Smart Safe Alternatives to Bank CDs

10.27.23: Audio automatically transcribed by Sonix

10.27.23: 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 everyone, and welcome to this week's episode of The Buckeye Advisor radio program and podcast. And I am Woody Bowling. I happen to be The Buckeye Advisor. Or at least that's what some people call me, and I prefer that over some not so nice names. Welcome to the program! We are excited to be here for another episode. The radio program is going to be airing Saturday and Sunday, October 28th and 29th from nine in the morning till ten in the morning. If you're listening live right now on the radio. Thank you so much for joining us. We know your time is valuable. For those of you listening on the podcast, we appreciate you taking your time out of your day or evening whenever you're listening at your leisure. We hope that this show is just as educational, as informational and inspiring. Hopefully as all of our other episodes are, because we think they are. And when I say we, meaning my co-host and producer and sidekick each week, Mister Matt McClure, who actually does this from his home office in Atlanta, Georgia. Welcome, Matt. How was your week?

Producer:
I am doing great, Woody. My week was great and you know, I can't, I can't complain. It's been busy. But like I always say, I'd rather be busy than bored, so we're good.

Woody Bowling:
I agree with you 100%. It's been a great week for Ohio State Buckeye fans, and as The Buckeye Advisor, I'm always pleased to announce it when the Buckeyes win another football game and remain undefeated. Penn State definitely proved to be a worthy foe. Our defense held them in check most of the game and we held on for another great win. So we're still I think we're rated third this week again, so I'm very excited about that. I want to welcome all of our listeners in Dayton, Springboro, Centerville, Beaver Creek, even as far down as Middletown and Monroe and that area. Thank you for listening. I know we've got a great signal coming from our station, 94.5 FM Dayton Conservative talk radio. During the week. The Buckeye Advisor highlights their weekend, or at least our opinion it does. So, Matt, we strive each week to provide valuable insights to our listeners. I don't think we're going to let them down this week, as Halloween is right around the corner and this week's dad jokes, I'm going to give people a little tip off to keep them listening. They're going to get Halloween joke, but not just one. I'm going to throw in a bonus joke because Halloween only comes one time per year. Tell us what's ahead on Joe the show today, Mr.. Matt?

Producer:
Well, yeah, that's that is something to look forward to right there. And that'll start us off in the second half of the show. So you got to stick around for it folks.

Woody Bowling:
That's a teaser I think. What what did you call it. Teaser. Yeah. Whatever it is.

Producer:
Yeah I mean it's you're hooking them in, you know. All right. Um, one thing we do want to do here, before we get kind of into the meat of the show, is just remind our listeners that the Medicare annual enrollment period is well underway right now. It started back on the 15th. It runs through December 7th. And, you know, you could find yourself saving some money if you reevaluate your coverage each and every year. And no, Woody, that's a big part of your business. Every time this time of the year comes around.

Woody Bowling:
It is I've met so many nice people and wonderful people and clients over the last 14 plus years as an independent insurance agent doing Medicare, life insurance and some other things, some safe money strategies that we'll talk about later in the show. But listen, we like to believe savvy retirees and we like to believe if you're listening to this show or podcast episode, that you are very savvy, right? And most people want to feel savvy, I know I do personally as a consumer. Whether you're still working in your 65 or older and you're eligible for Medicare, both parts, and you think you're getting a better deal through your employer coverage, that may not always be 100% true. I've got lots of clients that are still working their past 65. Now they're going to continue to work, but they felt like after we did the numbers for free and that consultation no charge again, because Matt still won't let me charge a consultation fee. We'll stick to it. No charge. We work the numbers and see if you can get better health coverage by doing your own individual Medicare plan, then that group employer plan. Usually those have very high deductibles. Lots of things go along with it. Then the company kicks in and pays a share. Really high max out of pockets most of the time, so you never know. It doesn't cost anything at all to compare your coverage today versus what you might be able to get with a Medicare plan or a Medicare supplement. I do both.

Producer:
Yeah, and there you go, folks. Just go to The Buckeye Advisor dot com. That's The Buckeye Advisor. All one word and or at the end by the way.com. Or you can call Woody at (937) 974-6201. Well on the show today of course we'll have our quote of the week coming up here in just a minute to kind of get us into the meat of the proceedings. Smart, safe alternatives to bank CDs. You know, CD rates have gone up as the fed has raised interest rates. But are there better alternatives to bank CDs? And a lot of cases there could very well be for you in your particular situation. Protect and grow. And we'll talk about how you can do that, protect your wealth and also grow it and give yourself a personal pension. We'll talk about the value of that. We'll have an inflation demonstration with Halloween candy prices on the way up. Oh, area too much.

