11.17.22: Audio automatically transcribed by Sonix

11.17.22: 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 The Buckeye Advisor with your host, Woody Bowling. Woody is a fiduciary licensed financial advisor and Medicare expert who always places your needs first. Woody 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 Woody Bowling.

Woody Bowling:
Good morning, everyone. It's Woody Bowling, also known as the Buckeye adviser. And we are here to welcome you to our weekly show here, the Buckeye Advisor Show podcast and all of that good stuff. Before we get too far into the show, I want to bring in this week's co-host and producer, a long lost man from the past who started out with us on this journey back in early June. And that's Sam Davis coming to us live from Atlanta. Good morning, Sam. How are you?

Producer:
I'm doing well, Woody. Happy to be back on the airwaves here in Dayton and Ohio. It's hard to believe that we've been doing this since June, Woody, but we've been bringing important information, vital information to the pre-retirees and retirees across the state of Ohio. And we've got another good episode filled with lots of tips for retirement and lots of information that you're going to want to hear. So stay tuned.

Woody Bowling:
Yeah, very excited. We're glad to have you back. We know Matt McClure's been with us for a lot of the journey and you've been able to make an occasional cameo with us. We're glad that you're here. Like you mentioned, we are serving people here in our area in the greater Dayton, Cincinnati market, as well as people that listen to us through referrals and other areas, which we're hearing from some folks like that weekly almost now. So we're happy to be here. We do have a great show. We're excited. Ohio State is still undefeated, depending upon the results today, of course, at Maryland. But I think we'll still be undefeated and ready for the battle with the team up north on the Saturday after Thanksgiving. And Thanksgiving's coming up for everyone. So let me be one of the first to wish every one of our listeners a happy and happy not anniversary, but happy Thanksgiving, of course. And we are excited. It's a great time of year and we are blessed to be here. So, Sam, let's get things going.

Producer:
Yeah. Woody And just want to get things started by reminding the folks that if they want to get in touch with you or listen to past episodes, all they need to do is go to The Buckeye Advisor dot com. TheBuckeyeAdisor.com That's The Buckeye Advisor dot com. Or they can get in touch with you the old fashioned way. Pick up the phone and call 937 974 6201 again that's 937 974 6201. And you can find the phone number online as well at The Buckeye Advisor dot com.

Producer:
We've got a big show this week we're going to give you a quote of the week. We're going to play a little right or wrong. We're going to talk about what's going on with cryptocurrency. Cryptocurrency has been in the news this week. We've got a cost cutter for you and we've even got it this week in history item as well. Of course, What is Dad Joke of the Week will be coming at the bottom of the hour, so stay tuned for that. But what let's get it started with a quote of the week.

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

Producer:
This week's first quote of the week comes to us from Warren Buffett. Now, Warren brings us a lot of good quotes, Woody. And this week, the quote we've selected from him is do not save what is left after spending. Instead, spend what is left after saving. And I really like this quote, Woody, because Warren is really trying to get everybody here to maybe readjust their mindset from a spending mentality to a saving mentality and making saving for a rainy day the priority. What do you think about this?

Woody Bowling:
Yeah, I agree. You know, Warren Buffett is the man and certainly I love pretty much almost everything he says. And this one, it's really a paradigm shift for people, for consumers, because we're in that spend mentality where so many people, unfortunately, live paycheck to paycheck in our country, but those that are fortunate enough. To not have to live paycheck to paycheck really need to kind of flip that mindset and say, hey, let's save X number of dollars per week, per paycheck, per month, whatever it is. Set a goal that's realistic so that you don't stretch yourself too far and then do it consistently. Pay yourself first. And in the long run, that always pays off. And you know, there's a lot of listeners today that, you know, they're going to Kroger, they're going to Wal Mart, they're going to Lowe's, Home Depot, whatever they're out doing. You know, if you're still working, commit yourself to your 41k. Take advantage of that tax deferral, take advantage of the company match and pay yourself. And even if they're living without a lot of after tax savings right now, it's going to pay off through that consistent retirement mindset. And, you know, I've got clients that when they retired initially they didn't have a ton of post-tax assets, but those have continued to grow now. And plus they had a large 41k that they committed to 20, 30, 40 years ago.

