11.18.22: Audio automatically transcribed by Sonix

11.18.22: this mp3 audio file was automatically transcribed by Sonix with the best speech-to-text algorithms. This transcript may contain errors.

Producer:
Investment Advisory Services are offered through Foundations, Investment Advisors, LLC, Foundations an SEC Registered Investment Advisor. The content provided is intended for informational and educational purposes only. The views, statements and opinions expressed herein are those of the individual speakers and not necessarily those of Foundations and its affiliates. The information contained herein does not constitute an offer to sell any securities or represent an express or implied opinion or endorsement of any specific investment opportunity offering or issuer. Any discussion of performance or returns is not indicative of future results. Each individual investor situation is different and any ideas provided may not be appropriate for your particular circumstances. Foundations only transacts business in states where it's properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. No legal or tax advice is provided. Always consult with a tax professional.

Producer:
Welcome to Rest Assured Retirement with your host, Jeff Holmes. Jeff is a licensed fiduciary and financial advisor who always places his client's needs first. Jeff 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 Jeff Holmes.

Jeff Holmes:
Welcome back, everyone, to the Rest Assured Retirement show. This is Jeff Holmes, a certified retirement counselor and a certified financial fiduciary. I'm joined here by our executive producer, Sam Davis. And we just had a little discussion just a minute ago on weather. And you said it was how's it back in Atlanta right now?

Producer:
It's so since Sunday, Jeff, we've been looking at daytime temperatures in the mid to high forties. And today the rain came and the temperature stayed low. So it is very cold and feeling like winter here in the south.

Jeff Holmes:
Well, it's feeling like winter here and but we're in the sixties and sunshine so we're pretty that should make all of you out there feel much better. And this is obviously being prerecorded, this show. And when you hear it on Sunday, from what I understand, will be in the seventies. So you can put away your parkas when it's in the sixties, like we all do our coats and go and enjoy the sun. So glad you're all here. And first off, we've always mentioned that you can book a complimentary consultation online. You go to Rest Assured Retirement dot com RestAssuredRetirement.com And then you can also call our number 480 454 9191. If you have questions you can do either one You can listen to our past episodes on that website and or wherever you listen to a podcast. So please reach out. We love hearing from and helping our listeners. Now there's a very important reminder that is going on right now, and that is needs to be we'll be doing this every week until it's over. And that ends December 7th. And any of you on Medicare know what that is. It's the annual enrollment period with less than a month remains in this year's enrollment period. You need to really take a good hard look at that. If you haven't spoken to your agent, let us know how we can help your Medicare needs and how can you do that? Well, calling in to that number 480 454 9191.

Jeff Holmes:
And we do have an expert on staff in the Medicare arena. That's Jocelyn. She's my boss and wife. And a lot of you gentlemen out there can relate to that. So basically, she's got all of the information you would need if you want to get a second opinion on that. So don't hesitate to get us a call today. Very important, because if you are taking a good look at your Medicare, whether it's a supplement or advantage, every year, you may find that there are savings that may be able to take advantage of with any changes, especially with the drug plans. What's our overview for this week's show? First off, we are going to have a quote of the week. We'll get into really popular segment, right or wrong. Then we're going to talk about what's going on with cryptocurrency. And then we have a cost cutter. And then obviously I didn't mention this, but the name the name of this show this week is getting back to the get back to the basics, how to retire in today's difficult financial landscape. So we're going to be discussing get back to the basics. And then also we have an inflation demonstration. That's an ouch when you hear that. And then we will get into this week in history. So, Sam, what about the quote of the week here.

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

Producer:
This week's Quote of the week comes from Warren Buffett. Warren Buffett gives us a lot of good financial wisdom, and his quote of the week for this week is do not save what is left after spending. Instead, spend what is left after saving. And I love this quote from Warren Buffett, Jeff, because it really talks about rearranging your priorities for a lot of people. They are saving after they do their spending. And Warren here is saying make sure that you prioritize saving for a rainy day because that rainy day does come for a lot of us here in America when we get to our sixties, looking at stepping aside, retiring and living off of all the hard work that you've put in over the years. So I love this quote from Warren Buffett. What do you think about that?

Jeff Holmes:
It's excellent. It kind of goes back to the. Also, there's another statement we obviously learned years ago where you put the money in the savings, take 10%, say that, take 10%, give give it away and then live on 80%. So very, very successful people use that. And it does work very, very well. Couldn't have said it better there, Sam. You did a great job on that one.

