Episode Transcript
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Speaker 1 (00:07):
Good morning, and welcome to Let's Talk Money on a TENWGY.
I want to first start off by thanking you for
tuning in this morning and making us a part of
your weekend. I'm John Malay and I'm going to be
your host for this morning's edition of Let's Talk Money.
I'm a certified public accountant and the chief financial officer,
(00:28):
chief operating officer, and a wealth advisor at Bouchet Financial Group.
Joining me this morning is my co host, Scott Strohecker.
Scott is a wealth advisor at the firm. Scott is
a certified financial planner and an enrolled agent and a
key member of our tax team. Scott works with our
(00:48):
clients not only doing invaluable tax planning, but also we
do a little bit of tax preparation, so Scott'll be
here for any questions tax related. Scott, I want to
thank you for joining this morning.
Speaker 2 (01:01):
Thanks Sean. It's a pleasure to be on with everybody
this morning. Feeling good, ready for a great show, you know,
despite losing that hour of sleep last.
Speaker 1 (01:10):
Night, absolutely absolutely here. Hopefully everybody is adjusted to daylight
savings and move their clocks forward. Sunday morning, all we
surprises folks. So hopefully everybody's adjusted their time and is
tuning in with us this morning. And you know, one
of the things I want to mention about Scott. Scott
also in our firm, has the reputation he's the cold
(01:33):
plunge guy. So not only has he participated in several
community cold plunge events, he has also helped orchestrate a
little bit of an employee initiative. We did a little
fundraising initiative where employees were challenged to participate in a
cold plunge for a week and I was one of
those who participated. I am not an adoctor. I did
(01:56):
not love it. I did do it. But Scott is
a big propose own it. Scott, what is the benefits?
Why should we be doing cold plunges.
Speaker 2 (02:05):
There's a bunch of different research out there, but you know,
it really ranges from improving metabolism, reduced inflammation, can enhance
your mood. Also it will help with multiple recovery, but
also even just overall alertness. So you know, I would
challenge anybody that's feeling a little flow this morning, you know,
(02:27):
maybe just try doing a cold shower this morning and
see how your alertness is and you'll probably be ready
for the day.
Speaker 1 (02:36):
Perfect. Perfect. There you go. So that's our health and
wellness segment of the morning. So, you know, Scott and
I appreciate you tuning in with this this morning. You know,
we're here to answer your questions. You know, we're going
to a lot to talk about this morning. We're going
to talk about the latest in the markets, some investment strategies,
but also you know here we are a little bit
(02:57):
more than a month away from tax filing date, so
Scott will certainly be talking taxes and answering any questions
you have, so certainly encourage listeners to call in with
those questions. You can reach us at eight hundred talk WGY.
That's eight hundred eight two five five nine four nine.
And I will say in the questions you know, we
(03:19):
do say when it comes to your money, there there
is no dumb question, you know, and so any question
you have just reach out. I guarantee if you're thinking it,
some other listener is out there. And you know, sometimes
it's a it can be a little unnerving to have
to pick up the phone and make that call, but
trust me, will be will be kind, super kind to you.
(03:40):
And again no such thing as a dumb question, So
don't hesitate to reach out. So you know, we'll start
right out in the market. Just I mentioned, you know,
a lot to talk about. You know, this week started
with a bang. You know, on Monday, Presidents Trump had
his address to the Joint Session of Congress, and you know,
during that address, he discussed his plans to implement some
(04:03):
major policy changes. You know, in those policy changes including
you know, included some major areas you know, around trade
and tariffs, fiscal policies around taxes, government spending. He actually
mentioned getting to a balanced budget and obviously doje out
(04:23):
in front of that is certainly became has become kind
of the symbol of government, uh, you know, cutting out
government waste, getting to some more efficiency. Also, immigration policies
and foreign policies really you know, including the war in Ukraine,
are funding of NATO and really evaluating all of our
(04:46):
foreign aid. So you know, one the administration is doing
exactly what they said they were going to be doing
in the fall, which was jumping into these They said
they were going to act swift, and they are and
I think that's you know, what we're seeing is on
a broad front, they are moving quickly. And you know,
I just have to say, and you know, as a firm,
I'm not saying we agree or disagree with any one
(05:08):
of those administrative policies. That's not our job. Really. Our
job is to manage our clients' money, regardless of whether
it's a Republican or Democrat in house. And so you know,
and again, you know, Steve started this firm thirty five
years ago. We've got a proven track record of doing that,
of managing our clients' money regardless of the policies coming
(05:31):
out of the White House, including you know, regardless of
what's happening with the markets. You know, we've got a
proven track record in bull markets, bear markets, and everything
in between. So, but we have to deal with reality.
