2.3.23: Audio automatically transcribed by Sonix

2.3.23: 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 to the Rest Assured Retirement show. Today. We are going to talk about important updates to the Secure Act 2.0. And this is going to be a little course in asking the question why? So very important you don't miss this part of the show. A very important what. And basically what we're going to talk about during that is what it means to you, for you and your retirement. Plus, the Smart Retirement Plan series will continue on with smart health and smart care. This is Jeff Holmes on the Certified Financial Fiduciary and certified retirement counselor. And I'm joined here by our producer, Matt McClure, who really helps keep this show going. And Matt and I were just talking. He had a visit to the dentist and he's probably you'll notice these his voice is affected by that, as we all know how that works.

Producer:
Yeah, You know, it's thankfully it's improved a lot over the past couple of days. But yeah, yesterday was kind of rough and the swelling has gone down. Thankfully not all the way, but it's working on it.

Jeff Holmes:
And I went to the skin doctor and got beat up a little bit there too. So we're both licking our wounds, as they say.

Producer:
So you're right. I was going to say we're both on the mend here.

Jeff Holmes:
Yes, for sure. So, yeah, we want to welcome to the show and for sure, if you want to book that complimentary consultation, you can go to Rest Assured Retirement and you can sign up for that. Also, we have our past shows or if you missed part of the show because you're out shopping today or doing whatever you do on Sundays. Oh yeah, there is a game. No, it's not going to be this week. Could be the next week. Yeah. There's a game coming up and we'll discuss a little bit about the Super Bowl two today. Obviously you can go to wherever you listen to podcast, to watch past episodes. And if you just have a quick question, 480 454 9191 you can call. Obviously we record this early and Sundays. Not a good time to call that, but you can call on Monday. So don't miss that phone number. It's 480 454 9191. And what are we going to be talking about today? In addition to the Secure Act 2.0, First off is the all famous quote of the week. Then we'll get into an inflation demonstration with how Super Bowl party items are going to cost you or not this year. And there's also going to be a little bit of a discussion on that. That one, too? I think so. But anyway, we will get into the important updates from the Secure Act 2.0 that is really going to take the majority of the show because it's very important that you understand what's going on with that. And I really recommend that you seriously, if you don't get to hear it all, listen to a past episode. Also, the cost cutter tip of the week, and then we'll continue on with the Smart Retirement Plan series, discussing smart health, how to lengthen your life and live a healthier retirement, how to do that. Also, we'll get into smart care, how to pay for long term care during your retirement. And then we'll finish up with this week's in History.

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

Jeff Holmes:
And I'm going to hand this over to Matt. If you'd be so kind to read our quote of the week this week.

Producer:
I will definitely do that, sir. We've got another great one this week from Warren Buffett and his words of wisdom. Quote, Someone sitting in the shade today because someone planted a tree a long time ago. It's very you know, it's very true. You've got to you've got to plan it. You've got to let it grow. And then you can you can sit in the shade and enjoy it.

Jeff Holmes:
That's right. Does that sound familiar for saving for retirement? Yes. And I guess it says here that Warren is 92 years old, so he's the fourth wealthiest person in the world. Wow. Done quite well.

Producer:
He's yeah, he's done all right for himself.

Jeff Holmes:
Yeah. Yeah, That's a big tree he grew.

Producer:
Exactly. I was going to say, when it comes to money, he's one of those. Yeah, he got. He got to listen to him because he knows what he's talking about.

Jeff Holmes:
Oh, you bet.

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

Jeff Holmes:
And now we're going to get into a article that was done by USA Today about Super Bowl food inflation. And the inflation has driven up prices at home food 11.8% over the past year. That is right. I did say at home, food, that means you're not eating out. But some of you will need to watch the party. Food prices are easily thanks to improvement in their easing, thanks to the improvement in the supply chain, according to the new report from Wells Fargo. So what's going to cost you less this year? First off, we've got avocados and here it says the MVP of guacamole. I'm from New Mexico and I know all of you out there listening from New Mexico are going to take a big issue with that because all we're going to say is, no, that's that was rigged. It's actually the chili that you put into the Whac-A-Mole and having. Oh, yeah, hatch chili from New Mexico hatched New Mexico. Well, there you are. And I know a lot of you when I start mentioning that that are from New Mexico, are wanting to go have some more Mexican food just like myself. It's around lunchtime right now, and I think I'm have to do that afterwards for sure.

