1.13.23: Audio automatically transcribed by Sonix

1.13.23: 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:
All right, here we go. Welcome to another edition of Financial Freedom with Safe Money Bob dropping financial knowledge and wisdom as we do every week right here on the great 107.3 WBCB I'm Jim and joining me as always the man of the hour safe money.

Bob Loss :
Bob how are we doing Jim doing well over.

Producer:
Here. It's great to be here as always Bob thank you very much. Coming up on today's show, we draw a roadmap for you, the listener, on how to delete fees, taxes and expenses from your retirement. And contrary to popular belief, it is possible. Plus, beer prices have been rising just in time for the NFL playoffs. Of course, we'll break it all down in just a little bit. And hey, if you've lost more than you're comfortable with in your portfolio this past year and are looking for answers as we open up 2023, we would love to provide you with a free, complimentary consultation. Visit the website to get started on your retirement income plan today. That is safe money Bob dot com. Bob, let's lead things off with this week's quote of the Week.

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

Producer:
We've got a couple of quotes from financial experts this week, starting with Nathan W morris, a personal finance expert, author, speaker and financial coach who specializes in teaching people how they can achieve Financial Freedom for themselves. And Nathan says, quote, Every time you borrow money, you're robbing your future self.

Bob Loss :
Yeah. So when you're using someone else's money, you are costing you money. So if you can actually finance things yourself, like I talk about week after week, you know, highly funded, specifically designed cash value, life insurance, I am able to finance investments, my kids college education vehicles that I want to buy out and then pay myself back. I can even lease them to myself. The key is the flow of money. People don't understand the flow of money. If you can be the banker and the borrower for yourself, you're basically controlling the flow of your money. So for example, if I'm able to borrow from my life insurance policy and pay for my daughter's tuition and then pay that tuition back to myself, my policy will look exactly the same as if I never took a loan. And my daughter doesn't owe a dime for school. And there are some criteria that I try to enforce when it comes to grades and so forth to get that opportunity to not owe any money when you graduate. That's just a little tidbit. I guess we would call it a power clip or tip as to controlling the flow of money. And if you can control the flow of money, you're going to be better off.

Producer:
Yeah. And our second quote comes from Dave Ramsey. Dave says, quote, A budget is telling your money where to go instead of wondering where it went. That, again, is delivered to us from Dave Ramsey, an American personal finance personality, author and businessman.

Bob Loss :
You know, again, you want to control your finances. It's what we all try to to educate people on. You know, there's different ways to do it. Not every way necessarily is perfect, but if you combine Dave Ramsey's thoughts and my saved money, Bob's thoughts, you know, you're going to end up in a pretty good spot. But you want to take in, again, information, education, understand what's going on with your money so you can control it better.

Producer:
All right. Well, that wraps up this week's quotes of the week. And hey, you need to have a plan. Consider how long you've spent working during your career. We are all living longer and more and more retirees or retired just as many years as they've spent working. And I'm sure you've spent hundreds of hours throughout your life planning vacations and weddings or even, I don't know, nights out with friends and families. Those little things like that don't neglect retirement, though. Take the time to plan for your future today and let us be the one to help you contact Bob. Log on to SafeMoneyBob.com or call 908 379 2861.

Bob Loss :
Well, as we said many, many times over the course of the last few months, people don't plan to fail. They fail to plan. So if you can have a comprehensive plan and again, free of charge, we will do a comprehensive review of all of your situations, all of your finances, give you a life cycle model for zero cost that will help show you where you are now. And then we can also guesstimate where you may be later based on different factors and variables. So again, call 908 359 2861. Leave a message. One of my staff will get back to you and set up a call for us to go over your situation in more detail or go with SafeMoneyBob.com and book a call there 15, 30 or 60 minutes, whatever you prefer, and we'll try to help you out as best we can. We'll give you your lifecycle model, no charge and if you want us to help you out even further than we will take care of you.

Producer:
All right. Moving on with the show, our main discussion points today, and there's three of them deleting fees, taxes and expenses from your retirement. It can be done with the proper foundation in place. Another reason to contact Safe Money Bob . It's Safe Money Bob . But Bob, let's first discuss the leading fees from your retirement.

Bob Loss :
Yeah, so if you can, you have bond prices obviously that go south like this past year, right? Interest rates went up. So what happened to your bonds, your bond values went down because y your interest rates were lower. So if you can delete fees on 40% of your portfolio, so when you have a 6040 mix, meaning growth, we'll just say stocks or mutual funds or ETFs on 60% and then bonds or bond funds or bond type investments and the other 40, you know, you can basically eliminate those fees by going into a fixed index annuity or even a multi year guarantee annuity rates. Right now, I just saw one, it was 5.5, 3% for three years. Tax deferred. Again, it depends on the state you're in. So PA, Pennsylvania and New Jersey, it could be different. But up and down the East Coast, you know, the rates will be different depending on the state you're in. So when interest rates rise and by. On prices fall. There's no guarantee when you will be able to get your money back. Do you want to sell your bond when it's down? No. Do you want to sell your bond and have potentially get less money for it and then have to buy a new bond and pay more money for that same bond? No.

