Kelly Financial: Saturday, April 12, 2025

Episode Transcript

Speaker 1 (00:12):
Is going to us.

Speaker 2 (00:14):
So good morning, dear Boston. I'm John Budrus and Kelly
Financial Safe Money Strategies indeed carries on every Saturday morning
right here on WRKO six point eighty on the AM
dial and online from just about anywhere. And we are

(00:36):
in our twentieth year. Two decades. Remember being a young
man thinking two decades, twenty years. It seems like it's
so far into the future, but time just goes so fast.
We have a lot on the show today, as we
do all the time. One of the things that I'm
going to be discussing with missus Kelly would be, let's
call it the good, the bad, and the ugly of annuities.

(00:59):
It's a tool, nothing more, nothing less, and using that
tool in the right way is no different than using
any tool in your workshop. Use it correctly and it
will serve you. Use it incorrectly not so much. We'll
also be hearing, of course from the advisors at Kelly Financial,
and I believe young William Kelly, who is not so

(01:19):
young anymore, will be popping in for a little chat.
So stay with us and we will be right back
on this lovely spring weekend where it just seems to
never stop rating. Okay, see you on the other side
of this short break.

Speaker 3 (01:38):
Safe Money Strategies with John Boudrus and Kelly Kelly called
Kelly Financial on eight eight eight hundred eighteen eighty one.
We'll go to Kellyfinancial dot org.

Speaker 4 (01:51):
I'm Kelly Kelly from Kelly Financial. Retirement is a time
to enjoy the fruits of your labor, but is also
a period when financial stick ability becomes more critical than ever,
so seeking expert financial advice is essential regardless of your age.
Professional guidance insureds your assets are allocated wisely, helping your

(02:12):
money last as long as you need it. The advisors
at Kelly Financial will help you take charge of your
financial future and preserve your hard earned wealth to enable
you to focus on the retirement you've dreamed of. We
have a free investor guide called designing your Fiscal House
to Weather the Elements, which highlights the steps needed to

(02:33):
build a balance portfolio. For the guide and a free
consultation with a Kelly advisor, call eight eight eight eight
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
We're Kelly Financial. Come retire with us.

Speaker 3 (02:50):
Save Money Strategies Call eight eight eight eight hundred eighteen
eighty one, or visit Kellyfinancial dot org.

Speaker 1 (03:00):
Rettia with us.

Speaker 4 (03:04):
Good morning, dear friends and dear listeners. I'm Kelly Kelly,
and welcome to our show on this fine Saturday morning.
I'm here with my handsome son, William Kelly Junior, as
we chat every Saturday morning. Good morning William, Good morning Mom.

Speaker 1 (03:20):
How are you.

Speaker 4 (03:21):
I'm doing great.

Speaker 5 (03:22):
I have a powerlifting meet tomorrow. I had a very
eventful week. I was able to attend my wrestling coach's
Hall of Fame induction in Norwood, and that was a
very spectacular moment. It was an honor to be invited,
and it was an honor to watch the coach who
impacted my life so incredibly much receive an award that

(03:43):
quite frankly, he undeniably deserves without question, and he has
earned that medal.

Speaker 1 (03:50):
Really, it's a plaque. He's earned that plaque.

Speaker 5 (03:53):
He has earned the title for countless years of service
for other high school kids and wrestlers and as a
coach and as an amazing referee. And he got me
started into coaching. And if it wasn't for him, I
wouldn't be able to have the ability to coach. I
wouldn't have been involved in wrestling, probably quite to the

(04:13):
degree that other you know, no shade to any other
wrestling coaches. And maybe it's a bias because he's my
wrestling coach, and you know, it's like you think your
wrestling coach is superior to all others. But he really
has an amazing track record. If it wasn't for him,
I don't think i'd be so into wrestling as much
as I would or am.

Speaker 1 (04:31):
I wouldn't have been coaching youth wrestling.

Speaker 4 (04:33):
Well, I feel like he connected with you, and this
sense of discipline like emerged from you.

Speaker 1 (04:43):
I've never had it a few.

Speaker 4 (04:44):
Years ago, and it was quite amazing to watch you grow.

Speaker 1 (04:50):
Funny thing.

Speaker 5 (04:50):
He sent me a voicemail a couple of days ago
and he wanted to thank me for going, and he said,
I appreciate you letting me have a part in your life,
having some influence over your life in the direction your
life is headed. And so he just quickly said, I
appreciate it. Congratulations, coach Mike. You've earned it. You've earned

(05:12):
all your titles, and myself and everybody else from Portsa
Abbey commends you and We're so happy. Good luck with
the future seasons. I know that we are a tough
bunch of people whenever you have to coach, so.

Speaker 4 (05:25):
The parents appreciate him as well.

Speaker 5 (05:29):
Good Well, back to the powerlifting meet. Tomorrow is the
big day. Today is way in day. I will be
determining my weight class. I'll be determining what category I'll
be competing in. I'll be competing in two categories, the
open category and the junior category. My goal is to
set Rhode Island records, state records for the bench press, deadlift,

(05:49):
and squat.

Speaker 1 (05:50):
So my goal is all my opening lifts are.

Speaker 5 (05:54):
State record placers, but I also want to beat my
own personal records at the meet. Tomorrow's the big day.
Your birthday is coming up in a little bit. Happy birthday.
This is an early birthday gift this day.

Speaker 4 (06:05):
Thank you, William.

Speaker 1 (06:07):
I'm sorry that this is what you get right now, but.

Speaker 4 (06:10):
You know what, just being with you and being with
Mary Magdalene is special.

Speaker 5 (06:15):
Well, don't worry because Mary Madaline and I have a
lot more planned.

Speaker 4 (06:18):
Oh we had fun last weekend celebrating her birthday and
you actually did both.

Speaker 5 (06:24):
Yes.

Speaker 4 (06:25):
Hey, you are a good brother and you attended her
birthday dinner earlier and then drove to Massachusetts for the
Hall of Fame event.

Speaker 5 (06:34):
Since it was in Providence, where we ate, the traffic
was about twenty minutes shorter than if we left home. Alfourno's,
Ladies and gentlemen, uh the best Italian food you could
ever eat in Providence.

