October 19, 2025 • 58 mins
On today’s program, we speak with Sarah Hawkins of Hines Development about the new South Station Tower. Don Seiffert managing to the Boston Business Journal shares this weeks business headlines. Colin Young of the State House News Service talks about proposition 2 1/2 and the struggle facing cities and towns. Mike Marshall of Marshall Wealth Management explains year-end retirement planning. And finally, Erin Calvo Bacci tells us about CB Stuffer chocolate and their peanut butter cups this month of October.
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Speaker 1 (00:00):
This is the New England Business Report with Joe Shortsleeve
and Kim Carrigan, a weekly roundup and discussion of the
top business news impacting our New England economy.
Speaker 2 (00:09):
And good morning and welcome to the New England Business Support.
On this Sunday morning, October nineteenth, Joe Shortsleeve with you,
and yes it is just Joe short lived Kim Kerrigan
enjoying how much needed well weekend off, day off and
what a beautiful day to be off. Right, we are
marching through October.
Speaker 3 (00:26):
You know.
Speaker 2 (00:27):
The first thing we're going to talk about today, it
has to do with this new South Station tower. I
mean maybe you've seen it. It's stunning. It's fifty one
stories tall. It's been decades in the making. They were
supposed to start building it in two thousand and eight,
but they get one thing after another. When did they
start twenty twenty And what happened in twenty twenty, Well,
(00:48):
COVID hit that's right, among other things, they had a
repoint all thirteen train lines, so they've been busy. Sarah
Hawkins is the managing director of heinz Us East Market.
She's going to be along to talk to us about
this stunning development. It's fifty one stories, like I said,
and it's over Boston's most connected and active transit hub.
The upper sixteen floors of the development are Ritz Carlton residences,
(01:14):
So that's pretty nice, right. So anyway, this Hines is
a global company out of Texas, and it's spelled Hnes,
and they own and operate some ninety two billion dollars
in assets across all kinds of property types. Right, No
relation to the Hines I know here in Boston, John Hines,
(01:35):
John Hines. Of course, that Hines is hyn E. S.
And why do I mention that? Just because I can.
John Hines is the CEO of the managing partner of
the managing partner of Boston Global Investors. But his dad
was Jack Hines. I worked with Jack Hines during the
Blizzard of seventy eight at Channel five. I worked with
Jack Hines at Channel fifty six starting in nineteen eighty
four when I brought my broadcasting career to Boston. So
(01:56):
why do I mention that? Oh, I don't know, Jack.
Jack was always a favorite of mine. Okay, all right,
So on the program today, Don Seifert is going to
be along. He's a managing editor of the Boston Business Journal.
Don also happens to live in Salem, the city of Salem.
And what's Salem like during the month of October. Well,
they have some one point two million people coming through
(02:18):
the city. Some Salem residents can be spotted wearing T shirts.
Salem is not a theme park. I guess you just
basically asking people to be respectful of the surroundings and
the fact that people live and work there and go
to school there and so on and so forth. But
there's an effort that's been going along and you know,
really been gathering some attention about helping out the Salem
food pantry. And it's a group called the October Club
(02:41):
and they're donating partial sales to that. Anyway, Don Seifert's
going to tell us about that and as well as
some of the other business headlines and terming this one
a viral bagel pop up opening a brick and mortar
shop downtown Boston office building is headed to the auction.
I'm sure we'd like to know which one that is, right.
(03:02):
And then Bristol Myers Squibbs squib buying Cambridge Biotech for
one point five billion dollars, so a lot of business
headlines to sort through with Don Seifert. Then we're going
to be talking with Mike Marshall of Marshall Wealth Management,
talk a little bit more about this silver tsunami. The
(03:23):
statistics are really staggering. Ten thousand people every day are
turning sixty five years old in this country and they're
all heading to retirement anyway. So Mike's going to talk
to us about retirement planning, but really in the context
of year end planning, if you're thinking about going into
twenty twenty six retired, what do you need to know?
(03:44):
And then Colin Young at the State House News Service,
he is the managing editor up there on Beacon Hill,
a great guy, very reliable, very smart, and he's going
to talk to us about Proposition two and a half.
A lot of folks know what Proposition two and a
half is, right, It limits the amount that municipality has
can tax their residents. That's fine and dandy. For many years,
what has happened is that local aid in the state
level has been slowing way down to these cities and
(04:06):
towns and they can't tax more. So they're screaming, okay,
And Colin Young's gonna tell us where that's going to lead.
He's also going to talk about an effort up there
in Beacon Hill higher offshore corporate taxes that'll get the
business community's attention.
Speaker 4 (04:23):
Ry.
Speaker 2 (04:23):
Yeah, I guess it's a loophole that's existed for years,
and they're going to trying to close it up there
and Beacon Hill. And then since it's October, and since
I love peanut butter cups, right, we're going to talk
with CB Stuffer Chocolate and we're going to talk with
the owner, Aaron caalvo Baki. And what are they Well,
they're basically an online chocolate here, I guess, and they
sell these peanut butter cups and they sell chocolate peanut
(04:46):
butter slices. Can you think of anything better than that?
I mean, anyway, they started out they were brick and mortar,
and then they said, forget that, we're just going to
go completely online. And so that's what they are. But
of course you had guess that October is one of
the her busiest month. And we'll be talking with Aaron
kaovo Baki about well all the peanut butter cups. All right, Well,
(05:07):
without further ado, let's talk more about what everybody's talking
about that new South Station tower, fifty one stories atall.
And nobody knows more about this project than our next guest,
and that's Sarah Hawkins. And she, of course is the
managing director and the head of Hines US East Market.
She's responsible for all residential, commercial and mixed use acquisitions
(05:28):
and developments in the US East, which includes twenty billion
dollars in assets under management and offices in New York, Boston,
d C. And Philadelphia. And Sarah joins us now, Sarah,
welcome to the program. Well, this South Station Tower is
the talk of the town. It certainly was a long
time coming. Talk to us about that.
Speaker 5 (05:48):
Thank you so much.
Speaker 3 (05:49):
We are thrilled to have it open finally. This has
been decades in the making and we are incredibly proud
of the thousands of people that have contributed to bringing
this project to life and we can finally welcome people
in its doors.
Speaker 2 (06:05):
Okay, so what's going on right now with the new
South Station Tower.
Speaker 3 (06:10):
So right now we have officially received our TCO, which
means that we can welcome people inside. So we are
already underway with tenants building out their office space. We
will be very soon welcoming new residents to come move
into their homes. And we are underway with a restaurant
(06:31):
which we hope to be able to announce shortly. And
if you've been through South Station, which I'm sure many
of your listeners have, you see the structural elements, the
new bus terminal, and that is all now open and
quite stunning actually the improvements to South Station itself.
Speaker 2 (06:50):
Yeah, no question about that. Now. The Boston Globe did
an article recently Catherine Carlock, a reporter, decades in the make,
and the South Station Tower is ready to move in
fifty one story office in Condo Skycraper opening soon, proving
test for both office demand and high end housing. Now,
let's talk a little bit about some of this article
talks about some of the hurdles you went through. You
(07:11):
were supposed to begin construction in two thousand and eight,
but right what happened there?
Speaker 3 (07:17):
Sarah, So, we have actually been working on this project
for twenty seven years, and we have been through many
market cycles and many many challenges, both through the financial crisis,
through the pandemic, clearly through different market cycles, and also
all of the work that had to come together to
(07:37):
bring the many different agencies, regulatory arms, partners, etc. To
bear on this. You know, it's really a massive public
private partnership. But in December twenty nineteen, that was the
big moment where we had completed all of the approvals,
and that includes both federal approvals because Amtrak runs through
(07:58):
the station, that include City, State, MBTA. We had our
equity capital, debt capital, We had our construction contract, and
that was all executed in December twenty nineteen, So after
what had already been a couple decades, we were finally
ready to move forward and absolutely thrilled to do so.
And then, of course, three months later, the pandemic hit
(08:21):
and construction was shut down. But I cannot say enough
good things about our team, the thousands of construction workers,
our partner at Suffolk Construction, the resilience and the perseverance
that we worked through what was not only the challenges
of the pandemic, but we kept the trains running through
(08:42):
the entire construction of the project. So those first two years,
the teams were working through the night to deliver what
became the podium and the new bus terminal for the
City of Boston. To get that constructed before we even
started on the tower.
Speaker 2 (09:00):
About who who's going to be working there?
Speaker 1 (09:01):
Who are you?
Speaker 2 (09:02):
Who are some of your tenants that you can tell
us about?
Speaker 5 (09:04):
Sure?
Speaker 3 (09:05):
So the first tenants that we announced were Jones Day,
the global law firm, FM Global Insurance Company, and Citadel,
the large financial manager. So thrilled to have those three announced.
We are underway in some very exciting discussions which I
cannot speak to or announce yet.
Speaker 2 (09:23):
But go ahead, go ahead, Sarah. We won't tell anybody.
Speaker 3 (09:28):
Well, your listeners can do their own googling about rumors
in the market, but we will wait until we are
ready to announce. But I am fairly certain we will
have some exciting announcements over the coming months.
Speaker 2 (09:40):
Okay, explain to us. The other part of this is
the Rich Carlton part of this piece of the puzzle.
Speaker 3 (09:47):
Yes, yeah, So we have partnered with the Riz Carlton
to manage our one hundred and sixty six residential condominiums
in the top sixteenth floors of the building, so the
absolute best views in the city, the best amenities. These
homes are just stunningly beautiful and Riz Carlton really just
(10:09):
brings a standard of residential management of luxury to the
experience for our new home buyers.
Speaker 2 (10:18):
Talking with us Sarah Hawkins, she's the managing director and
the head of Hines a US East market. I'm talking
about the new South Station tower there. Sarah, what's your
assessment of downtown Boston and the health of the office
market industry.
Speaker 3 (10:32):
Well, it has been a tough few years for the
office market in general, but what we have seen over
the last twelve months is a real resurgence in both
a return to the office and also tenant demand. You know,
many of our tenants that were in discussions with have
realized they actually over corrected during the pandemic. You know,
there was a lot of a lot of panic about
(10:55):
the return to the office work from home, and I
think it's been rarely clear over the last couple of
years that that being in person is so critical not
just for productivity, but also for culture, for wellness and
people's mental state. Having that in person connection is so
so important, and we're seeing that from our tenants. So
(11:20):
while the last few years have been rather challenging for
the office market, the last twelve months have exceeded expectations
in terms of both demand for office space and the
return to the office. So we feel very encouraged about
the direction of things, and it really benefits projects like
South Station Tower, where employers are prioritizing both the workplace experience,
(11:46):
so what it feels like inside the building, and also
shortening the commutes, so making it easy to get to
the office and then making it a great experience once
you're there. And we can deliver on both. I mean
South Station Towers, what we call them, convenient commute in
Boston and the actual experience once you get inside from
(12:08):
the incredible views, the attention to clean air, and two
amenities outdoor space, our nearly one acre park that's available
for our tenants. It really checks all those boxes.
Speaker 2 (12:21):
I got to hear more about this one acre park,
what floor it is on and what can you tell
us about it?
Speaker 3 (12:26):
On the eleventh floor, it's on top of the new
bus terminal. So that was part of our public private
partnership with Boston and the MBTA to deliver a new
bus terminal for commuters in Boston, and that served as
the base of this park, and so on top of it,
we've built a beautiful park that will be available for
(12:48):
both our tenants and our residents. And also we'll be
hosting events there which have already commenced.
Speaker 2 (12:56):
Well. She's Sarah Hawkins and she is the senior managing
director in the head of High Mine's a USA's market.
