2.10.23: Audio automatically transcribed by Sonix

2.10.23: 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 to everyone. This is Woody Bowling. I am The Buckeye Advisor and I am super excited to join every one of our listeners again today, February 11th and the weekend of February 11th and 12, 2023, another month flying by. I am so glad that you are listening to our show and podcast. And before I go any further at all, I got to put the brakes on and introduce our co host and all around great guy producer Matt McClure. Matt is live in Atlanta today. Matt, good morning. How are you, sir?

Producer:
I'm doing great this morning, Woody. I hope you are as well doing well.

Woody Bowling:
It's been a busy week. The weather has given us a little glimpse of warmth this week, which has been appreciated. Although it's typical Ohio weather in the winter can be thirties, twenties and then up to 50. So you just never know. You don't like it, give it a day. It's going to change anyway. So you never you never can tell what you're going to get.

Producer:
Yeah, that's kind of the same here too is a couple of really nice days this past week and then the rain and the clouds started moving in and it got cooler and almost to the cold side. So, you know, wait about 5 minutes and it'll change. You're absolutely right. But we're going to hopefully make people feel the warm fuzzies today with a lot of great stuff that we're going to talk about, keeping folks educated about their finances, about the world around them as well. I feel like that's something that's really important that that we bring here on the show is that education and there's plenty of it coming up today here. What we've got to secure Act 2.0 that we talked about last week, we'll sort of do a little bit of a review there, touch on the high points. Then we'll continue our Smart Retirement Plan series as well with smart reviews. Smart rule following smart income, we'll have an inflation demonstration as well. So more Super Bowl costs that we're going to talk about. So really, yeah, when you say it, there's a there's a lot to cover today. There really is. We're not just blowing smoke here. We got a lot of stuff.

Woody Bowling:
That's right. We want to be prepared. We feel like we're bringing a lot of value. We're getting positive feedback each week. People enjoy our banter. They enjoy the education they're getting about various financial and insurance topics and how it all ties together. And that's the exciting thing about being dual licensed as a, you know, on the insurance side, I can help people with Medicare, life insurance, tax free strategies through life insurance for income, tactical money management and wealth management on the other side. So I enjoy what I do. People enjoy the show. We're continuing to build our base and we thank you. Whatever you're doing today, if you're in the car, if you're at home drinking a cup of coffee, you're going to a kids or grandkids sporting event or some kind of other activity. We welcome you to the show. We thank you for listening because we you're the reason we're here and we appreciate that. And so, Matt, without further ado, let's get into this show. I think we've got some great information.

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

Producer:
And our words of wisdom this week come from Will Robinson, an author. Now, this is not the Will Robinson from Lost in Space. What I just had to put that out there. No danger.

Woody Bowling:
Danger clarified.

Producer:
Just had to make sure you knew. But the author, Will Robinson, once said, quote, Financial fitness is not a pipe dream or a state of mind. It is a reality if you're willing to pursue it and embrace it. I love that You've got to you've got to work for it. It doesn't have to be this dream that is unachievable. You really can achieve it.

Woody Bowling:
Yeah, for sure. You know, financial fitness, just like any other, like also physical fitness. Just like getting better on your job and your career. Being a parent, you know, it takes hard work and perseverance. And I think perseverance is the greatest attribute of the human race and the fact that. We can hang in through ups and downs in life. And whether you have faith in God or not, like I do. You know, I think he helps people with perseverance and he helps me. But I. Look, that is a great thing and financial fitness is very important and people need to commit to it. And once you commit to it and if you have a quarterback that's a financial quarterback that can help you get on track, once you get a plan established, you know, that's where I come in. I want to be that third party that helps you push you across the finish line. I'll push you, I'll pull you whatever it takes. And we're going to work together along the way to make it happen.

Producer:
Yeah, which is great. And you don't even have to, you know, with with financial fitness, you don't even have to do any sit ups or push ups or anything like that. I mean, you know, consider that a blessing, at least as far as I'm concerned. Yeah.

Woody Bowling:
You don't even need those six pack of abs. I mean, I don't have them, so. I mean, I don't care.

Producer:
That's right. I got closer to a keg. There you go. Back, you know. But. All right, so as we move along here, a little bit of a market update. We touched on this briefly last week because as of our time of recording last week, it had really just happened with the Federal Reserve approving that corner corner of a percentage point hike in interest rates, 25 basis points. If you prefer to think about it that way and use that terminology. And that really does indicate that they're letting up on these interest rate increases. Although then again, on Friday we had the monthly jobs report come out for January and really everybody's expectations were just blown away. So now investors are kind of thinking, well, is it going to stay that way or they're going to do maybe another quarter of a percent next time around at the Fed? Or are they going to have to go back up and take some stronger measures here because the jobs market is so strong? You know, is are these interest rate increases having an effect strong enough to for the Fed to stop all this?