Speaker 4 (06:47):
I want to wish everyone a wonderful rest of the
weekend and do keep us on your dial. In today's show,
Mike Ducett and Charlie Gable will discuss the potential rise
in a state tax is in twenty twenty six due
to the expiration of the twenty seventeen Tax Cuts and
Jobs Act. They'll explore how choices can shape your legacy

(07:10):
and your family's future. Mary, Madeline Kelly and Greg Murray
will discuss the pitfalls of cherry picking stocks. I will
return with John Boudras. We will discuss annuities, what they are,
whether you need one, and the nuts and bolts. We
will also have some wit and wisdom from Bill Kelly William.
Thank you for chatting with me this morning. I love you, honey,

(07:33):
I love you.

Speaker 5 (07:34):
Too, and I look forward to next week's show.

Speaker 3 (07:43):
Safe Money Strategies brought to you by Kelly Financial Services.
Call eight eight eight eight hundred eighteen eighty one or
go to Kelly Financial dot org.

Speaker 1 (07:55):
Come retire with us.

Speaker 6 (07:57):
Okay, my friends, let me tell you about Kelly Financial Services.
It's time now for a reality check. You think you're
going to retire at sixty five, Maybe play some golf,
spoil those grandkids, do a little traveling, kickback and not
worry about money again. But many retirees have these dreams
dash because they didn't plan, and the realities of life

(08:19):
comes crashing down. Inflation isn't going away, social Security is
looking shaky, healthcare costs are rising, and what about your
nest egg that has to last twenty, maybe even thirty
years in an uncertain world. That's why you need a plan.
That's why you need Kelly Financial. They're hosting a master

(08:40):
class on one of the most misunderstood tools in retirement, annuities.
It's called Annuities The Good, the Bad, and the Ugly,
and it's packed with straight talks, straight smart strategies, real solutions.
Classes are April twenty second and twenty fourth. To sign up,
call eighty eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org eight eighty eight hundred

(09:05):
eighteen eighty one or email Kelly at Kellyfinancial dot org.

Speaker 1 (09:13):
Good morning and welcome to the show.

Speaker 7 (09:15):
You are listening to Safe Money Strategies and my name
is Mike Ducett, Chief operating Officer at Kelly Financial.

Speaker 1 (09:21):
Accumulating wealth is no small feat.

Speaker 7 (09:24):
It often comes from years of hard work, smart decisions,
and sometimes sacrifices. But without careful planning, a significant portion
of this wealth could disappear to taxes, taxes that, with
the right foresight and strategy might be reduced or even
avoided altogether. Now, imagine the power to influence the fate
of your wealth even beyond your lifetime. Imagine ensuring it

(09:47):
benefits your loved ones or the causes and organizations you
all dare. Achieving this vision requires an effective estate plan.
In today's show, we'll dive into the choices you make
or neglect to make today and how they can and
shape your legacy and your family's future long after you're gone.

Speaker 8 (10:04):
Hey, good morning, this is Charlie Gable, investment advisor at
Kelly Financial. So state planning is like piecing together a
puzzle skip just one piece and the whole scene might
look different. It's not only about preserving the money you've
poured sweat and time into, but also about helping to
ensure your family's path forward. I know it sounds daunting,
but it's generally worth the effort. Need help, We're right here.

(10:25):
Bring us for a free no strings attached chat at
eight eight eight eight zero zero one A eight one,
or please dive into the rich resources we've got waiting
for you on our website at Kellyfinancial dot org. Let's
take that crucial first step together helping protect both your
future and theirs.

Speaker 7 (10:44):
Sorting out your state should be one of the areas
that our front and center in your retirement planning. In
a moment will explore some foundational principles to get you started.
But where do things really come alive Our personal consultations,
where not about one size fits all answers thrive on
tailoring strategies just for you.

Speaker 8 (11:03):
One of the more time sensitive blunders in estate planning
actually revolves around a ticking tax bomb, the scheduled increase
of estate taxes in twenty twenty six. At the heart
of this upcoming shift lies the expiration of provisions from
the twenty seventeen Tax Cuts and Jobs Act. Now the TCGA,
when introduced, significantly increased the estate tax exemption amounts, allowing

(11:26):
many individuals and families to transfer greater wealth without incurring
the federal estate tax for a limited number of years.
Those changes presented strategic advantages in estate planning, enabling a
more generous transfer of assets and reduced tax liability. However,
the catch with the TCJA is its temporary nature. Many

(11:47):
of its provisions, including the estate tax relief, are actually
set to expire at the end of this year. This
means that starting in twenty twenty six, unless Congress intervenes
with new legislation, the estate tax exemption will be revert
to pre twenty seventeen levels adjusted for inflation. So what's
the impact. Potentially millions more in a state taxes for

(12:08):
unsuspecting errors.

Speaker 7 (12:09):
For individuals and families hovering the exemption threshold, this rollback
could pose significance financial challenges. In addition, estate plans crafted
under the TCJA's guidelines might become quickly outdated, causing unintended
tax consequences. This serves as an important reminder that estate

(12:29):
planning is in a set it and forget it endeavor.
As tax landscapes shift and laws evolve, it's important to
revisit and potentially revise estate plans to help ensure they
remain tax efficient and aligned with one's legacy.

Speaker 8 (12:43):
Vision and understanding the intricacies of tax codes can be
important in a state planning, particularly when it comes to
the step up basis. But what is this concept and
why is it such a vital component in a state
strategy planning? At its core, the step up basis is
a provision in the tax code that adjusts the value
of an inherited asset, say real estate or stocks, to

(13:06):
its market value at the time of the original owner's death.
This step up can substantially reduce the capital gains tax
liability for errors if and when they decide to sell
the inherited asset.

Speaker 7 (13:17):
Let's paint a picture. Imagine an individual who owns a
piece of real estate that has significantly appreciated over the decades.
Recognizing the challenges of dividing a physical asset among three children,
he considers selling the property with the intention of distributing
the proceeds as an inheritance. On the surface, converting real
estate to cash may appear as a streamlined solution to

(13:40):
help ensure each air gets an equal share. However, selling
a highly appreciated asset during one's lifetime triggers capital gains
tax on the difference between the original purchase price and
the selling price. This means that the errors would inherit
only the after tax amount, potentially losing out on a
significant sum.

