[00:00:00] Speaker A: 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.
[00:00:17] Speaker B: You're tuned into the Retirement Planning Pipeline, the show that helps you take control of your financial Future. Whether you're 5 to 10 years from retirement or just getting started. We've got the strategies, tools and experience to help make the most of your nest. Eg.
Retirement planning specialist David Pipes is a trusted voice in retirement planning, helping Americans navigate 401k rollovers, income planning, tax strategies and everything in between.
Now let's dive into today's show and start paving the way to your smooth retirement. Alongside retirement specialist David Pipes, here's your host, Jim Tarabakia.
[00:00:51] Speaker C: Hi everybody. Welcome to this week's edition, a brand new episode of the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice and real world financial strategies to help you retire confidently and comfortably. Thank you for making our show part of your weekend. I'm your host Jim Jarab alongside retirement planning specialist David Pipes. Dates will be along in just a moment. Keep more of what you've built, wealth preservation habits, smarter tax planning and the latest Social Security forecast. Coming up on today's show, five habits of lasting wealth plus Roth conversions and withdrawal coordination along with Social Security is projected 2027 boost. That's all on the way. But first, before we get the show started, I want to encourage our listeners, as we always do, to go ahead and schedule that 100% complimentary consultation with retirement planning specialist David Pipes today. It's a free offering just for listening to this show or if you're catching us on YouTube. Again, free offering just for watching us watching our videos on YouTube. And again, we really do appreciate that. We love meeting our listeners. So get that review done. Again. It could be for your family or for your business and there's absolutely no obligation. Visit retirementplanningpipeline.com to learn more. All right, David, welcome in. Let's kick off the show with this. Don't waste your low tax years in retirement now. Thoughtful planning today may help manage tomorrow's tax bill. Retirement can create a temporary window where your taxable income is lower than it was during your working years and potentially lower than it will be later. So maybe that paycheck has stopped, but Social Security hasn't begun. A little bit of a tough, tough situation there. Or perhaps you've retired but haven't reached the age where required minimum distributions actually begin. Tax expert Ed Slott told Morningstar that retirees shouldn't waste those potentially lower tax years. And that doesn't mean creating taxes unnecessarily. It means looking beyond this year's return and considering how today's decisions could affect taxes throughout retirement. So, David, when you sit down with someone who's recently retired or someone who's approaching retirement and you see that this may have a temporary period of lower taxable income, how do you determine whether they're actually in a tax planning window and what opportunity should they be looking at before that window closes?
[00:03:01] Speaker D: Yeah, first of all, good morning, everyone. Another Sunday. Awesome to be here. We've got a lot of good stuff today, but I Jim, I think this is one of the best episodes. And if, and if you're out there listening, this is going to be one of the most informational topics. And the reason why is because just like what Jim said, when we're talking about these windows and these tax windows, these can really make or break when you can take income in retirement. And I think the answer to your question, Jim, is really, really simple. The first thing I look at is when you're retiring, right? What is the gap? Right? When I thought about gap is what are we losing on income as far as adjusted gross? So if someone makes 150k and then now they're retiring, there's 10 on Social Security and maybe they have a pension right?
Now I subtract what they did make when they worked to what they're making now, all right? And that's called the gap. And I look at that first between before I do anything and why that's super important is because the client was able to say, hey, I made this much money and I paid taxes on that money, okay? Now then I'm lower, right, than where I was with my income. What can I make up that I'm still paying those taxes? Right. And when I what I mean by that is, is we're all going to have different tax brackets, obviously, as you go up, you know, in the income world. But when you can see that gap, you know, how much you can actually take out of those qualified accounts or maybe even some capital gains or however you want to do it to be able to kind of justify. So where you're not going over what you used to make. So that's the first thing that I look at, Jim. The second thing that I look at that's just as important is, is when I hit that next tax Bracket. I think a lot of people miss out on this, right? When they're taking out money to pay off a house or they're taking out, you know, how much do you take out, right? Or, hey, I want to, I don't want. I want to pay my, my new car off. Okay, well, if you're going to just take out money that's going to be taxed at, let's say at a 32% bracket instead of 24% bracket, you're paying an extra 8% of that money. You say, okay, well, I pay 5% interest, but you paid an extra 8% in taxes that year instead of taking it out next year instead of this year. So that's the gap, too. So there's two kind of gaps, right? The first one that I talked about is super important, right? What you're, when you're retiring, what your gap is between what you were making to now what you are making. And that second gap is, is those gaps in between the federal tax brackets. And I look at those a lot, Jim, I really do.
And, you know, they kind of correlate with each other. Right. Because when you retire, a lot of people, right, start in that 12% bracket.
[00:05:36] Speaker C: Sure.
[00:05:36] Speaker D: Because if you're married, filing jointly, and you're both taking Social Security, you're probably in the 12% bracket still, right. And you got an extra, you know, maybe 10, 20 grand to spare, then you get into that 22% bracket, right? So now we have to understand, okay, if I need the income and it's coming in, what am I taking extra right now if I'm going to take out 200K, right. Maybe that bumps you up to what, the 24 or the 32% bracket. Now, we're talking about a high, what I like to call opportunity cost.
And why that's being said is because when you go from 12% to 32%, that's 20%, right? I mean, you take a hundred grand, okay? And you say, hey, David, I'm going to pay 12% bracket, okay, that's $12,000. Instead you're paying 32. That's 20 extra thousand dollars per $100,000 of income that you take extra. So I think people have to understand where they're at, too. Right. Everyone's trying to just hold on to their IRAs, their 401ks, and they're not taking money out when I think it's more useful sometimes to take it out early while you can pay those lower brackets. That's a big, big concept that I think we don't talk about enough, Jim.
[00:06:41] Speaker C: Okay, so it's not necessarily about avoiding taxes completely, David. Right. It's about being strategic and when you pay them and understanding what those decisions could mean, five, 10, I don't know, 20 years down the road, whatever. When you look at something like a Roth conversion, though, what are some things that you have to consider before telling a retiree, yes, this could make sense for you?
