Answering Listener Questions about Money and Retirement

6.16.23: Audio automatically transcribed by Sonix

6.16.23: 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, welcoming you to the latest episode of your favorite podcast and radio show, The Buckeye Advisor. And that would be me. I am so glad to welcome you to our show. We're very excited to bring in right away without any further delay. We've got some important updates and announcements to make in just a second about our programming, but welcome. Matt McClure. Matt is our co-host and producer coming to us live from his mansion in Atlanta. Good morning, Matt. How was your week?

Producer:
I'm doing very, very good, Woody. I'm but you know, I wish it was a mansion. But from my humble abode in Atlanta, Georgia, things are looking looking great. I hope you've had a good week.

Woody Bowling:
Been a good week. We actually got some rain for the first time in almost a month. So that's been exciting. You know, you're getting older when you talk about the weather. I mean, I think that's probably an indicator that everybody talks about the weather as we get older. But we've got some exciting news for our listeners. We are on today, Saturday, June 17th. The show is going to be re-aired on Sunday, June 18th, 2023, 9 a.m. to 10 a.m. both days. So we're an hour earlier coming to everyone and we're on the same time slot both days. The radio station 94.5 FM Widb Dayton, Ohio has changed ownership. They have made us feel welcome that they wanted us to stick around and keep doing what we do. So I am very grateful to our listeners. So if you're listening for the first time, the 10th time or the 20th time in the last year, welcome aboard. Thanks for joining us. We couldn't be here without you. Matt and I put a lot of time and effort into this program. We want to educate. We want to stimulate different ways of thinking. That's what we enjoy about our show, The Buckeye Advisor. And if you haven't figured that out by now, hopefully you will soon. And I'll be looking to hear from lots of our listeners this week because I think we've got some more good content. Last week's show, I thought Matt when I listened back was stellar. The challenge is we keep raising the bar. Can we do it again?

Producer:
Yeah, that's the thing. We keep raising the bar and keep raising the bar and we keep jumping over it every time. So, you know, we're getting getting to Olympic levels of jumping to new heights here. But yeah, no, it's it was a great show last week and this week a lot of great stuff in store as well. Woody We do have a lot coming up, which we'll get to in just a second. But I do want to say, not only can you get us on the radio on Wwdb at 94.5 there in Dayton, you can also hear us anytime you want. Yeah, you can take the Buckeye advisor with you no matter where you are in the world. Just subscribe to the podcast and I'm talking about anywhere podcasts are available. You can also check us out on YouTube. Just search for the Buckeye advisor on the YouTube website or in the app. And of course, don't hesitate to call Woody either. You can give him a call. (937) 974-6201. That's (937) 974-6201. And you can also go to the website it's TheBuckeyeAdvisor.com basically Woody if people want to get in touch with us specifically you and can't and can't find you they're not looking because we're pretty much everywhere.

Woody Bowling:
Yeah very true. We want to give people options. You know people are busy today when they're working, they're busy. And I'll tell you, I have a lot of clients that are retired and they stay busier in retirement, I think, than they were when before they retired, which I think for them, it's a way to go. And I certainly applaud them. And a lot of people don't realize that you can really get busy in retirement depending on grandchildren travel and all that good stuff. But Matt, we've got some good information. We were pleased to find out this week as we've been watching the stock market rally over the last couple, three weeks, it's really been on a nice little positive, uplifting ride in a positive momentum. And I like that a lot. My clients, where I manage some of their money, very, very happy with that. My own money is riding along with clients. The Fed decided to sit still on increasing rates or decreasing. They did nothing this week, which is very positive. We're glad to see that. However, as we know, it's not a secret anymore. It's really probably one of the worst, worst kept secrets. They are open to continuing to raise rates as they get inflation reports over the next few months. So we don't think we're out of the woods yet completely. But if inflation stays under control and those things keep ticking along the way, they are, I do think we're going to see the Fed sit still and continue that pattern. And I do think the market's going to continue to do well. So we're going. To talk about some things during the show that people can do with part of their retirement savings to protect themselves from market volatility and also create a pension for themselves in retirement. I don't want to tip our hat too much yet, but it's going to be a good show and we are happy that the Fed's sitting still for now, although they are still open for future increases, of course.

Producer:
Yeah, absolutely are. And all depends on, as you say, those inflation numbers going forward. Another thing, of course, that people are concerned about going forward even a little bit farther than that in the future, taxes, you know, if you think taxes are going up, you're going to want our free report on tax free investments. It's absolutely free of cost to you. You can get it by going to TheBuckeyeAdvisor.com that's the Buckeye advisor all one word and that's advisor with an O R by the way TheBuckeyeAdvisor.com or call Woody at (937) 974-6201. Well what have we got a little bit of an inflation demonstration coming up. Speaking of prices on the increase here, we're going to show you kind of how inflation is affecting you and could put a little bit of a damper on your summer vacation this year. Some questions from our listeners. That's going to be kind of the bulk of things today and what we're going to answer coming up here for you. Those questions that you have reached out to us and asked Mister Woody Bowling is going to have those answers. We'll also bust some myths about Social Security. You know, we are kind of like the myth busters around here. We said it last week, We're like the MythBusters, but with fewer explosions. So.