Speaker 8 (14:00):
So let's consider an alternative. If an individual holds onto
the real estate until they're passing, the property benefits from
the step up basis, their children would inherit the asset
at its stepped up market value, which helps to minimize
capital gains tax if they decide to sell now. Depending
on the appreciation and potential tax liabilities, this could translate

(14:20):
to tens or even hundreds of thousands of dollars in
save taxes, ensuring the children receive a larger portion of
their intended inheritance.

Speaker 7 (14:29):
Falling into traps like this is all too common when
retirement planning operates in a silo detached from an estate
planning strategy. Coordinating both areas is essential, as decisions in
one can greatly affect the other. By understanding provisions like
the step up basis and integrating retirement in estate plans,
individuals can optimize their financial legacy, helping to ensure that

(14:51):
their loved ones benefit from every possible advantage. Kelly, what
about the tax consequences of leaving an IRA to beneficiary?

Speaker 8 (15:00):
So, I'd say tax deferral has been a cornerstone piece
of advice in retirement planning for years, and rightfully so.
By deferring taxes on assets, individuals can harness the power
of compound growth, allowing their wealth to accumulate faster. Now,
as a result, many retirees find themselves with substantial balances
in their four one ks or an I ray or
other types of tax deferred retirement plans. Now, while these

(15:22):
nest eggs are celebratory evidence of prior planning, they can
also morph into potential pitfalls if they grow beyond what's
required for one's retirement lifestyle.

Speaker 7 (15:32):
When retire is a positioned with account balance, is that
fower exceed their lifetime spending needs, it's important to pivot
and consider the tax implications for the airs. Essentially, what
seems like a generous inheritance might actually come tethered with
significant tax liabilities.

Speaker 8 (15:47):
And historically this wasn't as problematic as it is now.
Earlier provisions allowed surviving spouses as well as non spouse
beneficiaries to actually stretch the taxable distributions of those inherited
I across their own lifetimes. This stretch ira approach not
only spaced out tax liability, but also permitted beneficiaries to

(16:07):
enjoy those sustained benefits of tax deferred growth on portions
of their inheritances. Now, however, the landscape shifted with the
introduction of the Secure Act and its subsequent iteration the
Secure Act two point zero. Under these new regulations, most
non spouse beneficiaries are now required to withdraw the entirety
of the inherited accounts balance within a decade, So this

(16:29):
ten year rule essentially condenses the timeline for tax liability,
potentially bumping beneficiaries into higher tax brackets during that time.

Speaker 7 (16:37):
While this might sound like a maze of tax complications,
it underscores the necessity of forward looking estate planning. Navigating
these nuances and regulations requires experience. Working closely with the
knowledgeable attorney and financial advisor helps ensure that your legacy
intentions remain intact and your heirs receive the full value
of your generosity. Untangled from unexpected to tix burdens. Charlie

(17:01):
and I need to take a quick break, but we'll
be back later in the show to continue our conversation.

Speaker 3 (17:07):
Kelly Financial Services A eight eight hundred eighteen eighty one.

Speaker 2 (17:13):
Ready to enjoy your golden years without worry. At Kelly Financial,
we know retirement planning can be overwhelming. With more than
twenty one years of experience, our friendly team of advisors
makes it easy and stress free. Trust us to help
you create a secure and enjoyable future. For a free
initial retirement consultation called eight eight eight eight hundred eighteen

(17:36):
eighty one or email Kelly at Kellyfinancial dot org. We're
Kelly Financial. Come retire with us.

Speaker 4 (17:43):
I'm Kelly Kelly from Kelly Financial. Join us for a
free master's class on April twenty second or April twenty
fourth called Annuities, The Good, the Bad, and the Ugly,
where we'll break down was good, was not and the
must knows. Annuities can provide guaranteed income and security, but
they're not for everyone. Seats are limited. To reserve yours

(18:04):
call eight eight eight eight hundred and eighteen eighty one
or email Kelly at Kellyfinancial dot Org. We're Kelly Financial.
Come retire with us.

Speaker 3 (18:14):
The Money Rack with Kelly Financial Advisors Greig Murray and
Mary Madeline Kelly.

Speaker 1 (18:20):
Good morning.

Speaker 9 (18:20):
This is Greg Murray, senior vice president and chief Compliance
Officer at Kelly Financial Services. Joining me today is Mary
Madeline Kelly, one of our wealth advisors. How are you
doing today?

Speaker 10 (18:30):
I am doing great. Thank you for asking. I actually
celebrated the Big two eight recently, and I can tell
already that this is going to be a very good year.
My brother has been enjoying reminding me of how close
I am to thirty. But hey, I heard your thirties
are even better than your twenties, so I am okay
with that. How about you, Greg, how are.

Speaker 4 (18:49):
You doing today?

Speaker 9 (18:49):
Not as good as you as you near your thirties.
That means I'm near my forties, and well, I'm a
lot closer to forty than you are to thirty. Other
than that, I'm doing pretty good, trying to stay positive
during these at all times.

Speaker 10 (19:01):
Well, that actually brings me to another big topic that
we see all too often, cherry picking stocks.

Speaker 9 (19:06):
Absolutely, this is something that comes up all the time.
People hear about a stock that's down, maybe Tesla took
a dip, or they see a company they like like Newsmacs,
and they think, hey, this could be my golden ticket.

Speaker 10 (19:18):
Right, And that's the problem. Buying stocks like that without
a plan is like throwing darts at a dartboard and
just hoping for the best. Sometimes you hit the bullseye,
but most of the time you don't.

Speaker 1 (19:28):
Exactly.

Speaker 9 (19:29):
As financial planners, we don't believe in gambling with retirement funds.
Our job is to helped create a solid plan that
works for them, not just chase the next hot stock.
The goal isn't to strike it rich overnight, is to
build long term financial security.

Speaker 10 (19:42):
And let's be real, if it were that easy to
get rich picking stocks, everyone would be doing it successfully.
But the truth is most individual investors underperform the market
when they try to time things or make emotional decisions.

Speaker 9 (19:55):
So what should people do instead, Well, they need a
well structured plan, a diversified portfolio that aligns with the
risk tolerance, time align and retirement goals.

Speaker 1 (20:04):
That's the approach that actually.

Speaker 10 (20:05):
Works, And let's talk about why diversification is so important.
Instead of putting all your money into one or two stocks,
spreading your investments across different asset classes stocks, bonds, real estates,
and more. That will help you reduce risk and smooth
out volatility.