[00:07:00] Speaker D: That's a great question. Roth conversions are very, very iffy. And when I say iffy, they, a lot of the times they don't work unless you are in that lower bracket. If you're able to grow, you know, a tax deferred asset, right, at the same rate as a tax free asset, but you're being taxed the same, it doesn't matter. You have to be able to make it make sense, okay? You have to be able to put that money away and say, hey, if I convert into a Roth IRA at the 12% bracket, okay, and I'm going to pay 22% down the road, right, when I, when I take it out, it makes sense to do that. Now if you're off converting at the same bracket or higher than you would be taking the money out, it doesn't matter either way. So this whole theory about Roth conversions kind of gets me a little hesitant sometimes because I feel like there's so many advisors that push the Roth conversions. It has to make sense for the client. When I talk to my aunt and my cousin, they own a big accounting firm up in Maryland, we talk every week. And when you're seeing people and they're already in the 22% bracket, right, and they're not even touching the 24 to 32, and then they're Roth converting and then they're saying, hey, well, okay, I'm still working, but guess what? When I retire, I can now take out tax free income. Okay, but you're paying 22% now. So if you didn't and you took that money out down the road at 12%, you'd be saving 10%, right? So did the Roth conversion really help you? No, it didn't. You have to be able to understand these things and know the math. And I think that's what people right there, Jim, that's the one thing you need to make sure your advisors or anybody that's, that's giving you financial advice is doing is taking the math, cold hard mathematics and doing the math on a piece of paper or a whiteboard that I love doing and showing it to you and saying, look, this Equals this, this minus this, this plus this equals this. No more hypothetical this. The taxes might go up this, the taxes have gone up this. And none of that is real math. All that is projections. Okay, we call that, you know, the, the right. We don't know. Right. We don't know.
[00:09:01] Speaker C: Jim Sounds like today's sports talk.
[00:09:03] Speaker D: It's all, you know, Matthew McConaughey says some weird way of doing it, but, you know, I, I think that a lot of the times people are trying to sell the average retiree on something in the future, and it's like, you have no idea what's going to happen. You don't have any idea where the market's going to be. You have no idea if taxes are even going to be as high as they are now or as low as they are now. You have no idea. So to be able to justify making a decision on something when you're, it just doesn't make any sense.
Now, obviously, you know, wealth conversions can pull a big play when it comes to utilizing the lower tax brackets. So if you have 10 or 20k of room to really get that Roth conversion in at 12%. Yeah, 100. It could work. Because now, right when you're taking out a big lump sum down the road, you don't have to worry about paying that 22% bracket. You only pay 12. So the opportunity cost is there. So you have to be careful, but understand it as well.
[00:09:59] Speaker C: Jim. Well, I think my next podcast is going to be called Shlalaloo.
There you go.
That'll be our word, by the way, for the retirement planning pipeline. Shlalalu. Well, anyway, smart tax planning isn't about predicting future tax laws or trying to eliminate every tax bill. It's about recognizing that retirement may give you temporary opportunities to manage when and how taxable income appears. That could include coordinating withdrawals, evaluating partial Roth conversions, preparing for required minimum distributions, and watching for effects of Social Security on taxation and Medicare premiums. Things that we, of course, can't forget. This question isn't simply how little taxes can I pay this year? It's how can today's decisions help create a more tax efficient retirement over the years ahead? So if you're approaching retirement or recently retired, this may be an important time to review how your savings will eventually be taxed. Pick up the phone, give us a call today at 850-565-1705, or visit us on the web at retirement planningpipeline.com to schedule that complimentary retirement review. We can can help you identify questions and potential planning opportunities to discuss your with your qualified tax professional. All right. Coming up later, learn how dependable income, intentional diversification, realistic spending, risk protection and long term thinking can help preserve your retirement savings. But up Next, the latest 2027 Social Security COLA estimates. This is the Retirement Planning Pipeline. We'll be right back.
[00:11:31] Speaker B: Visit Retirement Planning Pipeline to schedule your free, no obligation complimentary consultation today. The Retirement Planning Pipeline will return in just a moment.
[00:11:49] Speaker A: Information provided is not intended as tax or legal advice and should not be relied on as such. You are encouraged to seek tax or legal advice from an independent professional. Retirement should feel secure, not uncertain if market swings have you feeling uneasy. You've probably heard about annuities, but what aren't they telling you? You deserve the full story. That's why we created a free guide that explains the good, the bad, and yes, even the fine print. Inside you'll learn how annuities can create guaranteed lifetime income, what fees and surrender charges may apply, how the different types of annuities really work, and whether an annuity makes sense for you. It's clear, straightforward information so you can make a confident decision. Call Amerilife now. To get your free guide to annuities, the good, the bad and the fine print. Call 866-554-9546. That's 866-554-9546.
[00:12:35] Speaker B: Silex annuities contain withdrawal charges, interest and bonus recovery and market value adjustments that may apply to withdrawals made during the withdrawal charge period. Silox annuities are products of the insurance industry and not guaranteed by any bank nor insured by FDIC or ncua. NCUSIF Not a deposit not insured by federal government agency. Guarantees are based on the claims paying ability of the issuing insurance company. Restrictions upon FLY may only be offered by a licensed agent. Welcome back to the Retirement Planning Pipeline alongside retirement planning specialist David Pipes. Here's your host, Jim Taribokia.
[00:13:06] Speaker C: Welcome back to the Retirement Planning Pipeline. Thank you for making our show a part of your weekend on WCOA News Talk 104.9 on the radio side and with new episodes every Sunday at 10am and as we dive back into today's show, a quick reminder. If you like the content we're providing, subscribe to our YouTube page YouTube.com search retirement planning pipeline Hit that subscribe button for weekly video content, video highlights and special content as well. Retirement planning isn't about chasing the next hot investment. It's about making informed decisions. And that's why we'd like to send you A complimentary copy of our educational guide, the Good, the Bad and the Fine Print, Understanding Annuities for Retirement Confidence. Inside, you'll learn how annuities work, the different types available, the potential benefits, the trade offs, and the important contract details that you should understand before making any decisions. There's no cost and there's no obligation, just straightforward information designed to help you become a more informed retirement investor. Call us today at 850-565-1705 or visit us on the web at retirement planningpipeline.com to request your free copy.
[00:14:15] Speaker B: Come on down.
As we test your financial knowledge in Right or wrong.
[00:14:30] Speaker C: All right, it's time to test your financial knowledge with a game called Right or Wrong. The rules are simple. I asked David a series of questions and statements. David will tell me if my question or statement is right or wrong. If you're listening on the radio podcast side, watching us on YouTube, feel free to play along. All right, here we go. David. Right or wrong, our first statement. Once you retire, your tax bill will automatically go down because you no longer are receiving a paycheck.
