1.6.23: Audio automatically transcribed by Sonix

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

Producer:
Any examples used are for illustrative purposes only and do not take into account your particular investment objectives, financial situation or needs, and may not be suitable for all investors. It is not intended to predict the performance of any specific investment and is not a solicitation or recommendation of any investment strategy.

Producer:
Welcome to 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. This is Woody Bowling, The Buckeye Advisor. Welcome to our show. We are super excited to kick off 2023. Amazingly, it's already here and we are excited to kick off our first show of the year. I'd like to welcome our co host and producer live from Atlanta, Georgia, Mr. Matt McClure. Matt, welcome and happy 2023, sir.

Producer:
Thank you, sir. I appreciate it. It's weird saying that it's 2023. It's almost unbelievable in a way that it is already here. But I am looking forward to a great year and we've got a lot of great stuff coming up, not only on today's show but in the shows to come in 2023, I feel.

Woody Bowling:
Yeah, I mean, I keep hearing from lots of people out there, Matt, that we're bringing value, we're bringing great advice, we're bringing clarity and we're bringing reassurance and lots of other positive comments that I've heard that people are bringing away and taking away from our podcast and radio show. So we're happy to be here. 94.5 FM The answer Dayton. You can download it on their app or you can listen to us live naturally at 10:00 Saturday morning or 9:00 on Sunday morning or wherever you choose to get your podcast. Just look at The Buckeye Advisor and advisor is with an O or so you know, we've got to acknowledge right away. Ohio State fell just a little bit short in the semi-final game of the College Football Playoff. Not exciting for me to acknowledge that, but I got to tell you, we played one heck of a game and C.J. Stroud and the rest of the boys played their tails off. We fell a little short. We were very undermanned as far as injuries go, and that's unfortunate. But, you know, that happens to most football teams out there. So proud of the Ohio State Buckeyes. And we will wait for next season and see what it brings. But we're also anxiously awaiting that championship game with, you know, Georgia Bulldogs and TCU Horned Frogs. So, Matt, do you have a preference who wins the game?

Producer:
Boy? Well, I'll tell you first of all, that the Peach Bowl. Oh, what an exciting game. I think it was just back and forth and back and forth and so, you know, so much. And really one point deciding it in the end was just crazy. You got you got your New Year's Eve entertainment for your dollar. You got plenty of it for your dollar. There. You did just absolutely wild. I am I and not to go there but I in this particular national championship coming up am Georgia Bulldogs all the way as you said I am in Georgia so I'm a little bit biased but yeah, that's who I'll be rooting for.

Woody Bowling:
Yeah, it's a great game. The game before the TCU game, they pulled that game out, another exciting game. So look enough about sports. I could talk about it all day, but this is not a sports broadcast, unfortunately. Maybe we can work on one of those down the road. But right now we're going to talk about many things, financial, many things, insurance. It's been a whirlwind seven months on our show. And, you know, we're looking forward to bring it, as you said, more great things this year. So, you know, let's get this show on the road and 2023, let's put the first part of it in front of us and then we'll put it in the rearview by the time this hour is over.

Producer:
Yeah, let's do it. And we've got a lot coming up, as we say here, Woody, over the next hour, we've got some big takeaways from 2022 coming up. We you know, we're going to talk about those down markets. We're going to talk about inflation. We're going to talk about energy and food costs, interest rates. Boy, so much good stuff for us to talk about here, but we're going to actually share some good news about 2022. In addition to all of that bad news that we'll have to sort of re rehash here, we'll talk about beating the bank CD's. The most important change to make to your plan in 2023. We've got an inflation demonstration. We'll do a little talk about annuities as well coming up and your retirement planning and if we get to it because we get a lot to cram in here we've got this week in history as well and some good stuff there. But first, let's start off with our Quote of the week.

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

Producer:
And I said, quote of the week, Woody, but it really is quotes of the week this time around. They've got a two for one special this this week on quotes. The first one from Robert G. Allen who is sort of financial expert, an influential investment adviser and an author of some best selling finance books. And Robert G. Allen once said, quote, How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.

Woody Bowling:
I'd say the list is going to be pretty short.

Producer:
Yeah, exactly. Off the top of my head, none.