Producer:
Yeah. Woody And you know, one of the important things, you know, when it comes to saving is really considering that longevity risk because we're all living longer and we talk about solutions for beating that longevity risk on almost every show here on the Buckeye Advisor when we talk about things like annuities. But I just saw this the other day, Woody, and I thought it would be great to share with the audience that the oldest American, her name is Bessie Hendrick, she just celebrated her 115th birthday. So I wanted to wish a happy birthday to Bessie Hendrik, who is 115 years young and just goes to show that we're all living longer. I may have shared this story on a previous episode, but I'll say it again. I live in Atlanta, Georgia, but a couple of months ago, my wife and I took a trip to two Savannah, Georgia, one of the more historic cities in the United States. And you can walk and tour through some of the older graveyards there. And you can see from the dates on the headstones that a full life back then was around 40 or 50 years. And it's amazing to see that there's so many people living well into their nineties. And congratulations to Miss Bessie, who is 115. What do you think about that?

Woody Bowling:
Woody That's amazing. And like you said and we talked about on our show and some of our earlier episodes when Social Security was created, the life expectancy in our country was around 60, 61 years old. So they didn't really expect to be paying a lot out in Social Security benefits at the time. So just think we've got the advantage of so many advances in technology, in medicine, all those things that can increase the longevity of our listeners and ourselves. Hopefully so. Congrats, Ms.. Bessie. Happy birthday.

Producer:
Woody. That brings us to one of our favorite segments on the show. It's time for Right or Wrong.

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

Producer:
All right. What are your first item on this week's right or wrong? The game is simple. I will read a statement and then you will help the listeners understand if that statement is right or if it is wrong. Here's the first one. Bonds are on track to have one of the worst years ever in 2022. Is that right or wrong?

Woody Bowling:
Sam? That is absolutely correct. And, you know, unfortunately, there's probably quite a few of our listeners out there that are holding bonds or bond mutual funds in their portfolios, whether they be an IRA for one K or just their own investment accounts. And, you know, it's historically bad year and the rising interest rates are not done yet. We do anticipate another increase in the Fed rate in December and possibly another in January to February. So now the big question is how much will those rate increases be? The Fed's been pretty transparent about we still want to fight inflation. Inflation is still alive and well. We know that because one other particular interest this week in Wall Street was Target, which many, many people shop at Target. They missed their projected earnings badly by a mile was the headline. And their CEO just simply said, look, we are seeing a dramatic drastic adjustment in spending by consumers. So if you're holding those bond funds, we really recommend we talk about this show almost every week about considering replacing the 40, 30, 50% of your portfolio that are related to bonds that are taking a beating and still taking a beating. Consider a fixed indexed annuity. You get principal protection, you get long term growth, and you can also turn that into some lifetime income later on. And who doesn't need a little more income later on at retirement?

Producer:
Yeah, Woody and I think a good piece of homework for all the listeners of The Buckeye Advisor would be just take a couple of minutes, log into your statements, find out what percentage of your portfolio is currently in bonds or currently allocated to what they call fixed income. And after you figure that out, get in touch with Woody at the Buckeye Advisor dot com TheBuckeyeAdvisor.com Or give him a call at 937 974 6201 and Woody can get started on some good options to help protect that safe money portion of your portfolio. Here's the next item on this week's Right or Wrong. Cryptocurrency is a safe and effective way to grow your money in a short time. What do you think, Woody?

Woody Bowling:
Well, Sam, as much as I would like to say, you're right. I'm going to have to give you your first wrong on this one. Cryptocurrency has dominated the news and it's kind of like an offensive lineman in the game of football. You never hear his name called until he commits a holding penalty or makes a cracked back block or something crazy, something egregious. And then the play that went for a touchdown or a first down gets called back. And the goat for that moment in the game is that offensive line And crypto has been the goat the last week or so in dominating financial markets and financial news. Look, FDX, one of the largest crypto companies, filed bankruptcy. There's a CEO who had done many, many rounds and was a media darling over the last couple of years, basically admitted he was taking some of the money and putting it into his trading side that he had created on another business venture. And look, crypto comes with inherent risk. It's a commodity that's unregulated. China has even outlawed cryptocurrency from being used. Look. Anything related to crypto, and we've mentioned it before. If you're going to consider that. Consider the money that you put in there, something that you can afford to lose and that's it. And then if you make a few bucks, great. If you don't, you're not going to be heartbroken because that's the name of the game. It's almost like gambling and gambling in Ohio. As far as placing sports bets, it's all in the news. It's going to be legal here January 1st. And they are even bringing Pete Rose in to make the historic first bet at the Hard Rock Casino downtown Cincinnati. So look, sports betting, crypto, all of that. It seems fun for a while, but eventually the percentages are you're not going to win. So I give the same advice if you're going to do either of those, just play with money that you can afford to lose.

