Active Wealth Show

BXDWHE Jars of savings. Image shot 2010. Exact date unknown.

Brandy Seats, College Planning and Tax-Free Retirement Expert Joins Ford on this Week’s Active Wealth Show!

Ford Stokes, MBA, is the Host of The Active Wealth Show and Founder/CEO of Active Wealth Management. He is passionate about helping our clients protect and grow their wealth Fee-Efficiently, Market-Efficiently and Tax-Efficiently

“Brandy Seats, Certified Financial Fiduciary®.  Brandy specializes in retirement planning and investments designed to minimize portfolio volatility and maximize income. She previously worked in the Healthcare Industry serving as the Director of Sales and Marketing to several multi-billion-dollar clients. Her specialized experience gives her a unique vision in her approach to building client portfolios. Brandy is passionate about her clients’ financial education and works to share the impact that smart money planning can have on their financial future. She reveals smart planning strategies for all generations – from baby boomers to millennials.  Brandy also enjoys volunteering and started a non-profit RAOK, Inc. (Random Acts of Kindness) in 2014. RAOK brings value to our community through projects like animal advocacy and financial literacy education.”

Nasdaq and S&P 500 Reach New Highs

Markets broke out today after two weeks of digesting the October and November gains. The S&P 500 and the Nasdaq are at new all-time highs. Let’s take a look at how we got here.   First off, China issued new guidelines for protecting intellectual property, which has been a concern for companies doing business there. This apparent breakthrough on an important trade issue was the impetus for worldwide equity markets moving higher today.   I have discussed the need to watch the small-cap index (IWM), as well as transportation (IYT) for signs that the current rally has more room to run. Both indices had a big day today and are outperforming the Dow and S&P 500. Improving emerging markets (like China) serve to further strengthen the bullish case for stocks. The emerging market index (EEM) was up more than 1% today and China (FXI) was up 1.67%.   We have a shortened holiday week and expect to see low volume activity across the board. This may increase volatility, but the trend is clearly up. The technical market performance that we have seen thus far in November is impressive. Breaking through the 2900-3000 range on the S&P 500 was important and took no less than five attempts over the past two years.   I will close today by wishing everyone a happy and healthy Thanksgiving holiday. I hope everyone takes time to be grateful for the blessings of family and friends. In the grand scheme of things, those are what matter most.  

The retirement income gap is simply the difference between your budget and your guaranteed income sources. For example, if you have a budget that requires $5,000 per month of income in today’s dollars, and you have guaranteed income from social security and pensions of $3,000 per month then your gap is $2,000 per month.

How to Determine and Plan to Close Your

Retirement Income Gap:

  Determine

SSA Income Available to You During Retirement at Various Ages

  Estimate

Your Monthly Expenses (Two Months & Divide by Two)

  Research

and Estimate Inflation as Measured By CPI-E

  Reduce

Future Tax Risk with ROTH IRA Conversion or Life Ins.

  Plan

for Loss of 33+% in SSA Income with Death of Spouse

  Follow

the 4% Rule: Stay Invested (SMART RISK) to Outpace Inflation

  Consider

the Rule of 100 & Potential Bond Replacement Strategy

  Generate

a Personal Pension (We Will Show You How)

  Recalibrate Your Financial Plan Each Year

An Indexed Universal Life Policy can help you earn market-like gains without your money being invested in

Here’s a Graphic Overview of the process to properly IMPLEMENT A ROTH LADDER CONVERSION!

A look back at the past six weeks from our Top Portfolio Management Company, Cabana Asset Management:

September 30: We noted continued mixed messages in the market. While markets saw selling and we were in a technical manufacturing recession, jobs numbers were strong, the yield curve was improving, and we were only 2% below all-time highs in the major indexes. We called the glass “half full” and commented that dividend payers, defensive equities and real estate were attractive. Shortly after this commentary our algorithm signaled a reallocation to less risky assets.

October 7: We felt that the jury was still out and explained that the previous six months of rangebound volatility would result in the market giving us a “verdict”. We were looking for a breakout above or below the range and provided the levels on the S&P 500 that we were watching (2720 and 3000).

