Don’t Think You’ll Ever Retire? You Still Need a Plan!

8.11.23: Audio automatically transcribed by Sonix

8.11.23: 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:
Hello and greetings from Woody Bowling. Welcome to this week's episode of The Buckeye Advisor. I know you are all waiting anxiously. You probably didn't sleep last night or the night before, maybe just a little in anticipation of another exciting educational episode of our show, program and podcast. Welcome aboard. This week, the radio program is airing on Saturday, August 12th, Sunday, August 13th, from 9 a.m. to 12 p.m. Eastern Standard Time. And I am Woody Bowling, The Buckeye Advisor. I am so glad to welcome you back to the show. We think that we have another really good show prepared to run by you, let you listen to, let you enjoy and digest it and hopefully maybe it will actually cause you to take some sort of an action that can help you in your life currently and in the future as you look towards retirement or if you're already in retirement. We hope there's something that we say today that's going to trigger you to maybe call me at (937) 974-6201. Like so many of our listeners have done over the last 13 months here in the Dayton, Springboro, Franklin, Centerville, Fairborn, Inglewood, all these areas, I'm happy to hear from our listeners in all those different places and we appreciate it. Without you, the listener, we actually wouldn't be here. And when I say we, I'm referring, of course, to the dynamic, exciting, intelligent co-host that always mans the airwaves with me each week in the radio show and podcast. He's coming to us live from his place in Atlanta, and I'm referring to the legendary Matt McClure. Welcome to our show.

Producer:
Matt Hi there, Woody Thank you, sir. That's that's quite a welcome this week. Boy, now I got to live up to all that.

Woody Bowling:
No pressure. No pressure at all. I know you don't feel it. You're such a pro with this. And you know, we've been doing this for 13 months, Matt. It's always a lot of fun. Welcome to the show. And we we appreciate you as our co-host and producer and, you know, your input and helping us keep the show on tracks because sometimes I can go a little sideways. I try not to do it often, but there you are to put the bumpers up, just like at the Bowling alley to keep me in the lane. So without further ado, Matt, I think we've got another really good show. We hope so. We know that we're making an impact in the lives of many people that listen. And the fun part is there are people listening that have been doing so probably more than five times, ten times, and they're going to call. They just haven't reached out yet or they're going to contact us on the website at TheBuckeyeAdvisor.com and that's advisor with an or the time just hasn't been right for them yet but we know that we're getting closer and that's the good part about it is I plan on being here for those people.

Producer:
Yeah that is the good part. And you know, I mean, they say it's kind of a cliche when it comes to like, you know, any sort of talk radio, you know, program or anything like that. The old long time listener, first time caller thing. But it's a thing. And so, yeah, people will tend to listen for quite a while before actually sort of taking the taking the leap, taking the plunge. And if that is you out there, folks, we encourage you to do that sooner than later. Take that plunge go to TheBuckeyeAdvisor.com TheBuckeyeAdvisor.com or you can call Woody Bowling at (937) 974-6201. We do have as you said a moment ago, we have just another great show. A lot of great things to talk about some very informative subjects to go over and just just really good stuff here. We've got the biggest expenses for retirees today. We're going to go through the top eight budget items for you in your golden years. And maybe you might be surprised by a couple of the things on that list here. And so that's really going to help you show help show you rather how to prepare, how to really make sure that you ahead of time look and are prepared for those eight things. More people saying that they will never retire according to a recent survey. But you got to have a plan anyway and we'll tell you why and how to do that. And then, of course, Warren Buffett is a guy who knows a thing or two about money and how to make it, especially through investing. He's got a list of things that poor people spend money on and and too much of it. We'll go through that list and then, of course, we'll share a little bit of the Annuity 360 book today on the show as well and tell you how you can get a free copy of that by reaching out to Mr. Woody Bowling. First, though, let's get things kicked off with 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 for today come from the 26th president of the United States, Teddy Roosevelt. He was in the White House from 1901 to 19. Oh nine, he established national parks and monuments, consumer protection measures, all of those great things. And the Panama Canal. All that happened in the Roosevelt years, the first Roosevelt years under Teddy Roosevelt. He said this one time, quote, In any moment of decision, the best thing you can do is the right thing. The worst thing you can do is nothing. Boy, that's great.

Woody Bowling:
Pretty profound from Teddy Roosevelt. And wow, what a resume as president he had. The list of accomplishments is quite prolific. And, you know, to the average listener, they probably didn't know that. I didn't know a couple of those things that we included about his background as president, but an excellent saying, a great piece of advice to follow. You know, and I find, Matt, that a lot of listeners and a lot of people that I've run across over the last few years, it's there's an old saying called paralysis by analysis. There's a lot of people that really, really get caught up in overanalyzing things to the degree that it does not take. And I know I've run into do it yourself investors I've run into people that need an advisor like me who understands insurance investments, how they all tie together to protect you as you're uploading into retirement a few years before. And that retirement red zone that we like to talk about and want to make sure people understand. If you have somebody that's a financial quarterback or a coach to help you glide into those retirement years and I'm talking 5 to 10 years before retirement. So, you know, we don't want to say that our show is limited to people that are within six months of retirement because that couldn't be further from the truth.