Woody Bowling:
Yeah, I mean, over 500,000 new jobs added in January. It blew the doors off projections. You can call it a surprise, a pleasant surprise, whatever. The feds in a little bit of a pickle that we have an uber, ultra strong job market, which is great for it is a buyer's market. If you're looking for a job, you have plenty to choose from. And employers are offering more incentives than ever before to try to get people to come to work. So at the same time, the Quarterly the 25 basis point quarter point rate increase, I think that was in line. We talked about that with a market expectation. The market over the next couple of days towards the end of last week did react positively, which is good after a solid January. So I think what we've said before, that the Fed is not too far away from stopping the interest rate increases where they hit what they're terminal rate or very close to their terminal rate's going to be. I think we're probably another 50 basis points or so away from that. And I do think that we'll probably see another quarter point over the next couple of Fed meetings. And then I think they're going to settle down. A lot of people that I have consulted with and follow that are financial analysts believe that to be the case and we could be poised for a solid rebound the rest of the year.

Woody Bowling:
You know, it's just it's an odd market because we have such a robust job market. Typically, the Fed likes to see unemployment go way up so they know that their policies are choking things and slowing them down. And the new buzzword mat is disinflation. So. We're getting that disinflation. It's going down. It's not going down as much as they want. So Jerome Powell chooses his words very carefully because he knows what he says is going to be interpreted 20 different ways by everyone that's listening. So, look, we're going to keep doing things what we do. We do think it's going to be a positive year in the market. So on the money management side that I do as a fiduciary advisor, we do think that the strategies we use of tactical money management are poised to do well this year. We're going to monitor those on an ongoing basis so you don't have to. That's what we do. We take the worries out of that and. You know I do better as your account does better, which is fair. And then on the other side, we're going to still work with everyone that we work with, you know, to protect a portion of those retirement assets. And that's it makes a lot of sense. And we're going to talk about a couple of rules coming up here in just a few minutes that are going to tie right into that. And I Segway.

Producer:
Yeah, absolutely. You would think we plan these things, but sometimes they just happen by accident and you just got to go with it. But yeah, no, it's really a strange environment, as you say, and things. Sometimes it seems like just get stranger by the day. But we want to talk about speaking of of, you know, things going on in the economy and in Washington, something that really is going to have an effect on people's retirement one way or another and their retirement planning, their prep for retirement is this secure Act 2.0 that we went really in depth on it last week just in case our listeners missed that episode, happened to miss that episode. They can actually go back and listen to all of the the detail that we went into last time around. But this time I want to just sort of give you hit the highlights here so that people have an idea of what it means for them and for their retirement. Woody So talk about this law. It's passed late in the congressional session, and by late we mean what was it? I think it was December 29 or something like that.

Woody Bowling:
Really late, right, right before the new Congress was seated.

Producer:
Yeah, It's like you've heard of the 11th hour. That was like the 11th hour and 59 minutes. Exactly. But it passed really, really late in the session. So talk about some of these things that are going to have an effect on retirees. What are the kind of the main points that they need to really be aware of?

Woody Bowling:
Well, over the last few years, we've had some changes from the 2017 Jobs Act and tax cuts that were made back in 2017 when Trump was in office. Those tax cuts will expire at midnight, 1231, 2025 unless there's any changes made by Congress to keep those from sunsetting and then tax rates are going to go up 3% pretty much on average across the board. The tax brackets will go back up. The RMDs required minimum distributions are a topic that many seniors don't really want to deal with because a lot of people are in a fortunate situation where they don't necessarily need to generate income from those retirement savings in that 41k that they rolled over into an IRA. So if you have a traditional IRA, it does require at age 73. Starting this year, age 73 is the new require minimum distribution first timer requirement. So and that will be based on a percentage of your value in your account. Effective 1231 December 31st of the year before. So if you pull something out in 2023, it's going to be based on a percentage of your age. And even people that were receiving prior required minimum distributions. It's always the value calculated on December 31st at the close of business. You can take it sometime during that following year and a lot of people wait till later in the year. But I've got clients that take a monthly distribution, so it's just part of their supplement to their income.

