Episode Transcript
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Speaker 1 (00:12):
This is coming to us.
Speaker 2 (00:21):
Good morning, dear Boston. I'm John Budris 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, particularly on this Father's
Day weekend of twenty and twenty five. Well, we have
(00:47):
a lot on the show today, many things will of
course be talking with the advisors at Kelly Financial, and
later in the show, Missus Kelly and I will be
addressing I think these singers regular most important issue when
it comes to retirement planning and particularly retirement living, and
(01:07):
that is the beast of inflation. And that beast can
come in many forms, and it's almost something out of
Greek mythology that can present as a large thunder clap
from Zeus, or it can be an insidious snake crawling around,
(01:28):
but in the end, it steals from you, and it's
the most important issue in my view to address. Well,
I'm glad that we are meeting today here on the
day before Father's Day, on June fourteenth, and lately I've
been going back in history and speaking about events that
(01:49):
happened on that particular day that we are together on
June fourteenth, and today I want to speak just briefly,
because I don't need to talk a lot about them,
because you know how to tie them together yourselves. About
two events that have a very sad irony, because today,
in nineteen forty, on June fourteenth, the Auschwitz Concentration Camp,
(02:14):
an extermination camp opened in Nazi control Poland, beginning with
Polish prisoners of war, which then later, of course expanded
to include civilian Jews and Catholics and Gypsies and Soviet
prisoners of war. And within that one institution, far more
(02:37):
than a million could be somewhere up to two million
souls perished in that place, which almost seems inconceivable. And
the irony is that two years later, in an attic
somewhere in Holland, Young and Frank put her first notation
(02:59):
in her diary, which was noted June fourteenth. And there's
a cruel and bitter irony in these two historical events.
And on this Father's Day, I am reminded of my dad,
and many of you who have lost your dads, particularly
if they've been gone a long time, well understand that
(03:20):
as time goes forward, you miss them, more and you
miss them more because as you get older, you become
to realize, you get the equipment, the emotional and the
mental equipment to really realize what you lost. You lost
not only their love and their time and their affection,
(03:42):
but you lost their wisdom. And now is you get older,
you crave that wisdom, and you crave to share that
wisdom with your own children and those younger with you.
And I remember in the last years of my dad's life,
and he passed in two thousand and nine, he would
(04:03):
talk about his life and the lives of that greatest
generation in no way mirror hours. They grew up in
poverty and destitution during the Depression. These were the kids
who walked home from school and picked up pieces of
coal on the railroad track so they literally could cook
(04:26):
their supper or stay warm. And this was no exaggeration.
And when they came of age, when they hit their
twenties and early thirties and were about to start their lives,
what happened. World War II broke out, and then they
spent a number of years in the war, and if
they were lucky enough to come back with their bodies
(04:47):
and their minds intact, they had to start all over again.
And I remember my dad talking about his belief that
when they started to rebuild after World War Two, they
had this joy in them that they had defeated evil.
He thought there would be a golden age, a wonderful
(05:10):
new age, where that kind of brutality and grotesque, barbarism
and inhumanity would have been vanquished from the earth. And
as he got older, he realized that he was wrong,
that they did not vanquish that kind of evil. And
so today, on Father's Day, I would like us to pray,
(05:34):
to pray that we can face that evil in the
world and do what we need to do. And it's
not hard, it's rather simple. And I know it sounds
a little crazy to quote a Hollywood movie, but what
we have to do is just do what Et told
(05:56):
Elliott at the end of the movie et be good.
Not just do good, but be good to everyone, to
every man, woman, child, dog, cat, bird, everything, be good
to the wind. That's my message for you on this
Father's Day weekend, to look at everyone you see and
(06:19):
love them with the goodness that's in your heart that
God put there, because your heart was made by God.
God made your heart. We live in a world that
maybe is Satan's, but God's heart is all yours. So
Happy Father's Day.
Speaker 1 (06:47):
Safe Money Strategies with John Budrus and Kelly Kelly called
Kelly Financial on eight eight eight eight hundred eighteen eighty
one or go to Kelly Financial dot org.
Speaker 3 (07:04):
Good morning, dear friends and dear listeners. I'm Kelly Kelly,
and welcome to our Forever Young segment. I am joined
as always by my handsome and insightful son, William Kelly Junior,
as we chat every Saturday morning about life and the
current happenings of the week. Good morning, William.
Speaker 4 (07:25):
Good morning Mom.
Speaker 5 (07:25):
How are you?
Speaker 3 (07:26):
I'm doing great? How about yourself?
Speaker 4 (07:28):
I'm doing very well.
Speaker 6 (07:29):
It's been a fine week and we've gotten a lot
done and I can't complain about a productive week at all.
Speaker 3 (07:36):
Excellent.
Speaker 6 (07:37):
So Father's Day is coming up soon, and usually during
this time we take a moment to remember Dad and
also think about Poppy. Yes, you know Dad's father and
Gramps as many of you knew his grandfather.
Speaker 4 (07:53):
As and many of the men in our.
Speaker 6 (07:55):
Lives who have been like fathers to me or to us,
and just take a day to appreciate them and send
them a text or ask how they were doing, or
give them a gift or any of those things. So
we're looking forward to a very peaceful Father's Day.
Speaker 3 (08:12):
Yes, it is bittersweet, but I'm happy. I was able
to see my father two weeks ago. It was brief,
but I was able to spend some time with him,
so that was nice.
Speaker 2 (08:23):
That's good.
Speaker 6 (08:24):
I know you're helping him out a lot with some
things around the house, and he is very lucky to
have a daughter like you.
Speaker 3 (08:29):
Oh well, it's time. He has decided he needs to
retire at eighty six. He's selling the farm.
Speaker 6 (08:36):
Isn't that wonderful to retire? That is amazing for I
can't believe it. I'm probably going to work until i'm
eighty six as well. I think we all will in
this family. It feels like not a bad thing. I
know he liked it. He really was good at his job.
Speaker 4 (08:51):
He was.
Speaker 6 (08:52):
I remember I got to work with him, and I
couldn't believe what he could do at his age. And honestly,
I hope I'm as as mobile as he is when
I'm his age. So he has a very very wonderful daughter,
daughters and son who are all willing to help him
and get him set up for the next chapter of
his life. So I think that's spectacular.
Speaker 3 (09:14):
Well, thank you, William, and I agree. I agree it's
time for him to relax, absolutely joy enjoy socializing and
being with having some activities, yes, yeah, and not just
focused on the farm.
Speaker 6 (09:29):
Yeah, he needs to reap the rewards of his work
for all these years, not just at the Chicken House,
but also at the shore implement company. He is a
very hard worker and it definitely runs in the family,
and we could see it through you, and I think
Dad will be very happy right now. He'd be very
(09:49):
pleased with how things are going with this company, with
how things are going with our family.
Speaker 3 (09:55):
I know he is proud of you and Mary Madaline,
thank you. I know he's smiling down.
Speaker 4 (10:01):
Thank you.
Speaker 6 (10:02):
Well. I try and Ray Madelin definitely tries too. She's
also a very hard worker. So we'll see. I mean,
I'm sort of a father in a way, you know,
to a cat and a dog, and so I mean
the responsibility of fatherhood is it's a lot, it really is.
It's overbearing sometimes, but we've got to push through.
Speaker 3 (10:21):
Yeah, you know, so you are funny, William. Thanks well,
do keep us on your dial. We have a lot
of great information coming your way. Mike Ducett and Greg
Workman will unpack the real life impact of capital gains taxes,
from downsizing your home to inheriting property and share practical
(10:42):
strategies to help you keep more of what you earned. Then, Mary,
Madeline Kelly and Greg Murray will tackle one of the
biggest questions on everyone's mind, will interest rates finally come down?
They will break down what the latest inflation data means
for retirees, home buyers, and everyday investors. And I will
(11:05):
be back with John Boudris. We will be talking about
what inflation really means for retirees today and how with
the right steps you can protect your savings, maintain your
lifestyle and stay ahead of rising cost And of course
we'll have some wit and wisdom from Bill Kelly at
the end of the hour. That's all for Forever Young today.
(11:27):
Thank you for listening, and William, thank you for joining
me this morning. I look forward to speaking with you
next Saturday.
Speaker 6 (11:34):
Love you to Mom, and as do I.
Speaker 2 (11:44):
I'm John Boudris and welcome to a new edition of
Kelly Financials. What would Bill say? The wit and wisdom
of the late Bill Kelly, who today tests time time.
Speaker 7 (11:55):
You don't have as much left today as you had yesterday.
It's the rule of science. When's the best time to
plant a tree twenty years ago? When's the second best
time to plant a tree? Tomorrow? Today? Whenever you can
get to it, that's the next best time.
Speaker 2 (12:10):
There's no time like the present to begin saving, planning
and enjoying retirement. So download our consumer guide simply called
a Happy Retirement and find six secrets of how you
can spend your time to cultivate happiness and retirement well lived.
Go to Kelly Financial dot org or call eight eight
(12:31):
eight eight hundred eighteen eighty one to spend some time
with one of our financial advisors.
Speaker 4 (12:36):
Time, ladies and gentlemen, it's not too late.
Speaker 2 (12:39):
We are Kelly Financial. Come retire with us.
Speaker 1 (12:44):
Safe money strategies brought to you by Kelly Financial Services.
Call eight eight eight eight hundred eighteen eighty one. We'll
go to Kelly Financial dot Org.
Speaker 2 (12:56):
Come retire with us.
Speaker 8 (12:58):
Okay, my friends, retirement isn't the end of the novel
of your life. It's a brand new chapter. But let's
face it, a lot of people head into it unprepared.
Between inflation, market swings, rising taxes, even the kids moving
back home, they can get overwhelming and fast. That's where
Kelly Financial comes in. CEO Kelly Kelly put together a
(13:21):
free guide. It's called Retire Your Fear, Plan Your Future.
The guide spells out what you need to know about retirement,
income taxes, social Security, and the good news living longer
than expected. And it's all written in plain English, no
Wall Street jargon. This guy takes the guesswork out of
retirement and again it's absolutely free. So call now to
(13:45):
get your copy eight eight eight eight hundred eighteen eighty
one eight eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org. That's Kelly at Kelly
Financial dot org.
Speaker 9 (14:03):
Hello and welcome to save Money Strategies.
Speaker 5 (14:05):
I'm Mike du Said, Chief operating officer at Kelly Financial.
We believe every client deserves a clear, written financial plan
to help achieve their dreams. Our goal to help you
retire with confidence, and that's why we say come retire
with us.
Speaker 10 (14:18):
I'm Greg Workman, investment advisor at Kelly Financial Services. Last
week we started a really important conversation about downsizing your
home as a strategy to reduce expenses in retirement. This
is a big topic because housing costs often take up
a large part of retirees' budgets, and making smart decisions
(14:40):
here can free up cash flow and improve your financial security.
Speaker 9 (14:45):
Yeah, exactly, Greg.
Speaker 5 (14:46):
When you think about downsizing, selling your primary residence is
usually the first step, But as we said last week,
it's important to understand the tax implications of that sale,
especially the capital gains tax exclusion for prime residences.
Speaker 10 (15:01):
Many homeowners don't realize they may qualify to exclude up
to two hundred and fifty thousand in gains if single,
or five hundred thousand if married filing jointly when selling
their primary residence.
Speaker 4 (15:14):
This exclusion can save you.
Speaker 10 (15:16):
Thousands, even hundreds of thousands in taxes, money you can
keep working for your retirement.
Speaker 9 (15:23):
But it's not just about the exclusion.
