally it's not like that. But this is just a typical situation for one of his clients.

Bob Loss:
Happened to be very much older and they don't really have the let's say the adult kids aren't really engaging so much with all their affairs. So anyway, we would look at your setup. I have a full fact find gathering appointment with you. I have my executive assistant with us taking all the information down for us while I'm talking to you, asking you questions. You're giving me answers. It's prompting me to ask you another question, you know, based on what your answers are. And then from there, we would set you up with a big, a nice one page life cycle model look. And we review that and we do all this. We do it all virtually. I mean, once in a while we'll meet someone they really want to meet with us. I mean, I do have an office, I do have a conference room, so that's possible. But due to the COVID situation that we went through over the last few years, we've gotten very fluid. You know, we can easily send a link. This is how simple it is, everyone. This is how simple it is. You book a call with me either it's Safe Money Bob dot com Or you call my office at 908 359 2861. Leave a message. Any time can be up at two in the morning. Give me whatever. Someone will get back to you on the next business day. And then from there, once we have our initial call, we can gather all the information. Get on it. Lifecycle model. See where you are now.

Bob Loss:
And then I'll ask you, well, what do you think about this and how's it going? And you're going to have told me this, but I'm going to go through it again with you on the second appointment. And then from there, of course, you're not paying for any of this. There's no charge. And then from there, I'm going to make suggestions. Bond replacement. Guess what? We looked at fixed index annuities. You can look at multi-year guaranteed interest annuities or Micah's, as they call them. Maybe you maybe you want extra income from a PC or portfolio. So maybe we look at something else that just gives you a set income for either you and or your spouse at the same level. But again, we can do all this for you and you're not paying me for it. Like you know how you're paying me. You pay me when you believe in what we went over and it makes sense for you. And you felt like I did a good job and you want me to be your guy. And again, I have teams of people helping me. It's not just me. So you've got, like, an army behind me helping you. And then the other way you can thank me is send people my way. I mean, I've got CPAs or for me, people I've got clients doing business with me over and over. I have clients refer me their friends and family. I have clients whose children who are now adults actually earning money and not being debits, as I like to call them. They need my help.

Producer:
Parents call them burdens.

Bob Loss:
Yeah, burdens, dependents or debits. But either way, that's just how, how, how we operate and how we help people. On top of all the educational webinars, which I have something coming up which I will announce probably maybe a week or two from now. I don't know. We'll see. Maybe I'll share it later in the show. So stay tuned. The end of the show, I have a special presentation that I'm able to host with a I want to say, world renowned gentleman, and he's great and he really knows his stuff. And I think it would behoove every single one of you. To get on that webinar for free. You know, because I'm inviting you to go on there for free. And it will just. Give you so much more information. And kind of pivot off of everything we've been talking about these last few months that I've been able to. Be the on the radio. It'll be on the show with you all listening, which again, I appreciate it. So. But anyway, we'll leave that little. That'll be that little tidbit for later, but.

Producer:
All right, Bob. Well, you know what? Let's get back to basics and let's discuss the rule of 100 and what the rule of 100 states.

Bob Loss:
All right, So. Rule 100. It's a basic rule. It's a lot of rules in the financial. Area that we've kind of stood by for many, many, many years, even before I was probably even practicing any kind of financial services. So it's called the rule of 100. So the general. The gist of this rule is this. So you're 100. You take 100 as a number. Let's just say you can do a Dannon yogurt commercial or something when you're 100. That used to be the old commercial for Dannon Yogurt and yogurt. And you can live to 100. So then you subtract your age and then that should generally mean the percentage of risk or the percentage of your portfolio that you would actually put into something that could go down. So example and again, 6040 always seems to be the example we use so we can use it here or might even use a different one as well. So let's go to 64. That means 40% should be should be at risk per se. So if you're 60 years old, you take 100 -60. The number is 40, which means, again, you should have no more, no more. And you could do less. Doesn't mean you have to do 40%, but you would have no more 40% of your assets in. Anything. I know you're going for growth with that piece, but it can go backwards. It can go down.