[00:14:59] Speaker D: This is absolutely wrong, okay?
And while it could be right, you have to be careful, okay? Because first of all, Social Security, pensions, there's a lot of different things, qualified accounts, right? You're going to be taking out money out of different things to substitute your income where they're at. So you don't just automatically get a lower tax bracket, right? You have to be efficient with it and understand where it's at.
That's one of the biggest things too is, is, you know, being able to say that, you know, you're able to kind of, you know, maneuver on when you take it out and how you take it out. Some people just say, oh, I get to take money out because I'm. But what they don't realize is, is that, you know, sometimes they get taxed at a higher rate because they might have taken out a little bit extra too much to pay off something or to go on an extra trip. You just got to be careful on what time of the year you take it out.
[00:15:50] Speaker C: Jim okay, statement number two, right or wrong, a Roth conversion means you pay taxes today on the amount you convert, but you may gain the potential for tax free qualified withdrawals in the future.
[00:16:05] Speaker D: So that's absolutely right. And then that is what a Roth conversion is, okay? So you get the tax free withdrawals after you do it, but you pay the taxes up front. Now, again with those being said, right, you got to be careful because the only way that would Work is if the taxes were lower now than they would be in the future or when you take the money out. Like I said, if you double the money on both sides, then the tax brackets, the same doesn't make a difference whether you take it out out of an IRA or a Roth ira. Okay. You have to know where the tax brackets are and how it's going to benefit you.
[00:16:37] Speaker C: Okay? Right or wrong. If you're in a low tax year after retirement, you should convert as much of your traditional IRA to a Roth as possible.
[00:16:49] Speaker D: This can go both ways.
I think that as much as you want. I don't know if that's, that's the answer. I think that you, I mean, Roth converting a little bit of it to make up to that smaller bracket that you're in could be an advantage. All of it. No, because you, then you hit that higher bracket, then you know you're being taxed at a, at a higher bracket. So you have to know when you're taking it out, Jim.
And you got to make sure that it's gonna, you know, it's gonna be there. It could be, you know, if you're in a lower bracket when you retire and you don't need the money for income because you have, you know, you don't have a lot of expenses, right. If you have your house paid off and things like that, that could be a circumstance where some clients are like, hey, I can wealth convert now to where down the road, I don't have to pay 22% if I want to, you know, pull out 100K. Right. They only pay 12.
[00:17:36] Speaker C: Okay? So that might be the first time in the history of right or wrong that we have like a neutral type answer that.
[00:17:43] Speaker D: Because it could go both ways. And you know how I am, man. You know how I am. I mean, I look at both sides, you know, and where it's going to affect the clients. I think everything has a mathematical term to it.
[00:17:53] Speaker C: Let me ask you. Okay, I'm glad you brought that up. That was going to be my next question. When. With. Just to settle this final right or wrong state.
[00:17:58] Speaker D: Yeah.
[00:17:59] Speaker C: From a mathematical standpoint, is that right or wrong?
[00:18:04] Speaker D: Mathematically? It just, it depends on what you're, what you're taking out, Jim.
[00:18:08] Speaker C: Okay. I mean, that was a real trick question. I mean, the whole thing.
[00:18:11] Speaker D: Because I'll say this. If a client has $40,000 of income, okay. Of, of, of gross, but they have 40k until the 22% bracket, then it would be beneficial for them to take out $40,000, okay? Right now, if they're at 80K in the brackets, you know, in their next bracket, 22, then it wouldn't be beneficial. Right. So it all determines on clients taking pensions, you know, it just, that's a trick question.
[00:18:36] Speaker C: JIM all right, fair enough, fair enough. Well, you know what? We'll play a little bit right or wrong a little bit later on in the show. Maybe, I don't know, maybe we'll have another neutral answer. Maybe, maybe not. I don't know.
[00:18:45] Speaker D: I like that, though, because it shows you CL People are different, man. You know, everyone's different and they all have different, you know, they can all have different strategies and they can all work differently for the client. It depends on where the client is and what their goals are.
[00:18:58] Speaker C: JIM well, it goes back to the points, though, you've made in previous shows about all clients are all different.
And you can't utilize just one strict plan with every client. You have to look at every client's different situation and then determine what the best, best path might be going forward.
[00:19:14] Speaker D: Absolutely, absolutely.
[00:19:15] Speaker C: All right, we'll play again a little bit later on some more right or Wrong. But let's move on with this. Social Security in the news. 2027 COLA estimate stands at 3.5%. What the latest projection could mean for next year's benefit checks. According to SeniorLeagues.org Social Security recipients may receive a somewhat larger cost of living adjustment next year. And with less than month to go before the official announcement, the Senior Citizens League is Now projecting a 3.5% COLA for 2027 again cost of living adjustment. That would be higher than the 2.8 adjustment beneficiaries received for 2026. But this is still only, again, just want to caution everybody, this is still only an estimate. So, David, a simple question here. What does this mean for retirees?
[00:20:01] Speaker D: They get more money? JIM now, it won't, it's not going to be a ton of money, but I mean, it'll help, you know, it'll, it'll, it'll help, you know, some extra groceries each month. On Social Security side, 3.5% is a big adjustment, right? I mean, you think about that like if, if a couple's making, let's say, 80k a year or 70k a year, right? I mean, that's two, two to just two grand, an extra a year, you know, so I think that's, that's substantial. That's, that's a trip, that's a cruise, you know what I mean? So, I mean, it's there and it does Help people think, oh, it's only 2.5 or 3%, you know, 3.5%. I mean, it's, it's, it's money, right? It does help. Now, 3.5% of a million bucks is, you know, is a lot more than, you know, so it's like 35 grand. So it's a lot different when you have a lot more money and the percentage, you know, looks like it doesn't matter, but it does at a, at a small rate. Jim. I think that a lot of times people are, you know, oh, well, that's, you know, it does adjust a little bit, you know. Now, does it adjust for actual inflation of the dollar? I, I, I don't know.