Good luck there with the new South Station tower. Up
next on the New England Business Report, We're going to
talk with the managing editor of the Boston Business Journal.
Speaker 1 (13:18):
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Greater Boston's local trade unions and finally thinking about getting
ready to hang up your tools after thirty five years
of working your tailoff. Congratulations, you worked hard to build
you a retirement nest egg. But now what Let me
help you break through the nonsense and financial speak so
we can get to the questions that are important to you.
As you know, nothing gets built without a set of plans,
(14:53):
and neither will you a financial future. My name is
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creator of the Marshall Plan, a comprehensive, customized plan that
will help you answer important questions in all seven key areas.
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Speaker 8 (15:36):
Hi everybody, I'm Kim Kerrigan.
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Speaker 2 (15:50):
That's Any Business Radio all one word at gmail dot
com and we'll get your business on the show too.
And welcome back to the New England Business Support on
Sunday morning, October the nineteenth, Joe short Slieve. Here, we're
going to bring in the managing editor of the Boston
(16:12):
Business Journal right now, Don Seifer, to a regular visitor
to the program, and Don have a number of headlines
that we're going to talk about today. The first one
I wanted to start with is because you are a
Salem resident and talk about a little bit about haunted
happenings and but one point two million people that trapes
through your city this time of year. I know it's
(16:35):
a lot of fun up there and folks got to
kick out of it. But nonetheless, you send us a
story and the headline on the BBJ is Salem's October
Club harnesses tourism surge to feed residents. What's this done.
Speaker 5 (16:51):
Yeah, I mean everybody knows Salem is like the destination
for Halloween. It actually starts in September, now, I mean,
you know, the traffic started to get that in September.
For the past few years, it's gone on in October.
Speaker 4 (17:03):
You know.
Speaker 5 (17:04):
It makes it so that, you know, on weekend it's
tough to go to the grocery store or anything for
people who live here. But but uh, this October Club
is a project started by the Salem Pantry three years ago.
I think it's the third year. And what it is
is it's an intense kind of harness the like all
of this tourism surge that really kind of is the
(17:25):
lifeblood of the of the tour tourism industry or Salem
try to harness that to uh, to give donations to
the Salem Pantry. You know, a lot of people come
to Salem. They might not realize that Salem is, you know,
considered a gateway city. It's got more people below the
poverty line than than the state's average. And uh, and
actually one in five residents here used the Salem Pantry.
(17:47):
So this October club is something where small businesses like
the gift shops and Salem Cinema as part of it.
They all kind of sign up to to give part
of their proceeds from the bund of October to the
Salem Pantry. But sometimes they you know, they have a
specific product that they're selling and they say, you know,
we'll give a dollar from this from each sales of
(18:08):
this product, you know, at the end of the month.
So it's you know, it's raised thirty six thousand dollars
in the last couple of years, and this year we've
got more businesses doing it than than in past years.
I think there are thirty six businesses in total versus
I think twenty two last year, so kind of a
fast growth.
Speaker 2 (18:25):
Yeah, tell us a little bit. Donald Seifert's our guest
manager and get it of the Boston Business Journal in
Salem resident, What is it like to live there during
the month of October and haunted happening?
Speaker 5 (18:34):
Yeah, I mean it's you know, I've got I've got
a twelve year old kid, so she loved it, you know,
I mean it's kind of a weird place to grow up.
I think for people that, like, you know, the Halloween
is such a big deal part of the year, but
I mean it's you know, it's fun. I mean, you know,
people around here obviously it is a little bit of
a pain to try to get around on weekends, but
(18:55):
you know, especially when it's nice weather out, there's a
lot of fasts. I have to say, this year, it
seems like there's less people driving maybe than there has
been in past years. I mean, there's been a big
push to tell people, you know, please take the commuter
rail up here, don't drive because there's not that many
places art. It seems like maybe some of that is
sunk in because there's not as many people driving, although
there's a lot of people walking around and crossing the streets.
(19:18):
So it's a overall I think, you know, I like
living here this time of year as much as it's.
Speaker 2 (19:24):
A halfle all right, Well that's good to hear. All right,
let's move on to some of the other headlines on
the BBJ this week. This one has to do with
a well, the headline is it's a story written by
your reporter Isabelle Harte. The headline is a viral bagel
pop up opens brick and mortar shop. And so what
(19:47):
is this viral bagel pop up? Tell us about them?
Speaker 5 (19:51):
Yeah, it's a It's a place that started as a
pop up in the South End called Brick Street Bagels.
I guess a couple of years ago they started to
do pop ups in the are area and there would
be big, long lines coming out down the street for
people to just get a bag of bagels at a
tub of cream cheese. That's all they had. But apparently
the bagel I haven't had them personally, but apparently the
(20:12):
bagels are very good. So they kind of got a
cult following, and so finally they are opening their own
their own you know, brick and mortar store at three
seventy one West Broadway, and you know, in addition to bagels,
they're selling breakfast sandwiches and you know the other stuff.
The guy named Jordan Renault, and he actually crowdfunded in
(20:34):
order to raise the money for He was able to
raise forty five thousand dollars in donations, which he will
pay back in free bagels. See who donated to them.
Speaker 2 (20:45):
I mean that in and of itself is a wild
business story.
Speaker 5 (20:49):
It is. It sounds like it's a lot of bagels.
Speaker 2 (20:52):
It certainly does. I mean, you know, talk about they're
just standing a line for bagels and cream cheese and
it was nothing else. Okay, So but the success continues
for them.
Speaker 3 (21:01):
Yeah.
Speaker 5 (21:01):
Yeah. They opened I think a little more than a
week ago, and so far it sounds like they're doing
very well.
Speaker 2 (21:07):
All right, all right, another headline on the on the
BBJ this week, a story written by your reporter there,
Grant Welker. Downtown Boston office building headed to the auction block. Okay, well,
what what? What?
Speaker 5 (21:22):
What's this address is a It's a five story office
building right near South Station, the ninety nine Bedford Street.
It's also known as the Bedford Building, big old brick building.
It's got a clock on top, and it's it's and
it's going to be auctioned off. So what What's notable
I think about this story is that you know, this
(21:44):
auction is going to happen on November fifth, and it
will probably be kind of watched as yet another indicator
of office values in the city. The interesting thing is
right next door, One Lincoln is a thirty sixth story
tower and it was auctioned off just in March, and
it was sold for four hundred million dollars when it
(22:05):
was when it was refinanced just two and a half
years earlier and valued at a billion dollars. So took
a big hit this one. I don't know what the
actually the property was assessed to twenty two million, so
much you know, much smaller, but still as you know that, well,
we'll see how much a buyer lines up to pay
for this building and if it's you know, significantly less
(22:27):
than that amount. As the office space throughout the city
just continues to struggle.
Speaker 2 (22:31):
Yeah, well let's talk a little bit about that. Continuing
to struggle there at the BBJ. What is the health
of downtown office space at this point?
Speaker 11 (22:38):
Now?
Speaker 5 (22:40):
I mean it's getting better. We actually did a story
recently that that in Q three it did get a
little bit better. But you know, overall, you know, hybrid
work has has really you know, hurt the office office
space industry, the real estate industry in downtown Boston for
several years basically ever since COVID it has never recovered.
(23:01):
You know, office space is still valued at less than
it was pre pandemic, and that's really causing a lot
of companies to struggle with, you know, how to fill
their space. And the values of those buildings are really plummeted.
Speaker 2 (23:16):
Yeah, but where are we on that curve? Don w
Are we still flat? Are we going still going the
wrong direction? Or a we started to the right direction.
Speaker 5 (23:22):
Starting to turn up a little bit. I mean, you know,
companies are starting to or not starting to, but they're
continuing to pull more employees back into the office. I
think we talked about this a couple of months ago
that you know, some that a lot more companies vowed
that they were going to be cracking down a little
bit more in September October on the rules. You know,
(23:45):
I think there's it's not an upswing, but it's definitely
not recovered to where it was in twenty nineteen by
any means.
Speaker 2 (23:51):
All Right, talking with a Don Seifert, managing into the
Boston Business Journal And one more headline on the BBJ
this week, a story written by Hannah Green Bristol Myers
Squab buys Cambridge Biotech for one point five billion. What
happened here?
Speaker 5 (24:07):
Yeah, this is a I mean, it's probably a biotech
that people most people hadn't heard of. It's orbital Therapeutics.
It's a spin out from a company that people may
have heard of Beam Therapeutics, which is which was actually
started by feng Jiang I think his name. He was
one of the inventors of crisp crisper technology. But so
(24:29):
Orbital Therapeutics went out I think in twenty twenty two,
and they're working on different genetic medicines for autoimmune diseases.
But the fact that they were built are bought by
Bristol Myers, you know, a big pharma giant. It's kind
of good news for the industry. I think one of
the one of the interesting lines in a handed story
was that there were dollar wise, there was more biotech
(24:52):
acquisitions just in the month of July than there was
in the entire first half of the year. So it
looks like M and A is picking up in the
biotech industry, which is also going to struggle.
Speaker 2 (25:03):
All right, he's Don Seiffert. He's the managing editor of
the Boston Business Journal. I appreciate you joining us this
Sunday morning on the New England Business Report. And a
little later in the program, we're going to talk about
well chocolate peanut butter cups. You don't want to miss that, right.
Speaker 1 (25:22):
Kim and Joe will explore more business news that impacts
our New England economy when they return Balling love.
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Speaker 9 (26:28):
Are you a brother or sister of one of Greater
Boston's local trade unions and finally thinking about getting ready
to hang up your tools after thirty five years of
working your tailoff. Congratulations, you worked hard to build you
a retirement nest egg. But now what Let me help
you break through the nonsense and financial speak so we
can get to the questions that are important to you.
As you know, nothing gets built without a set of plans,
(26:49):
and neither will you a financial future. My name is
Mike Marshall, President and CEO of Marshal Wealth Management and
creator of the Marshall Plan, a comprehensive customized plan that'll
help you answer important questions in all seven key areas.
You don't have to do it alone. There is no
cost or obligation. Call us at eight five seven three
four to two ten thirty. That's eight five seven three
(27:12):
four two ten thirty. We'll check us out online at
Marshallwealth dot Com Marshall with two l's Marshallwealth dot Com.
Speaker 10 (27:19):
Advisory services offered through Capital Analysts or LINCL Investment Registered
Investment Advisors. Securities offered through Lincoln Investment Broker Dealer Member
fin SIPC. Lincoln Investment dot Com, Marshall Wealth Management and
the above firms are independent and not affiliated.
Speaker 2 (27:32):
And welcome back to the NEWELA Business Report on this
Sunday morning, October the nineteenth, Joe Shortzieve here Kim Kerrigan
joining the Day Off. This is a spot in the
program where we talk about other business headlines that caught
our attention. This certainly got my attention. This one's all
kinds of media services across the country picked it up.
But this is the one I saw on the Boston Globe.
Average price. Yeah, average price of a new car tops
(27:55):
fifty thousand dollars for the first time Kelly Bluebook report.
