Kelly Financial: Saturday, February 22, 2025

Episode Transcript

Speaker 1 (00:12):
This coming 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 eight on the AM dial
and online from just about anywhere where we're creeping toward
the end of the month. And that means that when
you go to your mailbox, you're finding these little notices

(00:44):
about tax information, little bits and bobs that you'll put
for your accountant and your tax professional to make sure
that when you file your taxes, you pay as little
as you can lawfully. That is the goal. And when
we come back later in the show, Kelly Kelly and
I that is the CEO of Kelly Financial, we're going

(01:04):
to talk about those particular strategies to keep more money,
your money in your pocket. So let's all work with
Elon Musk together to keep more of our money where
it belongs, serving us, not someone else. And when we
get back, we will be hearing a word from young

(01:25):
William Kelly about his European vacation. He wasn't a vacation,
it was a learning experience. We will of course be
hearing from the advisors at Kelly Financial, so don't go away.

Speaker 3 (01:36):
We'll be right back.

Speaker 4 (01:41):
Safe Money Strategies with John Budris and Kelly Kelly called
Kelly Financial on eight A eight eight hundred eighteen eighty one.
We'll go to Kelly Financial dot org.

Speaker 5 (01:54):
I'm Kelly Kelly from Kelly Financial. Tax season is upon us,
and it's not just about fire. It's about developing a
tax efficient strategy. Have you thought about withdrawals from your
IRA or four oh one K and how they'll impact
your taxes? What about deductions? Social Security taxes or rmds.

(02:15):
A smart plan made today could mean more savings tomorrow.
The advisors at Kelly Financial know the ins and outs
of smart retirement tax strategies and can help you every
step of the way. We also have a free investor
guide called Tax Explore, which contains ten tax strategies that
might enable you to keep more of your money in

(02:37):
your pocket. Take the guestwork out of tax planning for
the guide, or for a free consultation with a Kelly advisor.
Call eight eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org where Kelly Financial. Come
retire with.

Speaker 4 (02:53):
Us Save Money Strategies called eight eight eight eight hundred
eighteen eighty one. Visit Kelly Financial dot org.

Speaker 6 (03:03):
Come retire with us.

Speaker 4 (03:08):
Good morning to you, and no, do not adjust your radio.
I am not Kelly Kelly. I am in fact Rob Townsend,
but I have beside me here in my studio in London,
in the UK, William Kelly Junior. William, Welcome to the
studio and welcome to London. Despite the fact that you've
been here for several days already.

Speaker 3 (03:30):
Rob, thank you for having me. It's a joy to
be here.

Speaker 4 (03:33):
So I suppose, really, what's your initial take of my hometown, William.

Speaker 3 (03:39):
I have to say it's beautiful. It's also very historic.
And hearing the story about the Metroland and how all
these homes were originally built so people would take the trains,
I found that very interesting. It's a lovely little place
and I think you're living in history, which that to me.
I think that has a level of value that cannot

(04:00):
be replaced because how old is your home.

Speaker 7 (04:02):
Rap.

Speaker 4 (04:03):
That's interesting because you mentioned Metroland there, and Metroland really
began to develop in the nineteen thirties. The idea of
metroland land that was available was bought up by the
railway companies for the sole reason of building houses. And
why because then if people lived in those houses, they

(04:26):
would use the railways. And that's precisely what happened. So
to answer your question, William, this house was constructed in
nineteen thirty eight when I moved here, as I was
only the third owner. I moved here in ninety one,
and it still had the original sales details. And I
can tell you that this house in nineteen thirty eight

(04:50):
sold for seven hundred and seventy pounds.

Speaker 3 (04:54):
Isn't that something? Imagine buying your first home for seven
just a little over seven hundred pounds. That is astonishing
to me.

Speaker 4 (05:03):
I mean, here we are, well today, what sixty nine
million people in this very small country. So as you
probably already observed that homes are not very big.

Speaker 3 (05:15):
No they're not. Eight point six million people live in
London alone. It's just a dense, melting pie, similar to
the United States, and the respect that it's such a
diverse country, but so different in the respect that you
see all sorts of different cultures in one dense location.
You look to your left, there's someone from Pakistan. You
look to your right, there's someone from Poland. And that

(05:37):
is very unique. That is something that America as a country,
we can't experience because we're so big. It seems that
everybody in London wants to talk or is willing to talk.
Rather that I've spoken to, but not a single person
wanted to do an interview today.

Speaker 4 (05:52):
It's just cast you back to your first full day.
You had your first experience of the two you were
on the Jubilee Westminster.

Speaker 3 (06:02):
I get off the tube with you and Lena. We
hurry up the stairs and we exit the station. I
looked to my left, I looked to my right, and
there you are standing there, And you said to me,
William looked behind you. I look behind me in Big Ben,
and all of its might and glory is standing there
overlooking me. In the entirety of London. I could not

(06:23):
fathom that.

Speaker 4 (06:24):
Just in case people don't get the idea, Big Ben
is actually the bell inside what they call the Elizabeth Tower.

Speaker 3 (06:32):
The River Thames is right there. Everything you could possibly
want to see initially in London is all in that
small area. The statues featured Gandhi, they featured Churchill, they
featured just about every influential person.

Speaker 4 (06:49):
And then we moved onto Downing Street, but you couldn't
really see too much.

Speaker 3 (06:54):
Street bar security guards with assault rifles. It was very
serious street. We got a photo with that. We got
a telephone booth photo, which some still do work, but
a lot of them are there just for show. And
luckily we went to one right by Downing Street which
there was nobody around it, and so you and Lena

(07:16):
got amazing photos of me in the telephone booth. And
then we decided to walk, you know, straight back towards
where Westminster is and we saw Buckingham Palace, which was
absolutely gorgeous.