Woody Bowling:
Extremely short. Probably like a goose egg. Right. So, you know, there's a lot to be said for that. We talk on this show every week about the importance of having to take some risk, especially invest early, invest often for all those younger folks out there, people that are working for an employer, you know, take advantage of those 401 K and 403 B opportunities to put absolutely as much as you can in those and let the beauty of compounding interest over time become your friend and let it work on your behalf because those employer contributions are invaluable. Most companies have a vesting period. After that vesting period, you've met it by being there a certain amount of time, you're fully vested. It's transportable. If you do leave the company, you can do it with it what you want. You can do your own IRA at that time, which I help a lot of folks do that during the year. But, you know, it's a great word of wisdom and, you know, but I can tell you there are a lot of millionaires that park some of their money in savings accounts just so they can get to it if they need it, to take care of larger purchases or things that pop up. So we're not saying don't have a savings account or checking account. We need those. You need an emergency fund.

Producer:
Yeah, absolutely. You got to have that money set aside. But don't let that be the money that that you are, quote unquote, investing. Right. Because you're not going to get the growth that you would otherwise in in some other investments. All right. Well, our second quote of the week, as I mentioned, our two for one special. Here's the here's the free one, the freebie. It comes from Venus Williams, of course, the American professional tennis player, former number one in the world in both singles and doubles. And I won't go on too much about her particular career because as we said, Woody, this is not a sports show. But Venus Williams, pretty awesome in the tennis world, I must say. And she said this. And I think it's very apropos as we start the new year. She said, I don't focus on what I'm up against. I focus on my goals and try to ignore the rest. Very good advice.

Woody Bowling:
Good stuff. And I quick question, Are we charging the listeners for the second quote of the week? I'm not sure.

Producer:
No, it's it's actually free of charge. It's this time around. Yeah. Like.

Woody Bowling:
Did one get one? It's a BOGO deal for Exactly. Quotes of the week. Venus or Venus is probably one of the top five. Top ten. Her sister Serena, I think is probably number one. But Venus is an amazing athlete. She's been she was number one off and on for many, many years. And a lot of that time, her biggest rival was her sister. That's a kind of a cool thing. But, you know, ultimately, that's kind of the way I live my life. I quit making New Year's resolutions many years ago, and I think it's more people need to look at themselves on an ongoing basis, review their goals, whether they be short term, intermediate term or long term, and always work on yourself, things that you want to change, that you want to improve, whether it's, you know, you want to kick a habit, whether it's you want to eat healthier, you know, don't wait for the new year to do that. You want to exercise more. Well, don't wait until well, let's wait till winter's over and then I'll cram it in and, you know, so, so do those things on an ongoing basis. And I think the hardest part for a lot of people is getting out of bed. I know for me, that's the part that's the worst part of the day is actually getting out of bed. But once you're out, you know, then I've got a lot of energy and I'm ready to go. And you can tackle all those things that you set out to do that day. Keep it to do list. Keep yourself on track. I do those daily. I think it's a great thing that I started doing a few years ago that really helped me feel more effective and efficient each day and more productive and things you don't get done on today's to do list. Guess where it goes on tomorrow's.

Producer:
And there's nothing to me. Speaking of a to do list. Well, I'm not going to say nothing, but there are very few things more satisfying than going through that list and checking things off. You know, it sort of really helps you feel like you're accomplishing stuff. And I, I love that feeling of checking things off the list.

Woody Bowling:
You said it. I couldn't have said it better. It's the same thing with me. If I've got six things on it, I get four or five done. It's a fulfilling day and you can move one or two to the next day if you get them all done. God forbid that happens once in a while, then I mean it's even more amazing. So the small goals keep you on track to the bigger goals. And I think that's the key to people's long term financial success. You know, start small, keep moving in the right direction, then set bigger goals. And you know, we've talked about it on the show before. We will many times. It's not about naturally people are concerned about having X number of dollars ready for their disposal at retirement. You know, today, with the challenges that we're facing, like inflation and down markets and we'll talk about those more today, you know, worry about how much can I generate income wise so that I can combat those other factors that are happening that work against you, You know, find the right advisor that's a fiduciary independent advisor like myself, been doing it for 14 years.