You know, everything costs different, so it depends on what you're spending it on. You know, if you're spending it on investing in assets, then, then no, you're okay, right? But if you're spending it on, you know, maybe carton of milk or, or, you know, some eggs, I don't, you know, might be something different. So it, it goes both way, though, Gems. I, I, I think that, I think that it, it's, it'll help out, you know, what it can help out with. But Social Security guys is never the answer to your retirement. Social Security is only going to cover the, what they all say, the average of 35% of your actual income. So you just, you know, you're going to have to have income, and we all know that, that's the whole point, okay, is you're going to have to take out some qualified money, capital gains money, you know, CD money, whatever it is, whatever interest, whatever it is, and you need to be able to utilize the best way and most efficient way for tax bracket wise to take that money out.
[00:21:58] Speaker C: And Again, a projected 3.5% COLA would provide some additional relief, as David mentioned there in 2027, but the final number won't be known until October 14th. And remember, a larger Social Security check helps only to the extent that it keeps pace with, with the rising cost of retirement. Social Security is only one part of a retirement income plan, but when and how you claim it can actually affect your, your income for life. So again, give us a call today at 850-565-1705 or visit us on the web at retirementplanningpipeline.com and schedule that complimentary review. This is the retirement planning pipeline, helping
[00:22:36] Speaker B: you take control of your financial future.
This is the retirement planning pipeline.
[00:22:47] Speaker C: There's a moment in retirement that nobody really talks about, the moment when something goes wrong and you realize the money coming in every month is no longer coming from a paycheck. I'm Jim Tarabokia for the Retirement Radio Network powered by Amerilife. Picture a Tuesday morning in retirement. The coffee is brewing. The phone is sitting on the kitchen table. Your spouse is playing the sounds of top hits from three or four decades ago echoing off the walls. And there's nowhere you have to be. No commute, no boss waiting for you to respond to an email. The morning belongs to you. And then you hear a drip. You look up and there's water coming through the ceiling. The roof needs repairs. Nothing catastrophic, but repairs add up, and it can mean taking money from an investment account you hadn't planned on touching and can leave you wondering whether the next unexpected bill is right around the corner. Financial advisor And Retirement Radio Network's Matt McClure explains how retirement planning isn't always about predicting every expense that will come your way. Right?
[00:23:45] Speaker A: I mean, you're never going to anticipate every expense that retirement may bring. But a strong plan is going to give you reliable income reserves that you can access and flexibility to make adjustments when life inevitably changes.
[00:24:00] Speaker C: This is one of the realities of retirement that doesn't always seem to make it into the dream. You spend years planning for the predictable of when will I retire? How much money will I receive from Social Security? How much will I need each month answering these questions with precision only to be sideswiped by one of life's unexpected occurrences. And that's where having a well organized emergency fund proves its worth. During your working years, that money might protect you if the paycheck suddenly disappears. But in retirement, the paycheck has already disappeared. So maybe the better question isn't how big should my emergency fund be? Maybe it's how prepared am I for the unexpected? Because life doesn't happen in a vacuum. And neither does your retirement. The goal of retirement isn't simply to have enough money for the life you planned. It's to have enough capital behind the resilience for the life you didn't for the Retirement Radio Network powered by AmeriLife, I'm Jim Tarabagia.
[00:24:54] Speaker B: Planning for retirement doesn't have to be overwhelming. Get expert insights, tools and personalized strategies to secure your future. Visit retirementplanningpipeline.com today. Your retirement, your plan, your peace of mind.
[00:25:11] Speaker C: This is the retirement planning pipeline. If you've missed any part of today's program or want to catch up or even listen to previous episodes, go ahead and subscribe and listen to the program in podcast form on Apple, Spotify, or wherever you get your podcasts. All right, stay with us because coming up, five habits for lasting wealth. But right now, as we do each and every week, it's time to unveil this week's financial wisdom quote of the week.
[00:25:34] Speaker B: And now for some financial wisdom, it's time for the quote of the week
[00:25:42] Speaker C: and a little bit of a different twist on this week's quote of the week. And this quote comes to us from a Scottish proverb. Here's the quote. Saving a small amount soon builds up to a larger amount.
This week's financial wisdom Quote of the week. And a quick reminder, be sure to visit us on the
[email protected] Leave us your questions. Leave us a review. We would love to answer your questions on the air. Again, Visit us at retirementplanningpipeline.com Come on
[00:26:12] Speaker B: down as we test your financial knowledge in right or wrong.
[00:26:21] Speaker C: All right, it's time to test your financial knowledge with a game called Right or Wrong. We did round one earlier in the show. Round two, right now, the rules are very simple. I asked David a series of questions or statements, and David will tell me if that given question or statement is right or wrong. And again, if you're listening on the radio podcast side, watching on YouTube, feel free to play along. All right, here we go. Right or wrong. Our first statement. A large retirement account withdrawal or Roth conversion can potentially affect more than just your federal income tax bill.
[00:26:56] Speaker D: This is absolutely right, Jim. It's kind of like taking out money out of that IRA or 401k or TSP or whatever qualified fund you have and then paying off your house. Any large distribution or any large Roth conversion out of that can have multiple effects. And the big one is irmaa. Okay? It can really, really affect your, your, your Medicare Part B premium. And, and you have to pay higher, right, for that, for that year of that, that higher income. What it can also do is give you less freedom, too, on what you want to do for that year. And I think that's a big thing. People don't understand.
You Roth convert, right? Let's just say, you know, a large amount of money, now you're in that higher bracket. So now whatever money you need, you can't take out the Roth conversion, right? The Roth conversion is there. You just convert it into Roth. You can, you can't touch it for, for five years. But on the same time, right? That's where it comes to. Okay, now I have to take out Money to live. So now you're in a higher bracket, and now you're spending the money, right. And taking out money out of your IRAs or maybe some extra money out of capital gains at a higher bracket. So, so some of that stuff you have to be really, really careful with. You have to be careful on when to take it out and how to take it out. And that's something super important that I go over with every single client. Jim.
[00:28:04] Speaker C: All right, right or wrong, statement number two. If you don't need the money from your traditional retirement account, you can simply leave it there indefinitely and avoid paying taxes on it.
[00:28:15] Speaker D: Absolutely wrong.
[00:28:16] Speaker C: Yeah, that's a decent.