Woody Bowling:
I bet our listeners are wondering if candy corn is involved.

Producer:
I know seriously that sometimes they can't give that away.

Woody Bowling:
It's a very polarizing topic.

Producer:
Candy corn. I know you either love it or hate it kind of a thing. Well, we'll talk about those prices coming up and we'll have some important reminders. First, though, even before our quote of the week, this time around, Woody, we wanted to go through a little bit about why you in particular? Because I'm just kind of here, you know, keeping the keeping the car in the lane as we drive down the road here. But why you in particular host this show each and every week. You don't just do it for yourself and for, you know, to to hear your own voice on the radio. You do it for the listeners.

Woody Bowling:
Yeah, it's a great point, and I'm so glad that we chose to kick off the segment today with this, because. People do get caught up in the fact, oh, it's just another episode. But ultimately, at the end of the day, I'm very passionate about what I do. And, you know, there are several reasons. Number one, and we say this a lot, we want to educate retirees and pre-write pre-retirees. I'm sorry. By giving them valuable information and insights. And why do we do that? Because I want them to make informed decisions about their financial future. And you know, it's us. Knowledge is power. And you can use that knowledge. And people find that very helpful. They a lot of people are. And I can tell you people that I meet with all the time, they're inundated with things in the mail, with ads that pop up on their phone or in their email spam emails. There's so many areas and TV commercials for Medicare, financial things, you know, pop ups on Instagram or Facebook. And a lot of people are on Facebook. So many people, financial things popping up about safe money, some of the things that I do. Number two, we want to address retirement challenges that retirees and pre-retirees encounter, because we're going to offer some strategies. And those strategies might be a little bit different than what they would here, other places, depending on who they would meet with. For example, I do insurance and I do investments. I'm licensed separately for both of those as as a fiduciary advisor with a series 65 investment license.

Woody Bowling:
I do my investments through Brookstone Capital Management in Chicago. Great company. So we're able to help people strategically with part of their assets that are going to be in investments related to the market. We're going to be able to help manage those with the right risk tolerance based on what they do. On the other side, we can help with Medicare decisions, health insurance, life insurance, very important to have the right coverage there. And then also some safe money strategies that I do through insurance companies. And we'll hit on those a little bit more. The third reason we want to empower smart financial decision making, I'm giving you this knowledge that I have. And we talk about things and strategies. And you know, Matt, the funny thing is I'm sure there's people out there that said, yep, I'm going to call this week or I meant to call two weeks ago, but I got tied up. I'm going to encourage you don't put it off, even if you're not completely ready to do something today or you don't think you are. In all actuality, you may be in a position to make a change that's going to be for your betterment on your path towards retirement. Or if you're already in retirement. There's been time and time again where I'm able to help someone that's already retired, make some moves in their portfolio, move some money around, and we can come up with a higher personal income pension for them.

Woody Bowling:
The fourth thing we want to do, which is big, is we want to promote financial literacy. People like financial freedom. I'm not Dave Ramsey. I'm never going to try to be I'm not going to give you common sense advice about paying off your credit cards. That's got a 30% interest rate on it. That's what he's good at. That's what he does. He also is a big believer in certain mutual funds, and there's probably some sort of relationship going on there. I would just speculate. So I want to help people with financial literacy understand how they can apply it to their own retirement goals. And the last thing is we want to be your trusted guide. I mean, certainly I show up here. We do this every week. Matt, you tag along. You're super awesome at what you do. But the ultimate goal is to talk to some of our listeners and maybe have them tell somebody they know about me. Hey, I heard a guy. And then when my clients become clients, then they say, I've got a guy, right? So there's a distinction there, but we're doing it because we want to help people and provide information. There's no cost in listening. There's no cost in actually meeting with me. The hope is that we can come to an agreement that, based on your overall scenario, that more than likely there's something I can do to help better your financial picture.

Producer:
And, folks, you can get started down the road of a better financial future by going to TheBuckeyeAdvisor.com. That's The Buckeye Advisor with an Or at the end.com. You can also call Woody at (937) 974-6201. All right let's kick things off here in the kind of the meaty portion of the show with our quote of the week.

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

Producer:
And those always anticipated words of wisdom this time around come from William Arthur Ward, who died back in 1994. He was a renowned American writer, teacher, motivational speaker as well. And the quote from William Arthur Ward that we'll share this week is this opportunities are like sunrises. If you wait too long, you miss them. It's kind of like, you know, you snooze, you lose.