Woody Bowling:
Somebody that knows the insurance world and the financial world registered on both sides and licensed on both sides. That can really help you understand how it all comes together. Because decisions you make in the insurance world and the investment world can affect the others and vice versa. So, you know, it all ties together. That's the fun part about what I do, very fulfilling in my career as being able to handle those different areas of people's lives and kind of put it all into one neat ball and put a bow on it and say, Look, this is where we're going with the plan. This is what we need to do, and keep people on the right track and then work with them along the way. And it's not always a straight shot. We do have to make adjustments along the way. Things happen, People die, you know, people divorce all those different things that life can throw at us. You know, you've got to be flexible. You got. Be ready to make some changes and some tweaks along the way. And that's what I hope people do.

Producer:
Yeah, and if you don't have a plan, you won't be prepared for those things. You got to, as we say pretty often here, you know, expect the best, but prepare for the worst. And then that way, whatever comes, you're ready for it, you know. And The Buckeye Advisor dot com by the way folks once again is the website it's TheBuckeyeAdvisor.com The Buckeye Advisor with an O or dot com. You can also call Woody at 937 974 6201. Well you know I tell you what you were when you were just talking there. The thing that I really popped into my mind was yeah, you know, when we've got all of these things going on, like we, like we're going to talk about here momentarily with 20, 22 kind of year in review in the financial world, you want to control the things that you can control, right? And that's part of that preparation that you were just talking about. Control what you can control. You can't control inflation, you can't control interest rates. You know, you can't control the market's going down. None of that is really things under your control. But you can control the things that you can control. The planning part of it, the having a having a plan for when things happen like they've happened this past year. Let's let's actually start, Woody, if you don't mind, hear about our big takeaways from 2020 to let's let's sort of take a look back in the rearview mirror at the past year, the year that was and go through kind of what happened.

Woody Bowling:
It was a tremendously horrible year, just a rough, bad year for the S&P 500. The NASDAQ, which is a technology focused index on Wall Street. And look, the S&P 500 is the really it's the most diversified group of companies, 500 companies that do many, many different things. And they're mostly larger, medium to larger sized companies. And they represent a very diverse segment of industries out there, 10 to 11 different industries, depending on who you ask. And, you know, when the S&P being off 20%, the S&P, the S&P being off 20, the NASDAQ, which is technology driven, which is more dramatically affected by the rising interest rates this year, in 2022, the Nasdaq was off 35%, almost a very, very rough year. There are people that made big, big bets on technology driven companies like Tesla Mehta, which is Facebook. Both of those stocks were down over 60% last year. And if I would have told you that was going to happen, you would have told me, No way. It's just not going to happen. Woody, you're crazy. Look, Netflix down over 50%. Layoffs started at some of the bigger companies like Amazon and some of these other ones, layoffs at Facebook. Thousands of people being laid off. I just read this week that Goldman Sachs, one of the biggest investment firms in the investment banking firms in the world, getting ready to lay off potentially a 3 to 4000 people. Look, that's what the Fed wants with all these high interest rates. They want the economy to feel the pain. They want they want unemployment to rise.

Woody Bowling:
I mean, that's the dirty little secret that nobody talks about is the Federal Reserve wants to see more unemployment. They want to know that these rate hikes, not only which have raised car rates, mortgage rates, they doubled mortgage rates last year from 3% at the beginning of the year to six and almost 7% by the end of December. So, look, the Fed wants the pain. Then they know it's working. Inflation has slowed down just a little bit, down from over 9% in the summer, down to about 7.2, 7.3 in October, November. So it's still very, very high. I mean, if inflation's at seven, the Fed goal is two and one half. So lots of lots of room to move to come down on inflation. You know, a bit of a shining piece of good news is for people that have money in banks or part of their money in banks. The CD rates are finally gone up a little bit. We're going to talk about some options where with some fixed indexed annuities and just plain old fixed annuities offer some tremendous opportunities in this environment to lock in some rates that are very competitive and, you know, that will rival, if not outperform some of those bank and credit union CD rates. So lots of terrible financial news with inflation, with high interest rates, with stocks being pummeled all the way around. But the good news, I think right around the corner, we hope, is when the Fed finally puts the brakes on the rate increases, that traditionally is when the market will begin to make some improvements and show signs of turning around.