As talk about sticker shock, right, I was thinking about this,
going what did I pay for my last car? And
I was like, oh, yeah, well that was yeah, yeah, yeah,
getting close to that number. So the average new vehicle
manufacturer suggested retail price aka the asking price, according to
(28:19):
The Globe, in an article written by Emily Sweeney, reached
a new high of fifty two thousand, one hundred and
eighty three dollars. Interestingly so though they say part of
this has to do with this whole pushed by electric
vehicles before the federal tax credit expired. So some four
(28:40):
hundred and thirty seven thousand electric vehicles were sold in
the third quarter of twenty twenty five as America's rushed
to take advantage of the federal ev tax credit before
it expired last month. So I mean there is sort
of a reason behind it. And eat. You know, electric
vehicles are more expensive, so I guess the question is
those that fifty thousand figure. We'll let hold as we
move into the final quarter of the year here and
(29:02):
then we're going to talk a little bit about another
story written by John Custer in the Boston Glove headline
being after Applegreen pullout, mass Dot decides to put controversial
service plaza contract back out to bid. Global Partners had
hoped to take over after initially losing the competition, but
no such luck, mass mass Dot saying no, no, We're
(29:23):
going to go back to the marketplace and try to
find somebody else to oversee the redevelopment of these service
plazas across the state. All right, Another story that caught
my attention and I'm sure yours as well, and has
to do with Proposition two and a half. Now, we've
talked about Proposition two and a half for decades, right,
and of course, you know, cities and towns never liked it.
(29:45):
But all of a sudden, it seems like the screaming
is getting worse at this point, and they're really upset,
and let's bring in Colin young If, of course, is
a regular visit of the program. He is the deputy
editor of the State House News Service, all around a
great guy and knows what's going on up there on
Beacon Hill, and he says things are starting to happen
up there on Beacon Hill. Colin, what's going on with
(30:07):
cities and towns? They want more from the commonwealth because
they're saying that, well, anyway, you tell us what's going
on with this proposition two and a half cry we're hearing.
Speaker 12 (30:17):
Yeah, thanks for having me, Joe. The story we're hearing
from municipalities is really sort of a mirror image of
the same story we're seeing at the state level. Right
the state is saying, hey, the federal government is changing
some approaches to funding, and we're now not getting the
state now is not getting enough help from the federal government.
(30:39):
And now we're hearing the same from municipalities. They're saying, hey,
the state isn't kicking down enough to us, and we're
really starting.
Speaker 13 (30:47):
To feel the squeeze.
Speaker 12 (30:49):
And of course municipalities say they're the ones who are
are closest to the residents closest to their constituents.
Speaker 13 (30:57):
They're the ones who deal with the potholes.
Speaker 12 (30:59):
Getting kids to school, all of those things that affect
people's daily lives. But over about the last two decades,
unrestricted local aid from the state to municipalities, adjusted for insallation,
is down twenty five percent. And the real problem here
is Proposition two and a half limits how much taxes
(31:22):
a city or town can raise. So they're really starting
to feel the squeeze, getting less from the state but
not having an ability to raise more revenue from their residents.
Speaker 2 (31:33):
Okay, so that's the problem. So what's the solution.
Speaker 12 (31:38):
Well, some municipalities feel the solution lies with Proposition two
and a half, which you mentioned, Joe, that right now
caps property tax increases at two and a half percent
per year. Cities in some cities and towns think that
just simply is too low of a cap, that that
constrains them far too much, and there's been some rumbling
(32:02):
you know, that maybe Proposition two and a half ought
to be something more like proposition three and a half,
proposition four, whatever the number might be.
Speaker 2 (32:10):
Well, good good luck sell on that to folks, you know,
I mean, because every time they bring up this issue.
Most in the cities and towns seem to love it.
I don't know if they equate what's being lost or
not exactly.
Speaker 12 (32:21):
It's one thing for municipal leaders to say, you know,
we want the ability to raise more revenue, Well, you
have to get that revenue from people.
Speaker 13 (32:30):
You know.
Speaker 12 (32:31):
And it's the residents of cities and towns that are
really feeling the pinch and saying, wait, I can't pay
any more in taxes. I'm already getting hammered here. That's
why cities and towns have such a hard time with
these overrides. When they do try to override Proposition two
and a half, it's a brutal fight in every city
(32:51):
in town where it takes place. But that's becoming more
and more regular for cities and towns.
Speaker 2 (32:58):
All right, well, what's going on in these cities in
town that's being lost? I mean, do you have any
examples of Okay, because of this situation we're in, we've lost.
Speaker 12 (33:07):
What Well, you know, the cities in town say that
when they have to cut, the places they're forced to
cut are their police force, their fire force, the number
of teachers they have in the schools, the number of programs.
Speaker 13 (33:22):
The schools are able to offer.
Speaker 12 (33:25):
Cities in town say that at this point, for years
they have been trying to do more with less, and
that they have cut basically all of the fat from
their budgets, and that they have there's no place left
for them to cut that unless they are going to
start getting more aid from the state or have an
(33:45):
ability to raise more revenue on their own. The cuts
that are left are only the really painful ones. Firing teachers,
eliminating police patrols in some neighborhoods, that type of thing,
not paving the roads, you know, things that really affect
people's daily lives.
Speaker 2 (34:04):
Well, where's the fix. Is the fix on the state
level or is it the local level as well? Has
it happened to have to happen in both places.
Speaker 12 (34:12):
I don't see a way that this really gets resolved
without some kind of state action. You know, any change
to Proposition two and a half would require statewide action.
Governor Mara Heeley this summer or earlier this year, i
ought to say, refiled a bill that would give municipalities
(34:32):
the ability to opt in to raise some local taxes,
local meals taxes, local excise taxes. The municipalities love that
idea because they can bring in more revenue by charging
a higher meals tax or a higher excise tax. But
the state lawmakers up here on Beacon Hill are the
ones who would have to vote on that and vote
(34:54):
to give municipalities that authority. I don't think they're that
eager to take a vote that, even if not directly,
would allow for higher taxes, and especially not as we're
heading into an election year next year.
Speaker 2 (35:09):
Yeah. Yeah, Colin Young zag Gassi's the deputy editor there
at the State House News Service and knows pretty much
what's going on up there every day. Colin, another thing
you mentioned to me is we're preparing to have you
on the program today, is you wanted to talk a
little bit about higher offshore corporate taxes. I guess this
has been a loophole thats existed for a long time,
(35:30):
and what's going on there.
Speaker 12 (35:32):
The push here is to have the state pull in
a larger share of taxes from big multinational corporations that
often steer their profits overseas, sometimes in an effort to
dodge taxes here in the states. Right now, Massachusetts taxes
five percent of foreign profits and that's based on a
(35:54):
federal formula, and there's a push to raise that to
fifty percent in massive Chusetts, and proponents say that, look,
this is a way to raise a lot of revenue
for the state without affecting, you know, main street businesses,
without it being an increase on the businesses doing business
(36:14):
operating here in Massachusetts.
Speaker 2 (36:17):
So is there much opposition at this point?
Speaker 13 (36:21):
Right now?
Speaker 12 (36:21):
The opposition is.
Speaker 13 (36:24):
Forming.
Speaker 12 (36:25):
You know, there isn't anyone sort of rushing out to
be the voice of multinational corporations with the offshore tax havens.
But this is really getting wrapped up into what I
think is a larger debate over taxation generally in Massachusetts,
business competitiveness in Massachusetts, and just where the state gets
(36:51):
its revenues from. So I think this one will probably
get sort of wrapped.
Speaker 13 (36:56):
Up into that larger conversation.
Speaker 2 (36:58):
All right, you're following it, and of course we'd love
to hear more about it. He's Colin Young, he's a
deputy editor of the State House News Service. And we'll
have you back to tell us, well where they tax
us next? And you've heard us talk about it on
this program, and of course I think I mentioned it today.
Consider this ten thousand people every day, every day you're
turning sixty five in this country and moving towards retirement.
(37:22):
Of course, the phrase that they use is a silver
tsunami and who's right in the middle of it? But
that would be one Mike Marshall of Martial Wealth Management.
And Mike is a regular visitor with us here on
the program. He joins us this Sunday morning. Good morning
to you, Mike. So let's talk a little bit about well,
we're moving towards year end planning. Let's say I'm thinking
about retirement, thinking about hanging up the microphone in twenty
(37:44):
twenty six, what should I be doing?
Speaker 11 (37:46):
That's right, Joe and Kim. There are a thousands and
thousands of people that are entering that retirement ready phase
of their life, and at the end of every year,
they've got to take a look at the different retirement
and tax planning ategies that they need in order to
maximize their next stack. Right, So we always start with
number one, which would be to max out your retirement contribution.
(38:09):
So as you check your retirement accounts for twenty twenty five,
if you have a four oh one k just know
that you can contribute up to twenty three thousand dollars
in twenty twenty five, and then if you're fifty year
older Joe, there's a seventy five hundred dollars catchup contribution available,
So if you're over fifty, legitimately you can put away
(38:33):
thirty thousand, five hundred dollars in your IRA four oh
one K I'm sorry for your IRA. The limit is
going to be seventy seven thousand, which is up from
twenty twenty four, so seven thousand dollars contribution limit to
the IRA, and then one thousand dollars ketchup if you're
overage fifty, So even if you don't have a four
oh one K, you can still contribute eight thousand dollars
(38:56):
to your IRA in twenty twenty five, which, as you know,
contributions to four one ks and IRA is a double
tax deductible because you get to deduct them from the
income in the year that you make the contribution, and
then of course that investment grows tax deferred until retirement.
And putting it in early makes sense because you're going
(39:17):
to experience the eighth wonder of the world, which is
compound interest, and the nice thing about retirement counts contributions
is that those accounts get to grow compound interest on
the tax money as well, because you're getting the benefit
of leaving the taxes that are due in the account
instead of taking them out. So that's number one, and
(39:38):
then number two, if you've saved well, you should consider
a ROTH conversion. A ROTH conversion could you make these
these distributions in retirement that much better because they would
be tax free. So if you have an IRA, you
might want to consider transitioning it or converting it part
(39:58):
of it at least to a Roth eye. So the
deal is if you do that, you'll pay taxes on
the conversion amount now, but then all future withdrawals can
be tax free. And the other benefit about a ROTH
if you don't.
Speaker 5 (40:11):
Have a Roth ira to go with your regular IRA.
Speaker 11 (40:14):
Or your four oh one, is that rough iras don't
have a required minimum distribution later on in life. So
at seventy three, which is the RMD for regular iras,
rough iras do not have that date. And if you
want to convert, though, it's got to be done by
twelve thirty one of the year that you're converting, So
(40:35):
you've got a little bit of time to take a
look at whether or not a Roth conversion would benefit you.
Number three, we're going to take required minimum distributions Joe.
Every year. You know, if you're seventy three years old
or over, you must make sure you take your required
minimum distributions from your IRA, and if you don't, missing
an RMD or distribution once you're seventy three can result
(41:00):
in about a fifty percent penalty on the amount that
you were supposed to take. So I mean you're talking
about major, major penalties for missing a required minimum distribution.
And remember it's got to be done every year if
you're over seventy three. Even if you don't need the money, Joe,
you still have to take it out so that the
IRS can get the taxes on the money. So they
(41:23):
let you defer it for so long and then they
make you take it out to pay the tax.
Speaker 2 (41:28):
Okay, all right, So that's what you should do, right Mike.
We're talking with Mike Marshall, who's the founder and CEO
of Martial Wealth Management, and you're giving us the right
thing to do right now, I'm guessing not everybody's doing
the right thing. Well, what's the biggest mistake people make.
Let's say I turned sixty five in the past year.
What are the mistakes people are making.
Speaker 11 (41:47):
Well, the problem with turning sixty five is that if
you don't notify Medicare prior to that, about three months prior,
they're going to slap you with a little bit of
the penalty. So one of the things you must to
before you turn sixty five is you've got to notify
Medicare that you're turning sixty five in the next three
months or so. So that's a big one. And then
(42:09):
as far as folks looking at other potential tax and
retirement moves, year end, a lot of people like to
harvest their gains and losses. Joe, Well, what am I
talking about. Well, you may have some stocks or some
positions with a nice gain and you may have some
with a loss. Well, if you wanted to take the
advantage of cashing out and taking the gain, you would
(42:32):
want to sell something that's down so you can offset
the gain with a loss. It's called tax lost harvesting.