Producer:
There you go. Making yourself hungry.

Jeff Holmes:
Exactly. So they say the prices of avocados has dropped about 20% because of the strong crop we had this year. That's really good to hear. Chicken wings are also at the highest level since the beginning of 2019. The price of chicken has dropped to about $3.38 per pound. This the week? Excuse me. We read this right here, pound per week of last year's Super Bowl to $2.65 per pound, according to the report. Now, also, hamburgers have slightly elevated from last year. They have fallen below their peak in July. Frying up some bacon on top of these burgers will cost you less is what it says here. But we skip the bacon and put the green chili on top of the burgers. That's the proper way to eat hamburger. So if you're from New Mexico and certainly I just. I'm sorry. I just have to throw those things in there. Just.

Producer:
Yeah, you got. You got to make it. You got to make it yours, you know? And you know, you know the Southwest. Do you like your spicy food?

Jeff Holmes:
Yeah. Yeah, that does. It keeps us going. And sirloin steak prices. It also dropped $1 per pound since December. And again, it doesn't hurt to put green chili on those two.

Producer:
So just on anything basically I feel like is the answer pretty much.

Jeff Holmes:
Pretty much it works. So and that's what we'll cost you less. What I just previously read there, what will cost you more this year? First was beer. That may be a tough one for some folks, but it's 11% price here compared to last year. Wine is also up 4% and spirits are up 2%. Also, soda, that's a rise in ingredient and shipping costs mean soda is up 25% from last year. Now, obviously, it's not good for you, so you shouldn't be drinking it anyway from what people say. Some people are going to say boo on that. So the report notes that the price hike is unlikely to break the bank, though, because a two liter bottle cost about $2.13. Also, potato chips prices between December of 2021 and last month, or up 22% to $6.28 for a 16 ounce bag. And that's according to the Bureau of Labor Statistics. So, wow, that's pretty pretty high.

Producer:
I mean, hefty prices for for potato chips there. And I would say I'm glad that eggs are not a Super Bowl staple food because the prices would be even higher if there was this big run on eggs this one time of the year because they're already high enough. Sheesh.

Jeff Holmes:
Yes. And like you were saying, saying in a past episode it was there. You're shelling out.

Producer:
Yeah, exactly. Exactly. You are definitely shelling out and and the prices are still accelerating.

Jeff Holmes:
That's right. That's right. So, okay, now we get into the Secure Act 2.0. That's going to go into different segments of our show today. It was passed late in 2022 congressional session and is now a law of the land. So what does that mean for you and your retirement? Now, what late means is December 29th of 2022. So you have to think about this. Why do they pass these regulations so late in the year around Christmas? So I remember another one that passed around Christmas, actually Christmas Eve in 2009 was the what they call the Affordable Care Act at the time, which for some of you remember it not being so affordable on that. So you have to ask yourself, why do they pass them so late in the year when everybody is off? Just a nice question you might want to ask. And also is it for whose benefit is it completely for all of your benefit or is it benefiting the government? So those are some questions you need need to ask. Why, too? And I'm going to go through this and start off with some more wide questions. Here's the overview of how it's going to affect retirees and pre retirees and the first thing that they've done. Now on the surface, I'm going to give you what they've changed it from. First off, the Secure Act originally came out and they changed the required minimum distributions from 70 and one half to 72. And now they are going to begin at age 73 because of the Secure Act 2.0 and will begin at age 75, starting in 2033.