Speaker 5 (15:26):
Calculating your adjusted cost basis is crucial. This means starting
with what you paid for the home, then adding the
costs of any capital improvements, such things that add value
or extend the life of the property. This could be
remodeling the kitchen, adding new bathroom, putting on a new roof,
or finishing the basement. These aren't routine repairs, but significant upgrades.
(15:48):
They raise your adjusted cost basis, which reduces your taxable gain.
Speaker 10 (15:52):
For example, say you bought your home twenty years ago
for three hundred thousand. Over the years, you spend fifty
on capital improvements such as a new kitchen, upgraded HVAC,
and landscaping. Now you're selling the home for six hundred thousand.
Your adjusted basis is three point fifty, so your gain
(16:13):
is two hundred and fifty thousand.
Speaker 5 (16:14):
Before we move on, There's another important concept every investor
should understand, the cost basis step up.
Speaker 11 (16:22):
Cost basis.
Speaker 10 (16:23):
Step up happens when someone inherits an asset like a
home or investments. Instead of inheriting the original purchase price,
the cost basis is stepped up to the asset's fair
market value at the time of the owner's death.
Speaker 9 (16:39):
This could be a huge benefit.
Speaker 5 (16:40):
For example, say your parents bought a home decades ago
for one hundred thousand dollars and it's now worth seven
hundred thousand. When you inherited, your cost basis is stepped
up to seven hundred thousand.
Speaker 10 (16:53):
Exactly if you decide to sell the inherited property right away.
For seven hundred, there would be little or no capital
gains to because your cost basis matches the sale price.
Speaker 5 (17:03):
And that's a powerful tool for minimizing capital gains taxes,
both for the investor and for years. It means that
appreciation during the original owner's lifetime can often pass on
tax free, which can preserve wealth across generations.
Speaker 10 (17:19):
Of course, this step up doesn't apply to assets that
are gifted during a person's lifetime. It only applies upon
inheritance after death, so proper estate planning plays a key
role here.
Speaker 5 (17:32):
And it's another reason why working with a qualified tax
planner and a state attorney is essential to maximize these
benefits and make sure your legacy is protected.
Speaker 10 (17:42):
But what if the property you're selling is not your
primary residence.
Speaker 11 (17:45):
Maybe it's a rental or vacation home.
Speaker 10 (17:48):
In that case, the capital gains exclusion does not apply.
You're responsible for paying taxes on the entire game the
difference between the selling price and your adjusted cost basis.
Speaker 5 (17:59):
And if it was a rental property, you also need
to factor in depreciation recapture over the years. You probably
claim to depreciation deductions to reduce your taxable rental income,
but when you sell the IRS wants that back, and
it's taxed at a maximum rate of twenty five percent.
That can add as significant tax build, so it's essential
to plan ahead.
Speaker 10 (18:19):
Another critical factor is how long you have held the property.
The IRS taxes gains differently depending upon whether the investment
was held for more than one year or not. Gains
on investments held one year or less are considered short
term and are taxed at your ordinary income rates, which
can be as high as thirty seven percent. But if
(18:41):
you hold the investment for more than one year, you
qualify for the long term capital gains tax.
Speaker 11 (18:45):
Rates, which are significantly lower.
Speaker 9 (18:48):
That's a great place to pause for a moment.
Speaker 5 (18:50):
We've covered a lot about capital gains basics and how
they affect your financial pitchure. When we return, we'll dive
deeper into how capital gains rates are determined and its
strategies to minimize the tax burden on your investments.
Speaker 9 (19:03):
Stay tuned, we'll be right back.
Speaker 1 (19:08):
Kelly Financial Services, eight hundred eighteen eighty one.
Speaker 5 (19:13):
I believe that this nation should commit it zel achieving
the goal of landing a man on the moon and
returning him safely to the.
Speaker 2 (19:21):
Earth six five four three two one zero All engine rue.
Speaker 3 (19:32):
Let go on to follow level.
Speaker 2 (19:33):
Remember those Apollo Moon missions one of America's greatest adventures
and achievements too. The nation set a goal and then
realized it. What are your goals? At Kelly Financial Services.
We've got the right team and technology to help launch
your retirement planning. Let us help you set and reach
(19:53):
your goals for your greatest adventure and achievement. Call us
at eight eight eight eight hundred eighteen eighty one or
visit us at Kellyfinancial dot org. Where do you want
to land?
Speaker 1 (20:06):
We're a tank galitybay.
Speaker 12 (20:07):
Here be landed.
Speaker 2 (20:09):
We are Kelly Financial Services. Come retire with.
Speaker 1 (20:12):
Us the money rap with Kelly Financial Advisors. Greg Murray
at Mary Madeleine Kelly.
Speaker 11 (20:20):
Good morning.
Speaker 13 (20:21):
This is Greg Murray, Senior vice president and Chief Compliance
Officer at Kelly Financial Services. Joining me today is Mary
Madeline Kelly, one of our wealth advisors. How are you
doing today?
Speaker 12 (20:30):
Good morning, I am doing great, Thanks for asking. I'm
getting ready to go to a family friend's wedding, which.
Speaker 3 (20:37):
We are all very excited about.
Speaker 12 (20:39):
And Father's Day is tomorrow, which is always a heavy
day for us, but we try to spend it focusing
on all the good memories.
Speaker 13 (20:46):
Your father was a big influence in my life. He
is the reason I am where I am today and
the advisor I am. I wish you the best. I'll
be thinking of him as well.
Speaker 12 (20:54):
Well, you meant quite a lot to him as well.
For our time today, I figured we could chat about
something I think a lot of people are wondering. Are
we finally going to see interest rates come down?
Speaker 11 (21:05):
Yes, that's a big question lately.
Speaker 13 (21:07):
Everyone from first time bone buyers to retirees living on
fixed income has then watching the Fed leg it's the weather,
trying to predict that the pressure's going to ease.
Speaker 11 (21:15):
So let's break it up. Where do we actually stand
right now?
Speaker 12 (21:18):
Well, the latest inflation numbers came out recently and they're
showing some mixed signals. As of April, headline PCEE, which
is the Fed's preferred inflation gauge, is sitting at two
point seven percent year over year, and core pce which
excludes food and energy, is at two point eight percent.
Speaker 13 (21:35):
And just for comparison, we also have the CPI or
Consumer Price Index, which is up three point four percent
year over year in April, with core CPI at three
point six, so well, inflation is definitely down from the
highs WESA on twenty twenty two, we're still about that
two percent target the Fed keep stressing.
Speaker 12 (21:51):
Exactly, and that two percent target isn't just a random number.
It's the Fed's benchmark for what they considered price stability.
And until inflation and especially core PCEE gets down to
or close to that level and stays there, we're probably
not going to see a weight cut.
Speaker 13 (22:07):
And to be fair, the Fed is being really cautious,
maybe even a little too stubborn, but with good reason.
They said they'd rather keep rates higher for longer than
risk cutting too soon and reigniting inflation.
Speaker 12 (22:18):
Right and Jerome Howel's made it clear they want to
see more consistent progress, and honestly, even though inflation has
come down a lot, that last stretch from say two
point eight percent to two might be the hardest part.
Speaker 13 (22:30):
And you're starting to hear more economists refer to this
as a sticky phase of inflation. Housing costs, insurance, premium services, inflation,
all of that tends to lag. So even if goods
prices are stabilizing, there's still some really stubborn areas keeping
core numbers elevated.
Speaker 12 (22:45):
So what would need to happen for the FED to
actually feel confident enough to cut rates. We probably need
to see a few more consecutive months of core PCE
drifting down closer to two point thirty percent, maybe even
under two point two percent. Plus they'll be watching wage growth,
jobs data, consumer spending, all of it.
Speaker 11 (23:03):
Yeah, the jugger we go a lot.
Speaker 13 (23:05):
I think the fear is that if they lower reads
too early, it could stimulate demand again and undo the
progress they've made. On the other hand, if they wait
too long, they risk currding growth and triggering a recession.
Speaker 12 (23:15):
It's a delicate dance, and investors are watching every piece
of data and every FED meeting for hints. Just last month,
there was a lot of optimism that we might see
a rate cut by summer. But that's cool a bit
with the recent inflation ratings.
Speaker 13 (23:28):
And let's talk about what that all mean for regular people,
our clients, our listeners. If you're a home buyer or
thinking about refinancing, this is frustrating. Mortgage reach are still
hovering around seven percent for a thirty year fixed That's
double what people were getting just a few years ago.
Speaker 12 (23:43):
Definitely, but it's also relevant for people living on interest
income like retirees. Money market funds. In short term treasuries
are still yielding three to four percent, which is great
for now, but if and when rates fall, that income
might come down too.
Speaker 11 (23:58):
So the question becomes do you make changes now or wait?
Speaker 13 (24:01):
And of course that depends on our goals, your time horizon,
and how much your risks you're comfortable with exactly.
Speaker 12 (24:07):
For example, if someone's sitting on a lot of cash,
now might be a good time to lock in slightly
longer CDs or fixed annuity before yields come down. On
the flip side, if someone's investing for long term growth,
the lower rates could actually be good for stocks, especially
in tech and real estate.
Speaker 4 (24:24):
So here's what.
Speaker 11 (24:25):
We're telling our clients.
Speaker 13 (24:26):
Yes, rates might come down, but it's not a guarantee
and it likely won't happen overnight. The FED ones clear
and sustained progress. We're talking months, not weeks, and.
Speaker 12 (24:35):
When rates do start to come down, they're probably going
to move slowly. One cut won't suddenly bring mortgage rates
back to three percent. It'll be gradual. So it's smart
to plan ahead.
Speaker 13 (24:45):
Totally agree, whether you're investing by a home or even
just budgeting your savings. It's all about having a flexible
plan that can adjust as the economic picture evolves.
Speaker 12 (24:54):
And if you're not sure what that looks like for
your situation, talk to your advisor.
Speaker 9 (24:58):
This is exactly what.
Speaker 13 (24:59):
We're here forbsolutely, our door is always open.
Speaker 12 (25:01):
Well, Greg, that should wrap this up. Thanks for your
time today, you too, I one of the water.
Speaker 2 (25:06):
Thank you.
Speaker 1 (25:07):
To get in touch with Greg Murray or Mary Madeline
Kelly or any member of the Kelly Financial team call
eight eight eight eight hundred eighteen eighty waters.
Speaker 2 (25:21):
I'm John Budris and welcome to a new edition of
Kelly Financials. What would Bill say? The wit and wisdom
of the late Bill Kelly. Today we'll address fact from
the fiction.
Speaker 7 (25:32):
You can always make money if you haven't if you
lose it all, it's very difficult to do that.
Speaker 4 (25:37):
So you have to have a plan.
Speaker 7 (25:39):
If the market goes up quite a bit or down
quite a bit, you have to be ready.
Speaker 4 (25:43):
And how do you sort fact from fiction?
Speaker 2 (25:46):
Download Kelly Financial's Consumer Guide simply called the value of
an objective opinion. With so much at steak 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
(26:08):
or call eight eight eight eight hundred and eighteen eighty
one to get the guide.
Speaker 4 (26:13):
Ladies and gentlemen, sort fact from fiction.
Speaker 2 (26:15):
We are Kelly Financial Services. Come retire with.
Speaker 1 (26:18):
Us Safe Money Strategies with John Budris and Kelly Kelly.
Call the team on eight eight eight hundred, eighteen eighty one.