Bob Loss :
So you want to take advantage of the interest rate environment and place bonds that you're currently holding with fixed index annuities? The the terms the opportunity right now has not been better probably in the last ten or 12 years. Know by doing this you can delete fees as a portion of your portfolio. And then because there are no fees with a fixed indexed annuity, you've just saved money right there. You know, the 6040 portfolio stocks, 60 40% bonds go with 40% fixed index annuities. And if you want to keep 60% or even less in the market, go for it. You know, annuities are safe in a fee efficient way to generate lifetime income streams. I mean, you can you can buy an income stream, you can get an income stream without paying for it. You can enhance it by paying for it. You control the expenses. You control the fees that you pay when you choose different annuities. So unlike other investments where you really have no choice, you have a choice. You can control your fees, the decisions you make.

Producer:
Yeah, And again, the main theme of today's show, deleting fees from various parts of your portfolio. And if you missed any part of this segment, you can listen to the replay of the show tomorrow, Sunday, both Saturdays and Sundays, of course, and listen back in podcast form Apple, Google, Spotify or wherever you get your podcasts. Much. Thanks. Coming up, five reasons why you should consider implementing a Roth conversion in your retirement. This is Financial Freedom with Safe Money Bob 107.3 WBB 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:
Superhighways. Chapter one Why you should consider investing some of your hard earned wealth into a fixed indexed annuity. Big idea Protect your hard earned wealth with annual point to point protection periods that lock in your gains each year. A fixed indexed annuity can help you do the following with your wealth. Number one Protect your money from market loss. Fixed index annuities offered by highly rated annuity carriers did not lose a dime in account value in 2008 or 2009 during the worldwide recession caused by the mortgage loan crisis that resulted in the S&P 500 losing 50.1% of its value from March one, 2008 to March 31st, 2009. Number two, grow your money with market like gains, typical annual growth of 5 to 7%. Number three generate a lifetime income. Your retirement will likely last 30 plus years. It might be a good idea to place some of your assets into a fixed indexed annuity to set a safety net around a portion of the retirement income that you wish to generate. Number four, eliminate market risk associated with bonds by replacing the fixed income bonds in your portfolio with a fixed indexed annuity. Number five, eliminate the advisory fees you're currently paying to generate fixed income with bonds in your portfolio by replacing them with fixed index annuities. The annuity companies pay the advisor you don't. This is called a bond replacement. If the above fixed index annuity benefits sound appealing to you, then I invite you to listen to the rest of this book and ultimately invest a portion of your hard earned wealth into a fixed indexed annuity to build a successful retirement.

Ford Stokes:
For more important information on annuities. Beyond this book, I also invite you to visit our website Annuity 360 dot net. Let's consider a $100,000 investment in the S&P 500 versus a 100,000 investment in a fixed index annuity with a 50% participation rate in the S&P 500 from 2000 to 2013. Here's a hint, folks. The annuity wins from January one, 2000 to December 31st, 2012. The S&P 500 experienced -2.943% growth over those 13 total years. People who retired prior to 2000 experienced zero growth over 43% of their estimated 30 year retirement. Question Do you want to live your life during retirement without any growth over 43% of your retirement years? I didn't think so. Conversely, if you had invested into a fixed index annuity with a 50% participation rate in the S&P 500 in January 2000, you would have seen a growth of 65.53%. That's a significant total account growth difference of 68.473%. Do I have your attention now? The account value growth chart below shows the 100,000 invested into an S&P 500 spider in January of 2000 versus 100,000 invested into a fixed index annuity with a 50% participation rate in the S&P 500 also in January of 2000. The fixed indexed annuity achieved a total growth of 90.038% versus just 25.786% growth in the S&P spider by December 31st, 2013. This chart shows the power of one year protection periods called annual point to point features. The gains from each year were locked in on each anniversary of the annuity policy effective date.