Speaker 9 (20:21):
And this is especially important for retirement accounts. The goal
isn't just to grow your money, but to make sure
it lasts through retirement. If you bet big on a
few stocks and they don't perform well, you could lose
a significant portion of your savings. That's why we stress
having a solid foundation first.

Speaker 10 (20:36):
And we also get it people want to have some
fun with their money, and they may feel strongly about
certain companies. That's where we recommend making small investments, which
minimize the amount of risk you're taking.

Speaker 9 (20:47):
If you want to pick a few individual stocks because
you believe in them or just want to try your luck,
then let's do it. Think of it as your play money,
not something you rely on for retirement.

Speaker 1 (20:56):
Exactly.

Speaker 10 (20:57):
We tell clients all the time, if you want to
invest in something speculative, go for it, but do it
with your money that you can afford to lose. Maybe
you allocate five percent of your overall portfolio to speculative positions.
That way, if it works out, great, but if it doesn't,
it won't derail your financial future.

Speaker 9 (21:15):
That's a great point, and let's also talk about the
emotional side of investing. People tend to get emotionally attached
to certain stocks. Maybe it's a brand they love, a
company they believe in, or just a gut feeling. But
emotions shouldn't drive investment decisions right.

Speaker 10 (21:28):
The best investors keep their emotions in check and stick
to a discipline strategy. That's why working with a financial
planner can help you get an objective perspective that helps
you stay on track even when the market gets turbulent.

Speaker 9 (21:40):
So let's summarize cherry Picking stocks is risky and most
people don't do well with it over the long term.
A'll solveid retirement plan is built on diversification, discipline, and strategy,
not chasing the latest stock trend.

Speaker 10 (21:52):
If you do want to pick stocks, do it within reason,
Do not make large bets. Have fun, but don't risk
your retirement security.

Speaker 9 (21:59):
Ones or headlines couldn't have set it better myself, Stick
to a plan, build well, responsibly, and avoid the dark border.

Speaker 10 (22:06):
Perch well, Greg, thank you for your expertise as always,
and I hope you have a fabulous weekend.

Speaker 3 (22:12):
You two Mary Madeline to get in touch with Greg
Murray or Mary Madeleine Kelly or any member of the
Kelly Financial team. Call eight eight eight hundred eighteen eighty one.

Speaker 4 (22:26):
Hi, I'm Kelly Kelly from Kelly Financial Services. What do
you look for when choosing a financial advisor? We like
to believe is based on shared values, trust and knowledge.
We've been serving clients in the Greater Boston area for
more than twenty years now. If you have investable assets
and want to learn more about our experience, call us
eight eight eight eight hundred eighteen eighty one or email

(22:48):
Kelly at Kellyfinancial dot org to set up a free
retirement consultation. We're Kelly Financial. Come Retire with.

Speaker 1 (22:55):
Us by a book.

Speaker 2 (23:00):
That was one small step for Neil Armstrong, but when
it comes to your financial future, it's a giant leap.
Achieving your desired retirement isn't a leap. It requires good planning,
one step at a time. Let Kelly Financial help you
take those crucial first steps today. To get started, call
eight eight eight eight hundred eighteen eighty one or visit

(23:21):
Kellyfinancial dot org. We're Kelly Financial. Come Retire with Us.

Speaker 3 (23:26):
Safe money strategies with John Budris and Kelly Kelly call
the team on a eight eight hundred eighteen eighty one.

Speaker 2 (23:35):
Care and we're back. I'm John Budris, the co host
of Safe Money Strategies and is always thanks for joining
us this Saturday morning, as you've been doing. Now are
you ready for twenty years? Well, for many retirees, annuities
offer something rare in today's financial landscape, and that's Garren

(24:00):
Teed income for life. With markets being up and down
sometimes like a roller coaster. If you look at this week,
with inflation rising and with our longer lifespans, annuities can
deliver that steady stream of income almost like your own
personal pension. And many people look at it that way,

(24:22):
as if you're vesting your own pension and these can
cover your essential expenses without the worry of outliving your savings.
But the question of the day, how do you choose
the right annuity? What questions should you be asking of
your financial advisor and what features matter and which ones

(24:42):
are just fluff? So today we're diving into the how
to guide every retire should know before signing on the
dotted line for that annuity, if at all. And with
me is Kelly Kelly CEO of Kelly Financial, the firm
that's been helping hardworking Americans in the Boston area retire

(25:04):
with confidence now for twenty two years. Kelly, Welcome back.

Speaker 4 (25:09):
Good morning John. Always great to be here with you
and our listeners.

Speaker 2 (25:14):
Kelly, A lot of folks have heard that annuities can
provide lifetime income, but many still aren't sure how they'll
fit into the bigger retirement picture that they're trying to develop.
So can you help us break that down?

Speaker 4 (25:30):
Absolutely, annuities are one of the most misunderstood financial tools
out there, but they can play a key role in
retirement income, especially for those looking for guaranteed sources of income.

Speaker 2 (25:46):
So let's start at the beginning again. Let's just define
what is an annuity, and.

Speaker 4 (25:52):
It's simplest and annuity is a contract with an insurance company.
You give them a sum of my either all at
once or over time, and in return, they agree to
make income payments to you, either immediately or later on.
Think of it like creating your own pension. You're exchanging

(26:16):
a lump sum for a guaranteed stream of income, often
for life.

Speaker 2 (26:22):
That sounds good in theory, but as always, the devil
is in the details right. So what types of annuities
are out there?

Speaker 4 (26:31):
Good point, John. There are several types, and it's important
to know the difference. And immediate annuity starts paying income
right away, perfect for someone already retired. A deferred annuity
allows money to grow tax deferred until you're ready to
start drawing income in the future. Fixed annuities offer guaranteed

(26:56):
interest rates and predictable income with no market risk. Fixed
index annuities, also known as fias, are tied to a
market index like the S and P five hundred. You
get some of the upside potential without the downside risk.

(27:17):
There's usually a cap on how much you can earn
in a good year, but you don't lose money and
a bad one. Then there are variable annuities, which are
more like mutual funds inside an insurance wrapper. They offer
growth potential, but with more market exposure, more risk, and

(27:39):
usually more fees.

Speaker 2 (27:41):
And that's where people sometimes get burned, right, high fees,
confusing riders, and hidden costs exactly.