Woody Bowling:
That's right.

Producer:
We'll continue that trend here, hopefully this week. Options outside of your employer's retirement plan. We'll cover some of those. First, though, let's get to our quote of the week.

Producer:
And now wholesome financial wisdom. It's time for the quote of the week.

Producer:
And those words of wisdom this time around. Woody, come from James W Frick. Frick developed the Notre Dame Foundation into one of the most successful fundraising operations in the nation. He was active in a variety of community endeavors as well The United Way, National Urban Coalition, American Heart Association. So very philanthropic there as well. And James Frick said this, quote, Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are. That's very profound, very profound.

Woody Bowling:
It reminds me when I saw this of do as I say, not as I do, kind of similar to that, but almost turned around. So this really what he's saying is you can talk all you want about your financial priorities, about planning for retirement, about reducing your debt, paying off your home, whatever, saving for retirement, saving for college for a kid or grandkid. Ultimately, where you actually spend the money is what counts. And when I find that out, I'm going to really know what you're doing. So I like that. It's profound. It's to the point and it's pretty much no BS, which I like that I don't like to BS with people. People need to really hear things straight and I think most people appreciate the honesty. And as an advisor, as a financial fiduciary advisor, a financial quarterback for a lot of clients. That's what people need to hear. They need to hear, What can I do? When can I do it? Can I get there? You know, based on this scenario, do I need more? How much more can I get? How much more can I need? So that's the fun. That's the joy about what I do as an advisor. And, you know, being able to take in their whole picture, including life insurance, health insurance, Medicare, how much they've got currently in retirement, how much they project to have when they do retire, you know, whether you're 5 to 7 years away from retirement or whether you're, you know, 5 or 7 years into retirement. I help people in that entire area and a few people outside of both of those areas. So, you know, look, people are looking for answers. They really need guidance. And, you know, we're pleased that the response has been there with the show. We're looking for more. A key phrase that I hear is, I wish, Woody, that I would have contacted you sooner to learn more about your information and really learn to get to know you so you can get to know me.

Producer:
And so if that's you folks, don't don't let that be you Don't hesitate any longer. Give Woody a call. You know. (937) 974-6201. Is that number for the free consultation which will go into coming up here in just a little bit but a great great value because hey you know it doesn't cost you a thing. So that's great value for my money because free fits right in my budget. You know, I can't.

Woody Bowling:
I can't lower the price anymore. Matt, you you made it clear that I have to do it for free. I've complied, but I can't go any cheaper.

Producer:
This is true. This is true. Otherwise you'd be paying people to come see you. And that's not a thing.

Woody Bowling:
That's not a winning formula.

Producer:
Right? Exactly.

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

Producer:
We're talking today about more Americans opting for staycations or near stations as the inflation picture is really continuing to kind of wreak havoc on people's budgets. It has softened some, but we're still feeling it, Woody.

Woody Bowling:
Oh, my gosh. I mean, we're feeling the effects of two years, two and a half years of inflation, and it's continued and continued and continued. And in all likelihood, a few items will come down in price. You know, some foods have come down in price. Gas has come up and down in price. But, you know, there are certain things that once they go up, they're not going back. And that includes things like wages and some other things and, you know, the cost of automobiles. And, you know, you look at plane fares and you look at the cost of these vacations and that's why people, you know, 41% of Americans say they're not even going to travel at all this summer. That's a that's a big number. You know, 1 in 5 say they're limiting trips to those within driving distance. You know, number one, flying is a hassle. It's kind of a necessary evil. And I'll be honest with you, if I can get there in 6 or 7 hours by car, I'm gone in the car. I don't want to deal with the airport. By the time you get there. Two hours ahead of time. Wait. Get on the plane. Get off the plane. Get your rental car and all that. I mean, it's easier and more cost effective to do it by car. So it's a very staycations are a great idea. There's lots of things to do in your area. I mean, just check it out and it's a great thing and people are doing it and it's unfortunate, but inflation is here because of the cumulative effects of the last two and a half years. And even though it's going to, you know, continue hopefully to slow down the amount of the growth, but still some of the prices that have increased, you know, we're going to have to live with those.

