Bob discusses misconceptions about retirement and the importance of having a strong income plan. He also explains the latest market trends as we head into 2023.

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market update
cost cutter
this week in history

11.4.22: Audio automatically transcribed by Sonix

11.4.22: 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.

Jim:
Welcome to Financial Freedom with Safe money, Bob. Thanks for making us a part of your day. On the radio side, 107.3 FM, wbicb are listening along on the podcast. And of course, a reminder, if you haven't done so already, please subscribe to the show Apple, Google, Spotify or wherever you get your podcasts at SMB The main event. Bob Save money. Bob, how are you?

Bob:
All right. How are you doing, Jim?

Jim:
I'm doing doing very well. It's good to connect with you again. Your Green Bay Packers lost. I'm sorry. I have to bring it up. They lost again on Sunday. It's kind of a rough go for them.

Bob:
Well, expected. Expected.

Jim:
Yeah, I understand. But look, Tennessee, they're going well. Number one, it sort of balances things out.

Bob:
I can forget about Green Bay for now. We're about Tennessee. That's right.

Jim:
That's right. It doesn't work out on the NFL's side.

Bob:
You can go to college for now.

Jim:
That's exactly right.

Producer:
It's this week in history.

Jim:
It's a busy week for our great nation, Election Day, Bob, this Tuesday the eighth. So be sure to get out and vote if you haven't done so already. And Bob, if you remember, on this date in history, November 6th, 1984, US President Ronald Reagan won his re-election bid in a landslide victory over Democrat challenger Walter Mondale, who served, of course, as Jimmy Carter's vice president in the Carter administration. President Reagan won 525 electoral votes and nearly 60% of the popular vote, 58.8 to be exact. I don't think we'll ever see that again with our political climate the way it is right now. No other US candidate, by the way, in history has matched Reagan's electoral vote in a single election. Now, Bob, for full context purposes, for those who don't know, there are 538 electoral votes in total. And Vice President Mondale won the state of Minnesota, which was ten. That was ten votes. And then the District of Columbia, that was 313.

Bob:
I was one year too young to vote in that election. I didn't turn 18, I guess, until I think it's 18, if I remember correctly, until 1985. So I got to watch it on TV. But that was about it. I was enjoying my senior year of high school, so.

Jim:
That's right. That's right. You weren't worrying too much about the market or about politics and what was going on, how important it is, by the way, to get out and actually vote.

Bob:
Very important. Like I said, last week's show, you want to you definitely want to get your information, do your due diligence and go to ballot, talk to learn more about candidates and issues. Just know what's going on in your community. Starts with your community, then your county, your state, and then obviously the country on certain elections every four years or even every two years with the Senate and the House opportunities there. So just get your information. Participate, don't think your vote doesn't count because it does. Because the fact that people have died for us to go out and vote, whether it be an absentee ballot because you're not traveling or you actually go to the like, my parents love going to their location to vote in person. It's like one other things they like to do every year. You know, it's a privilege. It's a privilege that people pay dearly for to allow us to still have that privilege. So don't take it lightly. Get out and vote and we'll see where the chips fall.

Jim:
Yeah, get out and vote. Quick story, Bob. You know, I have a family member on my mom's side, and once in a while when we talk, he likes to bring up politics and things that he disagrees with at the federal level, the local level legislation that was passed that he didn't exactly like. And I always ask him the same question every time I ask him. I Bob, I say, did you vote? I'll tell you what, snob, It never fails. He always says no. So at least if you vote in the candidate that you didn't want to get in gets that chair, then you reserve the right to complain if you don't vote. And there's a candidate that gets in that you didn't want to get in there, you don't have the right to complain.

Bob:
Sorry, you're out dry. Yeah, yeah. I take the effort. I mean, and then nowadays there's just they're making it so much easier for many, right or wrong in some cases probably to vote. There's no reason why you can't do it. Unless, God forbid, something medical happened right away or something unforeseen happens, God forbid. We have a tremendous storm like we did. What was it over ten years ago? It wasn't on Election Day, but it was right in the week before. I remember that humdinger that came in a few hours after we finished our last flight football game for my son that Sunday. I think it was a Sunday.

Jim:
We got right after Halloween, the week after Halloween.

Bob:
It was right there. It was like the 30th or something.

Jim:
All right, Bob, let's get to some financial wisdom, our Quote of the Week this week.

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

Jim:
And our quote of the week comes from Alice O'Connor, better known for her pen name as Ayn Rand. She was a Russian born American writer and philosopher, and she is known for developing a philosophical system. She named Objectivism. And Alice says this, quote, Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver. Bob, you mentioned your telephone number, 9083592861. And your website Save money, Bob. I'll tell you what, that's a great quote because your money, it should be working for you just as hard as you've worked for it over your life. And Bob, you can teach people how to do that.