October 14: We suggested that the “news” doesn’t matter. What does matter is interest rates, earnings and price. We noted that earnings would ultimately carry the day and were looking forward to the beginning of earnings season the following morning.  October 18: Our algorithm signaled a reallocation to more bullish conditions. This was primarily due to changes in price of the broad markets, as well as initial earnings reports that had come in over the previous three days. Our algorithm observed that things were “better” and that we should reallocate to assets that outperform in a “better” market environment. We began the process of reallocating our portfolios and notified our advisor partners.

October 21: We noted stellar earnings reports from financial institutions and outperformance in the transportation sector. At that point, the yield curve had maintained a better spread between short- and long-term interest rates. We also pointed out that equity markets were right at all-time highs and we were watching for a breakout and fourth quarter rally.

October 28: The breakout above 3000 on the S&P 500 had occurred. We identified rotation into higher beta assets as further evidence that professional investors were reallocating in response to growth prospects improving. We were watching for buying in energy, commodities and transportation. As soon as we said it, that’s what occurred.

November 4: We pointed out that the fourth quarter rally was officially on us, and were watching for outperformance in risk assets like small caps, emerging markets and industrials in order to continue.

November 6: We provided a chart visually showing positive money rotation into risk assets and out of defensive positions during October and early November.

November 11: We discussed the rally and what to expect going forward. We highlighted improvements in global markets and how that could provide support to our market going forward. Lastly, we talked about how markets are forward looking and how that coincides with the performance we saw in 2018 and this year.

What’s happening now? As of today, 92% of companies have reported earnings. Of those, 75% have beaten estimates and 60% have reported positive sales surprises. Year-over-year earnings growth is 9%. The 10-year Treasury is at 1.81%, up from 1.55% at the beginning of September. The spread between the 10-year and 2-year Treasury has increased 20 basis points during that time. These fundamental data points are what matters and is what is driving the rally we are currently seeing in equity markets. It is also what dictated our decision to reallocate to more bullish conditions on October 18, when price improved. Since then the market has rallied almost 5%. While price had not officially broken out on October 18, things underneath the hood were getting better. Things that matter like interest rate spread and earnings. Those factors increased the chances that the improvement in price was meaningful and that

Abhi Golhar, Business Consulting Leader and Host of The Abhi Golhar Show joins Ford on The Active Wealth Show to encourage business owners, pre-retirees and retirees to not be scared of money. Here’s a little sample of what Abhi said on the show and during the breaks of The Active Wealth Show, “You must not be scared of money, you must invest. Change is the only thing that is constant. If you are only investing into a Bank CD or sticking your hard-earned money under your mattress, then you are missing significant opportunities. Also, most business owners are literally giving up the chance to open a SEP IRA which allows them to save up to $56,000/year and grow their money tax-deferred. It’s just too good of an opportunity to pass up. Please, please, please don’t be scared to save and invest. Work with advisors like Ford Stokes and Active Wealth Management to protect and grow your wealth. Don’t just depend on a successful exit when you sell your business, you will likely need more capital than that to fund your 30+ year retirement.” We always appreciate Abhi appearing on The Active Wealth Show. If you are a business owner and you want to protect and grow your hard-earned wealth, then we invite you to call our office at 770-685-1777.

Ford shares three primary ways that Pre-Retirees, Retirees and Business Owners invest. We invite you to listen to this important show to determine the best two ways you think you should invest your hard-earned money. You will get real metrics to help you choose your methods for investing.

Not In the Market (Smart Safe) 2. In the Market Passive (Buy and Hold) 3. In the Market Tactical (Smart Risk)

Here’s a Hint: Buy and Hold Investing May Not Be Right For you.

If you want to build an incredible legacy with your family, then I invite you to consider a Beneficiary Liquidity Plan offered by our firm. A BLP enables the investor to pass $5,000 up to $100,000 to their Heirs TAX-FREE within 24-48 hours of their passing without a death certificate. Ford interviews, Phil Graham, the leader of our Legacy Planning Team. Phil has been in the financial industry for over 22 years. Phil created the concept of a Beneficiary Liquidity Plan to serve US families and improve the legacies of clients around the country!