Woody Bowling:
So right now, you know, I encourage you to be patient if you're an investor and, you know, we are an investment advisory and investment advisory firm. And so we're going to have part of our client money in the market and we're going to be able to distribute it, spread it around into different strategies. We want to make sure we're not all just dumped into one strategy that's make or break. And if that strategy is not diversified like ours are, you know, you tend to get yourself in trouble and people just focus Sometimes. I've seen people that have two or three stocks in the portfolio and that's all they have. I mean, it's it's weird to see, but it happens and there's people out there listening today. And we want to thank everybody for listening. But there are people that probably only have two, maybe three stocks, General Electric and Procter and Gamble, you know, just two or three blue chip stocks. And there's nothing wrong with having some of that. But you don't want to put all those eggs in that basket. And so I see that. And it's a concern sometimes. But ultimately, we're here to put together a plan that's going to weather the storms like 2022. We think the first part of the year can continue in that direction. But we do think the latter part of 23 is going to bounce back. And that's what we're waiting to see happens over these next few weeks.

Producer:
Yeah, and you mentioned there, you know, talking about interest rates and the market sort of expected to recover whenever those interest rates do start coming down or slowing down those interest rate increases anyway. So much of what happens on Wall Street, as you know, Woody, has to do with investor sentiment. What what investors and analysts are thinking is going to happen and they sort of have to read the tea leaves. Well, one of the things that that would be a you know, a big batch of tea leaves hitting them right in the face. Is the Fed slowing down the pace of interest rate increases and or bringing down interest rates at some point in the future? You know, I think that would just really cause a big rally on Wall Street and really sort of signal a big turnaround for the economy in general.

Woody Bowling:
Yeah, I read this week from a couple of very respected people in the financial markets that the the market sentiment right now by investors is at one of the all time lowest amounts. And historically, when these readings have been this low, when the negativity is so high that historically it is a good time to consider buying stocks. And so look. I think you hit it on the head. It is a there's been so much negativity over the last year plus that when they do start slowing the pace down to the rate increases, which they are in this year, and they're ultimately going to stop and the Fed will have to be ready to pivot if they see inflation fall, fall, fall, and they see other things that are negatively going on in the economy, They're going to have to pivot. They may have to even consider rate decreases by the second half of the year. We just don't know. So hang in there. Keep dumping money in your four one KS, your four or three BS. If you're getting close to retirement within five years or you're within three or five years after retirement, you want a second opinion on your portfolio. Some strategies to potentially look at better ways to generate income to offset all. That's craziness that's gone on. That's what we do. Just call me 937 974 6201. We're going to give you a complimentary visit. We're going to sit down and make notes and we're going to learn all about their situation and get acquainted. And then we're going to see maybe if there's a good fit to work together potentially. And then on that second visit, when I come back, we're going to put together some great ideas and strategies that may work well based on their input that they give me. And I need to understand the whole situation to make it all come together and work best for each individual. Because as we've said before, Matt, everybody's situation is different and that's the beauty of this thing.

Producer:
Yeah, that's absolutely right. I mean, you know, nobody is the same as their mom, their dad, their their sister, their brother, whomever, their neighbor down the street. Everybody's financial situation is going to vary. It's going to be different. So, yeah, there's no one size fits all thing here. And one of the things I was just I was actually looking through some of these inflation numbers that we have in our in our notes for the show here, Woody was one of the more interesting ones was that food costs continuing to rise both at supermarkets and at restaurants. But actually restaurants rose less than the grocery store prices, which I thought was a little surprising. Restaurants are more expensive, obviously, to begin with than going to the grocery store and buying your own produce and things there. But food at home that's grocery store or supermarket food purchases actually rose 12% over the past year. Food away from home, that's restaurants eight and one half percent since November of 2021. So a little bit of a surprising rise there. Not surprising that they're both up, though, because, you know, prices are up pretty much everywhere. But that's why people need to get in touch with with you to help navigate this this thing, because we're all feeling this pain.

Woody Bowling:
Yeah. I mean, everybody, regardless of whether you're retired or not, I mean, you're feeling the pain of higher prices. And the interesting thing that I see now is this is for the first time in my 57 years, this is the first time where I've seen the prices now so high in the grocery stores that it makes almost it makes people think twice about whether they should eat out more often. You know, historically, as an advisor, I would tell people, hey, look, eat out less, you know, make it more of a special occasion, make it once a week instead of four times a week. You know what I mean? So people are busy, they've got their lives, they've got their kids, their grandkids, everything going on, working a lot. So with these prices and I'll tell you this, because I do some of our grocery shopping, you know, in addition to my wife, I try to help her out. And I can tell you the 12% number is seems low to me. A lot of the things that we actually buy on a regular basis are up 20, 30, 40%. And so the 12% is probably an aggregate and aggregate from the USDA website. But the eight and one half percent in restaurants is probably pretty close. You know, I can see certain meals that we order on a semi-regular basis, and I can just about gauge the price difference. And it is it's in that eight, ten, 12% range for the most part. But God love them. They're hanging in there and they're open, which which is a blessing that we can even have restaurants be open and go to. So I'm thankful for that.