Speaker 2 (26:29):
Thank you, Cared, and we are back. I'm indeed John Budris,
the co host of Safe Money Strategies, and as I
say every Saturday, thank you for joining me this morning
from the bottom of my heart, and I really do
mean that well. On this show we talk a lot
(26:51):
about protection, mostly to protect your retirement, but that means
protecting your life, not just from decisions, but from the
real world challenges that come in over time against which
we really don't have much control. All we can control
(27:12):
is how we respond, and one of the biggest is inflation. Now,
inflation doesn't crash like a medior or a big market downturn,
or scream like a headlined. What it does is it
quietly raises the cost of everything from eggs to your
(27:35):
electric bill. And how does this happen. Well, to simplify
and maybe to oversimplify, it's our government does it. It
does it in two principal ways. It either prints more
money or it borrows more money, and in so doing
creates more money out of nothing. And therefore your money,
(27:56):
which was made out of something that is your long
life of hard work, gets diluted, gets diminished, and your
cost of living goes up. That's really how it works.
It's the government that does it, not you the government,
but it's up to you to protect yourself. And if
you're not prepared, inflation can slowly chip away at your
(28:21):
retirement that you've worked your whole life to build. So
with me today as she is every Saturday, is Kelly Kelly,
the CEO of Kelly Financial Services, and we're going to
talk about how inflation shows up in every day retirement
living and what you can do to protect your nest
egg without feeling that you're losing control. So Kelly, good morning.
Speaker 3 (28:46):
Good morning John, happy to be here with you on
this Saturday morning.
Speaker 2 (28:50):
Well, thanks, Kelly. Today we're talking about how our listeners
can protect their wealth from inflation because it's everywhere you
just look. It's like the air we breathe.
Speaker 3 (29:02):
It's so true, John, Inflation doesn't just impact Wall Street.
It impacts our grocery list, and our travel plans, and
even the gas in our cars.
Speaker 2 (29:13):
So what's really causing it? On a granule level.
Speaker 3 (29:18):
It's a combination of factors. Supply chains are still recovering
post pandemic, there are labor shortages driving up wages. Plus
global demand has rebounded faster than supply can keep up.
Then add in energy and food costs and you get
persistent inflation.
Speaker 2 (29:38):
So it's not then just about politics or spending bills.
Speaker 3 (29:42):
Correct. While government policy can influence inflation, this is also global.
Countries everywhere are facing similar pressures.
Speaker 2 (29:52):
So what does this mean for the average retire or
someone who's getting near retiring.
Speaker 3 (29:58):
It means they're purchasing is shrinking without adjustments. These same
dollar buys less year after year, and that can silently
chip away at a retirement plan.
Speaker 2 (30:11):
Okay, then, well, how should our listeners respond to this
without overreacting?
Speaker 3 (30:17):
I'd say, don't panic. Plan instead. Understanding what's driving inflation
helps you make better decisions rather than emotional ones.
Speaker 2 (30:28):
You know, I remember inflation being brutal in the late
nineteen seventies. Is today's situation anything like that.
Speaker 3 (30:37):
It's different. There are some parallels, though. Back then inflation
was driven by oil shocks and policy mis steps. Today
inflation is also energy related, but there's more complexity to it.
Speaker 2 (30:51):
Well, how did retirees in the past cope with inflation?
Speaker 3 (30:55):
Well, John, those who adjusted weathered it better. They did
not stay passive when they were rebalancing investments, reducing expenses,
and staying flexible.
Speaker 2 (31:07):
How about the length of inflation, It's likely that we'll
be dealing with it for a while.
Speaker 3 (31:12):
Economists are mixed, but many expect elevated inflation to last
for a few more years. That makes preparation now essential.
Speaker 2 (31:23):
Well, that doesn't surprise me, So, Kelly, I've heard that
inflation is a silent threat to retirement. What does this
mean exactly?
Speaker 3 (31:32):
It means that inflation is subtle. Most people focus on
market swings, but inflation quietly increases everyday cost. Folks may
not feel it right away, but over time, the higher
cost of things like groceries, gas, or medications can drain
savings basterd than planned.
Speaker 2 (31:53):
So this isn't about major expenses, then, it's about everyday stuff.
Speaker 3 (31:58):
That's right, John, People spend two hundred dollars more each
month than expected because of rising costs. That adds up
to over two thousand dollars a year. Multiply that by
a decade, and this is a real dent in their
nest egg.
Speaker 2 (32:14):
So how can retirees protect themselves from that kind of
slow erosion?
Speaker 3 (32:20):
I'd say start by identifying where inflation is hitting hardest.
Then review their spending plan with their advisor. Rebalancing may
be necessary.
Speaker 2 (32:32):
Okay, let's talk more about some solutions. What's the first
thing retirees should do if they're worried about inflation.
Speaker 3 (32:41):
I'd say a great place to start is with a
portfolio review. At Kelly Financial Services, our advisors guide our
clients on their asset mix. They ensure that it reflects
today's economic environment and not the one from five years ago.
Speaker 2 (33:00):
So are we talking about major changes or small adjustments?
Speaker 3 (33:05):
They're usually small smart adjustments like shifting away from low
yield holdings or rebalancing more frequently, it's about helping clients
stay aligned with their goals and the market reality.
Speaker 2 (33:20):
Okay, so what role does cash flow planning play?
Speaker 3 (33:24):
A big one knowing how much is being spent helps
to plan for inflation. By understanding was essential versus flexible,
avoids tapping into savings too quickly.
Speaker 2 (33:37):
It sounds like it's less about how they invest in
more about how they structure their retirement income Exactly.
Speaker 3 (33:45):
A well structured withdrawal plan will offset inflation without unnecessary risk.
Speaker 2 (33:52):
Well, we've covered a lot today, Kelly, so let's talk
about getting some help. How can a financial advisor really
make a difference with inflation?
Speaker 3 (34:01):
A good advisor helps folks plan ahead and not just react.
Our Kelly advisors build inflation into their projections while updating
income strategies and suggesting smart tax moves.
Speaker 2 (34:15):
Ken an advisor help folks feel less anxious about rising prices.
Speaker 3 (34:20):
Absolutely, peace of mind comes from having a plan. Our
Kelly advisors help our clients adjust their plans without panic.
Speaker 2 (34:30):
Well you have a resource about inflation. I believe that
our dear listeners can get We do.
Speaker 3 (34:37):
Our free investor Guide Inflation and your Retirement? Are you
prepared for rising costs? Has a number of investment and
savings tips to help protect you against prolonged high inflation rates.
Speaker 2 (34:53):
You take the guesswork right out of planning for inflation, Kelly,
so thanks for that. To get the guide and 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. It's all the time we have
for now. Thanks so much for joining me, and when
(35:13):
we do come back, we're going to talk about smart
inflation strategies like considering the right asset classes, which debt
makes sense to pay off now, and why working with
a fiduciary means your money will be protected in today's economy.
You're listening to Save Money Strategies the radio show heard
(35:33):
right here on the iheartapp. We're in our twentieth year
of broadcasting, so thanks for tuning in and stay tuned
because we will be back in a New York.
Speaker 1 (35:43):
Commitute 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 (35:58):
Ready to enjoy your golden year 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
(36:19):
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
We're Kelly Financial. Come retire with us.
Speaker 1 (36:27):
Safe Money Strategy with John Budris and Kelly Kelly. Call
the team on A eight eight hundred eighteen eighty one again.
Speaker 2 (36:42):
And we are back. I'm John Budris, the co host
of Safe Money Strategies, and thanks for joining me this morning.
If you are retired or planning to be, inflation is
not just a headline, it's a reality, and a very
sobering reality. And while it can feel like something you
(37:03):
can't control, which is true you can't. The truth is
you have more power than you think to react, adjust,
and accommodate inflation. Earlier, we talked about the what, why,
and when of inflation. In this part of our discussion,
(37:23):
we're going to dive into practical steps to help retirees
stay in control, like adjusting your portfolio and reducing your
fixed expenses. So let's bring back Kelly Kelly, the CEO
of Kelly Financial Services, and she's going to be sharing
with us the how of protecting wealth from inflation. By
(37:46):
using smart strategies and the right tools, you can weather
rising costs and keep your lifestyle intact. Good morning, Kelly,
and welcome back.
Speaker 3 (37:56):
Good morning, John. Happy to be back with you on
this Saturday morning.
Speaker 2 (38:01):
Kelly, we're continuing the conversation about strategies to protect your
wealth from inflation. When we wrapped up the last segment,
we were talking about solutions, and I'd like to go
down that path a little bit more.
Speaker 3 (38:15):
Sounds good, John, Let's do it great.
Speaker 2 (38:18):
So let's start with asset classes that help with inflation protection. Now,
some folks say real estate or commodities are good hedges.
What's your take on.
Speaker 3 (38:30):
That they can be. Real estate, especially rental properties, can
provide income that adjust with inflation. Commodities and certain sectors
like energy often rise when inflation is high.
Speaker 2 (38:46):
Are there any risks with certain asset classes retire should
watch for?
Speaker 3 (38:51):
There are some, so remember that diversification still matters even
when protecting against inflation.
Speaker 2 (39:00):
This is never a one size fits all, no.
Speaker 3 (39:04):
These tools need to be tailored to age, income needs
and overall risk tolerance. That's where a fiduciary advisor adds value.
Speaker 2 (39:14):
Well, they really do. They explain things so retirees get clarity.
Speaker 3 (39:19):
That's true.
Speaker 2 (39:20):
Like, for example, CPI. That's a term that comes up
a lot. Could you care to explain what CPI is?
Speaker 3 (39:29):
Of course? CPI stands for Consumer Price Index and it
measures the average change and prices over time for a
basket of goods and services such as food, transportation, and
medical care.
Speaker 2 (39:45):
And why should that matter for retirees?
Speaker 3 (39:47):
Well, because it directly impacts the cost of living. Many
pension increases and social security adjustments are tied to the CPI.
Speaker 2 (39:58):
Is that something that people should checking regularly?
Speaker 3 (40:01):
I'd say once a month. This's plenty. It gives a
sense of where prices are heading and whether an income
plan needs adjusting.
Speaker 2 (40:10):
So, Kelly, is inflation always bad?
Speaker 3 (40:14):
Not always? John, mild inflation is normal, But left unchecked,
inflation can erode savings. Staying aware is the best defense.
Speaker 2 (40:26):
Okay, let's pivot to another hot topic when it does
come to inflation, that's debt. Should retirees be rushing off
to pay debt?
Speaker 3 (40:35):
If it's high interest debt? I'd say yes, credit cards,
personal loans, anything over seven percent. This draining resources faster
than inflation.
Speaker 2 (40:46):
How about mortgages. If our listeners have some.
Speaker 3 (40:50):
It depends if they've got a low fixed rate, there's
less urgency. In fact, that kind of debt can be
relatively inflation resist.
Speaker 2 (41:00):
What about a dependence on fixed income? Why is this
so important for retirees to look.
Speaker 3 (41:06):
At because fixed income loses value over time in an
inflationary environment. The less they rely on it exclusively, the
more financial flexibility they have.
Speaker 2 (41:20):
So it seems like you're saying that this is more
about freedom, not just reducing bills exactly.
Speaker 3 (41:28):
It's about opening up choices. Less debt equals more control.
Speaker 2 (41:34):
Okay, let's then talk about daily life. I mean, really
the nuts and bolts of what happens between when you
wake up and go to bed and all in between.
How can people save more?
Speaker 3 (41:44):
Start small? This can look like planning meals, using public transit,
shopping smart, and taking care of their help, especially since
preventative care saves money in the long run.
Speaker 2 (42:00):
When it comes to groceries, there are farmers' markets and
community gardens. Are these frugal or smart?
Speaker 3 (42:07):
It's very smart. Local seasonal food is often cheaper and healthier.
Is also a great way to stay active and engaged.
Speaker 2 (42:16):
What about budgeting tools? Are people really using them?
Speaker 4 (42:20):
Oh?
Speaker 3 (42:20):
Yes, they are. Apps and basic spreadsheets help retires track
spending and identify waste. Awareness is half the battle.