Ford Stokes:
When the S&P had negative years, the S&P Spider 500 spy experienced losses. In those same years, the fixed index annuity experienced zero losses. This proves that you don't need double or triple digit gains if you don't experience losses. In this author's opinion, every sound portfolio with a smart financial plan includes fixed index annuity investments with tactically managed portfolios in hopes to minimize market risk, reduce advisory fees and deliver a reasonable rate of return. The annuity can also deliver consistent income with or without the added feature of an income rider that also charges fees within the policy. I recommend avoiding income riders. I strongly recommend investing a portion of your hard earned wealth into a fee efficient, accumulation based fixed index annuity with no more than 5% annual penalty free withdrawals. To allow your money to grow and to generate important income during retirement. Refer to your audio book companion PDF that comes free with a purchase of this audio book. See Chart 1.1 for Annuity Account Growth Examples. Green Line A $100,000 investment into a fixed index annuity showing the net growth of the annuity with a 50% participation rate with zero withdrawals from January one, 2000 to December 31st, 2013. The resulting account value is $190,038 by the end of December 31st, 2013. Redline, $100,000 investment into the S&P 500 Spider ticker symbol SPY. This investment carried 100% market risk with 100% opportunity for market gains on the performance of the SPY. From January one, 2000 to December 31st, 2013. The resulting balance of the account is $125,786. Your human capital versus your wealth capital.

Ford Stokes:
Human capital is an intangible asset or quality not listed on a company's balance sheet. You can think of this as an economic value of your work. Your human capital will decrease over the course of your career. Your peak amount of human capital is at the start of your earning years, whether that be right out of college at 22 years old or at age 30 after completing your advanced degrees. This is the time where your productivity levels are high and you are contributing to your company's wealth. You have all of your earning years ahead of you. During this time, you have to protect your hard earned wealth capital. This is not something you can recoup. You can't go back and relive your prime earning years or the years where your human capital was the highest. There are many barriers to going back to work at retirement age. Unfortunately, age bias is a real issue, especially in certain industries. Those who might have been an engineer during their younger years might be forced to take a retail job to make some extra cash because companies in their field won't invest in older employees. Many employers focus on what you can't do when you're older. Instead of thinking about the experience and the expertise you could bring to a project, you will most likely have to rely on your wealth capital during retirement. The idea of losing capital as you go farther in your career sounds a little scary, but you can rest easy knowing that this new form of capital will kick in as your human capital dwindles.

Ford Stokes:
As you earn and invest throughout your career, your wealth capital will grow exponentially. You'll need this wealth capital for your retirement. So it is important to choose investments that will protect and grow your wealth. Annuities, specifically fixed index annuities, can offer you market like gains without the market risk. Your money never goes below zero. By investing in a fixed index annuity, you are taking money out of the Wall Street casino and we think that's a good thing. Annuity guarantees like guaranteed lifetime income and the guaranteed growth of your principal are based on the claims paying ability of the issuing annuity company. It's a good idea to buy annuities from highly rated annuity carriers that are rated by Standard Poor's and AM best. We consider a highly rated annuity carrier to be rated at least a triple B rating by S&P or with a B plus rating by AM best. The impact of loss on your portfolio specifically, it can be devastating to your retirement. When we look at market volatility risks, the risk of loss and the potential impact on your retirement income is an important thing to understand. This chart shows the impact of losses on your retirement accounts. If we take a look at an example, let's say you have an account that is at risk. If you start with 100,000 and lose 20%, you lose 20,000 and you are left with 80,000. If you gain back the same 20%, are you back to even as you can see in the graphic below, the answer is no.

Ford Stokes:
In order to get back to your original 100,000 investment, you would have to gain back 25%. If we add an additional 5% for RMDs, we would now have to gain back 33.3% to get back to even understanding this concept is one of the keys to a successful retirement income distribution plan because you no longer have time on your side. The last thing we want to do is run out of money when we are 90 or 100 years old. How much do you have to gain to make up for a market loss? See Chart 1.2. After reviewing the above chart, I am reminded of Warren Buffett's two rules of investing. Number one never lose money. Number two, never forget rule number one, when you invest in a fixed index annuity with a highly rated annuity carrier that has a high financial solvency ratio, then it is likely that you will be able to follow Warren Buffett's two rules of investing. Exactly. You will likely not lose any money with the amount you invest in a fixed index annuity offered by a highly rated annuity carrier with a high solvency ratio, a good financial solvency ratio is any solvency ratio over 104%. The solvency ratio expresses financial soundness and a company's ability to meet policy obligations as they come due. Assets divided by each $100 in liabilities result in a financial solvency ratio expressed in a dollar figure. Assets are bond stocks, cash and short term investments. Liabilities exclude separate accounts. The higher the amount, the stronger the company's position to cover unforeseen emergency cash requirements.

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

Producer:
welcome back to Financial Freedom with Safe Money Bob Let's continue Bob with our discussion point from last segment where we disseminated deleting fees from your retirement. And let's shift a little bit and break down deleting expenses now from your retirement, pay off your mortgage or downsize from the family home again, pay off your mortgage and or downsize from the family home. That's the headline of this week's cost cutter.

Producer:
Here's. The cost cutter of the week.