Producer:
I think that's good advice. Would he please do not risk your hard-earned retirement dollars in an unregulated and you know, there's no consumer protection with cryptocurrency, so that is not a safe investment. All right. Here's the third and final item on this week's Right or wrong. Higher interest rates combined with a down market make now one of the most opportune times to consider a fixed-indexed annuity.

Woody Bowling:
And I'm happy to tell you, Sam, you are correct on that one. Giving you two for three for the day, batting 667 well above a Hall of Fame batting average so far today. So, look, a lot of people, if you're doing systematic investing, when the market goes down, you don't panic in a lot of ways if you're in stocks and mutual funds. Right. Because ultimately that part of the market we see bouncing back eventually over time, historically, it has done that and we have faith that it will those equity driven mutual funds and ETFs, especially that we use in our portfolios when we tactically manage people's money. So what people if you're investing regularly, you're buying more when you're putting in the same amount of money per paycheck or per month, I drop a certain amount of dollars into my retirement account every month. I'm self employed, independent, and that's just what I do. So when the market's down, I keep going and then I'm just getting more and more because I'm buying more of what I'm buying when the share prices are lower. Look, keep doing what you're doing. Hang in there. The real advantage comes because when these indexes that are used by the fixed indexed annuities, they're also down a little bit as well because they're looking at certain segments of the market when you're if you consider a fixed indexed annuity now and then you measure the progress of your index a year from now, two years from now, three years from now, and then you're going to share in that gain. Plus you're going to protect your principle along the way from any further declines in the market. So that's truly the win-win that people talk about. It's a cliche term, but there are certain things in life where it's very appropriate.

Producer:
And that completes this week's episode of Right or Wrong. And we want to touch a little bit more on cryptocurrency because it is in the news so much. I know, Woody, that you have gotten questions in the past about cryptocurrency. Financial advisors all across the country are being peppered with questions about cryptocurrency, people asking, Should I invest in this or that? And it makes sense. You know, celebrities such as Tom Brady and Shaquille O'Neal were invested in the company that's now filed for bankruptcy and is now going to be the subject of criminal investigation. I expect that this will go on for years. Woody, personally, I wonder if this is going to be the first domino to fall in the cryptocurrency market and that we're going to see something similar that happened with the tech bubble in the early 2000s. It's it's hard to say. You know, we always say that our crystal ball is broken just like everyone else's. But, you know, this company had major sponsorship deals with celebrities, Major League Baseball. The umpires were actually wearing the FTC's logo this past season in the saw that. Yeah. Yeah. And the NBA had sponsorship commitments with the company. You know the Miami Heat is going to have to pull that name off of their arena and find a new stadium sponsor. So, you know, we wanted to share this audio and then we'll get your thoughts. Woody, this audio is from Charlie Munger and Warren Buffett. The investing duo spoke a couple of years ago about cryptocurrency, and here's what they had to say.

Charlie Munger and Warren Buffett:
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 say this is evil because it undermines the Federal Reserve system and the national currency system, which we desperately need to maintain its integrity. And and third, it makes us look foolish compared to the communist leader in China. He was smart enough to ban Bitcoin in China. If the people in this room owned all of the farmland in the United States. And you said for a 1% interest in all the farmland in the United States by our group, $25 Billion. I'll write your 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:
It's always good to hear from Charlie Munger and Warren Buffett. Those guys are straight shooters with lots of good financial advice. I mean, Warren Buffett was in our quote of the Week this week, and he's been a part of a few quotes of the week. So your thoughts on what Charlie and Warren have to say, kind of warning about the problems with cryptocurrency?

Woody Bowling:
Yeah, I agree. I mean, I wouldn't give you a nickel for all the crypto you've got, and I think they said it very well. I'm going to echo their sentiments and certainly never something I'm going to recommend to a client. You know, we want to take a lot of things into consideration and any extra play money. I do have a handful of clients that do trade in a small account on their own. They do it for fun. They like to track some things that they like to play with and trade those. And it's the same type of mentality. If I win, I win. If I lose, I'm not mad because I've still got my basic allocations of retirement money left.