Bob:
Absolutely. Absolutely. I live it every day. I mean, from from basically it's funny because I saw I was online earlier this morning, actually, it might even be worth taking a walk because I should watch what I'm doing that I don't walk into anything. But. But anyway, yeah, you want to have your money working for you. I don't. I'm not joking. Like, it could happen. But you want to have your money working for you. And I've been having my money work for me and a couple of different ways and at the same time in a couple of different places, which sounds kind of crazy, but it can be done. I've known this concept and lived it probably for at least going on 20 years now out of my 30 because I didn't learn it in depth until early 2000. But you think think of a bank. Think of a bank. A bank gets your money, pays you a little bit on it, and then makes a ton on your money by lending it out and so forth. So you can create your own banks with different vehicles that we can show you how to use them. One of them, of course, is overfunded high cash value life insurance. You can create your own bank. You can create your own pool of money, and you be the bank and you be the banker and you also be the customer. And I've been doing that for years with cars, actually investments. I'm investing in my kids right now. My daughter specifically. I've invested dearly in my son, too, with all the lacrosse stuff. But, you know, I'm able to take money out of one of my policies in the form of a loan. I pay myself back systematically.

Bob:
It doesn't show up on credit reports. There's no taxable event, nothing. It's like it's invisible. Just comes in my bank account. I wire it or eft it over to the bursar's office over the U.K., University of Tennessee, Knoxville. And I slowly pay myself back, whether it be months or years. At the end of the day, when I pay that money back into my policy, it looks and I can show all of you this. It looks exactly as if I never took a loan. So my money still grew. I took some out in the form of a loan, paid for something, and then paid myself back. And the power of using your dollar more than once many, many times in life, but also having to do more than one thing at the same time is pretty cool. And you're probably not going to hear about this or even know about it. It's not something that gets really, really widely publicized. And as well, the banks do this, believe it or not. They do this. They have what they call Tier one capital. And tier one capital is in high cash value, big time large life insurance policies because they like getting the guarantees of interest and or dividends which aren't guaranteed but are generally paid every year by all the reputable companies while they're doing other stuff with their money. So again, you want to learn about this or any other concepts that I have been utilizing myself, helping my clients with, etc. Just go to save money by ABC.com and book a meeting with me or call the office at 9083918500 and one of my staff will get back to you and set up a convenient time to have a chat.

Producer:
Your active wealth market update.

Jim:
All right, Bob. Well, let's do a market update, Bob. What do you have on the market this week?

Bob:
As you know, the Federal Reserve is set to meet, I believe, on the first and 2nd of November. And we believe there's going to be another interest rate hike of probably three quarters of a point or 75 basis points, basically three quarters of 1%. They have done this, I believe, the previous three or four times. This will be for perhaps and it'll be the fourth time if they so choose to do it. So you're talking about a 3% increase in rate, which is probably the most aggressive it's been since the early eighties, kind of like when our friend Ronald Reagan was in office. They hadn't raised just once. The Fed funds rate by three quarters of a point or more since 1994. So it's obviously the markets have been very jumpy up and down, up and down. Everybody's trying to predict whether or not we have more interest rate hikes coming. I'm in the camp that until you see unemployment jump up, I believe it's still around 3.5%. Last time I looked. How do we how do we stop inflation? How do we stop more more demand and supply? Well, the only way you can do that is if there's people don't have the money to buy some of these things. So I think once you see the unemployment rate jump maybe to four or four and a half, I think four and a half, what the Fed's looking at, then you might see the interest rate hike stop.

Bob:
And depending on what happens there, we're talking probably spring to summer. It could even be all the way to fall of next year in 23, where you actually see rates coming back a little bit. I can tell you the mortgage industry is is suffering drastically right now. There's just there's really the buying stopped. The houses are starting to come down in different areas of the country values of them, you know and the rates are high so people can't afford the house they could afford even a year ago. So it's affecting everything. Like I said last week, the Fed's taken a sledgehammer to the economy and there's going to be a lot of pain. And hopefully with my help, we can get through this pain. And again, if you're tired of losing money or you're down and you want to put some on the side or at least set some aside, that does not go back down anymore, give me a call. 9083592861. I'll have somebody book a call with me for you and or go to save money by ABC.com. But that's generally the the markets where they are now. They're still very jumpy. You can't tell where there's rumors. If they say some kind of verbiage in their meeting notes or meeting minutes that they like to say about less or no rate hikes for a short time, you could get a jump in the equity markets.