[00:28:17] Speaker D: We all know. I think everyone knows this one, right? RMDs are a big thing, and that's why if the government makes you take out money at a certain age, that means something. That means, hey, let's start taking it out efficiently now so that we don't have to worry. Right? I have so many clients that have, that sadly had done the wrong thing, and they'll take out their RMDs down the road, and they, they could have spent, they could have taken in, you know, an extra 30 or 40k out their prior 10 years before the RMDs, but they didn't. And they would have paid, you know, maybe 10 or 12% less taxes, but now they're stuck. So these things are, Are a big problem right now in the United States. And I think people aren't getting taught they're not educated enough. Jim. My dad always said, my, my grandfather always said as well, it's always about what you keep, right? Not what you make. Right. You can make a million bucks, but if you pay the IRS 37% and you only take home 640 grand. 630 grand, right. That's 400, and that's $370,000 that you don't have in your pocket. So you have to make sure that you're looking at what you're keeping, not just what you're making.
[00:29:21] Speaker C: I like that, too. That's our second quarter quote of the week right there. Very, very smart. I like it. All right, here we go. Right or wrong, the goal of retirement tax planning should always be to pay the absolute lowest amount of taxes possible in any given year.
[00:29:36] Speaker D: No, you know, that's, that's not the goal you have to live. Okay. But obviously that would be a very efficient goal, is to pay the lowest amount of taxes. I think to look at the entire timeline, too, of what you want to do where you're spending your money at things like that. I think that when it comes down to it, Right. We've got a certain timeline in place that a client has for themselves.
[00:30:03] Speaker C: Right.
[00:30:03] Speaker D: I have clients that, that have their kids getting married. So they are spending a lot of money now on weddings, right?
[00:30:09] Speaker C: Yeah.
[00:30:09] Speaker D: Now, is that the most tax efficient way to do it? No. Because they're in a higher tax bracket. Right. They mean taking out an extra 100 grand that they're not using for income.
Right. Is going to maybe pay an extra 10% taxes, but it's because they need it. Right. Their kids don't. Their kid. You can't just tell your kids, hey, we're not getting married for 10 years, right. No, you got to tell them, okay, son or daughter, you know, we'll, we'll, we'll, we'll pay for that. So it's not always the goal. Okay. Now, obviously, you know, it's a big part of the goal. Right. And you need to look at it. But you know, it, it just determines on what the client's goals and needs are. Jim.
[00:30:42] Speaker C: All right. Great points. Great job there, David. And we will play more Right or WRONG next week. But in the meantime, if you have any questions that you'd like us answer on Right or Wrong, write us in@retirement planningpipeline.com and we will answer them right here on the air in a future Right or Wrong segment. Coming up next, five habits for lasting wealth. And as a reminder, if you have any questions, pick up the phone. Give us a call at 850-565-1705 or visit us on the web at retirement planningpipeline.com to schedule that free no obligation consultation. This is the retirement planning pipeline. We'll break here. We'll be right back.
[00:31:18] Speaker B: Your retirement questions deserve real answers. Call 850-565-1705 to schedule your free no obligation consultation today.
[00:31:35] Speaker A: Well, nearly one in four Americans have no emergency savings at all and would struggle to cover an unexpected expense. That's according to Bankrate. And having an emergency fund is really, really an important thing because we never know what's going to happen in life after all. Joining me now to talk more about that is Rod Griffin. He's senior director of consumer education and advocacy at Experian. Rod, thanks so much for taking some time for me. I really appreciate it, sir.
[00:32:01] Speaker E: Well, thanks for having me.
[00:32:02] Speaker A: Well, no problem at all. It really is crucial to have some sort of backup, some sort of safety net. Right. I mean, but a lot of people, as we just said, that that statistic there From Bank Rate, 1 in 4Americans almost have absolutely no emergency savings.
Why is it so difficult for so many of us to save money right now?
[00:32:27] Speaker E: It's life is expensive.
And when you look at where inflation was over the last several years, coupled with the holidays just being, you know, it just passed and people have what I kind of call the holiday hangover with their debts, you know, trying to pay down those credit card bills and debts they may have taken on during the holidays.
That puts a pinch on, on the bank account and can make it hard to set aside savings when it feels like all of your money is consumed and just paying the, the day to day expenses and reducing the debts you may have. So that makes it hard and it's, it's difficult to get started because of that.
[00:33:08] Speaker A: Yeah, it really is very difficult these days, as you say there. And I mean, you know, how much should people save in an emergency fund? I know that I've, I've heard different things from different folks. A sort of, you know, general guideline is like three to six months of expenses, some people say up to a year, some people say not quite so much. What would you say is a good kind of goal for people to set for their emergency fund?
[00:33:34] Speaker E: Yeah, and you're right. The rule of thumb has been for many years, three to six months of sort of your daily, of your monthly living expenses, really. So things like your utility bills, your rent, your mortgage, food costs, those sorts of things. And that can be a really daunting number if you're trying to, you know, set a number to it and reach that goal. The problem with a goal that's large like that can be that it becomes discouraging and so you emotionally kind of check out and give up and that defeats the purpose. So my recommendation is start small and you maybe don't put a large number on it. Maybe it's, I'm going to save $10 a month or $20 a month, whatever you have sort of cushion to do and start setting that aside. And over time it will build toward that larger amount. The key is to be able to stay motivated to build that habit of savings so that you are just kind of naturally putting savings aside over time.
The other thing that is important to focus on is finding ways to reduce your expenses because that gets in the way of saving.
And you know, that means tracking your expenses, knowing where your money's going, where it's coming from. You know, I kind of think about, you know, you should be in control of your money. It shouldn't be in control of you, but that's the way it often feels.
And so if you track your expenses and know where they are and then look at ways you can reduce those expenses, and not just the don't buy coffee once a week, which is kind of the common one, but think about just the regular bills you have every month. People think of Experian as a credit bureau, which we are, but we're much more than that today. And one of the things that we kind of think about and aspire to be is to be a person's big financial friend, meaning we want to help them take control of their finances and to reduce the costs of everyday life. So we have, for example, a service that can help you reduce your auto insurance payments each month.
We have a service that can help you identify streaming services that perhaps you've forgotten about or other subscription services and signed up for for a sporting event or a movie that you wanted to watch and then just didn't use it again, but it's still, you know, being deducted every month and. And it's an expense. We can help you find those and cancel them. We have a service that can help you negotiate regular monthly bills, things like utilities for many people, to reduce those monthly costs. We have a credit card marketplace that can help you find credit cards that would be at a lower interest rate or lower fees that perhaps you could transfer balances to and pay them off faster. So there's. Think of Experian as more than just a credit bureau. It's really about your overall financial health. And saving means having money to set aside to save. And that requires reducing your. Your monthly expenses.