Woody Bowling:
So look, the RMD age went from 72 and one half, 70 and one half to 72 in the Jobs Act from 2017 now to 73. So that's letting people's income, their investments earn interest hopefully, and grow for an extra year, which is good. But they are going to have to start at age 73. The penalty for not pulling the money out properly when you were supposed to. Previously it was 50% of what your distribution was supposed to be. So if you had an 8000 distribution on your retirement savings that you had to pull out and you failed to do so during that year that you were specified to do it, your penalty could be up to 50% in that case or 4000. So that's a big hit that has been lowered to 25%. Which is fair. And you need an adviser to help keep track of that. We do that. That's part of the record keeping and the housekeeping that we do. So And then you it's just something that it's a part of life. And then there's also the conversation of, well, if I've got a traditional IRA, how long should I keep it traditional? Should I always keep it traditional? Should I convert it to a Roth? Those are conversations I'm having with people each week. Does it make sense? Does it not? And we have to look at the tax ramifications.

Woody Bowling:
And I have access to software that can help us calculate up to the dollar on how much we can do in this tax year that will affect and before you jump into the next tax bracket. So if you're going to do a Roth conversion, you might not want to do it all in one chunk. You might want to do it piece by piece over three or four years. We can figure out the exact amount you can take and stay in your same tax bracket without jumping up. So it's part of what we do as part of our services, catch up contributions or changing all these different things. 529 College savings plans. After 15 years, the assets can be rolled over into a Roth IRA for the beneficiary, but it does have a limit of 35 grand, as we talked about last week. Real quickly. And that's och you know, still it's a Roth is a good thing. And if those expenses, if that money wasn't used for the college expenses it was originally intended, you still get some benefit from it by it still being a tax free asset which is a Roth IRA, Those distributions are non taxable and they're tax free and the growth is tax free. So if that is passed to a beneficiary, guess what? They pay no taxes on it. And that's a very solid part of a financial plan that makes sense for many people.

Producer:
Yeah, it absolutely does. And you know, with all these new changes, the bottom line, I think here, Woody, is that people really need that help and that guidance through all of this and just navigating it, you know, everything. And I think personally that they should call The Buckeye Advisor. That's just my that's just my $0.02 on the whole deal. And you can do that, folks, by the way, 9379746201 or you can go online TheBuckeyeAdvisor.com that's Buckeye The Buckeye Advisor and that's advisor with an R dot com and you can sign up for a free consultation there. It's absolutely free of any cost, any obligation. This is Woody Bowling. He's The Buckeye Advisor. He's not trying to sell you something. He's not trying to push some snake oil on you or anything like that. He's just giving you good, solid advice. He's going to get get it get it straight from him. And that's really what it's all about, buddy.

Woody Bowling:
It really is. I mean, that's what we that's what we tell people. And, you know, and this is our 33rd episode. I'm very excited about that. And, you know, we're here to educate, to make sure people understand we're going to keep an eye on the overall landscape that's going on around us in the insurance world, in the tax world, in the investment world, all those things that can affect people's retirement and their ability to generate a good financial plan for retirement or perhaps if they're really close to retirement, they've got that 401. K is a lot of our listeners do. You know, maybe they need some help with that and it's that 41k is the main chunk of their retirement. That's when we sit down and we really explain strategies to protect some of it and keep some smart risk and some smart, safe involved in the overall plan. So that's what we do. It's a lot of fun. And those relationships that that I've established over the last 12, 14 years doing this are very long lasting and very rewarding on both sides.

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

Producer:
Well, you mentioned having fun there, Woody, and something that a lot of people are going to be having fun doing this weekend. I know watching the Super Bowl, if if they're watching it in person, though, who they paid a pretty penny. I mean, these numbers, the numbers don't lie when we're talking about the cost of a Super Bowl ticket.

Woody Bowling:
You, man, when you look at Super Bowl one in 1967, average price around ten bucks and you go to 1986, it still was fairly reasonable. $75. That's reasonable to me. I would do that. Super Bowl 40. 20 years later, in 2006, up to 700. And I think where you know, where we're going from there, how much was it or how much does it look like they're going to be this year starting at Matt Yeah.

Producer:
Get a load of this, folks. Start starting at $5,400. Starting at 5400. I mean, that's just that's just kind of wild. If I you know, back in the day, I mean, even, you know, adjusted for inflation and everything, let's say reasonable price ticket, 75 bucks back in 1986. Right. Even if that were adjusted for inflation, I feel like you could even if you had to save up a little bit, you could do it. You could take the family, you could do wife and the kids and the whole thing and take them to the big game. Now the kids are staying at home. The wife's probably staying at home, too. It could just be you and, you know, 50,000 year closest friends out in Phoenix. You know, because it's just ridiculous.

Woody Bowling:
Yeah, I've never been to one. I think it would be fun. I, I thought about it last year because the Bengals first time since 1989 and I am a huge Bengals fan and regrettably they didn't make it this year but still had a phenomenal season. So look, I would love to go, but man, at those prices I think I'll just sit back and watch it at home with my wife, maybe some family or friends, and let's save that money, do something else with it. That makes more sense than that.