And the reality right now is the administration is moving
forward with a broad scope and at a quick pace,
(05:55):
and that is creating some uncertainty. There's no question about that.
You know. There's how exactly actually these policies will be
finalized and what their impact on the economy, both US economy,
global economy is yet to be unseen, and part of
what will be driven by you know, how ultimately the
(06:18):
details shakeout, and you know, when you you know, when
you look at each of the policies individually, and you
could definitely see the big picture merit, right, you know.
And I look at you know, his some of his
fiscal policies, right, Like, who would argue that getting to
a balanced budget isn't a good move?
Speaker 2 (06:39):
Right?
Speaker 1 (06:39):
You know, we've seen our national debt balloon to thirty
seven trillion dollars. We've seen the drag that the interest
obligation is having on our on our spending. Right, It's
it's we spend now more on interest than we do
on defense, right. And so the idea of getting to
(07:00):
more efficient government spending, who could argue with that? That
makes us getting into a balanced budget. Listen, As businesses,
we have to be fiscally sound. We can't just spend
without regard for the revenue we make. And the same
as individuals. I mean a big part of our financial
planning process, and Scott's the big part of is this.
You know, we're doing financial planning with a client. You know,
if a client is spending too much money based on
(07:23):
what they're either earning on their portfolio or earning through
their wages, their financial plan is going to go in
the tank and we've got to have that tough conversation.
And so certainly, you know, how this is implemented, right,
so a big picture makes sense. You know, let's get
some fiscal responsibility. How this is implemented, you know, we're
just gonna have to see. Certainly, it was only probably
(07:45):
two three weeks ago we saw images of Elon Musk,
who's heading up DOGE, you know, for cutting out some
government waste. We saw him at a rally with a chainsaw,
you know, talk about slashing prices. You know, now the
rhetoric has been toned down a little bit. Now it's
talking about President Trump is talking about using a scalpel,
right to more strategically cut costs. But we're seeing with
(08:09):
the administration. You know, one thing that Trump does is
he comes out and he's a salesman, right, and he's
making big splash. And so when he talked about you know,
cutting government waste, talk about in a big way. Now,
how it's ultimately implemented, We're just going to have to
wait and see. Certainly, you know, with the jobs report
that came out on Friday, we are seeing some you know,
(08:31):
I think there's a reduction of government jobs by about
ten thousand. We'll see more of that, you know, take
place in March, and how that ultimately impacts the job market,
you know, we'll yet to be seen, i will say,
and I'll talk more about it a little bit later
in this show. Is you know, the jobs report that
just came out, strong labor market and solid labor market,
(08:53):
so certainly, you know, in the February timeframe, no major
impact and you get just getting back to the Trump
administration's policies, you know, the same could be say, you know,
said with the trade and tariff policy, and certainly that
is getting a lot of airtime right now, and it
(09:13):
is creating a lot of confusion within our markets. You know,
seems to be an on again, off again approach. But again,
if you look at the core, one of the primary
benefits of that, and there are several benefits, but you know,
one of the objectives uh being sought is to bring
factories and jobs back to the US. Right And again
(09:34):
that makes sense, right, you know, as strong US economy
is dependent on you know, growing jobs, so bring factories
back is a good uh. Certainly is a good objective
and would be good for the US economy. And similarly,
we've seen some bold announcements we've seen, then some delays
(09:54):
and then some carve outs. Uh. So ultimately how those
tariffs will be minute and ultimately what that impact will be,
you know, we'll we'll just have to see. And I
think we're seeing the markets, uh, you know, react to
some of that uncertainty. Even on Friday, FED Chairman Jerome Powell, uh,
you know, spoke about tariffs, and you know, really fed's
(10:17):
taking a wait and see approach. You know, there's a
potential that some of the tariffs could be inflationary, but
it's not a foregone conclusion. You know, part of it's
definitely gonna depend on how it's implemented and then how
those ultimately how those cost increases are dealt with. So
but one thing that we know is, you know, on
(10:39):
a several broad fronts all happening at once with great speed,
it's creating uncertainty. And what do we know about the markets?