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

Jeff Holmes:
Okay, Sam, if you could go through and ask the questions there, and I'll do my best to answer them right here.

Producer:
All right. Sounds good. So first item on right or wrong, bonds are on track to have one of the worst years ever in 2022. Jeff, is that right or wrong?

Jeff Holmes:
Well, I'm really sorry to have to answer this for everyone, but that is right. It's according to The New York Times, this has been the worst time for Bonds since 1926 and maybe in centuries. According to that, during the times of rising interest rate, the older bonds may you may be currently holding are worth less because newer bonds offer more desirable, desirable rates. So not a really good environment when they're raising rates like this for bonds. And this is why we recommend replacing your bonds with something like a fixed indexed annuity. We'll be getting back into that here a little later in the show on how those work compared to Bonds, and that's another way to protect your hard earned money. Eliminate fees. That's a big one and guarantee yourself an income you can never outlive. So what's next.

Producer:
There? All right, Jeff, next item on right or wrong, cryptocurrency is a safe and effective way to grow your money in a short time. What do you think, Jeff?

Jeff Holmes:
Well, we could go back to 19, the late 1990s when everybody was investing in tech stock. Of course, I've had younger clients call in about cryptocurrency and really that answer is is wrong. Cryptocurrency investments like Bitcoin offer no consumer protection and are incredibly volatile. One of the world's largest crypto investing companies filed for bankruptcy last week. Bankruptcy last week. And it mentions that in The Wall Street Journal. Please don't risk your hard earned retirement dollars on an unregulated cryptocurrency market. There are safe investments out there that can provide you market like gains with no market risk. So you need to look at that. And here's where people get into trouble with things like this is what they do is they think, okay, I've got that. And we talked about this in the last last week's show. I've got to have the biggest nest egg. Whoever has the biggest nest egg is going to have the best retirement. Well, you know, I can see nodding your head there, Sam, is. Yeah, it is. It is not. It's more about having income, which will also get into that here a little bit later in the show. So very important to remember that. Okay, what's the next question?

Producer:
All right, Jeff. Third and final item on this week's Right or wrong. Here it is. Higher interest rates combined with a down market make now one of the most opportune times to consider a fixed indexed annuity.

Jeff Holmes:
Well, that's definitely right. With interest rates at the highest level since 2007, annuity companies are able to generate more interest that they invest in options. And this is a little bit on how they work. When you invest in an idea, your money is tied to an indexed without being directly invested in it. And what they're doing basically is they're taking your gains and investing it in that index. Your principal is guaranteed. They don't touch that. And so financial excuse me, fee holders get to participate in the gains of an index, but are protected for potential downside. There's always a saying out there, zero is your hero. So if that index goes down one year, you still have all your principal or what you had gained the previous year is locked in. Very great way to go, especially in retirement. The features of these annuities allow people to sidestep the market and take advantage of gains without risking their principal. Very important. And if you feel like you'd like to know more about those, you can go to Rest assured retirement dot com. RestAssuredRetirement.com

Producer:
That's actually going to bring us to the end of segment one. So you heard there in the right or wrong, some news about cryptocurrency lately. We're going to talk a bit more about that when we come back from the break. You're listening to Rest Assured Retirement. You can visit Rest Assured Retirement dot com or give Jeff a call at 480 454 9191.

Producer:
You're listening to Rest Assured Retirement. To schedule your free no obligation consultation with Jeff visit Rest Assured Retirement dot com. RestAssuredRetirement.com

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

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

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

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

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

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

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

Producer:
Helping bring you one step closer to financial freedom. You're listening to Rest Assured Retirement.

Jeff Holmes:
Welcome back to the Rest Assured Retirement show. This is Jeff Holmes, a certified retirement counselor and certified financial fiduciary. We are going through getting back to the basics in this show. And one of those is we're going to talk about is what's going on with crypto. From what I understand, the cryptocurrency market started in like 2009, so that ought to be a little bit of a hint about what's going on there. It's one of the world's largest cryptocurrency exchanges, which is FDX. That's the one we mentioned earlier that has filed for bankruptcy and is now under a criminal investigation. Bitcoin itself suffered its worst week in five months and is now down 75% over the last year. Not good. That's not a very good time and it hasn't been a very good time either for celebrities Tom Brady and Shaquille O'Neal, who have made major investments in the now bankrupt company, while other organizations such as Major League Baseball and the NBA have sponsorship commitments with that company. So not a very good situation going on there with cryptocurrency. I know there a lot of people talking about that not that long ago, but it has not turned out very, very well on that. So and what I understand is we do have a clip we'd like to play that's with Charlie Munger and Warren Buffett.