Producer:
Yeah. Woody And so that kind of brings us to the topic of risk and, and how do you properly manage risk? Obviously, cryptocurrency is an incredibly high level of risk, not suitable for retirement planning. But, you know, we think it's it's a good time to get back to basics with something like this in the news and and the rule of 100. So why don't you go ahead and kind of illustrate to the audience how the rule of 100 works?

Woody Bowling:
You know, getting back to basics is not a bad thing. And, you know, people get caught up in the glitz and the lights and the glamour of crypto and what's the latest trend and what's the latest fashion. And so, look, I mean, and basically when you talk about looking at retirement, when you start approaching within five years or so of retirement, the rule of 100 is still very appropriate to consider in the equation. I use it when we look at and talk to people, it just basically states, take your age. Let's say if you're 65, then you subtract that from 100. And that just means that you would have no more than 35% of your assets in risk. Risky type stock market vehicles. So ETFs, mutual funds, individual stocks, those things. We don't take that as an absolute concrete has to be this way because life is you have to be able to adjust, you have to have some flexibility. And like we alluded to a little earlier in the program, people are living longer. So we have to take those things into consideration because if you retire at 65 or 68, you may have to deal with another 28 to 30 years of income from those assets. And so we need to have some flexibility. So we need to grow and we also need to preserve some of that portfolio to make sure that it's not going to get crushed, especially if you have a down couple of years when you first retire and you're pulling from that retirement nest egg right up front.

Woody Bowling:
It can be detrimental to the long term growth of those retirement funds. So you really have to sit down. We look at it as a fiduciary and fiduciary advisor, independent. We're not beholden to anyone. We're going to put together a plan based on people's overall objectives. How much risk are they comfortable with? How much of their portfolio would they like to protect completely? And then we kind of we need all to understand what kind of budget they're going to have in retirement. You know, are they going to travel a lot? Are they going to have car payments? Are they going to have house payment, which naturally we hope that a house payment is going to be the big ones. That's off the table at that point. So we have to be flexible in our planning and in our overall evaluation because every situation. Salmon That's what makes this occupation that I do. It's what makes it so fun because everybody's different and, you know, nobody's situation is the same. Everyone has a different amount of income they need in retirement. Everybody has a different amount of money today versus what they want or need in retirement. And they're just looking for somebody to help them get there, kind of that financial quarterback, if you will, to help them get there. And that's what I want to do. And I really enjoy doing it.

Producer:
Yeah, that's great, Woody. And, you know, it's as simple as this. The closer you get to retirement, the more risk you want off the table and the more guarantees you want in your plan. And you know, there aren't a lot of guarantees out there in something like the stock market. You know, a lot of dividend stocks cut their dividends during COVID. You know, people that do rental properties and generate rental income. You know, the pandemic kind of threw a wrench into that as well. And landlords were struggling to get rent, could not evict tenants even if they weren't paying rent during COVID. So you want things that you can count on. That's why we sing the praises of fixed-indexed annuities on a lot of shows. And we're going to talk a little bit more about annuities and a bit about bond replacement when we come back. You're listening to The Buckeye Advisor. You can visit Woody online at The Buckeye Advisor dot com TheBuckeyeAdvisor.com And call Woody today at 937 974 6201. And The Buckeye Advisor will be right back.

Producer:
You're listening to The Buckeye Advisor to schedule your free no-obligation consultation with Woody. Visit The Buckeye Advisor dot com. TheBuckeyeAdvisor.com

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

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

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

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

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

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

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

Producer:
Welcome back to The Buckeye Advisor. I'm Sam Davis, joined by The Buckeye Advisor himself, Woody Bowling. You can learn more by visiting him online at the Buckeye Advisor dot com. And Woody, it is time for one of my favorite parts of the show. It's time for the Dad Joke of the week.

Producer:
But sure, you can handle ghost peppers. You choose scorpions like Skittles. But can you stomach the dad joke of the week?

Woody Bowling:
Sam I think a lot of listeners do look forward to it. Hopefully they are not too cringe worthy this week, but we're going to do our best to make everybody smile just a little bit because they say laughter is the best medicine, right? So, Sam, just a real quick question. What did one DNA say to the other? Dna?