Speaker 4 (07:27):
Then I decided to take you on a little bit
of a mystery ride. We walked up to Trafaugar Square
and we took a bus.

Speaker 3 (07:36):
We hop off the bus and there's this office building
and this unmarked door and Rob takes a right immediately
into this door, opens the door, and I'm thinking to myself,
where are we going? Lene is there, and I'm there.
We're following Rob go down the stairs and we're in
this car park. Why are we in a car park?
I had no idea what I was expecting. And to

(07:57):
the left of us we see part of the Roman
Wall that is surrounded by a little bit of glass
in the middle of an underground car park. Just to
give a quick perspective of how old this wall is.
It was built in the year two hundred AD, so
it is eighteen hundred years old, sitting in a car park,

(08:21):
completely untouched, unbothered. Nobody knows about it. I think the
best way to hide an artifact from being damaged from
taurus is by making it so conspicuous that you would
never even guess that it'd be there. Honestly, it was
the best surprise you could have given me, because I
love history.

Speaker 4 (08:39):
Yeah, and the London Wall does exist at more surface
level around London. Don't think that's the only bit. But
it is an amazing experience. So that was our first
day and our second day. We did something that's been
on your bucket list really for quite some time.

Speaker 3 (08:57):
Yes, it has been now for those you who know,
my father loved the Beatles. Naturally, since I'm my father's son,
I inherited that love for the Beatles. Abbey Road is
a great album. Not my favorite. The White Album is
my favorite, but abbey Road is a great album. And
we were able to cross abbey Road. We were able
to get good photos and We were also able to

(09:19):
get captured on the live Abbey Road camera, so our
family and friends could see us cross the road and
we were able to wave to them. And then we
were able to go into the gift shop and get
a couple of trinkets. And that was a lot of
fun to actually see Abbey Road studios with my own
eyes where all these greats recorded, especially the Beatles. I

(09:40):
knew Dad was happy that happened.

Speaker 4 (09:42):
And I don't know if you guys are aware, but
in my history, I was a sound engineer in a
leading recording studio in London for twenty seven years and
that gave me, if you like, a ticket into places
like Abbey Road and yep, I've stood in that studio
where many orchestras have played, and where indeed the Beatles

(10:03):
have played as well. But I also took you through
my old stumping ground of Saint John's Wood, because as
a rather young man I used to live in Saint
John's Wood. It sounds very posh, but it was actually
above a butcher's shop, but it was lovely. And we
then took a walk into Regent's Park, which was lovely.

Speaker 3 (10:22):
Oh yeah.

Speaker 4 (10:23):
And then I introduced William to Camden Town.

Speaker 3 (10:27):
Camden Town, so many markets. It was a cool experience.
We were able to see the Camden Locke and we
actually went into one of the Vinyl shops and got
like a Best of David Bowie CD. So I got
that for the Volvo so I can play that in
the CD player.

Speaker 4 (10:43):
Hey William, We've got a lot more to talk about,
So why don't we just take a quick break now
and we'll come back and talk some more safe money strategies.
I brought to you by Kelly Financial Services. Call eight
eight eight eight hundred eighteen eighty one or go to

(11:07):
Kelly Financial dot org. Come retire with us.

Speaker 8 (11:12):
Let me tell you about Kelly Financial Services. Retirement isn't
just about beach days or playing golf. You have to
consider taxes because Uncle Sam doesn't retire when you do.
In fact, if you're not careful, he'll take a big
bite out of your savings. If you start pulling from
your four to oh one k, sell that second home

(11:33):
or inherit some money, you're gonna get hit with a
tax bill. And if you don't have a plan, your
wallt's gonna feel it. The advisors at Kelly Financial know
the ins and outs of tax efficient withdrawals, rough conversions,
estate planning, and will help you keep more of what
you've earned. Don't go into retirement unprepared. For a free

(11:54):
retirement consultation with a Kelly Advisor. Call eighty eight eight
eight hundred eighteen eighty one eight eight hundred eighteen eighty one,
or email Kelly at Kelly Financial dot org. That's Kelly
at Kelly Financial dot org.

Speaker 4 (12:12):
Safe Money Strategies call eight eight eight eight hundred eighteen
eighty one.

Speaker 3 (12:20):
Welcome back.

Speaker 4 (12:21):
I'm speaking with William Kelly Junior here in my studio
in London Town in the United Kingdom. And Sunday dawned
and I thought it might be quite a nice idea
to visit the Royal Air Force Museum. And we looked
at all the planes and everything associated with that, and
then William suddenly said, I think I want to go

(12:43):
to the British Museum, Ladies and gentlemen. It was like
a butterfly opening its wings for the first time. And
I looked at the buses. I said, William, there is
a bus in three minutes if you want to do
that and get back to Edgeware, and so he scooted
off and I couldn't shout out, don't forget to take
the charing Cross branch on the Edgeware line. So what happened, William?

Speaker 3 (13:04):
This is the first time that I decided to just
go off on my own. Like you just said, I
accidentally took the wrong route on the Northern Line. So
when you go down the Northern Line, it goes into
two subdivisions. There's via Bank and then there's via Charing Cross.
I was supposed to go via Charing Cross. I did not.

(13:26):
I went via Bank because I thought, oh, okay, well
here it is. Whenever I realized that I had past
taught in court and I was on the other subdivision,
I got out immediately. So I decided to walk to
the British Museum. Now the British Museum has a little
special place in my heart because Murray, Madeline and I
we took the same ap course in high school APR History,

(13:49):
and so you know, I was blessed to have a
great class. We studied a lot from the British Museum,
like the Standard of Er or the Final Judgment of
Hugh Neeffer. All these ancient either neolithic or ancient Egyptian
or ancient Roman or Greek work, including the Parthenon marble sculptures,

(14:09):
and obviously the Rosetta stone is there, so that's kind
of the selling point. It's also a massive museum. There's
tons of space, there's a great big open court, there's
a bunch of cafes, a bunch of gift shops, and
then if you just keep walking straight, you'll end up
in the African area. Now that's where you start out

(14:30):
in and a lot of the African art. We also
had studied actually to see history, especially history that we
learn was awesome.