Jeff Holmes:
Now, on the surface, that sounds good. You don't have to pay out those those pesky required minimum distributions. Now, you have to remember, though, there's something going to happen in the future. Now, remember, this is the Congress that's been helping us spend more than what we have coming in. And we now have 31 plus trillion dollars in debt. So you have to say to yourself in the future, do you see taxes going up or going lower? And that's the question you have to ask. And if you wait till age 73 and let the account grow to a higher amount, are you going to have what they call a tax bomb going off as far as when you start to have to pull that money out? So you really need to do some tax planning on doing this, because I've found that these required minimum distributions may spike you your tax bracket. You may see that spike and go into a higher tax bracket. And that ends up being a very costly time in retirement because taxes are one of the higher costs that you can experience in retirement. They also would always tell us that we're going to be in a lower tax bracket when you get into retirement. Well, it may be true. It may not be true. So we're going to take a break real quick for a few minutes here, and we'll continue on with the Secure Act 2.0.

Producer:
You're listening to Rest Assured Retirement with Jeff Holmes. I'm writing in your car. You turn on the radio, you're pulling me close. You're listening to. Rest Assured Retirement to schedule your free no obligation consultation with Geoff visit RestAssuredRetirement.com.

Jeff Holmes:
Welcome back to the rest of the shared retirement show. This is Jeff Holmes, certified financial fiduciary and certified retirement counselor. We are continuing off the show going through the Secure Act 2.0. And if you do have questions on some of the things you're hearing today on this, you can call in at 480 454 9191. It's a very important change in how it's going to affect your retirement. And we were just going through the required minimum distribution changes where they had changed that from age, the required age from 72 to 73. There they're suggesting what you do is you postpone withdrawing your money from your accounts with this change. Again, when you do your retirement planning, you may want to look at maybe not doing that and watching the differences in a formal retirement plan of of comparing that to waiting to 73 or starting earlier when you first retire. So things are very important. Those are things to very important to look at. This also gives you an extended window, though, and it has an extra run way to help you complete a Roth conversion and divest yourself from the IRS and your retirement plan. And that's one thing we've talked about before. A lot of people says they're there for one K or their IRA. Well, everyone needs to know that they have a partner in those accounts. And who is that partner? We just mentioned that it is the IRS. And keep in mind, these regulations have changed to possibly help them get more taxes. Now, how dare I say that? You know, right, that you have to ask yourself, why were these changes made? So also, you want to complete a Roth conversion before you need to start withdrawing for retirement. Actually, the sooner the better on that because you do have a five year period of time that you have to have that in place.

Jeff Holmes:
And if you wonder how that works. Listen to a past show or please feel free to call us now. Also, starting in 2024, RMDs will no longer be required from employer based Roth retirement plans like your Roth four one case. Employers can now contribute matching contributions with after tax dollars. So there again, they're throwing something in that is good to start using. If you're putting in more than a match into your traditional 41k, you may want to talk to your employer about possibly taking that over match and putting it towards a Roth 41k. And obviously these are after tax dollars you're putting in. So you're going to have to figure on how that's going to affect your taxes there. So you will probably see an increase in taxes there. So you'll notice I'm going to be mentioning that as we go through this, because not all of these options here may be best for you, even though they sound good in writing. The penalty for failing to make an R take an RMD decreased to 25%. The penalty, if you all remember, is for all you've been listening is was 50%. And if you correct that, they say they will decrease that to 10% if corrected and you must file an amended tax return. So there is a little bit of relief on that. Now when they do all of the calculations for all the tax dollars that are going to get with the change in the regulation, do you think they run the numbers on everything and they make sure that there are some good things in it, some good things that maybe you might not be aware of? Do you think they ever do that?

Producer:
I think there are a lot of things that that they aren't even aware of and and a lot of this, you know, just just my humble opinion.

Jeff Holmes:
Yes, I and I hope you're right, because some of us you look at this and going, okay, well, we definitely need to do some tax planning before you jump in any of these changes here. Remember that if you haven't done that, it's very, very important because you have to ask yourself, why are these changes occurring? How will it affect my retirement planning? And you need to ask yourself that now. Catch up contributions will increase in 2025 to 4 41k403b Government plans and IRA IRA account holders. This gives pre-retirees more room to catch up and save. Now again, what you're doing is you're loading up your four one case and maybe you're putting more and more money into that. Now at. Ask yourself, why would they do that? Why are they wanting these accounts to grow larger than larger? Well, remember, the IRS is your partner in these. Could it be that there may be higher taxes that are coming out so in the future and they know that? So you have to be very careful on that and make sure that you look at possibly putting money into a Roth IRA instead of doing the catch up on the for one case. So you definitely need and it's a broken record here, but do the tax planning before you take any any of these changes and run with them.