Speaker 2 (42:30):
So frugality doesn't really have to mean doing.
Speaker 3 (42:33):
Without absolutely it means doing more with intention. It's empowering,
not restrictive.
Speaker 2 (42:41):
When it comes to talking about solutions, Let's talk more
about real life support. How can a fiduciary help build
that plan to stay ahead of inflation.
Speaker 3 (42:51):
A fiduciary can act as a sounding board for everything
from income planning to big purchases. Our Kellys are there
to help our clients walk through decisions like can I
afford to help my kids with college? Or should I
delay that RV purchase. This is all done through the
(43:12):
lens of their retirement plan, So.
Speaker 2 (43:15):
Your advisor is not just looking at stocks and bonds.
They're helping with life decisions exactly.
Speaker 3 (43:22):
Our Kelly advisors take a holistic view. They consider things
like healthcare costs, taxes, estake goals, and how all of
that fits together under inflation pressure.
Speaker 2 (43:36):
How often should people be meeting with their advisors, especially
in times like these?
Speaker 3 (43:42):
At least once or twice a year. Some clients meet quarterly.
It all depends, I would say, more often if their
situation changes.
Speaker 2 (43:52):
Other than time with a Kelly Advisor. What other resources
can listeners tap into if they have questions?
Speaker 3 (43:59):
We also we have our free investor Guide Inflation and
your Retirement. Are you prepared for rising cost in it?
Our listeners can find strategies that help hedge against rising
inflation rates.
Speaker 2 (44:14):
Sounds very useful, Kelly, and thanks for that. To get
the guide and make a complimentary appointment with the Kelly
Financial Advisor called eight eight eight eight hundred and eighteen
eighty one or email Kelly at Kellyfinancial dot org. It's
all the time we have for now, and thanks so
much for joining me. You're listening to Save Money Strategies
(44:35):
the radio show heard right here on WRKO and streaming
on the iheartapp. We're in our twentieth year of broadcasting,
so thanks for tuning in and stay tuned because we
will be back in just the flash.
Speaker 3 (44:51):
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? My complimentary 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
(45:13):
eighteen eighty one or email Kelly at Kellifinancial dot org.
We're Kelli Financial. Come retire with.
Speaker 5 (45:20):
Us, Welcome back to safe money Strategies with Kelly Financial Services.
I'm like you set chief operating officer alongside Greg Workman
wherehead to help you build smarter strategies that protect.
Speaker 9 (45:33):
And grow your retirement savings.
Speaker 5 (45:35):
Let's talk more about capital gains tax rates and how
they can impact your bottom line.
Speaker 4 (45:40):
Here's how they break down.
Speaker 10 (45:41):
Long term capital gains tax rates are currently set at
three levels, zero, fifteen, or twenty percent, depending upon your
taxable income. Lower income taxpayers may pay zero, middle generally
pay fifteen percent, and the highest earners face the twenty
percent rate.
Speaker 5 (46:00):
So how does the irs decide whether you pay zero,
fifteen or twenty percent on your long term capital gains?
It all comes down to your taxable income, which includes
not just wages or salary, but also things like retirement distributions,
rental income, dividends, interest, and of course, capital gains themselves.
Speaker 10 (46:19):
Exactly your taxable income determines your tax bracket and therefore
your capital gains rate. For instance, if your income pushes
you into a higher bracket, you might pay the higher
fifteen or twenty percent capital gains rate instead of zero.
Speaker 5 (46:35):
That's why it's important to look at your entire financial picture,
not just your gains when planning to sell investments or property.
Speaker 9 (46:42):
But there's more to it.
Speaker 4 (46:43):
For higher earners.
Speaker 10 (46:44):
There's also the Net Investment Income tax or NAT, which
is an additional three point eight percent tax on investment income,
including capital gains.
Speaker 5 (46:55):
So for some the combined rate on capital gains could
approach nearly twenty four percent. That's why timing your sales
and understanding your income brackets is so important.
Speaker 10 (47:05):
And these rates apply not only to real estate, but
also to stocks, bonds, mutual funds, and other investments.
Speaker 5 (47:12):
Speaking of investments, you can also use capital losses to
offset your capital gains, which brings us to the important
concept of tax loss harvesting.
Speaker 10 (47:21):
Tax loss harvesting means selling investments that have lost value
to offset gains that you've realized from selling your winners.
For example, you have ten thousand in gains or profit,
but six thousand in losses, you only pay taxes on
the difference a four thousand dollars net gain.
Speaker 5 (47:41):
And if your losses exceed your gains, you can deduct
up to three thousand against your ordinary income per year.
Speaker 9 (47:48):
Any remaining losses can be carried forward to future years.
Speaker 10 (47:52):
This strategy can significantly reduce your tax bill if done thoughtfully,
especially near the end of a year.
Speaker 5 (47:59):
One rule watch out for is the IRS's wash sale rule.
It prevents you from claiming a loss if you buy
the same or a substantially identical security within thirty days
before or after the sale. So if you sell a
stock at a loss but buy it back right away,
you won't.
Speaker 9 (48:18):
Get the tax benefit of that loss. The IRS disallows it.
Speaker 10 (48:23):
Because all these decisions, whether to sell a home, a rental,
or investments, can have a tremendous impact on the success
of your retirement plans, they should not be taken lightly.
Speaker 5 (48:33):
Poorly timed sales or missed opportunities for tax loss harvesting
can cost you thousands, even tens of thousands of dollars
over time.
Speaker 10 (48:42):
And that's why strategic tax planning, not just tax preparation,
is so important. It's about looking ahead, understanding the rules,
and making moves that keep more of your money working
for you.
Speaker 5 (48:56):
At Kelly Financial Services, we work closely with our call
clients to help them navigate these complex decisions by tailoring
strategies to individual goals and tax situations. As a reminder,
we're tax planners, not tax preparers. We provide guidance and strategy,
but all tax returns and final decisions should be reviewed
(49:17):
with a CPA or a qualified tax professional.
Speaker 10 (49:20):
Bottom line, whether you downsize, rent, or relocate, it pays
to plan ahead, talk with your advisor, run the numbers,
and consider your long term vision. Our team has the
tools and the knowledge to help you crunch the numbers
with confidence.
Speaker 9 (49:38):
And remember, involve your family.
Speaker 5 (49:40):
Real estate is often a cornerstone of both retirement security
and legacy, and we'll open the communication, the better the outcome.
If all of this sounds helpful but maybe a bit overwhelming,
that's where we come in. At Kelly Financial Services. We
specialize in building retirement income plans that are both stable
and customized, and we'd love to help you take the
next step.
Speaker 10 (50:01):
Call us today at Triple eight eight hundred eighteen eighty one.
Again that number is eight eight eight eight hundred one,
eight eight one or visit us online at Kellyfinancial dot
org to schedule your complimentary retirement income analysis. Your retirement
should be stress free, not filled with guesswork. Let's build
(50:23):
a strategy that gives you clarity and confidence. Thank you
for joining us today until next time.
Speaker 5 (50:30):
I'm Greg Workman and I Mike you said join us
next week for more safe money strategies.
Speaker 8 (50:42):
Joining us now, as she always does at this time,
the co founder, president CEO of Kelly Financial Services, and yes,
that is her wonderful.
Speaker 2 (50:56):
Name, Kelly, Kelly Kellie.
Speaker 14 (51:00):
How are you good morning, Jeff, I am good. Retirement
isn't just about money, It's about meaning. At Kelly Financial Services,
we believe the happiest retirees have more than just a portfolio.
They have good health, they have companionship, they have a purpose, and.
Speaker 3 (51:22):
They live with gratitude. The happiest retirees never stop learning,
they never stop dreaming. That's why we created our free guide,
Six Secrets to a Happy Retirement.
Speaker 14 (51:34):
It's packed with insights to help you build a life
full of purpose, comfort, and peace of mind. Whether you're
dreaming of backyard adventures, travel, volunteering, or just more time
with family. This guide us for you to get your
coffee or to schedule a conversation with one of our
trusted advisors. Give us a call or email Kelly at
(51:57):
Kellyfinancial dot org or our website for our radio rewind
Jeff have a wonderful weekend, My best of Grace, Indi, kiddos,
I have.
Speaker 8 (52:06):
A wonderful weekend as well. Kelly, please give my best
to everyone at Kelly Financial and again. To schedule your
free consultation or to get your free copy of the guide,
call eight eight eight eight hundred eighteen eighty one eight
eight eight eight hundred eighteen eighty one, or you can
email Kelly directly Kelly at Kelly Financial dot org.
Speaker 9 (52:29):
Kelly at Kelly Financial dot org.
Speaker 1 (52:36):
Safe Money Strategies A eight eight hundred one eight eight one.
Speaker 7 (52:43):
I went to see my dad several months before he
passed away, and he was having a hard time, and
there was a green dish in our family. For years,
I was so afraid of asking my dad if I
wanted this dish, and I have it in my office.
It's a very wide, clear green dish that you could
put fruit in. I came to see my dad and
(53:05):
he wasn't doing very well and I said to him, Dad,
can I have the green dish? You're not displaying it anymore,
and I'm afraid someone's gonna kick it over there on
that shelf. And he came alive. All of a sudden,
he said, sure, take the dish, Billy. It calls me. Billy,
called me, Billy, take the dish. And his eyes lit up,
(53:27):
and I said, thanks, Dad, you know I love you.
And he went back into his shell where he was
suffering with alzheimer. And I took the dish. But the
thirty seconds when he was giving me the dish he
was alive. Then it struck a chord in me because
my entire life, that's when my father was most alive,
(53:47):
when he was giving of himself, and that's why we
loved him so much. He never wanted anything for himself.
He wanted to be the Grand Knight of the Knights
of Columbus, and with seven kids in three jobs, it
was really tough to do that. But he made it.
He was seventy five years old and the oldest Grand
(54:09):
Night probably in history. But he made it, and then
he was okay. They traveled the country. He joined the
Retired Federal Employees Group. My mom and Dad went everywhere
on Earth with that group. They had a decent retirement,
nothing fancy, and then they had a rough couple of years.
They went to heaven within five months of each other.
(54:32):
If there'd been cell phones that connected to Heaven, my
mother probably would have stayed around here a little bit longer.
Speaker 1 (54:44):
Called Kelly Financial Services eight hundred, eighteen eighty.
Speaker 3 (54:48):
One, I'm Kelly Kelly from Kelly Financial. Retirement is a
time to enjoy the fruits of your labor, but is
also a period when financial stability becomes more than ever,
so seeking expert financial advice is essential, regardless of your age.
Professional guidance insureds your assets are allocated wisely, helping your
(55:11):
money last as long as you need it. The advisors
at Kelly Financial will help you take charge of your
financial future and preserve your hard earned wealth to enable
you to focus on the retirement you've dreamed of. We
have a free investor guide called designing your Fiscal House
to Weather the Elements, which highlights the steps needed to
(55:32):
build a balanced portfolio. For the guide and a free
consultation with a Kelly advisor, call eight eight eight eight
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
We're Kelly Financial. Come retire with us.
Speaker 1 (55:49):
Senior safe money Strategies with John Boudris and Kelly Kelly
eight eight eight eight hundred one eight eight one.
Speaker 2 (55:58):
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
(56:19):
maybe helping out with your grandchildren's college. 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.
(56:41):
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 Hobe, 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 deemed to be reliable, but their
accuracy and completeness cannot be guaranteed. The information provided as
general in nature and does 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 in exchange for hosting
the Safe Money Strategies Show and providing testimonials of his
personal experience as a client of Kelly Financial Services. Kelley
(57:25):
has waived the host's advisory fee in full because of
this arrangement, where the host receives compensation in the form
of a few
This is coming to us.