Bob Loss:
So you don't want to have too much of that pie into that piece. Now, I have another example here. So let's just say you're 30 years old. Young, young person, right. So you're taking 30 from 100. Was that 70? So in that situation, it would be taking you'd consider taking 70% or more of your assets and putting them into growth oriented equity type positions because you have time Z time when you invest in things that have a higher growth potential and risk attached to them. Time is your friend. As you get older and you have less time to recover, I mean, just imagine retiring in 2020. I saw people retiring in 2020. They're all done at the end of 2019, in December, right? No, this is great. And then COVID hit and then their portfolio goes down 15, 20, 25% because they is conservative as they could have been, didn't, didn't, didn't protect anything. The most conservative portfolios I saw were down 15%. I believe it was the end of March 3rd or fourth week of March, if memory serves. So again, younger, more time and be more aggressive, older, less time. We really can't afford to lose money because you have time to make it up. On top of that, if you're drawing from it, that's even worse. So let me give you another example here while I leave you with that.

Bob Loss:
But I mean, again, if investing during retirement involves managing risk, so that's why I love annuities. We love annuities. These were invented for that purpose. Your money is 100% protected and provides you an income when you so choose to turn it on that you can count on every month if that's how you set it up. Like it's like clockwork. It's going to happen as long as the batteries don't run out and your clock, it's tick, tick, tick. Well, as long as you set up a proper plan and have a proper income plan, your income won't stop from that particular investment. So it's a very important point. And I want you to keep in mind to this. This is important. It's not a power clip. But it's important. Many dividend stocks. We have cut dividends and some have raised but many have cut dividends during the COVID 19 pandemic. If you have investment properties, I do. Myself, rental income, it's not guaranteed. It's not guaranteed. And during the pandemic, many renters, you couldn't evict anybody. You weren't allowed to. But if they didn't pay you, then what are you supposed to do? You're paying the mortgage yourself if you have one, or you're paying the taxes or you're paying the maintenance or you're paying insurance with that rental income that you may happen to rely on as part of your overall income plan isn't.

Bob Loss:
I mean, it's good to have it, but you have to have other income that's guaranteed and it goes right back to the insurance companies. Their portfolio of of annuities that are available to you. There are so many great options out there. Now, I can tell you being I've done this since I was 23 years old and I'll be eight to say at 56 in a couple of months. There's just so many options you can take or choose to implement into a plan. However much you want to be spread across a bunch of different options and you have no risk. You could have some risk. You could have half an half risk, whatever amount of risk. Here's the thing. When you work with me, you save money, Bob, and you book a call at Safe Money Bob. Or call 908 359 2861 and leave a message 24 seven. You have the opportunity. These are all things we can discuss. I mean, you don't have to risk a large sum of your money. You can risk some if you so choose. And I have people to help with that piece too. So we have like I said, it's not just me. I have a team of people depending on what the situation is and what what ends up being your most important goal or need that can help me help you get to where you need to go.

Producer:
All right, Bob, Well, we're going to step aside coming up. What the heck is going on in the crypto world? We'll break it down for you. But as we go to break, let's take a listen to Chapter 15 of Ford Stoke's book, Annuity 360, talking about bond replacement with fixed indexed annuities, which we talked about earlier on in the show. And of course, you can get a copy of Ford's book today by reaching out to Bob at 9083592861, WBCB 1490 AM and 107.3 FM Financial Freedom with Safe Money Bob. 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.