It's a great way to, you know, look at year
end strategies to reduce your overall exposure for taxes. The
other thing too, they can do is help savings accounts.
I don't know if you're familiar with them, but it's
a flexible spending account. You get to put the money
(42:55):
in and tax deduct it from your income in the
year that you put it in, and so that those
things can be triple tax advantage. Those health savings accounts.
The growth is tax free, and if you withdraw for
the medical expenses, that's also tax free, so it's almost
like a rough IRA for your medical needs. Number six.
(43:16):
I always call it a be strategic with charitable giving.
In other words, if you're inclined to be charitable, and
there's ways you can give to charity without incurring extra
capital gains taxes by maybe liquidating a position and then
writing a check to them. You can simply give the stock,
the advanced stock to them. It's appreciated, so when they
(43:39):
sell it as a tax pre organization, then they don't
have to pay the tax on it. But if you
sell it, you have to pay the tax and then
you can write them the check. So I always like
to be able to distribute the appreciated stock directly to
the charity that avoids the client from paying the capital.
Speaker 2 (43:55):
Gains and Mike Folks listening to this program. How do
they get in touch with you or your advisors?
Speaker 11 (44:02):
Very simple. It all starts with just a quick communication,
whether it's a phone call, an email or a text.
Marshallwealth dot Com is the website. They can reach us
anytime at eight five seven three four two ten thirty.
That's eight five seven three four two ten thirty. Listen, Joe.
We're here to help people organize and guide them into
(44:23):
their retirement, and that's really what we focus on. So
if they don't call, it's very difficult to help. But
we are here and stand ready to do so.
Speaker 2 (44:32):
All right, All right, He's Mike Marshall, founder CEO of
Marshall Wealth Management, And like I say, they're busy these days.
So get in line and hold your hand up and say, hey,
I need some help with my retirement. Up next, we
get to talk about well, one of my favorite things now,
that'd be chocolate peanut butter cups. Did you guess that?
Chocolate peanut butter cops And a company called CB Stuffer
(44:56):
and they're doing business in the swampscott now, but they're
not they're not a brick and mortar. It's all online.
So you'll hear a lot more about it than just
a moment.
Speaker 1 (45:08):
You are listening to the New England Business Report on
the Voice of Boston w RKO six, Aby, Joe and
Kim will be right.
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Speaker 9 (46:18):
Are you a brother or sister of one of Greater
Boston's local trade unions and finally thinking about getting ready
to hang up your tools after thirty five years of
working your tailoff. Congratulations, you worked hard to build your
retirement nest egg. But now what? Let me help you
break through the nonsense and financial speak so we can
get to the questions that are important to you. As
you know, nothing gets built without a set of plans,
(46:39):
and neither will your financial future. My name is Mike Marshall,
President and CEO of Marshall Wealth Management and creator of
the Marshall Plan, a comprehensive customized plan that will help
you answer important questions in all seven key areas. You
don't have to do it alone. There is no cost
or obligation. Call us at eight five seven three four
two ten thirty. That's eight five seven three four two
(47:02):
ten thirty. Well check us out online at Marshallwealth dot Com,
Marshall with two l's Marshallwealth dot Com.
Speaker 10 (47:09):
Advisory services offered to Capital analysts or Lincoln Investment Registered
Investment Advisors. Securities offered through Lincoln Investment Broker Dealer member FINRA, SIPC,
Lincoln Investment dot Com, Marshall Wealth Management and the above
firms are independent and not affiliated.
Speaker 8 (47:22):
Hi everybody, I'm Kim Kerrigan.
Speaker 2 (47:24):
And I'm Joe Shortsley. If you want to be part
of the New England Business Report, Sponsorships are still available.
Speaker 8 (47:30):
You can email us at any Business Radio at gmail
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Speaker 2 (47:35):
That's any Business Radio all one word at gmail dot
com and we'll get your business on the show too.
Speaker 1 (47:50):
The New England Business Report on w RKO is brought
to you in part by Subaru of New England. Subaru
of New England dot com.
Speaker 2 (48:05):
And welcome back to the New England Business Report on
this Sunday morning, October the nineteenth. Well, we couldn't let
the time go by without talking about peanut butter cups, right,
I mean I think that I think it is probably
my favorite candy. I mean, I don't know, and I'm
not a huge candy guy, but peanut gutter cups, I
don't know that having tough time staying away from them.
So we're going to talk about Cebee Stuffer. They are
(48:28):
a local company and we're going to talk with the owner,
Aaron Calvo Bacci, and tell us about Sebee Stuffer. They
sell well, chocolate pizza slices. I mean, I know, you
wake up and say where can I get a chocolate
pizza slice? Well, this is the place. And they used
to be brick and mortar, but then they went online.
But let's bring her on Erin and welcome to the program.
Speaker 4 (48:48):
Well, thank you so much, Joe, thank you for having me.
I am Aaron Calvo Bacci and yes you're Chrissa. I'm
the owner of Cebe Stuffer Bassie Chocolate Design and we
are makers of the large peanut butter cup in the
industry and the only available in fifteen plus flavors. And yes,
we do make chocolate pizzas and chocolate pizza slices as
(49:10):
well as gourmet bars. However, our most popular and top
selling items are our peanut butter cups.
Speaker 2 (49:18):
Of course, you got my attention there, Eron, Okay, take us,
take us through this business. How did it start? How
did this all come about?
Speaker 4 (49:27):
So you're right in saying we were a brick and
mortar So what happened? In two thousand and three My
husband thought it would be a wonderful idea to take
over an existing retail chocolate business called the Chocolate Truffle.
And at the time we had a two year old
and a one year old, and we took over the
(49:48):
week before Thanksgiving, which was the craziest time to ever
take over a business. And at that time the business
was reliant on many outside vendors, they didn't make the
product themselves, they were resellers. And my background is business development,
so I knew the way that we were going to
be successful and sustainable was to be the manufacturer. So
(50:13):
it took a few years, but in two thousand and
six we soft launched the wholesale division, and that was
primarily to support our retail store, which then grew to
three stores before launching into selling wholesale to other specialty stores.
And then something happens called the financial crash, and it
(50:37):
just got to be too difficult to manage having the
retail brick and mortar, plus staff, plus inventory in the
wake of losing access to credit, so we made some
very difficult decisions. We actually sold our family home to
keep from filing bankruptcy. We sold our home to put
(50:59):
the money back into business and decided to just write
it out in a At that time, it was a
two bedroom apartment, but we have since taken over that
building and we have four bedrooms now, thank goodness, and
we just continue to grow. And then in two thousand
and fifteen, I made the decision to sell off the
(51:20):
brick and mortar the Chocolate trustle and to rebrand to
see thee suffer and to continue selling and growing the
wholesale division, which we have been really doing well with. Unprtuately,
COVID kept us from being able to exhibit a trade shows.
So I really do feel like since twenty twenty, I
(51:43):
have been pivoting continuously to reevaluate the brands, but we're
still growing strong. So I'm very thankful that people are
your peanut butter cups.
Speaker 2 (51:54):
So your only way to get these peanut butter cups
is online right now?
Speaker 4 (51:57):
Correct, Well, so now you can get them in specialty
stores that we sell across to in fifty states, but
then your best is always to contact us directly at
cbsuffer dot com. And we manufacture in swampscot mass so
we are available. If people wanted to place an order,
they could come and pick up.
Speaker 2 (52:17):
All right, Well, tell us about the traffic on the
cbstuffer dot com and who's your customer.
Speaker 4 (52:23):
So what's interesting, because we do sell wholesale, we have
discovered we have a wholesale account that has been supplying
TikTok businesses, which was unbeknounced to us. So our product
has gone viral on TikTok and because of that, it
has pushed people back directly to our site at cbe
(52:45):
suffer dot com, and we are seeing people who are
ordering a single peanut butter cuff and having it shipped
all the way to California, or they're ordering multiples at
a time. So what's really wonderful is we have a
tremendous following of repeat customers are buying direct at phebe
(53:06):
suffer dot com. But right now with Halloween, we have
a newer account in Salem Math Whimsy, and last year
we the novelty items such as are Halloween Pizza slice,
the mini slice. We get maybe a few orders here
and there. Because of her and her location in Salem Math,
(53:30):
she has tripled our sales of the Halloween Mini Pizza slice.
Speaker 2 (53:39):
Wow, tell us about sales? I mean, how many peanut
buttercups besa slices? How do you how do you quantify it?
Speaker 4 (53:46):
So we are shipping out thousands of peanut buttercups a week? Yeah,
I mean, but the thing is, I guess we're but
we're keeping that in mind. We're still in sited small
because when you have the major players that are out there,
they're probably shipping out thousands a day. But for a smaller,
(54:08):
independently owned business. We're still holding our own with shipping
and handling, the logistics as well as the tariffs our
chocolate prices. Chocolate has doubled for us.
Speaker 2 (54:24):
Yeah, go ahead, yes.
Speaker 4 (54:26):
Yeah, so it's it's it has created its own challenges,
but I'm thankful that we do make a quality product
and people are still buying it.
Speaker 2 (54:35):
All right, Well, let's talk a little bit about the buyer.
How do they get in touch with the CBE stuff
or how do they pick out this pizza slice? Tell
our listeners how they do that.
Speaker 4 (54:45):
So the listeners want to go to cbstuffer dot com
and for your listeners, let them know, put in halftag,
get stuffed and they will receive twenty percent off their order.
And we ship out of Swampscott, Massachusetts. If it is
going to a warm area, we do have to ship
(55:05):
in a pooler with ice, so it will be a
little more expensive. But anyone can find us over at
CBE suffer dot com.
Speaker 2 (55:12):
Okay, and what's an average order?
Speaker 4 (55:14):
Oh so, an average retail order. It's going to sound crazy,
but it's about a dozen peanut butter cups.
Speaker 2 (55:22):
Okay, all right, And what we'll like.
Speaker 4 (55:25):
That's what people.
Speaker 5 (55:26):
That's that.
Speaker 4 (55:26):
But we're very happy to work with the person who
wants to treat and wants to buy themselves a single
peanut butter cup.
Speaker 2 (55:33):
And is October the month for your company or is
it Christmas? Or what is the month that the sales
are really popping?
Speaker 4 (55:41):
You know what's been interesting is there We're we're busy
year round now because what we found is we have
accounts in Alaska, so they're gearing up. They start from
May to September, and then we're in the midst of
all the thes and a cider type stores, farm stores
(56:03):
that make their money on pumpkins, and then we will
go right into the fourth quarter for any of the
specialty gift stores.
Speaker 2 (56:13):
Well, we wish you good luck here on the New
England Business Support, you say, ol Aaron Calvo, Bucky and
of course the company is cbstuffer dot com. All right,
well that's all the time we have here on the
New England Business Report on this Sunday morning. Kim Kerrigan,
you know what, I'm going to get her back to work. Okay, Now,
we'll get her back here and get her back here
(56:33):
for next Sunday because we'll be discussing all the business
headlines as we move closer to Halloween. Joe Shortzlee, thanks
for joining us. I'm the New England Business Report.
This is the New England Business Report with Joe Shortsleeve
and Kim Carrigan, a weekly roundup and discussion of the
top business news impacting our New England economy.
Speaker 2 (00:09):
And good morning and welcome to the New England Business Support.