Bob:
If you do, then you definitely want to reach out to me, perhaps because then we can take some off the table and reallocate it in a different strategy that will protect your money, potentially have growth, no risk, no worry, no fees unless it makes sense based on your situation, to pay a fee for something that you want that's available. But that's pretty much what I have, I believe, on the markets at this point. We're still we're still in a tough time. We're still in a tough time. I mean, like I said, the unemployment hasn't really dropped. You can't they can't find help. You can't find help. These doors are open shorter hours starting earlier or later, closing sooner. I know businesses in the 100 area Flemington area personal personally, some of the business owners, they just they just do their hands up and shut down. So I don't think we're out of the woods yet. I would like to hope we're on the back half of it. But until until they stop raising rates, it's just going to be tough for everybody going forward. The gym is pretty much what I have for this week's market update.

Jim:
Where do you think, Bob, the market goes next? I mean, there's so much fluctuation on a weekly basis. Where do you see the market going into 2023?

Bob:
Oh, I think you could have a shock event short term, which would be the election. Generally speaking, for whatever reason. Let's just say if hypothetically, the House and or Senate go Republican, right, you still got your Democratic president and vice president. But history has shown whether it's Democrat, the Republican or Republican to Democrat, for some reason, I believe it's the S&P. It has an average bounce of about I think it's 3%. You might say that's going to happen. That's a possibility. Short term. I don't I don't see a lot of potential growth in equities for a while. We have to get through this inflationary period. Start to get interest rates back towards somewhere in between where they were at the all time lows and where we are now or where we're going to end up. And then hopefully we'll start the whole real estate industry up again, the mortgage industry up again. Hopefully some of the goods and services that we're paying for will either stop going up in cost or at least that versus maybe getting a little lower in cost, or they'll just put a little bit less in each package and lower the cost and tell us they lowered the cost, but they really didn't per piece. So that's sort of where we're at. I mean, it's I read a lot of publications, a lot of people that just all they do is study this stuff.

Bob:
And, you know, you have the geopolitical things that are going on besides Russia now, potentially, you know, you have high inflation companies. Some companies are it's tough for them to even make their earnings estimates that are allowing them lowering them, which won't help their share prices go up. So it's I think it's a good time to look at what you have with a professional. See where you're at. Are you at your wind point with some of your portfolio maybe moving into something different, something with no fees, costs, riders, charges, anything, Something that has your worst year is zero, but can still grow pretty substantially or put a piece into something that's paying over 5% for the next 3 to 5 years with no cost, no fees, no charges, and it's guaranteed. So you can't lose you know, it's not the inflation rate, but it's, my God, so much higher than it was over a year ago. The same scenarios were probably two point something to three, and now they're like 5 to 5 and a half. So some good stuff that we could show you. If you go to save money by ABC.com and book an appointment with me, I'll we'll talk to you about your situation and see what makes sense for you or book a call by calling 9083592861. And one of our staff will set up a call for us to have a chat.

Jim:
All right, Bob. Well, great information there. Thank you very much. We'll step aside. Don't forget, we're up against a break here, but subscribe to the podcast Apple, Google, Spotify, or wherever you get your podcasts. And join us every Saturday and Sunday at 8 a.m. right here locally on 107.3 WB CB. Coming up, test your financial knowledge when we play right or wrong. Plus the biggest misconception about retirement what is it? We'll find out next. That's coming up. Financial freedom with safe money Bob on wbicb.

Intermission:
Not in the way that told me. Way you say.

Producer:
Could a recent IRS change actually save you money on next year's taxes? I'm Matt McClure with a retirement radio network powered by a married life. When you think of the Internal Revenue Service, your mind may very well recall the sting of forking over your money to Uncle Sam or the hassle of preparing your taxes. A recent study by the American Action Forum estimated Americans spent more than $190 billion. That's billion with a B on tax preparation in 2021. Plus, many economists predict the federal government will have to raise taxes in the future to pay off the national debt. But there's one change the taxman is making for 2023 that could actually mean you'll owe less in taxes next year. How much you save will be relative to your personal situation. So it's not going to be the same for every household, but certainly it could have a nice little savings come tax time. Andrew Pelosi, with Pelosi Accounting and Consulting, recently told Atlanta News First, the IRS typically makes annual adjustments to income tax brackets, but this year they're bigger than usual due to, you guessed it, inflation. Some people will see a savings of perhaps $1,000 per year in tax time on their tax return. Others might see a little bit more. Certainly the brackets have changed, so the those who are in higher brackets will probably see more savings than those who are in lower brackets. But across the board, everyone is going to see some kind of savings. In short, all tax brackets are going up by about 7% for 2023. That means you can make more money and be in a lower tax bracket than you would be this year. The standard deduction is also going up to the tune of a $900 increase for single filers and 1800 bucks for married couples filing jointly. I mean, look, it's.