[00:36:41] Speaker A: Yeah, absolutely right. And I sort of always think of it as, you know, pay yourself first. Right. It's like your future. You will. Thank you if, if you do that. And. And an emergency fund is a big part of that. And of course, one of the things. Ways too, that I often hear about, you know, sort of makes. Makes things easier. You were just talking about the subscription services and things like that that we all sign up for, and then maybe we forget about, you know, after a certain amount of time. The same thing could be true in a positive way, though, if you kind of automate some savings, Right. Just have a certain amount go into a savings account or whatever it might be and just really, you know, set that up to just automatically happen. Maybe you forget about that and then before you know it, you've got enough saved up for your emergency fund.
[00:37:27] Speaker E: Right, right. It's that the old out of sight, out of Mind thing. And out of sight, out of mind can be good. If you're automating those deposits and they're automatically going into a savings account, you don't think about it and it just becomes habit and you work with then living within the means that you have the funds that are left over and.
But it could also be bad if it's out of sight, out of mind and I'm just not going to think about the bill I have to pay. Forgot about it and then I didn't pay it.
That's exactly the opposite. Now you're damaging your credit history potentially. You're reducing your access or making access to financial services more expensive. So automating payments and automating savings can be a great tool for building that, that habit that just sort of becomes natural over time.
[00:38:18] Speaker A: Yeah, absolutely right. Well, just about time for us to wrap things up. But anything else that you wanted to mention, Rod, that we haven't touched on that comes to mind?
[00:38:27] Speaker E: Yeah, well, I mean being either retirement radio network, think about saving for retirement. If you work for a company that offers a 401k for example, and they have a match, never forgo that match. Make sure you take advantage of that. If it's pre tax, you can save potentially tens of thousands of dollars over your career if you're taking that match and putting money in the 401k. And if it's pre tax, it likely won't affect your take home pay or will have very minimal effect.
So if you are not doing that, it could cost you a lot of money over, over 20 or 30 years.
So you know, make sure you're taking advantage of every savings opportunity you have. Not just what we think of as an emergency savings, but also retirement savings as well because they play a part in that too.
[00:39:17] Speaker A: Yeah, 100%. I always tell people if you're not taking the match with your employer if it's offered, you're telling me you don't like free money and I don't believe that for a minute.
[00:39:25] Speaker E: So there we go with you on that one.
[00:39:29] Speaker A: Rod Griffin, Senior Director of Consumer Education and Advocacy at Experian. Thank you so much Rod for spending some time with me. Really do appreciate it.
[00:39:38] Speaker E: Great, thank you. Glad to be here.
[00:39:40] Speaker B: Missed part of today's show. The retirement planning pipeline is available wherever you get your podcasts
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[00:39:49] Speaker C: inside the Retirement Planning Pipeline, the show that delivers expert insights, actionable advice and real world financial strategies to help you retire confidently and comfortably. I'm your host Jim Jarbone Rokia alongside retirement planning specialist buddy of mine, David Pipes. David again will be with us in just a moment. Thank you for making this show a part of your weekend on whichever platform of your choosing. Education first, decisions second. That's what retirement planning should be all about. There's a lot of information and misinformation about annuities today, and that's why we've put together a free educational guide called the Good, the Bad and the Fine Print Understanding Annuities for Retirement Confidence. This booklet explains the different types of annuities, how they may fit into a retirement income strategy, and just as importantly, the limitations, the trade offs and the contract details that you should know before making any big decisions. We believe informed people make better financial decisions. If you'd like your free complimentary copy, simply give us a call at 850-565-1705 or visit us on the web at retirement planningpipeline.com there's no cost, no obligation, and it's yours free just for listening to the retirement planning pipeline. All right, let's move on with the final segment of today's show. Five habits that help wealthy retirees stay Wealthy. Protecting your retirement may require a different strategy than building it. Accumulating wealth and preserving wealth are two different things, and they do two different jobs. During your working years, you're generally adding money to your accounts and have time to recover from market downturns. Retirement reverses that process the paycheck may stop, withdrawals begin, and financial mistakes can be a lot harder to overcome. A recent article by Yahoo. Finance highlighted five Wealthy retirees often use what they use to protect what they built. And while the numbers may be different, these habits can help you create a more sustainable retirement no matter how much you have saved or how much you actually have invested. Number one, create an income floor. Number two, don't depend on one type of asset. Number three, set realistic spending goals. Number four, protect against the risks that could undo the plan. And finally, number five, think in decades, not days. All right, so David, when you hear those five habits, what stands out to you the most? And how does the strategy for protecting wealth and retirement really difference from the strategy that someone used to build that wealth in the first place?
[00:42:16] Speaker D: Yeah, I think first of all, Jim, is they're all great points and I like the way that they put them. I think that one stands out to me specifically, and I think it's the easy one where it says set realistic spending goals. I think this affects everything. When you're working, you don't have the time that you do when you're retired. And I go through this every single day with clients that think that their retirement lifestyle is going to be cheaper than when they were working. And I'm like, guys, you have no idea. I literally live and breathe and eat retirement. I mean, all I talk to is retirees every single day and I see their incomes and then what they're spending now. And it's a dramatic change and what they're spending on, right? I mean, you got to think about it. You're not at work, so, you know, you have time to go to lunch, you have time to go see the grandkids, you have time to go have a cocktail, right? When you don't have work, guess what? You have time to go to a fancy dinner at five o'. Clock. You don't get home tired, your weekends become longer. When you're retired, you don't know what day it is. So you end up having more fun every single day than going to work. These are the things that people don't realize. They think that they, oh, oh, well, my income, you know, I don't need much to retire, you know, but the realistic approach is, is that you're going to have those expenditures. Not only that, healthcare is a little more expensive. You've got more freedom out there to do things. I think that setting a spending goal right is super important. Now, I'm not saying cut yourself off. What I'm saying is don't do the wrong thing. You know, be, be logical, right? And don't, don't. Also don't do the other part. Don't make yourself not spend because you're afraid. Okay? It goes both ways. Learn how to be able to set an income stream up and be able to utilize what you have and what you built is totally different from when, you know, you started building this plan because you've literally only worried about what decades of growth you've never worried about spending. So I think number five is both. I think number five is, you know, the decade part instead of days. I think that's both. I think that's while you're retiring or when you are planning, you know, to grow your assets until you retire.