The money an investor invests into a BLP in is not subject to market risk and the principal grows at CD/Money Market Rates until it is distributed to the investor’s beneficiaries when they pass away. We know of no other asset where an investor can pass money to their children without a Death Certificate.

Your Loved Ones Can Focus on Celebrating Your Life When You Get a Beneficiary Liquidity Plan! Give Your Beneficiaries Funds within 24-48 of When You Go To Heaven TAX-FREE without a Death Certificate! #BuildALegacy #BLP #NoDeathCertificate #BenificiaryLquidityPlan

Imagine when you go to Heaven that you are able to give your family immediate funds to pay for your funeral, traveling costs to attend your funeral, improvements to your home to get it ready to sell before the estate process has even begun. Your children and family members will consider your planning to be remarkable and considerate. You will improve future Thanksgivings and Christmas’s. If you can help the family avoid bickering and negotiation over your funeral costs and plans while giving them enough money to cover all of the costs of your funeral, then you will fortify your legacy within your family. They will think you thought of everything. You will solidify their memory of you because you made sure that they didn’t have to go into their pocket to cover your funeral costs.

To learn how you can successfully build your legacy with your family, feel free to call Ford Stokes, your Chief Financial Advisor, in our office at 770-685-0194 or send him an email at [email protected].

The Beneficiary Liquidity Plan is offered by the licensed Advisors with Active Wealth Management to give you the opportunity to pass immediate funds to your heirs without a death certificate within 24-48 hours of your passing.

#BLP #BeneficiaryLiquidityPlan #NoDeathCertificateRequired #ActiveWealth

Ford shares SIX important questions you need to answer honestly for your retirement on Episode 12 of The Active Wealth Show. Photo by Arisa Chattasa on Unsplash

We encourage you and your spouse to honestly answer these SIX important questions to properly plan for your retirement. Don’t you think you should throughly plan your retirement? We call this SUCCESSFUL OUTCOME BASED RETIREMENT PLANNING!

#1: How much income will you need to stay retired? –If you retired today, how much income do you need to support your current (or desired) lifestyle?

#2: How much market volatility risk are you willing to take? –Are you willing to let the market dictate your income or do you want to have a minimum guarantee?

#3

How will you plan for taxes, inflation and interest rates?

–How

can you structure your plan to make sure you have enough income in the future

if rates or inflation rise?

#4 How much liquidity do you need in case of an emergency? –How much do you need in readily available accounts to make sure you are prepared for unexpected costs?

#5

How will you protect your spouse and loved ones?

–Who

do you want to inherit any remaining assets and how can you clearly define your

final directives?

#6 What steps do you need to take to get started? –Who is involved in the decision making process and who will review progress to make sure your plan is still on track?

To thoroughly answer these questions metrically, feel free to call our office at 770-685-1777 to schedule your FREE, FINANCIAL CONSULTATION or book your appointment directly into MY CALENDAR.

We are ready to help you prepare properly for a successful retirement!

Listen to Episode 10 to Learn How Tactical Asset Allocation Can Protect and Grow Your Wealth

Don’t just hang in there with your investment, investing in a Tactically Managed Portfolio can provide downside protection and above average (Benchmark) growth of your wealth.

Ford shares important details about Tactical Asset Allocation and how it can help provide some downside protection and improve the overall performance of your portfolio over your 30+ year retirement! #TacticalAssetAllocation #Investing #Retirement #RothIRA

Sherry Kranick with Berkshire Hathaway joins The Active Wealth Show and talks Downsizing Tips during retirement. Marc Lauffenburger details how people can plan for their Child’s College and their own retirement with the same tax-advantaged product. You can reach Sherry on her mobile at: 404.277.8269 or via email at [email protected]. You can reach Marc Lauffenburger by calling our office at (770) 685-1777.

Diana Stokes joins Ford on The Active Wealth Show this week to share important Medicare Enrollment and Comparison Schedule Information that can save you money with your healthcare after you turn 65!