Woody Bowling:
Very true. Couldn't have said it any any better than Mr. Ward did in that. And just like I mentioned a minute ago when I was talking about people listening to the show over and over again, I know there's been people that have contacted me said, well, you know, I had a couple people that called me within their probably first 2 or 3 episodes. They listened and they called. And then I have others say, okay, I've been listening to you for six months now. I thought I would call and I've got I know there's other people that are on the fence now. They say, well, I'm not retiring officially for two more years, why should I bother? I'm just going to encourage you step across the fence, make the phone call to me or jump online, get on the website, hit the contact form and I'll call you however you want to do it. But don't wait too long because. When you act now. Just like getting up in time to see that sunrise. And I'm also going to add sunsets. My wife is a big, big fan of capturing sunsets on video or on photographs, and they're spectacular. But by just waiting a few minutes, you miss it. And in this life, we don't always get a lot of times to redo things and to have do overs we'd like to have on the golf course. I might take one mulligan and that's agreed upon by our foursome, but after that you got to play it as it sits and play it just like life. You don't get very many do overs there opportunities. And we like to think this week that the fact that we're still on here, 16, 17 months later, we're still coming at you, we're still here, we're still resilient, offering the words of wisdom like Mr. Ward. So take advantage. Don't hesitate and reach out.

Producer:
That's right. And you can do that at TheBuckeyeAdvisor.com. And we also share a lot of wisdom from not only, you know, others like the author there, William Arthur Ward and motivational speaker. We also share words of wisdom from our own Buckeye advisor himself, Mr. Woody Bowling. And that is where the next part of this show comes in, because we have safe alternatives to bank CDs, smart, safe alternatives to bank CDs, and how to protect and grow your wealth. You know, here's the thing, Woody, because a lot of people really are concerned about the state of the markets right now because we got off to a good start, nice, strong start for the year. But things have been rocky here over the past a little bit. And talk about that concern and why people may be looking for some more safety and checking out things like a bank CD, for example.

Woody Bowling:
Yeah, no doubt. I mean, the S&P 500 has fallen about just about 7.5% depending on air time. Of course, we don't know. Of course, when it goes on the air, 7.5% since its peak in late July. We got out of the gate in 2023 like gangbusters. I mean, the market was on fire. Everything you looked at was going up. And that's reminds me of the technology bubble back in 98 and 99, the buildup in 2005 six, 2005, six and seven. Before in October of oh seven, the market collapsed. Look, people are frustrated, especially if you're a retiree. That depends on your savings and you're drawing off of that savings that's in the market. All of us in the market bonds are still continuing to get hammered with really no positives in sight for the bond market. Worst bond market in history in 2022. So there's a lot going on. We've got a war in Ukraine that we're watching with Russia. We've got the new Israeli Hamas standoff going on on the Gaza Strip in Israel and Palestine. Look, there's a lot of things going on. You got oil prices, you got all these different things, you've got all these policies that are coming down. People are not happy. The overall market is still watching to see if we're going to continue to raise rates a little bit more. We thought a few months ago that they were just about done raising rates, but now it appears there's at least one, maybe two more increases because the Fed's says we're still watching inflation, still a little hot.

Woody Bowling:
And you as a consumer know it's still hot. So if you've gotten that quarterly statement here this month during October, you've noticed that the market has not done as well. And you've lost probably some money. Several thousands perhaps. So, you know, what we try to do is we we want people to. My philosophy as The Buckeye Advisor and as a fiduciary advisor is to make sure people, based on their risk profile, can protect a portion of their retirement. And that's what we believe. Part of it needs to be in a safe money strategy. And we're going to go over a little bit more some of the details on that, and some of it needs to be tactically managed on the money management side under the investment side of my business. So, you know, we want you to know that when you leave your workplace and you're ready to retire and you start what we call the decumulation phase, that's the part where we really shine and we really set ourselves apart from other advisors. They're just going to tell you, keep your money in the market, forget about it. It's going to come back. Well, what if it doesn't come back for two years or three years or four years and you started taking money out the the month that you retire because you thought you were good to go. And that makes a significant impact on your potential portfolio, being able to survive the long run. Because when you retire these days, you need to plan on maybe 20, 30, 35 years.