Speaker 4 (27:49):
Some variable annuities can cost three to four percent a year.
There can also be surrender charges if you withdraw money early.
Some are worth the cost, like guaranteed income writers but
others add little value. That's why it's critical to understand
what you're buying and how it fits into your overall

(28:13):
retirement plan.

Speaker 2 (28:14):
So it's not that annuities are good or bad. It's
all about context.

Speaker 11 (28:20):
Right.

Speaker 4 (28:20):
When used correctly, annuities can be a powerful tool for
lifetime income, market protection, or even legacy planning, but they
should complement a broader financial strategy, not replace it.

Speaker 2 (28:35):
So here's a question we hear a lot. What's the
difference between an annuity and life insurance?

Speaker 4 (28:42):
Great question. Both are contracts with insurance companies, but they
serve opposite purposes. Life insurance protects your loved ones after
you pass away. Annuities are designed to provide income while
you're still alive. I like to say annuities are like

(29:02):
life insurance in reverse. Instead of protecting others from your death,
they protect you from outliving your money.

Speaker 2 (29:11):
I love that way of looking at it. So let's
say someone listening is five years away from retirement. How
do they know if an annuity is right for them?

Speaker 4 (29:20):
Here's a simple rule of thumb. If your social Security
and any pension income won't cover your basic living expenses
in retirement, and you want guaranteed income you can't outlive,
an annuity might make sense. On the other hand, if
you have a large nest egg, low expenses, and you're

(29:44):
comfortable with market ups and downs, maybe not. It really
comes down to your goals, your income gaps, and your
tolerance for risk. That's why we offer a complementary retirement
income analysis. At Financial we help clients evaluate their options.

(30:05):
If an annuity makes sense, we'll explain it. If it
does not, we'll say so no pressure.

Speaker 2 (30:11):
I can vouch for that. Your team has always been
generous with time and advice. They're good listeners, and you
keep it simple, especially you.

Speaker 4 (30:20):
Thank you, John. That means a lot.

Speaker 2 (30:22):
Now I know you also have a few resources available
for folks who want to dig in a little deeper.

Speaker 4 (30:29):
And we do. First, our free investor guide, the ABC's
of Protected Retirement Income, is a great place to start.
It breaks down fixed index annuities, how they work, what
they cost, and whether they're a good fit. And coming up,

(30:49):
we're hosting a special master's class called Annuities, The Good,
the Bad, and the Ugly. That's happening Tuesday, April twenty
second and again on Thursday, April twenty fourth, We'll cover
everything we've discussed today and more, but space is limited,

(31:09):
so we encourage listeners to call and reserve their spot.

Speaker 2 (31:14):
That sounds fantastic. To sign up for the class, get
the free guide, or book a complimentary appointment with the
Kelly Financial Advisor, just call eight eight eight eight hundred
eighteen eighty one or email Kelly at Kellyfinancial dot org.
That's it for now. All the time we have it
goes so fast, but stay with us, and when we

(31:34):
come back, we'll talk about how annuities can work with
workplace retirement plans and how to handle withdrawals and inflation.
You're listening to Save Money Strategies right here on WRKO
and streaming on the iHeart app. And we've been on
the air twenty years, two decades. My ma, how the

(31:55):
time flies. But believe me, we're just getting started. We'll
be right back.

Speaker 3 (32:02):
Safe Money Strategies brought to you by Kelly Financial Services.
Call eight eight eight eight hundred eighteen eighty one or
visit Kellyfinancial dot org.

Speaker 4 (32:13):
I'm Kelly Kelly from Kelly Financial. Join us for a
free master's class on April twenty second or April twenty fourth,
called annuities, the good, the bad, and the ugly, where
we'll break down what was good, was not and the
must knows. Annuities can provide guaranteed income and security, but
they're not for everyone. Seats are limited. To reserve yours,

(32:34):
call eight eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org. We're Kelly Financial. Come
retire with.

Speaker 1 (32:42):
US Safe Money Strategies.

Speaker 4 (32:46):
I'm Kelly Kelly from Kelly Financial. If you're considering fixed
index annuities, we have a free investor guide that might
help you make a more informed decision. Is called the
ABC's of Fixed Index Annuities and outlines their benefits and limitations.
For the guide or for a free consultation with one
of our advisors, call eight eight eight eight hundred eighteen

(33:08):
eighty one or email Kelly at Kellyfinancial dot org. We're
Kelly Financial. Come retire with us.

Speaker 3 (33:16):
Safe Money Strategies eight eight eight hundred one eight eight one.
Come retire with us.

Speaker 2 (33:24):
Thank and we are back. I'm John Budriss, co host
of Safe Money Strategies, and as always, thanks for spending
your Saturday mornings with us. Today we're going to be
diving into the nuts and bolts of annuities. If you're
nearing retirement or already there, this is a must listen.

(33:47):
Now you may be wondering, what are annuities really, how
do they work? Can they actually provide the guaranteed income
that I'm counting on? Well, whether you've heard that an
annuity is a retirement silver bullet or a potential trap,
We're going to break that all down, the pros, the
cons and what you should know because, like any tool,

(34:12):
using that tool appropriately is what makes it count and
what makes it work for you. And an annuity is
no different than a chainsaw. You just have to use
it in the right way. So joining me this morning
is Kelly Kelly, CEO of Kelly Financial, and she's here
to walk us through the facts, not the fables, but

(34:32):
the fact so you can decide what's right for you
for your future. Good morning, Kelly, and welcome back.

Speaker 4 (34:40):
Good morning John. Great to be with you again.

Speaker 2 (34:43):
For those of you just tuning in, Kelly, can you
explain exactly what our annuities?

Speaker 4 (34:50):
Of course, annuities are contracts with insurance companies designed to
create income, especially important once you're regular paycheck stops. There
are different types of annuities, and some offer the potential
for growth without being directly exposed to the stock market.

Speaker 2 (35:11):
So annuities can offer predictability, something a lot of folks
are looking for in retirement. But let's get into the
nuts and bolts the actual details. Are there things to
watch out.

Speaker 4 (35:23):
For absolutely when shopping for an annuity. Be selective, don't
pay for features you won't use. Always ask about fees
and guarantees. No annuity is one size fits all, so
explore your options. Some annuities even include long term care

(35:44):
writers that provide benefits if you become chronically ill. Also
be sure to ask about new products. There are some
exciting newer options with lower fees, more flexibility, and stronger guarantees,
but not every firm offers them.