Speaker 2 (00:21):
Good morning, dear Boston. I'm John Budris 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, particularly on this Father's
Day weekend of twenty and twenty five. Well, we have
(00:47):
a lot on the show today, many things will of
course be talking with the advisors at Kelly Financial, and
later in the show, Missus Kelly and I will be
addressing I think these singers regular most important issue when
it comes to retirement planning and particularly retirement living, and
(01:07):
that is the beast of inflation. And that beast can
come in many forms, and it's almost something out of
Greek mythology that can present as a large thunder clap
from Zeus, or it can be an insidious snake crawling around,
(01:28):
but in the end, it steals from you, and it's
the most important issue in my view to address. Well,
I'm glad that we are meeting today here on the
day before Father's Day, on June fourteenth, and lately I've
been going back in history and speaking about events that
(01:49):
happened on that particular day that we are together on
June fourteenth, and today I want to speak just briefly,
because I don't need to talk a lot about them,
because you know how to tie them together yourselves. About
two events that have a very sad irony, because today,
in nineteen forty, on June fourteenth, the Auschwitz Concentration Camp,
(02:14):
an extermination camp opened in Nazi control Poland, beginning with
Polish prisoners of war, which then later, of course expanded
to include civilian Jews and Catholics and Gypsies and Soviet
prisoners of war. And within that one institution, far more
(02:37):
than a million could be somewhere up to two million
souls perished in that place, which almost seems inconceivable. And
the irony is that two years later, in an attic
somewhere in Holland, Young and Frank put her first notation
(02:59):
in her diary, which was noted June fourteenth. And there's
a cruel and bitter irony in these two historical events.
And on this Father's Day, I am reminded of my dad,
and many of you who have lost your dads, particularly
if they've been gone a long time, well understand that
(03:20):
as time goes forward, you miss them, more and you
miss them more because as you get older, you become
to realize, you get the equipment, the emotional and the
mental equipment to really realize what you lost. You lost
not only their love and their time and their affection,
(03:42):
but you lost their wisdom. And now is you get older,
you crave that wisdom, and you crave to share that
wisdom with your own children and those younger with you.
And I remember in the last years of my dad's life,
and he passed in two thousand and nine, he would
(04:03):
talk about his life and the lives of that greatest
generation in no way mirror hours. They grew up in
poverty and destitution during the Depression. These were the kids
who walked home from school and picked up pieces of
coal on the railroad track so they literally could cook
(04:26):
their supper or stay warm. And this was no exaggeration.
And when they came of age, when they hit their
twenties and early thirties and were about to start their lives,
what happened. World War II broke out, and then they
spent a number of years in the war, and if
they were lucky enough to come back with their bodies
(04:47):
and their minds intact, they had to start all over again.
And I remember my dad talking about his belief that
when they started to rebuild after World War Two, they
had this joy in them that they had defeated evil.
He thought there would be a golden age, a wonderful
(05:10):
new age, where that kind of brutality and grotesque, barbarism
and inhumanity would have been vanquished from the earth. And
as he got older, he realized that he was wrong,
that they did not vanquish that kind of evil. And
so today, on Father's Day, I would like us to pray,
(05:34):
to pray that we can face that evil in the
world and do what we need to do. And it's
not hard, it's rather simple. And I know it sounds
a little crazy to quote a Hollywood movie, but what
we have to do is just do what Et told
(05:56):
Elliott at the end of the movie et be good.
Not just do good, but be good to everyone, to
every man, woman, child, dog, cat, bird, everything, be good
to the wind. That's my message for you on this
Father's Day weekend, to look at everyone you see and
(06:19):
love them with the goodness that's in your heart that
God put there, because your heart was made by God.
God made your heart. We live in a world that
maybe is Satan's, but God's heart is all yours. So
Happy Father's Day.
Speaker 1 (06:47):
Safe Money Strategies with John Budrus and Kelly Kelly called
Kelly Financial on eight eight eight eight hundred eighteen eighty
one or go to Kelly Financial dot org.
Speaker 3 (07:04):
Good morning, dear friends and dear listeners. I'm Kelly Kelly,
and welcome to our Forever Young segment. I am joined
as always by my handsome and insightful son, William Kelly Junior,
as we chat every Saturday morning about life and the
current happenings of the week. Good morning, William.
Speaker 4 (07:25):
Good morning Mom.
Speaker 5 (07:25):
How are you?
Speaker 3 (07:26):
I'm doing great? How about yourself?
Speaker 4 (07:28):
I'm doing very well.
Speaker 6 (07:29):
It's been a fine week and we've gotten a lot
done and I can't complain about a productive week at all.
Speaker 3 (07:36):
Excellent.
Speaker 6 (07:37):
So Father's Day is coming up soon, and usually during
this time we take a moment to remember Dad and
also think about Poppy. Yes, you know Dad's father and
Gramps as many of you knew his grandfather.
Speaker 4 (07:53):
As and many of the men in our.
Speaker 6 (07:55):
Lives who have been like fathers to me or to us,
and just take a day to appreciate them and send
them a text or ask how they were doing, or
give them a gift or any of those things. So
we're looking forward to a very peaceful Father's Day.
Speaker 3 (08:12):
Yes, it is bittersweet, but I'm happy. I was able
to see my father two weeks ago. It was brief,
but I was able to spend some time with him,
so that was nice.
Speaker 2 (08:23):
That's good.
Speaker 6 (08:24):
I know you're helping him out a lot with some
things around the house, and he is very lucky to
have a daughter like you.
Speaker 3 (08:29):
Oh well, it's time. He has decided he needs to
retire at eighty six. He's selling the farm.
Speaker 6 (08:36):
Isn't that wonderful to retire? That is amazing for I
can't believe it. I'm probably going to work until i'm
eighty six as well. I think we all will in
this family. It feels like not a bad thing. I
know he liked it. He really was good at his job.
Speaker 4 (08:51):
He was.
Speaker 6 (08:52):
I remember I got to work with him, and I
couldn't believe what he could do at his age. And honestly,
I hope I'm as as mobile as he is when
I'm his age. So he has a very very wonderful daughter,
daughters and son who are all willing to help him
and get him set up for the next chapter of
his life. So I think that's spectacular.
Speaker 3 (09:14):
Well, thank you, William, and I agree. I agree it's
time for him to relax, absolutely joy enjoy socializing and
being with having some activities, yes, yeah, and not just
focused on the farm.
Speaker 6 (09:29):
Yeah, he needs to reap the rewards of his work
for all these years, not just at the Chicken House,
but also at the shore implement company. He is a
very hard worker and it definitely runs in the family,
and we could see it through you, and I think
Dad will be very happy right now. He'd be very
(09:49):
pleased with how things are going with this company, with
how things are going with our family.
Speaker 3 (09:55):
I know he is proud of you and Mary Madaline,
thank you. I know he's smiling down.
Speaker 4 (10:01):
Thank you.
Speaker 6 (10:02):
Well. I try and Ray Madelin definitely tries too. She's
also a very hard worker. So we'll see. I mean,
I'm sort of a father in a way, you know,
to a cat and a dog, and so I mean
the responsibility of fatherhood is it's a lot, it really is.
It's overbearing sometimes, but we've got to push through.
Speaker 3 (10:21):
Yeah, you know, so you are funny, William. Thanks well,
do keep us on your dial. We have a lot
of great information coming your way. Mike Ducett and Greg
Workman will unpack the real life impact of capital gains taxes,
from downsizing your home to inheriting property and share practical
(10:42):
strategies to help you keep more of what you earned. Then, Mary,
Madeline Kelly and Greg Murray will tackle one of the
biggest questions on everyone's mind, will interest rates finally come down?
They will break down what the latest inflation data means
for retirees, home buyers, and everyday investors. And I will
(11:05):
be back with John Boudris. We will be talking about
what inflation really means for retirees today and how with
the right steps you can protect your savings, maintain your
lifestyle and stay ahead of rising cost And of course
we'll have some wit and wisdom from Bill Kelly at
the end of the hour. That's all for Forever Young today.
(11:27):
Thank you for listening, and William, thank you for joining
me this morning. I look forward to speaking with you
next Saturday.
Speaker 6 (11:34):
Love you to Mom, and as do I.
Speaker 2 (11:44):
I'm John Boudris and welcome to a new edition of
Kelly Financials. What would Bill say? The wit and wisdom
of the late Bill Kelly, who today tests time time.
Speaker 7 (11:55):
You don't have as much left today as you had yesterday.
It's the rule of science. When's the best time to
plant a tree twenty years ago? When's the second best
time to plant a tree? Tomorrow? Today? Whenever you can
get to it, that's the next best time.
Speaker 2 (12:10):
There's no time like the present to begin saving, planning
and enjoying retirement. So download our consumer guide simply called
a Happy Retirement and find six secrets of how you
can spend your time to cultivate happiness and retirement well lived.
Go to Kelly Financial dot org or call eight eight
(12:31):
eight eight hundred eighteen eighty one to spend some time
with one of our financial advisors.
Speaker 4 (12:36):
Time, ladies and gentlemen, it's not too late.
Speaker 2 (12:39):
We are Kelly Financial. Come retire with us.
Speaker 1 (12:44):
Safe money strategies brought to you by Kelly Financial Services.
Call eight eight eight eight hundred eighteen eighty one. We'll
go to Kelly Financial dot Org.
Speaker 2 (12:56):
Come retire with us.
Speaker 8 (12:58):
Okay, my friends, retirement isn't the end of the novel
of your life. It's a brand new chapter. But let's
face it, a lot of people head into it unprepared.
Between inflation, market swings, rising taxes, even the kids moving
back home, they can get overwhelming and fast. That's where
Kelly Financial comes in. CEO Kelly Kelly put together a
(13:21):
free guide. It's called Retire Your Fear, Plan Your Future.
The guide spells out what you need to know about retirement,
income taxes, social Security, and the good news living longer
than expected. And it's all written in plain English, no
Wall Street jargon. This guy takes the guesswork out of
retirement and again it's absolutely free. So call now to
(13:45):
get your copy eight eight eight eight hundred eighteen eighty
one eight eight eight eight hundred eighteen eighty one or
email Kelly at Kellyfinancial dot org. That's Kelly at Kelly
Financial dot org.
Speaker 9 (14:03):
Hello and welcome to save Money Strategies.
Speaker 5 (14:05):
I'm Mike du Said, Chief operating officer at Kelly Financial.
We believe every client deserves a clear, written financial plan
to help achieve their dreams. Our goal to help you
retire with confidence, and that's why we say come retire
with us.
Speaker 10 (14:18):
I'm Greg Workman, investment advisor at Kelly Financial Services. Last
week we started a really important conversation about downsizing your
home as a strategy to reduce expenses in retirement. This
is a big topic because housing costs often take up
a large part of retirees' budgets, and making smart decisions
(14:40):
here can free up cash flow and improve your financial security.
Speaker 9 (14:45):
Yeah, exactly, Greg.
Speaker 5 (14:46):
When you think about downsizing, selling your primary residence is
usually the first step, But as we said last week,
it's important to understand the tax implications of that sale,
especially the capital gains tax exclusion for prime residences.
Speaker 10 (15:01):
Many homeowners don't realize they may qualify to exclude up
to two hundred and fifty thousand in gains if single,
or five hundred thousand if married filing jointly when selling
their primary residence.
Speaker 4 (15:14):
This exclusion can save you.
Speaker 10 (15:16):
Thousands, even hundreds of thousands in taxes, money you can
keep working for your retirement.
Speaker 9 (15:23):
But it's not just about the exclusion.
Speaker 5 (15:26):
Calculating your adjusted cost basis is crucial. This means starting
with what you paid for the home, then adding the
costs of any capital improvements, such things that add value
or extend the life of the property. This could be
remodeling the kitchen, adding new bathroom, putting on a new roof,
or finishing the basement. These aren't routine repairs, but significant upgrades.
