Kelly Financial: Saturday, May 10, 2025

Episode Transcript

Speaker 1 (00:12):
Is coming to so.

Speaker 2 (00:21):
Good morning, dear Boston. I'm John Boudris and Kelly Financial
Safe Money Strategies indeed carries on every Saturday morning right
here on WRKO six point eighty on the AM dial
and online from just about anywhere. Even this big old
house that I grew up in on this Mother's Day weekend,

(00:42):
surrounding me everywhere are pictures of mother's, my mother, my
two grandmothers. If you are lucky enough this Mother's Day
to have your mother here with you, are you make
sure you call her, or better still, get in your
car and if you have to drive one hundred miles,
youd better do it and go spend some good time
with her, and make sure that you wash the dishes.

(01:05):
We have a lot on the show today, Kelly, Kelly
and I will be talking about a subject dear to me,
and that is what do we do in our retirement
with our big old house that we've had for generations
in the family. And sometimes it's not generations in the family,
it's maybe just one generation yours. But as you get

(01:27):
older you have to deal with it. And it's a big,
big well, it's not a problem. It shouldn't be a problem.
It's a question, it's a puzzle, it's a work of
art to be painted delicately, and missus Kelly and I
will be talking about that. We'll of course be hearing
from the Kelly Financial Advisors, and I suspect a chatter
two from Kelly and young William. So stay with us

(01:51):
and we will be right back here.

Speaker 3 (01:57):
Safe Money Strategies with John Butudris and Kelly Kelly called
Kelly Financial on eight eight, eight hundred, eighteen eighty one.
We'll go to Kelly Financial dot org.

Speaker 4 (02:11):
Good morning, dear friends and dear listeners.

Speaker 5 (02:14):
I'm Kelly Kelly, and welcome to our Safe Money Strategy
show on this fine Saturday morning. I'm joined here today
by my handsome and thoughtful son, William Kelly Junior, as
we chat every Saturday morning.

Speaker 4 (02:29):
Good morning William, Good morning Mom.

Speaker 6 (02:31):
Tomorrow is just a normal day, just a regular Sunday,
ladies and gentlemen. Nothing more to say except it's a
mother's day and you will be getting breakfast in bed
yay and your kids will just remind you of how
wonderful of a mother you've been to us.

Speaker 2 (02:48):
Everything you you've done.

Speaker 4 (02:49):
Most important thing I've ever done in my life. I
appreciate it to give birth to you. And Mary Madaline, well,
I'm very lucky to have a mother who thinks that way.

Speaker 6 (02:56):
So we'll try to make the day as comfortable for
you as possible, stress free. Bram Madlin and I were
thinking of getting a transport massage service. Unfortunately we can
find one, and the very Vdalin it was like, do
you want to get included in this? I originally said yes,
of course, but then she's like, no, it's Mother's Day,
It's for mom, It's about momse you guys are funny. Well,

(03:18):
then we ended up not finding a service, so sorry
to disappoint you, Ramdelie can give you a massage I'm
offering for you.

Speaker 4 (03:24):
Guys are funny.

Speaker 6 (03:25):
Well.

Speaker 5 (03:25):
I want to wish everyone a wonderful Mother's Day weekend,
and do keep us on your dial. We have some
great information coming your way this morning. Mike Ducett and
Greg Workman will be joining us next to share valuable
insights into ways to transform your retirement savings into reliable
sustainable income. Mary Madeline Kelly and Greg Murray will dig

(03:48):
into a timely financial topic, one that affects how you plan,
protect and grow your wealth in Today's Uncertain Environment is
a quick segment but packed with useful takeaways. Later in
the show, I will be back with John Boudris. In
part one of our discussion will break down the pros
and cons of renting versus owning in retirement, and in

(04:11):
part two will cover mortgages, mistakes to avoid and how
to fund the move whether you're downsizing or starting fresh.
And of course we'll hear a little wit and wisdom
from Bill Kelly.

Speaker 4 (04:24):
And today's clip is about.

Speaker 5 (04:26):
Marriage and I have to admit this one makes me
tear up every time I hear it.

Speaker 4 (04:32):
It's so sweet.

Speaker 6 (04:33):
Ray Madeline said that this company was built out of love.
It's true because you and Dad, you guys pretty much
started from nothing and built this business from nothing because
of your marriage. You both wanted to build something great
together and you guys wanted to help people doing it. Yes,
so I think that's pretty incredible. Ladies and gentlemen. I
don't know about you, but oh and.

Speaker 7 (04:53):
The best part is I get to work with my kids.
So it's a beautiful thing. Thank you, William. I feel
very blessed, and I know Dad is smiling from heaven
good as well. I'm sure he is well.

Speaker 4 (05:04):
Thank you for chatting with me this morning. I love you, honey.
I love you too, and Happy Mother's Day. Thank you, honey.

Speaker 5 (05:18):
Mother's Day is more than just a date on the calendar.
It's a heartfelt reminder to honor the incredible women who
shape our lives. At Kelly Financial Services, we understand the
profound impact mothers have, whether they're guiding families, nurturing dreams,
or building legacies. Their strength and love inspire us daily.

(05:41):
This Mother's Day, let's celebrate the unwavering dedication and love
that mothers bring into our lives.

Speaker 4 (05:47):
It's a time to reflect.

Speaker 5 (05:49):
Appreciate, and express our deepest gratitude. As the CEO of
Kelly Financial Services, I want to extend our heartfelt thanks
to all all the mothers out there. Your resilience and
compassion are the cornerstones of our communities. Happy Mother's Day
from all of us in Kelly Financial Services. May your

(06:11):
day be filled with love, joy, and the recognition you
so richly deserve.

Speaker 3 (06:17):
Safe Money Strategies brought to you by Kelly Financial Services
Cool eight eight eight hundred eighteen eighty one. We'll go
to Kelly Financial dot org. Come retire with us.