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

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

Producer:
Yeah. Jeff, I love that audio from Warren Buffett and Charlie Munger. They are always straight to the point, especially when it comes to these financial topics that they're so experienced in. And they this piece of audio, I mean, this was from a couple of years ago. So these guys kind of saw the writing on the wall with cryptocurrency. And it could be that this bankruptcy filing by FTI could be the first domino to fall. But we will see. The moral of the story is folks definitely don't gamble with your your hard earned retirement savings in a volatile market like cryptocurrency. What do you think, Jeff?

Jeff Holmes:
Well, I absolutely think that and there's a reason for that because back in the early 2000s, I had a couple come in my office and they were, you know, they walk in like they had lost a son or daughter and they were very down. And we started going through their situation and they had 40,000 they said, find a place that's safe for our 40,000. I said, sure, we'll look around this. We started discussing what their goals are with that and that sort of thing. And then now keep in mind, this couple was I think he was 74. They were in their seventies and they had been told to invest in tech stock back then. And we all know what happened with tech stocks. And I finally got to the point where I said, I don't want to be nosy, but how is life going for you? You seem very down right now. And they said, well, the reason we're down is this 40,000 used to be 250,000. And within a very short time it dropped. So they were just trying to make up for that and he was going back to work. So that's not a place you want to be. So please keep in mind with all these you know, just remember, if it's too good to be true, probably isn't. You know, just remember that.

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

Jeff Holmes:
Did you know that diesel prices are on the rise again? An article from CNBC said that diesel prices have increased 33% for November deliveries and are expected to go higher. Ouch. Diesel prices are. Diesel prices affect shipping costs. Imagine that for food and other essential goods. Americans are now saving less also since any point since the Great Recession. And why do you think they're saving less? Could it be something called inflation? Because in September, Americans saved just 3.1% of their disposable personal income, which is down from 7.9% in September of 2021, the second lowest rate since April of 2008, when the country was in the middle of the Great Recession. And this came from the US Bureau of Economic Analysis. And if you just look at there's a chart that they also have in this article and it shows going back to the for 2020 on how the price of diesel has gone up, it used to be probably close around the two or $3 range for a long time and then just start shooting up in to July of 2021. So a little bit on inflation there. Obviously, that's why we spoke about our inflation demonstration last week on the cost of food for Thanksgiving. So it's all basically tied together there. So we'll go ahead and end this for an hour and we'll be back in just a few minutes.

Producer:
Yep. You can give Jeff a call at 480 454 9191. That's 480 454 9191. Or you can visit the show online at Rest Assured Retirement dot com. RestAssuredRetirement.com Get in touch with Jeff take advantage of that free financial consultation and get a plan in place for your retirement.

Producer:
You're listening to Rest Assured Retirement with Jeff Holmes visit Rest Assured Retirement dot com. RestAssuredRetirement.com

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

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

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

Andrew Pelosi:
Some people will see a savings of perhaps 1000 for during tax time on their tax return. Others might see a little bit more. Certainly the brackets have changed. So the those who are in higher brackets will probably see more savings than those who are lower brackets. But across the board, everyone's going to see some kind of savings.

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

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

Producer:
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 Dot Radio Network powered by amerilife, I'm Matt McClure.

Producer:
You're listening to Rest Assured Retirement. Here's Jeff...

Jeff Holmes:
Welcome back to the Rest Assured Retirement Show this Jeff Holmes, a certified retirement counselor and certified financial fiduciary, joined here with our executive producer, Sam Davis. And we're getting into the next segment, which is back to the basics. The rule of 100. And that is really getting back to the basics. It's a rule that states that you should take 100 and subtract your age. The result is the maximum percentage of your money that should be at risk. Now, why is that important? Especially after talking, just getting through, talking about cryptocurrency and riskier investments. What you have to ask yourself, why is that important? And you can answer that for yourself. But I will tell you this, that how much can you afford to lose when as you get closer to retirement? And that is really basically why this rule came about and an example of how it works. So you have a little better understanding of it. Is if you are 60 years old and. Take 100 -60. The result is 40. And what that means is you should not have more than 40% of your assets at risk. Because you have less time to make up for any big losses. Another example is if you are 30 years old and take 100 -30.