Woody Bowling:
You just don't know. We don't know. You know, God only knows. We don't. We don't have a crystal ball. So we just you got rising rates on the bank side finally. And I'll tell you this, Matt, we've talked about this before. The banks absolutely hate raising their rates because they're greedy. They want to make money. They hate sharing that wealth with their clients. And the biggest advantage that banks have over insurance companies, where we do safe money strategies is brick and mortar offices. That is the primary advantage because you have your checking and or savings there. They have their people that hopefully most of them are nice people you see and interact with, maybe some not, but they have their personal bankers and their financial people built into the bank. So you walk in, they're going to show you across the hall to the investment person who's going to tell you, let's put all your money in the market and forget about it, because that's their goal, the investment person. But then the personal banker is going to say, hey, take a look. We're offering three and a quarter, four and a quarter now. So they want to make sure they control as much of your money and your wealth as possible. Yet at the end of the day, their reserve requirement, and we'll talk about that in a second, is very minuscule when it's compared to some of the other safe money alternatives that are also very attractive and rate right now as well.

Producer:
Yeah. And, you know, I mean, if you're getting that, you know, three and a quarter, 3.5% from, from the bank on a CD, for example, you know, you look at inflation, you are not keeping up with inflation in the long term. You are losing money that way. So even though that may sound great because, you know, it used to be a fraction of that a couple of years back and rates have gone up so much. It's not all that great when you look at it in the grand scheme of things here, but there are some, some alternatives as we look at those, you know, things like financial reserve requirements, for example, that could be both smarter and safer for our listeners here, Woody.

Woody Bowling:
Yeah, exactly. Yeah. People, most of the public does not know that national federal banks only have to keep about 10 to 12% deposit reserves in their system. The rest of it, when you buy a CD, they're going to if you buy $100,000 CD, the Federal Reserve allows that bank to lend out up to six times that amount towards credit cards, towards car loans, towards mortgages, whatever that bank may be into. They're allowed to lend six times that. And guess what? They charge on the car rate today seven 8%. For people that have good credit scores, what are they charging on credit cards? 24 to 29%. That's because banks want to make money. Your bank does not care about you. They're there to make money. That's just unfortunate. You're a number and that's all they look at. So when you only are. Wire to keep 10 or 12% deposits on hand. And that's why you're seeing some of the banks now put up signs. I know I bank with a couple of different banks. I see signs no more than $1,000 withdrawal cash without prior appointment or prior arrangement. That's a little scary. You've never seen that before until the last few months when that's happened, because we had a couple of banks go down early in the year. Remember that we had 3 or 4 banks, New York, California based institutions that went down because of risky investments. And I'm not saying all banks are doing that type of investments, but when we look in comparison, there's a highly rated insurance companies that I deal with and I deal with several of them. A fixed indexed annuity offers you a safe money tool for part of your retirement. Let me give you an example. If you took $100,000 and put it into this fixed indexed annuity, and let's say there's a five year period of surrender charges you can get after year one, you can get 10% free withdrawals each year.

Woody Bowling:
You have a if you get more than 10%, you would pay a slight penalty on that overage. Let's say we put half of your money and we could get it at 4.5% fixed for the next 12 months, guaranteed. And the rest if the S&P 500. If that went up by nine and one half, 10% and you were able to capture around 9% of that. Would you be happy you did it with no risk towards your principal and you did it with no fees. That is a huge, huge thing when you compare a fixed indexed annuity to a bank CD and what else? The requirement for a reserve, a cash reserve for an insurance company is 100%. Dollar for dollar. Matt. And that's another element when it comes to advisors that work for the banks or the big brokerage houses. They don't ever talk to clients about fixed indexed annuities. They want all the money in the market all the time because they make trails on that. And that's just the way they do it. That mean they're bad people? It's just their philosophy. So when you're dealing with The Buckeye Advisor, it's different ways to do things. As a hybrid advisor, I live in both worlds, and I can help people run through the different scenarios of the investment world and the insurance world, which can provide great, safe money strategies to grow your money and also distribute that money to you in a monthly check or deposit. Coming from that safe money strategy that you cannot outlive because it's guaranteed income for life.

Producer:
And that is why we often say that people are looking these days to get to the guarantees, and there are some that are that are out there. You might think that there are no guarantees in life, but no, there actually are. Well, a lot more to come here on The Buckeye Advisor, including more on bank CDs versus fixed indexed annuities. We'll talk about tax implications, some inflation protection there as well, and much more details about all of that when we return. And not one but two dad jokes of the week. Stay tuned. More of The Buckeye Advisor coming up right after this.

