Kelly Financial: Saturday, April 26, 2025

Episode Transcript

Speaker 1 (00:12):
It is going to us.

Speaker 2 (00:20):
Good morning, Dear Boston. I'm John Boudris 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. Well, we are full
bore into springtime, and springtime I like to look at

(00:42):
it as nature takes risks. We take risks, and often
our children take risks, our adult children just as our
youngsters did, and they back themselves into financial corners that
they have very very difficult times getting out of. And
like all children, and what do they do. They turn
around and they look at mommy and daddy and they

(01:03):
say help. And even if they don't say help, we
look at them when we want to help. Here in
the New England area, everything is more expensive. Energy is
more expensive, Housing costs are off the charts. If our
children went to a college or a university here, they
probably have some debt, and as parents, we want to

(01:24):
help out. Later in the show, I'll be bringing on
Kelly Kelly, CEO of Kelly Financial, and we are going
to be talking about those challenges parents face when they
want to help their adult children, but they also want
to help themselves in their retirement and there's an impasse there,
or at least it takes some tricky planning. It's kind

(01:44):
of like being in rapids. It'll work out if you
do it right, and that's what we are here for.
So thanks for joining us. We'll of course be hearing
from the advisors at Kelly Financial when we come back,
and we'll see you on the other side of this
little break to save Money Strategies heard right here on
w RKO every Saturday.

Speaker 3 (02:04):
Morning, Safe Money Strategies with John Budris and Kelly Kelly
called Kelly Financial on eight eight eight eight hundred, eighteen
eighty one. We'll go to Kelly Financial dot Org.

Speaker 4 (02:23):
Good morning, dear friends and dear listeners. I'm Kelly Kelly,
and welcome to our show on this fine Saturday morning.
I am here with my handsome son, William Kelly Junior,
as we chat every Saturday morning. Good morning, William, Good
morning mom.

Speaker 5 (02:39):
How are you?

Speaker 4 (02:40):
I'm doing great? How about yourself?

Speaker 5 (02:42):
Doing great?

Speaker 6 (02:43):
It's a beautiful rainy Saturday morning and George is bargaining
up a storm. Life is as it should be. Absolutely absolutely,
I'm sure Marshall's sleeping somewhere enjoying the rain, and we
had a great Easter Sunday. Yes, we lost Pope Francis
on that day, celebrating Easter Sunday. He died hours later.

(03:05):
I think that's pretty beautiful. He was an amazing man.
He was very unorthodox for a pope, very very unique
as an individual.

Speaker 5 (03:12):
He wasn't perfect.

Speaker 6 (03:14):
I mean, we're all humans, so we're not perfect, but
he really did some amazing things. He was a very
kind person and a good friend of ours. Mayor Flynn
was also an ambassador, and he was the ambassador for
the Vatican, and he was very good friends with Pope Francis,
and he only spoke highly of him to say about
the Pope. I grew up with him as my pope.

(03:34):
I would listen to him speak every now and then
on YouTube, recording to him, and he was a very
eloquent speaker, and he had a way of putting the
faith into plain words in very understandable ways. He had
a way of comforting people as well, very plainly. He
was just a very plain, very straightforward Italian man who
just tell you how it is, but in the kindest

(03:55):
way possible. He was very gentle, so rest in peace,
Pope Francis. So Easter was great. John Boucher's came over,
his friend Lisa came over, and his dog.

Speaker 4 (04:05):
Me me also, it was wonderful. You did a fantastic
job cooking, William, thank you for Wellington. And it was
just it was a great day. And we had the
Easter egg hunt, and you and Mary Madeline, it was
like you were both five years old.

Speaker 6 (04:26):
Again, that is true, either you John or Lisa decided
to hide an egg inside an unopened paper towel bundle,
and it was wrapped in plastic, and I guess one
of you guys snuck it in, and so I noticed it,
and then Mary Madeline noticed it, and I grabbed it
and she grabbed it, and we both ripped the thing.
Paper towel rules are flying everywhere, and listen, ladies and gentlemen.

Speaker 7 (04:50):
I'm not a liar.

Speaker 6 (04:51):
I see things as they are and I just repeat them.
She started grabbing my eggs, and so I just immediately
reacted and started grabbing eggs to the left of me.
You know, could have been her exs, could have been mine,
I don't know, but she threw a fit. At that moment,
I realized I need to rise above this. As the
little brother, I need to be a big brother in spirit,
and I need to be the mature one, and I

(05:12):
need to rise above it. And so Ray Madeline, I
forgive you. I just want to say that I forgive
you and I love you, and we have moments.

Speaker 4 (05:22):
Oh my goodness, I have never laughed so hard. It
was quite comical.

Speaker 6 (05:29):
Was a great sir.

Speaker 4 (05:30):
I want to wish everyone a wonderful rest of the
weekend and do keep us on your dial. While taxes
might not be the most thrilling topic, understanding them is
key to keeping more of your hard earned savings in retirement.
On today's show, Mike Dussaid and Charlie Gable, we'll explain
how wroth conversions work, why they're so powerful, and ways

(05:54):
to taylor your strategy to fit your unique situation. Mary
Madeline Kelly and Greg Murray will tackle a classic retirement question.
Should you pay off your mortgage early or invest the
extra money is one of the most common questions we hear,
and their conversation breaks it down beautifully. I will return

(06:15):
with John Boudris. We will discuss one of the toughest
financial blind spots, how to help your adult children without
sacrificing your own retirement. If you are a parent struggling
with this balance, stay tuned. We will also have some
wit and wisdom from Bill Kelly William. Thank you for
chatting with me this morning. I love you, honey.

Speaker 6 (06:36):
I love you too, and as do, I look forward
to next week.

Speaker 3 (06:46):
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. Come retire with.