Jeff Holmes:
The resulting number is 70. That means you should have up to you can I should say rather, that you can have up to 70% of your assets at risk because you have time on your side as a young investor. Very important to know that. And the thing about that, you need to. Be always taking a good hard look at where you're at in that situation. If you are in a situation where you're invested like a 30 year old and you are 60, you may want to take a good, hard look at changing things. Investing during retirement involves managing your risk. That's why we use annuities. Your money is 100% protected and provides you an income that you cannot can count on and cannot outlive and use each month. So. That's one of the things that we find a lot of people do, is they end up using that rule. But when they do that use that rule, they they think that 40% invested into bonds is also a savings place. Well, we've all known what that has happened this in 2022 and. Could if anyone predicted 2022. Have you heard anyone, Sam, at all? Or is it just me?

Producer:
You know, if I could have predicted 2022, I would have made a lot more money this year, Jeff. But no, nobody. Nobody has a crystal ball. You know, it's there's people all the time that are out there trying to predict, you know, hey, what's going to happen in the markets in 2023? But everybody's crystal ball is still broken. And so it's it's hard to look into the future too far.

Jeff Holmes:
You bet. And that is why a lot of people are panicked now because they have the old 6040, which is what we're getting ready to go through in the next segment. And one things you have to keep in mind, many dividend stocks cut dividends during the COVID 19 pandemic, and a lot of people were relying on rental income, which isn't guaranteed. They during the pandemic, many renters basically I don't know if you remember that they could not evict those tenants even when they weren't paying rent. So it wasn't a very good situation to be in. And during the coronavirus pandemic, annuity holders did not lose a dime, and those who had already turned on income receive their checks on time and in the full amounts. So that's why we do like those for providing the income, because they're not tied to a situation where you have that money at risk.

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

Jeff Holmes:
And it's talking about investing in indexed universal life insurance in your forties and fifties. And remember, it does say in your forties or fifties, it's important to do it early on because it does take time for these to work well and they do have to be designed correctly. So investing in a IUL pre retirement will help you eliminate future tax increases and generate more tax free income at age 67 and throughout retirement. Now we're going to be getting ready to run out of time here. So we'll continue on with this in our next segment. So we'll be back in a few minutes and continue on and then get into what happens with a bond replacement.

Producer:
Are you interested in protecting your assets from market volatility, rising taxes and economic uncertainty? Then tune in to Rest Assured Retirement with Jeff Holmes to learn how you can protect and grow your hard earned money. Rest assured Retirement Sundays at 1:00 PM right here on 960 The Patriot. Protect your hard earned money today and schedule a free no obligation consultation now at Rest Assured Retirement dot com. You're listening to Rest Assured Retirement.

Jeff Holmes:
Welcome back to the Rest Assured Retirement show. This is Jeff Holmes, a certified retirement counselor and certified financial fiduciary. We just were going through our cost cutter segment. Invest in indexed universal life insurance in your forties and fifties. That's very important that you do it early on, like I just mentioned. And let's go through an example of that and how that works. There's an example of a 55 year old man. He invests $2,000 a month into what they call a ten pay i ull for ten years, 24,000 a year for ten years or 240,000. And he no longer has to pay any monthly premiums after that ten year. So he's done. So he's already funded part of his retirement. It is estimated that he will be able to take tax free withdrawals $25,600 each year, starting at age 67 for the rest of his life. And he will also have $480,000 a death benefit to protect his family in case he should die too soon. A very good thing to do as part of your retirement planning. This is also many of these rules also have other riders on those. Not only are you able to get that tax free withdrawals, but they also have something that will help out any potential assisted living or long term care situations that you may run into.

Jeff Holmes:
Now, really, there are only two types of truly tax free investments, and those are Roth IRAs and life insurance. And I have to make that caveat. Being from New Mexico, what they would say there, these are the only two legal ways of getting truly tax free investments. That's what happened in New Mexico. Not so good sometimes. So why not take advantage of both of those that generate tax free income and tax free withdrawals from those two types of accounts? Both of those will save you 20 to 30% by eliminating the tax burden on your distribution. So it's a huge deal to get into that if you have time to do that And why it says 40 to fifties, it's like is like cooking a nice turkey, which you're getting ready to do this week. It does take a lot longer than it does a lot of other things out there. So it does take time to get that properly cooked and ready to go. Okay. So what we're going to do now is we're going to get into our next segment about bond replacement. And this is something where we always like to do what we call our listener call out. And if you've lost money on bonds this year, we expect you have, because most everyone I've talked to has.