Producer:
Yeah, absolutely. I mean, that is that's some inflation right there. It's a little bit crazy, but yeah, so so we'll we'll keep watching those Super Bowl prices go up and up and up, I'm sure, over the next several years. And then, you know, you have to mortgage your house to be able to afford it after a while. It's kind of insane. All right. So about five, five and one half minutes here left in the first half of the show, Woody. And what we want to do is continue with our Smart Retirement Plan series. As you know, we've been doing this over the past few weeks. Today, we are going to talk about, first off, Smart review. And this one actually comes with a little bit of a bonus quote of the week. And everybody's going to know exactly who said this. I think as soon as I the words leave my mouth, trust but verify. And of course, those words came from the 40th president of the United States, Mr. Ronald Reagan. Back back in the eighties, of course. And what do you talk about when we talk about review and a smart review especially, what do we mean?

Woody Bowling:
We really mean that. Understanding your progress throughout the journey, I think that is the most important thing. We talk a lot about people really needing to get a roadmap to where they want to go. I think a lot of times people have a general idea and they never get around to really defining in a better, more clear way for themselves. Maybe in writing or maybe just in a commitment and a conversation between them and their spouse. Significant other. Look, this is what we need to do. We've got a third party, a financial advisor like myself involved a fiduciary. We're going to put your best interest forward. Look. Track your progress quarterly, semiannually, annually. You know, inflation can throw some big monkey wrenches into a budget which can cause people to withdraw more money than they had planned to. It can also wreak havoc on a plan that people are retiring these last year, year and a half. In this upcoming year. If you're retiring and you're starting to pull money out very quickly to supplement your Social Security. Items across the board are higher in price. So it's going to affect everything and it affects the plan. So you need to have. An idea of where you're going on the journey, how your progress is. That's what we do. We're going to keep track of it and you want to make sure you're doing it the right way. And you got to always be realistic about things. I mean, when people I have had people tell me, look, I don't even open my statement, especially during times when the market's not going well.

Woody Bowling:
Hey, I just quit looking at it. Well, maybe that makes sense for a41k and you're still working and all that. But at the same time, we take the approach here at The Buckeye Advisor that, look, you've got to keep your eyes wide open. You've got to understand where you're going, you're going to get coaching for me. We're going to talk through things about how everything's going. If we need to adjust the plan that we have in place, we can make adjustments in many areas. So, look, you know, you just got to review and make sure that even if you just need another set of eyes on your current situation, there's no charge for me doing that. And we can help you be more cost or fee efficient across the board. In many times we can do that. If we can't, I'll be surprised if we can't give people better performance. All those things rolled into one, you know, then hey, there are times where I'll say, Hey, can't do that. But then again, you know, getting a chance to work with me, that's priceless. Matt So I tell people there's no extra charge for working with me. The bad jokes, the dad jokes and all that comes along with it. But yeah, you need to review things and keep track of them as you go.

Producer:
Yeah, yeah, absolutely do. And I was going to say, yeah, the dad jokes, they come free of charge. No, no obligation there either. But, but if you're around Woody Bowling, chances are he's going to tell you one. But speaking of the dad joke, we're going to actually have a good fresh, brand new dad joke of the week coming up here in just a moment. We'll also continue talking about Smart review in that we will mention exactly how you out there listening to the show today. Can get that free obligation, free and cost free consultation. That's a full financial consultation just for you so that you can decide if you want to work with The Buckeye Advisor, Mr. Woody Bowling himself. Stick around. We've got plenty more to talk about. Plenty more great meat on the bone, free to chew on here in the second half of the show. It's coming up here on The Buckeye Advisor. Stick around. Remember, all of Woody's listeners receive a free financial consultation just for listening to the show. Visit The Buckeye Advisor to learn more and schedule an appointment. Thanks for listening to The Buckeye Advisor and subscribing wherever you listen to podcasts.

Producer:
Are you concerned about market volatility, inflation, rising taxes and how it all could affect your future in retirement? Then tune into The Buckeye Advisor with Woody Bowling to learn how you can reduce the taxes you pay before and during retirement. The Buckeye Advisor Saturdays at 10:00 AM and Sunday mornings at nine right here on 94.5 FM. The answer schedule a free no obligation consultation now at TheBuckeyeAdvisor.com.

Producer:
Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not in any way refer to investment advisory products, rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing insurance company, not guaranteed by any bank or the FDIC.

Producer:
Miss Part of Today show The Buckeye Advisor is available wherever you listen to podcasts and online at TheBuckeyeAdvisor.com.