Bob Loss :
So, you know the happiest people who I meet. With us in general. We have annual reviews, and they're the ones who have paid off their they don't have debt. They have little to no debt. They also a lot of them all have pensions, which I can say that the clients I have that have a guaranteed income, not just Social Security, but also pensions seem to be happiest if you can eliminate your mortgage or at least reduce it drastically, it's going to help you. It's going to help you feel more comfortable. You're not going to worry at night, How am I paying my bills? So if you can continue to pay a monthly mortgage, it can absolutely absorb a lot of your Social Security and other income for married couples. Or it could take up almost the entire single person's monthly Social Security. So if you can, there's two ways to go. You get rid of the mortgage. You hopefully have no debt. The other thing you can do is control that mortgage. So if you can't pay it off, pay off a chunk, and then by paying off a chunk, you lower that payment every month. And maybe that fits into your budget. And again, call 908 359 2861. Leave a message. One of my staff will call you back. Set up a call for us to review your situation in particular and see how we can help you out.

Bob Loss :
Or go to SafeMoneyBob.com And book a call 15, 30 or 60 minutes if you're up for it. And we'll go through everything that you have. I strongly encourage all of my clients and prospects to pay off their mortgage in a smart way. So what does that mean? You know, that said, you try to pay off family home with your IRA money, but there's taxes involved. So you're going to have to deal with the net. Can you net it out to where you pay your mortgage off and you'll get whacked? Too bad with the taxes on the money that you were drawn so you wouldn't pay a 20% real estate commission. Right. Why would you pay that? Usually it's six, maybe five now. So you don't want to pay 20% in taxes when you pay your mortgage off on your primary residence either. So the best way to pay it off is with after tax dollars. You know, you want to use money from maybe investment accounts, maybe you have some at this situation. You know, at this point in time, you may have money that is not up. So maybe you can take a tax deduction. Now, of course, the new year has passed and we're now into 23. But that could help you possibly with with taxes going forward. So you want to use money, you know, investment accounts, withdraw cash value from life insurance now.

Bob Loss :
Withdraw or borrow. Sometimes it makes sense to borrow, as I've mentioned many times from yourself, from your life insurance, and then set your payment plan back to yourself at whatever level you want. If you have savings accounts, that would basically take the money and pay off. If you have collectibles, any kind of fine art, rare coins, that sort of thing. Maybe you have a separate piece of real estate that you could sell to pay off your primary residence. So there's definitely different ways to pay off your primary residence. If you have a mortgage on it, you know, and again, there is a tax burden on sale of these type of investments. So you want to make sure you understand if it's minimal or zero. Housing is among the largest costs retirees face. So if you can eliminate efficiently your mortgage removes a sizable monthly bill from your retirement express expenses. So it's just something that we can help you with. Again, 900 83592861. Leave a message. One of my staff will get back to you. We'll set up a call 15, 30 or 60 minutes, or just go to a safe WWE safe Money box and book a call again, 15, 30 or 60 Minutes, and we'll try to help you out the best we can.

Producer:
All right. If you haven't done so already, reach out to Bob at 908 359 2861 or go to the website SafeMoneyBob.com dot com and see how Bob can help you reach your Financial Freedom actually coming up, Bob, you're going to be telling us a story today a little bit of story time with SafeMoneyBob.com and how you helped a client achieve their Financial Freedom. Plus, deleting taxes from your retirement Financial Freedom with save money. Bob, All that and more coming up next. We'll be right.

Producer:
Back. You're listening to Financial Freedom with Safe Money Bob, to schedule your free no obligation consultation visit SafeMoneyBob.com .

Producer:
Big changes could be coming and they may affect your retirement. I'm Matt McClure with the Retirement dot Radio Network . Powered by AmeriLife. Increases in costs, market volatility and fears of a possible recession. All have people who are close to retirement worried about the future. Some people who were considering early retirement are staying in the workforce, while others who had already called it quits are going back to work. Marketwatch recently published a list of eight big things retirees and pre-retirees should keep an eye on. Some of them are pretty obvious. Like number one, inflation. As the prices of goods and services continue to go up at rates not seen in four decades, just paying for everyday things could eat through your retirement savings more quickly than you thought. Another concern Social Security. The trust fund is set to be exhausted by the year 2034. Potential changes to save the program could have a big impact on your retirement years. Two items on the list have to do with savings. How much money to set aside for retirement and how to address a growing gap in that amount versus what most of us have actually saved? Yahoo finance contributor Vera Gibbons recently reported that the savings gap has been exacerbated by the pandemic, with a lot of folks dipping into their retirement accounts just to get by.

Stephanie Simcox:
We are in an inflationary environment here, and some of the experts I spoke to said given the fact that costs are going up for just about everything, they expect more people to actually tap into their retirement accounts or contribute less this year. Also, keep in mind that people are still quitting their jobs at a record rate, and that group may also be tapping into their retirement accounts, too, to cover their costs.