Producer:
Hmm? What did one DNA say to the other DNA? I have no clue. Woody.

Woody Bowling:
Do these genes make me look fat?

Producer:
Good one. Good one. You know what, Woody? I love that. When it comes to the dad joke of the week, it's all in. Good pun.

Woody Bowling:
It is very nice. Sam, you have done your homework, sir, in preparation of being back on the show. So we are again, glad to have you back. We're glad to be back. We've got Thanksgiving coming up. We had a great first half of the show, super excited about the rest of it. So let's finish with a flurry.

Producer:
All right. And let's head right into this week and history.

Producer:
It's this week in history.

Producer:
First item on This Week in History. Let's hop in a time machine and go back to 1963. This week, in 1963, the first push button touch tone telephones made their debut in the United States, replacing most rotary dial models. So in 1963, the touch tone phone that was breaking technology and you no longer had to go all the way back when you messed up the phone number and do all the numbers again. So what do you think about that?

Woody Bowling:
Love it, love it, love it. I was born two years after this, so I was born in 65. And I remember we mom and dad actually, believe it or not, still have a phone up on the wall in the house that I grew up in. It is no longer rotary dial, of course, but I remember that was the one phone we had was the rotary dial phone. And man, it is quite a trip down memory lane with that this week in history. Sam Wow.

Producer:
Yeah. You know, the rotary dial, not the most time efficient way to make a phone call, but it's a little more fun than just punching in the numbers. I got to say.

Woody Bowling:
Oh, my gosh, unbelievably more fun. And our second this week in history actually happened on today's date, November 19th. And this was very historical. In 1863, President Abraham Lincoln delivered the Gettysburg Address. 275 words explaining the union's position and why the fight was necessary. Four months earlier, the Battle of Gettysburg was one of the bloodiest battles in the Civil War. With the death with the death, excuse me, of around 45,000 men. That is a tragic number. And Abraham Lincoln, probably one of our top three of all time. It's a somber moment when you think about all the people in the sacrifices that have been made in this country.

Producer:
Yeah, really unbelievable history. And I would encourage all the listeners to go check out the Gettysburg Address. It is only 275 words, but it is masterfully crafted. And some of the most famous words that have ever been spoken in this country. So this week in history, one from 1963 and one from 1863. And and there and there you go. All right, Woody, let's get into the rest of the show. We talked how bonds are having one of their worst years ever in segment one. So let's talk a little bit about bond replacement, Woody. What is a bond replacement strategy? How does it work and why do you think it's a better option for those planning for retirement?

Woody Bowling:
Sam, Great question. And I get this question because listeners are intrigued by the fact that, you know, we believe in what we do. That's why we talk about it every week, week after week. Part of what I do is one side of my business is a registered investment advisor representative. I do that work under Brookstone Capital Management based out of Wheaton, Illinois. They manage multiple billions of dollars in assets, super proud of them and their entire team, all the different tactical strategies that they give me and other advisors across the country that partner with them to use for the money management part of our client assets. Right? So what sets me and other fiduciary advisors apart is that we also use another part of our strategy is using a fixed indexed annuity to replace bonds for a portion of our client assets. Why do we do that? Great question, because we believe that as people get older, they get to the part where as they get closer to leaving the employment world and they're starting to leave the accumulation phase of retirement, getting ready to retire. And we talked about it last week. We talked about accumulation where you're starting to actually strategically spend down those assets, but you also want to grow your assets as well as you're spending down. So hopefully you're not just going particularly down. But look. So the other part is the fixed indexed annuity. So when we do studies and studies have been done by independent, nonpartisan groups that looked at these, and when you take a portfolio that's a 6040 portfolio and let's say we start at at a million, for example, at 600,000 was in ETFs, mutual funds in the market.