On this Sunday morning, October nineteenth, Joe Shortsleeve with you,
and yes it is just Joe short lived Kim Kerrigan
enjoying how much needed well weekend off, day off and
what a beautiful day to be off. Right, we are
marching through October.
Speaker 3 (00:26):
You know.
Speaker 2 (00:27):
The first thing we're going to talk about today, it
has to do with this new South Station tower. I
mean maybe you've seen it. It's stunning. It's fifty one
stories tall. It's been decades in the making. They were
supposed to start building it in two thousand and eight,
but they get one thing after another. When did they
start twenty twenty And what happened in twenty twenty, Well,
(00:48):
COVID hit that's right, among other things, they had a
repoint all thirteen train lines, so they've been busy. Sarah
Hawkins is the managing director of heinz Us East Market.
She's going to be along to talk to us about
this stunning development. It's fifty one stories, like I said,
and it's over Boston's most connected and active transit hub.
The upper sixteen floors of the development are Ritz Carlton residences,
(01:14):
So that's pretty nice, right. So anyway, this Hines is
a global company out of Texas, and it's spelled Hnes,
and they own and operate some ninety two billion dollars
in assets across all kinds of property types. Right, No
relation to the Hines I know here in Boston, John Hines,
(01:35):
John Hines. Of course, that Hines is hyn E. S.
And why do I mention that? Just because I can.
John Hines is the CEO of the managing partner of
the managing partner of Boston Global Investors. But his dad
was Jack Hines. I worked with Jack Hines during the
Blizzard of seventy eight at Channel five. I worked with
Jack Hines at Channel fifty six starting in nineteen eighty
four when I brought my broadcasting career to Boston. So
(01:56):
why do I mention that? Oh, I don't know, Jack.
Jack was always a favorite of mine. Okay, all right,
So on the program today, Don Seifert is going to
be along. He's a managing editor of the Boston Business Journal.
Don also happens to live in Salem, the city of Salem.
And what's Salem like during the month of October. Well,
they have some one point two million people coming through
(02:18):
the city. Some Salem residents can be spotted wearing T shirts.
Salem is not a theme park. I guess you just
basically asking people to be respectful of the surroundings and
the fact that people live and work there and go
to school there and so on and so forth. But
there's an effort that's been going along and you know,
really been gathering some attention about helping out the Salem
food pantry. And it's a group called the October Club
(02:41):
and they're donating partial sales to that. Anyway, Don Seifert's
going to tell us about that and as well as
some of the other business headlines and terming this one
a viral bagel pop up opening a brick and mortar
shop downtown Boston office building is headed to the auction.
I'm sure we'd like to know which one that is, right.
(03:02):
And then Bristol Myers Squibbs squib buying Cambridge Biotech for
one point five billion dollars, so a lot of business
headlines to sort through with Don Seifert. Then we're going
to be talking with Mike Marshall of Marshall Wealth Management,
talk a little bit more about this silver tsunami. The
(03:23):
statistics are really staggering. Ten thousand people every day are
turning sixty five years old in this country and they're
all heading to retirement anyway. So Mike's going to talk
to us about retirement planning, but really in the context
of year end planning, if you're thinking about going into
twenty twenty six retired, what do you need to know?
(03:44):
And then Colin Young at the State House News Service,
he is the managing editor up there on Beacon Hill,
a great guy, very reliable, very smart, and he's going
to talk to us about Proposition two and a half.
A lot of folks know what Proposition two and a
half is, right, It limits the amount that municipality has
can tax their residents. That's fine and dandy. For many years,
what has happened is that local aid in the state
level has been slowing way down to these cities and
(04:06):
towns and they can't tax more. So they're screaming, okay,
And Colin Young's gonna tell us where that's going to lead.
He's also going to talk about an effort up there
in Beacon Hill higher offshore corporate taxes that'll get the
business community's attention.
Speaker 4 (04:23):
Ry.
Speaker 2 (04:23):
Yeah, I guess it's a loophole that's existed for years,
and they're going to trying to close it up there
and Beacon Hill. And then since it's October, and since
I love peanut butter cups, right, we're going to talk
with CB Stuffer Chocolate and we're going to talk with
the owner, Aaron caalvo Baki. And what are they Well,
they're basically an online chocolate here, I guess, and they
sell these peanut butter cups and they sell chocolate peanut
(04:46):
butter slices. Can you think of anything better than that?
I mean, anyway, they started out they were brick and mortar,
and then they said, forget that, we're just going to
go completely online. And so that's what they are. But
of course you had guess that October is one of
the her busiest month. And we'll be talking with Aaron
kaovo Baki about well all the peanut butter cups. All right, Well,
(05:07):
without further ado, let's talk more about what everybody's talking
about that new South Station tower, fifty one stories atall.
And nobody knows more about this project than our next guest,
and that's Sarah Hawkins. And she, of course is the
managing director and the head of Hines US East Market.
She's responsible for all residential, commercial and mixed use acquisitions
(05:28):
and developments in the US East, which includes twenty billion
dollars in assets under management and offices in New York, Boston,
d C. And Philadelphia. And Sarah joins us now, Sarah,
welcome to the program. Well, this South Station Tower is
the talk of the town. It certainly was a long
time coming. Talk to us about that.
Speaker 5 (05:48):
Thank you so much.
Speaker 3 (05:49):
We are thrilled to have it open finally. This has
been decades in the making and we are incredibly proud
of the thousands of people that have contributed to bringing
this project to life and we can finally welcome people
in its doors.
Speaker 2 (06:05):
Okay, so what's going on right now with the new
South Station Tower.
Speaker 3 (06:10):
So right now we have officially received our TCO, which
means that we can welcome people inside. So we are
already underway with tenants building out their office space. We
will be very soon welcoming new residents to come move
into their homes. And we are underway with a restaurant
(06:31):
which we hope to be able to announce shortly. And
if you've been through South Station, which I'm sure many
of your listeners have, you see the structural elements, the
new bus terminal, and that is all now open and
quite stunning actually the improvements to South Station itself.
Speaker 2 (06:50):
Yeah, no question about that. Now. The Boston Globe did
an article recently Catherine Carlock, a reporter, decades in the make,
and the South Station Tower is ready to move in
fifty one story office in Condo Skycraper opening soon, proving
test for both office demand and high end housing. Now,
let's talk a little bit about some of this article
talks about some of the hurdles you went through. You
(07:11):
were supposed to begin construction in two thousand and eight,
but right what happened there?
Speaker 3 (07:17):
Sarah, So, we have actually been working on this project
for twenty seven years, and we have been through many
market cycles and many many challenges, both through the financial crisis,
through the pandemic, clearly through different market cycles, and also
all of the work that had to come together to
(07:37):
bring the many different agencies, regulatory arms, partners, etc. To
bear on this. You know, it's really a massive public
private partnership. But in December twenty nineteen, that was the
big moment where we had completed all of the approvals,
and that includes both federal approvals because Amtrak runs through
(07:58):
the station, that include City, State, MBTA. We had our
equity capital, debt capital, We had our construction contract, and
that was all executed in December twenty nineteen, So after
what had already been a couple decades, we were finally
ready to move forward and absolutely thrilled to do so.
And then, of course, three months later, the pandemic hit
(08:21):
and construction was shut down. But I cannot say enough
good things about our team, the thousands of construction workers,
our partner at Suffolk Construction, the resilience and the perseverance
that we worked through what was not only the challenges
of the pandemic, but we kept the trains running through
(08:42):
the entire construction of the project. So those first two years,
the teams were working through the night to deliver what
became the podium and the new bus terminal for the
City of Boston. To get that constructed before we even
started on the tower.
Speaker 2 (09:00):
About who who's going to be working there?
Speaker 1 (09:01):
Who are you?
Speaker 2 (09:02):
Who are some of your tenants that you can tell
us about?
Speaker 5 (09:04):
Sure?
Speaker 3 (09:05):
So the first tenants that we announced were Jones Day,
the global law firm, FM Global Insurance Company, and Citadel,
the large financial manager. So thrilled to have those three announced.
We are underway in some very exciting discussions which I
cannot speak to or announce yet.
Speaker 2 (09:23):
But go ahead, go ahead, Sarah. We won't tell anybody.
Speaker 3 (09:28):
Well, your listeners can do their own googling about rumors
in the market, but we will wait until we are
ready to announce. But I am fairly certain we will
have some exciting announcements over the coming months.
Speaker 2 (09:40):
Okay, explain to us. The other part of this is
the Rich Carlton part of this piece of the puzzle.
Speaker 3 (09:47):
Yes, yeah, So we have partnered with the Riz Carlton
to manage our one hundred and sixty six residential condominiums
in the top sixteenth floors of the building, so the
absolute best views in the city, the best amenities. These
homes are just stunningly beautiful and Riz Carlton really just
(10:09):
brings a standard of residential management of luxury to the
experience for our new home buyers.
Speaker 2 (10:18):
Talking with us Sarah Hawkins, she's the managing director and
the head of Hines a US East market. I'm talking
about the new South Station tower there. Sarah, what's your
assessment of downtown Boston and the health of the office
market industry.
Speaker 3 (10:32):
Well, it has been a tough few years for the
office market in general, but what we have seen over
the last twelve months is a real resurgence in both
a return to the office and also tenant demand. You know,
many of our tenants that were in discussions with have
realized they actually over corrected during the pandemic. You know,
there was a lot of a lot of panic about
(10:55):
the return to the office work from home, and I
think it's been rarely clear over the last couple of
years that that being in person is so critical not
just for productivity, but also for culture, for wellness and
people's mental state. Having that in person connection is so
so important, and we're seeing that from our tenants. So
(11:20):
while the last few years have been rather challenging for
the office market, the last twelve months have exceeded expectations
in terms of both demand for office space and the
return to the office. So we feel very encouraged about
the direction of things, and it really benefits projects like
South Station Tower, where employers are prioritizing both the workplace experience,
(11:46):
so what it feels like inside the building, and also
shortening the commutes, so making it easy to get to
the office and then making it a great experience once
you're there. And we can deliver on both. I mean
South Station Towers, what we call them, convenient commute in
Boston and the actual experience once you get inside from
(12:08):
the incredible views, the attention to clean air, and two
amenities outdoor space, our nearly one acre park that's available
for our tenants. It really checks all those boxes.
Speaker 2 (12:21):
I got to hear more about this one acre park,
what floor it is on and what can you tell
us about it?
Speaker 3 (12:26):
On the eleventh floor, it's on top of the new
bus terminal. So that was part of our public private
partnership with Boston and the MBTA to deliver a new
bus terminal for commuters in Boston, and that served as
the base of this park, and so on top of it,
we've built a beautiful park that will be available for
(12:48):
both our tenants and our residents. And also we'll be
hosting events there which have already commenced.
Speaker 2 (12:56):
Well. She's Sarah Hawkins and she is the senior managing
director in the head of High Mine's a USA's market.
Good luck there with the new South Station tower. Up
next on the New England Business Report, We're going to
talk with the managing editor of the Boston Business Journal.
Speaker 1 (13:18):
You are listening to the New England Business Report on
the Voice of Boston WRKO six 't eighty. Joe and
Kim will be right.
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Speaker 9 (14:32):
Are you a brother or a sister of one of
Greater Boston's local trade unions and finally thinking about getting
ready to hang up your tools after thirty five years
of working your tailoff. Congratulations, you worked hard to build
you a retirement nest egg. But now what Let me
help you break through the nonsense and financial speak so
we can get to the questions that are important to you.