Producer:
Welcome back. This is The Buckeye Advisor. I'm Matt McClure here alongside Woody Bowling who is The Buckeye Advisor himself. And you can get in touch with Woody by going to TheBuckeyeAdvisor.com that is The Buckeye Advisor with an or com you can also give them a call at 9379746201. The number one more time 9379746201.

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

Producer:
All right, Woody, It's the time that I look forward to each and every week. Lay it on. It's the new dad joke.

Woody Bowling:
Matt, I'm excited to bring another one to our listeners. I know they enjoy them. I know they roll their eyes. Perhaps they swig a shot of Pepto-Bismol afterwards, but hopefully not. They could just chuckle and enjoy and maybe share the joke with someone else. Right. Matt, quick question. How do you follow Will Smith in the snow?

Producer:
I don't know. I just know I don't want him to slap me. That's about the only thing that I know about that situation. How do you follow Will Smith in the snow?

Woody Bowling:
You just follow the Fresh Prince.

Producer:
There we go.

Woody Bowling:
Fresh Prince of Bel Air. Get it? Yeah. Make sure we clarify that reference. I know the listeners are going to get it, but sometimes people need a little reminding.

Producer:
I love it. And once again, folks, the dad joke free of charge. So there you go. Also, what is free of charge? We were just mentioning this before the break, Woody, is that folks can reach out for that no obligation and no cost consultation with you. And, you know, and we say this in the in the context of a smart review, which is part of the smart retirement plan that we've been going through here kind of step by step. And it's a very important step to have someone who is a fiduciary financial advisor come in and take a look at everything and, you know, make sure that that you've got things set up in the in the right way and in in the way that's going to be most beneficial to you, because that's literally what the word fiduciary means, is that you have to act in a capacity that is best for the client. You can't do what's best for you. You have to act on behalf of the client. And I think that's so, so important for people to know and understand.

Woody Bowling:
It really is. And, you know, like my favorite vacations in the Bahamas or in Jamaica, they're all inclusive, right? I love it. I can just go and I don't have to reach for my wallet and I'm going to be taking care of. So similar to that. When people go through a process with me, you know, we're going to sit down and meeting number one. And I can tell people this. I want everybody to relax. You're not going to be a client after meeting number one, I promise you, because it's going to be used for time to get acquainted and for me to learn about your situation. Going to make some notes and we're going to get on paper what you're actually doing with yourself, with your life insurance, with your Medicare. If you're at that age or if you're approaching that age, which a lot of people are that listen and or they may know someone that's dealing with Medicare. So we're going to look at your current statements on your investment accounts, your IRAs, your Roth IRAs. If you have one of those or two of those, whatever the case may be. Also, there's Matt. Over the last 15 years, you know, annuities and we talk about fixed indexed annuities as kind of the Goldilocks just right annuity. It gives you a blending of the upside potential growth from an index, but it also protects you with a floor of zero. So if the market or that index doesn't do well during that 12 month or 24 month looking period, then you're not going to lose anything.

Woody Bowling:
And there's comfort in knowing that, especially the craziness we've seen in the market in the last 14, 15 months. And it reminds us of how the market can be at times. So we're going to look at all those. We're going to if people have an annuity that they've done over the last 5 to 15 years, there's a very, very good chance these days that the insurance companies, they're beating each other up daily and weekly to come out with better features in their annuities, their fixed indexed annuities that will be more user consumer friendly. There's probably something a solution that may offer better terms, better growth opportunities or maybe more guaranteed income in retirement or when they choose to take it. So there's a lot of changes that have been in the market of annuities for the last 5 to 10 years. So I look at older annuities periodically and there are times where it makes complete sense to switch that out into a different, more updated fixed indexed annuity. And sometimes it just makes sense to leave it alone. So it just depends. So, you know, we're going to give people an honest assessment of what they have and I'll explain why it's good, bad or indifferent. And if we recommend a change, we're going to explain why. And that's what we do. And so we want people to really understand the overall situation I can give people. Very, very good information. As a medicare expert, a 14 years on Medicare, how it works.

Woody Bowling:
Medicare supplements Medicare Advantage plans, Part D, the whole alphabet soup of Medicare that confuses people so much. And believe me, it's a confusing topic. If I were not a long time agent who's done it so many times for people, I would be confused by it myself. And it changes each year. So that's part of my ongoing continuing education that I do each year in the industry. And I love that I always feel fresh and good on that. I don't feel like The Fresh Prince, but I feel fresh enough to really help people and it makes it fun because the different things I do affect people in a positive way and I love the look on people's faces when they realize that it's not maybe as complicated as they had hoped, or that they realize that they have someone who is an expert that's going to help them understand it very clearly and then take them through the process. So that's very rewarding. And I encourage people that's all it is, that consultation, that's what it's about. And I know there's people listening today that. What are you waiting on? Reach out. You've been thinking about it. Give me a call. Give me a. Contact me through the website and let's talk. There's no cost. And if you want to do something and it works out well, that we both feel like we're compatible as an advisor client, then we'll do something. And if not, no harm, no foul.