Speaker 8 (06:31):
Okay, my friends. If your four oh one k Lady
feels like something out of a Stephen King novel, you're
not imagining it. The markets have been all over the place,
up down sideways. It's like watching the Red Sox go
into extra innings. But listen to me now, don't panic.
The worst thing you can do is cash out and
lock in your losses. Smart investors they stay cool, they

(06:54):
stick to their plan, and they work with people they trust.
That's where Kelly Financial Services comes in. They're local, they're
fiduciary advisors, and they care about your peace of mind.
They'll help you ride out the storm so you're not
making emotional decisions with your life savings on the line.
Call them today for your free retirement consultation eight eighty

(07:18):
eight hundred eighteen eighty one eight eighty eight hundred eighteen
eighty one, or email Kelly at Kellyfinancial dot org. That's
Kelly at Kellyfinancial dot org.

Speaker 4 (07:33):
Good morning, and welcome to the show.

Speaker 9 (07:35):
You are listening to Safe Money Strategies, and my name
is Mike Tussett, Chief operating officer at Kelly Financial. Imagine
waking up on that first Monday of retirement. The alarm
doesn't ring because you've turned it off permanently. The morning
rush is replaced with a leisurely cup of coffee. There's
no commute, no meetings, no deadlines. It's the retirement dream
you've worked decades to achieve. But then a sobering thought

(07:58):
creeps in. There's no paycheck hitting your bank account this
Friday or the next herever again, how exactly will you
pay for that dream vacation you've been planning on. Could
you help your grandchildren with their college expenses without jeopardizing
your own financial foundation? Most importantly, how can you be
certain that the money you've saved will last not just
a few decades, but for the rest of your life,

(08:19):
no matter how long that might be. Today we're going
to demystify this important process and provide you with helpful
strategies to create your retirement income blueprint, one that can
help transform your savings into dependable mailbox money that arrives
month after month, regardless of what's happening.

Speaker 2 (08:39):
In the economy.

Speaker 9 (08:40):
By the end of the show, you'll understand ways to
help generate that confidence and financial stability needed to truly
enjoy the retirement you've worked so hard to achieve.

Speaker 10 (08:50):
Hello, my name is Greg Workman, one of the advisors
on the staff at Kelly Financial. If you find yourself
wondering how to convert your retirement savings into predictable income
that can weather economic storms and fund your retirement dreams,
you are not alone. At Kelly Financial Services, we focus
on helping people just like you create comprehensive income plans

(09:14):
that help provide both financial balance and a sense of
confidence and control. Call us today at eight eight eight
eight hundred eighteen eighty one to schedule your complementary retirement
income analysis. Our team will review your current situation and
develop a personalized plan that helps ensure you'll never run

(09:36):
out of money no matter how long you live again.
Our number is eight eight eight eight hundred eighteen eighty one,
or visit us online at Kellyfinancial dot org.

Speaker 9 (09:48):
Your retirement represents decades of hard work, disciplined saving, and
careful planning. Don't risk undermining all that effort by failing
to develop a strategic approach to generating income. Give us
a call today and let our team help you create
a plan that turns your retirement dreams into reality.

Speaker 10 (10:05):
When I meet with clients who are approaching retirement, I
often notice an interesting psychological barrier that they face. For decades,
they've become accustomed to receiving regular paychecks for work, reliable
income that arrives like clockwork every couple of weeks or so.
They've diligently saved in their four one ks and other

(10:27):
retirement accounts, watching their balances slowly grow over time. But now,
as retirement looms on the horizon, a fundamental question emerges.
How do I convert these account balances into the income
that I will need to support my lifestyle?

Speaker 9 (10:43):
And this isn't just a financial question, it's deeply psychological.
The reassurance of knowing exactly when and how much money
will arrive in your bank account is something most of
us take for granted during our working years. That predictability
creates confidence, allowing you to plan vacation, help family members,
renovate your home, or simply enjoy dinner out without constantly

(11:05):
worrying about money. But in retirement, without a comprehensive income plan,
that confidence can quickly evaporate.

Speaker 10 (11:12):
I encourage all of my clients to sit down with
their spouses and create a detailed list of their retirement
dreams and aspiration, I encourage them to be specific about
time frames and budgets. Do you want to take two
or more major trips annually, help grand children with college expenses,
or plan on doing some renovations to your home. Once

(11:34):
you've identified these goals, we can work backwards to help
create an income strategy that funds them reliably, allowing you
to pursue your dreams with confidence.

Speaker 9 (11:46):
For decades, many financial advisors have relied on the so
called four percent rule when helping clients plan for retirement income.
This rule, developed by financial advisor Bill Bengen in nineteen
ninety four, suggested that retirees could safely withdraw four percent
of their retirement portfolio during their first share of retirement,

(12:06):
then adjust that amount for inflation each subsequent year without
running out of money over a typical thirty year retirement.

Speaker 10 (12:13):
But here's something many advisors won't share. This rule is
fundamentally outdated in today's economic environment. Today's financial landscape is
dramatically different. The rate of interest that savings can earn
today is much lower compared to when the four percent
rule was created. The stock market is volatile, and inflation

(12:34):
remains stubbornly high. And perhaps The most significant change is
that we can expect to live longer in retirement than
we did in the past.

Speaker 9 (12:43):
All these factors mean that blindly following the four percent
rule could potentially lead to running out of money prematurely
or equally problematic, living far too frugally and not enjoying
the retirement you've worked so hard to achieve. What's needed
instead is a personalized approach that can consus are your
unique circumstances, goals, and the current economic reality.

Speaker 4 (13:04):
Greg and I need to.

Speaker 9 (13:05):
Take a quick break, but we'll be back later in
the show to discuss other ways to generate predictable retirement income.

Speaker 3 (13:12):
Stay tuned, Kelly Financial Services eight hundred eighteen eighty one.

Speaker 8 (13:19):
I believe that.

Speaker 9 (13:20):
This nation should commit it zel to achieving the goal
of landing a man on the Moon and returning him
safely to the Earth.

Speaker 11 (13:28):
Sixty five four three two one zero All engine.

Speaker 4 (13:35):
Run, look down Apollo eleven.

Speaker 2 (13:39):
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

(13:59):
your goals for your greatest adventure and achievement and call
us at eight eight eight eight hundred and eighteen eighty
one or visit us at Kellyfinancial dot org. Where do
you want to land with tank.