Ford Stokes:
Chapter 15. Bond replacement with fixed indexed annuities. Big idea. Historically, bonds have seen volatility when the market is volatile. Fixed indexed annuities are not subject to the same volatility, which makes them a much safer investment. You might have heard a financial advisor talk about replacing your bonds with annuities to protect your wealth and grow your retirement funds. Am I firm active wealth management? We believe this is a smart way to protect your future. Many people have learned that bonds are a safe way to invest your money, but there are some downsides to bonds that should make you think twice. We'll talk about some reasons why you should consider replacing your bonds with annuities. First, here's some information on the history of bonds in the United States. Historical bond volatility. The 1900s saw two secular bear and bull markets in US. Fixed income inflation peaked at the end of World War One and World War Two due to increased government spending. The first bull market started after World War One and lasted through World War Two. The US government kept bond yields artificially low until 1951. The long term bond yields were at 1.9% in 1951. They climbed to nearly 15% in 1981. In the 1970s, globalization had a huge impact on bond markets. New asset classes such as inflation protected securities, asset backed securities, mortgage backed securities, high yield securities and catastrophe bonds were created.

Ford Stokes:
Early investors in these new asset classes were compensated for taking on the challenge. The bond market was coming off its greatest bull market coming into the 21st century. Long term bond yields declined from a high of 15% to 7% by the end of the century. The bull market in bond showed continued strength in the early 21st century, but there is no guarantee with our current market volatility that this will hold. See Chart 15.1 To see the incredible difference of investing in a fixed index annuity versus investing in bonds. Why you should consider replacing your bonds with annuities. The first question you should ask yourself is this Why would you take market risk with your bonds when your bonds can lose their value? If you just look at the history alone, you can see how uncertain the future of bonds is. Inflation and fluctuating interest rates play a big role in bond yields. Interest rate, risk of bonds, bonds and interest rates have an inverse relationship. When interest rates fall, bond prices rise due to the COVID 19 pandemic. Investors have moved their money to bonds because they believe it is a safer investment option. However, this has caused bond yields to fall to all time lows as of May 24, 2020. The ten year Treasury note was yielding 0.64%, and the 30 year Treasury bond was at 1.27%.

Ford Stokes:
Reinvestment risk of Bonds. This is the likelihood that an investment's cash flows will earn less in a new security. For example, an investor buys a ten year, $100,000 Treasury note with an interest rate of 6%. They expect it to earn 6000 a year At the end of the term, interest rates are 4%. If the investor buys another ten year note, they will earn 4000 instead of 6000 annually. Consider the possibility that interest rates change over time when deciding to invest in bonds. Systematic market Risk. This refers to the risk that is inherent to the market as a whole. It will affect the overall market, not just a particular stock or industry. This can be unpredictable and it is impossible to avoid. Diversification cannot fix this issue, but the correct asset allocation strategy can make a big difference. Unsystematic Market Risk. This type of risk is unique to a specific company or industry similar to systematic market risk. It is impossible to know when unsystematic risk will occur. For example, if someone is investing in health care stocks, they may be aware of some major changes coming to the industry. However, there is no way they can know how those changes will affect the market. There are two factors that contribute to company specific risk business risk.

Ford Stokes:
There are two types of risk, internal and external. Internal refers to operational efficiency and external would be similar to the FDA banning a specific drug that the company sells. Financial risk. This relates to the capital structure of a company. A weak capital structure can lead to inconsistent earnings and cash flow that can prevent a company from trading reduced advisory fees. Investors who trade individual stocks may know how much commission they are paying their broker, but individuals who buy bonds often have no idea what type of commission they are paying. Bond dealers collect commission on bonds they sell called markups, but they bundle them into the price that is quoted to the investors. This means you are unaware of. How much commission you were actually paying. Standard Poor's estimates of bond markups is 0.85% of the value for corporate bonds and 1.21% for municipal bonds. However, markups can be as high as 5%, up to $50 per bond. Bonds have finite durations. Bonds only provide income for a finite amount of time, unlike an annuity which provides income for life. You must reinvest your money if you want to continue generating interest with bonds. However, reinvesting with a bond can sometimes come at a loss, as we discussed above. Annuities will provide you with an income you can never outlive.