As you know, nothing gets built without a set of plans,
(14:53):
and neither will you a financial future. My name is
Mike Marshall, President and CEO of Marshal Wealth Management and
creator of the Marshall Plan, a comprehensive, customized plan that
will help you answer important questions in all seven key areas.
You don't have to do it alone. There is no
cost or obligation. Call us at eight five seven three
four two ten thirty. That's eight five seven three four
(15:16):
two ten thirty. Well check us out online at Marshallwealth
dot com. Marshall with two l's Marshallwealth dot Com.
Speaker 10 (15:23):
Advisory services offered through Capital Analysts or Link Investment Registered
investment advisors. Securities offered through Lincoln Investment Broker Dealer member, Finra, SIPC,
Lincoln Investment dot Com, Marshal Wealth Management and the above
firms are independent and not affiliated.
Speaker 8 (15:36):
Hi everybody, I'm Kim Kerrigan.
Speaker 2 (15:38):
And I'm Joe Shortsley. If you want to be part
of the New England Business Report, sponsorships are still available.
Speaker 8 (15:45):
You can email us at Any Business Radio at gmail
dot com.
Speaker 2 (15:50):
That's Any Business Radio all one word at gmail dot
com and we'll get your business on the show too.
And welcome back to the New England Business Support on
Sunday morning, October the nineteenth, Joe short Slieve. Here, we're
going to bring in the managing editor of the Boston
(16:12):
Business Journal right now, Don Seifer, to a regular visitor
to the program, and Don have a number of headlines
that we're going to talk about today. The first one
I wanted to start with is because you are a
Salem resident and talk about a little bit about haunted
happenings and but one point two million people that trapes
through your city this time of year. I know it's
(16:35):
a lot of fun up there and folks got to
kick out of it. But nonetheless, you send us a
story and the headline on the BBJ is Salem's October
Club harnesses tourism surge to feed residents. What's this done.
Speaker 5 (16:51):
Yeah, I mean everybody knows Salem is like the destination
for Halloween. It actually starts in September, now, I mean,
you know, the traffic started to get that in September.
For the past few years, it's gone on in October.
Speaker 4 (17:03):
You know.
Speaker 5 (17:04):
It makes it so that, you know, on weekend it's
tough to go to the grocery store or anything for
people who live here. But but uh, this October Club
is a project started by the Salem Pantry three years ago.
I think it's the third year. And what it is
is it's an intense kind of harness the like all
of this tourism surge that really kind of is the
(17:25):
lifeblood of the of the tour tourism industry or Salem
try to harness that to uh, to give donations to
the Salem Pantry. You know, a lot of people come
to Salem. They might not realize that Salem is, you know,
considered a gateway city. It's got more people below the
poverty line than than the state's average. And uh, and
actually one in five residents here used the Salem Pantry.
(17:47):
So this October club is something where small businesses like
the gift shops and Salem Cinema as part of it.
They all kind of sign up to to give part
of their proceeds from the bund of October to the
Salem Pantry. But sometimes they you know, they have a
specific product that they're selling and they say, you know,
we'll give a dollar from this from each sales of
(18:08):
this product, you know, at the end of the month.
So it's you know, it's raised thirty six thousand dollars
in the last couple of years, and this year we've
got more businesses doing it than than in past years.
I think there are thirty six businesses in total versus
I think twenty two last year, so kind of a
fast growth.
Speaker 2 (18:25):
Yeah, tell us a little bit. Donald Seifert's our guest
manager and get it of the Boston Business Journal in
Salem resident, What is it like to live there during
the month of October and haunted happening?
Speaker 5 (18:34):
Yeah, I mean it's you know, I've got I've got
a twelve year old kid, so she loved it, you know,
I mean it's kind of a weird place to grow up.
I think for people that, like, you know, the Halloween
is such a big deal part of the year, but
I mean it's you know, it's fun. I mean, you know,
people around here obviously it is a little bit of
a pain to try to get around on weekends, but
(18:55):
you know, especially when it's nice weather out, there's a
lot of fasts. I have to say, this year, it
seems like there's less people driving maybe than there has
been in past years. I mean, there's been a big
push to tell people, you know, please take the commuter
rail up here, don't drive because there's not that many
places art. It seems like maybe some of that is
sunk in because there's not as many people driving, although
there's a lot of people walking around and crossing the streets.
(19:18):
So it's a overall I think, you know, I like
living here this time of year as much as it's.
Speaker 2 (19:24):
A halfle all right, Well that's good to hear. All right,
let's move on to some of the other headlines on
the BBJ this week. This one has to do with
a well, the headline is it's a story written by
your reporter Isabelle Harte. The headline is a viral bagel
pop up opens brick and mortar shop. And so what
(19:47):
is this viral bagel pop up? Tell us about them?
Speaker 5 (19:51):
Yeah, it's a It's a place that started as a
pop up in the South End called Brick Street Bagels.
I guess a couple of years ago they started to
do pop ups in the are area and there would
be big, long lines coming out down the street for
people to just get a bag of bagels at a
tub of cream cheese. That's all they had. But apparently
the bagel I haven't had them personally, but apparently the
(20:12):
bagels are very good. So they kind of got a
cult following, and so finally they are opening their own
their own you know, brick and mortar store at three
seventy one West Broadway, and you know, in addition to bagels,
they're selling breakfast sandwiches and you know the other stuff.
The guy named Jordan Renault, and he actually crowdfunded in
(20:34):
order to raise the money for He was able to
raise forty five thousand dollars in donations, which he will
pay back in free bagels. See who donated to them.
Speaker 2 (20:45):
I mean that in and of itself is a wild
business story.
Speaker 5 (20:49):
It is. It sounds like it's a lot of bagels.
Speaker 2 (20:52):
It certainly does. I mean, you know, talk about they're
just standing a line for bagels and cream cheese and
it was nothing else. Okay, So but the success continues
for them.
Speaker 3 (21:01):
Yeah.
Speaker 5 (21:01):
Yeah. They opened I think a little more than a
week ago, and so far it sounds like they're doing
very well.
Speaker 2 (21:07):
All right, all right, another headline on the on the
BBJ this week, a story written by your reporter there,
Grant Welker. Downtown Boston office building headed to the auction block. Okay, well,
what what? What?
Speaker 5 (21:22):
What's this address is a It's a five story office
building right near South Station, the ninety nine Bedford Street.
It's also known as the Bedford Building, big old brick building.
It's got a clock on top, and it's it's and
it's going to be auctioned off. So what What's notable
I think about this story is that you know, this
(21:44):
auction is going to happen on November fifth, and it
will probably be kind of watched as yet another indicator
of office values in the city. The interesting thing is
right next door, One Lincoln is a thirty sixth story
tower and it was auctioned off just in March, and
it was sold for four hundred million dollars when it
(22:05):
was when it was refinanced just two and a half
years earlier and valued at a billion dollars. So took
a big hit this one. I don't know what the
actually the property was assessed to twenty two million, so
much you know, much smaller, but still as you know that, well,
we'll see how much a buyer lines up to pay
for this building and if it's you know, significantly less
(22:27):
than that amount. As the office space throughout the city
just continues to struggle.
Speaker 2 (22:31):
Yeah, well let's talk a little bit about that. Continuing
to struggle there at the BBJ. What is the health
of downtown office space at this point?
Speaker 11 (22:38):
Now?
Speaker 5 (22:40):
I mean it's getting better. We actually did a story
recently that that in Q three it did get a
little bit better. But you know, overall, you know, hybrid
work has has really you know, hurt the office office
space industry, the real estate industry in downtown Boston for
several years basically ever since COVID it has never recovered.
(23:01):
You know, office space is still valued at less than
it was pre pandemic, and that's really causing a lot
of companies to struggle with, you know, how to fill
their space. And the values of those buildings are really plummeted.
Speaker 2 (23:16):
Yeah, but where are we on that curve? Don w
Are we still flat? Are we going still going the
wrong direction? Or a we started to the right direction.
Speaker 5 (23:22):
Starting to turn up a little bit. I mean, you know,
companies are starting to or not starting to, but they're
continuing to pull more employees back into the office. I
think we talked about this a couple of months ago
that you know, some that a lot more companies vowed
that they were going to be cracking down a little
bit more in September October on the rules. You know,
(23:45):
I think there's it's not an upswing, but it's definitely
not recovered to where it was in twenty nineteen by
any means.
Speaker 2 (23:51):
All Right, talking with a Don Seifert, managing into the
Boston Business Journal And one more headline on the BBJ
this week, a story written by Hannah Green Bristol Myers
Squab buys Cambridge Biotech for one point five billion. What
happened here?
Speaker 5 (24:07):
Yeah, this is a I mean, it's probably a biotech
that people most people hadn't heard of. It's orbital Therapeutics.
It's a spin out from a company that people may
have heard of Beam Therapeutics, which is which was actually
started by feng Jiang I think his name. He was
one of the inventors of crisp crisper technology. But so
(24:29):
Orbital Therapeutics went out I think in twenty twenty two,
and they're working on different genetic medicines for autoimmune diseases.
But the fact that they were built are bought by
Bristol Myers, you know, a big pharma giant. It's kind
of good news for the industry. I think one of
the one of the interesting lines in a handed story
was that there were dollar wise, there was more biotech
(24:52):
acquisitions just in the month of July than there was
in the entire first half of the year. So it
looks like M and A is picking up in the
biotech industry, which is also going to struggle.
Speaker 2 (25:03):
All right, he's Don Seiffert. He's the managing editor of
the Boston Business Journal. I appreciate you joining us this
Sunday morning on the New England Business Report. And a
little later in the program, we're going to talk about
well chocolate peanut butter cups. You don't want to miss that, right.
Speaker 1 (25:22):
Kim and Joe will explore more business news that impacts
our New England economy when they return Balling love.
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Are you a brother or sister of one of Greater
Boston's local trade unions and finally thinking about getting ready
to hang up your tools after thirty five years of
working your tailoff. Congratulations, you worked hard to build you
a retirement nest egg. But now what Let me help
you break through the nonsense and financial speak so we
can get to the questions that are important to you.
As you know, nothing gets built without a set of plans,
(26:49):
and neither will you a financial future. My name is
Mike Marshall, President and CEO of Marshal Wealth Management and
creator of the Marshall Plan, a comprehensive customized plan that'll
help you answer important questions in all seven key areas.
You don't have to do it alone. There is no
cost or obligation. Call us at eight five seven three
four to two ten thirty. That's eight five seven three
(27:12):
four two ten thirty. We'll check us out online at
Marshallwealth dot Com Marshall with two l's Marshallwealth dot Com.
Speaker 10 (27:19):
Advisory services offered through Capital Analysts or LINCL Investment Registered
Investment Advisors. Securities offered through Lincoln Investment Broker Dealer Member
fin SIPC. Lincoln Investment dot Com, Marshall Wealth Management and
the above firms are independent and not affiliated.
Speaker 2 (27:32):
And welcome back to the NEWELA Business Report on this
Sunday morning, October the nineteenth, Joe Shortzieve here Kim Kerrigan
joining the Day Off. This is a spot in the
program where we talk about other business headlines that caught
our attention. This certainly got my attention. This one's all
kinds of media services across the country picked it up.
But this is the one I saw on the Boston Globe.
Average price. Yeah, average price of a new car tops
(27:55):
fifty thousand dollars for the first time Kelly Bluebook report.