Producer:
Yeah. Boy, it's kind of crazy how these last three years or so have really changed our perspective on so many of those kinds of things. It's like for a while there we couldn't even couldn't even go out to eat. And yeah, definitely grateful to, to have those restaurants, those places to eat, and especially those I like chain restaurants just as much as the next guy. But, but the locally owned places are my favorites because that way, you know, you're supporting your community and you're also, you know, getting to know the folks that who live and work there in that community as well. And I think that's a great, great thing to do. Well, it will. Just about time here, Woody, for our very first break. The first half of the show come and gone already, which is kind of crazy. They always seem to start flying by here, but plenty more to come in the second half of the show as The Buckeye Advisor continues, folks, once again, The Buckeye Advisor dot com is the website where you can call Woody at 937974 60 201937 974 6201 and schedule your free consultation. Plenty more to come on the other side of this break. Stick around. More of The Buckeye Advisor coming up.

Producer:
You're listening to The Buckeye Advisor to schedule your free no obligation consultation with Woody. Visit The Buckeye Advisor dot com. Shana. Miss part of today's show. The Buckeye Advisor is available wherever you listen to podcasts and online at The Buckeye Advisor dot com.

Producer:
Welcome back. This is The Buckeye Advisor. I'm Matt McClure here alongside Woody Bowling The Buckeye Advisor himself of course The Buckeye Advisor dot com is the website that is advisor with an or you can also call Woody at 937 974 6201.

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

Producer:
And yes, of course, that's my favorite time of our show where we get to, you know, just just laugh a little. Because sometimes when we're talking about all the stuff going on in the economy, what have you got to laugh to keep from crying? And sometimes the dad joke makes you do both. Really? So. So let's let's lay it on us here. What what is the dad joke of the week?

Woody Bowling:
Well, Matt, the first half of the news show for 2023 definitely flew by quickly, but I'm excited to get to the dad joke as well. I just have a question for you regarding this joke, Matt. Why is grass so dangerous?

Producer:
Oh, I don't know. Why is grass so dangerous?

Woody Bowling:
Because it's full of blades.

Producer:
You got to be careful. There's a lot Be careful with that.

Woody Bowling:
Dad jokes. And this is one. And again, remind our listeners, I just need to remind them there's no charge for that. So they can't complain much. And if they don't like that one as well, some of the others tune in for our next episode and we'll be bringing it back and hopefully we'll be new and improved.

Producer:
That's that's right. It's almost like, you know, of all the dad jokes I've heard, that's certainly one of them, you know? That's right. No, that's a good one. You've got to be careful around that grass. All right. Well, as we continue on here, what we just talked a lot about the economy in the last year, interest rates, inflation, all of those all the things that everybody's feeling right now and has been feeling. So it's it's like sort of a bad news, good news, bad news situation and, you know, soften the blow here. We'll start with the bad news first. Right. And that is all of those things we just talked about, the markets dropping in 2022, inflation running at 40 year highs, interest rate increases that we haven't seen in 40 years, that all those things. So if that's the bad news, then what in the world is the good news right now? Because there's got to be some, right?

Woody Bowling:
Yeah. I mean, you know, in my opinion, there's lots of good news. The Buckeye Advisor, that's me. I'm going to help people really put their overall financial strategies, insurance strategies and everything to work together. And I think that's the cool part that's always fun for me and sets me apart from a lot of other advisors out there because I understand Medicare inside. Now, the difference between a medicare supplement, the difference between a medicare Advantage plan and a supplement, I work with multiple carriers on those that all are advertising daily on the TV and mailing people gazillions of pieces each week. So making the right insurance plan with Medicare is great. It's very important to retirement planning when people turn 65 or if they're on disability for two years prior to turning 65, they also then become Medicare eligible. I even help people. I just last week I work with someone who's in between jobs, 34 years on the job and all of a sudden downsized and with no notice basically other than a couple of days. Tough conversation. But you know, this person has 30 plus years on the job is still in their mid fifties great experience person they have a41k we're going to work with to help roll that to an IRA, but also was able to do a short term health insurance plan to cover just in case, you know, any kind of a hospitalization episode, anything like that until this person moves on to their next employer.