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

Woody Bowling:
It's that time of year again. Medicare's annual enrollment period is here. I'm Woody Bowling, host of The Buckeye Advisor. For over 15 years, I've been helping the people of Ohio understand the complexities of Medicare. I can tell you the 2024 Medicare changes are some of the best I've ever seen. So contact me today at TheBuckeyeAdvisor.com. That's TheBuckeyeAdvisor.com.

Producer:
Welcome back to The Buckeye Advisor. I'm Matt McClure, the co-host and producer of The Buckeye Advisor Show. You're alongside the man, the myth, the legend, The Buckeye Advisor himself, Woody Bowling. You can get in touch with him at TheBuckeyeAdvisor.com. That is The Buckeye Advisor with an O or.com, or call Woody at (937) 974-6201. That's (937) 974-6201.

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

Producer:
And this week, Woody. Okay, so the dad joke is even, you know, calling it the dad joke is is a misnomer because we've got two this week. Two for the price of one on dad jokes. We're running a special.

Woody Bowling:
It is dad jokes plural with an s. Thank you Matt. First one Matt. Why do ghost? What do ghosts wear when their eyesight gets blurry?

Producer:
Oh, what a ghost. I don't know, what do ghosts wear when their eyesight gets blurry?

Woody Bowling:
Spook tickles.

Producer:
Was in the back of my mind. I was thinking maybe like bifocals or something, but.

Woody Bowling:
Like, I like that. That could have been different. All right, we're ready for number two. So if you didn't like number one, we're going to try again. Matt. Where does it ghost go on vacation.

Producer:
Oh I don't know. Well.

Woody Bowling:
Where would a.

Producer:
Ghost go on vacation?

Woody Bowling:
Malibu.

Producer:
There we go. There's a clue. There it is.

Woody Bowling:
Here we got one. All right. If they didn't like that one. Sorry. Come back. We'll try again next week. It will not be Halloween themed, but we hope everyone does have a safe and enjoyable Halloween. And you get lots of trick or treaters.

Producer:
Yes, absolutely. Do always fun for the kiddos and even for the adults who like to dress up. I know we'll do that every now and then too, because we're all kids at heart, right out loud. All right, so we've been talking about bank CDs and safe alternatives, smart, safe alternatives to bank CDs that could give you a better return. That could actually be safer because they have a higher their institution that you get them through, which is an insurance company rather than the bank. The old brick and mortar bank down the street as you do a bank CD, these alternatives come from an insurance company, and they also have financial reserve requirements that are much, much higher. So that's some of what we've been talking about so far. But there are also some tax implications here. What's the difference tax wise between a bank CD and a fixed indexed annuity. Which is that alternative. We've been.

Woody Bowling:
Yeah. Great question. And I'm sure most of our listeners will have no idea that this was possible. But if you take your money that is in a savings or checking account or a CD and it's not qualified or non-qualified in Q, if that money has already been taxed, it's not in an IRA or a 401 K. If you, you know, when you have that money in a CD at the end of the year, you're going to get a 1099 and you're going to have to pay taxes on that. It's going to be included in your income. The one aspect to think about is for that same money. If you do, let's say you do a five year annuity like the one I talked about before the break. Five years of surrender charges is done. You can get the 10% of it each year after year. Number one, your premium, your principal is protected. And you also have the opportunity to get market like growth based on an index. Been doing those for 12, 14 years now and have had fantastic results for clients. When the market's going up and when the market's not going up they don't lose. That's a good thing. If you take your money in that same CD and put it into an annuity, that annuity is tax deferred, meaning as long as you keep that money in that annuity, you don't pay taxes on the interest.

Woody Bowling:
It keeps adding and building to the accumulation value of that annuity. So you get a statement each year. If you got 2000 or 5000 in interest, whatever the number is, it gets added on to your starting amount. That becomes your new accumulation value. Slash death benefit. By the way, those are going to go directly to your beneficiaries upon death. They will bypass probate which is important. We want our listeners to know that because, you know, estate planning is very important. And if you don't have a trust, that's something to think about. I can help you get set up with the right trust, working with numerous attorneys that can help it and get it done for about half the cost of walking into a local attorney's office and telling them you want to trust. Number one, we want the trust to be right. You get the financial powers of attorney, the durable medical powers of attorney, all included along with that trust. And I'll include those at my cost. So look, CDS, annuities, the annuity is going to give you some extra benefits, like the tax deferral. That is important to many people because, hey, the less taxes you pay, the better for most people, right?