Bob:
Beneficial for everyone, right? At the end of the day, we're all looking to save money and keep more money in our pockets. In a time.

Producer:
Like this where groceries are more expensive, fuel prices.

Bob:
Are at record.

Producer:
Prices. Every little bit helps. Keep in mind, though, that these adjustments are for money you earn next year in 2023, so you won't actually see the results until you file your taxes in early 2024. So could you benefit from the IRS's new tax brackets? That's a key question to consider as you plan your financial future with the retirement radio network powered by a married life. 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 to an end to financial freedom with safe money? Bob To learn how you can protect and grow your hard earned money. Financial Freedom Weekend at 8 a.m. right here on Wbz-tv AM 1490 and 107.3 FM. Protect your hard earned money today and schedule a free consultation now at Safe Money. Bob. Dot com.

Producer:
A new payroll tax could be coming to your state. I'm Matt McClure with a retirement radio network powered by Emera life.

Recording:
We have seen a failure as a country to provide comprehensive insurance for long term care.

Producer:
America has a long term care problem, KNPR reports. 70% of people who turn 65 will need some type of long term care, ranging from in-home care to a full time nursing home facility. And the costs can be astronomical. Again, worth study in 2021 found the median cost for home health was more than $61,000 a year. If you want a private room in a nursing home, the median cost there more than $108,000 annually. And Medicare won't cover the costs.

Recording:
Medicare pays for short term post-acute care if somebody's been hospitalized or has other kind of short term medical needs. It doesn't pay for the kinds of things that we think about as long term care.

Producer:
Alison Hoffman is a professor of law and Deputy Dean at the University of Pennsylvania Carey School of Law. She tells me relatively few people in this country have long term care insurance. Washington State was the first in the nation to try to bridge that gap.

Recording:
And what Washington state has done is it's done a payroll tax point, 58%, that is for all W-2 workers or full time workers that comes out of their payroll. And then so long as they pay in for a certain number of years, when they have a benefit that they can use for long term care up to a certain amount.

Producer:
But it's not a cure all for the problem.

Recording:
It is a little patch. I think the total benefits in Washington state are 36,000 and they increase with inflation over time. But the cost of a nursing home in most states is three times that over the course of a year. What it is, is the states trying to come up with a tool to fill in some of some of the gaps.

Producer:
Now, states like Pennsylvania, New York and California are looking to Washington's plan to implement their own solutions. Professor Hoffman says taxpayers can opt out of the payroll tax in some cases, such as those who have their own private long term care insurance.

Recording:
So why would somebody want to opt out? Well, somebody might want to opt out because they're already contributing dollars towards towards long term care. And they think that that's sufficient. That's enough. But people also might opt out because they don't value it as a form of insurance.

Producer:
So could a program like this be coming to your state? If so, how could it affect your wallet? And what about your own long term care plans for your later years? Those are all important questions to consider as time continues to tick on by with the Retirement Radio Network Powered by Emera Life. I'm Matt McClure.

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

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

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

Producer:
This part of today's show. Financial Freedom with safe Money. Bob is available wherever you listen to podcasts and online at Safe Money.

Jim:
Bob and our thanks to Ford Stokes, an excerpt from his book Annuity 360, which is available now. Get your copy by connecting with Bob today. Welcome back. Inside Financial Freedom with Safe Money. Bob right here on BCB 107.3 FM. Hey, if you're the primary breadwinner of your household and you don't know where to start with your financial planning, please reach out to Bob today. Call 9083592861 or visit the website Save Money. Bob I work with Bob every week. I can tell you he is one of the most genuine financial advisors and people that I've ever met.

Bob:
Appreciate it, Jim.

Jim:
All right, Bob, it's time to test your financial knowledge and feel free to play along with us at home. It's time for this week's right or Wrong.

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

Jim:
I haven't been going too well in the last few weeks with right or wrong. Let's see if I can redeem myself here today. All right, Bob, is this right or wrong? It's too expensive to work with a financial adviser slash professional, and you'll be better off managing your money on your own. Bob, is that right or wrong?