Woody Bowling:
So that's another area. Life insurance very important in the overall structure of people, you know, being able to pass along a tax free benefit through life insurance. It can help heirs or beneficiaries pay taxes that might be due on inheritance. So lots of things. And then finally, as an investment advisor, that's the fun part where we're going to allocate and talk to folks and really point out some strategies that we're going to protect the principle on a portion of their retirement savings. And then the other part we're going to. Use tactical money management strategies that have been proven to be very sound and very effective. We're going to and a lot of times we're able to reduce people's fees that they're paying across the board. We're going to introduce bond replacement strategies that are principal protected that we just mentioned with fixed indexed annuities. And by the way, we're going to play in a chapter from our Annuity 360 book written by one of my colleagues, Ford Stokes, who was in your town in Atlanta. And Ford's a friend of mine, does a fantastic job. He wrote a great easy to read, easy to understand book on annuities. It talks about plain annuities, just fixed rate ones he talks about. Variable annuities, which are really the no no annuity loaded with fees, loaded with market risk because they have mutual funds and the underlying strategies. And then also the just right Goldilocks just right annuity that we like to call it, which is the fixed indexed annuity and that provides principal protection, but it also provides market like growth with the index that we choose to follow.

Woody Bowling:
And so when the market has a good year man, I've had clients, Matt, be up seven, eight, 10% based on the index they followed with their fixed indexed annuity. Now we don't know when that's going to happen again or how often it happens, but in a down year, if you had a fixed indexed annuity with me, you lost nothing last year, zero. And sometimes that's your hero, right? So there's lots of good news, I think, for people out there. And bank CD rates have gone up. But also we do have those plain vanilla multi year guarantee fixed annuities we talk about occasionally on the show and sometimes people just prefer something like that. So if you're looking for four and one half, 5%, five and one half percent, and you're willing to commit your money for a couple of three, four years like you would with a bank CD, give us a call. 937 974 6201. I mean, those are available and they are again principle protected guaranteed payment. And some people want that for part of their money. And I'm okay with that. For part of your money. Just be careful with the percentage being too high to inhibit long term growth. And you know and also depending on age as well, need a higher.

Producer:
Rate of return from your safe money. Listen up. It's time to beat the bank CD rates.

Producer:
And yeah, Woody, you know you mentioned a moment ago bank CD's and obviously the bank CD deposits been around for a long time. People expect some growth there. But you know, it's not historically been a wild and crazy growth as we were talking about in our quote of the week there earlier. You know, how many people have you ever seen become millionaires by quote unquote, investing in savings accounts? You know, a bank CD is basically a type of savings account. So let's talk about how things are looking now as far as bank CD interest rates and how it might be possible for listeners to sort of beat those interest rates and and accrue a little bit more money.

Woody Bowling:
Yeah, First, you know, first of all, Matt, we always we like to advise people to have at least 4 to 6 months of your monthly expenses that you have in your household. I recommend 4 to 6 months in a savings account or checking account so that you can readily get to it. If you have a job layoff, if you have an unexpected big expense, you know you can pull from either that emergency fund or if it's a car repair or something like that, you can probably pull from that account and that will serve just fine. Now, if it's a new furnace, a new heat and air conditioning unit, you might not have enough in that emergency account to cover that. You might have to go into your actual long term savings. That's going to be your second option to get that money. You know, we prefer and hope that you don't have to put it on to a 30%, 25% interest rate credit card. So, look, it's funny, Matt. I see interest rates for CD's all over the board from my own bank that I bank with to the credit unions to I read I physically read a newspaper almost every day of my life. If not, I'll read it online. So look, I'll see. I see interest rates from one and one half to 2 to 2 and one half. I mean, all over the board, depending on how long people are willing to commit their money.