Speaker 4 (14:39):
And so over the next few days again you went
out by yourself to explore other museums here in London.
Luckily for us in London we had three major museums
all within a short walk from each other. So we've
got the Science Museum, the Natural History Museum and the
Victoria and albat So that was your next stage.

Speaker 6 (15:02):
And then from there you visited some art galleries. That's correct, Yes,
I did, and I started at the National Gallery. It
was actually really beautiful and from the outside Ambian side,
the outside folks were playing music. There was this very
talented guitarist and I was able to record some of
his music, and I was able to go in and
check out some of the art. Certain things were closed off,

(15:24):
however I was able to see a decent amount of
art pieces and sculptures. The National Gallery was nice, but
frankly I didn't like it as much as I liked
the Tate Britain. Frankly, I liked that way more and honestly,
a lot of the art that was featured at the
Tate Britain was more beautiful in my opinion. There were
a lot more things that I was a little more
interested in. But what made my experience so great was

(15:47):
a lady by the name of Maria. Maria is eighty.

Speaker 3 (15:51):
One years old and when I went, I really wanted
to interview somebody, to ask someone who has a story
to tell, whether it be at a museum or just
someone in the street. But unfortunately everybody was willing to talk,
but nobody was willing to have an interview, and Maria
asked not to be interviewed, and I respected that, but
she spent at least an hour and twenty minutes with me,

(16:14):
going through every piece and explaining the story. And Maria
is a lady from Portugal and she moved to England
about I think twenty something years ago. She just went
into complete detail and then she showed me some of
the poetry mosaics. I mean, we went past the classic
paintings that were all familiar with from great artists, but

(16:36):
pushed me more to the modern area, where I probably
wouldn't have explored as much because I would say, oh,
that's a funky sculpture, who cares? But she really took
the time and explained that even though I don't like
modern art necessarily, she said, they have a story and
they're trying to convey something and once you figure it out,
it's actually kind of interesting. And she was right. So

(16:57):
if you are more into something like the Museum Natural
History of the Museum of Science and you don't care
about art or history, I recommend those museums too, because
I ended up going there. So there's just about a
museum for everything in London.

Speaker 4 (17:10):
And the good thing is the vast majority of museums
are free. Now, William, I think we should explain why
we're feeling just a little bit jaded this morning, ladies
and gentlemen. Last night, Lena and I took William to
a local league football match. Now in the US you

(17:32):
would call it soccer. We call it football, for that's
what you do, you kick a ball with your feet.
It was an important match for Barnet because they are
at the moment top of the league and so they
have to retain that position in order to gain promotion
to a higher league for the next season.

Speaker 3 (17:50):
My experience was absolutely phenomenal. Ladies and gentlemen. York City
is about five hours away from Barna. Imagine you the
fan getting on a tour bus with a bunch of
other fans for a super important match from York City,
driving five hours and the team as well to Barnet.

(18:12):
That's a dedicated fan base, so dedicated that they had
filled the entire away team stands. Barnett was also ready.
They had drums ready, they had chance ready. The energy
was irreplaceable. The match was so energetic. At the beginning,
Barnett scored a goal, the crowd went wild. Everybody jumped

(18:34):
from their seats, including me, because honestly, I just became
a Barnet fan. That a media instant, you know, thanks
to Rob. I met a lot of interesting people at
that game. I met this young boy behind me. His
name was Sam, and Sam certainly had a lot to say.
He was cheering and shouting. I think he was probably
about eight years old, but he's probably Barnett's biggest fan,

(18:54):
largest fan. And you're opinion, who's gonna win this match?

Speaker 6 (18:58):
What?

Speaker 3 (19:00):
Yeah, that's right. There was this gentleman sitting to the
right of me. He's about seventeen years old, but he
also lived in New York for at least four years.
I asked him, I said, how's the public transportation compared
to Brooklyn in here? And he said, Brooklyn has nothing
on the English transportation, especially the London transportation. It was
an amazing score, it was an amazing final result. It

(19:22):
was William.

Speaker 4 (19:23):
It was the best result Barnett winning three goals to
one and they got those very important three points. Wonderful
and it was a perfect way to bring to a
close your stay over here. It has been an absolute
joy to have you stay with Lena and myself in

(19:44):
our rather modest home, and we both really hope you've
had a fab time and you'll return to Boston with
some really happy memories.

Speaker 3 (19:54):
I will absolutely and undeniably, ladies and gentlemen, I want
to dedicate this portion of the interview to Rob and Lana,
because not only did they house me and they took
me in with open arms, but they fed me every day.
They guided me and taught the two. They taught me everything,
the whole system and the whole shebang. They told me
where to go. They were an absolute helping hand and

(20:18):
something that's completely irreplaceable.

Speaker 9 (20:20):
So Rob, thank you, and Lana William the pleasure was
all ours.

Speaker 4 (20:32):
By ladies and gentlemen. After the break, Mike two Set
and Charlie Gable will discuss the idea of rebalancing your portfolio,
so don't go away. Safe money strategies brought to you

(20:56):
by Kelly Financial Services called eight A eight eight hundred
eighteen eighty one or visit Kellyfinancial dot org. Hi.

Speaker 5 (21:05):
I'm Kelly Kelly. For twenty one years, Kelly Financial Services
has been serving people like you today. We are still
guided by the with and wisdom of my late husband
and co founder Bill Kelly.