But I think the spending habits become more of an issue when you retire than when you're not because you have a set amount of money now and now you're going to spend it. So it's different when you're working and you're making the money. You know how much you can spend to now you don't really know how much you can spend, Jim. You know, I think that's what comes about. A lot of the times people are like, well, I've got all this money now. I can spend it here and spend it here. But then all of a sudden there's 75 and it's all gone, right? So you've got to be careful. But you also have to understand how to grow and maximize your assets and where to position them. Growth in income, like we always talk about, to be able to satisfy when, if that income is ever needed to get higher, you've got that growth in that left side that was accumulating while you were, you know, drawing or. Or guaranteeing yourself income on the right side. So both. Both really do better.
[00:45:17] Speaker C: And you talk about planning in decades rather than days. And the best way, I would think, to do that. How many times have we talked about it on this show? We talked about it a little bit earlier in this episode.
It's using a mathematical formula, using mathematics, and customizing each plan so that you can prepare that person for decades rather than financially just days, right?
[00:45:38] Speaker D: And everyone wants to talk about what I want to do this year or what I want to do next year or what I have this year.
And what they don't look at is, is that, okay, well, what happens if I have a market crash in this decade?
You know, a market correction has happened in every decade. We know that. You know, people always say, well, the market always goes back.
People have. People who say that have not went through a market correction when they were taking out income. And it's sad. Everyone's so spoiled, you know, over the past five years because, you know, and I'm telling you, go ask someone who was taking income out in.08, it's nothing. It was nothing like you, like, like now, right? So I think protecting yourself and taking some of those gains and protecting yourself from that market loss while you're taking income, it's one of the most important things, Jim. And we talk about it. It's a math equation now. It's a different math equation for everyone. Everyone's different, okay? Everyone's got different assets, different income, maybe pensions, more Social Security, less debt, more liabilities, married, not married, kids, grandkids, the whole nine yards. Everyone's different, but everyone should have a certain equation for themselves. After you talk to a financial advisor, right? Because the first thing I do is I really nominate, right? I'm a nominal guy. I look at what my client has and what we can kind of defer to say, hey, look, you guys need this. We want this, right? Let's make sure that we can have that. Okay? And I'm not talking about having that when you're 80. I'm talking about having that income throughout until you're 80. Right? Because a lot of people miss the good years in their life, and they were the retirement side, and they're not able to. They want to save it, save it, save it. And they don't want to spend it. And then they wish that they did spend it. I mean, so many people have said, david, you know, I wish that I knew then what I know now. And, well, I wish I spent more and did more then when I was healthier.
And, you know, now they're struggling, and now they're trying to do those things, right?
And the whole, oh, I'm happy with spending this. No, no, you're not. You know, you're satisfied. But when's it. I mean, you live life to not be satisfied. You live life to. To be. To do over. You know, you. You want to be over that, that. That edge. You want to feel like you've accomplished something. There's a goal that you've accomplished, or, you know, that money sitting in the bank is not the goal. The goal is to be able to live your full life or your full retirement, right. The way that you've worked hard for. Right? Not to say, well, I can't go here because we don't have enough money, or I want to save it instead of, you know, go to the grandkids, or we don't need to go that far away, even though I love that place because the airline costs too much money.
[00:48:18] Speaker C: Right.
[00:48:18] Speaker D: You don't want to have that problem. Right. And that's why it's super important to sit down and go over the, you know, a good plan, in a mathematical plan to make sure that you can do those things. Right. I can't stress it enough, Jim.
[00:48:32] Speaker C: Well, I do want to circle back to something before we end today's show, and I want to go back to number one, creating an income floor. How do you help clients create that income floor when they come see you?
[00:48:41] Speaker D: I think that's where the gap. Right. We talked about the gap in, in the first segment, looking at what that gap is from when you do retire. Okay. Looking at what you made, how comfortable you lived. Right.
You know, a lot of questions go into each client on what they like, right. What they want to spend, if that was enough money for them. Right. What plans do they have ahead for that year or the next year. What their expenses were and what their expenses are now. Do you have that mortgage payment that you did for the last 20 years or is it all done right? Do you have those car payments? That's that. Or maybe, you know, you know, full coverage car insurance instead of liability, which are your fixed expenses. And where is that gap at? Where's that gap of what I'm, what you're creating in guaranteed income compared to what your expenses are? Right. And then when you retire, how far does that gap come down? That's, that's where we have to discuss that and talk about it. And I, I talk about it every day and I sit down with every client after this show. I'm going to talk to you, you know, you know, tomorrow and all week I'm going to be asking these same questions towards tons of clients right when I'm helping them out. And I feel like that's one of the most important things as a financial advisor to help someone with is to understand, not necessarily tell them what to do, but, but it helps them understand what they can do and what they want, right? Because they don't know what they don't know. They don't know what they can get, what they can receive, how much income they can get, how many trips they can take.
[00:50:07] Speaker A: No.
[00:50:07] Speaker C: 1.
[00:50:07] Speaker D: I mean, it's a real problem, right? And that's what I think I can help out with, which I absolutely love. Jim?
[00:50:15] Speaker C: Well, the habits that help wealthy retirees protect their money are not secret or exotic. They create dependable income. They diversify intentionally, they spend realistically, they protect themselves from major risks, and they make decisions with the next several decades in mind. You don't have to be wealthy to adopt those habits. In fact, the less room you have for financial mistakes, the more important those habits may become. The real measure of a retirement plan isn't simply how much money you've accumulated. It's whether or not that money can support your lifestyle, adapt to changing conditions, and provide confidence for as long as retirement lasts. Building the nest egg gets you to retirement. Creating dependable income, managing risk and planning for long term can actually help you stay retired. So again, give us a call at 850-565-1705 or visit us on the web at retirement planningpipeline.com get started today and schedule that free, no obligation consultation. And if you missed any part of today's show, don't forget to subscribe to the program and podcast form on Apple, Spotify or wherever you get your podcast. Subscribe to the show on YouTube. Search Retirement Planning Pipeline on YouTube for clips and special content as well. Thanks for listening. This is the Retirement Planning Pipeline. We'll talk to everybody next weekend. In the meantime, have a great week everybody.