Woody Bowling:
We are going to tactically manage that portion. We're going to do better. When you do better as a client, that's the way our fee structure is set up. That's a fee based part of my business. The other part is we're going to take the other part, 400,000, let's say in this example, put into a fixed indexed annuity and there are fixed indexed annuities that do very, very well with zero fees involved. So why pay an advisory fee, let's say, in this case of one and one half percent? Why pay that? That's 6000 a year if you don't have to. And when you're in bond funds, they run market risk, they run interest rate risk, they run longevity risk, all kinds of things involved. When you have a portfolio of bonds in your. Portfolio. So when you project that out over 35 years, in this case, if you retire at age 60, 65, whatever it is, let's assume you live 35 years longer. Based on combining those fees on those bonds and based on performances of bonds that are graded by Moody's, one of the big bond grading firms versus the performance of a hypothetical fixed indexed annuity out there that we have access to in our stable of companies that we use because we're going to use multiple insurance companies for that product and they're going to pay us a flat fee based on bringing the money to them.

Woody Bowling:
It does not impact the. Balance at all. The principle is not deflated at all when it goes to the insurance company into the fixed indexed annuity. So long term, the fixed indexed annuity turned out around 6.99%. The bonds came in at around 3.32. So after 35 years, the total portfolio difference was. A little over 2 million bucks that the fixed indexed annuity made that big of a difference in the long term performance. And that's a long time. 35 years. We know that. But you never know. As you mentioned, Bessie, earlier in the show, she lived to be 115. She's still here today. So that's becoming more and more common for even men to live into their nineties and mid and late nineties. So it's not just women anymore, but all the men want to take care of their wives and vice versa. So these strategies make a lot of sense for people to consider. As time goes on, paradigms need to change and that's what we do. I mean, we're on the cutting edge of these paradigm shifts and that's why we do. We want people to be secure in their retirement because it's all about security. It's all about making sure you've got the right strategy in place so that it not only works today, but also in five years, ten years, 15 and 20.

Producer:
Yeah. Woody And we don't know because we don't have Bessie as a client. But if Bessie does have a fixed indexed annuity, you know, she's going to continue to receive those payments as long as she lives. And that's one of the great things about annuities they tackle one of the biggest risks that retirees face, and that's longevity risk. The simple fact that we're all living longer and the annuity is able to provide you with an income that you can never outlive. And it also by having that downside protection, your principle is 100% protected, meaning that it can protect you from sequence of returns risk. So if you are preparing to retire in a volatile market like we're experiencing now, you know, a big drop like we've experienced this year in the neighborhood of 20 to 25% can have a big impact on people who are entering retirement, right?

Woody Bowling:
Yeah. I mean, we feel and we talk about you and I do and Matt about the fact that anywhere if you're five years before retirement or five years into your retirement, you know, we kind of consider ourselves the red zone retirement folks. And you know, we have unbelievable tools that will allow us to take a statement or two of an IRA for one K, whatever it is, we can analyze it for you, give you breakdowns on the fees you're paying, how much we can make you more fee efficient, how we might be able to make you more tax efficient. We'll talk a little bit potentially about a tax-efficient strategy here shortly with an index universal life policy, perhaps, but we use Roth IRA conversions. We use lots of strategies. We've got a powerful team of people behind us that have multiple, multiple decades of experience in taxes, in planning, in all these different specialty areas that they lend themselves to advisors like me on our team so that we can service our clients in the best manner possible to make them fee efficient, growth, efficient and all those other things that they need to be.

Producer:
Let's get into some of those tax-efficient methods of investing and preparing for retirement with our cost cutter of the week.

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

Producer:
We know because we talk about this on The Buckeye Advisor pretty frequently, that there are only two types of tax free investments out there. One, you just mentioned Roth IRAs and the other is life insurance. And we've got an example in this week's cost cutter. We walk the folks through indexed universal life insurance and why it can be a benefit for some pre-retirees.

Woody Bowling:
Yes. And, you know, life insurance, it's it's kind of like the elephant in the room. Nobody wants to address it. Everybody needs it. Everybody doesn't need the same amount. So everybody's different. They're all situations. How much mortgage do they have, How much car, how much do they want to pay for college education for their children? Do they want to just pay for part of it? Do they want to help their grandchildren? So many factors come into play, but for listeners that have kids or are themselves in their forties or fifties and index universal life policy is a dynamic strategy that a lot of advisors don't take advantage of or don't know about. And that's unfortunate because, you know, with our different ways that we view retirement, we want to take advantage of everything we can do to be tax efficient. So if we can take a 55 year old man who invest 2000 a month into a ten pay IUL, which is indexed universal life, they pay it for ten years at two grand a month and he no longer pays any more monthly premiums after those ten years. So it's a ten year commitment. You're done. But guess what it does? It's estimated that he's going to be able to tax free, withdraw 25. Thousand $600 a year, approximately, starting at age 67, which is about his full retirement age for Social Security benefits for the rest of his life. And he'll have 480,000. Death benefit to protect his family in case you should die too soon. So we talk a lot about.