Producer:
Yeah, that's very, very true. It's not very often that those all go backwards. So it's yeah, a very rare thing. Well, and also, I think a little bit of a tip that we can provide to our listeners to hopefully help ease the pain a little bit is to be flexible, right? Because, you know, flexibility with your summer travel plans can really be a good cost cutter for people when they're looking ahead, trying to plan over these next few months.

Woody Bowling:
It's a big it's a big one and flexibility is awesome if you can have it. And a lot of people in retirement do have that. You know, unfortunately, when when it's a family situation and they've got kids that are on summer break, you don't have as much flexibility. The airline industry knows that, the hotel industry knows that and all that. But, you know, if you can be flexible on the dates that you want to fly, if you can do last minute deals and you have an idea of I would like to go around this time, but let's just see what's out there. And if nothing's there that you like in the price range, then you know you don't do it and you wait till another time. But you can really find and I personally, whether it's a baseball game, whether it's an airline flight, a concert, you know, a lot of times if you wait till the last minute, you can take advantage of someone. The seller's need to fill that seat or to fill that room at the hotel and you can get some nice deals.

Producer:
Yeah, you really can. And there are entire businesses and sort of aggregating websites that are built around that very model of like, you know, if you, if you're able to wait until the last minute, there are deals to be had out there and nine times out of ten you can you can find a good one. But there are also, you know, there are big concerns still about inflation, as you say. Well, even though things have tamped down, some Harris poll reported earlier this week, actually 75% of Americans believe the worst of inflation is still ahead of us, despite the fact that it has slowed people really concerned about gas prices. 78% really feeling the sting of gas prices, groceries, eating out, utilities, health care all up. And people are really feeling that, according to this poll in the wallet. The people who responded to the survey also report that common lifestyle changes they're having to make because of inflation, almost half seeking sources of additional income, again, almost half cutting back on savings or stopping saving altogether. And as we'll talk about, I'm sure over this, the remaining part of our hour together here, we that, you know, cutting back on your savings particularly if it's you know, the savings that is going to be, you know, intended for your retirement. That is not a good thing. That puts you behind where you should be.

Woody Bowling:
It is not. And you know what stands out to me, Matt, when I hear these numbers and see them, is the overall pessimistic view of. Consumers in general. And what you see in the media, what you see in the news, you see in our lives a lot of division, a lot of pessimism about the economy, a lot of people feeling like they've been squeezed out of things that they want or need because of inflation. There's division in the media of all sorts of variety of issues, cultural issues, politics, you name it. So from these one, I see these numbers. It's upsetting because I think of all the people that have worked so hard to get to retirement, to get to that stage where they want to enjoy the quote unquote, golden years. And then it turns out that in some cases or in quite a few cases, if you don't plan correctly, those years are not so golden. And. All these things cost money, gas, groceries, utilities. And they've all gone up so much over the last two and a half years. And again, like we mentioned a few minutes ago, the likelihood of your utility bill or anything like that going down in the future, it's not going to happen.

Woody Bowling:
It may not go up again for another 4 or 5 years based on, you know, regulations, but they're not going to go back down. So it's disturbing. It's upsetting. But people are looking for guarantees. They're looking for answers, and they want to be sure of some things in their life for retirement. And that's where we come in at the Buckeye Advisor you we're going to help people understand their budget, how to get to certain places, how to create income, how to make sure that your you know, being tax efficient, fee efficient with the money that you've saved in retirement or for retirement. I can help with all those things, a fiduciary advisor. And that's what I enjoy and that's why we're doing this program. We want people to be aware that there are ways to get answers and get the straight answer, and that's what you're going to get because I'm I'm out there on your side as your financial quarterback, and we're going to look for the best avenues to create that type of scenario where people can thrive in retirement and not struggle.

Producer:
Yeah, we want you to more than just survive in your retirement, which is obviously, you know, we want you to survive in your retirement, but we want you to do more than that. We want you to thrive. That's really what the Buckeye advisor is all about, helping you get there no matter what comes your way, no matter what the economic situation is, no matter what might happen in your life, that you might think, Oh, this is going to be life changing in a way that's not going to be great. It's going to really put a damper on my my retirement plans. No, we're going to put a plan together with you working with the Buckeye advisor, Mr. Woody Boling, to to help you have the retirement that you've dreamed of no matter what happens. And that's the thing is it's going to be something that you can count on. And that's really where the rubber meets the road here. You can go, by the way, folks to TheBuckeyeAdvisor.com that's the Buckeye advisor with an or.com and get some more information about how to reach out and get that journey started for yourself.