Speaker 7 (06:59):
Us, O friends. If your four oh one k Lady
feels like something out of a Stephen King novel, you're
not imagining it. The markets have been all over the place,
up down, sideways. It's like watching the Red Sox go
into extra innings. But listen to me now, don't panic.
The worst thing you can do is cash out and
lock in your losses. Smart investors they stay cool, they

(07:22):
stick to their plan, and they work with people they trust.
That's where Kelly Financial Services comes in. They're local, they're
fiduciary advisors, and they care about your peace of mind.
They'll help you ride out the storm so you're not
making emotional decisions with your life savings on the line.
Call them today for your free retirement consultation eight eight

(07:46):
eight eight hundred eighteen eighty one eight eighty eight eight
hundred eighteen eighty one or email Kelly at Kelly Financial
dot org. That's Kelly at Kelly Financial dot org.

Speaker 1 (08:01):
Good morning, and welcome to the show. You are listening
to Safe Money Strategies and my name is Mike Ducett,
Chief operating officer at Kelly Financial Services. Today we're tackling
what could be considered a game changer for retirement planning
roth conversions. While taxes might not be the most thrilling topic,
understanding them is key to keeping more of your hard
earned savings in retirement. Here's the reality. The tax landscape

(08:24):
is influxed. Major changes to our tax code are set
to KURR in twenty twenty six, but with a new
administration in Washington, no one knows for sure what will happen.
One thing we can be relatively sure of, however, is
that our national debt will continue to balloon, and that
raises the likelihood that taxes could climb in the future.
If most of your retirement savings are in traditional iras

(08:46):
or four oh one k's, this could mean paying more
in taxes when you start with drawing. That's why having
a savvy strategy converting to a roth IRA offering tax
free income and retirement could be the right move for you.
On today Today Show, we'll explore how roth conversions work,
why they're so powerful, and ways to tail your strategy

(09:07):
to fit your unique situation. Whether you're retired or planning
to retire soon, this knowledge could make a huge difference
in how long your money lasts and how much of
it stays in your pocket.

Speaker 5 (09:18):
Hey, good morning everyone. My name is Charlie Jabel and
I'm a member of the investment advisory team here at
Kelly Financial Services. So taxes don't have to derail your
retirement plans, but addressing them strategically is going to be essential.
The Roth conversion isn't just about paying taxes today, it's
about designing a plan to help minimize taxes over your
entire retirement. If you've been wondering how this might apply

(09:40):
to your situation, give us a call at eighty eight
eight zero zero one eight eight one, or visit us
online at Kellyfinancial dot org. We offer a complementary consultation
where we'll take a closer look at your finances and
help determine if an efficient strategy for your roth conversion
makes sense.

Speaker 1 (09:57):
Today, we'll cover not just the benefits of wroth conversions,
but also the common pitfalls and how to avoid them.
This isn't about a one size fits all approach. It's
about figuring out what works for you.

Speaker 5 (10:09):
I'm a huge believer in wroth. Ira is very much
like how they work for our clients. When I sit
down with a new client who already has a WROTH,
one of the first things I explore is how we
can move more money into that account in the most
efficient way possible. And for those who don't have a WRATH,
I often start by figuring out a strategy to convert
their traditional ira or four one K money into that

(10:29):
roth ira. Why because in my mind, there's nothing better
than tax free income and that's exactly what a roth
ira can offer.

Speaker 1 (10:37):
For those who may not be familiar, let me break
it down. Traditional iras allow you to make pretax contributions,
meaning you don't pay taxes on the money you put in,
but the tradeoff is that almost every dollar you would
draw is taxed as ordinary income. Roth Iras, on the
other hand, are funded with after tax dollars, meaning you
pay taxes on your contributions up front. The big advantage

(10:59):
the money ros tax free, and when it's time to
take it out, those distributions are entirely tax free. So
the big question becomes is it better to defer taxes
or to pay them now?

Speaker 5 (11:10):
And this is a key starting point for anyone that's
evaluating the benefits of a traditional ira versus a wroth
and here's where it gets interested. Many people are surprised
to learn that there is no difference between a regular
ira and a wroth ira in terms of how much
will end up in your pocket after taxes are paid,
provided the same assumptions are applied equally to both accounts.

(11:33):
So here's a simple example. Say your tax at a
rate of thirty percent. If you contribute one hundred dollars
to a traditional ira. You don't pay taxes on that
money up front because it's tax deductible, but over time,
assume that one hundred dollars might double to two hundred dollars.
When you withdraw it, you pay thirty percent taxes, which
is sixty dollars, leaving you with one hundred and forty

(11:54):
dollars to spend Now, let's look at the roth iray.
Since you're paying taxes upfront, your one hundred dollars contribution
becomes seventy dollars after that thirty percent tax is deducted,
so soon that seventy dollars also doubles over time to
one hundred and forty dollars. Because roth withdrawals are tax free,
you get to keep every penny, so you end up

(12:14):
with the same one hundred and forty dollars. As long
as you apply same growth and tax rates to each account,
the net result will always be the same.

Speaker 1 (12:22):
So if the math works out the same, why do
you favor roth iras so strongly.

Speaker 5 (12:27):
Well, it all comes down to one thing, the future
of tax rates. Now, I firmly believe there's a strong
likelihood that tax rates will rise in the years ahead,
and if that happens, everything with the math changes. The
wroth ira offers a huge advantage because you've already paid
taxes at today's rates, shielding yourself for potentially higher taxes

(12:47):
in the future.

Speaker 1 (12:48):
Some of you might feel less concerned about rising taxes
now that form of President Trump has been re elected.
But before we dive into that, let me be very
clear This isn't about politics, not he had a champion
one party or another. What I'm here to do is
discuss a financial reality that's crucial for your personal and
retirement planning. The reality is simple. Our country has a

(13:11):
long history of spending more money than it collects in taxes,
regardless of which party is in control, and ignoring this
can be dangerous for anyone planning their financial future.