(15:48):
They raise your adjusted cost basis, which reduces your taxable gain.
Speaker 10 (15:52):
For example, say you bought your home twenty years ago
for three hundred thousand. Over the years, you spend fifty
on capital improvements such as a new kitchen, upgraded HVAC,
and landscaping. Now you're selling the home for six hundred thousand.
Your adjusted basis is three point fifty, so your gain
(16:13):
is two hundred and fifty thousand.
Speaker 5 (16:14):
Before we move on, There's another important concept every investor
should understand, the cost basis step up.
Speaker 11 (16:22):
Cost basis.
Speaker 10 (16:23):
Step up happens when someone inherits an asset like a
home or investments. Instead of inheriting the original purchase price,
the cost basis is stepped up to the asset's fair
market value at the time of the owner's death.
Speaker 9 (16:39):
This could be a huge benefit.
Speaker 5 (16:40):
For example, say your parents bought a home decades ago
for one hundred thousand dollars and it's now worth seven
hundred thousand. When you inherited, your cost basis is stepped
up to seven hundred thousand.
Speaker 10 (16:53):
Exactly if you decide to sell the inherited property right away.
For seven hundred, there would be little or no capital
gains to because your cost basis matches the sale price.
Speaker 5 (17:03):
And that's a powerful tool for minimizing capital gains taxes,
both for the investor and for years. It means that
appreciation during the original owner's lifetime can often pass on
tax free, which can preserve wealth across generations.
Speaker 10 (17:19):
Of course, this step up doesn't apply to assets that
are gifted during a person's lifetime. It only applies upon
inheritance after death, so proper estate planning plays a key
role here.
Speaker 5 (17:32):
And it's another reason why working with a qualified tax
planner and a state attorney is essential to maximize these
benefits and make sure your legacy is protected.
Speaker 10 (17:42):
But what if the property you're selling is not your
primary residence.
Speaker 11 (17:45):
Maybe it's a rental or vacation home.
Speaker 10 (17:48):
In that case, the capital gains exclusion does not apply.
You're responsible for paying taxes on the entire game the
difference between the selling price and your adjusted cost basis.
Speaker 5 (17:59):
And if it was a rental property, you also need
to factor in depreciation recapture over the years. You probably
claim to depreciation deductions to reduce your taxable rental income,
but when you sell the IRS wants that back, and
it's taxed at a maximum rate of twenty five percent.
That can add as significant tax build, so it's essential
to plan ahead.
Speaker 10 (18:19):
Another critical factor is how long you have held the property.
The IRS taxes gains differently depending upon whether the investment
was held for more than one year or not. Gains
on investments held one year or less are considered short
term and are taxed at your ordinary income rates, which
can be as high as thirty seven percent. But if
(18:41):
you hold the investment for more than one year, you
qualify for the long term capital gains tax.
Speaker 11 (18:45):
Rates, which are significantly lower.
Speaker 9 (18:48):
That's a great place to pause for a moment.
Speaker 5 (18:50):
We've covered a lot about capital gains basics and how
they affect your financial pitchure. When we return, we'll dive
deeper into how capital gains rates are determined and its
strategies to minimize the tax burden on your investments.
Speaker 9 (19:03):
Stay tuned, we'll be right back.
Speaker 1 (19:08):
Kelly Financial Services, eight hundred eighteen eighty one.
Speaker 5 (19:13):
I believe that this nation should commit it zel achieving
the goal of landing a man on the moon and
returning him safely to the.
Speaker 2 (19:21):
Earth six five four three two one zero All engine rue.
Speaker 3 (19:32):
Let go on to follow level.
Speaker 2 (19:33):
Remember those Apollo Moon missions one of America's greatest adventures
and achievements too. The nation set a goal and then
realized it. What are your goals? At Kelly Financial Services.
We've got the right team and technology to help launch
your retirement planning. Let us help you set and reach
(19:53):
your goals for your greatest adventure and achievement. Call us
at eight eight eight eight hundred eighteen eighty one or
visit us at Kellyfinancial dot org. Where do you want
to land?
Speaker 1 (20:06):
We're a tank galitybay.
Speaker 12 (20:07):
Here be landed.
Speaker 2 (20:09):
We are Kelly Financial Services. Come retire with.
Speaker 1 (20:12):
Us the money rap with Kelly Financial Advisors. Greg Murray
at Mary Madeleine Kelly.
Speaker 11 (20:20):
Good morning.
Speaker 13 (20:21):
This is Greg Murray, Senior vice president and Chief Compliance
Officer at Kelly Financial Services. Joining me today is Mary
Madeline Kelly, one of our wealth advisors. How are you
doing today?
Speaker 12 (20:30):
Good morning, I am doing great, Thanks for asking. I'm
getting ready to go to a family friend's wedding, which.
Speaker 3 (20:37):
We are all very excited about.
Speaker 12 (20:39):
And Father's Day is tomorrow, which is always a heavy
day for us, but we try to spend it focusing
on all the good memories.
Speaker 13 (20:46):
Your father was a big influence in my life. He
is the reason I am where I am today and
the advisor I am. I wish you the best. I'll
be thinking of him as well.
Speaker 12 (20:54):
Well, you meant quite a lot to him as well.
For our time today, I figured we could chat about
something I think a lot of people are wondering. Are
we finally going to see interest rates come down?
Speaker 11 (21:05):
Yes, that's a big question lately.
Speaker 13 (21:07):
Everyone from first time bone buyers to retirees living on
fixed income has then watching the Fed leg it's the weather,
trying to predict that the pressure's going to ease.
Speaker 11 (21:15):
So let's break it up. Where do we actually stand
right now?
Speaker 12 (21:18):
Well, the latest inflation numbers came out recently and they're
showing some mixed signals. As of April, headline PCEE, which
is the Fed's preferred inflation gauge, is sitting at two
point seven percent year over year, and core pce which
excludes food and energy, is at two point eight percent.
Speaker 13 (21:35):
And just for comparison, we also have the CPI or
Consumer Price Index, which is up three point four percent
year over year in April, with core CPI at three
point six, so well, inflation is definitely down from the
highs WESA on twenty twenty two, we're still about that
two percent target the Fed keep stressing.
Speaker 12 (21:51):
Exactly, and that two percent target isn't just a random number.
It's the Fed's benchmark for what they considered price stability.
And until inflation and especially core PCEE gets down to
or close to that level and stays there, we're probably
not going to see a weight cut.
Speaker 13 (22:07):
And to be fair, the Fed is being really cautious,
maybe even a little too stubborn, but with good reason.
They said they'd rather keep rates higher for longer than
risk cutting too soon and reigniting inflation.
Speaker 12 (22:18):
Right and Jerome Howel's made it clear they want to
see more consistent progress, and honestly, even though inflation has
come down a lot, that last stretch from say two
point eight percent to two might be the hardest part.
Speaker 13 (22:30):
And you're starting to hear more economists refer to this
as a sticky phase of inflation. Housing costs, insurance, premium services, inflation,
all of that tends to lag. So even if goods
prices are stabilizing, there's still some really stubborn areas keeping
core numbers elevated.
Speaker 12 (22:45):
So what would need to happen for the FED to
actually feel confident enough to cut rates. We probably need
to see a few more consecutive months of core PCE
drifting down closer to two point thirty percent, maybe even
under two point two percent. Plus they'll be watching wage growth,
jobs data, consumer spending, all of it.
Speaker 11 (23:03):
Yeah, the jugger we go a lot.
Speaker 13 (23:05):
I think the fear is that if they lower reads
too early, it could stimulate demand again and undo the
progress they've made. On the other hand, if they wait
too long, they risk currding growth and triggering a recession.
Speaker 12 (23:15):
It's a delicate dance, and investors are watching every piece
of data and every FED meeting for hints. Just last month,
there was a lot of optimism that we might see
a rate cut by summer. But that's cool a bit
with the recent inflation ratings.
Speaker 13 (23:28):
And let's talk about what that all mean for regular people,
our clients, our listeners. If you're a home buyer or
thinking about refinancing, this is frustrating. Mortgage reach are still
hovering around seven percent for a thirty year fixed That's
double what people were getting just a few years ago.
Speaker 12 (23:43):
Definitely, but it's also relevant for people living on interest
income like retirees. Money market funds. In short term treasuries
are still yielding three to four percent, which is great
for now, but if and when rates fall, that income
might come down too.
Speaker 11 (23:58):
So the question becomes do you make changes now or wait?
Speaker 13 (24:01):
And of course that depends on our goals, your time horizon,
and how much your risks you're comfortable with exactly.
Speaker 12 (24:07):
For example, if someone's sitting on a lot of cash,
now might be a good time to lock in slightly
longer CDs or fixed annuity before yields come down. On
the flip side, if someone's investing for long term growth,
the lower rates could actually be good for stocks, especially
in tech and real estate.
Speaker 4 (24:24):
So here's what.
Speaker 11 (24:25):
We're telling our clients.
Speaker 13 (24:26):
Yes, rates might come down, but it's not a guarantee
and it likely won't happen overnight. The FED ones clear
and sustained progress. We're talking months, not weeks, and.
Speaker 12 (24:35):
When rates do start to come down, they're probably going
to move slowly. One cut won't suddenly bring mortgage rates
back to three percent. It'll be gradual. So it's smart
to plan ahead.
Speaker 13 (24:45):
Totally agree, whether you're investing by a home or even
just budgeting your savings. It's all about having a flexible
plan that can adjust as the economic picture evolves.
Speaker 12 (24:54):
And if you're not sure what that looks like for
your situation, talk to your advisor.
Speaker 9 (24:58):
This is exactly what.
Speaker 13 (24:59):
We're here forbsolutely, our door is always open.
Speaker 12 (25:01):
Well, Greg, that should wrap this up. Thanks for your
time today, you too, I one of the water.
Speaker 2 (25:06):
Thank you.
Speaker 1 (25:07):
To get in touch with Greg Murray or Mary Madeline
Kelly or any member of the Kelly Financial team call
eight eight eight eight hundred eighteen eighty waters.
Speaker 2 (25:21):
I'm John Budris and welcome to a new edition of
Kelly Financials. What would Bill say? The wit and wisdom
of the late Bill Kelly. Today we'll address fact from
the fiction.
Speaker 7 (25:32):
You can always make money if you haven't if you
lose it all, it's very difficult to do that.
Speaker 4 (25:37):
So you have to have a plan.
Speaker 7 (25:39):
If the market goes up quite a bit or down
quite a bit, you have to be ready.
Speaker 4 (25:43):
And how do you sort fact from fiction?
Speaker 2 (25:46):
Download Kelly Financial's Consumer Guide simply called the value of
an objective opinion. With so much at steak 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
(26:08):
or call eight eight eight eight hundred and eighteen eighty
one to get the guide.
Speaker 4 (26:13):
Ladies and gentlemen, sort fact from fiction.
Speaker 2 (26:15):
We are Kelly Financial Services. Come retire with.
Speaker 1 (26:18):
Us Safe Money Strategies with John Budris and Kelly Kelly.
Call the team on eight eight eight hundred, eighteen eighty one.