Producer:
Yeah, there we go. That's less taxes. It's pretty. It's pretty inviting to to just about anybody who might be within earshot of the show right now. And you know, we talked about this briefly. Here would be another reason to sort of be cautious with those bank CDs, those bank failures that we experienced earlier in the year of 2023. And you mentioned him here briefly, but we can go into just a little bit more detail. Silicon Valley Bank that failed on March 10th. It was the 16th largest bank in the US at the time of its failure, signature Bank. It was a New York based full service commercial bank. It failed on March 10th as well with the sudden collapse of Silicon Valley Bank because, you know, consumers really just got scared of that collapse and withdrew more than $10 billion in deposits. And then, you know, some some bailouts that were happening as well. Back in March, 11 of the biggest banks in the country announcing a $30 billion bailout package for First Republic Bank in an effort to keep that bank from being the third to fail in less than a week. I mean, it is it was a scary, scary time, a scary week that led to a lot of scary months for a lot of people. Just because you've always had this image in your mind of, I'm going to put my money in the bank and it is secure, it's not going to get a stolen by some, you know, robber coming in. It's also be, you know, protected because it's got the FDIC coverage. But you know, all as too many people found out that may not be enough for you if your money happens to be in one of these institutions, if it goes under.

Woody Bowling:
Yeah, no doubt about it. I mean, the second and third largest bank failures in history happened this year in 2023. I'm going to venture to say that we don't know what's going on behind the scenes in all these other regional banks that are out there. We don't know who could be next, and it could happen at any time. We just don't know. People didn't know about Silicon Valley or Signature Bank or First Republic Bank. They didn't know that any of that was happening. If they would have known sooner, they certainly would have made the exit sooner with their money. You know? So we want people to be careful, you know, be very careful about keeping more than $250,000 in any bank. At a time. Okay, so if you're in a fortunate position to have that much and then a lot more, spread it around to different institutions. Be very careful about that. Be judicious in your usage and choosing the banks to work with. That's just the strong advice from the banks or from The Buckeye Advisor, not the banks. The banks will tell you to put it all with them. So that's our advice. Be careful, it can happen. I do think it will happen again in the future. We just don't know when. Yeah. You know.

Producer:
Woody, as you say that, you know, nobody has a crystal ball. Nobody knows what's going to happen. But just having that, you know, scare of it happening so recently, something that we haven't seen happen in quite a while is really, really a thing that kind of, you know, opened up a lot of people's eyes. Maybe my money's not as safe as I thought it was. And you want to look at some safer alternatives, folks? The Buckeye Advisor will be happy to show them to you. It's TheBuckeyeAdvisor.com that is the place to go on the web. Or you can go to the old phone line and give, what do you call it, 93797462019379746201. There, another advantage of fixed indexed annuities versus a bank CD could very well be inflation protection. But you know you look at it. As I've kind of touched on this a little earlier, is that whatever the rate might be, that seems great on that bank. Just, you know, by comparison of a couple of years ago seems great now, but is it actually going to keep up with inflation for you if recent history has anything to say about it? No not really.

Woody Bowling:
Yeah, exactly. And banks were paying next to nothing for a decade. And now only in the last year have they finally started raising rates because grudgingly. So they want to keep all the profits to themselves. They don't want to pay it out to their customers. Why should they? We're a mighty bank. Look, inflation protection is one good feature in addition to principal protection with a fixed indexed annuity. And again, we're we're saying with a lot of my clients, not all of them, but with a lot of my clients, when you have a nest egg for retirement, that part of your money should go appropriately into a safer money strategy that can grow at a safer rate. And be in it, be in a setting where it can also grow with an index. And in this case, a lot of the times the index that I use is the S&P 500. And as I mentioned a few minutes ago, if part of your if half of your money is in the fixed account, which is four and one half percent currently for the next 12 months and for the next 12 months, if the S&P 500 gains 10%, would you be happy with making 9% without any risk at all? Most people that are listening would answer yes, especially when it's on the part of their portfolio where they're saying, I want to keep up with inflation, protect my money, and also maybe generate an income for retirement.

Woody Bowling:
We're not talking about the market related portion of your investments that I would be managing on the other side. So there are some great benefits, some combinations of benefits when you can grow, protect income for life, all of those things. A CD can't do that. I mean, a CD is a CD is a CD. It's a fixed rate for a certain amount of fixed amount of time, and that's all you got. So if you need flexibility, you need protection, you need tax deferred growth on your money. That's non-ira money, a lifetime income stream. You know, all of those things. And you know, it might be 30% of your portfolio. It might be 60 or 70% based on your age and based on your risk. A lot of my clients are in the 40 to 50% range on the fixed indexed annuity, versus how much we manage on the other side for. All those things. Everybody's situation is different. And I love the fact that every case, every client situation is unique. It makes this job interesting and fun because no two situations are alike and I treat everybody. Whether you've got 100,000 or 10 million, I'm going to treat you all with equally respect. And also we're going to find a solution that's going to be customized to your situation.