Producer:
Health care spending and drug prices are two more things on the market watch list of retiree concerns. And they could be impacted by the last two items on the list Diabetes, which continues to affect more Americans each year and uses up a good portion of the nation's health care resources and exercise which could actually bring costs down by helping you stay healthier longer. So which of these items is your biggest cause for concern heading into retirement? That's a key question to consider. As economic uncertainty continues to cause headaches for us all. With the Retirement dot Radio Network powered by AmeriLife, I'm Matt McClure.

Producer:
Guide questions Safe Money Bob is here to help visit safe money Bob Dot com today.

Producer:
107.3 WBCB Just teased it a moment ago. Before the break, Bob is a great story on how he recently helped a client achieve that Financial Freedom that we always talk about. And speaking of which, this is Financial Freedom with save money. Bob I'm Jim alongside my co host, my friend, and one of the most genuine people that you'll ever really find anywhere. Save money, Bob. And if you missed any part of today's show, just a quick reminder, you can catch the replay on Sunday mornings on the radio side or subscribe and listen to the podcast on Apple, Google, Spotify, or wherever you get your podcast. So Bob, you helped out a client recently. How was that experience?

Bob Loss :
All right. So this couple, three kids to go into, I believe Penn State, both of them, one of their goals, one of their dreams, eight, nine years ago, they wanted to own a shore house. They wanted to own a shore house. So how do we get to that point? Well, the first thing we did was we did a client financial questionnaire, see if RFQ. Located all the monies that were sitting where they were sitting. And then we also looked at their budget. So believe it or not. This couple was spending somewhere. I think we paid off some minor debts. Lunches became pack a lunch. Starbucks became bringing coffee from home. So those minor tweaks, we were able to save them somewhere between 18 and 20,000 a year that we were able to put into a specifically designed high cash value life insurance policy which actually will fund. The youngest child education, if we so choose to go use that that bucket. So fast forward eight years, eight years, they were able to pay off their mortgage. They have a house. Their primary residence. And we're talking probably 10 to 15 years prior to retirement paid off. So guess what? What we did is what we did. I not only hook them up with their mortgage, but I hook them up with a realtor in the town they wanted to actually buy their shore house.

Bob Loss :
So they found the spot. They were able to to buy it. I got them set up with their financing. And here's the here's the Golden Nugget power clip power tip. We borrowed the down payment. 80% of it. 75 to 80% of the down payment from. The wife's life insurance policy. And we did it that way because she is not a big breadwinner at this point. She has a big responsibility raising the kids and taking care of the house and all that. But her husband is the one that really you know, he's the high income earner, fortunately. So it all worked. But we were able to borrow the down payment, almost all of it, and we're going to pay it back over six years. So at the end of the day, they're going to have the equity in their shore house, their second home, their retirement home, and the money will be back in the policy as if they never took a loan. It's a good best of both worlds. So now they get to enjoy it. And apparently I get a week every year if I want one down there. It's on the Jersey Shore. South Jersey.

Producer:
Do you mind if I join you? I mean, goodness gracious.

Bob Loss :
Hey, Jim, if you want to hook, we can you can go party for a week if you want. Mean, it's all good. It's all good, Jim.

Producer:
And save money, Bob, right?

Bob Loss :
I don't.

Producer:
Know. My parents had to shore houses, shore homes back in the day in Ocean City, New Jersey. We had a home, 15th Street, 15th in Asbury. Of course, local listeners who live in New Jersey know what I'm talking about. Podcast listeners from around the country, around the world probably don't. That's okay, though. The Jersey Shore very underrated vacation spot in southern New Jersey, even central and northern New Jersey as well as you know. But yeah, my parents had homes 15th and Asbury 16th Street. They had one on 50th Street. But the thing that was taught to me, my parents were really good at this reading the market and buying these homes. And in a way it was helping them reshuffle their financial portfolio because they would buy these homes and they would always seem to at least manage to make some sort of a profit when they went to sell them prior, of course, to them moving to Florida.

Bob Loss :
All right. Yeah. So, I mean, in their case, they bought something that's pretty much turnkey, but for them it worked. You know, and I've got family that owned shore properties. And ironically, Jim, the place is in Ocean City, New Jersey, that they bought. And I can't remember what street it's on, but it's an Ocean City, New Jersey.

Producer:
It's funny how life works, how the universe aligns things, isn't it?

Bob Loss :
No doubt. No doubt. Things happen for a reason.