Bob:
Hmm. That's a tough one. Let me think real quick. Too expensive. Wrong. Wrong. You work with someone like myself. Financial advisor. Professional. We can help you save money. Keep more of your hard earned money. It's important to work with a licensed professional that can help you and help your spouse, your family. In case of a family member who was doing the financial planning passes away. I have a situation right now where I have a couple that was referred to me through a CPA, and the CPA is my client as well, and they're like 85 and 87 years old. Their kids are older but financially illiterate. Help her, I guess we'll call her. It's like it's like a nurse, but not a nurse. They're not like that ill, but just someone helps them with their daily activities. It's trying to scramble. So we actually figured out that they it's it's insane. But at their age and with a net worth close to probably eight or 900 K without their house, they are like 95% in the market this whole time since last this whole time. So needless to say, their portfolio has gotten hammered. So I'm being brought in to try to come up with some income solutions for them, protect some of that money, or if not most of it, and create an income stream that will satisfy their needs. They don't travel very much. Like I said, they're 85 and 87 years old. They just need some steady income. And they literally had whoever was their advisor or the advisors I see on their statements are doing squat like nothing for them.

Bob:
And all they've done is collect fees, management fees on the money, because a lot of them are brokerage accounts and the portfolios are imploding, imploding in that they're not going to zero, but you know, 800 down to like say six. Fifty's not very good, especially when you have potential for nursing home care, living, living needs, you know, people coming in to help you in your house. So again, you don't want to go it alone. We offer complimentary consultations on the front end. I mean, some guys, some advisors could charge you $500 an hour and talk to you for 4 hours. You pay them two grand, and then you're like, okay, well, I don't necessarily like what you had to say. Or she. So that's why when you work with us, our clients never pay me a dime. You know, they call the office or the email me 9083592861 or to go on the website, my own website. Even besides save money by ABC.com, I have obviously my practice website where they go a lot of times to reach out to me and so forth. Yeah, it is so wrong to think that you're going to pay a lot of money to work with someone who does this every day, all day for weeks, months, years, decades, like myself. It doesn't have to be that way. There's two types of models, and I'm in the camp of the if you believe in me, you believe in the plan. You believe in what we went over. You understand it? It makes sense to you both financially, mentally, emotionally. Then let's work.

Jim:
Together. So not only was I wrong, but I was so wrong. Who was really making it hurt today? All right. Number two, if your employer doesn't offer a pension plan, there is no way for you to create a personal income stream you can never outlive. Bob, is that right or wrong?

Bob:
Unfortunately, Jim, that would be another. That's wrong. You can anyone can create their own lifetime income stream, whether it be an immediate annuity, whether it be a fixed index annuity with a lifetime income benefit rider. Annuities allow anyone to protect and grow their wealth and establish an income stream they can never outlive. So example, another example, all that stuff going on here. So I got a client. He left a large insurance company and went to another company and he, you know, after we did all these other things together over the years, this is the same couple that bought a short house down and I guess this past summer, which we planned on because that was one of their main goals from eight years ago and we made it happen. He has a cash balance pension. So what does that mean? And I'm bringing it up because this is totally what I'm pretty much doing for him and her. So I'll bring it up with with the audience here. So instead of leaving his lump sum and getting a guaranteed income at age 65 of whatever the heck it is, I won't get into his numbers, but it's his pension. I'm able to move it over into a fixed index annuity with or without an income rider that has or does not have a fee. Grow the money potentially so we control the asset. So God forbid he doesn't want to take income from this asset, he doesn't have to. And the guaranteed income I can provide, even if it didn't grow a dime, is about 20% more than what the pension offer is just to him.

Bob:
That's not even saying, okay, I want you to pay my spouse in me if he left it where it was. So again, annuities when used properly and utilizing the proper annuity again could be injunction also with high cash value life insurance as well. And it doesn't matter if you're not healthy. I know how to get around that. You know, it just makes your life a lot easier. Fixed indexed annuities are tied to certain indices or buckets. Allows you to get market gains without market risk. You're not physically in the market. Your principal is 100% protected. So the worst year you will have if you have an annuity with no fees, charges, riders that you choose to put on or not, your worst year is zero. Zero is the power of zero. How many people out there, whether your audience today or just in general, the world, the world, how thrilled would they be if if they made nothing since January 1st? How thrilled would they be? Pretty. Pretty happy, most likely. So that's the answer to that one. It was another, but I had a I had to jump all over it because I'm living these things daily, weekly, monthly with my own people, you know, whether it be referrals from CPAs, my own clients, my clients got help me, I'm getting old enough. My clients kids now come to me and it's like, Oh boy, what happens?

Jim:
We're at the time, go right. Okay, let's get to our third. Right or wrong, you won't learn much. Bob, Is this right or wrong? You won't learn much in a first appointment with a financial advisor or professional slash professional. Bob, Is that right or wrong?