Jeff Holmes:
The current catch up limit is 57,500 a year for those 50 years and older. And as of January 1st, 2025, 10,000 a year will be for those people 60 to 63 years old. Now, why 62? 63? You know, and there's something there, you know, just remember definitely something there. And also remember, at the end of 2025, the Trump tax cuts are going to go away. So that means in 2026, they could revert to higher amounts of taxes. And they also just because they tax brackets are low, you have to remember that they can change some of the provisions within the tax law without you even knowing about that. So keep that in mind. This is amounts going to be an index for inflation also. So it will be automatically adjusted yearly based on CPI. Iras, the current limit on those for 50 plus is 1000 a year, but starting in 2024, they're going to be indexed for inflation. So it could increase annually based on the consumer price index. So there's that. Okay. Now, this is a good one that is worth looking into is the 529 college savings plans. After 15 years, assets in a 529 plan can be rolled over into a Roth IRA for the beneficiary.

Jeff Holmes:
And obviously these are subjects to all kinds of annual Roth IRA contribution limits. And also the lifetime limit is up to 35,000. Next is qualified charitable distributions. These are called Q seeds. And beginning in 2023, people are who are at age 70 and one half. And now I thought 70 and one half went away in the IRAs and for one case for the RMD. Well, here it is again. I'm not sure why 70 and a half. But you have to ask yourself the question, why 70 and one half? Well, these are you have to be older than 70 and one half, and you may elect as part of their QCD limit a one time gift up to 50,000 adjusted annually for inflation to a charitable remainder unit trust or a charitable charitable remainder annuity trust or a charitable gift annuity. The this is an expansion of the types of charities and that you can receive. So if you have a passion for charity, a special cause or your church, we can help you make strategic donation an effective way that leaves a lasting legacy. So we'll take a break for now. We'll be back and we'll start getting into the smart health part of our.

Producer:
Show guide questions. Jeff Homes is here to help visit RestAssuredRetirement.com today.

Jeff Holmes:
Welcome back to the Rest Assured Retirement show. This is Jeff Holmes, a certified retirement counselor and certified financial fiduciary. We just got through finishing up with the Secure Act 2.0. If you have questions on that, please call us at 480 454 9191. Or if you want to do a consultation on that, you can go to RestAssuredRetirement.com and sign up for a consultation.

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

Jeff Holmes:
Try to complete your Roth conversion by age 63. If possible. And the reason for that is because Medicare does a two year lookback when you start your Medicare at age 65. Few people realize that financial changes made by 63 can affect what goes on with Medicare. The tax returns you file starting at age 63 will affect your Medicare premiums. And there's something out there called Erma and Magi. And if you don't understand those terms, please call in. We have a medicare specialist. Jocelyn, does Medicare 101 with people that listen in on the show to further their education on how to handle that best? And her clients tend to call her the professor of Medicare on that. So that came from them, not me. She does a great job there. So again, gone to smart health. Retiring can be a stressful time for many people, especially when it comes to planning for their health care needs. Medicare is an important part of retirement planning process, and it's important to understand a medicare 101. Helps you understand proper Medicare planning during retirement can help minimize health care costs over the long term and provide other financial benefits. Let us help you protect your health throughout you and your spouse's retirement. You can contact us again at 480 454 9191 With any of your Medicare questions. Also, you can keep in touch with us on our website. RestAssuredRetirement.com. Now here's some facts about Medicare. More than 61 million Americans are covered by Medicare health plans right now. And this comes from the National Committee to Preserve Social Security and Medicare. And this is a 2000. 20 study that they did. They find that 18.5% of the US population is on Medicare. Which a single care. Can you imagine that? Almost 20%. Wow.

Producer:
That's an insane number.