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 a.m. right here on WBCB. AM1490 and 107.3 FM. Protect your hard earned money today and schedule a free consultation now at safe money. Bob dot com. SafeMoneyBob.com

Producer:
I'm Matt McClure with the Retirement Dot Radio Network powered by Amerilife. If amusement parks are your kind of thing, roller coasters can be fun. But when it comes to investing for retirement, not so much. One of the most volatile investments around is cryptocurrency. That means, sure, there's some potential upside, but is it worth taking a ride on the crypto coaster? First, What is crypto anyway? The website Investopedia defines it this way. A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities. Bitcoin was the first such currency out there, so it's been the most talked about and faced the most scrutiny. Like anything in life, crypto has its advantages and disadvantages. While it offers a faster and cheaper way to transfer money, its value is highly volatile. The technology has gotten some blowback from both sides of the political aisle. One of the most vocal critics has been Democratic Senator Elizabeth Warren of Massachusetts.

Elizabeth Warren:
Unlike, say, the stock market, the crypto World. Currently has no consumer protection. None.

Producer:
Republican Senator Pat Toomey, ranking member of the Banking Committee, who generally supports the industry, also acknowledges there are issues with crypto.

Pat Toomey:
Now, it's important to note that many people have raised legitimate issues about cryptocurrencies. These include their use in illicit activity and the possible effects on monetary policy and our existing financial infrastructure.

Producer:
But what do big time investors have to say about cryptocurrency? Here's Warren Buffett speaking at a recent Berkshire Hathaway shareholder meeting.

Warren Buffett:
Now, if you told me you owned all of the Bitcoin in the world. And you offered it to me for $25. I wouldn't take it because what would I do with it?

Producer:
Still, cryptocurrency has legions of fans who swear by it and enjoy riding the daily roller coaster. So are you willing to risk your hard-earned and hard saved money in a volatile cryptocurrency market? That's a key question to consider as you invest in your future. With a Retirement Dot Radio Network powered by AmeriLife, I'm Matt McClure.

Producer:
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.

Producer:
Welcome back to Financial Freedom with Safe Money Bob. You just heard a vignette from Matt McClure talking about caution with crypto and of course the story that rocked the financial world this week. Let's play this clip from Charlie Munger and Warren Buffett also discussing crypto.

Charlie Munger:
In my life I try and avoid things that are stupid and evil and make me look bad in comparison with somebody else. And Bitcoin does all three. And it's stupid because it's very likely to go to zero and saying this is evil because it undermines the Federal Reserve system and the national currency system, which we desperately need to maintain its integrity. And third, it makes us look foolish compared to the communist leader in China. He was smart enough to ban Bitcoin in China.

Warren Buffett:
If the people in this room owned all of the farmland in the United States and you said for a 1% interest in all the farmland in the United States by our group $25 Billion, I'll write you a check this afternoon. 25 billion. Now I own 1% of the farmland. If you tell me you own 1% of the apartment houses in the United States, I'll write you a check. It's very simple. Now, if you told me you owned all of the Bitcoin in the world and you offered it to me for $25, I wouldn't take it because what would I do with it? It isn't going to do anything. The apartments are going to produce rental and the farms are going to produce food. That explains the difference between productive assets and something that depends on the next guy paying you more than the last guy got.

Producer:
All right, Bob, in hearing that, it doesn't sound like they were really in the corner of crypto, to say the least. So let's try to make sense of this news that came out this week regarding crypto and FTX.

Bob Loss:
So this week you had one of the major firms, FTX, go belly up. Basically they went bankrupt. Crazy thing is celebrities you would know Tom Brady, Shaquille O'Neal. I'm sure there are many others who made major investments and now the company is bankrupt. Even organizations such as Major League Baseball and the NBA had sponsorship commitments with the company. So in crypto itself, it's taken a tumble. I believe it's down like, gosh, 75%, 75% over last year. So doesn't seem like it's very stable to me as an option to put your money into, especially if it has to do with your financial future and your financial security and your retirement, a secure retirement. And not only that, I know I know younger people that have played with crypto and I say play because I really it's not it's not like a tangible thing, you know, And there's a reason why none I'm not aware of one investment firm that that handles not only stocks, bonds, ETFs and mutual funds that allows their advisors when licensed properly for all the other things I just mentioned, to even offer that as something as part of the portfolio, a lot of people that have been in the crypto world I am aware of personally, they're all doing it on their own so they have no guidance.