Woody Bowling:
I hope a lot of people in their 50s that some of them just changed jobs. They were let go. They decided they wanted for a different opportunity. Some of them started their own business, so they had a 401. K left over that I took over and were managing that 401. K. Some of it may have went into a prince protected environment like we do for a lot of clients. And some of it are or in some cases the entire thing is being managed on the investment advisory side of my business, which we do very well there too. And as a registered investment advisory representative and a licensed agent, I love being able to understand all that and help people fit it and understand it into their life and their lifestyle. Teddy Roosevelt. Very strong background and the paralysis by analysis. That is huge, doing nothing. And I think that fits so well with so many people. They and and you know, as much as I like the Internet and how useful it can be. One of the biggest curses of it is when people do a Google search on a topic and they find thousands and thousands of results. And, you know, people have paid money to come up on the first or second page. Advertisers, it's tough. You know, it's information overload.

Producer:
Yeah. It's like, how do you weed through all of that and find the good stuff? You know, it's having all that information is is great. Having access to it. But then at the same time, it's it can be just like you said, like overload. You know, the I can just, you know, smell the smoke coming from out my ears because there's so much going on. The gears are working overtime in there trying to trying to sift through it all. Yeah it's yeah no doubt.

Woody Bowling:
That's also why you keep a fire extinguisher close by your desk as.

Producer:
Well. This is true. This is very true. Just in case of emergency. That's right. Well, you know, Woody, we saw there was a new report here from AARP about the biggest expenses that retirees experience today. And it's funny because you mentioned a moment ago, you don't don't just limit your self and your business to people who are in retirement or six months from retirement, whatever, because the earlier you start, the better, right? I mean, if you start planning in your, your 20s, 30s, 40s, great. That's awesome. Get yourself set up and you'll be in great shape for retirement. But whenever you get there, chances are there might, you know, there might be some changes here or there in some of these categories as far as exactly what you spend money on. But chances are you're going to be spending money on these things big time. And so the number one thing on this list from AARP for us, I think not a huge surprise, Woody, because we talk about this stuff all the time, but it might be a surprise to some of our listeners, especially those who are just joining us for the first time is health care.

Woody Bowling:
Yeah, no doubt. And I think it's a running joke between people that are in their 50s because AARP, this is where this story came from. And everybody jokes about the fact that when they turn 50, that's when they get their first letters and offers from AARP to join the organization. So it's very cheap. It's like 16 bucks a year. I think if that's if that's still the same. But the funny thing is people join it for discounts. Aarp is actually they're doing more commercials now. They're trying to be more proactive to grow membership. They're portraying themselves as help people with, you know, lifestyle advice and things like that. So health care is a biggie. So, you know, people 50 and above, we joke about being getting older, but at the same time, it is a very important time to look at your overall lifestyle and things that you do from a health perspective, from a savings perspective, from an employment perspective, all those things. It is a time to really kind of circle the wagons and, you know, in your own personal life about where do you want to be in ten, 12, 15, 20 years and are you doing the things to get there? And number one you mentioned is health care. It is a huge challenge for those that are still working. It's a huge challenge because so many employers today don't offer fantastic health plans anymore.

Woody Bowling:
30 years ago, 25 years ago, when I was in the corporate world, that was not the case. Corporate employer paid and provided health coverage was really considered to be the best. Not the case anymore. Everybody's got a high deductible. Most of our listeners can verify that they're that are still working. Most of them come with a very high deductible and then another high out-of-pocket maximum on themselves and or their spouse. So it's a different animal than it used to be in the 80s and even in early 90s. So it's changed there. But as people get older, you're spending money. Once you go on Medicare, you're paying that Medicare premium. If you have a Medicare supplement, you're paying that. Then you're paying. If you have a Medicare Advantage plan, potentially some co-payments, some out of pockets there. But managing Medicare Advantage plans can work very, very well for most people. I do those. And Medicare season is only a couple of months away. It's crazy that it's that close in the near future. The funny thing is, is men don't often, you know, men, it seems like, are healthier overall initially. But, you know, women tend to live a lot longer. So healthy couples that are 65 together today, I mean, they can expect to live many times the man to 83 and the woman to 87, depending on which study you read.