Jeff Holmes:
Yes. And 80% are having to help out with that. I hope you understand that. 65% of the survey respondents said that they would not know what parts are part of Medicare they should enroll in. And this came from a 2022 Medicare survey by single care. So they really don't know much about it. That's two thirds of the folks out there don't know much about it because it is very complicated. Almost four out of ten Medicare consumers have also enrolled in Medicare Advantage plans. And this according to Kaiser Family Foundation 2021. Is that the best plan for you? Have you compared that with a full time Medicare agent, so on, that knows what might be best for you and giving you both options for that and Medicare supplements. So very important to review that on a regular basis at least once a year. Now we're going to get into how to lengthen your life and live a healthier retirement. This is a big one here. The healthier you are, the less reliant you will be on your health insurance. Keeping your mind and body sharp will also help with other issues that arise later in life. Now, we just went through the secure Act 2.0 of how to keep an eye on your taxes and possibly reduce your taxes and save thousands of dollars in retirement. This will also help you save thousands of dollars in health care because those tend to be the two highest health care. The cost that you you'll run into in retirement. The first one is exercise regularly. Boy, did I hear some moans out there is I.

Producer:
Wish I had a sound mon sound effect I could have played just then because, you know, that's exactly what a lot of people did.

Jeff Holmes:
Yeah, exactly. Physical activity is important to maintain both physical and mental health and aim for at least 30 minutes of exercise per day. Now it can be a brisk walk, cycling, swimming or dancing. So there you are. That that helps you out there a little bit. Also, there's another moan coming on here is eating a healthy diet. That's eating a well balanced diet is essential to maintaining good health. Focus on fruits, vegetables, lean proteins and healthy fats, avoid processed foods and sugary drinks and too much alcohol. So remember that now. Now, we just got through talking about the Super Bowl there. So things and also maintain a healthy weight to avoid obesity because obviously regular exercise and eating right will help you with a well balanced diet will help with that because obesity can lead to serious health issues. So we're going to continue on with how to lengthen your life and live a healthy retirement in a few minutes here. We'll take a break. For now.

Producer:
You're listening to Rest Assured Retirement.

Producer:
Oh, hey, little girl. Go away. Just to be alone with.

Jeff Holmes:
Welcome back to the rest of your retirement show this Jeff Holmes, a certified financial fiduciary and certified retirement counselor. We were just going through our section on how to lengthen your life and live a healthier retirement. And we had just gotten through maintaining a healthy weight and eating healthier diet and exercising regularly. And the next one is stay socially active. Socializing with friends and family can keep you mentally sharp and emotionally fulfilled. Join a club, volunteer in the community, or participate in activities that you enjoy. Stay busy. If you enjoy what you're doing for a living right now, if you have your own business or you like the work you're doing. My dad would always say, Keep doing it. Don't stop. Stay active. And that helps stimulate your brain, which is the next thing you should do. Keeping your mind active and engaged can prevent cognitive decline. So read books, solve puzzles, and pick up a new skill or hobby. Those are all very helpful. That's what my dad would always do. He's always be doing those crossword puzzles just to keep his mind sharp. And he was sharp right up to age 92 before he passed.

Producer:
So I love.

Jeff Holmes:
That. Yeah, it just pretty amazing. And I had a grandmother lived in 99 and she'd keep herself busy. And sometimes she was way sharper than I was in my twenties, that's for sure.

Producer:
I know what you mean there.

Jeff Holmes:
It took a lot of years to be able to fess up to that. So. So. And this is a big one here. Get enough sleep. Sleep is essential to overall health and well being. Aim for 7 to 8 hours per night. And I know people work long hours. And I had a brother that passed away early because he he was sleep deprived a lot of times because he worked graveyard shifts and those sort of things. And that did affect his health in a bad way. And as doctor said, make sure you get plenty of sleep. That tends to cure a lot of issues. Everything works better when you get your sleep every night. So that's a very important also and it also helps you manage your stress, which is the next thing. Stress can take a toll on your physical and mental health practice stress management techniques like deep breathing and our meditation. Now you don't want to do that in the grocery line, the deep breathing, but that's you can figure that out yourself.

Producer:
And you don't want to do the meditation while you're driving.