Speaker 5 (13:21):
So let's look at the numbers. During fiscal year twenty
twenty four, the IRS collected just under five trillion dollars
in tax revenue, but during that same year, federal spending
was approximately six point seventy five trillion. How does the
government cover that gap? Well, it borrows. For the last
fifty years, the federal budget has run a surplus only

(13:41):
four times, and for the past twenty years, deficit have
become the norm. The result a national debt that's balloon
to levels many experts warn are unsustainable.

Speaker 1 (13:51):
According to the US Government Accountability Office, this growing debt
puts US on a dangerous fiscal path. They warn debt
increases the risk of a fiscal crisis if investors lose
confidence in america fiscal management. Drastic tax increases and cuts
to critical spending could ensue.

Speaker 5 (14:11):
So in simple terms, think of the national debt like
someone using a credit card but only paying the minimum
balance each month. The excess spending accumulates his debt and
the interest keeps piling on. Over time, that person's financial
situation becomes unsustainable. Our national debt is much the same.
It represents decades of accumulating deficits and the interest is

(14:32):
piling up.

Speaker 1 (14:34):
Charlie and I need to take a quick break, but
stay tuned because we'll continue our conversation on roth conversions
later this morning.

Speaker 3 (14:43):
Kelly Financial Services eight eight hundred, eighteen eighty one.

Speaker 2 (14:48):
There's nothing like running the Boston Marathon mark. Even before
crossing the start line, you must spend months planning in advance,
training your body, becoming familiar with the terrain, preparing for
all weather conditions, adjusting fuel and hydration, and testing your gear.
Many runners visualize their race, setting that personal record, and

(15:11):
seeing themselves finishing strong. When it comes to your retirement,
what do you see? A fulfilling retirement requires the same
kind of planning, preparing, adjusting, testing, and goal setting as
for a marathon. Let the retirement coaches at Kelly Financial
Services help you cross the finish line in the greatest

(15:32):
race of your life. So call eight eight eight eight
hundred and eighteen eighty one or visit Kellyfinancial dot org.
When your mark get set, go to Kelly Financial Services.
Come retire with.

Speaker 3 (15:44):
Us The Money Wrap with Kelly Financial Advisors Greg Murray
and Mary Madeline Kelly.

Speaker 8 (15:54):
Good morning. This is Greg Murray, Senior Vice president and
Chief Compliance Officer at Kelly Financial Services. Me today is
Mary Madeline Kelly, one of our wealth advisors. How are
you doing today?

Speaker 9 (16:04):
I am doing well. Thank you for asking. How was
your Easter?

Speaker 8 (16:07):
Easter was fantastic. I always enjoy spending time with my family.
We went up to my mom's house in Manchester. How
about you? How was your Easter?

Speaker 9 (16:14):
That sounds like a lovely time. Mine was very nice.
I also went to my mom's and spent some time
with her and my brother. It's funny because even though
we are fully grown adults, that does not stop my
brother and I from having a highly competitive Easter egg
hunt that our mom puts on for us, and I
am a proud winner for most of our years doing this.

Speaker 8 (16:35):
That sounds like a really fun time. I am very
happy to hear that you do that every year, no
matter how old you are.

Speaker 9 (16:41):
Absolutely, today's topic is a big one, a question we
get all the time. Should I pay off my mortgage
early or invest the extra money instead?

Speaker 8 (16:51):
Yep, that's one of those questions where the answer is
it depends. But we're going to walk you through both
sides because there are good reasons to consider both strategies.

Speaker 9 (16:59):
So let's start the emotional side. A lot of people
love the idea of being completely debt free. There's peace
of mind in knowing that you own your home outright,
especially heading into retirement.

Speaker 8 (17:10):
The feeling of security is huge. No monthly mortgage payments
means lower fixed expenses, and for some people that's a
major goal and totally valid.

Speaker 9 (17:18):
But on the flip side, there's the math. Mortgage rates
have been higher the past few years, more like six
percent or seven percent, so the decision isn't as clear
cut as it was when rates are at historic lows.

Speaker 8 (17:30):
Right, if your mortgage rate is six point five percent
and you're comparing to what you might earn by investing
in the market, it gets a little trickier. Yes, the
market has the potential to outperform that over time, but
there's more volatility and risk involved exactly.

Speaker 9 (17:44):
Paying off a loan with a guaranteed six percent interest
rate is a solid return in today's environment. For some people,
that makes the mortgage payoff strategy a lot more appealing
than it used to be.

Speaker 8 (17:54):
Still, it depends on your goals. If you're young and
have a long investment timeline, you can handle market up
and down investing might still them out ahead. But if
you're nearing retirement and just want more peace of mind,
the guaranteed savings from paying off your mortgage might feel
like a better option.

Speaker 9 (18:09):
So what did we usually tell our clients? We ask
what's your interest rate, what's your investment time horizon, how
comfortable are you with risk? And how important is being
debt free to you.

Speaker 8 (18:20):
If someone's getting close to retirement it doesn't want the
pressure of a monthly payment, paying down the mortgage might
feel like the right call, even if it's not the
mathematically optimal choice.

Speaker 9 (18:29):
Right it's about balancing numbers with feelings. Some clients split
the difference. They put some extra toward the mortgage and
invest the rest. It doesn't have to be all or nothing,
and we.

Speaker 8 (18:39):
Can't forget about cash flow. If throwing extra money at
your mortgage leaves you short on emergency savings or makes
it harder to max out your four O one K,
that's probably not the right move exactly.

Speaker 9 (18:49):
Liquidity matters. You can't pull equity out of your home
the way you can sell off a few shares of
a mutual fund and an emergency.

Speaker 8 (18:56):
So here's a simple way to think about it. If
you're more motivated by financial freedom and less worried about
maximizing returns, paying down the mortgage could be a good
emotional and practical win. If you're focused on long term
growth and comfortable with market risk, investing might make more sense.

Speaker 9 (19:12):
And of course there's no one size fits all answer.
We recommend running the numbers and checking in with the
financial advisor to see how it fits into your bigger picture.

Speaker 8 (19:21):
We've seen both strategy work really well. The key is
understanding your priorities and making an intentional choice, not just
reacting to what feels right.