Bob Loss:
And again, it was all rock and, and rock. And if you happen to get in and out and you actually got it into something that's actually regulated like dollars at some point. But what if you didn't? What do you have? You got a hollow barrel. That's pretty much I don't I don't deal a lot with crypto. I don't not really. I don't see I really believe in it. And again, I'm not an expert on it. I don't I don't try to be. I still believe deep down that utilizing the stability and financial strength of insurance companies and utilizing the portfolio of options that you have available to you allows you to grow your money without risk or worry, potentially without any fees. And you can have different types of annuities for different goals and needs. You can have growth, you can have income, you can have guaranteed interest. I can tell you that rates on three year, I think a three-year, I'm starting to see over 5%. And of course that's tax deferred. That's not like a CD where you're going to 1099 every year whether you touch it or not. And I think we're creeping up into the high fives on a five-year might or multi-year guarantee with a guaranteed interest rate. So again and again, thanks for listening to Financial Freedom with Safe Money Bob

Bob Loss:
Bob, if that's of interest to you, if you're a CD lover or a savings aficionado, you. Have a lot of money in the bank. Know what piece you don't need to use at least for three, four or five years. You like the idea of earning more interest than what the bank's offering. You like the idea of tax deferral, so you're not paying tax on the interest. It's basically your principal plus the interest. And then on top of that, the interest on top of the principal and interest and so on and so on and so on. Like the commercial, I believe it was the shampoo back in the seventies, perhaps dating myself a little bit. So that's just the power that annuities can play in Your portfolio is not truly understood by the general population and it doesn't get pushed by. You're not going to see these commercials on CNBC, Fox Business, you name it, any financial TV network, it's not they don't make money as brokerages. Why all the commercials? Always the brokerages funds all that ETFs because they constantly when money someone cries somewhere every time money leaves a brokerage account for an annuity, you can't collect fees on it anymore. You can't you can't earn the money on anymore for themselves.

Bob Loss:
So that's a big difference. So again, to learn about all the options available to you, please don't hesitate to reach out to me. It's SafeMoneyBob.com Or call 908 359 2861 and leave a message and we'll get back to you in the business day to set up a call. And as Jim had said, if you want a copy of the Annuity 360 book, please just let us know. We'll get one out to you. Just leave your full name, address if you're comfortable, email address, phone number. Obviously, when you call me, I'll probably have it on my caller ID, but if you're comfortable leaving that as well, that'd be cool. And then we'll send it to you and we may follow up to see what you think. We'd appreciate it if you let us know when you receive it, and then we can go from there. But it's got a lot of great stuff in it and a lot of things I've been discussing. Ford goes into great detail. I know Ford personally. He's on my speed dial or my cell phone, and we have worked on various projects together over over the years. He's a good guy, very smart, and I appreciate his book that I'm able to offer to all of you listeners.

Producer:
All right, Bob. Well, shifting gears, diesel prices are on the rise again just in time for the holidays here in 2022. That's the headline 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:
So I don't know how many of you have have oil heat. Unfortunately for me, I have oil heat. I don't have any diesel vehicles, thank God. But I have oil heat. So I'm right in the same boat with the poor people that are truckers or have cars with diesel. So just some perspective here. Diesel prices have increased not 8%, not 8.7%, 33% for November for deliveries and expected to go higher. This is going to drastically affect shipping costs for everything. We use food, essential goods. We're going to see it. We're all going to pay. We're all going to pay. That's why you probably also want to have potentially some inflation protection on any income plan that we put together for you. Potentially. It's something that could be done. It doesn't have to be, but it's out there. So it's just another I don't think I've ever mentioned it before. So some of these options that the insurance companies offer us do include the option to have your income go up incrementally each year at a set percentage. So I just want to mention that. So we're looking at diesel being somewhere around $3. Let's just let's just I'm going to use beginning of 21 with around three bucks a little under right now. It looks like it's at around five, $5.33. And it was as high as almost $6, I believe, in Pennsylvania.