Jeff Holmes:
That's another one. That's right. Yeah. That's, you know, little tidbits on that one.

Producer:
So our words of wisdom, that's just count that as an extra quarter of the week there.

Jeff Holmes:
Yeah, that's right. That's right. I'll do that. So it's also called taking a breath, you know, And with all that's going on in our country today, yeah, you got to take a breath every, every few minutes it seems like. So keep that in mind. Stay up to date with your medical checkups and screenings, like both Matt and I did here in this last week. And we're recovering from that. But regular checkup and screenings can detect and prevent health problems before they arise. Also, mental health retirement can be a big transition. All of a sudden, you're no longer working. It's definitely I see that with a lot of clients. So it's important to take care of your mental health, seek help, feel overwhelmed, or experience depression or anxiety, and trying to figure out Social Security and Medicare is a good way to get overwhelmed. And I've seen that over and over again because it's so complicated. And of course, retirement planning is not the simplest thing to do. And you have to think about that. Why didn't we learn this earlier in life? And you just have to do a cram course when you get to retirement. So maybe they that needs to happen more in our in our country. Okay. The next thing we're going to next section is going to be smart care. It is estimated that around 13 million Americans rely on long term care services, 13 million, including around 7 million retirees, as well as individuals with disabilities and chronic health conditions. 69% of all Americans require some sort of long term care or assisted living during their retirement years. If you don't have that in your retirement plan woven into that, you may want to think about that and ask yourself, why haven't you done that? If you don't plan, have a plan in place, The burden of care is going to fall on to who, family members or friends. Your loved ones will become unofficial caregivers. These unofficial caregivers are not paid for their services and are also referred to as informal caregivers. Wow. I was in Jessica and I were informal caregivers at one time. This. Yeah.

Producer:
Me too.

Jeff Holmes:
Yeah. Yeah. So there you are. And that's these. This distinguishes you from paid. Caregivers, which are home health aides and nurses, nursing home staff. So that's very important to consider that. And I think a lot of you out there may have been been in that situation. You know exactly what Matt and I are talking about as far as being an informal caregiver. Now, according to the National Alliance of Caregiving, in 2015, an estimated 34.2 million unpaid caregivers provided care for adult or a child with disability or chronic illness. Now, that's an estimated 40 million unpaid caregivers across our country. 40 million? Wow. Yeah. Some of the ways that unpaid caregivers may be affected include physical strain. Yeah. Very physically demanding can lead to injuries and chronic health conditions. I've seen that before. Emotional strain. It's very emotionally taxing for the caregiver and can lead to financial feelings of stress. Obviously, financial strain, which is next, and depression and anxiety. It can be very costly for that financial strain and can lead to a financial burden for the unpaid caregivers who may have to take time off from work and other financial sacrifices that can happen. Social isolation. Caregivers can be isolating and can lead to unpaid caregivers feeling disconnected from their friends and social networks because they're doing something else. Also, something very common is called burnout. It's very overwhelming and can lead to unpaid caregivers experience and that burnout in order to avoid subjecting your family and friends to these potential stressors. You should work with a with them and a financial advisor to make sure you're prepared in the event that you should require long term care in the future. So if your retirement plan, your formal retirement plan is does not have this included in there some way, or if you have a financial plan and it's not being addressed, why is that? A lot of people says, well, I'm not going to be in that situation. Well, you can't be 100% sure, can we? You know, we had and I met you mentioned you're a caregiver. Who was that for?

Producer:
That was that was for my dad, actually, before he passed a little over a year ago. And he had he had cancer, he had dementia. And he just got to the point in his last year after a bout with sepsis where he just couldn't do, you know, a lot of the things that he used to be able to do for himself. And he had ups and downs and all that and just really needed a lot of assistance at home. And yeah, I mean, all of those things that you talked about are really very, very true. I mean, with the physical and emotional and financial strain and all that, as I'm sure you know firsthand as well. It's very, very real.