Producer:
And you know Woody, you know a lot of people have questions obviously when they reach out to you via that method or calling (937) 974-6201. We always, always, always love listening or love hearing rather from our listeners and listening to them when they give us a call or go to the website there. So now in the next part of the show, we're going to answer some questions from our listeners. This is exciting here. Some retirees and pre-retirees who listen to the show have asked these questions. And so what I will do now here, Woody, and the first portion of this is I'm just going to read this first question from a listener and have you sort of riff on an answer here for us as we continue along. So number one, our question from a listener of the show is where will my retirement income come from? I have been saving for decades for retirement, but now that I'm close, I'm wondering the best ways to turn our savings into the income that we need to live on during retirement. So what would you say?

Woody Bowling:
Woody Yeah, that's a great question. I mean, there are that is a huge concern for people. They need to know they people today, you know, they they assume that they can count on Social Security as one part of their retirement income planning. Company pensions have pretty much gone by the wayside. They're almost like the pterodactyl Don't spot those often anymore. I occasionally do run into people that have a pension. Strange to see it when it happens, but occasionally there are some companies still doing that. Usually those people are public employees of some variety of teacher, worked for the state, work for the county, whatever. So I see that. And then you've got personal savings, a 401. K, a 403 B, whatever, a Roth that you've saved or a Roth that you want to look at setting up and maybe transition away from that 401. K or traditional IRA that you've accumulated. Maybe you want to take a look at converting some or part or all of it to a Roth IRA eventually So those withdrawals become non-taxable down the road so they can become tax free. So it's a great question. And then also, you know, a lot of people do work a part time job in retirement of some variety. And a lot of people do it because they want to stay out of that. They want to stay out of the house or their spouse wants them to stay out of the house and different ways to skin the cat. But, you know, we help people. Those are usually the four places, you know, and the withdrawals from your savings that you've accumulated can come in the form of a regular monthly distribution that you take that I can help you determine how much you need.

Woody Bowling:
And we can set that up where it's an automatic monthly distribution that goes right into your checking account. And then also the other way, if you don't want to get into your retirement accounts that are pre taxed. If you don't want to touch those till 73, when you turn the age 73, now is when you have to take out your required minimum distributions. We can help come up with some income strategies at that time as well. That can also because you have to start taking required minimum distributions based on your age. And each year at age 73 and above each year, the IRS has a schedule where the table requires you to take a little bit more each year, each year as you get older and closer to your expiration date. That's a polite way of putting it, I think. But we all have an expiration date. We just don't know when that is. If we did, it'd be cool if God would like send us an email and say, Hey, this is the date and it would make it easier for people to plan, but that's why we're helping people plan. But those are the four ways income and retirement can come from those areas, and it's a crucial component to know how much income you can generate in retirement to supplement that Social Security, because most people today do not have the availability of a pension that was so common 20, 30, 40, 50 years ago.

Producer:
Yeah, absolutely. So so just a couple minutes left here in the first half of the show. So we'll get one more question out of the way before the break. Another listener asked us this, Woody, how much will my income need to increase to keep up with inflation? What say you?

Woody Bowling:
Another good question. I mean, you know, what I've said over the years is typically around 3%. Now after what we've seen in the last two and a half years. And you add that into the last 18 or 20 years, I think probably now we really need to look 4 to 5% a year annually for inflation. And that's a I would like to believe that that's a high number. But in my heart it's probably a realistic number, at least for the near term. Meaning the next two, three years. To me, that's the near term in this game of financial things. When you consider inflation, when you consider returns on your investments, 2 to 3 years is more of a near term to me. I think 4 to 5% is probably a likely number because inflation is here. It's not going to go away. And the last two and a half years have demonstrated unfortunately, very, very well how big of an impact inflation can have on my clients and consumers in general.

Producer:
Yeah, it really, really can. And we're feeling the sting of it now in ways that, you know, the American public has not felt it in in decades. And it really has brought home the need for everyone to really consider inflation in their future plans and planning for higher rates of inflation when they do happen, because we have that sort of steady, you know, rate of inflation for over a decade thereafter, the financial crisis. And we were really sort of lulled into that false sense of security. You know, so that's what we got to we got to plan for the at one time unthinkable. Well, if you folks go to TheBuckeyeAdvisor.com not only would we appreciate that you could start your plan to plan for whatever happens in your future. That's once again TheBuckeyeAdvisor.com or you can call Woody bowling at (937) 974-6201. That does it for the first half of the show. But stick around. We've got a lot more to come, including more questions from our listeners. And of course, the dad Joke of the week right after this.

Producer:
You're listening to the Buckeye advisor to schedule your free No obligation consultation with Woody. Visit TheBuckeyeAdvisor.com.

Producer:
Welcome back. This is the Buckeye advisor. I'm Matt McClure here alongside Woody Bowling, who, as you might guess, is the Buckeye advisor himself. And he is here to educate all of us today about all things financial and planning for the future. I am learning a lot already in the first half of the show. I am geared up for the second half. I know that you are as well as a listener. You can go to TheBuckeyeAdvisor.com. That is the Buckeye advisor with an or.com or call Woody at (937) 974-6201.