Producer:
Yeah, absolutely right. And I know that we've talked about this a couple of times. What you've had some people call and say, you know, I've been listening to the show for a long time and now I've I just sort of got up the nerve to call and all that. You know, there really is no nerve to be worked up because, I mean, it's such a it's a low pressure situation. There's no obligation there. And it doesn't hurt to to take a look to have that second set of eyes on your finances, whether you have an advisor already or not, have that second opinion. If you're going to the doctor, they say, Oh, you have to have surgery or you're going to lose, lose your leg or whatever the case may be, I would be, okay, well, I'm going to go get myself a second opinion and then that second doctor may confirm that you have to have your leg chopped off or this surgery, or they might say, no, we can go this other route and this might actually be better for you. That's sort of the analogy that I draw in my head. And Woody will not chop your leg off.

Woody Bowling:
I promise I will not. And the only thing I'll add to that and that's a that's a great way to put it, you know, most advisors. In the brokerage world. They want client money in one thing, and that's mutual funds or ETFs and mostly mutual funds. They're going to have ten different ten or 12, 15 different families they use, and that's where all the money is going to be spread. If the market's going downhill quickly, as it did last year, and the client calls in and says, hey, I want to go to cash this much money in cash, the advisor is going to do everything possible to talk them out of doing that. Despite the bond funds that were down 15 to 18 20% last year, the Nasdaq down 33% last year and 2022. So the broker is going to do everything in their power to talk them out of going liquid to cash. On the other hand, I'm going to talk about people up front with people. How much do we want to keep liquid? How much do we want to principle protect? How much do we want to set aside for emergencies, things like that. So we're going to have that conversation up front. Because I am a proponent, I encourage people to have some of their money protected in principle. Some of it we're going to keep liquid and cash that you can get to it. I don't recommend people 100% one way or the other. And I think that sets me apart and makes the experience more enjoyable. And, you know, we're just telling people this is how we do business and not everyone agrees or not, and that's okay. So if you don't agree, that's okay. We'll still work with you on your tactical money management. If you want to have it all in the market and you want to have some risk. We've got low cost ETFs that we use. We've got great strategies with dividend paying stocks, value stocks, growth stocks, so we can mix it up, we can put something together and we can show you the results. So that's give us a try and you may like it.

Producer:
Yeah, absolutely. And if you want to give it a try, The Buckeye Advisor Dotcom is the place to go. That is The Buckeye Advisor with an or or you can call Woody Bowling at 9379746201. All right so what are you moving on now with our smart retirement plan. We just talked, of course about smart review. How about some smart rule following? And I can I can hear the sighs through the radio or through the podcast. Whatever you're listening to is on your phone or your tablet or whatever. I can hear you sighing. But when we talk about rules here, these are more these are kind of like the good kind of rules to follow because they can really help you as you either plan for retirement or are in retirement. And they're actually more guidelines than they are rules when it comes right down to it. So we've got three rules here that could really help create a more solid foundation for retirement. Woody So the first one that we want to tell the listeners about here is the rule of 100. This one, I think, is is easy for folks to grasp. So let's go into the rule of 100 here first.

Woody Bowling:
Well, Matt, I think back in the day you were probably a rule breaker yourself. I kind of take you as I kind of a guy.

Producer:
How could you tell?

Woody Bowling:
But I do think that you've seen the error of your ways and you're trying to walk a straight line. But besides that, for our listeners, the rule of 100, really what that means if you're 70 years old, subtract your age from 100, that gives you 30, right? So by this rule that's been around for several decades, by the rule of 100, you would keep no more than 30% of your assets that you've accumulated for retirement subjected to risk in the stock market. So if you were 60, no more than 40% in the stock market, a lot of advisors have used that rule over the years. Some disregard it completely. Some say it's garbage. You need 100% invested in the market because you're going to live. And if people are living longer, longevity is a concern. And so I'm very flexible on this rule. So for everybody, they all they all have a different appetite for risk. Everybody drives a little different speed on the highway. Some people like to go in that right lane 55, and they're comfortable. They don't want to go 57 or 58. They want to do 55. Some people want to drive 75 in a 55 and they run the risk.