Producer:
That is what it's all about because everybody's situation is different. And just go to TheBuckeyeAdvisor.com. Very easy process there folks. Go to TheBuckeyeAdvisor.com to get started on that road toward more financial freedom for yourself and a better future. You know, you can really map out a plan for your future. That is the one that you envision for yourself. That is why The Buckeye Advisor is here. You can also call him that's Mister Woody Bowling. Just ask for Woody when you call (937) 974-6201. So. And Woody, you know, we talked a lot on on the show so far about fixed indexed annuities. Obviously something that we refer to as your own personal pension, you know, building your own personal pension. And that really is what it, what it is, is it's in retirement. It's kind of that replacement for what used to be, you know, you'd go work at Sears or whatever for 40 years, some big corporation for 40 years, and then you retired and they gave you you had this pension the rest of your life, no matter how long you lived. And those, at least on the employer side, have really gone the way of the dinosaur in for the most part, there's a small fraction of the country that still still gets those.

Producer:
But, you know, we thought it might be kind of an interesting thing to highlight the importance of having a personal pension by taking a look at what happens when companies these days, for those who still have them, try and take them away from their employees. And this very first one is an interesting one, Woody, because the Teamsters union threatened to strike earlier on in the year against trucking giant yellow after the company missed health care and pension payments. That company, Yellow Trucking, actually ended up going, going under, going, going bankrupt. And closing its operations later. Obviously, there were things going on there, as you say. Nobody had any idea that that all of that was happening with Silicon Valley Bank and and First Republic, all those. Well, nobody really knew either that yellow was that close to going under. I remember seeing those trucks all the time up and down the interstates on road trips.

Woody Bowling:
Yeah, they were one of the biggest. I mean, another example, autoworkers, you know, GM, Ford, Chrysler, they used to have lifetime health care. They used to have lifetime pensions. Their health care was the best. I mean, I've dealt with GM retirees 12, 15 years ago. I mean, you couldn't touch their benefits because they were unbelievable. They were the Cadillac of health care plans. Now, not so much. They don't want to do anything. They want people to go get their own Medicare plan from someone like me, and that's it. It's just we don't do it anymore. In France, the garbage was piling up over a pension change to their. The people in Europe were mad because they wanted to raise the retirement age by 1 or 2 years, you know, so Los Las Vegas hospitality workers overwhelmingly voted to call a strike against hotels and casinos very, very recently. That's been going on in the last couple of weeks because they're concerned. And, you know, what companies have done is they've put everything through the 401 K and 403 B plans. They put that responsibility a couple of decades ago onto the employee, and they shifted that responsibility without a lot of education, with sometimes very little, if any, education to the employee about where they should put their money, how to maneuver it, when should they start cutting back a little bit on this and this and this? So employees have gone through these God love them.

Woody Bowling:
They've gone through this whole process for working 20, 30 years, you know, without having that knowledge, without having a really an advisor like myself to say, do it this way or put a little more here, put a little more there. So there's all kinds of things that we can talk about where people are concerned about their benefits being taken away. We want you to get everything you deserve. It's your money. You've worked very hard for it. I can help you understand the results of doing this and doing that, and how it will affect you in retirement and before or after. So all those things are very important, and we want people to think about those things, because it's important for you to do everything you can to protect your money, your assets for you, for your spouse, and for your kids and grandkids and other families that are going to be left behind.

Producer:
Yeah. And one other sort of example. Ample here. Woody, before we kind of move on to a different section of the show and, and and before the show unfortunately comes to an end here in a few minutes, is just wanted to give an example of one particular annuity that is offered by nationwide. Actually, it's the peak ten fixed indexed annuity. It's called and nationwide rated A+ by three of the major agencies there, including Moody's and S&P. And you know, it's a solid offering because there are a lot of advantages potentially for people in their different situations that, you know, could mean that they benefit from this particular product. Talk about this one example. And there are many that we could talk about, but this is one that we wanted to highlight this week.