Woody Bowling:
So, look, that's a lot of years to be paying Medicare, which is going to be built into your Social Security check, and that's going to be deducted automatically. Then your other types of insurance that you have to pay, people get. You know, there's a saying that says today your health will never be better than today. And that's true because we don't know what's around the corner. And even though you may still be healthy tomorrow, you're going to be a day closer to to potentially something popping up that you have to deal with. And, you know, you pray that's not the case. But we all know that we're going to eventually age and continue and get sick and and, you know, kick the bucket eventually. So it's unfortunate, but it's life. So health care costs have climbed and climbed. A lot of times they've climbed faster than inflation. We know that inflation itself over the last two years has been a crazy animal out of control that's only just now begun to slow down a little bit. You know, this this survey said that health care costs are going to climb. They project at about 5% annually over the next 30 years. That's mind blowing.

Producer:
That is mind.

Woody Bowling:
Blowing. The years. Oh, my gosh. So and that's and that's ultimately twice the rate of the increase for most other expenses. And that's a scary thing. That's why you want to make sure if you're working you have the best health insurance options available. If you need some help with that, let me know I can help walk you through it. Your company's HR should be able to help walk you through it as well. Um, Medicare wise, I know Medicare supplements and Medicare Advantage plans inside and out. And I will lead people as an independent broker down the path that's going to lead them to having the best coverage. And I'm super excited. I'm already getting sneak previews about some of the Medicare for 2024. Very, very exciting. A lot to talk about coming around the corner starting in October.

Producer:
Yeah. And it will be here. As you said before you know it the annual enrollment period or EAP as we refer to it in the biz. But yeah, if you've got any Medicare questions out there, folks give what do you call 93797462019379746201. You can also go online to TheBuckeyeAdvisor.com. Now number two on this list of the some of the biggest expenses for retirees. Woody kind of falls into that same kind of category having to do with your overall health. But this is fitness and wellness.

Woody Bowling:
It does. And it's it's proven time and time again that as people continue to stay active, whether it's riding a stationary bike, having the right shoes, when you're walking, you know, yoga, all these things, these low impact things like swimming, what another great exercise. It's low impact and people can do it to stay healthy as they age. And if you're on a Medicare plan, most of them include silversneakers. So use that silver sneakers. That's a free gym membership. And the cool thing about it is it's not limited to one gym. People can use their silver sneakers and use it at different workout facilities and you can change it up. You can go to the Y if the Y accepts silver sneakers, which most of them do. Go to the Y. Use the pool. Go somewhere else and do a Zumba class, you know. Do all these different things that you can change it up and get a partner, a workout partner or a friend to walk with. All those things help keep you more fit in, better condition, in better shape, healthier physically and mentally. And more importantly, when you're healthier, you're happier too. So there's a connection between your physical health and your emotional well-being. It's hard to downplay it, and it's super duper important. You know, it's it's worth investing a time. And if you have to invest a little bit of money, if you're not on silver sneakers or you're not on Medicare yet, it's worth 20 bucks a month or 15 bucks a month to be able to be healthier. It's going to help your overall life and it's going to help your whole future moving forward.

Producer:
And it's also fun to stay the YMCA. Sorry, I couldn't couldn't resist.

Woody Bowling:
And to sing that song.

Producer:
It really is. Maybe we'll play that going into the break in a few minutes. That that would be kind of cool. All right. So number three expense. Boy, this is this is not a fun one that anybody enjoys. It's one that we all have to contend with every April 15th or so. And that is the tax man. He's going to come knocking.

Woody Bowling:
Yeah. Boo. Matt, we.

Woody Bowling:
Have to start off with a boo hiss because you had to bring up taxes.

Producer:
It's that four letter word again.

Woody Bowling:
No, I'm not making you the fall guy. I know you're the co-host and producer, so it's part of our program. Tax should be a four letter word, but it's not. There are ways to avoid it before retirement or defer it before retirement. Or sometimes it makes sense depending on your situation. If you're going to convert an IRA or a 401. K from a traditional where everything's not taxed yet and you're going to convert it into a Roth IRA, guess what? We have access to software that can help, you know, based on your prior year's tax returns, exactly how much you should convert before you jump into the next tax bracket. How does that sound? We want people to you know, we know that we can't help you avoid taxes all together because that's not something I can do. I'm not a magician. I'm not David Copperfield. I'm Woody Bowling, The Buckeye Advisor. So I'm going to help you with recommendations. And we're going to try to help you navigate ways to minimize the tax burden overall. There's ways you can do it. If you haven't retired yet and you're still working and you're making a solid income and you're making money in an investment account, things like that, why not consider an annuity? We talk about annuities almost every week.

Woody Bowling:
It's a very important part of what we do for clients of all ages and a non-qualified annuity, which simply after tax dollars, if you put it into an annuity, you are growing it on a tax deferred basis. So if you're in a 20 upper 20s or low 30% tax bracket, why not consider the idea of deferring some of that interest till you retire down the road and then you're going to be paying out a much lower tax bracket, hopefully. So it's just one of the things. But taxes, we can give you advice. We can help you. I have a whole back office that can do very in-depth planning. We can analyze your current investment portfolio, your current IRA. We can give you a breakdown of fees of performance, all those things and all. That's no charge. It's a no charge, no cost consultation. And that's what we try to do. We're trying to bring value to the community and to our listeners, and that's what we want to do. Yeah.