Bob:
Unfortunately, Jim, that would be another. Basically once we have.

Jim:
You doing that buzzer to me.

Bob:
I do like I do. I do like the buzzer. It reminds me of, Oh, God, what is it? That show. Oh, gosh, was it Richard Dawson? What is the show now?

Jim:
You might you might be dating yourself a little bit here, Bob. It's before my time.

Bob:
Well, Richard Dawson. But someone else took over. Steve Harvey took over. Family Feud.

Jim:
Oh, Family feud. Okay.

Bob:
Family feud. Or if you got it wrong, you're on the board up there. Like So anyway, the answer is wrong. Basically, what we do, we'll try to have an initial chat just to see if we're comfortable with each other. And it makes sense to try to try to work with each other. So from there in that first meeting, I'll learn by asking questions, which is sometimes an art that some people in my industry fail to execute, ask questions and listen to the potential client what is they're trying to accomplish, where they're at. Just really you're kind of giving me you're telling me, give me an audio book where you are now and what you're trying to accomplish, what's bothering you, where you want to be, where you've been, where you are now, where you want to be. We can accomplish that even on that first call if you're comfortable enough, you know, and you can book an hour with me, it's cool then that to be 15 minutes and see you like if you book an hour and we only use 20 minutes for whatever reason, it's fine. We'll go through your situation. And if you know your numbers, I don't need to count numbers. I don't need Social Security numbers. I just need numbers like what's where. And then even by saying names of insurance companies and so forth, a lot of times I'll know or I'll talk in my head what you have.

Bob:
So what it'll will do is you have nothing to lose. You're taking some time. But I can look at what you have, whether it be brokerage, whether it be variable annuities, other annuities, fixed annuities, whatever you have, and see what kind of expenses you have or at least create a question list, a little homework for you to find out the answers. If I can't see them or you can't explain them to me. And then from there, we'll show you how to protect and grow your money without investing in the stock market. I personally have probably less than 2% in the actual stock market and of which which I mentioned last week. I'm going to recap Recharacterize my wife's former employer sponsored retirement plans to Roth. Why? Because they're down. I just let them ride. It was such a small part of our portfolio in our life. I just let them do their thing. I worry about all the other I'm safe money, Bob. I deal with all the safe money. So and that's majority of what we have for the reasons I explained earlier in the show. But yeah, you guys, everyone listening, you deserve to know how much you're paying for all this stuff that they say they're doing for you, these services, you know, and have a secure retirement that you've worked hard for. Like it's not easy. All of you have put money away all these years. I applaud you. I applaud you because that people paying themselves first, you would think it's a common sense thing.

Bob:
It isn't. Know how long I've been paying myself first and I probably go farther than this, but I'm going to say, since I was 23 years old, I started my first life insurance policy, permanent whole life policy when I was 23 years old at MetLife. It was the equivalent of putting money into an IRA at the time, which at the time was $2,000 a year. Right. Fast forward that policy today. Now, granted, it's been 30, gosh, 30, almost 33 years. It's that little 2000 I've been doing every year, 160 a month or whatever. It works out to be 66, probably $0.66, if I want to be exact. It's worth over 130 K tax free right now in the death benefits, well over 300,000. So I created a bank with that policy that I did when I was 23 years old. I even know how to be my own banker. Basically, I didn't know how to do it. They didn't teach me that. Metlife didn't teach me. I learned it when I went on my own, you know, and I was looking at different things and how could I do better for people and myself? And I learned I learned these things. When you do something for, gosh, three, three decades plus a few years, you hope you learn some stuff along the way. And boy, did I learn.

Jim:
Wisdom, right, Bob? You gained.

Bob:
Wisdom. Wisdom? Yes, wisdom. Wisdom.

Jim:
That's exactly right. Well, I'm over three today. I'm oh, and three prefer oh, and three stay on. Right or wrong, it sounds like my fantasy football team. So let me see if I can get this final one right. Right or wrong, Bob, From a fee perspective, ETFs, exchange traded funds are far superior products compared to mutual funds. Is that right or wrong?

Bob:
Drum roll. They'll just say you are correct. All right. All right.

Jim:
Very good. Luckily, we have post-production when I'll put in that ding.