Speaker 7 (21:18):
When's the best time to plant a tree? Twenty years ago?
When's the second best time to plant a tree? Today? Tomorrow?

Speaker 5 (21:25):
Growth in all aspects of life are the hallmarks of
a fulfilling retirement. We're Kelly Financial. Come Grow with us
and come retire with us.

Speaker 1 (21:35):
Good morning, and welcome to the show. You are listening
to safe money Strategies, and my name is Mike Dussett,
Chief operating officer at Kelly Financial. The economic landscape is
always shifting, and those changes can easily throw your investments
and retirement plans off balance. Whether it's falling interest rates,
potential tax increases, or unpredictable market swings, these events can

(21:58):
potentially have a big impact on your retirement portfolio, possibly
making it riskier or more conservative than you originally intended.
That's why now is an important time to make sure
your portfolio is aligned with your risk tolerance and your
financial goals as well as future needs. Rebalancing isn't just
another task on your financial to do list. It's an

(22:20):
important strategy to help protect your assets and help keep
you on track for a confident retirement. In today's show,
we'll talk about the potential risks of neglecting regular portfolio
rebalancing and the steps you might want to consider to
help ensure your retirement isn't taking on unnecessary risks. Let's
dive into ways you can stay in control of your

(22:41):
financial future.

Speaker 10 (22:42):
Good morning everyone, My name's Charlie Gable, investment advisor at
Kelly Financial. With following interest rates, reducing retirement income and
higher taxes potentially on the horizon, many are wondering if
their retirement plans are still on track. If you're concerned,
reach out for a complementary portfolio review at eight eight
eight eight zero zero one eight eight one, or visit

(23:04):
our website at Kellyfinancial dot org to learn ways you
can help protect your future and stay on course to
pursue your retirement goals.

Speaker 1 (23:12):
Whether you're already retired, soon will be, or retirement is
still decades away, now might be the appropriate time to
take steps to help protect your future. Reach out for
a complementary portfolio review and let us show you ways
we can assist and help them make sure your retirement
dreams come true.

Speaker 10 (23:30):
Rebalancing a portfolio is all about the process of adjusting
your asset allocation back to its original or updated target proportions.
Over time, certain investments may outperform others, causing your portfolio
to become unbalanced and no longer aligned with maybe your
risk tolerance or financial goals, or even time horizon. Without

(23:50):
regular rebalancing, a portfolio that was initially designed to be conservative,
could drift into a much risk your allocation, or even
become too conservative, depending on the market conditions. Let's say,
for example, you've embraced the principle of diversification, knowing that
putting all your eggs in one basket is a risky approach,
so your retirement portfolio is likely spread across a mix

(24:12):
of assets such as stocks and the more conservative instruments
like bonds, fixed rate annuities, or even bank cities. The
percentage allocated to each depends on your age and risk tolerance.
Generally speaking, now, the closer you are to retirement, the
less risk you should take with your savings, as you
have less time to recover from many potential market losses.

Speaker 1 (24:33):
Let's consider the hypothetical case of Mary, a conservative investor
approaching retirement. Throughout her working years, Mary avoided the stock
market due to her risk averse nature. When she retired
in twenty twenty, she sought professional investment advice and was
recommended a sixty to forty portfolio, so sixty percent in
stocks and forty percent more stable protected instruments. Like many

(24:57):
conservative investors, Mary balked at the idea of having that
much exposure to the stock market, she insisted on a
lower allocation, closer to thirty percent. After much discussion with
her adviser, she settled on a fifty to fifty split,
although she still failed she might regret this decision.

Speaker 10 (25:15):
So what happened next? Over the next three years, the
market soared. The SMP saw gains of eighteen and twenty
eight percent in successive years. Mary couldn't have been more pleased,
and her only regret was not having allocated more of
her savings to stocks. So when her adviser recommended rebalancing
to reduce her stock exposure, she thought he was crazy.
After all, why cut back on an investment that's performing

(25:37):
so well.

Speaker 1 (25:38):
Mary's situation highlights a common struggle many people face when
it comes to rebalancing. She had initially been reluctant to
have more than fifty percent in stocks, but after several
years of growth, her portfolio was now heavily weighted in
favor of equities, perhaps seventy percent equities, thirty percent fixed income,
or even maybe as much as eighty percent equities. While

(25:58):
she may have not realized it, the risk in her
portfolio had increased significantly, well beyond what she would have
agreed to in twenty twenty.

Speaker 10 (26:06):
And guess what came next. Twenty twenty two, the S
and P dropped by eighteen percent, and you might think
no problem. Mary still had significant gains from previous years.
But this is where human nature complicates things. As Mary
watched the market decline, fear set in. The more it dropped,
the more she believed that unless she made a change,
she could lose all her previous gains or worse. Although

(26:28):
she was fundamentally a conservative investor, the market highs had
lured her into taking on more risk than she was
ultimately comfortable with. But when the downturn hit, she reverted
back to her cautious nature, just as many investors do
when faced with that sudden market volatility.

Speaker 1 (26:44):
Now this brings us to a key point. The classic
advice of by low sell high is much harder to
follow in practice than in theory. Human nature often leads
us to do the opposite. We might be afraid to
invest when the market is down, and when it's up,
we get greedy and chase even more gains. Without rebalancing,
you risk becoming too heavily weighted in one acid class,

(27:06):
which can't potentially expose you to greater losses when the
market inevitably turns.