Jeff Holmes:
With that thought, both of my parents and both of Jocelyn's parents were in that situation, assisted living or long term care. And that's that's more and more common nowadays. So there are several ways to handle the cost of long term care during retirement. And these include, first off, purchasing long term care insurance. That's a tough one because there's less and less companies that are even in that market. This type of insurance can help cover the cost in the nursing home assisted living facility or in home health care. They can do that, but they also can increase in a premium over the years. And that's the case if you don't use it. What happened to all the money you spent on those. So things you have to do a lot of research in what's best for you there. Saving you also save for long term care expenses by setting money aside specifically for long term care expenses and can help you cover the cost when that time comes using retirement savings. And there are some great ways nowadays where you can use your retirement savings to really help pay for this. There's some great planning for that. If you haven't done any of that or don't know anything about that, give us a call. 480 454 9191. Or go to RestAssuredRetirement.com and we can go through on how you do that because there's a great ways you can do that in it's include your four one case and your IRAs also Medicaid is another option it's a joint federal and state program that can help you pay for your long term care.

Jeff Holmes:
For those who have limited assets and income. Also, there is something called veterans benefits. If you're a veteran, you should definitely look into this. You're eligible for benefits that can help you pay for long term care. They can be very helpful. So there's a couple of things there. Going back to the Medicaid now, that takes a lot of planning. You've got like a five year ramp up period on that I need to mention. So it's very important that you do that, go through and do the planning if that's something that you're going to need to do. Now, there are reasons why you should meet with an advisor and financial professional. Now, if you don't have a health care plan in place for you and your spouse's future, that's one big reason. If you don't have a formal retirement plan and you have to ask yourself what is a formal retirement plan? Well, that's a plan that's done for you. Are you do it for yourself if you're a do it yourself for.

Jeff Holmes:
Obviously, this is something that you don't want to just like they say, don't do this at home. I recommend you get some help on that because there are software out there, believe it or not, that will go through and take your income, any increases in your Social Security in the future, any pensions or anything like that, do you have as guaranteed income? Then it will take your expenses and include inflation in that. I'll take all your assets, which assets you need to take out first. You know, you can take out your you've got different savings. You can increase your retirement income in the future, by which accounts you use first. There is an option for that. Also, there's some tax planning that you need to do, also long term care planning, if something happens to your spouse and also if something happens in a in a market downturn. Have you done those plan plans for that? Because you never know what the future is going to hold. So why not plan for everything that gets thrown at you? So obviously we do that. No obligation. You can call us at 480 454 9191 and we'll help you out with these things that I just spoke about.

Producer:
It's this week in History.

Jeff Holmes:
February 3rd on this date in 1870. Now, that was quite some time ago. The 15th Amendment was added to the Constitution and was ratified this amendment guaranteed the right for Americans to vote regardless of race, color or any previous condition or servitude. So that was a huge time in history there. Also, this is another big one. On February 5th, on this date in 1939, legendary Baseball Hall of Famer Hank Aaron was born nicknamed Hammer, and Hank Aaron played 23 seasons in Major League Baseball with the Milwaukee Atlanta Braves. Matt, you're familiar with that? Oh, sure.

Producer:
7755, baby. That's how many he had in his career. Homers or just an amazing talent. And that was before you know, all of the questionable you know, injections and stuff that some others might have been going through. But I'm not going to go there.

Jeff Holmes:
Yes, I was going to mention that very thing. Exactly. He was he was one of the greats, one of my favorites to watch. He was a really fun to watch. And he was a 25 time all star and National League MVP in 1957. Unfortunately, he did pass away January 22nd in 2021 at his home in Atlanta. That's it for today, everyone. That's I hope you had a. Have a great rest of your Sunday. And this is Jeff Holmes and Matt McClure signing off.

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 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 and seek 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 CFF and the ACA.

Producer:
Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance 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. A Roth conversion may not be suitable for your situation. The primary goal in converting retirement assets into a Roth IRA is to reduce the future tax liability on the distributions you take in retirement or on the distributions of your beneficiaries. The information provided is to help you determine whether or not a Roth IRA conversion may be appropriate for your particular circumstances. Please review your retirement savings tax and legacy planning strategies with your legal or tax advisor. To be sure, a Roth IRA conversion fits into your planning strategies. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance 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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