Speaker 2 (36:02):
Well, let's be specific. Earlier we talked about surrender periods.
That seems like something that could trip people up.

Speaker 4 (36:10):
It can. Most annuities come with a surrender period, usually
five to ten years. That means if you withdraw more
than ten percent per year, you could face penalties. So
if someone needs full access to their money soon, an
annuity might not be the right fit. But for long

(36:30):
term income planning, the surrender period usually isn't an issue.

Speaker 2 (36:36):
Got it? What about annuities in your four to oh
one K plans? Are we seeing more of that out there?

Speaker 4 (36:44):
Yes, more and more. The Secure Act made it easier
for four oh one K plans to include annuity options.
That means guaranteed lifetime income can now be built into
your workplace return plan. Is great for people without pensions.
Just be sure to understand what kind of annuity is

(37:07):
being offered. Some are simple and low cost, while others
are more complex and carry higher.

Speaker 2 (37:14):
Fees, and of course the big one, the big bomb inflation.
Our annuity is still a good idea in a high
inflation environment.

Speaker 4 (37:23):
And that's a very important concern. Traditional fixed annuities don't
adjust for inflation, so your purchasing power can shrink over time.
That said, some annuities offer inflation writers that increase payments annually.
Others are tied to market indexes, which can also help

(37:47):
grow your income. But these features come at a cost,
so you'll want to talk to your advisor about the
trade offs.

Speaker 2 (37:55):
All good to know. Let's now talk about the type
of annuity featured in your investor guide fixed index annuities.
What sets them apart from the others.

Speaker 4 (38:06):
Fixed index annuities, or fias are unique because they combine
the benefits of growth, potential and protection. Unlike traditional fixed annuities,
they pay a steady interest rate or variable annuities that
are directly invested in the market. Fias are tied to

(38:29):
a market index like the S and P five hundred.
If the market goes up, you share in the gains.
If it goes down, your principle is protected.

Speaker 2 (38:39):
But there's a cap on the gains.

Speaker 1 (38:41):
Is that right?

Speaker 4 (38:42):
Yes, there is a cap sets the maximum return you
can earn in a given period. That's how the insurance
company manages risks while still protecting your principle.

Speaker 2 (38:55):
I know many listeners wonder how their investors get paid,
so let's just clear this upright away.

Speaker 4 (39:02):
Absolutely, with fias, there's no upfront fee that comes out
of your pocket. The commission is built into the product
and paid by the insurance company, so clients are not
writing a separate check for advice. At Kelly Financial, we're
fully transparent about how we're compensated, and as fiduciaries, we

(39:26):
always put our client's retirement goals first.

Speaker 2 (39:30):
Thanks Kelly. Any final thoughts just.

Speaker 4 (39:33):
This retirement should feel like freedom, not fear. If you're
relying on hope or guesswork, it's time for a better strategy.
Annuities might be part of that plan, or maybe not,
but either way, don't go it alone.

Speaker 2 (39:51):
As always great advice, remember it's your money, your future,
and you're the one in the driver's seat. If folks
want more information, Kelly, what's the next step?

Speaker 4 (40:02):
Call Kelly Financial and speak with one of our advisors.
They'll explain how annuities could fit into your personal retirement strategy.
You can also request our free investor guide, the ABC's
of Protected Retirement Income. It's a six page resource that

(40:22):
explains the pros and cons of fixed index annuities and
helps you make an informed decision. And if folks are
just starting to explore options or have questions about an
annuity you already own, join us for our upcoming master's
class Annuities, the Good, the Bad, and the Ugly.

Speaker 2 (40:47):
Fantastic resources Kelly. To register for the class, get the guide,
or schedule your complementary consultation, call eight eight eight eight
hundred and eighteen eighty one or email Kelly at Kellyfinancial
dot org. That's all the time We have for this segment.
Thanks again for tuning in. You're listening to Safe Money

(41:08):
Strategies heard right here on WRKO and streaming on the
iHeart app. We're proud to be in our twentieth year.

Speaker 11 (41:16):
On the air.

Speaker 2 (41:17):
We just hit that milestone and we're just getting started.
We'll be back in just a flash.

Speaker 3 (41:25):
Safe Money Strategies with John Budris and Kelly Kelly Gold
Kelly Financial on eight eight eight hundred eighteen eighty one,
or go to Kelly Financial dot org. Come retire with us.

Speaker 2 (41:40):
You wake up, you go to work, you have lunch,
you go home, you take the dog for a walk,
then you go to bed. Your day and night routines
you do them without thinking. But do you ever think
about your retirement. The team at Kelly Financial has helped
clients plan for their retirement for twenty one years, and
that team knows retirement is no routine matter. Call eight

(42:03):
eight eight eight hundred eighteen eighty one. Go to Kelly
Financial dot org. We are Kelly Financial.

Speaker 3 (42:08):
Come retire with us Safe Money Strategies Cool eight eight
eight eight hundred eighteen eighty one. Well, go to Kelly
Financial dot org. Welcome back, you're listening to safe money strategies.
I Mike d said in joining me in the studio
is Charlie Gable. On today's episode, we're discussing some common
pitfalls of estate planning.

Speaker 1 (42:28):
Charlie. Next on the agenda is charitable giving. What should
our listeners be aware of?

Speaker 8 (42:32):
Well, the landscape was charitable giving and its intersection with
tax benefits has seen a substantial shift in recent years.
That twenty seventeen Tax Cuts and Jobs Act, for instance,
increased the standard deduction, pushing a significant number of taxpayers
into a position where itemizing those deductions no longer made
financial sense. So among this group were individuals steadfastly committed

(42:54):
to supporting causes close to their hearts, such as their
local church or a favorite charity.

Speaker 7 (42:58):
This legislative, of it substantially slashed the number of taxpayers
who itemized, and consequently the numbers benefiting from deductions tied
to charitable contributions. However, it's important to recognize that many donors,
driven by a genuine selfless act rather than tax breaks,
continue to their contributions undeterred. Enter the Donor Advised Fund

(43:20):
or DAF, a vehicle that can align a donor's charitable
intent with advantageous tax strategies. At its core, a DAF
is a philanthropic account sponsored by a public charity. Donors
contribute to the fund and receive an immediate tax deduction
for the gift. Over time, donors can then recommend grants

(43:41):
from the fund to their charity of choice.