Woody Bowling:
Yeah, nationwide is a great company. I've been working with them for quite a while. And you know, for people in Ohio, we know they're headquartered in Columbus. So they're right up the road. And I was in there a couple of years ago when their corporate, uh, working with some of their annuity team, the people that developed this very product. So the nationwide peak ten, if you put $300,000 into it right now, they're offering a 20% bonus on the income side of your equation the moment the money gets set up in the contract. So you start on your income value at $360,000. That's amazing. They're also offering 8% guaranteed simple interest roll up every year that you don't start taking your income. So this is designed and I've got clients that we've done this nationwide peak ten that started their income right away. They got the 20% bonus. And then they were ready to calculate their income. And how much can they get guaranteed. And they turned it on right then. And we've beaten income from many, many other insurance companies out there, hands down with this product and plan. And some of my clients don't want to start income for four or 5 or 10 years. And that's okay too. They're going to keep growing on the income side of their account at 8%. They love that. Nothing wrong with that. Um, they've also got a index that we use. It's the BNP Paribas Global Factor Index. What it does is it tracks global healthcare markets. If that index goes up 10%, they're offering a 335% participation rate.

Woody Bowling:
You would receive 32.5% interest credit, minus a 1% spread. However, is that realistic? Not every year, not every two years. But can it happen? And has it happened with other companies, with other indexes? I've seen 100%. Yes, those kinds of things do happen. If the index doesn't go up. If it goes down, the worst it happens is you get the 8% income credited to your roll up side of your account. So these products are built to grow based on an index. They're built to distribute income based on a factor. When you decide you want to pull it, pull the trigger right away, or 2 or 5 or ten years into the contract, whichever you prefer. And you also, this is a great part for a percentage of your retirement portfolio. The other part we will invest, we will strategize, we will tactically money manage it for a solid long term return. And that money will be kept in most of the time. I use Charles Schwab, which it used to be TD Ameritrade until they merged. So Schwab is my go to custodian that we use most of the time. So. Yeah. Matt, I mean, it's we just want people to understand there's more than one way to skin the proverbial cat when it comes to retirement. We want them to know that you could do things outside of the normal advisory box, because long term people have to do what's best for themselves.

Producer:
They really do. And if you want to do what's best for yourself, go to TheBuckeyeAdvisor.com. Get you on for that. I mean, you really did teed it up very well. The Buckeye Advisor. All one word.com.

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

Producer:
And this is a spooky inflation demonstration this time around. You know, it's that time of year. It's the spooky season, and rising prices could cause a scare for your Halloween budget this year, because the cost of candy really has climbed quite a bit. Woody.

Woody Bowling:
Yeah, I couldn't believe the statistic when I found it. 13% increase for candy prices approximately this year. Matt, how can we afford to buy candy? What about these trick or treaters? I mean, we have to feed these people, right?

Producer:
It's true that, you know, the kids, they got to have their sugar at least one day of the year. It's got to be on Halloween. And yeah, I mean, it's kind of crazy. And the there's a report that comes out annually, it's the Halloween Spending Trends report that showed 73% of Americans say shopping for the holiday will be impacted by economic challenges. So so, you know, nearly three quarters just shy of three quarters of Americans saying that and 34% are going to buy cheaper Halloween candy this year. So instead of like, you know, Skittles or whatever, you'll probably get like, you know, the generic dollar store brand Skittles in your in your.

Woody Bowling:
Well, also trick or treaters are probably going to expect to get maybe one of the little miniature three Musketeers bars instead of two, or maybe two instead of three. And no more letting the kids grab their own handful, because God knows, with a 13% price increase, we need to be savvy about how we use our Halloween candy and distribute it.

Producer:
That's right. And being savvy about money is what this show is all about. You can learn more folks by going to TheBuckeyeAdvisor.com. That's TheBuckeyeAdvisor.com. Well Woody, that does it for this edition of the show. It's come and gone just as fast as it possibly could. But I'm looking forward to next week already. Sir.

Woody Bowling:
Another great episode in the books. Couldn't do it without you. Matt McClure. Thank you for being here. Listeners couldn't do it without you either. Whether you're on the radio today or whether you're on the podcast listening some other time. Thank you for joining us. Tell a friend like us on YouTube, The Buckeye Advisor. Check out our shorts there and come back and join us next week for another great episode of The Buckeye Advisor. God bless and have a great week everyone!

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. 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. With market volatility becoming the norm these days, many retirees are seeking safer options to protect and grow their hard earned money. Woody Bowling, host of The Buckeye Advisor, helps listeners retire better. If you're ready to stop putting off retirement planning, schedule your free consultation now at TheBuckeyeAdvisor.com investment advisory services offered through Brookstone Capital Management LLC, a registered investment advisor. Visit TheBuckeyeAdvisor.com for more information.

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