Woody Bowling:
And for most people, if you're going to have a CD of any length of time up to five years or you're going to have an annuity for any length of time up to five years, you know, the annuity that I use the most, a fixed indexed annuity. A lot of people don't understand that the fixed indexed annuities of today are not like they were 20, 25 years ago. They had very long surrender charges back then. 12 years, 14 years. And it's just way too long. And thankfully, the industry, the insurance industry that's regulates those those are issued by insurance companies that are highly rated. And the one that's most popular that I use the most often now only has a five year surrender charge schedule, meaning you get some access in years, one through five, you get free withdrawals of a certain percentage, 10%. But once that five year mark hits and you've been able to get some growth out of it, hopefully with that index that we're following after five full years, there is absolutely zero walk away fees to that fixed index annuity and in all likelihood we're not going to move it anyways. We're going to keep it there because that insurance company has a wonderful index that we follow. And it it's got a great track record of growth. So there's lots to consider. There's lots of people wanting to get a hold of the consumer as far as their money goes.

Woody Bowling:
Banking itself is a very competitive industry, credit cards, very competitive industries. My industry is very competitive industry, you know, but that's one of the things I like about doing this show. It gives us the platform to talk to people just like this. So, you know, if people are listening, they're going to Kmart or not Kmart. It's not even around anymore. They're going to Wal Mart, They're going to Lowe's. Dollar General. Wherever you're going today, you're going shopping, you know, whatever. We're glad that you're listening. I appreciate you doing it. And if you're listening to a podcast at your own convenience, when we're not normally on the radio, great. Thanks for listening. And, you know, reach out if you got questions. We want people to reach out to us about all sorts of topics. You don't have to be ready to retire. You don't have to be ready. Go on Medicare. I've got lots of people I have help that are in between jobs or there are a few years away from Medicare and they need something else. Life insurance. They want to do some tax free planning to consider rolling over an IRA into a Roth IRA, which we talk about sometimes on the show. So tax free is one of our favorite ways to get to your money later on in life. And we can help people understand and also really analyze whether it makes sense because it's not right 100% of the time.

Producer:
Yeah. As we say, you know, not a one size fits all situation when you're planning for your retirement future. And let's go ahead here. Woody, I think it's a good spot for us to go ahead and play that. You sort of teed this up a few minutes ago, gave us a little a little bit of a preview here from Ford Stoke's book called Annuity 360. This is the chapter on that, that Goldilocks annuity, that fixed indexed annuity that we were talking about. It's Chapter 13 of the book just a couple of minutes here with some great information. We're going to listen here along with you and we'll chat more about it on the other side momentarily.

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

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

Producer:
Well, there you have it, Woody. A chapter from the book Annuity 360 read by the author himself Ford Stokes and a lot of great info there on fixed-indexed annuities. You know I mean it's that that that potential for the market like growth but when the market goes down like it did last year boy zero can be your hero because you don't lose a penny.

Woody Bowling:
Yeah and in this book is free If you want it, just call us or send me a note on the website. The Buckeye Advisor with an ore dot com hit the contact Me form and send me a note and I'll get the book out to you. Free of charge to you. You'll have it this week within two or three business days. So I send those priority mail at no cost to you. Take your time, read the book, highlight it, make you know, make highlights question. It's just, you know, the more knowledge that our listeners have, the better for them to make the right decisions that are informed decisions. And the typical long term stockbroker type advisor doesn't advise people on life insurance. They don't advise people on anything other than how much money do you have, Mr. Client? And then we're going to dump it into several of our mutual funds that our firm has to put up a guarantee almost every month that we're going to put as much this much new money in that mutual fund as part of our commitment to you, Mr. Mutual Fund. Family. So people get loaded up on mutual fund families. And I see it all the time. I'll look at a brokerage statement and I'll see the same five or six or seven mutual fund families in different forms and varieties. So we are not beholden in any way to that. And if people can make a good informed decision to protect a portion and I never say an exact amount, I say a portion of their savings and retirement savings in something that's so unique that it can protect the principle, but also give you an opportunity to make so much more than a CD can make in the long run.