Bob:
There you go. Ding, ding, ding, ding, ding. So ETFs are much more efficient. There's no 1281 fees like mutual funds. And they can offer the same level of diversification because the trade, just like you're trading a stock, like there's a share price, you could buy it in the morning, sell it 10 minutes later, you could sell in the morning and buy it back later in the day. If you're one of those people again to learn more about these things regarding ETFs that can be traded within a day and versus mutual funds and all that. Definitely tune in. Tune in on weekends. 8:00 AM on WBRC Radio, one of 7.3 FM. And these are just some of the insights you're going to learn during these shows that we have. All I'm trying to do is provide information, knowledge, value, and you want me to apply these potential concepts to your life to make your life better. I'm more than happy to help you out.

Jim:
All right, Bob, great job this week on right or wrong. Hey, if you're about to retire and you've lost more than 25% in the market this year, you need to seek professional help. And if you go through another year like this, you will be left with half of what you had before. So please give Bob a call today at 900 83592861 or visit the website Save money Bob. Dot com. You owe it to yourself and your family to take action and to protect your money. Bob, there is an article in the Wall Street Journal this week and the title was Savings Needed to Retire is on the Rise. That's our headline in today's Inflation demonstration.

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

Bob:
Yeah. So obviously with everything costing more and more and more, you're going to need more money. It was like a catch 22 up until we had inflation started first, then finally some of the rates on some investments that have a fixed rate to them started to creep up as well, and they've continued to rise. But Northwestern Mutual survey found that many Americans are worried about their prospects for retirement. So basically, for most, 40% of four in ten people said they don't think they'll have enough money when they retire. So nearly half of the people surveyed also said they can envision scenarios where Social Security no longer exists. Now. I don't think it's going to disappear. It's not an entitlement program we put into it. We all put into it. Now, can they change? Have they done stuff in the past? Have they done things in the past to change it? Of course. Your retirement age. Someone like myself, it's older than someone who's ten years older than me. So things like that. So will it not exist? I would hope that's not going to be the case. Will it be modified? Probably. Probably modified or. And or in a combination would increase taxes because that's the big thing. You want to have your money in a tax efficient manner moving forward, especially when you take it out.

Bob:
I know it's hard when you're working to try to do Roth conversions and so forth, and sometimes you don't have access to that through your retirement plans at work. But know, keeping more of what you have is a goal we have. It's safe money, Bob. That's what I do. It's protecting the money, growing the money, trying to make it most efficient tax wise as possible while achieving the goals that you want. So another tidbit here is the government increased Social Security checks by 8.7% starting for next January. It's the largest cost of living adjustment to benefits in 40 years, for decades. The Internal Revenue Service also made adjustments for former savings accounts. So, of course, they they want you to put more money away, but they also know they want to get more tax dollars down the road because it's pretax dollars you're putting away. So they've increased the contribution limits by 2000 to 22500 for 2023. So about 60 million Americans, American workers, I should say, have 41k plans, according to Investment Company Institute. So that's a lot of people with a lot of qualified money. As you know, I'm going to throw this power tip in there. The CARES act, know, whatever, say something with nice words. It's usually not better for us. The CARES Act allow the RMD required minimum distribution to be extended to starting at age 72.

Bob:
However, however, if you don't tap into much of that and you happen to pass away, your beneficiaries other than your spouse have up to ten years and that's it, to distribute the money and have the taxes paid on it. I have a situation, a couple of situations, three of them actually. I think it's at least three. Yeah, three of them where people are inheriting money. It's not the spouse. And I think it's a sister, a daughter. And a brother. And that money has to be taken out over the course of ten years. Could be all in year ten. It could be all in year one. It depends on some cases. The income tax bracket of the person inheriting it is low enough where they're almost virtually paying no tax on that distribution. If you do it over time, spread it evenly. In other situations, we can't do that. Then the beneficiaries are already still making making six figures, married, filing joints that are making heavy six figures. And to take it out would be horrendous. Tax wise, it'd be like 40% between state and Fed. So we decided down the road in that scenario from a tax situation, we would when she stops working, when he stops working, we're going to strategically pull from the inherited IRA to cover all their main living expenses until we exhaust it, letting the other monies grow and defer and potentially trying to convert some of those into Roth dollars as well.

Bob:
Back to our inflation demonstration. The amount of money a household will need to retire depends on a lot of different things. Many variables, including where you live, your standard of living, whether a person expects to care for parents or children in retirement are also factors to consider. Last week's show mentioned a charity golf outing. I run in the area here for special needs children, and those parents have to figure out are they going to be in a state home, the child? Is it going to be their brother and sister helping them? How are they paying for it? That's a whole nother dynamic. And on the flip side, if you have a parent that needs to have care, you know how you how are you paying for all this stuff? Do they have their own assets? Can it be structured where that money can help pay for them so it doesn't put a burden on on their children financially? Not not not to mention if they're in situations. I've experienced family members taking care of the. Parents. It creates an emotional stress on that relationship, but also in a relationship when that when that child or their kid is adult child is married to somebody else, it takes away from their their life.