Producer:
The marriage counselor loves them keeps him in business It's the dad joke of the week.

Producer:
All right Woody lay it on us It is that time for the dad joke.

Woody Bowling:
It certainly is. And I don't want to disappoint Matt. Why was the ghost so tired?

Producer:
Oh, I don't know. Why. Why was the ghost so tired?

Woody Bowling:
Because he worked the graveyard shift. Ha.

Producer:
I mean, he's up all night, so. There you go.

Woody Bowling:
Exactly. It's a tough life being a ghost, but somebody's got to do it.

Producer:
That's. That's right. Just hope he was friendly like Casper. But anyway, great, great dad joke, of course, as always. And whether you chuckle or roll your eyes, we appreciate each and every one of our listeners and we hope that at least brought a smile to your face as we hope each and every week. Well, continuing on here, Woody, we've got some some questions from our listeners that we've been answering, answered a couple before the break, and we've got a couple of more here as we start off the second half of the show. So we've talked about income a lot in our first couple of questions. You know, where's the income going to come from? How much does it need to increase each year to keep pace with inflation? Well, this one is kind of along those same lines, and it has to deal with Social Security. Right. So will Social Security keep up with the cost of living? That's a question from another one of our listeners here. So what is the answer to that? Woody? Yeah, that's.

Woody Bowling:
Another really good question. I mean, I've got to do a shout out to the listeners. These guys, these folks are paying attention and they've got valid concerns. And, you know, we like to believe we have valid answers for those concerns. Social Security, Yes, there is a cost of living adjustment annually, usually by around the first part of October is when they know how much it's going to be for the following calendar year. So after a couple of years of really big adjustments, the problem is that the core indicators they're looking at don't always give everyone a true snapshot. I mean, it's nice to get for our Social Security recipients in America. The last couple of years, they've gotten a total of about, I think 14.5, 15% total pay increase, which is fantastic. However, a lot of the things that they consume or they use or they buy have gone up 20, 30%. It's nice to know that Social Security is going to go up. There is the cost of living allowance built into it. However, that's not always keeping up with the true, true toll that inflation throughout the economy can take on a fixed income. So, you know, one of the things we do here, Matt, with our clients is the fixed indexed annuity. People say, Well, what's that about? Well, it's an indexed annuity. I say it's fixed because it's guaranteed. It's got some guarantees in it and a guarantee like, Hey, how about you take part of your retirement savings and you put it in something where you're guaranteed not to lose principal, but you also have the opportunity when the index that your annuity follows over that 12 month period or 24 month interest crediting period, if that index does well, you have an opportunity to make five, six, eight.

Woody Bowling:
I've got clients that in 2018, 2019, 2020, they made 1,011% returns on their fixed indexed annuity. And guess what? Their money was not invested in the market at all. It follows an index. They had no principal threat at all. And last year, when the market was down in 2022 and the first part of this year, your principal is protected. So a fixed indexed annuity cannot lose money, makes money when your index does well and it's like a stair step effect. We like to draw that out sometimes for people. When I'm discussing annuities, you know, you go for that period where you're flat and if the market at the end of that period is if the index goes up, then you get interest credited and if the market goes down, you lose nothing, you remain flat. That's a win win combination. That's not appropriate for all of your retirement money, depending on your age and depending on your investment risk. Tolerance and all those things that go into the equation.

Woody Bowling:
It's a very appropriate place for a percentage of retirement assets. And people I've been meeting with over the last few weeks more and more common. How much income can I get? They want to know. They want some certainty. I'm going to start at at this age. I'm going to start at at that age. And then what I'm doing, Matt, is I'm going to compare what different insurance companies that are available to me and there's a bunch and they're all very highly rated companies. They do very well financially and they're all beating each other up bare knuckle style, UFC style. These insurance companies are in the room, they're fighting for the consumer, and that's good. As a consumer, when you're working with an independent advisor like me who has access to multiple companies, I'm not beholden to one company at all. And guess how much the fee on most of the annuities is? It's zero in many cases, but worst case, let's say it's a 1% annual fee. But you get all these guarantees and potential guaranteed income for life down the road with also the potential to grow your money safely while you're getting your income later at a very high rate. So there's lots of good things about indexed annuities. They're not your dad's annuity, they're not your grandfather's annuity. It's a whole new game.