Producer:
All right. Well, again, reach out to Bob today. 908 359 2861. Free consultations, of course. Or log on to SafeMoneyBob.com. To email Bob and get in contact with SMB today. Bob, Inflation continues to seep into every area of our lives, it seems, and beer is no different. According to USA Today, beer inflation. Usa Today just had a story out about this. Beer inflation has hit shelves across the United States. That's the main headline of today's inflation demonstration.

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

Bob Loss :
Yeah. Believe it or not, booze is not immune to inflation. While it's been a long, it's been long considered recession proof. Beer prices, even liquor. I'm a seltzer guy. You know, the beer itself went up 7% during the last three months of 22, just the last three months of 2022. So some beers, including those such as Bud Light, Miller Lite, Yuengling Lager. You just say I want a lager. That's how they say it when they want to drink a Yuengling and Coors Light. Surprise. Prices rise even higher by over 10%. So lower priced below premium beers like Bud and Miller Lite Malt Liquors. Single serve Beers saw sales gain in December, so people were basically deciding they're going to spend less money on the beverages they consume adult beverages by buying something different than what they normally would drink. So here's a fun fact. So Americans spend wait for it. Around 1.3 billion with a B. Dollars on beer in the two weeks leading up to the Super Bowl Sunday. And then they consumed 325 million gallons of beer on the actual game day of the Super Bowl. Which is insane. And that's without me because I don't drink beer. I drink seltzer. But it's just one of the that and buffalo wings. That's another biggie. On Super Bowl Sunday, Buffalo wings, you know, appetizers, you know, cheese, crackers, beer. We just mentioned it's a big day. Any kind of snack, you know, chili, any kind of dips, you can put something in like it's a big, big day for that type of expenditure. So unfortunately, to pack lost at home on Sunday night, 22 degrees against a dome team. Don't know what the hell happened, but it is what it is. So we get to watch and they're playing golf now. Aaron Rodgers is playing golf and getting his handicap lower.

Producer:
Well, we do have something related to the Super Bowl and the Green Bay Packers coming up a little bit later on in the show. Bob, as it relates to this week in history, Great information, though, so far today, Bob. And if you missed any part of today's show, please go ahead and subscribe to the podcast, Apple, Google, Spotify, or wherever you get your podcasts. Coming up, deleting taxes from your retirement. 107.3 WBCB. We're back in a moment.

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 podcast.

Ford Stokes:
Chapter 13 The Annuity. That is just right. The fixed indexed annuity Big idea. A fixed indexed annuity gives you a portion of market like gains without market risk. Your investment is tied to an index but not directly invested in it. How does it work? And fire gives the owners or annuitants the chance to earn higher yields than fixed annuities when the index they are tied to performs well. They typically will also provide some protection against market declines. The rate on an fire is calculated based on the year over year gain in the index or the average monthly gain over a 12 month period. Fire is often have limits on the potential gain at a certain percentage. This is known as the participation rate. The participation rate can be 100%, which means the account would be credited with all the gains, or it could be as low as 25%. Most fiAs have a participation rate between 80 and 90% benefits guaranteed income stream. With Americans living longer and spending more time in retirement, many retirees are concerned about outliving their savings. In turn, they're searching for a product that can help ensure a steady income stream for A IS are designed with guaranteed lifetime income so you can never outlive your earnings diversification of portfolio. A balanced portfolio is essential for managing risk and reward in the financial markets designed for the long term. Fas are a great retirement vehicle to ensure you are not putting all your eggs in one basket for IS offer the ability to make some money without the risk of losing it. Secure principal. Even with market volatility, investors will not lose value on their fixed indexed annuities. Your savings aren't exposed to market fluctuations, so even in a negative market return, you will not fall below zero.

Ford Stokes:
You can never lose your interest once it is credited to your principal tax deferred growth phase. Offer long term tax deferred savings as long as your money stays in the annuity, you will not be taxed on the interest earnings. Once you receive a payout, the annuity will be taxed just like ordinary income predictable earnings. Because fees offer predictable income, Americans feel more comfortable when withdrawing funds from these retirement vehicles as opposed to an IRA or for one K. Choosing an FIA is an efficient way to plan for your future as your interest earnings rate always remains somewhere between the interest rate floor and the cap. No matter what happens to the market, you can still count on payments throughout your golden years. Potential drawbacks of fixed indexed Annuities Surrender Charges. A surrender charge is a type of sales charge you must pay if you sell or withdraw money from a fixed, indexed and even a variable annuity during the surrender period, a set period of time that typically lasts 6 to 8 years after you purchased the annuity. Surrender charges will reduce the value and the return of your investment Withdrawal limits. Almost all fixed indexed annuities play surrender free withdrawal limits within the annuity contract that generally range from 5 to 10% of the principal. While all annuities must be armed, friendly and provide for a penalty free withdrawal from a qualified annuity account equal to the RMD requirement for the client's age carriers limit the amount of withdrawal to enable them to grow the money invested for themselves and the client not suitable for short term investing. If you want to grow your money, but you also need access to 100% of your money, then a fixed indexed annuity may not be right for you.