Speaker 3 (14:13):
Galitybavior be landed.

Speaker 2 (14:15):
We are Kelly Financial Services.

Speaker 3 (14:17):
Come retire with us the money Ran with Kelly Financial
Advisors Greg Murray and Mary Madeline Kelly.

Speaker 2 (14:26):
Good morning.

Speaker 1 (14:26):
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.

Speaker 2 (14:34):
How are you doing today?

Speaker 12 (14:35):
Good morning, Greg, I am doing great. I had a
great trip to Holland, and to circle back to our
conversation about the tulip crisis, I can now see why
tulips were such a high commodity. They were absolutely stunning.
The Koug Andhaff Botanical Gardens were such an amazing experience
and I felt so lucky to be there.

Speaker 1 (14:55):
I am happy you got to experience it. It is
definitely on my list of places to go.

Speaker 4 (14:59):
Hopefully I'll be able to to.

Speaker 2 (15:00):
Get there soon.

Speaker 12 (15:00):
I would highly recommend it. So today we're talking about
a big question. We keep hearing CDs, bonds are stocks.
What's actually worth your money in twenty twenty five.

Speaker 4 (15:11):
It's a great topic.

Speaker 1 (15:12):
A lot of investors are trying to make smart choices
and what still feels like an unpredictable market. So let's
start with CDs or certificates of deposit. So what's your
take on them? Right now?

Speaker 12 (15:21):
Honestly, CDs have become a real contender again. We're seeing
yields in the four to four and a half percent range,
which is strong for something that's FDIC insured and completely
risk free. From a principal standpoint, if you've got short
term savings goals or just want to park your cash
for a bit, they are.

Speaker 1 (15:38):
Not a bad option, agreed, But they do come with
a big caveat liquidity. Once your money is in, it's
stuck for the term unless you want to pay penalties,
and even at four and a half percent, you're still
losing purchasing power if inflation stays sticky.

Speaker 12 (15:51):
That's true, CDs are a good place to store money temporarily,
not necessarily grow it over time. That's where bonds start
to look a bit more compelling, especially now bundields.

Speaker 1 (16:02):
Are looking better than they have in years. Treasuries, corporates,
and even some unis are in the four and a
half to six percent yield range, and unlike CDs, they
offer potential price appreciation if the interest rates fall later
this year or into twenty twenty six.

Speaker 12 (16:15):
That's the key total return potential, not just the income
but also capital gains if rates drop. But you still
have to manage interest rate risk, especially with longer term bonds.
That's why strategies like bond ladders are staying in shorter
durations can be smart right now exactly.

Speaker 1 (16:31):
Some investors like to use bond ladders staggering maturities to
balance income flexibility and reinvestment opportunities.

Speaker 12 (16:38):
Now, let's shift to stocks, the asset class people love
to question when the market feels shaky, but long term
still the best chance at real growth.

Speaker 1 (16:46):
Going to agree more stocks are volatile, yes, but over
time they've outpaced both inflation and fixed income. Right now,
we're seeing more focus and quality companies with strong cash flow,
healthy balance sheets, and consistent dividends.

Speaker 12 (16:58):
And this isn't the mean stock market of twenty twenty
one anymore. Investors want resilience and fundamentals. I'm also seeing
people use this time to rebalance add to stocks, while
valuations are more reasonable in certain sectors.

Speaker 1 (17:11):
So let's put it together. If someone listening is wondering
where do I put my money in twenty twenty five,
what do we tell them?

Speaker 4 (17:17):
Think of it like this?

Speaker 12 (17:18):
CDs for short term savings or parking cash, bonds for
income and some appreciation, and stocks for long term growth.
The right mix depends on your timeline, risk tolerance, and
overall goals.

Speaker 1 (17:31):
And that's why working with the financial advisor makes a difference.
The headlines don't know your retirement date or your income needs,
but your plan should exactly.

Speaker 12 (17:40):
The worst move right now is letting indecision keep your
money on the sidelines. There are smart, flexible strategies out there,
you just need to find the right.

Speaker 1 (17:48):
One for you, whether you're leaning towards CDs, bonds or stocks. Remember,
it's not about finding the perfect investment, It's about building
a strategy that works for your life.

Speaker 4 (17:58):
That is precisely right.

Speaker 12 (17:59):
Well, that is all on the agenda for today. Thank
you for your time, Greg, and I look forward to
seeing you next week.

Speaker 1 (18:05):
You too, have great weekend.

Speaker 3 (18:08):
To get in touch with Greg Murray or Mary Madeline
Kelly or any member of the Kelly Financial Team called
eight eight eight hundred eighteen eighty one. Safe Money Strategies
with John Budris and Kelly Kelly. Call the team on
eight A eight eight hundred eighteen eighty one and.

Speaker 2 (18:31):
We are back. I'm John Budris, the co host of
Safe Money Strategies, and thanks for joining me this Mother's
Day weekend morning. Well, today's topic hits close to home,
and I mean that very literally. We're talking about housing
options in retirement. Should you own your own home? Should
you rent a home instead and sell your equity and

(18:55):
cash out? And these are tricky questions and we deal
with every day. And for many of us who are
dealing with this subject, our home is just not a
place that we just live in. It it's the place
of all of our memories, in our financial assets. It
has the two parts of our lives that we've worked

(19:18):
our whole live for that is our family, memories and
our family and that place to live. And some of
us want to stay in our own home, some of
us want to downsize and go to a tiny home
or a retirement community. Now, to help us look at
the pros and the cons, of these two models, renting

(19:43):
versus owning in retirement. Missus Kelly is going to be
joining me. Kelly Kelly, that is the CEO of Kelly Financial.
Good morning and welcome.

Speaker 5 (19:52):
Good morning, John, Happy to be here with you on
this Saturday morning.

Speaker 2 (19:56):
Well, let's start with the basics. As we often hear
from me, any retirees owning a home with a fixed
mortgage or better still, no mortgage at all, These seem
to be the pillars of financial security. Why and how
is that?

Speaker 5 (20:12):
Well, John, having a fixed mortgage payment or better yet
no mortgage payment certainly provides predictability. And in a world
where prices are rising all around us, a fixed cost
for housing means one less variable to worry about.