Producer:
Yeah, it really kind of is. You know, people sort of had this bad taste in their mouths about annuities, about the old style annuities and or about hearing, you know, people badmouthed annuities in general while really referring to just one particular type of annuity and not clarifying that and just really putting a, you know, a bad a bad name out there for all annuities in general, they're not all created equal and they're definitely not what they used to be. And and being an independent fiduciary financial advisor like yourself, Woody, you are not, as you say, beholden to just one company's products. You can actually tailor a plan for someone using a product that is going to be right for them, that may be from Know Company A, B, C, D, E, or F, not just only Company A, and that's the only product that you can you can offer them. It's a wide array and a wide, wide range. And I think that that really ends up being better for folks in the long run.

Woody Bowling:
Competition is great for the consumer. And from my perspective, if you're putting your money with one of these insurance companies that I recommend, I recommend it because, A, I've used them. B, they're highly rated C, they do what they say they're going to do. There's no cost to the client as far as they don't have to pay me a nickel on those annuities. I'm paid by the insurance company and that deal, that's the way it goes. 100% of your money goes to work for you on day one in those annuities. So that's another beautiful thing. And I'm going to add this. If you've got an annuity that's over 6 or 7 years old, we probably need to do an annuity x ray, as we call it. We need to really look at that annuity and I can help you go through it step by step. We can look at fees, we can look at growth, we can look at any caps that you might have on your existing annuity as far as that might be limiting the growth because interest rates have gone up, that's actually created a great opportunity with people that are taking out annuities now because the interest rates are higher, they have higher participation rates and it's a better time to grow your money with a fixed indexed annuity than it was six, seven, eight years ago when interest rates were super low. And also many companies put caps that were very low on the earnings potential of those annuities. Yeah.

Producer:
And if you folks want to explore going there, starting that route, or at least having your questions answered like like our listeners are today, go to TheBuckeyeAdvisor.com that's the Buckeye advisor with an or.com or call Woody at (937) 974-6201. All right Woody one more question from our listeners here. And this one is this When is the best time to make withdrawals from my retirement accounts? When the market goes down, I'm afraid to make matters worse by pulling out money. But when the market goes up, I feel like we're getting in the way of potential gains. It's that it's that old conundrum, you know, should I try and time things just right with market movement? What would you say to that question?

Woody Bowling:
Well, that is a quandary that people run into, especially those that manage their own money. And I've run into a few of those people in the last couple of years. They manage their own accounts. A couple of them have been brutally honest and said when the market went way down, I got emotional. I pulled back and I missed the next increase in the market that was around the corner. I'm going to tell people, our listeners do not attempt to time the market when you're contributing to 401. Ks and your own IRAs and Roth IRAs as you're going keep doing it on a regular basis, don't stop. It's impossible to time the market. I can show you on my phone. The last three weeks, days where you if you would have been sitting in cash where you missed a 1%, a one and a quarter, 1.5% increases in the S&P 500 or the Nasdaq on certain days, You can't do it. You can't plan, but you can't time the market. But what you can do is you can consider after you make those systematic contributions. And then when it comes to decumulation, which we call it, Decumulation, it's time to start distributing those funds on a regular basis, paying yourself that salary, that pension in retirement. That's where you really need to have some things that can create guaranteed income solutions like an indexed annuity. Super duper important that you've got some guarantees. People talk about the market long term. We do think it does well. I manage a lot of money for clients that they don't have in an indexed annuity with me because they want to still have the opportunity to go and grow and they want to keep growing funds because they might want to take more money off of it later.

Woody Bowling:
They want to leave it for a spouse or for their kids or relatives, their beneficiaries. So I do that. I'm a fiduciary licensed advisor. I'm going to help people with great strategies that can help you grow your money in the market, take advantage of certain things. However, people need guaranteed solutions as well. That's what retirement is about. It makes people sleep better at night when you've got guarantees, when you can look each other in the eye, you can look your kids in the eye and say, Mom or dad, are you okay? Yes, I've got this much income guaranteed to come in. And so that's what it's about. You know, retirement is supposed to be about feeling secure. And so many people, unfortunately don't they didn't take advantage of 401. K opportunities. They changed jobs way, way, way, way too often. They never really got involved in that building of a 401. K or 403 B, But there's a lot of people that are listening that have done that. They have taken advantage and they're just waiting to call me for whatever reason. So I just encourage them, give me a call, let's talk. I'm harmless. I promise I don't bite. We're just going to get acquainted. I need to learn about your situation and then I can do some homework and come back, hopefully with some ideas that you might find appealing. And, you know, if we both think that we're a match to work together.

Producer:
Yeah. And it's all about finding a plan that works for you and is tailored for you individually and your situation and you know, he does not bite. I can I can attest to that. I have never once in my over a year working with Mr. Woody Bowling ever seen him bite another human being. So there you go. I mean, I appreciate that.

Woody Bowling:
Vouching for.