Speaker 10 (27:11):
Today, we're facing a variety of challenges that could have
a direct impact on your retirement savings and overall financial plan.
It's not just about the usual ups and downs of
the stock market. We're dealing with economic shifts, legislative changes,
and global uncertainty that could fundamentally affect your financial future.
The potential impact of these challenges could be severe. The

(27:33):
value of your retirement portfolio could fluctuate, taxes may rise,
and your future income streams could be affected. For many retirees,
these factors could reduce their purchasing power, make it harder
to cover living expenses, or potentially cause them the run
out of money sooner than planned. However, these same challenges
could also present some opportunities, but only if you're in

(27:53):
a position to take advantage of them.

Speaker 1 (27:55):
The problem is no one can accurately predict what the
future will bring react to a variety of factors geopolitical events,
economic trends, and even election results, many of which are
difficult to anticipate. This uncertainty is why it can be
so important to stay proactive when it comes to managing
your retirement portfolio. Jollie and I need to take a
quick break, but we'll be back later to discuss additional

(28:18):
steps you may want to consider to help ensure your
retirement isn't taking on unnecessary risks.

Speaker 4 (28:24):
Stay tuned Kelly Financial Services eight eight hundred eighteen eighty one.

Speaker 2 (28:34):
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

(28:57):
eighty one or email Kelly at Kelly Fane Financial dot org.
We're Kelly Financial. Come retire with us.

Speaker 5 (29:04):
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

(29:26):
Kelly at Kellyfinancial dot org to set up a free
retirement consultation. We're Kelly Financial. Come retire with us.

Speaker 4 (29:34):
Safe Money Strategies with John Budris. I'm Kelly, Kelly call
the team on A eight eight hundred eighteen eighty.

Speaker 2 (29:42):
One and we are back. I'm John Budris, the co
host of Safe Money Strategies, and thanks for joining me
this morning. Well, it is twenty twenty five and we're
just looking forward to all of the new possibilities, and
of course that means it's tax season, not a good

(30:04):
thing to look forward to. I have my little box,
all my mail comes in with all my thing for
my taxes. And if you are already in retirement or
you're heading there soon, this is the time of year
you really need to be sharply informed because tax season
has a lot of consequences, particularly for those who are
retired or about two now. Many of you have worked

(30:27):
hard your whole life to build what you want to
live on for the rest of your golden years, let's
call them. And the last thing you need is Uncle
Sam dipping in deeper than he should. So with a
shifting tax landscape, it's crucial to know what's changed, what's new,
and what you need to do to protect your retirement income.

(30:50):
So joining me today as she does each week, is
Kelly Kelly, the CEO of Kelly Financial, and we're going
to walk through some of the strategies for navigating tax
laws and this tax season to maximize your savings. Kelly,
good morning, and welcome.

Speaker 5 (31:06):
Good morning, John. Happy to be here with you on
this fine Saturday morning.

Speaker 2 (31:12):
Kelly. Taxes don't stop when someone retires, and people could
be paying more than they used to even during their
working years. So what's changing this year that people need
to know about to prevent that from happening.

Speaker 5 (31:27):
Well, John, there are a few big changes that retirees
and pre retirees should pay attention to this tax season. First,
pay attention to higher standard deductions. Since the IRS has
increased the standard deduction, fewer retirees will need to itemize,
which could lower their overall tax bill. For four to

(31:50):
h one ks or traditional iras, the required age to
start withdrawals has changed, allowing some retires to delay taking
taxable distributions. Inflation adjustments means some people might fall into
a lower tax bracket than last year, giving them a
small but important tax break. Lastly, if energy efficient upgrades

(32:15):
were made to the home, like new windows, solar panels,
or insulation, many could qualify for tax credits.

Speaker 2 (32:24):
Well that's great news for people looking to keep more
in their pockets. But let's talk strategy. You just mentioned
tax brackets in r mds. How can retirees use those
to their advantage?

Speaker 5 (32:36):
This is where working with a financial advisor and tax
professional is key. Some powerful tactics include tax bracket management,
Wroth conversions, and tax loss harvesting. By planning withdrawal strategically,
retirees can avoid getting bumped into a higher tax bracket

(32:58):
and can't avoid unless necessary taxes. If they're in a
lower tax bracket now but expect to be in a
higher one later, a Wroth IRA conversion could be a
smart move for paying at a lower rate and allowing
their money to grow tax free. Lastly, selling underperforming assets

(33:19):
at a loss can help offset gains and lower taxable income.
But again, I recommend discussing options with a financial advisor
and tax professional to ensure they put the right strategies
in place for each unique situation.

Speaker 2 (33:37):
Now, what about the common mistakes retirees make during tax season?
The ones that really cost them money in the end.

Speaker 5 (33:46):
Oh, there are plenty many times retirees miss out on
deductions and credits, like the ones for medical expenses, home improvements,
and charitable giving. Some forget about their Social Security taxes,
which depend on total income. Others neglect to pay stake taxes.

(34:06):
This is especially important for retirees who are planning to relocate.
They should make sure they know how taxes will impact
their retirement income and the most important one of all
is not working with a tax savvy advisor. Our Kelley
advisors understand that the tax codes change all the time.

(34:27):
What worked last year might not work this year. They
can help tailor a tax strategy that fits each individual situation.

Speaker 2 (34:37):
This is why you can't go it alone. Just plugging
numbers into turbo tax and hoping for the best could
really cost you thousands, if not more, in the long run.

Speaker 5 (34:47):
Retirees have more control over their taxes than they think,
but only if they have a plan. Taxes aren't just
a bill they pay. There's something to be managed strategically,
so our listeners can keep more of what's.

Speaker 2 (35:02):
Theirs Any other sources our listeners can explore if they
have questions about their tax strategies.

Speaker 5 (35:09):
We have a free investor guide. Tax Explore is for
people who have more important things to do in retirement
than worry about taxes. It contains ten strategies that can
help minimize taxes on retirement income while uncovering savings.