Medicare 101

Welcome to The Active Wealth Show, ACTIVATORS! And for those of you listening to our show for the first time, an Activator is someone who is taking the appropriate steps to invest and retire successfully. They want a Tax-Efficient, Fee-Efficient and Market Efficient Portfolio. My Wife, Diana Stokes, handles Medicare Supplement Insurance Planning for our office and I am thrilled to welcome her to our show! We’re glad you are here with us Diana. Please share with our listeners your Medicare 101 that you share with folks when they meet with you for the first time.

Diana Stokes: One of the most frequent questions I get asked is when do I sign up for Medicare?

There are 3 enrollment periods

1.   Most people enroll around their 65th birthday.  You can enroll during the 3 months before your birth month, the month of your birth and 3 months after that month giving you a 7-month initial enrollment period.  Depending on when you enroll, coverage can start as early as the month of your 65th birthday.

2.   If you miss your Initial Enrollment, you can sign up every year between January 1st and March 31.  If you enroll at that time, your coverage is effective July 1st of that year.

3.   Under certain circumstances, you may be eligible for a special Enrollment Period.  If you have questions about that, you can set up a time to come in and speak with us.

*If you are still working and covered under employee group insurance you can either enroll in Medicare and drop your group coverage or you may be able to delay enrollment and stay with your employee program.  You need to compare your plan at work side by side with your Medicare coverage and decide which is better for you. Before deciding to leave your employer plan, always discuss all of your options with your benefits administrator, insurer, or plan provider. In most cases once you leave, you cannot return to the employer plan.

And how do I sign up for Medicare?

1.  If you are collecting Social Security the enrollment in Medicare is Automatic and your card will arrive in the mail 3 or 4 months before your 65th birthday

2 If you are NOT collecting SS. You can sign up 100 days before your birthday month!

A. You can call social security to schedule an appointment

B. Or you can go online to medicare.gov

C. Once you have signed up for A & B ; you are eligible to sign up for Medicare Part C which we will talk about later.  And this is where we can help you the most.

There are 3 types of medicare

Part A – this covers hospital care; First 60 days of hospital are covered at 100% and first 20 Days of skilled nursing is covered at 100%; there is a $1364 deductible per occurrence

Most people are eligible for part A at no cost if they or their spouse has worked in the past

Part B – This covers medical services outside the hospital like doctors visits, x-rays, emergency room and lab work

Medicare pays 80% and you are responsible for the other 20%.  And there is a $185 annual deductible for Part B if you and your spouses’ joint income is less than $170,000 a year.  If your joint income is higher, unfortunately the part B deductible will be higher as well. For example.  A joint income over $267,000 increases the part B deductible to $352.20/year

It is very important to note there is a penalty for delaying part B. The only reason you should delay taking part B is if you or your spouse is still working and you and your spouse are covered until a group health plan.  In this case, you may delay Part B but you must notify Medicare that you will be delaying it and show proof of covera

These FIVE FINANCIAL HEADWINDS can negatively impact your chances at a successful retirement, Ford shares THREE SOLUTIONS that will help! (SEE VIDEO OF THE ENTIRE SHOW BELOW)

Ford Shares FIVE FINANCIAL HEADWINDS that you will likely face during retirement and offers THREE SOLUTIONS you should consider for a successful retirement! (SEE THE VIDEO OF THE ENTIRE SHOW BELOW)

RMD’s Creating Downward Pressure on US Markets over the next 20-30 Years $22Trillion in US Debt Low CD/Money Market Rates Rising Financial Services Fees Potential Bond Bubble?

Three Solutions:

ROTH LADDER CONVERSION to eliminate Tax RiskMaximize Your Social Security IncomeConsider a Bond Replacement Strategy to reduce advisory fees, protect your principal even further than investing in bonds and also generate important retirement income.

To get our FREE FIVE FINANCIAL HEADWINDS REPORT, feel free to send Ford an email at [email protected] or call our office at (770) 685-1777.

Ford shares FIVE FINANCIAL HEADWINDS that could affect your retirement. He also details THREE SOLUTIONS to help you achieve a SUCCESSFUL RETIREMENT!