Producer:
And it's absolutely, you know, such a needed thing because people think that, you know, I can fly solo going, you know, when I'm planning for retirement. Sure, no big deal. And then, you know, you get to retirement and you don't want to find don't want to get there and find out, oh, maybe I should have had some help here and I would be in a better situation. That that is not a good feeling. But what is a good feeling is calling The Buckeye Advisor. And once again, you can do that at (937) 974-6201 for that complimentary consultation number four biggest biggest expense rather during retirement Woody is almost gave it away there home maintenance and you know it's a lot of it especially during the pandemic. Boy, I know a lot about home maintenance because I started doing a lot of that kind of DIY stuff during the pandemic. But yeah, mean things can just pop up seemingly out of nowhere when you're a homeowner.

Woody Bowling:
Yeah.

Woody Bowling:
And it's always going to be the case if you own a home and you own it and you own an automobile, you're going to find that each year you're going to be spending money on both because as they get older, they need maintenance and transportation is a couple of notches down the list here. But when you have a home, you know, you have to look at it. Do you have a goal, a target of when you're going to have that mortgage paid off? Because these maintenance things are going to come up along the way. Maybe it's a hot water heater this year. Maybe it's a furnace next year, maybe it's Windows 10 years down the road, maybe it's a roof seven years down the road, we don't know. There's things like.

Woody Bowling:
Decisions you need to make.

Woody Bowling:
Do you want to have somebody mow your lawn for you? Well, if you're making a certain level of income, what does it cost you on an hourly basis? You know, what's your time worth is really what it boils down to in a lot of cases. So for some people, it makes sense to have their lawn mowed by someone that they can find a reasonably priced lawn service, gutter cleaning, window washing, home cleaning, all of that. So you have to think about it. Do you have the A the time to do all that yourself? And you mentioned DIY. Matt I wish I had some skills around the house to do some things, but I don't have a lot of those that my father possesses unfortunately. But home maintenance is a biggie. And then the other thing to look at is down the road, sometimes owning a home, especially larger homes that require maintenance. Of course people build that to have their estate value high in retirement because they want to leave it for their spouse and or their kids and grandkids eventually as part of their estate. But you have to think about, you know, as health issues become more in play down the road at age 80, 85, then you have to look at it and say, hey, you might have to boomerang back around and then move in with your kids in a one story home so you don't have to go up steps or down steps. And so it can be easier for a caregiver and maybe it's a kid grandkid or a combination or maybe some home nursing that pops in a couple of days a week. So lots of things go into this planning and that's why if you try to do it all yourself, it can be very hectic. But when you have somebody that can help you, that understands all these different things, you know, it's part of the equation that I try to help people bring some value to them as a listener and as the client.

Producer:
Absolutely. So and just quickly before the break here, Woody, number five on this list of big expenses during retirement utilities and it doesn't necessarily seem like that would be that huge, but that's a that's a regular expense. And it really, really does add up over time.

Woody Bowling:
It really is. And my personal bill at home has gone up about 35% in the last couple years. And I called him to clarify what the deal was. And and look, it's going to happen every few years. And the good some good news is as you get older, you will have the ability to get help from programs with the utility companies. So, you know, people need to keep those things in mind if they need the help, lower their budget. Just like homestead exemptions on real estate taxes, they can be helpful if people need to exhaust all their options to save as much money as they can. That is.

Producer:
Absolutely true. Save money where you can. That's what we always say. You know, control the things that you can control because there's so much in life we can't. But the things that you can definitely take control of them, well, that'll do it for the first half of The Buckeye Advisor for this week, we've got lots more to come, though, including the rest of this list. We got three more things that we'll go through about what are the biggest expenses in retirement according to the survey. And of course, we'll have the dad joke of the week coming up. That is always a crowd pleaser. And I know that you are. Crowd will be pleased when The Buckeye Advisor comes back. Stick around.

Producer:
Thanks for listening to The Buckeye Advisor. If you like what you're hearing, subscribe to our YouTube channel to watch videos from this program and other recent episodes.

Producer:
Welcome back. This is The Buckeye Advisor. I'm Matt McClure, the co-host, the producer here alongside The Buckeye Advisor himself, Mr. Woody Bowling. You can get in touch with him by calling (937) 974-6201. That's (937) 974-6201. You can also go to the website The Buckeye Advisor and that's advisor with an or yes TheBuckeyeAdvisor.com.

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

Producer:
Well, I know it's my favorite part of the show, Woody, and I'm sure that many of our listeners feel the same. So without any further hesitation, lay it on us.

Woody Bowling:
Well, I don't want to disappoint, although I know sometimes I probably don't quite meet the mark. But Matt, I'm going to bring up an old friend of ours from a movie that everyone loves, Forrest Gump. What is Forrest Gump's computer password?