Speaker 2 (35:27):
To get the guide and to make a complimentary appointment
with a Kelly Financial advisor, called eight eight eight eight
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
When we come back, we'll talk about additional smart tax
moves and why you need to talk with your advisor
and your tax professional this year. Early, not late. Stay

(35:49):
tuned and we will be back in a moment.

Speaker 4 (35:56):
Safe money strategies cool now on at eight hundred eighteen
eighty one or go to Kelly Financial dot org.

Speaker 2 (36:05):
Are you moved by the transition from one season to another,
like winter into spring or summer into fall? Likewise, we
are moved by life's transitions losing a job, facing retirement,
the passing of a spouse. Are you prepared for the
financial hazards each transition brings? The financial advisors at Kelly
Financial can help you triumph over life's transitions. Call eight

(36:27):
eight eight eight hundred eighteen eighty one or email Kelly
at Kelly Financial dot org, serving Boston for twenty one years.

Speaker 4 (36:36):
Bank call eight eight eight eight hundred one eight eight
one now and speak to the team at Kelly Financial.

Speaker 2 (36:46):
And we are back. I'm John Boudras, the co host
of Safe Money Strategies. Thanks for joining me this morning.
Let's be honest, the federal government isn't exactly known for
being good with our money. Doges doing that more and
more every day, So why hand over more than what's required.
If you don't have a tax strategy, you're probably paying

(37:08):
more than you need to now. Unfortunately, too many people
just file their taxes and hope for the best instead
of taking a proactive approach to keeping more of their money.
Let's welcome back Kelly Kelly, the CEO of Kelly Financial.
She's going to break down for us exactly why talking
to your financial advisor and your tax professional together this

(37:34):
year could save you thousands, if not more. Kelly, Good morning,
and welcome back.

Speaker 5 (37:39):
Good morning, John, happy to be back with you on
this Saturday morning.

Speaker 2 (37:43):
Kelly. Tax season isn't just about checking those few boxes
and hoping for a refund. It's about smart planning. But
before we dive into why speaking to your financial advisor
and your tax professional this year is so important, I
want if we could just back this up a little
and go over something that can trip up retirees, the

(38:06):
difference between filing your taxes and paying your taxes.

Speaker 5 (38:10):
Basically, filing taxes is just reporting income deductions and credits
to the IRS on a tax return. Where money is owed,
there's a refund, or people just break even. Paying taxes
is actually settling a tax bill, and that might not
happen all at once in April. For retirees, taxes can

(38:34):
be due throughout the year, depending on income sources like
social Security pensions or IRA withdrawals. If they don't pay
throughout the year, they could owe a very large amount
of money come tax time, and the IRS might even
hit them with penalties, which.

Speaker 2 (38:54):
Brings up another question. Why do so many retirees get
surprised by a tax bill.

Speaker 5 (38:59):
In a Because in retirement there isn't a company automatically
with holding taxes from paychecks anymore. Instead, with different income
sources such as social Security, pensions, iras, rental income, or investments,
each one is taxed differently. A lot of people think

(39:19):
that Social Security benefits are tax free, but a big
percentage of those benefits can be taxed if their income
is too high. Same with IRA withdrawals. If more is
taken out than is expected, people can push themselves into
a higher tax bracket.

Speaker 2 (39:38):
All right, So how do retirees avoid this? What's the
best way to make sure they're paying the right amount
of taxes, which is always, in my view, the fewest.

Speaker 5 (39:48):
Well, first, let me remind everyone that tax planning is
year round, not just in April. Working with a tax
savvy advisor can help structure their income so taxes stay
low and there aren't any unpleasant surprises. So when getting
started is important to know and understand their income sources

(40:10):
and how they are taxed. When withdrawing from an IRA
or four oh one K. Setting up automatic with holding
avoid surprise tax bills. Later, for those living off investments
or rental income, they may need to sending quarterly payments
to avoid penalties.

Speaker 2 (40:29):
Well, that makes sense. So with the right financial advice,
how could people save money?

Speaker 5 (40:34):
Some twenty twenty five key tax strategies that our advisors
and tax professionals are focusing on include tax bracket management,
retire account withdrawals, wroth Ira conversions, charitable giving strategies, and
tax credits that some people may not be aware of.

(40:56):
They can help retire stay alert when edging closer to
the next tax bracket. They can strategize RMD withdrawals to
minimize their clients taxable income. They can advise on paying
taxes now in a lower bracket to save money with
wroth Ira conversions. They can help retires with smart charitable

(41:19):
donations by using assets like stocks. They can guide retirees
to not overlook medical expense deductions or credits for home
energy improvements.

Speaker 2 (41:31):
It's quite the list, so let's talk mistakes. What are
some of the biggest blunders people make when they don't
have an advisor or tax pro guiding them.

Speaker 5 (41:41):
Some of the common mistakes could be forgetting to take
rmds on time can mean a twenty five percent penalty
on what should have been withdrawn. Up to eighty five
percent of Social Security benefits can be taxed if their
total income is too high. Planning a move but not
taking state taxes into account can affect their bottom line. Plus,

(42:04):
waiting until tax season can limit options for making the
best financial moves. Our Kelley advisors and tax partners can
help manage much of this.

Speaker 2 (42:16):
So it's important then to get a tax professional or
an advisor involved early on, isn't it Definitely?

Speaker 5 (42:23):
Taxes aren't just about filling a return. They're about having
a strategy that works all year long. Our tax partners
can help find deductions that may have been missed or
tax credits that they can take advantage of. Kelly advisors
help our clients avoid costly mistakes, and most importantly, help

(42:45):
them keep more money in their pockets.

Speaker 2 (42:48):
Thanks for all of this great information, Kelly. Without a
tax strategy, you're probably overpaying, So talk to a Kelly
Financial advisor or one of their tax partners, make a
plan and keep more of what is yours. So don't
go it alone, Kelly. What are the available resources our
listeners can explore?