Producer:
Me. That's right. I can attest to that, definitely. And I would put my hand on the Bible for it. But you can go folks to TheBuckeyeAdvisor.com that's advisor with an or TheBuckeyeAdvisor.com or call Woody Bowling (937) 974-6201. Get your free consultation today. Well those are some questions there of course from our listeners. Now let's clear up Woody some other things here that I think people might be a little bit confused about. I know that these are some things that you have heard from your work day in and day out regarding Social Security and just some kind of common myths. This is the myth busting part of the show here where, you know, just about everybody I'm sure that you meet with has questions about Social Security. So let's go through some of these and answer these these questions and or bust these myths, these these common misconceptions.

Woody Bowling:
Is this where I put a hard hat on before we start this segment, at least?

Producer:
That's right. And you have to tell everybody, don't try this at home. You know, don't.

Woody Bowling:
Try this at home. Just listen to us, the professionals. We will bust these myths for you.

Producer:
Absolutely. Absolutely. So. Well, so let's clear up some of these now here. What are these common misconceptions about your Social Security benefit? The first one is that everybody's Social Security benefit is the same amount. That one, I would imagine, would be not true, right?

Woody Bowling:
Yeah, that was an easy one. But I don't know. Most people don't know. I don't think they really understand how the calculation is done. We'll keep it simple. Your highest 35 years of earnings in your career. Is what the Social Security is at. That's what they calculate your benefit on. And then depending on when you start it and we're going to talk a little bit more about that age 62 is the earliest unless you go on disability. Age 70 is the latest. And you know what? I've run into more and more people, which I've been very pleased with. They've already got their accounts set up with Social Security so they can get on and check their benefit levels. It's ssa.gov. Gov. Ssa.gov. If you're 40. If you're 50. If you're 60, whatever. Get on there. Set up your account and you can keep track of what your benefits and it'll tell you how much you can get at each age. It'll tell you your full retirement age. And that's the same pretty much right now for everybody born after 1960 like us. So. It's not true unless you made the exact same amount of money as your neighbor across the street for 35 years in your highest earnings levels, then your Social Security might be the same.

Producer:
It could be in a very, very rare instance. But then you probably also have unicorns running up and down your street and pigs are flying and all that stuff. So. Right on. Okay. So a lot of people might think, Woody, that your benefit amount is fixed forever. That one also falls, right?

Woody Bowling:
It is false. And the reason that is false is because the cost of living adjustment that we talked about a little bit ago in the show, that's an annual thing. So your your Social Security is going to go up usually a little bit, very rare when there's no cost of living adjustment. But most of the time you'll see some sort of an adjustment. As we said, the last two years have been very, very big for Social Security recipients because unfortunately we've had very high levels of inflation. But yes, the benefit can go up. It cannot go backwards. That is the good thing that I will make it clear once that benefit is going, they will not take anything out of it other than your Medicare Part B when you're ready to go on Medicare A and B Part A is free. Part B this year is one 6490 coming out of your check before your Social Security gets deposited in your bank account.

Producer:
And another part of that whole misconception, Woody, might also be this next one on our list, which is you're stuck with the benefit that is offered to you. That's not true either. I mean, you can have at least a certain amount of control over how much that benefit is.

Woody Bowling:
Yeah, I mean, there's a couple of variables that I talk to people about. You know, these days I talk to a lot of people that are turning 65. I do have a marketing program where I talk try to get in touch with some of those folks that are turning 65. And a lot of those people are working a little bit longer. And it becomes a question of I want to hold off possibly till my full retirement age. Maybe, maybe not. Maybe I want to work longer. But I also want to examine Medicare plans and look at the health insurance aspect of it, because most companies health insurance plans are not nearly as good as their own private Medicare plan could be. So people just aren't. They have that misconception that they don't understand that. But if you start at 62 or 66, in some months or 70 each year, you wait, you're getting a six, seven, 8% and 8% increase for the most part. So if you So the other factors are your health. You know, do you want to keep working full time? Because how much income are you making? Because part of your Social Security could be taxable. But at the same time, if you're trying to pay off last minute, your house or some other important debt, you know, it may make sense to keep working. Start Social Security, pay some of the taxes on a portion of that Social Security, but get rid of that debt because that's going to help you in the long run. So you bite the bullet on one end, but you're giving yourself some breathing room on the other end so that when you do step away from full time employment, you have less debt to deal with, including hopefully no house payment. That would be a win win.

Producer:
That really would mean we all often talk about how the happiest retirees are those who do not have a mortgage payment or some other type of housing payment that they are having to shell out every month. I mean, pay off the house, increase your happiness. It's pretty much that that simple as far as a concept goes anyway. Yeah. The next one here, Woody, we basically just answered this. You should draw from Social Security as soon as possible. That is not an advisable thing if you can wait because as you say, you give yourself essentially an 8% raise every year for each year that you do. Wait, so that that one is pretty much already answered. But then based on what we talked about a few minutes ago, people might have the impression that your benefit is definitely going to increase every year, but that's actually not the case. You know, the cost of living adjustment is a thing, but it's not necessarily going to give you a raise every year.