Speaker 6 (19:28):
At the moment.

Speaker 9 (19:29):
I couldn't agree more. And remember, your financial plan isn't
set in stone. You can always re evaluate as your
goals in life changes.

Speaker 8 (19:36):
All Right, that's all for today's conversation. Whether your team
pay it down or team let it ride. The most
important thing is that you're thinking about your future.

Speaker 9 (19:44):
That's a great way to put it. Well, I will
see you next week.

Speaker 3 (19:48):
To get in touch with Greg Murray or Mary, Madeline Kelly,
or any member of the Kelly Financial team, call aight
a eight eight hundred, eighteen eighty one.

Speaker 2 (20:00):
I'm John Boudris, and welcome to a new edition of
Kelly Financial's What would Bill Say? The Wit and wisdom
of the late Bill Kelly. Today we'll address fact from fiction.

Speaker 10 (20:12):
You can always make money if you haven't if you
lose it all. It's very difficult to do that. So
you have to have a plan. If the market goes
up quite a bit or down quite a bit, you
have to be ready. And how do you sort fact
from fiction?

Speaker 2 (20:25):
Download Kelly Financial's Consumer Guide, simply called the Value of
an objective opinion. With so much at stake with your
retirement future, you don't just want any financial advice, but
objective financial advice, and as a fiduciary, Kelly Financial puts
your interests above all else. Go to Kellyfinancial dot org

(20:48):
or call eight eight eight eight hundred and eighteen eighty
one to get the guide.

Speaker 10 (20:52):
Ladies and gentlemen. Sort fact from fiction.

Speaker 2 (20:54):
We are Kelly Financial Services. Come retire with us. 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,

(21:15):
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
Kellyfinancial dot org. We're Kelly Financial. Come retire with us.

Speaker 3 (21:29):
Safe Money Strategies with John Budris and Kelly Kelly. Call
the team on eight eight eight hundred eighteen eighty.

Speaker 2 (21:38):
One and we're back. I'm John Budris, the co host
of Safe Money Strategies, and as always, thanks for joining
me this morning. Well, if you're a parent of an
adult child, you've probably asked yourself how much help is
too much help? Whether it's helping with college tuition, which

(22:02):
is a big nut to crack these days, or a
down payment on that starter home, or just keeping the
lights on during tough times of unemployment or reduced employment,
A parent's instinct is always to step in and try
to fix it. But here's the catch. Our own generosity

(22:23):
can sometimes quietly sabotage our own retirement. So today we're
going to be talking about how to support your kids
without compromising the future that you've been working so hard
to build. And joining me today is Kelly Kelly, the
CEO of Kelly Financial Services. She'll walk us through what

(22:43):
retirees should do to protect their own futures while still
offering meaningful and sustainable support to their adult children in
a way that well works for everybody. Kelly, good morning
and welcome, and I hope your coffee is a bit
one because this is a this is a big subject
these days.

Speaker 4 (23:03):
Good morning, John, happy to be here with you on
this Saturday morning, and yes, I have my coffee, a
big coffee, and I am ready to chat Kelly.

Speaker 2 (23:14):
Today we're covering how retirees can help their adult children
while protecting the retirement future they've built or are in
the process of building.

Speaker 4 (23:24):
John, this is such an important conversation, is one that's
happening around kitchen tables all across the country right now,
and I have to say there is good news. We
help families navigate this issue every day, so we have
a lot to say about it.

Speaker 2 (23:43):
So let's get started. A lot of folks want to
help their kids pay for school. I mean, I mean
tuition in college is just, you know, off the charts
these days, one hundred thousand dollars a year for some
of the top schools with that first house, particularly in
the Boston area where real estate is so expensive, or
maybe just to bail them out of a difficult spot.

(24:05):
So what's the first thing they need to do before
opening up their checkbooks?

Speaker 4 (24:10):
John, The very first step is having a clear understanding
of their own finances. They need to know their retirement goals,
they need to know their income streams, and they need
to know their risk because no one can give from
an empty bucket.

Speaker 2 (24:27):
So you're saying know thyself, that is, understand thyself before
becoming the family piggybank.

Speaker 4 (24:34):
Exactly, and not just know thyself or understand thyself, but
be honest. Being honest with yourself and being transparent with
your kids is key.

Speaker 2 (24:48):
Well, let's break that down a little bit more. What
does understanding your finances really mean for someone who's already
retired or thinking about retiring soon.

Speaker 4 (24:59):
Start with the full inventory, know what's coming in and
know what's going out. That means understanding all guaranteed income
sources like social Security, pensions, annuities, and knowing how much
can be sustainably withdrawn from your retirement accounts. It's also

(25:20):
important to factor in inflation, of course, market volatility, health
care cost, and longevity. Is a lot, but it's really essential.

Speaker 2 (25:30):
Okay, After getting that grasp on of their own finances,
what should retirees do next?

Speaker 4 (25:39):
Next? Is important to have honest conversations with your kids.

Speaker 2 (25:44):
Well, I imagine that can get very tricky and fast.

Speaker 4 (25:47):
It certainly can, especially if emotions are running high. But
being upfront about what they can and cannot afford sets
the tone for a healthier financial relationship. Sometimes it can
be helpful to bring in a neutral third party, such
as a financial advisor, to keep the discussion productive.

Speaker 2 (26:10):
Right, so they won't feel like the bad guy for
saying no exactly.

Speaker 4 (26:15):
Plus, is okay to put expectations in writing and check
in regularly to prevent misunderstandings later. It's not about mistrust,
it's about clarity.

Speaker 2 (26:26):
What are some of the smart ways parents can help
their adult kids without hurting themselves?

Speaker 4 (26:32):
Great question. If it's education, they might consider contributing to
a five point twenty nine plan early on. If it's housing,
maybe they can help with a portion of a down
payment rather than the whole thing. Both ways of helping
can still make a very big impact.

Speaker 2 (26:51):
And what about childcare for the grandkids. That's a huge
expense these days.