Jeff Holmes:
If you haven't, please call in at 480 454 9191. We'd all like to know about that. And the reason we say that, by the way, is because New York Times says that this has been a devastating time for Bonds since 1926, like we went through earlier. That's nearly 100 years ago. Then we think it's a very good idea to at least understand a bond replacement strategy. You can contact us and let us know how to help you delete those fees that you are paying on your bonds and stop the bleeding, as they say in that portion of your portfolio. And now we're getting ready to go through a chart and you will see it on the go to our website. Rest assured, retirement, you'll see that what I'm going through and if you've you may have now if you've been listening to this show to start this all out, you may have heard this statement already more than a few times. And the statement is you don't know what you don't know. So as we go through this chart, the question is, is it important for you to know more about all of your options when you plan for retirement? And if you believe that answer is yes, should you do it earlier or later? Because what we're going to do right now is we're going to go through something that most people aren't aware of.

Jeff Holmes:
They've spent 30 or 40 years in stocks and bonds and ETFs and mutual funds, whatever the case may be. And they don't know about changes that would be helpful to them in retirement. And the second listener called out to like to bring up before we get into the chart is if you are in the retirement red zone. Now, a lot of you are basically watching football today and everybody knows what the red zone means in football. Obviously, you're with the team. Hopefully you're rooting for is within 20 yards of the end zone. Well, retirement red zone, is that within if you're within five years of when you're playing to retire or you have retired in the last five years, you may want to give us a call so we can test the strength of your existing retirement plan and hopefully you have an existing retirement plan. If it's just the same accumulation plan that you've been using since you started working, you may want to look at designing a very stable and strong retirement plan. I have that CRC designation and if you go to that website, it says choosing a professional to help you prepare for retirement and manage your retirement income may be. Be one of the most important decisions you you'll ever make.

Jeff Holmes:
And that is very true. I also heard something that was quite disturbing one time where they found that people were spending more time planning for their vacations than they were for their retirement. Keep that in mind. The sooner the better. Now, let's get into that chart of the bond replacement and versus investing in a fixed indexed annuity. And one of the things about this, you know, do you want to find out what you don't know now or do you want to wait till your seventies or eighties and say, well, I didn't know that I wish I had. Well, hopefully you want to find out sooner than later in this example. There's a lot of numbers here now, the numbers that you're looking at. I'm going to go through those and kind of shine some light on this because I light on some numbers and understanding of what's going on with those numbers can be very helpful. The first one I'm going to point out is down in the middle of that chart, it says average rate of return. And this is for the 2020 performance. And why would we look at 2020? What kind of year was that? Was it good? Was it bad? How was it for you? Sam, what do you think of 2020?

Producer:
Boy, Jeff, 2020 was a doozy of a year. Pardon my my Midwestern vocabulary there. I got I got engaged in early March, and then the whole country went into a lockdown by mid-March. And we went through incredibly volatile markets, lockdowns. As we look to avoid the impact of COVID 19, so a volatile year, it will go down in history. Hopefully that's the most memorable year of my life.

Jeff Holmes:
Yeah, there's some year. We all remember it well. So what they did on that line. Thanks for sharing there, Sam is they take the Moody's B AA corporate bond and you're wondering what's be AA. Well, there's a definition for that. It's a rating. B, a rating represents a relatively low risk bond or investment. Banks are allowed to invest in b a rated bonds health. But however, you need to remember that BAIXA is toward the bottom of investment grade bond ratings being only one grade above junk bond ratings. And everyone knows what junk bond. And if you don't, please call in 480 454 9191. We'll be glad to go through that with you. The risk-averse investors must therefore exercise caution and be AA investments, especially if the rating has recently been downgraded, which means possible issues with that. So what was their interest? If they're paying out then and what did they earn? They was average rate of return. 3.32. You go across to the fixed indexed annuity, which was using an index from Barclays called the Atlas five. And during that same year, it did just under 7%. And you had guarantees on that. Now, this chart is taking into account a client portfolio of $1,000,000, 600,000 of it is in securities, 400,000 is in bonds. Now if you look across. The area where it says 400,000 in bonds and 400,000 in fixed indexed annuities. You'll know that that's the 6040 split for people that are in their sixties. And that's what a lot of people are in when they're getting close to retirement. One of the issues with that and you have to look at this excuse me, there is 1.1.