Producer:
I want to say Jenny, but that's probably not it. But so what is? Forrest Gump's computer password?

Woody Bowling:
Jenny is a good guess, but actually it is one Forrest One.

Woody Bowling:
Yeah, I love.

Producer:
It because you got to have the letters and the numbers in there and it can throw people off. Love that.

Woody Bowling:
That's right.

Woody Bowling:
Love it. Almost. Forrest Gump fans celebrate a good Forrest Gump dad joke with me and thanks for enjoying. Feel free to share. There are no trademark infringements involved that all. And we have a great second half of our show and I'm confident of that and looking forward to it. We're going to continue our list. I think that we're about halfway through or maybe two thirds of the way through. Yeah, a little.

Producer:
Over half way through here. The biggest expenses for retirees today, according to this study by AARP. Just to recap where we are now, we went through these. Number one was health care. Number two, fitness and wellness. Number three, taxes. Who? Everybody's favorite. Number four, home maintenance. Number five, utilities. And now that brings us to number six, which is transportation. And that can be another big one as well here, Woody.

Woody Bowling:
It can't.

Woody Bowling:
Be. And it's a big decision. And I remember over the last few years, there was always some decision making, do I want to buy my car? Do I want to lease my car? If you're like my dad, my dad will buy a car and keep it for a minimum of ten years. He always has bought Buicks for the last 40 years and God love them. They've been great cars. And of course, he hasn't driven a boatload of miles over the years either. He worked close to home the church where he pastors relatively close to home. So a lot of people had to make those decisions. Do you buy your car? Do you lease it? Interest rates are double now where they were a year, year and a half, two years ago. So buying a car is more expensive and the cost of the automobiles themselves has gone up. So you need to look at all those different things. You know, what I personally do is I buy a car that's about three years old that has super low miles. The main part of the depreciation has already been absorbed. So if I want to drive that car for two or 3 or 4 years and keep a decent mile of miles on it, I can sell it and pretty do well and do pretty well on it.

Woody Bowling:
So I've just never been one to hold on to a car longer than typically three years, maybe tops. But you know, when you have two people in a household and you're going to retire, if you don't have the need for two cars, there's no great reason necessarily to keep both cars, although for some people it would feel weird don't have a car anymore. Now we're sharing one car. That's weird and it does sound weird, but at the same time, it may make a world of sense financially because you're not incurring you know, you're not incurring the extra cost in maintenance and gas, all those different things. Because keep in mind, the first few years in retirement, most people are very active. Those first few years, they travel more, they spend more time traveling on the road in their cars, flying, going on vacations. So there's a lot of planning that goes into this, especially the first few years. There are a lot of activities that people don't think about. Okay, well, when I retire, I'm not going to spend that much money. Well, historically, that's not proving true because you're going to spend more those first handful of years in retirement, especially if you have kids farther away and you have to travel more to see family.

Woody Bowling:
And there's bucket list things that you want to do in retirement that you just haven't done. Now you have time to do it. So you just have to be careful. You have to plan right And that's part of The Buckeye Advisor planning process is planning for those things. And do you have the funds set aside? Where are they going to come from? Maybe we want we don't want to pull that money from here, but it makes more sense to pull it from here to do these activities and do these things over the first few years. So that's the fun part about sitting with people and learning about their situation and really setting up a plan that works for them, that's tailored to their unique lifestyle, their income, their amount of retirement savings. All those things go into that plan and then we're going to be able to adjust it on the fly when we need to, because life is occasionally going to throw some curve balls at all of us and we have to be able to adjust as we're moving.

Producer:
Yeah, life happens, so you've got to be able to react to it. And it's funny that, you know, you mentioned a lot there about travel. Of course, transportation and travel go hand in hand. And number seven on this list of big expenses in retirement is travel. Itself, you know, I mean, and that's going to vary depending on where you go. Like obviously going like living here in Atlanta, for example, if if we go to the mountains, it's. You know, maybe on the outside like a two hour drive and we could stay in a in a cabin. And that's not an expensive trip. But if we were to go somewhere else, like if we could get a trip next month coming up to to New York for for a wedding that we're going to and that's going to be a more expensive trip, more miles, more stuff to do, more expensive places to stay, that kind of thing. So it it is a variable. It is.

Woody Bowling:
And travel, I recommend it. It's always good to get away. My vacation is coming up next month in September. Looking forward to getting away for a week. And that's just the way it helps you clear your mind. It helps you refocus and re-energize. You know, people when they retire, they got kids, they got grandkids, all these different things being thrown at them at one time, all the extra free time, if they choose not to any do any kind of a part time job right away, which a lot of people are doing to keep their sanity, to keep themselves busy and to keep their spouse being sane. Right.

Producer:
That's a big part of it, Yes.