Speaker 2 (20:28):
Is that part of why home ownership is seen as
a hedge against inflation, That tried and true hedge against it.

Speaker 5 (20:36):
Absolutely, As rents climb, homeowners with stable payments are protected. Plus,
property values tend to rise over the long term, which
means the asset itself appreciates in value.

Speaker 2 (20:51):
We should retirees then think about paying off their mortgage
before they retire.

Speaker 5 (20:56):
Yes, if possible, it's smart to head into retirement with
that debt eliminated if not. Refinancing to a lower rate
while they're still working can be a great move.

Speaker 2 (21:09):
Well, what about property taxes or insurance costs? Even if
the mortgage is paid off, those costs don't disappear, and
they're escalating these days.

Speaker 5 (21:20):
They do not. Homeowners still need to plan for those
ongoing expenses, but they're usually far less than rent payments
may be.

Speaker 2 (21:29):
Okay, let's flip the coin. Renting. This is something that
folks just resist, but actually it has benefits too, So
can you walk us through some of those benefits?

Speaker 5 (21:40):
Of course, renting offers flexibility. For example, if you want
to relocate, or maybe downsize, or move closer to family,
or possibly try out a different city or climate, renting
can make all of that much easier.

Speaker 2 (21:59):
Well, I imagine forks rent to avoid the headaches of
home maintenance. Would that be fair to say that is true?

Speaker 5 (22:06):
They won't have to worry about an unexpected roof repair
or a broken furnace. For retirees who want a simpler life,
renting shifts those worries to the landlord.

Speaker 2 (22:17):
I've heard some folks say they feel like renting means
that they are throwing money away? Is that always a
fair analysis, not.

Speaker 4 (22:26):
Always, John.

Speaker 5 (22:27):
What they are paying for is convenience, flexibility, and in
many cases peace of mind, which can be worth every penny,
especially if cash flow is steady.

Speaker 2 (22:39):
Are there specific times when renting is a smarter choice
for retirees than owning.

Speaker 5 (22:45):
Yes, if a retiree isn't sure where they want to
settle long term, or if they're moving closer to kids
and grandkids who might move again themselves, renting keeps options open.

Speaker 2 (22:58):
Okay, Kelly, and talk about the wealth building side. How
does owning a home help retirees build and keep equity?

Speaker 5 (23:07):
Every mortgage payment chips away At the principle, this means
the ownership value grows over time. Also, in many areas,
property values have appreciated significantly over the years.

Speaker 2 (23:21):
So by retirement, homeowners should be sitting on a significant asset.

Speaker 5 (23:27):
Exactly, and that equity can be tapped later through downsizing, selling,
or even other creative solutions such as reverse mortgages.

Speaker 2 (23:37):
Would you say that home ownership acts almost like a
forced savings.

Speaker 5 (23:42):
Account in a way it does unlike a four to
oh one K where it can be tempting to skip contributions.
Mortgage payments are automatic and steadily build wealth.

Speaker 2 (23:54):
So even if retirees don't plan to sell that home,
equity is a safety net.

Speaker 5 (24:00):
Yes, it can fund healthcare emergencies or even legacy goals
for their heirs.

Speaker 2 (24:06):
Kelly, I read on a real estate website iproperty management.
These things are on my mind these days that fewer
retirees today are homeowners compared to just twenty years ago.
Why do you think that is?

Speaker 5 (24:21):
Well, John, the cost of maintaining a home has skyrocketed,
as we all know, and many retirees value mobility more
than ever before.

Speaker 4 (24:31):
They want freedom, not roof repairs.

Speaker 2 (24:34):
Are you seeing retirees rents even in their sixties and seventies?

Speaker 5 (24:38):
Absolutely Renting no longer carries the stigma is often seen
as a smart lifestyle choice.

Speaker 2 (24:45):
You think this trend will continue?

Speaker 5 (24:47):
Honestly, I think so, John, especially because of high property taxes,
maintenance cost, and the desire for flexibility.

Speaker 2 (24:55):
Okay, Kelly, how does someone actually make the rent versus
own decision? There's so many moving parts. This is where
a financial advisor really becomes essential, John.

Speaker 5 (25:08):
This is exactly where a good advisor becomes not just helpful,
but critical. Housing is one of the biggest expenses in retirement,
and unlike a grocery bill, it cannot be easily trimmed.
At Kelly Financial, our advisors help clients take a broader
view when it comes to making this type of move.

(25:31):
We consider income streams, savings, taxes, healthcare needs, family goals,
and how their current or future housing situation aligns with
all of these factors.

Speaker 2 (25:45):
So it's not just about running the numbers on a
mortgage or figuring out red No.

Speaker 4 (25:51):
It's about strategy.

Speaker 5 (25:52):
Having a trusted advisor walk through this decision can give
clarity on all the long term financial implications.

Speaker 2 (26:01):
Would you recommend any other resources? Our dear listeners can
explore if they have questions.

Speaker 5 (26:07):
Having a retirement income strategy in place should be step
number one, but there are many things to consider when
developing a housing plan. Our free investor guide your Retirement
income Planning Checklist highlights topics like a housing plan to
explore when preparing for the future.

Speaker 2 (26:27):
As always, Kelly, very useful information and insight, and thank
you for that. To get the guide and make a
complimentary appointment with the Kelly Financial Advisor, called eight eight
eight eight hundred eighteen eighty one or email Kelly at
Kellyfinancial dot Org. That's all the time we have for
this segment, and thanks so much for joining me. And

(26:49):
when we return, we'll look at common retiree housing mistakes,
mortgage management and alternative housing options. You're listening to Safe
Money Strategy, the radio show heard right here on WRKO
and streaming on the iHeart app. We're in our twentieth
year of broadcasting and boy, we really thank you for that.

(27:10):
So stay tuned and we shall be back in a flash.