As talk about sticker shock, right, I was thinking about this,
going what did I pay for my last car? And
I was like, oh, yeah, well that was yeah, yeah, yeah,
getting close to that number. So the average new vehicle
manufacturer suggested retail price aka the asking price, according to
(28:19):
The Globe, in an article written by Emily Sweeney, reached
a new high of fifty two thousand, one hundred and
eighty three dollars. Interestingly so though they say part of
this has to do with this whole pushed by electric
vehicles before the federal tax credit expired. So some four
(28:40):
hundred and thirty seven thousand electric vehicles were sold in
the third quarter of twenty twenty five as America's rushed
to take advantage of the federal ev tax credit before
it expired last month. So I mean there is sort
of a reason behind it. And eat. You know, electric
vehicles are more expensive, so I guess the question is
those that fifty thousand figure. We'll let hold as we
move into the final quarter of the year here and
(29:02):
then we're going to talk a little bit about another
story written by John Custer in the Boston Glove headline
being after Applegreen pullout, mass Dot decides to put controversial
service plaza contract back out to bid. Global Partners had
hoped to take over after initially losing the competition, but
no such luck, mass mass Dot saying no, no, We're
(29:23):
going to go back to the marketplace and try to
find somebody else to oversee the redevelopment of these service
plazas across the state. All right, Another story that caught
my attention and I'm sure yours as well, and has
to do with Proposition two and a half. Now, we've
talked about Proposition two and a half for decades, right,
and of course, you know, cities and towns never liked it.
(29:45):
But all of a sudden, it seems like the screaming
is getting worse at this point, and they're really upset,
and let's bring in Colin young If, of course, is
a regular visit of the program. He is the deputy
editor of the State House News Service, all around a
great guy and knows what's going on up there on
Beacon Hill, and he says things are starting to happen
up there on Beacon Hill. Colin, what's going on with
(30:07):
cities and towns? They want more from the commonwealth because
they're saying that, well, anyway, you tell us what's going
on with this proposition two and a half cry we're hearing.
Speaker 12 (30:17):
Yeah, thanks for having me, Joe. The story we're hearing
from municipalities is really sort of a mirror image of
the same story we're seeing at the state level. Right
the state is saying, hey, the federal government is changing
some approaches to funding, and we're now not getting the
state now is not getting enough help from the federal government.
(30:39):
And now we're hearing the same from municipalities. They're saying, hey,
the state isn't kicking down enough to us, and we're
really starting.
Speaker 13 (30:47):
To feel the squeeze.
Speaker 12 (30:49):
And of course municipalities say they're the ones who are
are closest to the residents closest to their constituents.
Speaker 13 (30:57):
They're the ones who deal with the potholes.
Speaker 12 (30:59):
Getting kids to school, all of those things that affect
people's daily lives. But over about the last two decades,
unrestricted local aid from the state to municipalities, adjusted for insallation,
is down twenty five percent. And the real problem here
is Proposition two and a half limits how much taxes
(31:22):
a city or town can raise. So they're really starting
to feel the squeeze, getting less from the state but
not having an ability to raise more revenue from their residents.
Speaker 2 (31:33):
Okay, so that's the problem. So what's the solution.
Speaker 12 (31:38):
Well, some municipalities feel the solution lies with Proposition two
and a half, which you mentioned, Joe, that right now
caps property tax increases at two and a half percent
per year. Cities in some cities and towns think that
just simply is too low of a cap, that that
constrains them far too much, and there's been some rumbling
(32:02):
you know, that maybe Proposition two and a half ought
to be something more like proposition three and a half,
proposition four, whatever the number might be.
Speaker 2 (32:10):
Well, good good luck sell on that to folks, you know,
I mean, because every time they bring up this issue.
Most in the cities and towns seem to love it.
I don't know if they equate what's being lost or
not exactly.
Speaker 12 (32:21):
It's one thing for municipal leaders to say, you know,
we want the ability to raise more revenue, Well, you
have to get that revenue from people.
Speaker 13 (32:30):
You know.
Speaker 12 (32:31):
And it's the residents of cities and towns that are
really feeling the pinch and saying, wait, I can't pay
any more in taxes. I'm already getting hammered here. That's
why cities and towns have such a hard time with
these overrides. When they do try to override Proposition two
and a half, it's a brutal fight in every city
(32:51):
in town where it takes place. But that's becoming more
and more regular for cities and towns.
Speaker 2 (32:58):
All right, well, what's going on in these cities in
town that's being lost? I mean, do you have any
examples of Okay, because of this situation we're in, we've lost.
Speaker 12 (33:07):
What Well, you know, the cities in town say that
when they have to cut, the places they're forced to
cut are their police force, their fire force, the number
of teachers they have in the schools, the number of programs.
Speaker 13 (33:22):
The schools are able to offer.
Speaker 12 (33:25):
Cities in town say that at this point, for years
they have been trying to do more with less, and
that they have cut basically all of the fat from
their budgets, and that they have there's no place left
for them to cut that unless they are going to
start getting more aid from the state or have an
(33:45):
ability to raise more revenue on their own. The cuts
that are left are only the really painful ones. Firing teachers,
eliminating police patrols in some neighborhoods, that type of thing,
not paving the roads, you know, things that really affect
people's daily lives.
Speaker 2 (34:04):
Well, where's the fix. Is the fix on the state
level or is it the local level as well? Has
it happened to have to happen in both places.
Speaker 12 (34:12):
I don't see a way that this really gets resolved
without some kind of state action. You know, any change
to Proposition two and a half would require statewide action.
Governor Mara Heeley this summer or earlier this year, i
ought to say, refiled a bill that would give municipalities
(34:32):
the ability to opt in to raise some local taxes,
local meals taxes, local excise taxes. The municipalities love that
idea because they can bring in more revenue by charging
a higher meals tax or a higher excise tax. But
the state lawmakers up here on Beacon Hill are the
ones who would have to vote on that and vote
(34:54):
to give municipalities that authority. I don't think they're that
eager to take a vote that, even if not directly,
would allow for higher taxes, and especially not as we're
heading into an election year next year.
Speaker 2 (35:09):
Yeah. Yeah, Colin Young zag Gassi's the deputy editor there
at the State House News Service and knows pretty much
what's going on up there every day. Colin, another thing
you mentioned to me is we're preparing to have you
on the program today, is you wanted to talk a
little bit about higher offshore corporate taxes. I guess this
has been a loophole thats existed for a long time,
(35:30):
and what's going on there.
Speaker 12 (35:32):
The push here is to have the state pull in
a larger share of taxes from big multinational corporations that
often steer their profits overseas, sometimes in an effort to
dodge taxes here in the states. Right now, Massachusetts taxes
five percent of foreign profits and that's based on a
(35:54):
federal formula, and there's a push to raise that to
fifty percent in massive Chusetts, and proponents say that, look,
this is a way to raise a lot of revenue
for the state without affecting, you know, main street businesses,
without it being an increase on the businesses doing business
(36:14):
operating here in Massachusetts.
Speaker 2 (36:17):
So is there much opposition at this point?
Speaker 13 (36:21):
Right now?
Speaker 12 (36:21):
The opposition is.
Speaker 13 (36:24):
Forming.
Speaker 12 (36:25):
You know, there isn't anyone sort of rushing out to
be the voice of multinational corporations with the offshore tax havens.
But this is really getting wrapped up into what I
think is a larger debate over taxation generally in Massachusetts,
business competitiveness in Massachusetts, and just where the state gets
(36:51):
its revenues from. So I think this one will probably
get sort of wrapped.
Speaker 13 (36:56):
Up into that larger conversation.
Speaker 2 (36:58):
All right, you're following it, and of course we'd love
to hear more about it. He's Colin Young, he's a
deputy editor of the State House News Service. And we'll
have you back to tell us, well where they tax
us next? And you've heard us talk about it on
this program, and of course I think I mentioned it today.
Consider this ten thousand people every day, every day you're
turning sixty five in this country and moving towards retirement.
(37:22):
Of course, the phrase that they use is a silver
tsunami and who's right in the middle of it? But
that would be one Mike Marshall of Martial Wealth Management.
And Mike is a regular visitor with us here on
the program. He joins us this Sunday morning. Good morning
to you, Mike. So let's talk a little bit about well,
we're moving towards year end planning. Let's say I'm thinking
about retirement, thinking about hanging up the microphone in twenty
(37:44):
twenty six, what should I be doing?
Speaker 11 (37:46):
That's right, Joe and Kim. There are a thousands and
thousands of people that are entering that retirement ready phase
of their life, and at the end of every year,
they've got to take a look at the different retirement
and tax planning ategies that they need in order to
maximize their next stack. Right, So we always start with
number one, which would be to max out your retirement contribution.
(38:09):
So as you check your retirement accounts for twenty twenty five,
if you have a four oh one k just know
that you can contribute up to twenty three thousand dollars
in twenty twenty five, and then if you're fifty year
older Joe, there's a seventy five hundred dollars catchup contribution available,
So if you're over fifty, legitimately you can put away
(38:33):
thirty thousand, five hundred dollars in your IRA four oh
one K I'm sorry for your IRA. The limit is
going to be seventy seven thousand, which is up from
twenty twenty four, so seven thousand dollars contribution limit to
the IRA, and then one thousand dollars ketchup if you're
overage fifty, So even if you don't have a four
oh one K, you can still contribute eight thousand dollars
(38:56):
to your IRA in twenty twenty five, which, as you know,
contributions to four one ks and IRA is a double
tax deductible because you get to deduct them from the
income in the year that you make the contribution, and
then of course that investment grows tax deferred until retirement.
And putting it in early makes sense because you're going
(39:17):
to experience the eighth wonder of the world, which is
compound interest, and the nice thing about retirement counts contributions
is that those accounts get to grow compound interest on
the tax money as well, because you're getting the benefit
of leaving the taxes that are due in the account
instead of taking them out. So that's number one, and
(39:38):
then number two, if you've saved well, you should consider
a ROTH conversion. A ROTH conversion could you make these
these distributions in retirement that much better because they would
be tax free. So if you have an IRA, you
might want to consider transitioning it or converting it part
(39:58):
of it at least to a Roth eye. So the
deal is if you do that, you'll pay taxes on
the conversion amount now, but then all future withdrawals can
be tax free. And the other benefit about a ROTH
if you don't.
Speaker 5 (40:11):
Have a Roth ira to go with your regular IRA.
Speaker 11 (40:14):
Or your four oh one, is that rough iras don't
have a required minimum distribution later on in life. So
at seventy three, which is the RMD for regular iras,
rough iras do not have that date. And if you
want to convert, though, it's got to be done by
twelve thirty one of the year that you're converting, So
(40:35):
you've got a little bit of time to take a
look at whether or not a Roth conversion would benefit you.
Number three, we're going to take required minimum distributions Joe.
Every year. You know, if you're seventy three years old
or over, you must make sure you take your required
minimum distributions from your IRA, and if you don't, missing
an RMD or distribution once you're seventy three can result
(41:00):
in about a fifty percent penalty on the amount that
you were supposed to take. So I mean you're talking
about major, major penalties for missing a required minimum distribution.
And remember it's got to be done every year if
you're over seventy three. Even if you don't need the money, Joe,
you still have to take it out so that the
IRS can get the taxes on the money. So they
(41:23):
let you defer it for so long and then they
make you take it out to pay the tax.
Speaker 2 (41:28):
Okay, all right, So that's what you should do, right Mike.
We're talking with Mike Marshall, who's the founder and CEO
of Martial Wealth Management, and you're giving us the right
thing to do right now, I'm guessing not everybody's doing
the right thing. Well, what's the biggest mistake people make.
Let's say I turned sixty five in the past year.
What are the mistakes people are making.