Woody Bowling:
Yeah.

Woody Bowling:
Travel. Travel is good for you. And but, you know, and using as many resources as possible to find the best deals, always recommend it. I don't do that, by the way.

Woody Bowling:
Yeah.

Producer:
There you go. Well, and then a number. Number eight, this is a huge one that I think a lot of people might not necessarily think of top of mind. But when you when you when we say it here in a second, you're going to be like, oh, yeah, that'll definitely suck some money out of the budget. And that is the number eight expense during retirement. Kids and grandkids, you got to spoil them.

Woody Bowling:
You do.

Woody Bowling:
And I've seen scenarios over the last few years where some of my clients pay for the higher education, whether it be at a trade school or a college for their grandchild or grandchildren. And everybody's different. And what they're willing to do, if anything, for their grandkids. But they can be a big expense. And a lot of times with their first grandchild, it's been shown that some people overspend on the first one. Then when the next one comes along and the ones after that, maybe they're like, Oh, I shouldn't have spent so much on the first one, but it's already done, so you can't pull it back. But grandkids are awesome. I don't have any yet. Kids are awesome. My twin girls are beautiful, wonderful 27 year olds, kids and grandkids. And what we see today, in the last decade or so, we have seen more kids in their 20s, 30s and even 40s. Switching gears, going through a divorce, going through job loss, many different reasons, but those are the two biggest ones divorce and job loss. Moving back in with their parents who were in their 50s and 60s and 70s. So and it can change things and it can change the dynamic of a family when those things happen because sometimes the kid moves back in and overstays their welcome so it can create a bad family dynamic. So you got to be careful of that. But kids and grandkids can be a big expense in retirement, so you have to be careful.

Producer:
Definitely, definitely do. And you can of course, folks, if you need help in planning for any of these things, we've gone through those eight big expenses. According to this study, the eight biggest during retirement. What people are spending the most on during those years. Right now if you need help planning for all of those different scenarios and I'm sure you probably do chances are go to TheBuckeyeAdvisor.com that is The Buckeye Advisor with an or.com. You can also call Woody Boling at (937) 974-6201. Yes Woody Boling is The Buckeye Advisor himself (937) 974-6201. You know we talk of course a lot about retirement here on the show that's sort of the the main focus of when we talk about financial planning planning for the future. It's with that goal of retirement in mind. But there are a lot of people, according to this other study, this is actually a poll by Axios and Ipsos recently in July. A lot of people aren't really thinking that they're going to be able to retire, ever.

Woody Bowling:
It's a scary thought, isn't it? I think some of this depends on what age people are when they're being asked this question. And they're also being asked this question over two years of super duper high inflation and 2022 being a horrible year for the stock market and people watch their 401. K plans sink like a battleship. You remember the old game Battleship as kids. So some of it's timing, some of it's the age that they're being asked. There's a lot of pessimism. Inflation has come down, but it's still prevalent. So it depends on where you live, what kind of work you do. A lot of people are working from home, but there are many businesses now, even though you got a flexible work schedule, there's many employers now that are starting to say, look, we need you to come back into the.

Woody Bowling:
Offers, whether.

Woody Bowling:
It's for two days a week or five days a week. And there's been a mini rebellion by a lot of workers out there that said, I'm not coming back into the office ever. So they draw a line in the sand and they lose their jobs. Well, be careful where you draw a line in the sand unless you've got something else already lined up to step into. And if you have changed jobs and you've got a 401. K plan or you know, somebody that has let them know the Buckeye adviser can help them transition that 401. K because it's a straight 401. K and the company that services that no matter how big, they don't give you updates other than a quarterly statement. They don't care about your money. They're managing billions of dollars. Why not have a local personal advisor who can help you and meet with you face to face and talk about your goals, set plans up, and then figure out the best ways to strategize that 401. K and transition it into an IRA, either a traditional or Roth or a little bit of both. That's what people need. They need personal advice. They need help. I understand all those things as a hybrid financial advisor that understands so many things and how they can work to help you and protect you.

Woody Bowling:
That's what we're going to do. So when people say, I don't think I'll ever retire, that's sad for me because I'm in the financial services industry and the insurance. But I can assure you on the insurance side, there's a lot of great Medicare plans that can help protect you and minimize those out-of-pocket health care costs. But I can tell you, you know, people have to take their own responsibility, Matt, for saving money. If you work for a company for 20 years and you didn't participate in the 401. K or the 403 B, there's no one's fault but you to blame. And, you know, that's sometimes people have to understand that's a tough pill to swallow. But when people make choices, including myself, it's going to impact you in the future. You have to take responsibility for the decisions you made. And I've met with people that said I didn't start in the 401 K until three years ago, but they could have done it 15 years ago. And it's sad that they felt like they couldn't live properly with a few dollars a week difference in their paycheck that they could have put into the 401. K that the employer would have matched. So it's tough to hear that.