Woody Bowling:
And sometimes you get the reward, which is a speeding ticket. So the rule of 100 very easy to understand. I would tell you this, that is a very similar thing. It's a conversation that I have with my clients, my prospective clients, when we sit down and we find out overall how much money they have to work with, we're going to have that conversation about how much of it do they want to have. And you do need growth you if people are living to their mid eighty's late eighties early nineties all the time so there's a chance you can live to be 95 and you don't want to run out of money so if you back out completely and if you don't have a substantial pension and or Social Security combination, you have to start withdrawing. And if you're not taking some risk to get some growth, you could run out of money and that's not a good thing. So rule 100, we'd like that one and we're going to use a variation of it. So I'm flexible on that. And it's. Going to be a client by client basis on what we're going to do there.

Producer:
Yeah. And speaking of rules that are very flexible and that some people are also like, yeah, I don't know about this one anymore, but it's one that's been around for a while and it really could help people if, like you said, they don't want to run out of money in retirement, which could not, you know, be a good thing under any circumstances. So it's the 4% rule. Talk about that. Give us a little background on it and kind of what it means.

Woody Bowling:
Yeah, I mean, it's been around for quite a while as well. And the 4% rule just, you know, if you retire with. 500,000 in savings. In retirement savings, the rule of 4% rule would be that you would take out no more than 4% during that year. And that would be what would that be? About 20,000, right? So then, depending on how well the market does, then you can adjust for inflation or you can readjust for market conditions. If the market had a really great year or the market had a crappy year, then you might have to make other adjustments that are not so pleasant. So the 4%, a lot of a lot of financial quote unquote experts and I'm using my air quotes right now, people can't see me, but that's what I'm using financial experts and you'll find them. A dime a dozen have now suggested a 3% rule which would drop that 20,000 we just talked about on one half $1,000,000 portfolio to start down to 15,000. So a lot less income because of the volatility in the market and all that. Look, I'm going to tell our listeners this. Part of your money should be probably principle protected for most people. It gives peace of mind and it can also do this other important thing, and that's create income that's guaranteed for a lifetime.

Woody Bowling:
So if our listener lives to 80, 85, 90, 95, that income stream is guaranteed by the insurance company that is issuing that annuity. And I'll tell you, I work with Nationwide, I work with Athene, I work with some of the biggest names in the business, and they're all beating each other up, trying to come up with the better features each week and each month. And I'll tell you some of this, a common one that I see now is some of these annuities out here will allow people to get a five or 5.15% withdrawal guaranteed at around age 60, 64, 65, 66 right in there. So, you know, the three or 4% rules we just talked about, I mean, we're way above that. If you have an insurance company that will let you lock in on a 5% distribution, that's pretty solid. And, you know, it's something that most advisors in the brokerage world are never going to give our clients. They're not going to give their clients access to it because they want their money in the market where they're making those trailers and all that. So it's it's a rule that's flexible as well. But I think we can actually beat it, you know, in some cases for guaranteed income for clients.

Producer:
Yeah. And that's the thing, too. I mean, we say this all the time. No two people have the same retirement situation or same financial situation before retirement. So, you know, why should you think about retirement is can have a one size fits all thing. There is no there is no one size fits all plan for everybody. So that's why learning these rules is important and then learning the exceptions to them is important as well, because they're, as I say, guidelines. They're they're flexible guidelines. Now, the rule of 72 is one of those that is the math is only slightly more complicated for folks, but it is one that that can be very helpful. To give you an idea of how fast your particular investment might grow, right? Yeah.

Woody Bowling:
I mean, it's a the rule 72, I really like this one because a lot of people are like, Hey, I've got 100,000. How long would it take me to double it? That's a fair question. And, and I like the fact that it's a fairly easy calculation as well. It's not something that's algebra or trigonometry or any of that stuff or calculus, which I hated all of the above, but took them necessarily to get that degree at right state. So the rule of 72, let's say you're making 8% on your investments. You divide what your return is into 72, and that will give you the amount of time that it would take to double that. And time is important. So everybody's on a different track as far as retirement. And then once they do retire, everybody's plans are a little different, Their goals are a little different, their lifestyles are a little different. So 8%, it would take nine years to double. So your 100,000 would go to 200,000 if you averaged 8% over that nine year period. So I like that calculation. It's good for people to do quick boom, boom, boom in their heads and, you know, gives them some ideas. But then I'll say this when you throw in distributions that changes the whole equation, meaning you're. Basically taking money out. You're starting to withdraw from those savings. You're taking it into each month or quarterly into supplement your income. So when you throw that in, then that will change that equation a little bit or a lot actually.