Speaker 5 (43:08):
First, they should contact us. We can make sure they're
not leaving money on the table this tax season. We
also have a free investor guide Tax Explorer, which outlines
all of the questions you should be asking your tax
professional and financial advisor and includes detailed tax strategies for

(43:30):
your four oh one, k IRA, social Security and capital
gains taxes.

Speaker 2 (43:36):
To get the guide and to make a complementary appointment
with a 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. As always,
thanks for joining me. You're listening to Save Money Strategies
the radio show heard right here on WRKO and streaming

(43:56):
on the iheartenapp Stay tuned and we'll be back in
a New York moment right here.

Speaker 7 (44:01):
For bus.

Speaker 4 (44:07):
Kelly Financial Services, call eight eight eight eight hundred eighteen
eighty one.

Speaker 5 (44:13):
I'm Kelly Kelly from Kelly Financial. Should you convert your
retirement accounts to a roth IRA before tax rates go up?
Are your assets in the most tax efficient accounts? Kelly
Financial has a free investor guide called Tax Explorer, which
contains ten tax strategies that might enable you to keep
more of your money in your pocket. For the guide,

(44:34):
call eight eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org. We're Kelly Financial. Come
retire with us Safe Money Strategies.

Speaker 1 (44:47):
Welcome back. I'm Mike d Said, and you're listening to
Safe Money Strategies. Joining me in the studio is Charlie Gable.
Earlier in the show, we discussed the important role rebalance
and can have on an investment portfolios performance. Shellie, what
other factors should be taken into consideration when conducting a
portfolio review to determine the appropriate allocation?

Speaker 10 (45:08):
You know, Mike, I think there are four things that
we know for sure. One, the Federal Reserve has already
cut interest rates and has signaled that more rate cuts
are likely on the way. This ultimately means your fixed
income investments, such as bonds, may not eventually yield as
much as they once did, potentially putting a strain on
your future retirement income. If your portfolio is too heavily

(45:30):
weighted in fixed income assets, you may not be able
to generate the returns you need to keep up with
inflation and rising costs. Second, we know that tax rates
are set to increase in twenty twenty six when the
Tax Cuts and Jobs Act expires without any action from lawmakers,
many people could find themselves in higher brackets, reducing the
after tax income they'll have available in retirement. This is

(45:52):
an important issue for anyone with tax deferred retirement accounts
like a traditional IRA or a four to one K
because of withdrawals from these accounts will be taxed at
ordinary income rates. Third, we all know that time continues
to march on. Every year we get a little bit
older and our ability to recover from financial setbacks diminishes.

(46:13):
This means that you may not have the luxury of
waiting out a market downturn like you did when you
were younger. As you approach or enter retirement, it's important
to shift your focus from aggressive growth to preserving your
wealth and helping secure a steady income stream. And finally,
what we do know is that rebalancing your portfolio may
be one of the most effective ways to help protect

(46:33):
your financial future in light of these different uncertainties. By
realigning your investments with your current risk tolerance, financial goals,
and time horizon, you can help ensure that you're not
taking on more risk than necessary or missing out on
potential growth. Rebalancing allows you to lock in gains when
markets are high and ultimately buy into undervalued assets when

(46:54):
markets are low, helping to keep your portfolio on track.
In short, rebalancing is a proactive step you can take
right now to adapt to the challenges and opportunities ahead.
It's about being prepared, staying flexible, and helping to protect
the financial future you've worked so hard to build.

Speaker 1 (47:12):
One factor that I believe should always be considered when
it comes to rebalancing is your age. A simple rule
of thumb that many financial professionals use to help determine
an appropriate asset allocation is the one hundred minus your
age rule. The rule suggests that you subtract your age
from one hundred to find the percentage of your portfolio

(47:33):
that should be allocated to risk your assets, like stocks.
The remainder would be allocated to more conservative and protected instruments.
For example, if you are sixty years old, you might
aim for forty percent of your portfolio to be in stocks,
with sixty percent allocated for protection, but a person age
seventy five would rebalance to having only twenty five percent

(47:54):
of the portfolio at risk.

Speaker 10 (47:56):
The reason this rule is often used is simple. The
older you get, the less time that you'll have to
recover from potential losses. A thirty year old, for example,
could afford to take on more risk because they have
decades to write out different market volatility. On the other hand,
a sixty five year old who might be approaching retirement
or is even already retired, should be more focused on

(48:16):
preserving capital and possibly aiming to minimize risk.

Speaker 1 (48:20):
This rule is just a starting point. You also need
to consider your personal risk tolerance, your time horizon, and
income needs rebalancing regularly to maintain the right balance of
risk in safety is one key to helping ensure your
financial future. Another factor in rebalancing your portfolio is tax diversification.
Many retirees find themselves heavily invested in tax deferred accounts

(48:44):
like traditional iras or four to oh one k's. While
these accounts offer tax advantages during the accumulation phase, they
can potentially become a liability in retirement. All withdrawals from
tax deferred accounts are subject to ordinary income tax, which
could place you in a higher tax bracket during your
retirement years, especially when required minimum distributions kick in.

Speaker 10 (49:05):
And this is where tax diversification comes into play. Balancing
your retirement savings between tax deferred accounts like a traditional
IRA or four to one K and tax free accounts
like a ROTH can help reduce your tax exposure and retirement.
Roth iras, for example, allow your savings to grow tax free,
and withdrawals and retirement are also tax free. Many retirees

(49:27):
are out of balance in this area because they have
accumulated the majority of their savings in tax deferred accounts,
ultimately leaving them potentially vulnerable to tax hikes.