Producer:
Yeah, it really is. I mean, is it worth, you know, what's going to be better off for you in the long run? Getting a couple extra cups of Starbucks coffee a week or, you know, putting that money in an investment account for your retirement years? I mean, that is going to pay you dividends, you know, for many, many years to come. And here's the thing. Whether you plan to retire or not, and we here at The Buckeye Advisor hope that you do because after working so long, you will deserve it at that point. Definitely. It's important to still have a plan. And one of the reasons here, Woody, that we would say you kind of touched on this a moment ago is health reasons mean. You know, you may be feeling great right now, but that's not necessarily always going to be the case.

Woody Bowling:
Yeah, no doubt about it. I mean, I've seen it with clients. I've seen it with my own parents, I've seen it with aunts and uncles and things like that. So, you know, one day everything feels great and then we don't know what tomorrow holds. And God never promises us that tomorrow is going to be the same as today. And, you know, I've seen people that are never been in the hospital their entire adult life, have a heart attack, have a stroke. You know, you're in a car accident. So many different things can happen and life inevitably is changed forever by whatever event that took place. So.

Woody Bowling:
I'm not trying to be a.

Woody Bowling:
Doomsdayer here, but I'm just saying proper planning. Do it now. Don't delay it. What you feel today at age 50 or 55 or even at age 75, You may not feel that same way tomorrow. Your health could change dramatically in a heartbeat. And so we want people to be planning properly, having things lined up in a way that it's going to go seamlessly to their beneficiaries. And if you do have health issues, even though you think that part time job, you might be able to do it to age 85, you might only be able to do it to age 72. You just don't know. And if that's the case, how does that impact you in your retirement? So that's where I want to come in and help people. My heart is helping people. You know, whether you've got $100,000 or whether you've got 10 million, that's okay. I'm going to treat everybody with the same level of respect and involvement. And everybody each dollar that's saved for their retirement is just as important to me.

Producer:
That is absolutely true. I can attest to it, folks. And you can go to TheBuckeyeAdvisor.com to reach out and just explore working with Woody Boling. And then another reason Woody is and we're going to share a little bit of of a book here called Annuity 360 as well. But this is, you know, saving on taxes now. And later, another reason that you need a plan in place. Talk about that and sort of tee up this this chapter of the book, if you will.

Woody Bowling:
Yeah, we talked in the first part of the show about taxes, the first half taxes. We want to do everything we can to minimize those. We can never evade taxes or avoid taxes altogether. Wish we could, but that's just not possible. So my role as an advisor is help people figure out ways to minimize their tax bite on their estate, on their current earnings, on their savings and investments. So annuities we have a book called Annuity 360. It was written by a fellow advisor in Atlanta, Georgia, Mr. Ford, Stokes, a great guy, one of my colleagues that does his own radio show and podcasts like me. So Ford wrote this book. It's called Annuity 360. It's not very long. It's very, very easy to read and very easy to understand. He also took the time to explain all these different advantages of fixed indexed annuities, and the chapters are interesting, easy to understand, and it's a quick read and people that I've sent this book to really enjoy it and they tell me they really found a lot of benefit from reading it. So Ford also has set it up as an audio book, and that's what we're going to tee up here in just a minute. I believe that an audio chapter on annuities and I believe that's on creating a personal pension using an annuity, right? That is.

Producer:
Absolutely right. It is Chapter nine from the book Annuity 360. Here it is. We'll we'll talk about it on the other side.

Woody Bowling:
Chapter nine.

Ford Stokes:
You can create your own personal pension. Big idea Using an annuity to create a personal pension helps you create a lifetime income stream, but it also helps you leave a legacy for your beneficiaries. All annuities can create annuity income to supplement the income you need before or during retirement. Those who are approaching retirement are afraid that they will run out of money. But an annuity can help make sure you have income you can never outlive. An annuity can be a great investment for your portfolio, but encourage you to be careful that you don't overpay for your annuity. When you put your money into an annuity, the annuity company will pay you your money back at a date. You specify you don't want an annuity company to charge you too much to simply pay your money back to you. I'm confident that leaving a remarkable family legacy is important to you. You likely want to have money left over when you pass away to leave your beneficiaries. The goal of a personal pension is to generate lifetime income with no risk that grows your money and allows penalty free withdrawals. An annuity can create a lifetime income with market like gains and no market risk, while also allowing you to build enough wealth to leave for your beneficiaries when you pass away. Don't give the annuity company fees for doing nothing. We prefer fixed indexed annuities for our clients that do not have an income rider fee. But you can still create a personal pension without an income rider on your annuity.