Bob Loss:
It might have hit that and it might have hit that a few months ago. It's just crazy. I mean, and then you can go into I mean, let me go into food like we're talking about. We're talking about diesel. So here, get ready, buckle. Buckle up. So September American Farm Bureau Federation announced that families can expect record high prices at the grocery store, not for everything else, but even turkeys. Retail price, some more information. The retail price for fresh, boneless, skinless turkey breast reached a record high of $6, $76.70 per pound in September. That's in September. That's not even near Thanksgiving. It's 112% higher than the same time. 21 it was 316 a pound. I mean, Turkey, right? That's not a necessity, but that's like a staple for Thanksgiving, you know, saying that Furthermore, furthermore, more food for thought literally, but painful, actually. So here's your largest annual increases ever for certain foods. All right. Butter and margarine obviously don't want to put too much on there. You want to keep your heart health, but especially myself. But 32%, I'm going to I'm going to round up or down flour. Flour mixes 24%, frozen bakery products, pies, tarts, turnovers, 20%. Canned fruits, canned fruits, 18 19%, 18.6 19% Uncooked poultry, including turkey. So it's taken all the poultry. 17%. I haven't heard. Hold on. Got one more frozen vegetables, almost 17%.

Bob Loss:
So when you're telling us inflation is running at 8.7, what are they telling us? They're not they're not counting everything. I know. They're not counting everything. They're not counting inflation the way they did in the eighties. Today, they're muting it. They're muting inflation. What they're telling you. So some more tidbits here for you. And my son loves milk. So I can I can even it almost 18 years old. He loves it. So I can appreciate this in the pocketbook. 15 point increase, 15% bread, almost 15% rice, almost 14%. Again, meats, poultry, actually, fish and eggs, meats, poultry, fish and eggs. We're going to it's 9% and fresh fruits, fresh fruits, 8.2%. So you can see we've got a serious problem here. And this is why the Fed is taking a sledgehammer to the economy to get to the point where we stop buying enough goods and services so that the pricing has to come down. So the supply demand balance goes back into balance. It's out of whack. People are still able to buy everything that they want when they want, which is not so bad, but it's bad when you're trying to lower inflation. So that's just an example of what's going on with inflation on many fronts. And hopefully you've found that in informative and truthful numbers, not what you see on the main media outlets.

Producer:
All right, Bob. Well, great job explaining that. And a quick reminder for everybody, if you're in the retirement red zone, that's either within five years of retirement or you retired in the last five years, please give Bob a call today so he can test the strength of your plan. All right, Bob, let's get to this Week in History.

Producer:
It's this Week in History.

Bob Loss:
All right.

Producer:
And on This Week in History, November 18th. On this date in 1963, the first push button touchtone telephones made its debut in the United States, replacing most rotary dial models using dual tone multi frequency technology. This new invention will become the new standard around the world for telecommunications signaling. And it wasn't until the 1980s that push button telephones were the majority in the US. In households now, I can actually kind of relate to this. My grandfather, who actually lived in Cherry Hill, New Jersey, not too far from where you are in New Jersey. I used to go over his house and when I was little, my parents were working throughout the day and I would go over there after my morning at preschool or kindergarten, whatever it was, he would have that rotary type phone. And I always but he also had a push button phone, but he kept that rotary phone for whatever reason. And I always used to play with that thing. So I can relate to the fact that it really, really that rotary phone, it hung on there for a while.