Speaker 11 (41:47):
Well, the problem with turning sixty five is that if
you don't notify Medicare prior to that, about three months prior,
they're going to slap you with a little bit of
the penalty. So one of the things you must to
before you turn sixty five is you've got to notify
Medicare that you're turning sixty five in the next three
months or so. So that's a big one. And then
(42:09):
as far as folks looking at other potential tax and
retirement moves, year end, a lot of people like to
harvest their gains and losses. Joe, Well, what am I
talking about. Well, you may have some stocks or some
positions with a nice gain and you may have some
with a loss. Well, if you wanted to take the
advantage of cashing out and taking the gain, you would
(42:32):
want to sell something that's down so you can offset
the gain with a loss. It's called tax lost harvesting.
It's a great way to, you know, look at year
end strategies to reduce your overall exposure for taxes. The
other thing too, they can do is help savings accounts.
I don't know if you're familiar with them, but it's
a flexible spending account. You get to put the money
(42:55):
in and tax deduct it from your income in the
year that you put it in, and so that those
things can be triple tax advantage. Those health savings accounts.
The growth is tax free, and if you withdraw for
the medical expenses, that's also tax free, so it's almost
like a rough IRA for your medical needs. Number six.
(43:16):
I always call it a be strategic with charitable giving.
In other words, if you're inclined to be charitable, and
there's ways you can give to charity without incurring extra
capital gains taxes by maybe liquidating a position and then
writing a check to them. You can simply give the stock,
the advanced stock to them. It's appreciated, so when they
(43:39):
sell it as a tax pre organization, then they don't
have to pay the tax on it. But if you
sell it, you have to pay the tax and then
you can write them the check. So I always like
to be able to distribute the appreciated stock directly to
the charity that avoids the client from paying the capital.
Speaker 2 (43:55):
Gains and Mike Folks listening to this program. How do
they get in touch with you or your advisors?
Speaker 11 (44:02):
Very simple. It all starts with just a quick communication,
whether it's a phone call, an email or a text.
Marshallwealth dot Com is the website. They can reach us
anytime at eight five seven three four two ten thirty.
That's eight five seven three four two ten thirty. Listen, Joe.
We're here to help people organize and guide them into
(44:23):
their retirement, and that's really what we focus on. So
if they don't call, it's very difficult to help. But
we are here and stand ready to do so.
Speaker 2 (44:32):
All right, All right, He's Mike Marshall, founder CEO of
Marshall Wealth Management, And like I say, they're busy these days.
So get in line and hold your hand up and say, hey,
I need some help with my retirement. Up next, we
get to talk about well, one of my favorite things now,
that'd be chocolate peanut butter cups. Did you guess that?
Chocolate peanut butter cops And a company called CB Stuffer
(44:56):
and they're doing business in the swampscott now, but they're
not they're not a brick and mortar. It's all online.
So you'll hear a lot more about it than just
a moment.
Speaker 1 (45:08):
You are listening to the New England Business Report on
the Voice of Boston w RKO six, Aby, Joe and
Kim will be right.
Speaker 7 (45:16):
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Speaker 9 (46:18):
Are you a brother or sister of one of Greater
Boston's local trade unions and finally thinking about getting ready
to hang up your tools after thirty five years of
working your tailoff. Congratulations, you worked hard to build your
retirement nest egg. But now what? Let me help you
break through the nonsense and financial speak so we can
get to the questions that are important to you. As
you know, nothing gets built without a set of plans,
(46:39):
and neither will your financial future. My name is Mike Marshall,
President and CEO of Marshall Wealth Management and creator of
the Marshall Plan, a comprehensive customized plan that will help
you answer important questions in all seven key areas. You
don't have to do it alone. There is no cost
or obligation. Call us at eight five seven three four
two ten thirty. That's eight five seven three four two
(47:02):
ten thirty. Well check us out online at Marshallwealth dot Com,
Marshall with two l's Marshallwealth dot Com.
Speaker 10 (47:09):
Advisory services offered to Capital analysts or Lincoln Investment Registered
Investment Advisors. Securities offered through Lincoln Investment Broker Dealer member FINRA, SIPC,
Lincoln Investment dot Com, Marshall Wealth Management and the above
firms are independent and not affiliated.
Speaker 8 (47:22):
Hi everybody, I'm Kim Kerrigan.
Speaker 2 (47:24):
And I'm Joe Shortsley. If you want to be part
of the New England Business Report, Sponsorships are still available.
Speaker 8 (47:30):
You can email us at any Business Radio at gmail
dot com.
Speaker 2 (47:35):
That's any Business Radio all one word at gmail dot
com and we'll get your business on the show too.
Speaker 1 (47:50):
The New England Business Report on w RKO is brought
to you in part by Subaru of New England. Subaru
of New England dot com.
Speaker 2 (48:05):
And welcome back to the New England Business Report on
this Sunday morning, October the nineteenth. Well, we couldn't let
the time go by without talking about peanut butter cups, right,
I mean I think that I think it is probably
my favorite candy. I mean, I don't know, and I'm
not a huge candy guy, but peanut gutter cups, I
don't know that having tough time staying away from them.
So we're going to talk about Cebee Stuffer. They are
(48:28):
a local company and we're going to talk with the owner,
Aaron Calvo Bacci, and tell us about Sebee Stuffer. They
sell well, chocolate pizza slices. I mean, I know, you
wake up and say where can I get a chocolate
pizza slice? Well, this is the place. And they used
to be brick and mortar, but then they went online.
But let's bring her on Erin and welcome to the program.
Speaker 4 (48:48):
Well, thank you so much, Joe, thank you for having me.
I am Aaron Calvo Bacci and yes you're Chrissa. I'm
the owner of Cebe Stuffer Bassie Chocolate Design and we
are makers of the large peanut butter cup in the
industry and the only available in fifteen plus flavors. And yes,
we do make chocolate pizzas and chocolate pizza slices as
(49:10):
well as gourmet bars. However, our most popular and top
selling items are our peanut butter cups.
Speaker 2 (49:18):
Of course, you got my attention there, Eron, Okay, take us,
take us through this business. How did it start? How
did this all come about?
Speaker 4 (49:27):
So you're right in saying we were a brick and
mortar So what happened? In two thousand and three My
husband thought it would be a wonderful idea to take
over an existing retail chocolate business called the Chocolate Truffle.
And at the time we had a two year old
and a one year old, and we took over the
(49:48):
week before Thanksgiving, which was the craziest time to ever
take over a business. And at that time the business
was reliant on many outside vendors, they didn't make the
product themselves, they were resellers. And my background is business development,
so I knew the way that we were going to
be successful and sustainable was to be the manufacturer. So
(50:13):
it took a few years, but in two thousand and
six we soft launched the wholesale division, and that was
primarily to support our retail store, which then grew to
three stores before launching into selling wholesale to other specialty stores.
And then something happens called the financial crash, and it
(50:37):
just got to be too difficult to manage having the
retail brick and mortar, plus staff, plus inventory in the
wake of losing access to credit, so we made some
very difficult decisions. We actually sold our family home to
keep from filing bankruptcy. We sold our home to put
(50:59):
the money back into business and decided to just write
it out in a At that time, it was a
two bedroom apartment, but we have since taken over that
building and we have four bedrooms now, thank goodness, and
we just continue to grow. And then in two thousand
and fifteen, I made the decision to sell off the
(51:20):
brick and mortar the Chocolate trustle and to rebrand to
see thee suffer and to continue selling and growing the
wholesale division, which we have been really doing well with. Unprtuately,
COVID kept us from being able to exhibit a trade shows.
So I really do feel like since twenty twenty, I
(51:43):
have been pivoting continuously to reevaluate the brands, but we're
still growing strong. So I'm very thankful that people are
your peanut butter cups.
Speaker 2 (51:54):
So your only way to get these peanut butter cups
is online right now?
Speaker 4 (51:57):
Correct, Well, so now you can get them in specialty
stores that we sell across to in fifty states, but
then your best is always to contact us directly at
cbsuffer dot com. And we manufacture in swampscot mass so
we are available. If people wanted to place an order,
they could come and pick up.
Speaker 2 (52:17):
All right, Well, tell us about the traffic on the
cbstuffer dot com and who's your customer.
Speaker 4 (52:23):
So what's interesting, because we do sell wholesale, we have
discovered we have a wholesale account that has been supplying
TikTok businesses, which was unbeknounced to us. So our product
has gone viral on TikTok and because of that, it
has pushed people back directly to our site at cbe
(52:45):
suffer dot com, and we are seeing people who are
ordering a single peanut butter cuff and having it shipped
all the way to California, or they're ordering multiples at
a time. So what's really wonderful is we have a
tremendous following of repeat customers are buying direct at phebe
(53:06):
suffer dot com. But right now with Halloween, we have
a newer account in Salem Math Whimsy, and last year
we the novelty items such as are Halloween Pizza slice,
the mini slice. We get maybe a few orders here
and there. Because of her and her location in Salem Math,
(53:30):
she has tripled our sales of the Halloween Mini Pizza slice.
Speaker 2 (53:39):
Wow, tell us about sales? I mean, how many peanut
buttercups besa slices? How do you how do you quantify it?
Speaker 4 (53:46):
So we are shipping out thousands of peanut buttercups a week? Yeah,
I mean, but the thing is, I guess we're but
we're keeping that in mind. We're still in sited small
because when you have the major players that are out there,
they're probably shipping out thousands a day. But for a smaller,
(54:08):
independently owned business. We're still holding our own with shipping
and handling, the logistics as well as the tariffs our
chocolate prices. Chocolate has doubled for us.
Speaker 2 (54:24):
Yeah, go ahead, yes.
Speaker 4 (54:26):
Yeah, so it's it's it has created its own challenges,
but I'm thankful that we do make a quality product
and people are still buying it.
Speaker 2 (54:35):
All right, Well, let's talk a little bit about the buyer.
How do they get in touch with the CBE stuff
or how do they pick out this pizza slice? Tell
our listeners how they do that.
Speaker 4 (54:45):
So the listeners want to go to cbstuffer dot com
and for your listeners, let them know, put in halftag,
get stuffed and they will receive twenty percent off their order.
And we ship out of Swampscott, Massachusetts. If it is
going to a warm area, we do have to ship
(55:05):
in a pooler with ice, so it will be a
little more expensive. But anyone can find us over at
CBE suffer dot com.
Speaker 2 (55:12):
Okay, and what's an average order?
Speaker 4 (55:14):
Oh so, an average retail order. It's going to sound crazy,
but it's about a dozen peanut butter cups.
Speaker 2 (55:22):
Okay, all right, And what we'll like.
Speaker 4 (55:25):
That's what people.
Speaker 5 (55:26):
That's that.
Speaker 4 (55:26):
But we're very happy to work with the person who
wants to treat and wants to buy themselves a single
peanut butter cup.
Speaker 2 (55:33):
And is October the month for your company or is
it Christmas? Or what is the month that the sales
are really popping?
Speaker 4 (55:41):
You know what's been interesting is there We're we're busy
year round now because what we found is we have
accounts in Alaska, so they're gearing up. They start from
May to September, and then we're in the midst of
all the thes and a cider type stores, farm stores
(56:03):
that make their money on pumpkins, and then we will
go right into the fourth quarter for any of the
specialty gift stores.
Speaker 2 (56:13):
Well, we wish you good luck here on the New
England Business Support, you say, ol Aaron Calvo, Bucky and
of course the company is cbstuffer dot com. All right,
well that's all the time we have here on the
New England Business Report on this Sunday morning. Kim Kerrigan,
you know what, I'm going to get her back to work. Okay, Now,
we'll get her back here and get her back here
(56:33):
for next Sunday because we'll be discussing all the business
headlines as we move closer to Halloween. Joe Shortzlee, thanks
for joining us. I'm the New England Business Report.
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