Woody Bowling:
Longevity. We don't talk a lot about people dying prematurely. But Sam, it happens all the time. I look at the obituaries probably two or three times a week as I'm skimming the paper. I see people in their thirties, forties and fifties, sixties all the time. So, you know, again, people don't like to talk about life insurance because of the negative connotation around it. I'm going to die, you know, and when I die, I don't benefit from it, right? So people have that mentality of I don't get anything out of it. But look, you have to look out for legacy purposes, for income replacement purposes, for your your heirs, your beneficiaries. So and guess what? If you pass and you have a 480,000 death benefit, it passes to that beneficiary or beneficiaries plural tax free. So, Sam, we encourage people to look at that because it's a great vehicle. The indexed universal life policy is going to be following an index as well. It may be the S&P 500, it may be a different index. So the consistent investments into that, combined with the benefits of the life insurance and the ability to withdraw from a tax free later on. You know, people in their forties, thirties, fifties. It's a sweet spot and it's something that when it works out, it works out super well. And it can really make I mean, just think this guy. Has created as much monthly income as 40 years in the workforce has created. Through Social Security. Right. So what a combination.

Producer:
Yeah, Woody, it's going to be a fantastic supplement in this example to this 55 year old man's retirement plan and that 25,600 that he can start taking at age 67, that is going to come out tax free. You know, my dad used to say it's better to have it and not need it than need it and not have it. And I think that applies to something like this with life insurance. And you're right, Woody, too many people, I think, focus too much on the death benefit side of life insurance. But life insurance can be money for living or money for dying. So money for dying, meaning the death benefit should you pass too soon, But money for living, should you make it into retirement and start to need that income, you can start to take those tax free withdrawals and you start to piece the puzzle together. You know, these 25,000 from IUL plus your Social Security, plus any pensions you may have, plus any other annuities you may have. And then once you start to put that puzzle together, you've just created a nice retirement income plan for you and your spouse.

Woody Bowling:
Yeah, perfect. I mean, that's what it's about. I couldn't have said any better. I agree 100%. Want to know where.

Producer:
Your hard earned money is going. It's time for an inflation demonstration.

Producer:
All right, Woody, this week's inflation demonstration, you know, we don't like to be the bearers of bad news, but we like to keep people updated on what inflation is affecting when it comes to their wallets. So this week on our inflation demonstration, diesel prices are on the rise again. Just in time for the holidays, 2022 diesel prices have increased 33% for November deliveries and are expected to go higher. And keep in mind, folks, that diesel prices are going to affect the cost of shipping for everything from food, essential goods, all these holiday gifts that are going to be sent all around to the good boys and girls across the United States. So diesel prices hitting just in time for the holidays. And Woody, that is going to have an effect on people's pocketbooks.

Woody Bowling:
Yeah, you know, it's been a crazy world the last couple of years since COVID started. And then we've had all of these supply chain issues and it's it's bled down into the price of diesel. The energy policies by the current president and his administration trying to go green too quickly. All these things that are now fighting the American public and the average consumer who's paying more money for the Thanksgiving dinner than ever before for gasoline, the highest in many, many, many, many years. Inflation not seen since 40 years ago. And that's on the heels of also in the last couple of weeks. Mehta, who is the parent company of Facebook, announced they're going to be laying off 10 to 12000 people. And another big name, Sam, one that I almost was thought. Unable to be penetrated by this inflation stuff, and that is Amazon. Amazon announced they're going to lay off around 10,000 people. They made that announcement this week. I don't know what the final number is going to be, but. Most of us are in holiday buying mode now and Amazon being the behemoth it is. Saying they're going to lay off 10,000 people. That's crazy. But hey, inflation. Until it's fully reined back in, which is probably not going to be for a couple of three years In my best estimate. It's it's not going anywhere fast.