Producer:
You're listening to Financial Freedom with Safe Money Bob Visit Safe Money Bob dot com.

Producer:
Bob Dotcom This is Financial Freedom with Safe Money Bob, welcome back to the show. We played a couple of chapters today from Annuity 360 written by Ford Stokes. And to obtain a copy, reach out to Bob today at 908 359 2861 or log on to SafeMoneyBob.com to pick up a copy of your own the leading taxes from your retirement. We'll explain coming up. Well, cue the Seinfeld music, Bob. It's time for This Week in History.

Producer:
It's this Week in History.

Producer:
This Week in History. On this day, January 13, 1961, American actress, comedian and producer Julia Louis-Dreyfus was born. She is best known for her work on the hit sitcom Seinfeld playing Elaine. And she has received 11 Emmy Awards, a Golden Globe Award, and received a star on the Hollywood Walk of Fame in 2010. She's had quite a career, but of course, is best known for her work as Elaine in the hit sitcom, one of the best shows of all time.

Bob Loss :
Seinfeld Oh, yeah. And everybody I know if anybody watched it, but if you ever remember seeing her in one episode dance, Oh, my God, It was.

Producer:
Horrific, hilarious.

Bob Loss :
Whatever she was doing. And then I believe her dad was in Jaws. Right.

Producer:
Richard Dreyfuss. Richard Yeah.

Bob Loss :
Yeah, yeah. So you see that it's funny when we're we're at the beach and somehow we end up watching Jaws and we're at the beach. It's like, really? This is when we got to watch it.

Producer:
All right? On the sports side of things, on this day, January 15, 1967, the Green Bay Packers defeated the Kansas City Chiefs by the 35 to 10 final in Super Bowl one. The game was played at the Los Angeles Memorial Coliseum in Los Angeles, California, and the game remains the only Super Bowl to have been simulcast in the United States by two networks, ABC and NBC. The average price of a ticket to Super Bowl one was $12. And the average price, in case you're wondering, of a ticket for this year's big game, Super Bowl 57 is $8,000. Stark contrast.

Bob Loss :
Yeah, a little. Little inflation there, huh? A little bit. Just a tad? Yeah, just a tad. Oh.

Producer:
I had to bring it up with the Green Bay Packers. I had almost. I almost took that one out of the outline today.

Bob Loss :
And we won, I think, three NFL championships before we won Super Bowl one and two. So I think we had five championships. Probably if it wasn't five in a row was within like six or seven years. Unfortunately, I've experienced a lot of disappointment in the last probably I'm going to go ten years with the NFC Championship. Losses. Losses at home. Losses in the regular season to clinch a playoff spot. Yeah we definitely the pack and I am you know just full disclosure myself my son and my father are NFL owners. We each own one share that is worthless out of the Green Bay Packers and we could vote, but it wouldn't matter. So I don't in that situation, I vote for elections, I vote for government position, but I don't bother voting for the Green Bay Packers because they wouldn't listen to me anyway. So anyway, I throw that in there.

Producer:
All right. And finally wrapping up this week in History. On this day, January 15th, 1943, the Pentagon headquarters of the Department of Defense was completed thanks to a multiple shift, 24 hour day construction schedule. It was completed only eight months after the first concrete was poured. All right. That wraps up this week in history. Bob. We've talked today about the leading fees and expenses from your retirement, but quite possibly the most important factor of today's trio, the leading taxes from your retirement, again, deleting taxes from your retirement.

Bob Loss :
So, as you know, if you don't, they're going to hear about it. Now, our national debt is almost $31.5 trillion. Uh, I'm. In the camp that taxes will go up because how are we paying for this debt? Just servicing it. Forget about actually trying to pay it off, which would be a fantastic plan for the country, of course, especially our kids and grandkids. So what we can do for you, if it makes sense with a Roth, with a Roth IRA, Right. You you've basically paid tax on that money. It's very actually I think I might have mentioned this a few shows ago. A Roth IRA tax wise is very similar to life insurance. Actually, life insurance. You basically paid tax on the money before you put it in there. So unless you take out in the case of life insurance more than you put in, it's basically first in, first out, so you don't get stuck with paying taxes. So a Roth, when you put money into a Roth to do a Roth conversion, you've washed the money. So washing the money means that when you need it and you need to live off of it, you're you're basically getting tax free income and you're and you're also controlling when you pay the taxes. Do you know when you take the money out in five, ten, 15, 20 years, whatever it is, what the tax rate is going to be? The answer is no.