Speaker 3 (27:16):
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 (27:26):
Ready to enjoy your golden years without worry. At Kelly Financial,
we know retirement planning can be overwhelming. With more than
twenty one years of experience, our friendly team of advisors
makes it easy and stress free. Trust us to help
you create a secure and enjoyable future. For a free
initial retirement consultation, called eight eight eight eight hundred eighteen

(27:49):
eighty one or email Kelly at Kelly Financial dot org.
We're Kelly Financial. Come retire with.

Speaker 3 (27:55):
Us Safe Money Strategies with John Fodris and Kelly Cally.
Call the team on eight eight hundred to eighteen eighty one.

Speaker 2 (28:07):
Indeed, and we're back. I'm John Budris, the co host
of Safe Money Strategies, and thanks for joining me this morning.
Housing in retirement isn't just about where you live. Carefully
planning any move is crucial because it can significantly impact
your financial strategy and your future and your health. Even so,

(28:29):
whether you're already retired or you're planning ahead, making that
right call on home ownership or renting can set the
tone for decades to come. So let's bring back Kelly Kelly,
CEO of Kelly Financial. She'll give us some tips for
transitioning wisely and avoiding some financial roadblocks along the way. Kelly,

(28:52):
good morning, and welcome back again. I hope you have
a big cup of coffee.

Speaker 5 (28:56):
Good morning, John, happy to be back with you on
this Saturday morning.

Speaker 2 (29:01):
Kelly, we're talking about housing options for retirees. We've already
set the stage comparing ownership versus renting a home. Now
we want to talk about housing mistakes, to avoid, alternative
housing options and how to fun to move when the
time comes.

Speaker 4 (29:18):
Sounds great, John, Let's jump into it.

Speaker 2 (29:21):
Kelly. I'm sure you've seen this firstthand but you've witnessed
a lot of housing mistakes that retirees make, So tell
us a little bit about the biggest ones.

Speaker 5 (29:32):
I'd have to say the first big mistake is underestimating
cost People think if they downsize, everything will get cheaper.

Speaker 4 (29:41):
But let's be honest, moving is not cheap, never will be.

Speaker 5 (29:46):
There are real trophees closing costs, moving expenses, new furniture.
Even if you say there's not going to be any
new furniture, there usually is.

Speaker 2 (29:57):
It all adds up fast so soon. Just because you're
buying a smaller house that is automatically a better deal
for you.

Speaker 5 (30:05):
Exactly, you have to run the real numbers, not just
the purchase price. Consider there will be ongoing property taxes,
of course, insurance and possibly HOA fees.

Speaker 2 (30:17):
That's interesting. What's another mistake?

Speaker 5 (30:19):
Well, another mistake is over committing to a new mortgage.
Some retirees, believe it or not, actually take on new
fifteen or thirty year mortgages late in life without thinking
through the long term implications. If their income changes, say
a spouse passes away, that mortgage can become a serious burden.

Speaker 2 (30:40):
Wow, So you're saying if they don't own their own
home outright, they could be setting themselves up for big trouble.

Speaker 4 (30:48):
Correct.

Speaker 5 (30:49):
Ideally, their housing situation should lower their financial pressure in retirement,
not add to it.

Speaker 2 (30:56):
What about renters? What about the mistakes there?

Speaker 4 (31:00):
Oh?

Speaker 5 (31:00):
Yes, not understanding least terms is a big one. Some
communities raise rent sharply after the first year. Others have
heavy restrictions that can affect lifestyle, such as guest rules,
pet policies, or even restrictions on moving out early. It's
important to read the fine print good points.

Speaker 2 (31:23):
I bet emotions really get in the way too.

Speaker 4 (31:26):
They can.

Speaker 5 (31:27):
We know that making emotional decisions such as clinging to
a home that's too big, too costly, or too hard
to maintain because it holds memories can hurt retirees financially.
Sentiment is important, but it can't outweigh good financial planning.

Speaker 2 (31:46):
Any other mistakes that we should be mentioning this morning.

Speaker 5 (31:49):
Waiting too long to plan is a big one. Housing
transitions take time. If folks wait until a help issue
forces a move, they'll have to make decisions under pressure.
This probably won't get them the best deal or situation.

Speaker 2 (32:06):
So what would you say is the bottom line here?

Speaker 5 (32:09):
Kelly, start early, plan while there are still options, not
when they get boxed in. It's essential to consult with
a financial advisor and family to get ahead of the game.

Speaker 2 (32:22):
So the real takeaway is that planning equals freedom. That's right, John,
that's great information. Okay, switching gears a bit. Mortgages. What's
your advice for folks approaching retirement who still have a mortgage?
Should they rush to pay it off?

Speaker 4 (32:38):
It depends, John.

Speaker 5 (32:40):
If the mortgage is small and rates are low, it
might make sense to keep it and invest extra cash elsewhere.
But if the balance is large and the payment is
a strain, paying it down before retirement is ideal.

Speaker 2 (32:56):
What about refinancing before they leave the workforce?

Speaker 5 (33:00):
Absolutely is much easier to qualify for favorable refinance terms
while you still have regular employment income.

Speaker 2 (33:08):
How far in advance should retirees start planning around this?

Speaker 5 (33:13):
Ideally five to ten years before retirement. Mortgage strategy should
be part of the overall retirement income plan.

Speaker 2 (33:22):
And what about unexpected repairs? You know we should expect them.
That should be reflected in planning too.

Speaker 5 (33:30):
Yes, having a home maintenance reserve fund is very smart
since in retirement, every surprise bill feels bigger.

Speaker 2 (33:39):
Okay, So Kelly, let's talk about reverse mortgages. They get
a lot of buzz. You know, you see them in
between the news shows and the commercials all the time,
and this is probably good and bad. So what's the
real story.

Speaker 5 (33:52):
Through a reverse mortgage, the homeowner can receive monthly income
and accumulate cash reserves. When used carefully, reverse mortgages can
provide cash free tax flow for retirees without forcing them
to sell their homes.

Speaker 2 (34:10):
But there are risks, right.

Speaker 5 (34:12):
Yes, fees can be high and homeowners still must pay
property taxes, insurance, and maintain the home. Homeowners should watch
out for compound interest, which makes it more like a
credit card than a regular mortgage. It's important for retirees
not to miss this or they could lose their house.