Jeff Holmes:
5% is an average advisory fee on these bonds, and that comes to $6,000 a year. There is no advisory fee. And on the fire you have, you can avoid that now. Why is that important? Well, you have 6000 a year coming out now. How long do you plan on being retired? We'll just think about that for 20 years. Times 6000. That's 120,000 a year. If you're looking at 35 years like it says on the next row there, that's 210,000. In fees. That's a large number. So you really may want to look at. And do a comparison. Know all of your options and know, you know, maybe you have a situation where bonds is going to work for you. Maybe you don't. Wouldn't it be nice to at least know that? And you'll notice as we go through this retirement planning in this show, we always are looking at the best options for people. And we like to show comparisons and we have software to do that. So when you ask for that free consultation, what we can do is we can show different ways to look at your overall plan and which ones will potentially work best for you. You never know what that answer may be. We don't know until we find out more about your situation. And the software we use is does stress testing for your retirement. Where we take into account any potential long term care situations, any market situations that may come up, heaven forbid you lose a spouse. Also, it is simple enough to where if the one only one spouse is taking care of retirement planning, the other can understand that.

Jeff Holmes:
And it's not any of the software I talked about last week where they use what I call a well, what it is, is Monte Carlo analysis and they'll give you a 95% chance of success. And back then, what I told everyone is okay and you need to think about this for a minute. Just think about them telling you you've got a 95% chance of success. What does that really mean? Have you thought that through a little bit? And do you hopefully if you listen last week, you know the answer. The answer is there's also a 5% chance of. Not making it to the end of retirement age 95. And I always asked, I was like to ask the question, let's say you're getting on sleepless night airlines and the pilot comes on as everybody is fastening their seatbelt and says, listen, folks, we found out we're coming up against some headwinds. There's a lot of going to be a lot of issues coming up. And we have a 95% chance of making it there. There are no places to land in between now and our location. So there's a 5% chance we just won't make it. And the question is, how many of you are going to stay seated on that plane? I know what I'm going to be doing. I'm going to be getting off. You know, that's just that's not quite good enough. And you have to ask yourself, is in a situation where you have only 95% chance of making a retirement, a going to make you feel secure.

Producer:
It's this week in history.

Jeff Holmes:
November 18th. And this is about technology. On this date in 1963, the first push button touch tone phones made its debut into the United States, replacing most rotary dial phones. And I think a lot of you remember those. And also this day, there's excuse me, on This week in November 19th, on this date in 1863, President Abraham Lincoln delivers the Gettysburg Address. The president made an address of 275 words. Explain the union's positions and why the fight was necessary. It fought for four more years. Four months earlier, the Battle of Gettysburg was done, and it was one of the bloodiest battles of the Civil War with the death of 45,000 men. Also, Sam, you had a quote there left over from Abraham Lincoln. If you'd like to go for some of that.

Producer:
Yeah, one more bonus quote of the week from Abe Lincoln. He said, The best way to predict the future is to create it. And I think those are some good words as we say goodbye. And you can get in touch with Jeff online at Rest Assured Retirement dot com. RestAssuredRetirement.com or give him a call at 480 454 9191.

Jeff Holmes:
And happy Thanksgiving, everyone, signing off for now.

Producer:
Thanks for listening to Rest Assured Retirement, you deserve to work with an experienced and licensed expert who will strategically work to protect and grow your hard earned assets. To schedule your free no obligation consultation with Jeff. Visit. Rest assured retirement dot com. RestAssuredRetirement.com Or pick up the phone and call 480 454 9191.

Producer:
Assured Financial is an independent financial services firm helping individuals create retirement strategies using a variety of investment and insurance products to custom-suit their needs and objectives. This material has been prepared for information on educational purposes only. It is not intended to provide and should not be relied upon for accounting, legal tax or investment advice. Advisory services are offered through Foundations Investment advisors, an SEC Registered Investment Advisor. Certified Financial Fiduciary. CFF is issued by the National Association of Certified Financial Fiduciaries. CFF is reserved for financial professionals who have successfully completed a certification and training process established by the NACFF and the AFEA.

Producer:
Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance or annuity products. They do not in any way refer to investment advisory products, rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

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