Producer:
Yeah, it certainly could. And so those are the rules. I told you folks, we only have three for you. You know, it's not it's not like we're asking you to to follow every single we we have a, you know, a big law book and we're like, here, you got to follow all this. It's easy stuff. And as we said, it's flexible. Right. And one of those things that you actually brought up there, what he was was income having income in retirement. And I think a lot of people, when they think about saving for retirement, they think a couple of things. One is that it's all about having this big nest egg that they have saved for retirement. Right. They've got some big number in their in their head, and that's what they're focused on. But the focus, really and I know that you believe this because we've talked about it, is that they really need to have income in retirement. The second thing is a lot of people are thinking that income is that they're going to have in retirement is going to come from Social Security, which is a big part of this segment that we're going to go through here in the last five or so minutes of the show about Social Security. So those are kind of the two things. I think when people think about retirement, they think about the big nest egg and they think, oh, well, I want I think retirement income. It's going to come from Social Security, Right?

Woody Bowling:
True. And look, I'm going to tell people, I encourage you, no matter what your age is, if you're not into your sixties or, you know, the earliest that you can draw Social Security is age 60 to full retirement age for most folks now is 66 and some change. And then depending on people, when you're born after 1960, like me, then year for retirement age is 67. So and that and that's probably going to change again down the road. So you just don't know how the solvency is going to go of Social Security. You hope it's going to be good, but it. Open an account at six a dot gov. Look at it. Set up a username, a password. Make sure even if in your early fifties, late forties, whatever. Set one up and it'll tell you based on your highest earnings year so far, what your projected Social Security benefits are going to be at various ages. And so that's helpful to know that again, knowledge is important. Knowledge is power. Social Security has been around since 1935 when it was signed into law by President Roosevelt. But look, when it was signed into law, the average life expectancy at that time was about age 60, and they did not plan on it being the primary source of retirement income as it is for a very large segment of our population. So. Social Security is a big deal.

Woody Bowling:
Making decisions properly on when to start it. Another big deal. I can help you understand the best times to start it. Social Security is super important for everyone. And the other thing you said about having a large nest egg that most people don't get to the nest egg size that they really wanted to get to for whatever reason. So I encourage people, don't beat yourself up about it. You can't go backwards. You've got to keep moving forward. So we I, I love being able to help people even if they have a nest egg that's smaller than what they expected. When we run some income calculations on what they're really looking for. And a lot of times we can get to the point where we're getting them the income that they want to get from those investments in in a handful of different strategies that we can use. So I encourage people, Social Security and we've got about ten years before there's a concern about the solvency and will they still be able to pay 100% of the benefits. But I encourage people to believe in the best that it will be around. I would encourage people wait as long as you can. There's also, if you choose to go on Medicare at age 65 and you're still working depending on your income levels. For a lot of people, it makes sense to do a medicare plan instead of their employer group health plan.

Woody Bowling:
So, look, we're going to help people walk through these different scenarios. And I've got software and I can show people the impact of their earnings. We can talk about the impact of converting a traditional IRA to a Roth on a year by year basis, all these different things that are so important, and that's when you're making decisions like that. These are life altering decisions. And when you start Social Security, that's a life altering decision because Matt, our listener, would be locked in at that rate of Social Security. So you can't change it. So unless you want to go back and give it all 100% back and then change your mind, which most people I don't know if I've ever talked to someone that did that. So this is all very important information. We want to be able to generate income for people. And I can tell you through the strategies that I use, we're going to be able to do it in a very effective way. And the cool thing is, if we if it changes down the road, which in many cases it does, or you just need a random withdrawal, we're going to make that happen too. So we're always having a smart plan that's also going to be adjustable for our clients and for our listeners.

Producer:
Yeah, and it's super important to to focus on that income and retirement because there was this an HP Foundation study that said 76% of retirees say that income stability is a top concern for them in retirement. So not only is it something important from a standpoint of what bowling, the fiduciary financial advisor telling you on the radio or on your podcast that it's an important thing. It really bears out in real life. People say, this is what I am concerned about and really need the help and the guidance to get there. And I would encourage you folks, if you have not reached out or if you or have been thinking about it, if you've been listening for a while, reach out to Woody Boling at The Buckeye Advisors that is The Buckeye Advisor with an or dotcom or give him a call at 9379746201. Well, Woody, that is just about all the time we have. As I look at the clock here for this week's show, I have had fun and I've laughed some and I have learned some kind of like I do every week. So I appreciate you as always. And we'll talk again next time.

Woody Bowling:
Yeah, Matt, it's been fun. It's been fast, it's been furious. And hopefully we gave our listeners who are wonderful people to tune in to us each week. Thank you for listening. We hope you learn something. Reach out, let us know you want to chat and we'll be happy to do that. And we hope everybody has a fantastic and blessed the rest of the week. Thanks, Matt.

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 9379746201. That's 9379746201.

Producer:
Investment Advisory Services offer 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.

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