Speaker 2 (34:34):
So when might a reverse mortgage make sense?

Speaker 5 (34:38):
If someone plans to stay in their home long term
and needs supplemental income, it can be a viable option.
They just need to understand the terms fully.

Speaker 2 (34:49):
It's not a quick decision, is it.

Speaker 5 (34:51):
Absolutely not. People should consult a trusted financial advisor before
signing anything.

Speaker 2 (34:58):
Let's talk altern datives then, retirement communities, living with family.
What do retirees need to consider there.

Speaker 5 (35:06):
Retirement communities can offer social engagement, amenities and safety.

Speaker 4 (35:12):
However, they come with cost.

Speaker 5 (35:14):
Including monthly fees, buy ins and ongoing expenses and living
with family again another wonderful idea. As long as everyone's
expectations are clear. Is important to set boundaries, to have
financial discussions early, and to make sure is a partnership

(35:34):
and not a burden.

Speaker 2 (35:36):
So communication is key.

Speaker 5 (35:38):
Yes, these arrangements work best when built on transparency and
mutual respect.

Speaker 2 (35:45):
All right, Kelly. Before we wrap up, let's talk tools.
If a retiree is considering a big housing change, are
there financial vehicles that can help them manage that transition.

Speaker 5 (35:58):
There are several options retirees can consider, such as home
sale proceeds, their required minimum distributions rmds from retirement accounts,
or even fixed index annuities that provide a steady paycheck.
These are all options to be discussed with their financial advisor,

(36:21):
who can help position them in safer investments or other
retirement income vehicles.

Speaker 2 (36:28):
Sounds like the messages to make a plan and don't
go it alone.

Speaker 4 (36:32):
That's right. At Kelly Financial.

Speaker 5 (36:35):
Our advisors are fiduciaries who can help map out their
cash flow, asset protection and risk management strategy before making
any housing decisions.

Speaker 2 (36:47):
Do you have any other resources for our listeners who
may have questions.

Speaker 5 (36:51):
We do our free investor Guide. Your Retirement Income Planning
Checklist is just that, a checklist of ten things impacting
their retirement income strategy that they should not forget to
plan for.

Speaker 2 (37:06):
As always, Kelly, you and your team are always there
and ready to help, so thanks again for coming on
the show, especially today. To get the guide and to
make a complimentary appointment with the Kelly Financial Advisor, call
eight eight eight eight hundred eighteen eighty one or email
Kelly at Kellyfinancial dot org. That's all the time we

(37:27):
have for now. Thanks so much for joining me and
you're listening to Save Money Strategies the radio show heard
right here on WRKO and streaming on the iHeart app.
We're in our twentieth year broadcasting, so thank you so
much for that. Stay tuned and we will be back
in a New York minute.

Speaker 5 (37:47):
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 of 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

(38:09):
eight hundred and eighteen eighty one or email Kelly at
kellifinancial dot org.

Speaker 4 (38:14):
We're Kelly Financial. Come retire with us.

Speaker 9 (38:18):
Welcome back. You're listening to safe money strategies.

Speaker 4 (38:20):
My name is Mike Duscent.

Speaker 9 (38:22):
Joining me in the studio this morning is investment advisor
Greg Workman. Before the break, Greg and I discussed some
of the flaws with the four percent rule. Greg what
other options can retirees explore instead of relying on the
old four percent rule?

Speaker 10 (38:38):
Modern financial planning tools allow financial professionals to create dynamic
models that account for various withdrawal rates, market scenarios, inflation projections,
and longevity estimates. Rather than relying on a one size
fits all rule, we can develop personalized withdrawal strategies that

(38:59):
adapt to changing market conditions or your evolving needs throughout retirement.
The key is having access to planning tools and financial
professionals who know how to use them effectively to create
personalized strategies rather than relying on outdated rules of thumb.

Speaker 9 (39:17):
One of the most valuable aspects of modern retirement income
planning is the ability to test your plan against various
economic scenarios. This goes beyond simply projecting average returns and
inflation rates. Instead, it involves asking important what if questions
to help ensure your income strategy remains resilient even when

(39:39):
faced with significant challenges. What would happen to your income
plan if the stock market experienced a severe downturn similar
to two thousand and eight, the onset of COVID pandemic,
or the more recent tariff related market plunge just as
you begin retirement. What if a prolonged recession reduced investment
returns for several concent executive years. And what if inflation

(40:02):
spiked to levels we haven't seen in decades.

Speaker 2 (40:05):
What if you've.

Speaker 9 (40:05):
Faced unexpected healthcare costs or needed long term care, and
what if tax rates increased.

Speaker 10 (40:11):
These aren't pleasant scenarios to contemplate, but addressing them before
they occur allows you to develop contingency strategies that could
help protect your financial security. Without this type of scenario testing,
many retirees find themselves making difficult decisions under pressure when
these challenges arise potentially selling assets at inopportune times or

(40:37):
dramatically reducing their lifestyle.

Speaker 9 (40:39):
When developing a retirement income plan, one of the most
significant challenges can be helping ensure you have dependable income
that lasts for your entire lifetime, regardless of how long
you live. This is where annuities can play a valuable
role in your overall strategy. We recently held an educational
workshop at our office focused on annuity. The workshop was

(41:01):
titled Annuities, The Good, the Bad, and the Ugly.

Speaker 10 (41:04):
Annuities are financial products offered by insurance companies designed specifically
to provide reliable income streams, often for life. Unlike investment
accounts that can go up or down with market conditions,
certain types of annuities can offer predictable, dependable income that

(41:25):
continues regardless of market performance or how long you live.
This unique characteristic addresses one of retiree's greatest fears, the
fear of outliving their money.

Speaker 9 (41:38):
There are several types of annuities, each with different features
and benefits. Fixed annuities provide a specific interest rate and
predictable income payments. Variable annuities offer potential for higher returns
based on the performance of the underlying investment options, but
with less income certainty. Indexed annuities fall somewhere in between,

(41:59):
providing some part anticipation in market gains while offering downside protection.
Immediate annuities begin paying income right away, while deferred annuities
allow your money to grow before payments begin at a
future date.