Bob:
So. So I want to share a bit one of the biggest misconceptions about retirement. Too many people believe in retirement about saving money. They think it's saving money and reaching that one big magic number. Well, in reality, it's much more about the strength of your income plan than the size of your nest egg. So. All right. So you had a large for one K and it's all in the stock market. And now that number that everybody says, take three or four or 5%, depending on who you talk to. Well, that number is going to go down if you're $1,000,000 portfolio just became 800. Right. So if you're taking 4%, you just went from 40000 to 32000, if that's what you're doing. So what you want to do and again, go to save money. Bob, look, look, a meeting with me, call or go to call. 9083592861. Have one of my staff reach out to you to book a call. You want to have again, you want to take control of some of the money. Why let everyone else be in control of it? So if you can control taxes, control that, if you control fees, control that, you can control risk. Control that. Control some of it. I'm not saying take all of it, but some of it and some people don't want any in the market.

Bob:
They don't. Others, they're okay with some, you know, but it's got to be the right percentage. And the right percentage isn't some numbers in a book. It's it's basically what's most comfortable based on our conversations and what you want to see happen and then seeing what's available, putting a plan together and seeing if it makes sense and then executing it. It's as simple as that. So to all your listeners out there, just, you know, if you don't I can't emphasize this enough. If you don't have an income plan in place for your retirement, We think I think we think it's not just me. Remember, I have a team. I have a team of people for different things that help me help you. So you could really, really use use our help. We can build you and your family a plan that has your money working as hard as you work for it. So please give us a call today. 9083592861. Or visit our website at Save Money Bob and book a call with us your earliest convenience. But please don't hesitate. It doesn't cost you any money. I'm willing to give you some time to see where you're at and see if we can help you get to a better spot than we are now.

Jim:
All right, Bob, great job this week. We thank everybody, of course, for joining us across this great nation. On the podcast side, if you haven't done so already, please subscribe Apple, Google and Spotify or wherever you get your podcasts and leave a review. And if you're listening locally on WBRC, be 107.3 FM. We thank you for making us a part of your weekend. You can catch new episodes of financial freedom with Safe Money Bob every Saturday and Sunday at 8 a.m.. And Bob, as you put it, at one point, a couple of shows back. If you love what you heard on Saturday, you can listen again on Sunday, is that correct?

Bob:
Absolutely, Jim.

Jim:
Well, we thank everybody for joining us today right here on 107.3 FM, WB, CB Financial Freedom with Safe Money. Bob, we'll talk to you next week. 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 or pick up the phone and call 9083592861. That's 9083592861. Not affiliated with the United States government. The agency does not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. A married life assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.

Producer:
I'm Matt McClure with the Retirement Radio Network. Next time you head to the pharmacy, you could be in for some sticker shock. So do you need to plan now for higher drug prices in the future? First, let's spell out the problem, and it's not necessarily a new one. Prescription drug prices have been rising faster than inflation for decades, according to AARP. To put it in perspective, the group says if gas had risen as much as prescription drugs have over time, regular unleaded would cost more than 12 bucks a gallon by now. For seniors on a fixed income, being able to afford prescription drugs is essential. Ron Mastro, Giovanni of Health View Services recently told CNBC. Whether you're affluent or whether you're the average person.

Producer:
I'll tell you what.

Bob:
When you look at your Social Security check.

Producer:
You're paying for health care. Prescription drug insurance plans provide some coverage, of course, but not all plans are created equally. And it's important that you know the details of your plan, especially what it will and won't cover.

Bob:
You really need to.

Producer:
Look at the coverage in those types of plans to determine what.

Bob:
Makes the.

Producer:
Most sense for you. Lawmakers in Washington have been trying to come up with solutions on several fronts. They include things like allowing the government to negotiate drug prices, capping the cost of insulin and more. But those proposals have stalled. They were part of President Biden's build back better plan. It passed the House, but that massive piece of legislation hit a roadblock in the Senate, even though surveys show big majorities of U.S. adults approve of those measures. It seems like everyone agrees something needs to be done to control costs but just can't agree on exactly what that might be. In the meantime, what should you do to prepare for higher drug prices in the future? Well, putting more money in savings surely couldn't hurt, according to the experts. But that can only go so far. And what can you do now to save money at the pharmacy? Well, that is a key question to consider as inflation continues its upward climb with the retirement. Radio Network. I'm Matt McClure.

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