Markets don't like uncertainty and uh and we saw that
this week for sure, and you know, as investors, you know,
we've got to look through that. We've got to be
able to cut through the noise and see, you know,
what is noise level and what is systemic issues that
(11:02):
we need to deal with. So we'll be talking about
that a bit. And so just to you know, encourage listeners,
if you have questions, we're here for you, So reach
out to US eight hundred talk WGY. That's eight hundred
eight two five five nine four nine. So markets this week,
you know, as I mentioned, you know, volatile week. You know,
definitely UH saw several ups and down even even Friday,
(11:26):
you know, you know, closed out the week really posting
the worst weeks since September. UH and Friday itself was
a very volatile day. You know, Dow was falling more
than five four hundred points at one point, both the
s and P five hundred, Nasdaq were down more than
one percent at the worst point of the day. But
despite of that, you know, they finished all indexes finished
(11:48):
Friday in the positive. However they did, they did not
you know, really a losing week. So you know, the
SMP was down three point one percent for the week,
NASDAC was down three point four or five percent for
the week, and the Dow two point three seven down
two point three seven for the week. So certainly all
(12:10):
the indexes down, and it was volatile week, ups and downs,
and we saw several days where we saw, you know,
the index is moving either in a positive negative direction
and then major changes you know at the end of
the day. So certainly a down week. And you know,
as you look at some of the you know sectors,
(12:32):
you know, for the week, almost every sector other than
healthcare down, you know, year to date, you know you
are seeing you know, really you know, tech and consumer discretionary,
things that you would expect to be hit hard have
been hit hard. You know, financials all the way up
to healthcare have been positive year to date. But you know,
(12:54):
there's no question is we're seeing you know, twenty twenty three,
twenty twenty for definitely heavy growth years, right and we
saw growth stocks, reward us particularly. We talked about the
mag seven. You know, now it's concerned about you know,
where where are we in a growth perspective? And remember,
(13:14):
you know, when we look at our GDP, you know,
consumer confidence, consumer spending makes up such a huge part
of that. Consumer spending makes up seventy percent of our GDP.
So we look and say, you know, consumers are you
know a little bit nervous right now? Is we're seeing
you know, the uh seeing some of the headlines from
(13:36):
coming out of the Trump administration. How are these changes
going to be implemented? How is that going to impact me?
That that affects consumers, right, and we know, you know,
consumer staples, things that we have to buy, right though,
that sector is you know, is still doing good year
to date, you know, up up over almost five and
a half percent year to date, right, those those are
(13:58):
those things that we as consumers, we just have to
keep spending consumer discretionary right where where we can in
their discretionary purchases. That consumer is showing that they're they're
a little little nervous, right, and so spending is down there.