Ford Stokes:
If you get an annuity with an income rider, but don't utilize the features of that income rider, then you are not getting what you paid for. You are literally just paying the annuity company 1 to 2% each year. You defer annuity using your annuity without receiving a single benefit for that annual fee. This income rider fee will also draw down your account value or principal, depending on how that index is performing. The growth on your entire account value could be significantly and negatively impacted. Some accumulation focused annuities are built to deliver increasing payments. Without an income rider, you should consider the features your income rider is providing you before deciding to purchase it. As an add on. Make sure you utilize the features you are paying for more ways to get the most out of your annuity. The longer you wait to turn on the annuity, the more you'll receive an annual payments. This is because your annuity will spend a longer time in the accumulation phase, meaning it will spend more time building up your account value. Your annual payments will grow as your account value grows. Believe it or not, you can generate your own personal pension by distributing no more than 5% a year with penalty free withdrawals from your accumulation based annuity policy. Many accumulation annuities are set up to be RMD friendly so you won't suffer a penalty when you have to take your RMD. It would be silly for you to be penalized for something you are required to do. Annuity companies take this into account by creating products that make taking your RMDs easier.

Ford Stokes:
Inspect what you expect with any annuity. Don't just go with what the annuity agent or advisor tells you. Read it for yourself Specifically, you should read the annuity illustration guaranteed and non-guaranteed tables included within the annuity illustration. Also, please remember that an annuity policy is a contract between you and the annuity company. So caveat emptor or buyer beware applies here. Be aware of the annuity you are buying and choose an annuity that works best for you that will help you build a successful retirement and they'll offer you peace of mind. Whether you choose to generate income through penalty free withdrawals or invest annually in an income rider know the consequences of both. This is a decision you will make at the beginning of the investment process. One poor decision here can cost you 1 to 1.5% of annual growth over a 30 year retirement. This could come out to be a significant loss. Educate yourself on your options and the specifics of each option you are considering. Making the right decision up front will save you a lot of frustration in the long run. Also, please remember that if you withdraw too much annually, say 10%, you will run out of money in 10 to 12 years. Make sure that you are working with an advisor who can help you choose the appropriate withdrawal amount so that your money lasts for your entire lifetime. As discussed above, we recommend no more than 5% be withdrawn each year from your account.

Producer:
And that was chapter nine of the book Annuity 360 read by the author himself, Mr. Ford Stokes, who is an MBA. He's also a guy who is an advisor and and has his own radio show and podcast. He's an author of that book, and we'll be glad to send you a copy of it by going to The Buckeye Advisor. Just go to TheBuckeyeAdvisor.com. That's the website. You can request it there or by giving Woody a call. (937) 974-6201. A lot of great info there. Well Woody just about you know getting toward the end of the show but we wanted to go through these last couple of reasons that you need a plan. And whether or not you plan to retire, you might change your mind. That's the next one. You could you could very well change your mind. So you need to be prepared.

Woody Bowling:
Well, what's the old saying?

Woody Bowling:
That men have the prerogative to change your mind? Oh, no, I'm wrong. It's actually women that have the prerogative to change their mind. But I've always made a joke about that that I could. What we understand in life, it's not static. It's always not constant. Jobs change. Jobs go away. Retirement investments can go down in value. They that fact can change people's retirement plans by two, three, four years. Having somebody partner with you like myself.

Woody Bowling:
Can be a.

Woody Bowling:
Valuable way to be able to cushion yourself and to have that other party. Giving you the proper advice on how to get through some of the rough spots that you might. Encounter before retirement and then even after retirement to have somebody to tell you and reassure. You along the way that you can get where you're going and that will be there as a constant resource. That's what I do for people 14 plus years. I'm a fiduciary advisor, licensed agent as well. You know, I can mix it all up, shake it up and come up with a great plan for my clients. And that's what people need. It's more and more valuable to have an advisor that understands all of it and how it works together rather than just one aspect, like your investments. If I understand the the entire picture, I can give people much better advice and much better help. And that's what I love doing. And I also love doing this show with you, Mr. Matt McClure It's been another fast show. I know it's only been two minutes, but I think we're almost out of time, but it's been a pleasure.

Producer:
I know a two minutes or an hour, it feels the same during The Buckeye Advisor Show because we have a lot of fun doing it and it seems to go by faster and faster each week. We'll, of course, have a lot more great information for you next week out there, folks. Remember to go to TheBuckeyeAdvisor.com to learn more about anything that we talked about. Woody, thank you so much for your time today, sir, and we'll talk to you again next time around.

Woody Bowling:
Matt, thanks for joining us. We also want you to go to our YouTube channel, The Buckeye Advisor with an LR. Check out our YouTube highlights of this show and others. We hope everybody has a wonderfully blessed week and we'll see you back 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 multi year guaranteed rate annuities, are not designed for short term investments and may be subject to restrictions, fees and surrender charges as described in the annuity. Contract guarantees are backed by the financial strength and claims paying ability of the issuer.

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 world-class support, automated translation, powerful integrations and APIs, share transcripts, and easily transcribe your Zoom meetings. Try Sonix for free today.