Producer:
Yeah. And for those of you who are already maybe receiving Social Security, you are going to get a big bump as we flip the calendar into 2023. That built in cost of living adjustment protects Social Security recipients from the inflation that we're all experiencing. But Woody, you and me and everyone else that's still in their working years, we're going to feel it when we go to the gas pump or when we go to the grocery store, or when we start putting together our Christmas shopping lists and checking off the gifts for all the friends and family members. So that is your inflation demonstration for this week. And Woody, with just a few minutes left in this week's show, I would love to hear what it's like when people get in touch with you. You can visit Woody online at the Buckeye Advisor dot com. You can find his phone number there or I'll give it to you here. It's 937 974 6201. So Woody, if someone gives you a call or reaches out to you online, what's that process like as they work with you on a consultation?

Woody Bowling:
Yes. Am I do want to remind everybody that advisor is with an R at the end? Because if you do a search online and type it in with a fellow, with an advisor with an e r, it will not come up. So The Buckeye Advisor with an r dot com and you'll find us. We have plenty of information on there. We have a risk profile questionnaire attached. So if people want to get an early jump on giving me some information about themselves and their risk profile and things like that, they can fill that out. It's probably about a 5 to 10 minute form and they can do it online and then send it. And guess what? It pops up in my email. So Social Security, good news, 8.7% pay raise next year. A little bit more good news. Medicare recipients Part B will go down a little to 164 to 90. More news on the Medicare front. Annual enrollment period is still on. We still got about two and a half, three weeks left. So I'm still helping people very busily with that. So look, whatever kind of Medicare plan you have. You have until December 7th. If you're interested in a medicare Advantage plan in either changing or looking at one going from a medicare supplement and a standalone Part D to an advantage plan. And I can tell you, Sam, most of the people I sit with when they understand the full advantages of a medicare Advantage plan and all the extra benefits included nowadays, they really like the cost savings involved. And so that's something that I do. That season will be alive until December 7th. And then, you know, overall, I love to get to know people. Most people today are perfectly comfortable with doing an in-person meeting, which we can do in the comfort of your own home, or we now are available to meet at my new office space at ten Royal Drive in Spring Borough.

Woody Bowling:
It's right across from the UFF two story house. I'm sharing office space with Mr. Troy Patton of the Patent Insurance Group. So if you need a great quote on home or auto, certainly their office can help you with that. Just tell them you heard it from The Buckeye Advisor. So I'm going to be sharing space there. The signage is going to be in very shortly. So we're going to do a comprehensive. Note taking session in the first time we get together, I'm going to really need to understand where you at, where you're at, where you stand financially. How much life insurance do you have? Health insurance If you're still working, what's your 41k investing in on a regular basis? Let's look at that menu of mutual funds and figure out if we can tweak it. Maybe it needs to be rearranged a bit depending on your age. And look, we're here to do a comprehensive plan for you. We're going to do it a holistic fashion. Unlike most brokers, they just want to know how much money you have and they're going to put you in one of 20 mutual funds that they need to sell for that month. And that's it. They're going to set it and forget it. So, Sam, we're going to put we've got tons of different strategies on the tactical money management side. We can use that do extremely well. And we also are good at what we do on looking at the entire picture, and that's the most important thing. So people really feel like we've taken care of everything in one shop and one stop. And that's why people, I think, love working with me.

Producer:
All right. You can get in touch with Woody online at the Buckeye Advisor dot com TheBuckeyeAdvisor.com Or give him a call at 937 974 6201. Well, Woody, it was great to be back on your show this week. I want to wish the listeners in Ohio a safe and happy Thanksgiving. Thanks for having me on this week.

Woody Bowling:
Sam, great to have you back. We hope the Buckeyes pull out a win today and then next week as well after Thanksgiving. We hope everybody has a blessed Thanksgiving. Thanks for joining us and we will talk to everyone again very soon.

Producer:
Thanks for listening to The Buckeye Advisor. 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 Woody, visit the Buckeye Advisor dot com TheBuckeyeAdvisor.com Or pick up the phone and call 937 974 6201.

Producer:
Investment Advisory Services offered through Brookstone Capital Management LLC BCM a registered investment advisor BCM and The Buckeye Advisor are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Investments involve risk and, unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results.

Producer:
Fixed annuities, including multi-year guaranteed rate annuities, are not designed for short-term investments and may be subject to restrictions, fees and surrender charges as described in the annuity contract. Guarantees are backed by the financial strength and claims-paying ability of the issuer.

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