Speaker 4 (26:56):
Absolutely parents can offer help there, or better yet, provide
the gift of time if that's feasible. Sometimes non monetary
help is even more valuable and less financially risky.

Speaker 2 (27:10):
Here's another twist on the subject. What about when adult
kids move back home. The boomerang generation is very, very real,
and particularly in the Northeast where housing costs are just
off the charts.

Speaker 4 (27:25):
I agree John, housing in New England is crazy high,
but I think it's okay when the kids want to
move home. But there have to be conditions. You need
to set household expectations, you need to set timelines, maybe
even require some rent. They really need to feel like

(27:46):
they're on a path to independence and not a permanent layover.

Speaker 2 (27:51):
And what about the peril of the pen that is
co signing loans.

Speaker 4 (27:57):
Parents should be very cautious. If they're the name is
on paper, they are on the hook. And if it
goes south, not only does it affect their finances, it
could hurt their credit and their relationship.

Speaker 2 (28:10):
Well, that is a lot to consider, Kelly. It sounds
like bringing in an objective party. Understanding their finances and
having a good grasp on their retirement income is what
parents should do first before they think about writing that
big check.

Speaker 4 (28:26):
I agree one hundred percent, John.

Speaker 2 (28:28):
Are there any tools or strategy that can help with that?

Speaker 4 (28:31):
At Kelly Financial we build out projections to show people
what could happen to their retirement nest egg. Those what
if scenarios can be eye opening. You'd be surprised how
many people find out they're not as secure as they thought,
or on the flip side, they have more room to
help than they realized.

Speaker 2 (28:52):
So are we only talking about pre retirees here? What
about folks who are already retired? Is it too late
to build that strategy?

Speaker 4 (29:02):
Not at all. In fact, is more important than ever.
Retirees should revisit their plans annually or more often if
they're taking on new financial responsibilities. A strong plan will
help avoid surprises and it keeps them from dipping into
assets they might need in ten or twenty years.

Speaker 2 (29:24):
Well, dear listeners, we've covered a lot of ground today.
It's dangerous ground in a way. Emotions, expectations, and those
real life money decisions that come with being a parent
in a retiree. At the same time, Kelly, what's the
bottom line in all of this, John?

Speaker 4 (29:43):
Is this, It is absolutely fine to help adult children,
but not at the expense of your own stability. In fact,
the best gift you can give them is a strong
example of what wise long term planning looks like.

Speaker 2 (29:59):
That's great advice. Are there any resources our listeners should explore.

Speaker 4 (30:04):
If our listeners are wondering where to start, Our free
investor guide Your Retirement income Planning Checklist highlights all the
things they will need to plan for, such as healthcare expenses,
long term care, and taxes as they consider taking on
additional financial commitments. If they need a neutral third party,

(30:26):
contact us and speak with one of our Kelly Advisors.
We can offer objective guidance when emotions are running high
and help ensure that any financial support this giving aligns
with long term retirement goals.

Speaker 2 (30:42):
That sounds reassuring, Kelly, so thanks for that. To get
the guide and make a complementary appointment with a Kelly
Financial Advisor, call eight eight eight eight hundred eighteen eighty
one or email Kelly at Kellyfinancial dot org. That's all
the time we have for this segment. Thanks so much
for joining me. When we come back, we'll continue our

(31:03):
conversation and cover the realities of debt support, the big picture,
help and legacy planning. Another important one. You're listening to
Safe Money Strategies the radio show heard right here on
WRKO and streaming on the iHeart app. We are in
our twentieth year broadcasting, so thanks for tuning in and
we will be back in a New York minute.

Speaker 3 (31:28):
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 2 (31:39):
Ready to enjoy your golden years without worry that 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, call eight eight eight eight hundred eighteen

(32:02):
eighty one or email Kelly at Kellyfinancial dot org. We're
Kelly Financial. Come retire with.

Speaker 3 (32:08):
Us Safe Money Strategies with John Budris and Kelly Kelly.
Call the team on eight eight hundreds eighteen eighty one.

Speaker 2 (32:18):
And we're back. I'm John Budris, the co host of
Safe Money Strategies, and thanks for joining me this morning.
Helping adult children financially without putting your own future at
risk can be one of the toughest balancing acts that

(32:39):
retirees can face. Should you be providing debt support and
budgeting advice, what do you do when your kids make
mistakes with money? And how should you give strategically that
is not just with dollars, but with guidance, accountability, your time,
and that long term perspective that you know we in
our old age have a better handle on that than

(33:02):
our kids. If these are questions that keep you up
at night, and they keep me up at night, I
tell you we've got your covered. We'll tackle all of them.
In today's show. Let's bring back Kelly Kelly, the CEO
of Kelly Financial Services, to help us break it all down. Kelly,
good morning again and welcome back again. How's that bug

(33:24):
of coffee? I think you're going to need a refill.

Speaker 4 (33:26):
Good morning again, John, I'm happy to be back with
you on this Saturday morning, and my coffee is great.

Speaker 11 (33:33):
I'm still working on it. Thank you for asking Kelly.
A lot of folks are whispering about this topic, but
we're going to bring it right into the open and
shine the light on it. How to help your adult
children without derailing your own life, your own retirement.

Speaker 4 (33:51):
I'm really glad we're discussing this today At Kelly Financial.
We want our clients to be comfortable with their financial decisions,
and this one can be a bit tricky.

Speaker 2 (34:02):
Well, it's really tough to say no, especially when your
adult child is struggling and you just want to help,
and when those grandchildren look at you when you think,
oh my god, I'll start taking the shirt off your back.
That's your instinct. But as much as your heart wants
to say yes, your wallet and your retirement plan deserves

(34:23):
a voice in this conversation. So let's jump in and
start with debt. Can parents step into help with this
part of the financial picture.