Woody Bowling:
I think that's a great proposition for people. And then our investment advisory side, very strong with strategies tactically managed, adjusted quarterly for our clients. And you have me, The Buckeye Advisor. I am looking at client accounts first thing in the morning. Again during the day once or twice, and then in the evening. So, you know, my money is invested in many of the same strategies and tactical ways to do this that my client money is in. So I personally invested in this my retirement planning and savings. Those dollars are riding alongside my client dollars. So, you know, when there's when there's drops or losses in those strategies, I feel them. And then when they're going up, I feel that as well. So again, it's having somebody that's right there with you that's a financial quarterback. We've we've used that term before and I like it. Most people need one. They really do. They need a quarterback who can make strategies available to them and then work collaboratively to decide which and how much ways we want to go. And, you know, that's the fun part about what I do, very fulfilling. It's relationship driven. And, you know, I wouldn't have it any other way.

Producer:
Yeah, that's what it's all about there. When you talk to The Buckeye Advisor and the website once again, folks, is The Buckeye Advisor with an R dot com. Or you can call Woody at 937 974 6201.

Woody Bowling:
Want to know where.

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

Producer:
Well, a few minutes left here on the show, Woody, and we want to get quickly to an inflation demonstration. I thought this was an interesting article from Fox Business that was talking about the adult children of retirees really worried about the impact that high inflation is having on their parents retirement savings. That's according to a recent survey from American Advisors Group, or ARG. I mean, that's interesting because we're talking really about kind of the sandwich generation, we call them, right, who are trying to care for parents as well as children. And that can be really overwhelming in a time like this where there's been so much inflation. You have to think I'm paying so much more for everything for for my kids, potentially for my parents. Their retirement savings are dwindling as a result. That can be pretty overwhelming.

Woody Bowling:
Yeah, it's a tough spot to be in. Believe me. I'm I'm living that. My parents are, you know, 81 and 79. Currently. They'll be here in a couple of days. They will be a year older. And they've had a couple of health issues over the last two or three years. So, you know, my kids are in their mid twenties, so, you know, plus we're worried about the bite of inflation out of everything that we spend. So, you know, I can relate to this very well. And I can tell you that long term, it's hard to predict what inflation is going to be for the long term. But I can tell you there are continually going to be options that we can help people with and help them understand what's driving the various factors in play. That's what we want to do. So, again, if you know and you can understand some of the things that are happening, it may not change it necessarily, but at least you'll understand it more and you'll have a better picture of the macro environment and things. And I think that helps people a lot as well. There the media is going to bite on the same headline all day long in the 24 hour news cycle. And I'm going to help people focus on the macro, the overall bigger picture. And you know, a lot of my clients thank me for that because they understand the bigger picture and implications down the road from those things that are happening today.

Producer:
It's this week in history. And as we close out this edition of The Buckeye Advisor, we like to take a look back at some big things that happened right around this date in history. And the first one, boy, a huge one in the sports world. He.

Woody Bowling:
It was in this date, 1921 of the most impactful transition transactions in Major League Baseball history. When Babe Ruth was bought from the Boston Red Sox by the New York Yankees. And I tell you, I don't think we need to belabor his accomplishments because Babe, a.k.a. the Sultan of SWAT, turned out to be a pretty decent baseball player.

Producer:
Yeah. Yeah. You think? I mean, he he broke records and established records that stood for decades and decades and decades. They called it the original Yankee Stadium. It was the house that Ruth built. I mean, he his legend lives on there. Another big sports one from this week in 1976. One that I am fond of is that Ted Turner actually purchased the Atlanta Braves, get this, for a reported $12 million. He bought the entire team for $12 million. You can't maybe find me a player, especially a high profile player who makes $12 Million in a season. I mean, that's like I don't think in the top 10% of players you could find one.

Woody Bowling:
Yeah. I mean that's what 4546 years ago pretty good return on his investment. Now the team's probably worth about 3 billion maybe four. So a pretty good return.

Producer:
Yeah, exactly. And you know, I've won a couple of World Series pennants and all that in the process, so not bad. Not bad at all. All right. What do you. Well, that is just about going to do it for this time around. Just a few more seconds here, left on the clock as I'm looking at it, but I've appreciated it once again, sir, it's flown by. I look forward to many more shows to come throughout the new year.

Woody Bowling:
Matt, thanks for joining me again today. It's been another very quick episode of The Buckeye Advisor and I'm super proud of the content that we put out and I think we put out another great show, very full of information. And you know, all we can do is let people know what's going on and then give them the opportunity to give us a jingle and let's work together to help them overcome some of these crazy things going on out there today.

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 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 adviser 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.

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