Speaker 8 (43:44):
And here's how a DIF can magnify tax benefits. Imagine
a donor accustomed to gifting, say twelve thousand dollars annually
to a beloved charity. Instead of maintaining this yearly contribution,
the donor could opt to front load five years of contributions,
ultimately the positing sixty thousand dollars into that DAF in
a single year, and this move affords them a sizeable

(44:06):
sixty thousand dollars tax deduction in that year. From there,
the DAF can distribute the typical twelve thousand dollars to
the designated charity annually. Through strategies like these, donors not
only ensure that their charities continue to receive steady support,
but they also optimize their own tax positions and charitable
giving with the right planning can be both a gesture

(44:27):
of goodwill as well as an efficient financial move.

Speaker 7 (44:30):
Yeah, thanks for that example, Charlie. Many are aware that
gifting assets can be a generous and strategic way to
pass on wealth to the next generation, but an oversight
that's often missed is the utility of the annual gift exclusion.
By neglecting this opportunity, individuals may inadvertently miss out on
a tax advantage approach to gifting well.

Speaker 8 (44:50):
The annual gift exclusion is a provision within the US
tax code that does permit an individual to give a
specific amount to as many beneficiaries as they desire without
triggering any gift tax. So for twenty twenty five, this
exclusion amount is set at nineteen thousand dollars per beneficiary.
So let's dive a bit deeper into this. The notable

(45:11):
aspect here is the per beneficiary stipulation. For instance, if
you have three grandchildren, you could gift each one nineteen
thousand dollars, totaling fifty seven thousand dollars without encountering the
gift tax. And that's just from one individual. If you're married,
the scenario becomes even more favorable. Each spouse can make

(45:32):
these gifts, effectively doubling the total amount. So using the
same example, a couple could gift their three grandchildren a
combined total of over one hundred and fourteen thousand dollars
in a single year, all without invoking the gift tech.

Speaker 7 (45:45):
It's also worth highlighting that outright gifts to a grandchild
or more remote descendant up to the annual exclusion amount
are generally not only exempt from the gift tax, but
also from the generation skipping transfer tax or GST two.
This means that a grandparent could, for instance, provide financial
assistance for a grandchild's tuition or first home purchase without

(46:08):
any added tax penalties.

Speaker 8 (46:10):
Yet, as with most financial strategies, the key lies in
the details. To optimize the benefits of the annual gift
exclusion and to navigate potential pitfalls, it's paramount to consult
with a professional. This isn't just about avoiding taxes. It's
about thoughtful strategic wealth transfer that helps to ensure your
financial generosity has the desired impact without any unforeseen complications.

(46:35):
Working with a knowledgeable advisor can illuminate the nuances and
guide you towards decisions that align with your financial and
familial goals.

Speaker 7 (46:42):
As we wrap up today's show, I want to highlight
another reason why you stay planning matters. Think about how
our tax dollars are spent. Ever found yourself disagreeing with
the government's decisions. After all, that's your hard earned money
they're allocating. If you've ever felt a disconnect there, it
underscores the importance of proactive state plan. It ensures your
wealth stands for your beliefs and benefits those closest to you.

Speaker 8 (47:05):
Estate planning might seem like a complex puzzle, but its
importance can't be overstated. It's about more than just money.
It's about your legacy, your values, and helping ensure your
loved ones are taken care of. So don't navigate this
journey alone. Let us guide you through the intricacies. Give
us a call today to schedule your complimentary consultation at
eight eight eight eight hundred eighteen eighty one. We're here

(47:29):
to support and assist you every step of the way.
And with that, I'm Charlie Gable.

Speaker 7 (47:33):
And I Mike you said, tune in next week for
more safe money strategies.

Speaker 3 (47:38):
Kelly Financial Services go to Kelly Financial dot org.

Speaker 6 (47:45):
Joining us now as she always does at this time.
She is the co founder, CEO, president of Kelly financial
services and as I always say, yes, that is her
wonderful name, Kelly, Kelly, Kelly.

Speaker 4 (48:06):
How are you good morning, Jeff? I am good. Retirement
is the dream, right, travel, hobbies, more time with family.
But what if your savings do not stretch as far
as you thought. Nearly sixty percent of retiree say they've
had to cut back on expenses, many because they underestimated

(48:28):
their long term financial needs. That's where smart planning with
financial tools come in. Join us for our upcoming Masters
class annuities, The Good, the Bad and the Ugly on Tuesday,
April twenty second and Thursday April twenty fourth, where you'll
learn how to create a more secure retirement plan. Don't

(48:52):
leave your future to chance, take control today. Seats are limited.
To reserve your spot, give us a call or email
Kelly at Kellyfinancial dot org. Jeff I will continue this
conversation with our Kelly Advisors tomorrow morning at nine am
on Safe Money Strategies Radio. Do tune in or go
to our website for our radio rewind jesfs. Have a

(49:16):
wonderful weekend. My best Grace and THEI kiddos, thank.

Speaker 1 (49:20):
You you too, Kelly.

Speaker 6 (49:21):
Have a wonderful weekend. Give my best at everybody at
Kelly Financial. Okay my friends eight eight eight eight hundred
eighteen eighty one. If you want to get a free
copy of the guide or set up a retirement consultation,
or if you prefer, you can email Kelly herself Kelly
at Kellyfinancial dot org. That's Kelly k E. L. L

(49:46):
Y at Kelly Financial dot org.

Speaker 3 (49:54):
Safe Money Strategies at eight eight hundred one eight eight one.

Speaker 11 (50:03):
Welcome, ladies, gentlemen, it's Bill Kelly. Welcome to our exclusive
broadcast where you can lock in and find out what's
going on. Opportunity matching we call it. You think you're
just listening to a radio show. Not the case, ladies
and gentlemen. You are prospecting for possibilities, using your ears
to allay your fears, and we want you to avoid
radio frequency fatigue and focus on facts. And the one

(50:27):
key question is now is your money safe? How's retirement going?
Are you going to be able to do it? Are
you going to be able to exist in that retirement?
And we use the GPS system Guidance Possibilities and Security
GPS Goals Potential Strategies GPS think about that. It's something
amazing that takes people some time to figure out. But

(50:50):
the possibilities and potential, a proven pathway usually works best.
Don't you think if you're going to go through the woods.
If you're going to walk through a field and you
see a pathway and it's well worn, and you see
some alternatives that aren't as well worn, then you'll say,
women take the safe pathway. You're not sure what's at
the other end. Robert Frost had a pathway a poem,
two roads to verts in a yellow woods. Sorry, I

(51:12):
could not travel both. I took the one less traveled,
and that made all the difference. But we don't want
to do that in retirement. What could be a road
less traveled? Well, quote unquote, I'm going into my basement,
into seclusion. I'm going to learn everything about the market,
and I'm going to day trade. That is a road
less travel I'm going to call my brother in law
and we're going to figure out a portfolio of only ETFs.