Speaker 4 (34:32):
They certainly can, john but strategically, if they are helping with, say,
student loans, explore whether a contribution would make more sense
going to high interest debt first, which we call the
debt avalanche method, or perhaps is best to knock out
small balances for momentum. We call that the debt snowball. However,

(34:58):
they really should let their adult child be on their
own journey. It's okay to be their budgeting buddy, but
not the bailout.

Speaker 2 (35:06):
That's a great term. And would you recommend credit cards
if used wisely?

Speaker 4 (35:11):
Yes, they can build credit, but must be paid off monthly.
It's a tool, not a trap.

Speaker 2 (35:18):
What are some signs that a parent might be doing
too much when it comes to helping with debt.

Speaker 4 (35:23):
Well, John, if they're the ones losing the sleep over
their children's financial choices, or if their own bills are
going unpaid to cover their kids' expenses, that is a
red flag.

Speaker 2 (35:35):
How can retirees encourage their kids to take more ownership
of their finances without creating tension?

Speaker 4 (35:42):
We mentioned this in the first half, but it's important
to start with open, judgment free conversations. Offer to sit
down and walk through their budget, look at their expenses,
maybe even compare a few loan payoff strategies. It's about
creating a culture of financial honesty. This is a partnership,
not parental control. That's the hard part.

Speaker 2 (36:06):
I believe are there tools that can make that easier, Kelly,
such as apps or systems which create that shared understanding.

Speaker 4 (36:14):
There are John budgeting apps are even simple spreadsheets can
create structure. Creating structure is so important. Some families check
in once a month. It's like a money meeting. It
keeps everyone on track and it helps adult kids build
those muscles with accountability.

Speaker 2 (36:36):
But what happens when they're just not making progress or
not hearing you.

Speaker 4 (36:41):
That's when bringing in a neutral third party like a
financial advisor can be a game changer. We understand this
at Kelly Financial. Sometimes the message lands better when is
coming from someone who's not mom or dad. Plus, it
takes the emotional pressure off relationship, and that's really important.

Speaker 2 (37:02):
Good reminder and thanks for that, But I want to
dig into lack of progress or worse mistakes. Let's say
the kid makes a mistake, blows through with savings, ignores
a budget, ends up in trouble than what.

Speaker 4 (37:16):
I'd say, acknowledge it, but don't enable it. Offer tools
and guidance, not just another bail ound. Sometimes the best
support is helping them rebuild stronger and having an emergency
support system a plan both parent and child completely understand
can make these conversations much easier.

Speaker 2 (37:38):
That's easier said than done, especially for parents who just
want to step in and fix it. So how do
you strike that balance?

Speaker 4 (37:46):
That is true, John, it can be incredibly tough, but
rescuing them every single time reinforces bad habits. Instead, retiree
should shift the conversation to responsibility. They can help them
review what went wrong and perhaps offer to be a
budgeting body or connect them with a financial coach. And

(38:09):
doing so, retirees show they care is not just at
the cost of their own future or their accountability.

Speaker 2 (38:17):
So what does an emergency support system really look like?
In that context?

Speaker 4 (38:22):
This can be a proactive plan that retirees create before
trouble hits. Maybe it's a set amount in a savings
account that they only plan to use if certain conditions
come up Let's say, maybe like a health crisis or
family emergency. Or it could be a clear agreement about

(38:45):
what they are willing to help with and what they
are not.

Speaker 2 (38:49):
Okay, So what is the mistake that involves the debt
like credit cards piling up or a personal loan that
went sideways. Should parrots step in help should come with guardrails.
Parents should help their adult child set up a payoff
plan using strategies like the debt avalanche or debt snowball.

(39:10):
And if everyone agrees that the parent will be the
budgeting budy, insist on seeing that plan in action before
committing any funds. Helping with structure is far more valuable
than just writing a check. What if the parents feel
like they've failed because their adult child keeps making financial missteps.

Speaker 4 (39:31):
That's fairly common, but not necessarily fair. Adults are going
to make their own decisions, good or bound. The most
important thing parents can do is model strong financial habits,
provide education and boundaries, and stay focused on their own stability.

Speaker 2 (39:51):
Okay, well, let's pivot and look at people who want
to give big, perhaps contributing to a wedding or a
home purchase.

Speaker 4 (40:00):
Should they do, they should start planning very early. Strategic
gifting within iris limits can reduce tax burdens, which is good,
but again, the key is it must fit within your
overall financial plan. You don't want generosity today to compromise
your retirement tomorrow.

Speaker 2 (40:21):
And if a listener doesn't have the cash on hand
right now but wants to support a future wedding or home.
What should they be doing right now today?

Speaker 4 (40:32):
They could start saving in a separate family gifting fund,
just like they would for retirement or for a vacation.
It keeps the money earmarked and ensures they're not dipping
into their core retirement assets. Talking to their financial advisor
or a state planning attorney would be important, especially if

(40:53):
they're further along in life. They can consider building these
gifts into an estate plan so they may leave an
inheritance with purpose.

Speaker 2 (41:03):
Kelly, We've covered a lot of ground today, So while
we are wrapping up, what can our listeners do If
they have questions about helping their adult children well, John.

Speaker 4 (41:15):
They can certainly contact us at Kelly Financial. Our advisors
bring clarity to complex decisions. We can provide structure and
realistic boundaries in these moments. Most importantly, a safe space
for honest conversations can be created, which can turn tension

(41:37):
into teamwork. We also have a free investor guide called
Your Retirement Income Planning Checklist. It has a chapter dedicated
to reevaluating financial goals that thoughtfully reminds readers to reflect
on current objectives before making any changes.

Speaker 2 (41:58):
As always, Kelly very thanks again for joining us this morning.
To get the guide and to make a complimentary appointment
with the Kelly Financial Advisor. Called eight eight eight eight
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
That's all the time we have for now. Thanks for
joining me. You're listening to Safe Money Strategies the radio

(42:21):
show heard right here on WRKO and streaming on the iheartapp.
We are in our twentieth year broadcasting, so thanks for that.
That is a real gift. Stay tuned and we'll be
back in a moment.