So as a consumer, spending goes down, and part of
that's driven by just feelings, right, you know, just by
natural feelings about what I expectations for the rest of
(14:20):
the year. But as we look at GDP also, you know,
government spending a big important component of that. Now, again,
consumer spending makes up lie and share, but you know,
government spending. We're hearing government, you know, Trump being very
clear is that government spending is going to come down,
you know, and they're going to be more efficient, They're
going to reduce the workforce, they're gonna you know, cut
(14:44):
down spending. So that creates a little uncertainty from a
growth perspective. And you know, we're seeing businesses, we are
hearing about some you know large you know investments happening,
you know, particularly in the tech at AI space. But
you're also starting to hear companies hold back a little
bit on capital investment, kind of taking a wait and
(15:04):
see approach. So all of that, you know, just creating
a little bit of noise and uncertainty about you know,
what kind of growth we're going to be seeing this year.
Are we going to continue seeing two plus percent growth
in GDP or are we going to see a bit
of a slowdown. So certainly some of the uncertainty.
Speaker 3 (15:21):
Uh.
Speaker 1 (15:22):
But again, you know, we have a day like Friday
where yeah, we've got some of the headline noise, but
then we have you know, Broadcom come out and you know,
release earnings and they beat expectations, you know, their revenue,
you know, above expectations, their guidance for the next quarter
(15:42):
above expectations, and they're rewarded for nine you know, by
a nine percent increase of Uh. Broadcom stock went up
nine percent on Friday, So again it's as an investor,
we need to cut through the noise and really, you know,
what is it we need to worry about and not
to overreact. And certainly, you know, the volatility in the
(16:05):
markets can create some you know, psychological fear, right. You know,
as as investors, sometimes we want to avoid losses more
than we want to focus on gains, right, and so
certainly this type of volatility, there's things to be you know,
look at with your portfolio. There's no question as an
(16:25):
investor there are things you can do, and you know, primarily,
you know, one thing we say to our clients all
the times is don't panic, right. You know, we're in
this stock market for a reason. There is there is
some volatility in the market. We do know on an
average year, right, you can have a fourteen to fifteen
(16:46):
we're going to on average year, you're going to see
a fourteen to fifteen percent draw down from the peak
of the market to the low part of the market.
And that's an average year right now. The last two years,
you know, we've been spared that type of fluctuation, but
it can happen. So one we say is it's just
don't panic, right, and you really cut through the noise,
(17:06):
and it's a good time when there's market volatilis just
get back to basics, right and there's you know, doesn't
mean you put your head in the sand, right and
say I'm just not going to pay attention, but it's like,
don't don't overreact, and you know, get back to basics.
And you know, some of the basics you can do
is you know, look at your overall asset allocation, you know,
(17:27):
your mix of stocks, bonds, cash, make sure that's appropriate
for your investment time horizon and also your risk tolerance.
And you know, so that's important to do. It's a
good time, you know, as we're you know, still relatively
early in the year March early March, we're seeing some
volatility go through. Do you you know, is your asset
(17:49):
allocation appropriate right for your time horizon and your risk tolerance. Also,
it's a good time to you know, rebalance your portfolio
if it's needed. You know, remember we just had too
you know, back to back years of heavy growth in
tech you know, s to be up over twenty percent
both of those years. You know, if you've haven't adjusted
(18:10):
your portfolio, you may find that your you know, your
your your asset mix, right, is out of balance a
little bit, and that can be just the natural what's
happened in the markets. Right, So it's a good time. Uh.
You know, this is something you know, for our clients.
You know, we did at the last end of last year.
You know, we had such a growth in tech, we rebalanced,
(18:34):
you know, we we made some moves into some defensive holdings,
you know, seeing what some of the possibilities were for
this year. So you can do a similar you know,
things like you know what some of the defensive holdings
we've moved into. You know, Schwab as a US dividend
equity ETF shd Uh, that's been a great holding for us.
(18:57):
And again it's it's it's that particular ETF. It holds
you know, one hundred stocks that have paid dividends for
the for at least ten consecutive years. But more importantly,
they're also show the health that they're going to continue that, right,
and that particular holding is up over four percent this year.