Speaker 2 (26:29):
Thank you, Cared, and we are back. I'm indeed John Budris,
the co host of Safe Money Strategies, and as I
say every Saturday, thank you for joining me this morning
from the bottom of my heart, and I really do
mean that well. On this show we talk a lot
(26:51):
about protection, mostly to protect your retirement, but that means
protecting your life, not just from decisions, but from the
real world challenges that come in over time against which
we really don't have much control. All we can control
(27:12):
is how we respond, and one of the biggest is inflation. Now,
inflation doesn't crash like a medior or a big market downturn,
or scream like a headlined. What it does is it
quietly raises the cost of everything from eggs to your
(27:35):
electric bill. And how does this happen. Well, to simplify
and maybe to oversimplify, it's our government does it. It
does it in two principal ways. It either prints more
money or it borrows more money, and in so doing
creates more money out of nothing. And therefore your money,
(27:56):
which was made out of something that is your long
life of hard work, gets diluted, gets diminished, and your
cost of living goes up. That's really how it works.
It's the government that does it, not you the government,
but it's up to you to protect yourself. And if
you're not prepared, inflation can slowly chip away at your
(28:21):
retirement that you've worked your whole life to build. So
with me today as she is every Saturday, is Kelly Kelly,
the CEO of Kelly Financial Services, and we're going to
talk about how inflation shows up in every day retirement
living and what you can do to protect your nest
egg without feeling that you're losing control. So Kelly, good morning.
Speaker 3 (28:46):
Good morning John, happy to be here with you on
this Saturday morning.
Speaker 2 (28:50):
Well, thanks, Kelly. Today we're talking about how our listeners
can protect their wealth from inflation because it's everywhere you
just look. It's like the air we breathe.
Speaker 3 (29:02):
It's so true, John, Inflation doesn't just impact Wall Street.
It impacts our grocery list, and our travel plans, and
even the gas in our cars.
Speaker 2 (29:13):
So what's really causing it? On a granule level.
Speaker 3 (29:18):
It's a combination of factors. Supply chains are still recovering
post pandemic, there are labor shortages driving up wages. Plus
global demand has rebounded faster than supply can keep up.
Then add in energy and food costs and you get
persistent inflation.
Speaker 2 (29:38):
So it's not then just about politics or spending bills.
Speaker 3 (29:42):
Correct. While government policy can influence inflation, this is also global.
Countries everywhere are facing similar pressures.
Speaker 2 (29:52):
So what does this mean for the average retire or
someone who's getting near retiring.
Speaker 3 (29:58):
It means they're purchasing is shrinking without adjustments. These same
dollar buys less year after year, and that can silently
chip away at a retirement plan.
Speaker 2 (30:11):
Okay, then, well, how should our listeners respond to this
without overreacting?
Speaker 3 (30:17):
I'd say, don't panic. Plan instead. Understanding what's driving inflation
helps you make better decisions rather than emotional ones.
Speaker 2 (30:28):
You know, I remember inflation being brutal in the late
nineteen seventies. Is today's situation anything like that.
Speaker 3 (30:37):
It's different. There are some parallels, though. Back then inflation
was driven by oil shocks and policy mis steps. Today
inflation is also energy related, but there's more complexity to it.
Speaker 2 (30:51):
Well, how did retirees in the past cope with inflation?
Speaker 3 (30:55):
Well, John, those who adjusted weathered it better. They did
not stay passive when they were rebalancing investments, reducing expenses,
and staying flexible.
Speaker 2 (31:07):
How about the length of inflation, It's likely that we'll
be dealing with it for a while.
Speaker 3 (31:12):
Economists are mixed, but many expect elevated inflation to last
for a few more years. That makes preparation now essential.
Speaker 2 (31:23):
Well, that doesn't surprise me, So, Kelly, I've heard that
inflation is a silent threat to retirement. What does this
mean exactly?
Speaker 3 (31:32):
It means that inflation is subtle. Most people focus on
market swings, but inflation quietly increases everyday cost. Folks may
not feel it right away, but over time, the higher
cost of things like groceries, gas, or medications can drain
savings basterd than planned.
Speaker 2 (31:53):
So this isn't about major expenses, then, it's about everyday stuff.
Speaker 3 (31:58):
That's right, John, People spend two hundred dollars more each
month than expected because of rising costs. That adds up
to over two thousand dollars a year. Multiply that by
a decade, and this is a real dent in their
nest egg.
Speaker 2 (32:14):
So how can retirees protect themselves from that kind of
slow erosion?
Speaker 3 (32:20):
I'd say start by identifying where inflation is hitting hardest.
Then review their spending plan with their advisor. Rebalancing may
be necessary.
Speaker 2 (32:32):
Okay, let's talk more about some solutions. What's the first
thing retirees should do if they're worried about inflation.
Speaker 3 (32:41):
I'd say a great place to start is with a
portfolio review. At Kelly Financial Services, our advisors guide our
clients on their asset mix. They ensure that it reflects
today's economic environment and not the one from five years ago.
Speaker 2 (33:00):
So are we talking about major changes or small adjustments?
Speaker 3 (33:05):
They're usually small smart adjustments like shifting away from low
yield holdings or rebalancing more frequently, it's about helping clients
stay aligned with their goals and the market reality.
Speaker 2 (33:20):
Okay, so what role does cash flow planning play?
Speaker 3 (33:24):
A big one knowing how much is being spent helps
to plan for inflation. By understanding was essential versus flexible,
avoids tapping into savings too quickly.
Speaker 2 (33:37):
It sounds like it's less about how they invest in
more about how they structure their retirement income Exactly.
Speaker 3 (33:45):
A well structured withdrawal plan will offset inflation without unnecessary risk.
Speaker 2 (33:52):
Well, we've covered a lot today, Kelly, so let's talk
about getting some help. How can a financial advisor really
make a difference with inflation?
Speaker 3 (34:01):
A good advisor helps folks plan ahead and not just react.
Our Kelly advisors build inflation into their projections while updating
income strategies and suggesting smart tax moves.
Speaker 2 (34:15):
Ken an advisor help folks feel less anxious about rising prices.
Speaker 3 (34:20):
Absolutely, peace of mind comes from having a plan. Our
Kelly advisors help our clients adjust their plans without panic.
Speaker 2 (34:30):
Well you have a resource about inflation. I believe that
our dear listeners can get We do.
Speaker 3 (34:37):
Our free investor Guide Inflation and your Retirement? Are you
prepared for rising costs? Has a number of investment and
savings tips to help protect you against prolonged high inflation rates.
Speaker 2 (34:53):
You take the guesswork right out of planning for inflation, Kelly,
so thanks for that. To get the guide and 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. It's all the time we have
for now. Thanks so much for joining me, and when
(35:13):
we do come back, we're going to talk about smart
inflation strategies like considering the right asset classes, which debt
makes sense to pay off now, and why working with
a fiduciary means your money will be protected in today's economy.
You're listening to Save Money Strategies the radio show heard
(35:33):
right here on the iheartapp. We're in our twentieth year
of broadcasting, so thanks for tuning in and stay tuned
because we will be back in a New York.
Speaker 1 (35:43):
Commitute 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 (35:58):
Ready to enjoy your golden year 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
(36:19):
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
We're Kelly Financial. Come retire with us.
Speaker 1 (36:27):
Safe Money Strategy with John Budris and Kelly Kelly. Call
the team on A eight eight hundred eighteen eighty one again.
Speaker 2 (36:42):
And we are back. I'm John Budris, the co host
of Safe Money Strategies, and thanks for joining me this morning.
If you are retired or planning to be, inflation is
not just a headline, it's a reality, and a very
sobering reality. And while it can feel like something you
(37:03):
can't control, which is true you can't. The truth is
you have more power than you think to react, adjust,
and accommodate inflation. Earlier, we talked about the what, why,
and when of inflation. In this part of our discussion,
(37:23):
we're going to dive into practical steps to help retirees
stay in control, like adjusting your portfolio and reducing your
fixed expenses. So let's bring back Kelly Kelly, the CEO
of Kelly Financial Services, and she's going to be sharing
with us the how of protecting wealth from inflation. By
(37:46):
using smart strategies and the right tools, you can weather
rising costs and keep your lifestyle intact. Good morning, Kelly,
and welcome back.
Speaker 3 (37:56):
Good morning, John. Happy to be back with you on
this Saturday morning.
Speaker 2 (38:01):
Kelly, we're continuing the conversation about strategies to protect your
wealth from inflation. When we wrapped up the last segment,
we were talking about solutions, and I'd like to go
down that path a little bit more.
Speaker 3 (38:15):
Sounds good, John, Let's do it great.
Speaker 2 (38:18):
So let's start with asset classes that help with inflation protection. Now,
some folks say real estate or commodities are good hedges.
What's your take on.
Speaker 3 (38:30):
That they can be. Real estate, especially rental properties, can
provide income that adjust with inflation. Commodities and certain sectors
like energy often rise when inflation is high.
Speaker 2 (38:46):
Are there any risks with certain asset classes retire should
watch for?
Speaker 3 (38:51):
There are some, so remember that diversification still matters even
when protecting against inflation.
Speaker 2 (39:00):
This is never a one size fits all, no.
Speaker 3 (39:04):
These tools need to be tailored to age, income needs
and overall risk tolerance. That's where a fiduciary advisor adds value.
Speaker 2 (39:14):
Well, they really do. They explain things so retirees get clarity.
Speaker 3 (39:19):
That's true.
Speaker 2 (39:20):
Like, for example, CPI. That's a term that comes up
a lot. Could you care to explain what CPI is?
Speaker 3 (39:29):
Of course? CPI stands for Consumer Price Index and it
measures the average change and prices over time for a
basket of goods and services such as food, transportation, and
medical care.
Speaker 2 (39:45):
And why should that matter for retirees?
Speaker 3 (39:47):
Well, because it directly impacts the cost of living. Many
pension increases and social security adjustments are tied to the CPI.
Speaker 2 (39:58):
Is that something that people should checking regularly?
Speaker 3 (40:01):
I'd say once a month. This's plenty. It gives a
sense of where prices are heading and whether an income
plan needs adjusting.
Speaker 2 (40:10):
So, Kelly, is inflation always bad?
Speaker 3 (40:14):
Not always? John, mild inflation is normal, But left unchecked,
inflation can erode savings. Staying aware is the best defense.
Speaker 2 (40:26):
Okay, let's pivot to another hot topic when it does
come to inflation, that's debt. Should retirees be rushing off
to pay debt?
Speaker 3 (40:35):
If it's high interest debt? I'd say yes, credit cards,
personal loans, anything over seven percent. This draining resources faster
than inflation.
Speaker 2 (40:46):
How about mortgages. If our listeners have some.
Speaker 3 (40:50):
It depends if they've got a low fixed rate, there's
less urgency. In fact, that kind of debt can be
relatively inflation resist.
Speaker 2 (41:00):
What about a dependence on fixed income? Why is this
so important for retirees to look.
Speaker 3 (41:06):
At because fixed income loses value over time in an
inflationary environment. The less they rely on it exclusively, the
more financial flexibility they have.
Speaker 2 (41:20):
So it seems like you're saying that this is more
about freedom, not just reducing bills exactly.
Speaker 3 (41:28):
It's about opening up choices. Less debt equals more control.
Speaker 2 (41:34):
Okay, let's then talk about daily life. I mean, really
the nuts and bolts of what happens between when you
wake up and go to bed and all in between.
How can people save more?
Speaker 3 (41:44):
Start small? This can look like planning meals, using public transit,
shopping smart, and taking care of their help, especially since
preventative care saves money in the long run.
Speaker 2 (42:00):
When it comes to groceries, there are farmers' markets and
community gardens. Are these frugal or smart?
Speaker 3 (42:07):
It's very smart. Local seasonal food is often cheaper and healthier.
Is also a great way to stay active and engaged.
Speaker 2 (42:16):
What about budgeting tools? Are people really using them?
Speaker 4 (42:20):
Oh?
Speaker 3 (42:20):
Yes, they are. Apps and basic spreadsheets help retires track
spending and identify waste. Awareness is half the battle.
Speaker 2 (42:30):
So frugality doesn't really have to mean doing.