Speaker 3 (42:35):
Safe Money Strategies with John Bodris and Kelly Kelly. Call
Kelly Financial on eight eight eight hundred eighteen eighty one
or go to Kelly Financial dot org.

Speaker 2 (42:48):
Come retire with us.

Speaker 4 (42:49):
I'm Kelly Kelly from Kelly Financial. Is your financial advisor
a fiduciary? In other words, are they legally required to
act in your best interest? Miche complementary book, Retire Your Fear,
Plan Your Future, explains what a fiduciary is and will
help you understand if an advisor is really putting you first.
For the book, call eight eight eight eight hundred and

(43:12):
eighteen eighty one or email Kelly at kellifinancial dot org.
We're CALLI Financial. Come retire with us.

Speaker 1 (43:21):
Welcome back, I'm Mike du said, and you are listening
to safe money strategies. Joining me in the studio this
morning is Charlie Gable. Over the next decade, the US
government is projected to pay almost thirteen trillion in interest
on the national debt. Let that sink in for a moment,
twelve point nine trillion just to cover interest payments. This

(43:42):
marks the highest amount of interest in any ten year
period in US history, and more than doubles the total
spent on interest over the last twenty years.

Speaker 5 (43:50):
Now, to put this staggering figure into perspective, let's break
it down. It equates to roughly thirty eight thousand, six
hundred dollars per person in the United States. It's about
four times the cumulative cash deficits projected for Social Security
over the next decade, and is nearly twice the cost
of the federal government's entire response to the COVID nineteen pandemic.

(44:14):
But the implications of this aren't just about the numbers.
They're about priorities. According to the Congressional Budget Office, if
current trends continue, interest on the national debt will become
the single largest item in the federal budget by twenty
fifty one, surpassing even Social Security. Let's think about what
this means for the future. Resources that could be allocated

(44:35):
to infrastructure, healthcare, or education will increasingly go towards servicing debt,
and as interest payments grow, the likelihood of tax increase
also grows.

Speaker 1 (44:46):
While a new administration may prioritize tax cuts, there are
some realities to consider. Any significant changes to tax policy
will require bipartisan support in Congress, which could be challenging
given the already staggering national debt. According to the nonpartisan
Committee for a Responsible Federal Budget, Trump's proposed tax changes

(45:07):
could add seven point seventy five trillion to the national debt,
with estimates ranging from one point sixty five trillion to
as high as fifteen point five trillion.

Speaker 5 (45:17):
And this is on top of the already exceeding thirty
six trillion dollar national debt. Adding another seven to eight
trillion dollars could make future tax sikes inevitable. Whether those
increases happen sooner or later, there are critical risk to
consider as you plan for your financial future. Ignoring this
issue could leave you one prepared for the potential financial impact.

Speaker 1 (45:39):
Now, the question is, how can we get your partner
Uncle Sam to allow you to avoid potential higher future taxes.
The answer is simple, We pay him his share today.
This is precisely what happens when you convert to a
roth IRA. The amount you want to convert is added
to your other income for the year, and that becomes
your total taxable income when you file your tax return. Essentially,

(46:02):
it's treated the same way as if you had taken
a distribution from your traditional IRA. That distribution is counted
as tax will income and you pay Uncle Sam what
you owe at today's tax rate. A WROTH conversion works
exactly the same way. By paying taxes now, you're locking
in today's rates rather than rolling the dice on what
future tax rates might look like.

Speaker 5 (46:24):
But here's the catch. Where will the money come from
to pay the taxes on the conversion. This often overlooked
point can make or break the financial benefits of a
WROTH conversion. Paying the conversion tax directly out of your
IRA balance, essentially withdrawing from the same account you're converting,
can significantly reduce the long term benefits of that strategy.

(46:44):
And here's why. When you use IRA funds to pay
the taxes, you're not only reducing the amount of money
that gets converted to the WROTH, but you're also sacrificing
the opportunity for that money to grow tax three in
the future. Now, let's say you're converting fifty thousand dollars
and you owe six thousand taxes. If you take the
six thousand from your IRA to pay Uncle Sam, only

(47:06):
forty four thousand gets moved to the raw. That's about
six thousand dollars less working for you and compounding tax
ready for the rest of your life.

Speaker 1 (47:14):
The optimal approach is to pay the taxes from non
retirement funds such as savings or other taxable accounts. By
doing this, you ensure the entire amount you intended to
convert actually makes it into your roth IRA. This not
only optimizes the benefits of the conversion, but also keeps
you on track toward building a solid tax free income
stream for the future. Ultimately, WROTH conversions can be an

(47:37):
incredibly powerful strategy, but only when done thoughtfully. Factors like
current in future tax brackets, way to source the funds
for the conversion tax and your overall retirement goals all
play a critical role. This is why it's so important
to work with the financial advisor who is knowledgeable on
the topic of roth conversions before making any decisions.

Speaker 5 (47:57):
So as we close today's show, let me leave you
with this. The key to optimizing the benefits of a
wroth conversion isn't just about deciding whether to do one.
It's about crafting a strategy to do it most efficiently
based on your unique circumstances. A well thought out plan
considers your current and future tax brackets, your income needs,

(48:18):
and where you'll find the funds to pay the conversion
taxes without disrupting your overall financial security.

Speaker 1 (48:23):
The benefits of a roth conversion could be substantial, but
only if the process is handled carefully and strategically. That's
why we're here to help. Our team focuses on creating
personalized plans to ensure your roth conversion aligns with your
financial goals and helps minimize potential pitfalls.

Speaker 5 (48:40):
So if you're ready to explore how a wroth conversion
strategy could fit into your retirement plan, give us a
call at eight eight eight eight hundred eighteen eighty one
to schedule your complementary consultation. Together, we'll evaluate your situation,
design a plan that works for you. With that, I'm Charlie.

Speaker 1 (48:58):
Gable and I'm like you said us next week for
more safe money strategies.