Bob Loss :
And you do know what the tax rates are now. So if you can bump the bracket, depending on what your income is at this point, you can watch some of the money and have more of it become a tax free income stream versus taxable because would you go into business with someone? You don't have any idea how much they're going to own of your business and how much they're going to want to take of the money that you have built up. Down the road at a later date. Would you go into business not knowing any of that information? Of course not. Of course you're not. So if you can. Here's why you want to consider a Roth. Tax free growth just mentioned it. Contributions to a Roth IRA or made with after tax dollars. So all future growth in the account is completely tax free. Tax free withdrawals qualify withdrawals from a Roth IRA or 100% tax free. Now, there are some stipulations and rules, especially you want to be over 59 and one half and you do have some flexibility. So Roth IRAs are more flexible than traditional IRAs when it comes to withdrawals. Reauthorize, don't have RMDs required minimum distributions. So if you don't need. The money out of a Roth IRA.

Bob Loss :
You don't have to take it. You could leave it tax free to your children, assuming your estate is not too large to where that would become an estate tax situation. And there's no age limit. So traditional IRAs have an age limit for contributions, but there's no age limit for contributions to a Roth IRA. So. Depending on your situation, depending on your income. If you wanted to start slowly, move money over, bump the bracket like I like to always say. You can wash that money if you don't need it and then leave it to your beneficiaries. It could be kids, grandkids, whomever, without having to deal with this. Got to take it out within ten years like an inherited IRA. And I've dealt with a few of those in the last six months where you have to actually figure out. The setup and you've got to make sure that it goes into something that is going to be less than ten years from a any kind of issue with surrender charges. So the Roth IRA is going to be passed on to your heirs, as I just mentioned, without them having to worry about paying taxes on the account. You've watched the money already. It's the next best thing to overfunded high cash value, specifically designed for life and permanent life insurance.

Producer:
All right, Bob, one more time. How can people reach out to you.

Bob Loss :
So you can always call 908 359 2861 and leave a message. One of my staff will get back to you. One of my associates gave me a call probably within 24 business hours and set up a time where we can have a conversation 15, 30 or 60 minutes free of charge, no cost. We can do a a fact finder for you and then do a lifecycle model for you and provide you that lifecycle model free of charge. You can take it. You do what you want with it. Obviously, I think I'll be more efficient helping you once I've got your lifecycle model put together or you can just go to SafeMoneyBob.com and again hit a button click 1530 60 minutes if I have extra time above and beyond that time slot that you choose, then I'm more than willing to stay on the phone with you or the Google meet or however you want to do it and really help you get comfortable with where you were, where you are, and where you want to be.

Producer:
Great content, Great show this week, Bob. And don't forget, if anybody missed any part of today's show, please subscribe to the podcast. Apple, Google, Spotify, our entire podcast catalog, previous shows. It's all right there again, Apple, Google, Spotify, or wherever you get your podcasts and listen to this show and previous episodes at any time and you can reach out to Bob as well. Don't forget about that. Log on to SafeMoneyBob.com Have a great rest of your weekend.

Bob Loss :
Take care, everybody. God bless.

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

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

Producer:
When it comes to saving for retirement, Who is winning the battle of the sexes? I'm Matt McClure with the Retirement dot Radio Network . Powered by AmeriLife. The gender gap is a real thing in the US, with women making less money on average compared to men. Congress passed the landmark Title nine law more than 50 years ago prohibiting gender based discrimination in education, and that resulted in women pursuing careers that had previously been considered off limits. And while females have made strides over the years when it comes to finances, a new study from TIAA shows it's men who are setting aside more money for retirement 27% more, to be specific. And while that number is better than in years past, it's still a significant gap.

Stephanie Simcox:
And in the past year, 78% of men have increased their retirement portfolios through stocks, compared with 51% of females. And now this imbalance really underscores not only the gender wage gap, but it also has really far reaching implications for long term retirement security.

Producer:
Stephanie Simcox with Yahoo! Finance recently reported on the gender gap in retirement savings.

Stephanie Simcox:
When stretched over the course of a career. A women's lower wages really directly impact her ability to save for that nest egg and then live comfortably in retirement.

Producer:
And she says the pandemic surely didn't help the situation. In fact, it got.

Stephanie Simcox:
Worse because of the pandemic. A preponderance of women have downshifted taken time away from work to really concentrate on these pandemic measures of supervising remote schooling for children or caring for aging parents.

Producer:
The TIAA study also showed women have some catching up to do when it comes to financial literacy. When asked financial questions in a survey, women got 45% of them right, compared to 55% for men. And Olin, with TIAA told CNBC that all of this underscores the need to equalize financial education among the sexes. So women, do you have a sound retirement plan in place? That's a key question to consider. As all of our retirement years draw closer with the Retirement dot Radio Network powered by AmeriLife, I'm Matt McClure.

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

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