Bob Loss:
You know? Yeah, I remember the Rotary. I think when I was able to dial phones it kind of was mostly push push button. However, the house I live in now that I bought was built in six 1968 and in the basement. In the basement there's still a there was a phone hanging there. I think I finally got rid of it and it was a push button phone. It was for the home phone. I actually had it hooked up so actually I could use it when I moved here 18 years ago. And I think I had one that was Rotary on the wall at my office because it used to be a chiropractic office and that house was built in 1956. So needless to say, I removed it because people were hitting it when they're walking by because it's through the hallway to the conference room. But yeah, it's, yeah, technology and, and the push button, I'm sure. Jim when it was invented for those who use Rotaries for years and years were like, Oh, this is a godsend.

Producer:
Yeah. And now nobody really uses those push button phones anymore. They've got their cell phones, or even if they're so I don't even know if they're cell phones anymore. They're kind of multi-purpose devices in your hand, right?

Bob Loss:
Yeah. Handhelds.

Producer:
That's right. That's right. Also on this date, November 19th, this week in History, in 1863, President Abraham Lincoln delivers the Gettysburg Address. The president made the address in 275 words explaining the union's position and why the fight was necessary. Fought four months earlier, the Battle of Gettysburg turned out to be one of the bloodiest battles in the Civil War, with the death of 45,000 men.

Bob Loss:
Yes. Yes. Can I elaborate? I'm going to elaborate just a hair on that, because one of the schools my son was getting recruited by and we visited was Gettysburg. So we were there twice. And the second time we went, it was in I think it was end of June. So we actually took a ghost tour. And we all we saw where President Lincoln actually did his Gettysburg Address. We also saw some of the battlefields, but we wanted a ghost tour, and we were shown where the union would be in the high, high spot of the of a building on the main drag coming from the south, from Maryland and where the Confederates would set up. And literally there's ghosts of dead soldiers in there. There's there's you could see where like the the what you call it the mortar ball, like the big steel motor balls would hit houses where. Oh, gosh. I can't remember some of the names of the people, but just it was just a brutal, brutal war, brutal battle. Like you could not believe how just it was it was incredible. And you could see you could still see the the marks from the shells that they were shooting from there.

Bob Loss:
The rifles, you know, not even a rifle, but just the long guns. We'll call them on the building still. So it was it was surreal. But yeah, Gettysburg is very, very historic. If you haven't visited there, I recommend going there some cool, nice little pubs and restaurants you can eat in and also experience some of our our history, not necessarily great history here, but history that's probably well worth it. And if you have kids or grandkids, take them out there and let them see it in person themselves. Take a ghost tour. We didn't do one of those creepy ones where there's like at night and dark and, you know, things are moving and something cold is blowing the back of my neck. It was just showing us where you we're just crazy things where kids were kind of held up by people that had them there and things you didn't know about because it wasn't in my it wasn't any of my history books growing up. And I loved history, studying it and so forth. But yeah, I would say Gettysburg is a cool spot to visit if you can, for like a night or two and a day and a half or two.

Producer:
All right. Well, Bob, before we get going here, I just want to remind everybody, of course, you can listen to us every weekend on WBCB. 107.3 FM 1490 AM. And of course listen to the podcast as well subscribe Apple, Google, Spotify. We do greatly appreciate that you can listen to back catalogue of previous episodes and if you've missed the show at all again, we air twice Saturday and Sunday. So like as Bob has said before, if you can't get enough on Saturday, guess what.

Bob Loss:
You can always hear us on Sunday

Producer:
Sunday. Very good. Very good. But if you do miss the show, things going on, of course, holiday weekend coming up, you can catch the show and the replay on the podcast side. Again, Apple, Google, Spotify and of course, reach out to Bob. Safe Money Bob dot com. Call Bob today at 908 359 2861 Bob. And of course you can help people out with getting their Financial Freedom.