Speaker 7 (49:08):
Joining us now, as she always does that, this time
she is the co founder, president CEO of Kelly Financial Services,
and yes, that is her wonderful name, Kelly, Kelly, Kelly, how.

Speaker 4 (49:27):
Are you good morning, Jeff? I am good. Sometimes early
retirement can happen sooner than expected, whether it's my choice
or not. It comes with big questions. Do you have
enough saved? How long will your money last? What about
rising healthcare costs or market uncertainty. That's where a fiduciary

(49:51):
financial advisor makes all the difference. At Kelly Financial, our
advisors are fiduciaries who are legally an ethically obligated to
put your best interest first. We will help you build
a personalized plan, one that balances your lifestyle goals with
real world financial planning. So if you are planning for

(50:13):
early retirement or we're forced into it, don't just hope
for the best. Give us a call or email Kelly
at Kellyfinancial dot org, or go to our website for
our radio rewind.

Speaker 7 (50:26):
Eight eight eight eight hundred eighteen eighty one, call eight
eight eight eight hundred eighteen eighty one, or if you prefer,
you can email Kelly directly Kelly at Kellyfinancial dot org,
Kelly at Kelly Financial dot.

Speaker 3 (50:43):
Org Safe Money Strategies at eight eight hundred one eight
eight one.

Speaker 10 (50:53):
Family is everything. Don't ask me why I was chosen
to be one of the main people always talking about
how great family is. I was a miserable human being. Really,
I didn't know how to have a family. How do
you have a family? First of all, you have almost
no hair and everybody steals your hair brush. That means
you're in a family. You have no hair, and you

(51:14):
have your own creamarans that you buy at Stop and shop,
like the fruit toast kind. It's like green. I don't
have a lot of hair, but I'm gonna feel good
in the morning when I put this cream rance on
my hair. It's gonna smell like a glade in the Everglades.

Speaker 5 (51:27):
I don't know.

Speaker 10 (51:28):
You know, you're two hundred and twenty pounds. You get
into the shower, you're brushing your teeth at the same
time as you don't have time, and you reach for
the cream rance and guess what, it's not there? Do
you know what that means? If you're single and you
reach for that cream rance, it's gonna be there. If
you have a family of people. I don't know who's
got the most hair per square inch, but we could

(51:48):
win the Olympics hair thickness contest in our house. So
now you're in a shower, you're in a relaxing place,
and you're gonna have to get out in the cold air.
You're gonna have to put your head around it corner
you're dripping on, or you're gonna have to yell through
the house because everybody's doing their thing in the morning.
Where's my cream rants? Then you have a little person

(52:08):
I don't know who it might be. They'll come and say, oh,
I borrowed it. So then you say, can I get
it back? I really like my cream rants? Oh sure, pop,
So you get your cream rents back. That means you're
in a family, because when you single, you don't do that.
Everything's lined up. You're shaving, brush, your after shave, your
cream rents, your toothpaste, your floss. Well, that's not family life, unfortunately,

(52:32):
unless you live in some kind of family that I
don't know. Those are the people you love. If you
come home, you drive forty five minutes to get home,
you talk on the phone, you work the whole way home.
You want to get to the house and watch O'Reilly
because you get home at seven and that's all you
want to do. He gets on at eight, so you
want to get that thing set up. You walk into

(52:53):
the living room and there's people running on platforms and
they're focusing on we want on the thing, and they're
jogging through the woods with little fake animals. You're in
a family, ladies and gentlemen. I'm gonna say, you know what,
I really want to watch O'reiley. And they're not saying no,
but they kind of look at you and like they go, oh,
we're jogging on the Wii. So you're going into the
bedroom on a little twelve inch TV and you're gonna

(53:15):
eat your dinner and you're gonna watch O'Reilly in there,
and they're gonna be out there jogging. That's how you
know you're in a family. If you're single, you come home,
you have an automatic light dimmer. You put it on
and it comes up. The curtains pulled back your big
screen TV flashes on, there's O'Reilly and you got them
t voted for a week. I go to TiVo, Ladies
and Gentlemen. How much is left on my TVO? Eight

(53:36):
percent left? So I'm trying to record a football game
because I want to take the family out on Sunday.
There's not enough room. So then I've got twelve hand
them Ontannis. There's a cartoon named Pepe. I got like
twelve episodes of Pepe, fifteen Scooby doos Kelly's got her
soaps on there. That's like twenty percent. So that's what's
on the TVO. So I'm not gonna tvo a football game.

(53:59):
So then we had a big family meeting. I said, look,
we're going to divide the TVO. There's four of us here,
will each get twenty percent. And there's an additional twenty
percent of that storage room on the recording TVO that's optional.
That's all the family can share that. And then all
of a sudden we're having a big fight over the
TVO space. Why I've got to have Hannah Montana. We
record Ladies and Gentlemen full house at every moment of time.

(54:22):
Ladies and Gentlemen on Earth. Remember how you could always
watch Lucy it was always on somewhere. Well, Full House
is always on somewhere, but we have to record it
at my house. That's how you can tell you have
a family. That is the joy, the joys of life,
having a family, loving the people. But I will be
at their house, ladies and gentlemen, someday I will come there.

(54:43):
I will take over there den. I don't know what
the computers are going to look like. Then I'm going
to take it over. I'm going to be there with
my suitcase one night. They're going to answer the door.
It's Pop. What's he doing? I said, I'm moving in.
What do you mean? I'm moving into your den? I
want the computer, I want the remote, and I'm want
the wei whatever it's going to be called. And it's
going to be like a space suit you get into

(55:03):
float up in the air. Then they'll say, wow, we
have a family, don't we. So anyway, we'll be back
in just a few short minutes.

Speaker 3 (55:14):
There's a book 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 balance portfolio. For
the guide, call eight eight eight eight hundred eighteen eighty

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

Speaker 3 (55:50):
Senior safe money Strategies with John Budris and Kelly Kelly
eight eight eight hundred one eight eight one.

Speaker 2 (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. You see, if
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. All Right, see you next week.