Speaker 10 (42:12):
For married couples, many annuities offer joint life payout options,
helping ensure that income continues as long as either spouse
remains alive. This feature can be particularly valuable for addressing
the financial stability of a surviving spouse. It's important to
understand that annuities are not one size fits all solutions,

(42:34):
nor are they appropriate for every household. They typically involve fees,
surrender charges for early withdrawals, and once established, may offer
limited flexibility. Additionally, many annuities are complex products with various
features and riders that can be difficult to evaluate without

(42:54):
the proper professional guidance. The guarantees offered by annuities are
backed by the financial strength and claims paying ability of
the issuing insurance company, making that insurance stability an important consideration.

Speaker 9 (43:09):
One effective approach to incorporating annuities into your retirement strategy
is what many financial advisors often call the income floor
or essential expenses approach. This strategy involves identifying your essential
monthly expenses, which would be housing, utilities, food, healthcare, insurance,
and other necessities, in helping ensure these costs are covered

(43:32):
by dependable income sources. By combining social security benefits, pension
income if available, and annuity payments, you can create a
reliable income floor that covers these essential expenses regardless of
market conditions.

Speaker 10 (43:47):
With their essential expenses secured, the remainder of their retirement
assets can be invested in more aggressive vehicles like stock
based mutual funds or exchange traded funds that offer far
greater growth potential to address inflation and fund discretionary expenses

(44:08):
like travel, hobbies, and gifts to family. This balanced approach
helps provide both stability and opportunity. The comfort of knowing
essential needs will be met combined with the opportunity for
continued growth to enhance lifestyle and address rising costs over time.

Speaker 9 (44:28):
This essential expenses strategy offers psychological benefits as well. Many
retirees find it easier to stomach market volatility when they
know their basic living needs are provided for regardless of
market performance. This sense of reassurance often allows for more
rational decision making during market downturns, preventing panic selling and
other emotional responses that can damage long term financial health.

Speaker 10 (44:52):
While the guaranteed income aspect of annuities is attractive, remember
that this guarantee is only as strong as the company
that stands behind it. Unlike bank products covered by FDIC, insurance,
annuity guarantees are backed by the issuing insurance company in
some cases by state guarantee associations up to certain limits.

(45:16):
This makes the financial strength and stability of the insurance
company a vital consideration when evaluating annuity options.

Speaker 9 (45:24):
For those considering annuities, it's essential to work with the
knowledgeable financial advisor who can help you understand all aspects
of these products, from fees and surrender periods to tax
implications and income options. An advisor can also help you
determine what portion of your retirement assets might be appropriate
to allocate to annuities based on your specific circumstances, and

(45:47):
which type of annuity might best suit your needs.

Speaker 10 (45:50):
Remember that annuities are just one tool and a comprehensive
retirement income strategy. The ideal approach typically involves a thought
full blend of income sources, including social security pensions if available,
annuities for guaranteed income, and traditional investment portfolios for higher

(46:12):
rates of growth potential and flexibility. This diversified approach provides
both stability and opportunity, helping you to meet essential needs
while maintaining growth potential to address inflation and fund the
lifestyle elements that make retirement rewarding.

Speaker 9 (46:30):
As we wrap up today's show, I hope you've gained
valuable insights into ways to transform your retirement savings into reliable,
sustainable income. The journey from receiving regular paychecks during your
working years to generating income from your accumulated assets represents
one of the most significant financial transitions you'll ever make.
Without proper planning, the shift can create anxiety and uncertainty,

(46:53):
potentially preventing you from fully enjoying the retirement you've worked
so hard to achieve. But with a comprehensive ver retirement
income blueprint, you can approach this new chapter with confidence,
knowing exactly how you'll fund your lifestyle and pursue your
dreams for decades to come.

Speaker 10 (47:09):
If you're ready to create your personalized retirement income plan.

Speaker 2 (47:13):
The team at Kelly Financial is here to help.

Speaker 10 (47:16):
Our comprehensive approach goes beyond generic rules of thumb to
develop strategies custom tailored specifically to your goals, appetite for risk.

Speaker 2 (47:27):
And current economic realities.

Speaker 10 (47:30):
Whether you're already retired or planning for that transition in
the years to come, there's no better time to help
ensure your income strategy is optimized for both stability and enjoyment.

Speaker 2 (47:43):
Call our team.

Speaker 10 (47:44):
Today at eight eight eight eight hundred eighteen eighty one
to schedule your complementary retirement income analysis. Our team will
review your current situation, identify opportunities and potential vulnerabilities, and
help you create you had a plan that helps ensure
financial confidence and control throughout retirement. Call now and take

(48:07):
that first step toward retirement income confidence. With that. My
name is Greg Workman.

Speaker 4 (48:13):
And I'm Mike.

Speaker 9 (48:13):
You said join us next week for more safe money strategies.

Speaker 8 (48:20):
Joining us now, as she always does at this time,
the CEO, co founder, president of Kelly Financial Services, and yes,
that is her wonderful name, Kelly.

Speaker 4 (48:34):
Kelly Kelly, how are you good morning?

Speaker 2 (48:40):
Jeff?

Speaker 13 (48:40):
I am good if you are a business owner thinking
about retirement, here is something important. Preserving your wealth is
not just about growing it. It's about protecting it, and
that takes more than guess work.

Speaker 4 (48:54):
It takes trusted guidance.

Speaker 13 (48:56):
And that is where Kelly Financial comes in, specialized and
helping business owners like you protect what you have built.
Our advisors help with critical strategies, minimizing taxes, managing risk,
planning for succession, and creating a solid retirement income plan.
We want your business to work just as hard for

(49:19):
you in retirement as you did building it. You can
request our free guide Six Ways to a Happy Retirement
with tips to help you retire with more confidence and
peace of mind. To get the guide or schedule a
complementary consultation, call us or email Kelly at Kellyfinancial dot org,

(49:40):
or go to our website for the radio rewinds. Jeff,
have a wonderful weekend, My best, Grace and the kiddos.