Speaker 3 (42:33):
Without absolutely it means doing more with intention. It's empowering,
not restrictive.
Speaker 2 (42:41):
When it comes to talking about solutions, Let's talk more
about real life support. How can a fiduciary help build
that plan to stay ahead of inflation.
Speaker 3 (42:51):
A fiduciary can act as a sounding board for everything
from income planning to big purchases. Our Kellys are there
to help our clients walk through decisions like can I
afford to help my kids with college? Or should I
delay that RV purchase. This is all done through the
(43:12):
lens of their retirement plan, So.
Speaker 2 (43:15):
Your advisor is not just looking at stocks and bonds.
They're helping with life decisions exactly.
Speaker 3 (43:22):
Our Kelly advisors take a holistic view. They consider things
like healthcare costs, taxes, estake goals, and how all of
that fits together under inflation pressure.
Speaker 2 (43:36):
How often should people be meeting with their advisors, especially
in times like these?
Speaker 3 (43:42):
At least once or twice a year. Some clients meet quarterly.
It all depends, I would say, more often if their
situation changes.
Speaker 2 (43:52):
Other than time with a Kelly Advisor. What other resources
can listeners tap into if they have questions?
Speaker 3 (43:59):
We also we have our free investor Guide Inflation and
your Retirement. Are you prepared for rising cost in it?
Our listeners can find strategies that help hedge against rising
inflation rates.
Speaker 2 (44:14):
Sounds very useful, Kelly, and thanks for that. To get
the guide and make a complimentary appointment with the Kelly
Financial Advisor called eight eight eight eight hundred and eighteen
eighty one or email Kelly at Kellyfinancial dot org. It's
all the time we have for now, and thanks so
much for joining me. You're listening to Save Money Strategies
(44:35):
the radio show heard right here on WRKO and streaming
on the iheartapp. We're in our twentieth year of broadcasting,
so thanks for tuning in and stay tuned because we
will be back in just the flash.
Speaker 3 (44:51):
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? My complimentary 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
(45:13):
eighteen eighty one or email Kelly at Kellifinancial dot org.
We're Kelli Financial. Come retire with.
Speaker 5 (45:20):
Us, Welcome back to safe money Strategies with Kelly Financial Services.
I'm like you set chief operating officer alongside Greg Workman
wherehead to help you build smarter strategies that protect.
Speaker 9 (45:33):
And grow your retirement savings.
Speaker 5 (45:35):
Let's talk more about capital gains tax rates and how
they can impact your bottom line.
Speaker 4 (45:40):
Here's how they break down.
Speaker 10 (45:41):
Long term capital gains tax rates are currently set at
three levels, zero, fifteen, or twenty percent, depending upon your
taxable income. Lower income taxpayers may pay zero, middle generally
pay fifteen percent, and the highest earners face the twenty
percent rate.
Speaker 5 (46:00):
So how does the irs decide whether you pay zero,
fifteen or twenty percent on your long term capital gains?
It all comes down to your taxable income, which includes
not just wages or salary, but also things like retirement distributions,
rental income, dividends, interest, and of course, capital gains themselves.
Speaker 10 (46:19):
Exactly your taxable income determines your tax bracket and therefore
your capital gains rate. For instance, if your income pushes
you into a higher bracket, you might pay the higher
fifteen or twenty percent capital gains rate instead of zero.
Speaker 5 (46:35):
That's why it's important to look at your entire financial picture,
not just your gains when planning to sell investments or property.
Speaker 9 (46:42):
But there's more to it.
Speaker 4 (46:43):
For higher earners.
Speaker 10 (46:44):
There's also the Net Investment Income tax or NAT, which
is an additional three point eight percent tax on investment income,
including capital gains.
Speaker 5 (46:55):
So for some the combined rate on capital gains could
approach nearly twenty four percent. That's why timing your sales
and understanding your income brackets is so important.
Speaker 10 (47:05):
And these rates apply not only to real estate, but
also to stocks, bonds, mutual funds, and other investments.
Speaker 5 (47:12):
Speaking of investments, you can also use capital losses to
offset your capital gains, which brings us to the important
concept of tax loss harvesting.
Speaker 10 (47:21):
Tax loss harvesting means selling investments that have lost value
to offset gains that you've realized from selling your winners.
For example, you have ten thousand in gains or profit,
but six thousand in losses, you only pay taxes on
the difference a four thousand dollars net gain.
Speaker 5 (47:41):
And if your losses exceed your gains, you can deduct
up to three thousand against your ordinary income per year.
Speaker 9 (47:48):
Any remaining losses can be carried forward to future years.
Speaker 10 (47:52):
This strategy can significantly reduce your tax bill if done thoughtfully,
especially near the end of a year.
Speaker 5 (47:59):
One rule watch out for is the IRS's wash sale rule.
It prevents you from claiming a loss if you buy
the same or a substantially identical security within thirty days
before or after the sale. So if you sell a
stock at a loss but buy it back right away,
you won't.
Speaker 9 (48:18):
Get the tax benefit of that loss. The IRS disallows it.
Speaker 10 (48:23):
Because all these decisions, whether to sell a home, a rental,
or investments, can have a tremendous impact on the success
of your retirement plans, they should not be taken lightly.
Speaker 5 (48:33):
Poorly timed sales or missed opportunities for tax loss harvesting
can cost you thousands, even tens of thousands of dollars
over time.
Speaker 10 (48:42):
And that's why strategic tax planning, not just tax preparation,
is so important. It's about looking ahead, understanding the rules,
and making moves that keep more of your money working
for you.
Speaker 5 (48:56):
At Kelly Financial Services, we work closely with our call
clients to help them navigate these complex decisions by tailoring
strategies to individual goals and tax situations. As a reminder,
we're tax planners, not tax preparers. We provide guidance and strategy,
but all tax returns and final decisions should be reviewed
(49:17):
with a CPA or a qualified tax professional.
Speaker 10 (49:20):
Bottom line, whether you downsize, rent, or relocate, it pays
to plan ahead, talk with your advisor, run the numbers,
and consider your long term vision. Our team has the
tools and the knowledge to help you crunch the numbers
with confidence.
Speaker 9 (49:38):
And remember, involve your family.
Speaker 5 (49:40):
Real estate is often a cornerstone of both retirement security
and legacy, and we'll open the communication, the better the outcome.
If all of this sounds helpful but maybe a bit overwhelming,
that's where we come in. At Kelly Financial Services. We
specialize in building retirement income plans that are both stable
and customized, and we'd love to help you take the
next step.
Speaker 10 (50:01):
Call us today at Triple eight eight hundred eighteen eighty one.
Again that number is eight eight eight eight hundred one,
eight eight one or visit us online at Kellyfinancial dot
org to schedule your complimentary retirement income analysis. Your retirement
should be stress free, not filled with guesswork. Let's build
(50:23):
a strategy that gives you clarity and confidence. Thank you
for joining us today until next time.
Speaker 5 (50:30):
I'm Greg Workman and I Mike you said join us
next week for more safe money strategies.
Speaker 8 (50:42):
Joining us now, as she always does at this time,
the co founder, president CEO of Kelly Financial Services, and yes,
that is her wonderful.
Speaker 2 (50:56):
Name, Kelly, Kelly Kellie.
Speaker 14 (51:00):
How are you good morning, Jeff, I am good. Retirement
isn't just about money, It's about meaning. At Kelly Financial Services,
we believe the happiest retirees have more than just a portfolio.
They have good health, they have companionship, they have a purpose, and.
Speaker 3 (51:22):
They live with gratitude. The happiest retirees never stop learning,
they never stop dreaming. That's why we created our free guide,
Six Secrets to a Happy Retirement.
Speaker 14 (51:34):
It's packed with insights to help you build a life
full of purpose, comfort, and peace of mind. Whether you're
dreaming of backyard adventures, travel, volunteering, or just more time
with family. This guide us for you to get your
coffee or to schedule a conversation with one of our
trusted advisors. Give us a call or email Kelly at
(51:57):
Kellyfinancial dot org or our website for our radio rewind
Jeff have a wonderful weekend, My best of Grace, Indi, kiddos,
I have.
Speaker 8 (52:06):
A wonderful weekend as well. Kelly, please give my best
to everyone at Kelly Financial and again. To schedule your
free consultation or to get your free copy of the guide,
call eight eight eight eight hundred eighteen eighty one eight
eight eight eight hundred eighteen eighty one, or you can
email Kelly directly Kelly at Kelly Financial dot org.
Speaker 9 (52:29):
Kelly at Kelly Financial dot org.
Speaker 1 (52:36):
Safe Money Strategies A eight eight hundred one eight eight one.
Speaker 7 (52:43):
I went to see my dad several months before he
passed away, and he was having a hard time, and
there was a green dish in our family. For years,
I was so afraid of asking my dad if I
wanted this dish, and I have it in my office.
It's a very wide, clear green dish that you could
put fruit in. I came to see my dad and
(53:05):
he wasn't doing very well and I said to him, Dad,
can I have the green dish? You're not displaying it anymore,
and I'm afraid someone's gonna kick it over there on
that shelf. And he came alive. All of a sudden,
he said, sure, take the dish, Billy. It calls me. Billy,
called me, Billy, take the dish. And his eyes lit up,
(53:27):
and I said, thanks, Dad, you know I love you.
And he went back into his shell where he was
suffering with alzheimer. And I took the dish. But the
thirty seconds when he was giving me the dish he
was alive. Then it struck a chord in me because
my entire life, that's when my father was most alive,
(53:47):
when he was giving of himself, and that's why we
loved him so much. He never wanted anything for himself.
He wanted to be the Grand Knight of the Knights
of Columbus, and with seven kids in three jobs, it
was really tough to do that. But he made it.
He was seventy five years old and the oldest Grand
(54:09):
Night probably in history. But he made it, and then
he was okay. They traveled the country. He joined the
Retired Federal Employees Group. My mom and Dad went everywhere
on Earth with that group. They had a decent retirement,
nothing fancy, and then they had a rough couple of years.
They went to heaven within five months of each other.
(54:32):
If there'd been cell phones that connected to Heaven, my
mother probably would have stayed around here a little bit longer.
Speaker 1 (54:44):
Called Kelly Financial Services eight hundred, eighteen eighty.
Speaker 3 (54:48):
One, I'm Kelly Kelly from Kelly Financial. Retirement is a
time to enjoy the fruits of your labor, but is
also a period when financial stability becomes more than ever,
so seeking expert financial advice is essential, regardless of your age.
Professional guidance insureds your assets are allocated wisely, helping your
(55:11):
money last as long as you need it. The advisors
at Kelly Financial will help you take charge of your
financial future and preserve your hard earned wealth to enable
you to focus on the retirement you've dreamed of. We
have a free investor guide called designing your Fiscal House
to Weather the Elements, which highlights the steps needed to
(55:32):
build a balanced portfolio. For the guide and a free
consultation with a Kelly advisor, call eight eight eight eight
hundred eighteen eighty one or email Kelly at Kellyfinancial dot org.
We're Kelly Financial. Come retire with us.
Speaker 1 (55:49):
Senior safe money Strategies with John Boudris and Kelly Kelly
eight eight eight eight hundred one eight eight one.
Speaker 2 (55:58):
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
(56:19):
maybe helping out with your grandchildren's college. 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.
(56:41):
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 Hobe, 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 deemed to be reliable, but their
accuracy and completeness cannot be guaranteed. The information provided as
general in nature and does 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 in exchange for hosting
the Safe Money Strategies Show and providing testimonials of his
personal experience as a client of Kelly Financial Services. Kelley
(57:25):
has waived the host's advisory fee in full because of
this arrangement, where the host receives compensation in the form
of a few
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