Woody Bowling:
Yeah, it's not. It's not guaranteed. It's based upon a certain set of factors of economic factors that they look at as far as measuring components of inflation. And if those if that set of components doesn't come out where there's a need to increase, there is no cost of living increase, as I said a few minutes ago. Yes. Normally you get one. Will it really do the trick? It hasn't really done the trick for a lot of Americans, as evidenced by the very pessimistic attitude that so many people have regarding those economic questions that we ask or the survey ask them earlier in the show. A lot of pessimistic viewpoints still in our country. A lot of people still still are feeling the crunch of inflation, so many different things. And it's a real thing. And even though the politicians say, well, in the Federal Reserve says, well, inflation is coming down, it's it's still painful for a lot of people.

Producer:
It's this week in history.

Producer:
Well, some very interesting and and important things happened this week in our history, Woody. On June 16th, 1884, the first roller coaster in America opened up on Coney Island in Brooklyn, New York. It was created by LaMarcus Thompson. It traveled six miles an hour and it cost a nickel to ride. They've gotten more expensive and a little bit more thrilling as time has gone along.

Woody Bowling:
Six miles per hour. That is stunning. Didn't know that. I'm always surprised by some of these facts that we learn in our This Week in History segment. And you know, as someone who only lives about 25 minutes away from Kings Island, home of some great roller coasters, I'm a big roller coaster fan. So glad that that gentleman had the wherewithal to invent those. And man, we've come a long way.

Producer:
Certainly. Certainly have. And another historic moment on June 16th to talk about what happened in 1903. I'll let you tell us about that one.

Woody Bowling:
Yeah, 1903, the Ford Motor Company was founded by Henry Ford and 11 investors. Top automaker on the Fortune 500 for five years in a row. And they're also a global top five automaker. And there are a lot of people, a lot of jobs that Ford has done. And so many people have worked there for so long and have been proud to call Ford Motor Company their home. And congratulations to them. I love to see American companies do well.

Producer:
Yeah, my my uncle worked for Ford for decades and decades and retired with with a pension from Ford Motor Company. And so there you go. I mean they they have provided a good living for a lot of folks there. On the date of June 17th in 1885, the dismantled Statue of Liberty arrived in New York Harbor. And then, of course, it was assembled on site there it in New York Harbor on what's now known as Liberty Island. It was, of course, a gift of friendship from the people of France to the people of the United States. It arrived in its 350 individual pieces packed into more than 200 boxes. And the following year, US President Grover Cleveland dedicated the statue as an enduring symbol of freedom and democracy. I have walked the steps up, Woody, from the feet of the Statue of Liberty all the way up to the crown. That's a climb. So I can imagine putting that thing together.

Woody Bowling:
Wow. That's what an exciting time. That is an American emblem of freedom. And I'll tell you, Matt, outside of French fries and French toast, that's probably the greatest gift that France has given us.

Producer:
That's right. And I love some French fries and French toast. That's right.

Woody Bowling:
And I think we have time for one more. On June 18th, in 1942, you know him, Sir Paul McCartney was born part of The Beatles, went on to be one of the most successful composers and performers of all time. He's written or co-written a record 32 songs that have topped the billboard Top 100. I did not know that number. Amazing. Happy birthday, Sir Paul McCartney.

Producer:
That's right. Happy birthday to you. Well, that is going to do it for this edition of the show, Woody. But I have learned a lot, not only about the Statue of Liberty and Paul McCartney. Et cetera, but about all things finance and planning for retirement. I know our listeners have as well. So thank you again for all of your insights and we'll talk at you next time, sir.

Woody Bowling:
Matt, thanks for joining us. You, the listener. We couldn't be here without you. Thank you for taking your time, whether on the podcast or joining us on the radio program today. We appreciate you. We appreciate your support. Everyone, we want you to have a blessed week and we look forward to hearing you, hearing from you soon and talking to you again next week.

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 TheBuckeyeAdvisor.com or pick up the phone and call (937) 974-6201. That's (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 multiyear 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.

Sonix is the world’s most advanced automated transcription, translation, and subtitling platform. Fast, accurate, and affordable.

Automatically convert your mp3 files to text (txt file), Microsoft Word (docx file), and SubRip Subtitle (srt file) in minutes.

Sonix has many features that you’d love including automatic transcription software, transcribe multiple languages, automated subtitles, world-class support, and easily transcribe your Zoom meetings. Try Sonix for free today.