Bob Loss:
Absolutely. So what we're here for. Again, you can always book a call by going again to the website SafeMoneyBob.com Or call the office 908 359 2861. Anytime 24 seven. One of our staff will get back to you. Set up a call with me again. If you want to spend an hour with me, I'm more than willing to do so. If you want to just talk to me for 15 minutes and say, okay, you want to work with me, or at least go to the next step, then we can set up another longer call. You know, I call them virtual cats, virtual chats. And if you're good with the computer and you want to actually see me in person on video, not video, but just on my computer screen, we love using Google Meet. I love it. The sound quality is beautiful. You get to see this mug depending on what you're watching. And you know, it works out really well. We like doing these calls this way. These appointments saves helping the environment, right? We're talking about high diesel fuel, high gas costs, high oil costs, natural gases, natural gas. To even talk about that, it's going to skyrocket. I think it's going to be, I'm afraid to say, around a dollar a therm or more. And I looked at my gas bill and it was somewhere in the 30 or 40 cent range up until like a month or so. So it's creeping up, of course, as it gets cold out. I'm sure you guys I was outside today up here in the eastern northeastern North Philly area and where I am in Jersey. Nice cool breeze blowing this afternoon, I can tell you that.

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

Producer:
And Abraham Lincoln said quotes, The best way to predict the future is to create it, unquote. Let me read that again, Bob, because it's a simple quote, but it's very important and it pertains to a lot of people financially. The best way to predict the future is to create it.

Bob Loss:
That's right. So how do you create? How do you create your future? Is it all right instead of buying a new truck? Another example from a great person. Actually, I didn't mention that. I'll have to mention it real quick, but here's a quick example. Creating Your Future. You have a choice to buy a new truck. Say you like trucks. You need a truck. Pickup truck. Nice. All the options, all that. 65 grand. And then you found one that's three years old with like 13,000 miles person just decided I just want to upgrade. I can upgrade, trades it in. You can buy that one for 30. And again, I know the conditions aren't quite like that right now, but this is just an example of an experience of an associate that I work with. So instead of opting for a $65,000 truck, he opts for the 30,000 vehicle. So if he again, if he only bought four of these vehicles that way, they're in the course of, say, 35 years. So he basically would have had an extra 35,000 times, let's say four times. So that's 140,000. So what do you think, 140,000? Let's just say you got 140 because it was over time, maybe that grew to like three, 400,000, let's say. So that's 3 to 400000 that this person created because he created it by not going for the flashy new vehicle and he bought the very nice looks like new vehicle. And that's just one way you can help yourself create a secure financial future. So I want to go into one little, little segment here. We talked about how everything is high interest rates, high inflation is high. So there is one advantage. Well, there's more than one. I'm going to go over one right now.

Bob Loss:
So the high interest rates combined with a down stock market make now or the most opportune times to consider a fixed indexed annuity. So the reason I say that is with interest rates high at the highest it's been since 2007, annuity companies are able to generate more interest. That they have. That they invest in options. When you invest in a fixed indexed annuity or FRA, your money is tied to an index without being key here, without being directly invested. In the market. So you're not at market, you have no market risk if fire holders. You get to participate in the gains of an index but are protected from any potential downside. Zero is your hero. The power of zero. I've said it before. How many people would be so happy if all they had this year was a gain of zero? So at this point, since January, I bet you a lot. A lot of people. A lot of people. This feature of annuities allows people to sidestep the market, but take advantage of potential market gains without risking their principal and without paying fees. So again, I appreciate you listening to Financial Freedom with Safe Money Bob. And you can always book a call at Safe Money Bob dot com SafeMoneyBob.com Or 908 359 2861 and leave us a call. Leave us a message. And. One of us will get back to you. One of my associates will get back to you and set up a call with you. I appreciate you listening in. I hope everyone has a great rest, a great weekend, rest of your weekend. And we look forward to getting back in the saddle for our next show as everyone. God bless. Take care.

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 SafeMoneyBob.com Or pick up the phone and call 908 359 2861.

Producer:
Not affiliated with the United States government. The Amwell 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. 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 the results obtained from the use of this information.

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