Speaker 1 (49:36):
By rebalancing not just your asset allocation, but your tax exposure,
you can help create a more tax efficient withdrawal strategy
in retirement. This could involve gradually converting some of your
tax deferred savings to a roth IRA or adjusting your
investment strategy to include more tax free growth. The goal
is to spread your tax exposure across different types of

(49:56):
accounts so that you have more control over how and
when you pay taxes, ultimately allowing you to keep more
of your money in your pocket.

Speaker 10 (50:04):
Our economic landscape is constantly shifting, and those changes could
throw your portfolio off balance. Now might just be the
time to review your retirement strategy and make the necessary adjustments.
Rebalancing a portfolio is not just about managing risk, but
also about helping ensure your on track to meet your
long term retirement goals.

Speaker 1 (50:23):
If you are already retired or planning to retire in
the next five to ten years, you probably can't afford
to take on the risk that comes with an out
of balance portfolio. The economic landscape changes far too quickly.
What worked for you in the past may be the
very thing that puts your financial future at risk going forward.
With so much at stake, your income, your lifestyle, your

(50:44):
retirement future, now is not the time to take chances.
Failing confident that your retirement portfolio is properly balanced is
an important part to helping protect your retirement and your
financial future. Don't leave it to chance.

Speaker 10 (50:57):
So give us a call today to schedule a compliment
reconsultation and let our team provide a second opinion on
whether your portfolio is still aligned with your retirement goals.
You can reach us at eight to eight eight zero
zero one A eight one. Give us a call and
we can help make sure your retirement plan is properly
positioned to navigate the challenges ahead.

Speaker 1 (51:18):
So with that, my name's Charlie Gable and I, like
you said, remember to join us next week for another
installment of safe money Strategies.

Speaker 4 (51:29):
Kelly Financial Services. Go to Kelly Financial Dotal.

Speaker 8 (51:33):
Let me tell you about Kelly Financial Services. Retirement isn't
just about beach days or playing golf. You have to
consider taxes because Uncle Sam doesn't retire when you do.
In fact, if you're not careful, he'll take a big
bite out of your savings. If you start pulling from
your four to oh one k, sell that second home,

(51:54):
or inherit some money, you're gonna get hit with a
tax bill. And if you don't have a plan your wall,
it's gonna feel it. The advisors at Kelly Financial know
the ins and outs of tax efficient withdrawals, rough conversions,
estate planning, and will help you keep more of what
you've earned. Don't go into retirement unprepared. For a free

(52:14):
retirement consultation with a Kelly advisor. Call eight eight 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 4 (52:32):
Safe money Strategies call now on eight eight eight eight
hundred eighteen eighty one or go to Kelly Financial dot org.

Speaker 7 (52:42):
We are quite advanced in age. My wife and I
too have a very young baby. We were blessed with
a child two years ago yesterday. His name is William
Kelly Junior, and he's been a blessing and a miracle
to me. He has changed the way I view the world.
He has given me permis to accept life on its

(53:03):
own terms, and he's given me permission to be a
little corny, to be a little bit overbearing about being
a parent, and to be a little bit over zealous
about the happiness we experience. And that's quite amazing. My
wife wasn't sure that she was going to have a baby.
We went to see the doctor, doctor Ali, and we

(53:24):
went in. They did an ultrasound of my wife's tommy
and we saw a picture of a little person in there.
He looked like a hamster sucking his thumb. And then
we went in to see the obstetrician. He had the
picture in his hand. He looks at us, he says, well,
you're going to have a baby. It's a miracle. And
the baby was born healthy and happy at Charlton Hospital

(53:44):
and they treated us incredibly, so hats off to them.
But for the most part, it was a very enriching
experience for us. William is healthy, happy. He loves Thomas
the train. You know, I wake up, I hear Thomas
the train. I go to sleep. He's got a little
train in his hand. He's really never had a bad
day in two years. He had some teething problems there

(54:06):
for a while, he teethed real early, and he's never
had to take medication. We've never been to the emergency
room with him. We've had just normal checkups. He's walked
a little bit. It took him about sixteen months to
start walking. And other than that, you know, he was
great at crawling around the home. The reaction of my
clients was unbelievable, the things that folks made for us,

(54:28):
sent in the cards we got. So it's a family practice.
I'm a registered investment advisor, but I want to tell
you the folks in my practice are family people. They're
doing things for other people all the time, and those
other people are members of their family. As far as
the health of our baby and how things went, what

(54:48):
was important to us is certainly how well our child
could do. And it's been born out that we have
the most terrifically blessed people on earth, and we enjoy
every minute of it. And I love being a family man.
So happy second birthday to my son, William Kelly Junior.

Speaker 4 (55:05):
Safe Money Strategies eight eight eight eight hundred one eight
eight one. Come retire with Us.

Speaker 5 (55:12):
I'm Kelly Kelly from Kelly Financial. Should you convert your
retirement accounts to a roth IRA before tax rates go up?
Are your assets in the most tax efficient accounts? Kelly
Financial has a free investor guide called Tax Explorer, which
contains ten tax strategies that might enable you to keep
more of your money in your pocket. For the guide,

(55:33):
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 4 (55:43):
You're listening to safe money strategies with Jump addriss and
Kelly Kelly, brought to you by Kelly Financial Services. Call
eight eight eight eight hundred eighteen eighty one or go
to Kellyfinancial dot org.

Speaker 2 (55:58):
The news breaker is coming up Ben 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 health care,
or if you're tossing around the idea of relocating or

(56:20):
maybe helping out with your grandchildren's college. You 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. All right, see you next week.
All opinions expressed by the host, his guests, or employees
of Kelly Financial Services are solely their own and do

(57:03):
not reflect the opinions of Kelly Financial Services. Information has
been obtained from sources deem 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. It is always advisable to consult
a professional before making a financial decision. The host is
a client of Kelly Financial Services.