[00:51:29] Speaker B: Thanks for listening to this week's episode of the Retirement Planning Pipeline, the show that helps you take control of your financial Future. Whether you're 5 to 10 years from retirement or just getting started, Retirement Planning specialist David Pipes has the strategies, tools and experience to help you make those most of your nest egg. Take control of your financial future and get started today by visiting retirementplanningpipeline.com and if you missed any part of today's show or want to catch up on past episodes, be sure to subscribe to the Retirement Planning Pipeline wherever you get your podcast.
Not affiliated with the United States Government, Amerilife agents do not offer tax, legal or investment advice. Consult with your tax advisor or attorney regarding specific situations. Opinions expressed are subject to change without notice. These opinions are not intended as investment advice, nor do they predict future performance of any product. All information provided is believed to be from reliable sources. However, we make no representation or warranty as to the accuracy of any statement. This information is intended to be educational in nature and does not provide a guarantee or specific result. All copyrights and trademarks are the property of their respective owners. Amerilife assumes no responsibility or liability for the content of this message. The information contained herein is provided on an as is basis with no guarantees of completeness, accuracy, usefulness, timeliness, or the results obtained from the use of this information.
[00:52:52] Speaker C: Charles David Pipes is an individually licensed and appointed agent. Learn
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[00:53:02] Speaker A: well, the job market these days can be tough for anybody, but especially older workers really concerned about either losing their job and then having to find a new one in a tough job market or, you know, other concerns within the workplace. And AI is increasingly becoming a part of that workplace, including finding a new job. Well, joining me to talk more about that is Carly Roskowski with aarp.
She is the VP of Financial Resilience Programming there. Hi Carly. How are you?
[00:53:33] Speaker C: I'm good, Matt.
[00:53:34] Speaker F: Thanks so much for having me today.
[00:53:36] Speaker A: No problem. Thanks so much for being a part of the discussion here and it's a very important one. I mean, first of all, as we kind of set the the sort of baseline, I guess, for our conversation, what are people saying about their concerns about either, you know, losing a job, finding a new job at a certain age? I know that you all have some new research that kind of delves into that.
[00:53:58] Speaker F: Yes, we do. And the labor market is quite challenging right now. Many people who have jobs are staying put. We're calling that sort of job hugging. You might have heard that term. So older workers who have been laid off or those who retired and want to go back to work may have more difficulty finding a job than they have in the past during this current climate. Our recent research shows that about a quarter of the older workers we surveyed are concerned about losing their job within the next year. And more than Two thirds, about 67% of older workers believe it would be difficult to find a new job right now.
[00:54:33] Speaker C: Yeah. Wow.
[00:54:33] Speaker A: It's, it really is a concern obviously for a lot of folks then. And so, you know, I mentioned AI there. You know, it's, it's sort of taking over our lives a bit.
And, and I think it's gone from maybe this sort of like scary unknown thing to just this sort of tool that we're all using in one way or another. How are workplaces, especially in the job search or that maybe the, the candidate search, if you're talking about the company's position there, like the candidate search part of things, how are they using that? And I guess as a follow up to that, how can candidates for jobs actually use that to their advantage?
[00:55:15] Speaker F: Yeah. So the job market has changed dramatically in recent years with AI playing a much bigger role both on the employer side and the job seeker side. So we include, encourage older workers to embrace this technology, including AI, and use it to help with their job search. You can use it to help write your resume and cover letters. It can also provide information or research on the companies that you're interested in or you're applying to. And it can even predict the types of questions that may be asked during an interview.
[00:55:45] Speaker C: Wow.
[00:55:45] Speaker A: And so, you know, what are some tips that you may have for older job seekers who are either, you know, updating their resume, maybe looking at using different AI tools to either help with that or other aspects of the job search process.
[00:56:00] Speaker F: Job seekers should focus on making sure that their resume highlights their skills and experience and not their age. So we recommend your resume be no more than two pages long. Focus on your recent experience, include your credentials, but you don't have to include your graduation dates. Take off your street address and maybe ditch that old AOL or Hotmail email address for a more modern service like Gmail. But we also talk a lot about making sure that your resume includes industry specific terms or keywords straight from the job descriptions that you're applying to. Because some employers are using AI based Tools to do an initial review or scan of candidates. And if you have these keywords or specific terms, it can improve your chances of making it past those sort of first digital gatekeeper rounds.
[00:56:50] Speaker A: Yeah, boy, talk about the changes in, in the workplace and in the job seeking area.
It really is crazy how things do evolve over time.
And you know, I mean, as we talk about older workers and, and folks going either going back to the workplace or, or just being in the workplace for a long time and bringing that experience to the table.
AARP, I know often really highlights the benefits that come with that. You know, people of different generations working together. What does that look like right now in 2026?
[00:57:24] Speaker F: Yeah, there are five generations in the workplace today, which is fantastic. And we see and research shows that multi generational teams bring together different perspectives, different skill sets and different ways of solving problems. We hear from younger workers that collaborating with older colleagues provides them opportunities to learn new skills and, and contributes to maybe a more productive work environment.
Our recent research shows that 90% of all workers enjoy working with people of different ages.
[00:57:54] Speaker A: Yeah, I often have enjoyed that as well. Like just getting that when I was younger, like you know, getting that experience and, and all of that just from people who have been there and done that in the workplace. I always thought was just so helpful. And really they really do just bring a lot to the work that they do. And along those lines, what resources are out there for, you know, from aarp, I should say for older Americans who may be looking for work right now.
[00:58:22] Speaker F: Job seekers can go to aarp.org work to find expert advice, tools, resources, including AARP and Indeed's job search platform which offers thousands of curated job listings. Help with your resume and interview prep.
[00:58:41] Speaker A: Very good. Well, we will direct our listeners in that well direction.
Carly Roskowski is VP of Financial Resilience Programming at aarp. Carly, thank you so much for spending a few minutes with me. I really do appreciate it.
[00:58:54] Speaker F: Thank you, Matt. Have a wonderful day.
[00:58:56] Speaker C: Investment advisory services offered through Brookstone Capital Management llc, a registered investment advisor. BCM and Amerilife are separate companies but are affiliated through common ownership Insurance. Products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Registered investment advisors and investment advisor representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interest of our clients and to make full disclosure of any conflicts of interest. Please refer to our firm brochure the ADV2A item 4 for additional information. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by Brookstone. Indexed or fixed annuities are not designed for short term investments and may be subject to caps, restrictions, fees and surrender charges as described in the annuity contract.