Speaker 8 (49:47):
Thank you so much, Kelly, All the best to you
and everyone at Kelly Financial. Okay for a free consultation
called eight eight eight eight hundred eighteen eighty one eight
eight eight eight hundred eighteen eighty one, or if you prefer,
you can actually email Kelly yourself Kelly at Kelly Financial

(50:08):
dot org. That's Kelly at Kelly financial dot org.

Speaker 3 (50:16):
Safe Money Strategies eight eight eight hundred one eight eight one.

Speaker 11 (50:24):
You know, marriage is a great thing. I see people
who come to visit with us in our offices in
brain Tree, Burlington, people visited with us in Palm Beach.
And the joy of seeing people in a beautiful marriage
with a family surrounding them, it's amazing. It's an amazing gift.
It's an amazing enrichment in life. I remember coming in
my back door once in Burlington. I have a private

(50:46):
entrance at the back of my office, which I'm very
fortunate to have, and there was a couple sitting on
a little bench there and they were well into their eighties.
He was feeding his wife a muffin, a blueberry muffin,
bit by bit, and she was eating it almost like
a little bird, and they would talking, they were giggling,
and I walked by them. I was on my way,
of course, to an important meeting as usual. Kelly right,
and I just turned my head. I said, wow, first date,

(51:08):
and he looked at me. He said, well, we're just
getting to know each other. He said, and he said,
we're learning every day a little bit more. Isn't that
beautiful ladies and gentlemen. Isn't that amazing? And they get up,
they were holding hands. They walked in and they were
actually coming to visit with us. So it was like
a double surprise, come to find out. So what's the
beauty in having someone in your life you love? Well,

(51:29):
it's an amazing thing for me. You know, my wife,
Kelly is a beautiful woman in many ways. I mean,
she was a stunningly beautiful woman on the night I
met her, took my breath away. But I think I
also saw something inside of her. I saw something within
her spirit. I instantly recognized it, and I think that's
what attracted Kelly to me. I think that's what made

(51:50):
her think there might be something different in this guy
and might want to see him again, because I never
thought she would. And as we grew closer and through
our married years, it's been true what a beautiful person
my wife is in all the inobvious ways, her imagination,
her determination, her support of me when we had very little,

(52:10):
not very many complaints, her ability, her spirit. These are
things that sort of a blessing in my life, and
I hope all of you have had a chance to
experience something even remotely like that, because it's very beautiful.
And Kelly is a stalwart. She's the strongest woman, the
strongest person I've ever met, and she navigates through life
and does thousands of things every week to support our

(52:34):
business venture, our family, our future. And I'm sort of
the imagineer. I'm like the imagining guy, and she's the
person on the ground making sure that my teather doesn't
break and I go sailing off into the universe somewhere
with the next big idea. Well, my ideas sometimes take
fruit and sometimes they take hold, and we've been very

(52:55):
blessed with that. But I've had a lot of freedom.
But the most I can say, well, the most important
thing I can tell you is how blessed I've been
in my life to have someone in my life like
my wife Kelly, and how much I admire her, not
just for always being there, but for understanding a lot
of complex things that go on when you're building a
company or you're building out a vision that was sort

(53:18):
of written on a piece of paper. And Kelly's always
been there for me, and it's tough it's tough sometimes,
and I learned to love through Kelly. With a family
of ten people and everybody in a hurry and no
one really able to share much time with each other.
With all the things that went on in my family,
I was probably ill fit for marriage or even to
be a partner because I didn't know how to be

(53:39):
with somebody. I didn't know how to spend time with
someone because we were always on the go, always doing something,
and just enjoying being with someone was something that I
did not know how to do. And over the years
I've learned to do that with Kelly, my wife. I
hope someday you have that feeling or have had it
many of you. What's very easy for you to do
generally is very difficult for me. It's very difficult for

(54:01):
you to do. As you listen to me, it's very
simple to me. So with my boldness, I've been able
to make a path, make my way in life. But
there's a limitation because I've just learned that being bold
what was the way to do everything, and it's not.
It's hard to be understanding when you're always bold, so
I had to temper that. I was very fortunate to

(54:22):
meet Kelly, and I was very fortunate that she became
interested in me. I always wondered, am I going to
live before I die? Am I going to die before
I live? That was what I wondered, because I never
thought I lived. I always thought I was just getting started.
I'm getting started. I'm getting started. And then when I
met my wife, Kelly, guess what I found out? I'm
living and I'm okay with doing it. And it's okay

(54:45):
because I think when you admit that you're living, guess
what else you have to admit? You have to stop
racing and you have to say I'm living. But I'm
also on my way to dying. So we like to
ignore that second part, don't we? I do. So I've
been very lucky. I you know, I love Kelly Kelly.
For you're listening, I love you from the bottom of
my heart. Anyway possible, I always will, I always have,

(55:07):
and I do right now and we'll be right back.

Speaker 3 (55:14):
Call Kelly Financial Services eight eight eight eight hundred, eighteen
eighty one.

Speaker 4 (55:19):
I'm Kelly Kelly from Kelly Financial.

Speaker 5 (55:22):
Whether you're in your sixties, seventies, or eighties, financial advice
is important when it comes to preserving your nest egg.
We have a free investor guide called designing your Fiscal
House to Weather the Elements, which highlights the steps needed
to build a balanced portfolio. For the guide, call eight
eight eight eight hundred eighteen eighty one or email Kelly

(55:44):
at Kellyfinancial dot org. We're Kelly Financial. Come retire with
us senior.

Speaker 3 (55:50):
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

(56:20):
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.

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

Speaker 14 (56:59):
All opinions rest by the host, his guests or employees
of Kelly Financial Services are solely their own and do
not reflect the opinions of Kelly Financial Services. Information has
been obtained from sources deemed to be reliable, but their
accuracy and completeness cannot be guaranteed. The information provided as
general in nature and 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

(57:20):
the Safe Money Strategies Show and providing testimonials of his
personal experience as a client of Kelly Financial Services, Kelley
has waif the Host's advisory f BEE in full. Because
of this arrangement, where the host receives compensation in the
form of a fee waiver.

Speaker 2 (57:30):
The host has an

Speaker 14 (57:30):
Incentive to recommend Kelly Financial Services, resulting in a material
conflict of interest.