(51:33):
And what are ETFs? So ETFs are exchange traded funds
that are constructed to only mimic a market index or
some type of index or performance vector. So that's what
an ETF is. An ETF is a way to buy
let's say gold, without actually buying the physical gold, So
it mimics the standard for which it is named. That's

(51:54):
all it is. They don't have any special superpowers and
there's no special sauce when you're discussing any So be careful.
So like saying I only buy reads, well, really, do
you know what the expenses are? Do you know what
the liquidity is? Do you know what the risks are?
And do you know what the potential rewards are? Well,
we tend to overblow reward and we tend to underestimate risk.

(52:15):
Risk is not a feeling of fear for you. Risk
is not a feeling of uncertainty. Risk is something you're
willing to undertake in order to increase your profit, increase
your return. That's the only reason to take risk is
to have a higher reward. You can put that out
on any risk rewards scataplot and guess what. You can
actually determine that if you can look at little dots

(52:36):
on a chart, which you'll do if you visit with
us at Kelly Financial Services, And if you do that,
you'll be able to determine how much risk you want
how much you have and how much more you may
have than you think or less, and how much you
overperform or underperform the market. So one key question, am
I going to make it through retirement? Key question if
you have a guide? If you have someone with experience

(52:56):
and me I only have twenty three years experience, that
might be an and our staff to talk with you
about the goals, possibilities and security of retirement a Great
Retirement GPS about the guidance, the potential, the prospects, the
strategic and shielded methods. That's a GPS. So retirement is
a path, a passage, a pilgrimage, a quest. We help

(53:18):
you with the itinerary, the ticket, the journey and the destination.
Hopefully that destination is happiness. Don't you think that's important?

Speaker 1 (53:25):
I do.

Speaker 11 (53:25):
So you're listening to the show and you're in a
curiosity phase. What's in it for me?

Speaker 1 (53:30):
Right?

Speaker 11 (53:30):
You're getting used to a familiar voice and you're looking
for key areas of expertise, and that's important, and maybe
you're saying, what's in it for me? And that might
impose upon you the desire to take action. Call in
for a booklet take a survey, or a test, begin
to match your needs to the solutions you hear, and
then decide maybe going it alone is not the right way,

(53:52):
and maybe there is something I can do a little
bit better than I've done, and those actions to improve
or inspire could be a calling from Bolt. The Changing
Face of Retirement is a booklet. It's much different than
it was back when people didn't have portfolios. My grandfather
had chickens. That was his retirement plan. They gave something
back to him every day, and he told me, always

(54:13):
do something where you're helping others with a necessity of
life with chickens, that being food, with investments, that being
sustaining your life. And that's what I did. Thank you
Tim Murphy, thank you Graham. But that's what it's all about.
So you take a survey, you do a test, you
find out where you stand, and you begin to match
your needs to these solutions that you're hearing week after week,

(54:34):
year after year, month after month. It means you're connecting
with us. You're converging on a specific point in time
and a place on the map, and you're wondering if
you can do better, can you do better? Can I
do better? And you're meeting the team. You're going to
meet an impressive team of people and discovering a difference.
That there is a difference, and we all know it
when we're driving a particular type of car, buying a

(54:55):
particular type of home in a particular neighborhood. And that's
what happens when we are choosing, when we select what
we want.

Speaker 1 (55:03):
Eight eight eight eight.

Speaker 11 (55:05):
Hundred twentyig one Safe Money Strategies the workbook eight eight
eight eight hundred one a gig one. Get us.

Speaker 3 (55:14):
We're called Kelly Financial Services. Eight eight eight eight hundred
eighteen eighty one.

Speaker 4 (55:19):
I'm Kelly Kelly from Kelly Financial. Whether you're in your sixties,
seventies or eighties, financial advice is important when it comes
to preserving your nest egg. We have a free investor
guide called designing your Fiscal House to Weather the Elements,
which highlights the steps needed to build a balanced portfolio.
For the guide, call eight eight eight eight hundred eighteen

(55:42):
eighty one or email Kelly at Kellyfinancial dot org. We're
Kelly Financial. Come retire with.

Speaker 3 (55:49):
Us Senior Safe Money Strategies with John Budris and Kelly Kelly.
Eight eight eight eight hundred one eight eight one.

Speaker 12 (55:59):
The news break is coming up, and during the break,
take the time to give a call at eight eight
eight eight hundred eighteen eighty one and make that all
important first step to secure your retirement future. Talk things
through with a financial advisor about any aspect of retirement
or money management, whether it's your portfolio, concerns about healthcare,
or if you're tossing around the idea of relocating or

(56:20):
maybe helping out with your grandchildren's college. See a financial
advisor isn't only about the stock market. That's only a
portion of the job description. And in the end you'll
be amazed at how very small adjustments over time can
have enormous results when it's time to retire. In fact,
these adjustments can be the difference of when you can retire,
or in some cases, whether you can retire at all.

(56:42):
So call us at eight eight eight eight hundred, eighteen
eighty one or visit us at Kelly Financial dot org
and raise a toast to your financial future. Eight eight
eight eight hundred eighteen eighty one. Kelly Financial Services with
offices in Braintreet and Burlington.

Speaker 2 (56:57):
All Right, see you next.

Speaker 12 (56:58):
Week, expressed by the host, his guests or employees of
Kelly Financial Services are solely their own and do not
reflect the opinions of Kelly Financial Services. Information has been
obtained from sources deemed to be reliable, but their accuracy
and completeness cannot be guaranteed. The information provided as general
in nature and is not intended to be specific investment, tax,
or legal advice.

Speaker 2 (57:14):
It is always advisable to consult their professionals.