So again, if you're looking at your your portfolio, and
(19:19):
if you're looking maybe you know tech has gotten too
heavy in your portfolio because of just the natural run up,
you may want to look at you know, rebalancing and
taking some of that, you know, those tech gains moving
into some more defensive measures. So in addition to SHD,
you know, one of the other holdings that we've had
(19:41):
success with is DUHP, which is a dimensional US high
profitability ETF. And again, you know, up almost you know,
over one and a half percent for the year, again
going to more defensive stands. And again we're not saying
make wholesale change is right, it is. It's about just
(20:02):
rebalancing and making sure that that your asset mix right.
How you're if you've decided you looked at your you know,
your overall asset allocation. If you decide, hey, sixty eighty
percent should be in equities. Within those equities, you want
to make sure they're well diversified, right. And if you feel,
as you look back and saying, hey, just based on
(20:24):
the natural growth, that maybe you're too tech heavy or
maybe you're too focused in one area, it's okay to
rebalance and it's a good time to look at that.
It's also a good time to look at your cash,
you know. And and when I say cash, it might
be investing in money funds, you know, which you know,
based on where interest rates are right now, still yielding
good rates, still you know, yielding north of four percent.
(20:48):
But if it might make sense for you to, you know,
make sure you know you you're appropriately invested in cash.
And again I certainly would not recommend, you know, moving
to an all cash right and that can be a
knee jerk reaction when you see some volatility, but think
about how hard it is to market time getting it
(21:09):
right going in and then you have to get it
right going back out. But that doesn't mean you're not
you know, A very normal part is looking of you know,
reevaluating your portfolio, is looking at your cash flow needs.
And if you decide that, you know, you may need
to pull some money out of your portfolio, certainly in
(21:29):
the next you know, twelve to twenty four months, it'd
be proven to set that side into a cash cash equivalent,
you know, not into pure cash, but maybe into a
money fund where really no principal risk, but you're still
earning a yield. So and these are the you know,
it's a good time to really reevaluate. And and again,
(21:53):
more than anything, don't panic you know, volatility, you know,
it can also be our friend. Right, if you've got
cash on the sidelines. You know, if we do see
it pullback a further pullback this year. You know, also
get a value is a good time to put that
cash to work, buying at a discount. So we do know,
(22:13):
you know, history is shown. You can you know, look
at one hundred years worth of data, eighty years worth
of data, fifty years worth of data. It behooves us
to stay invested in the markets, right the stocks on
average will return and reward us for staying invested. It's
(22:35):
very hard to market time, and you know, I know
there can be a psychological you know kind of drive
sometimes to again avoid loss. Again, we would just recommend
that you know, kind of try to cut through the noise,
take a approach of really looking at your portfolio and making
(22:55):
sure you're in a good position. So going on in
the markets and you know, covered a big recap. Certainly,
if I have questions and any specific questions, don't hesitate
to reach out. Scott and I are here. You can
courage listeners. You can call us at eight hundred talk WGY.
That's eight hundred eight two five five nine four nine.
(23:18):
We're going to be taking a break shortly. When we
come back, We're gonna just recap, you know, recap the
market news, and then we get into a little bit
of tax conversation. You know, we're close to tax filing time,
so Scott's here to answer some of those questions. So
we appreciate you tuning in with us today. Hope you
will stay with us through the break. Again, courage listeners
(23:38):
call in with questions. You are listening to Let's Talk Money,
brought to you by Bouchet Financial Group, where we help
our clients prioritize their health while we manage their wealth
for life. Again, thank you for tuning in. Hope you
stay with us through the break. Well, good morning, and
(24:04):
thank you for staying with us through that short commercial break.
I hope everyone is adjusting to daylight savings time. It
has moved their clocks forward, although with most of us
using iPhones or other digital Wi Fi connected device, most
of us don't you have to do anything. We just
wake up and all the time is adjusted. Except for that,
(24:26):
there's always that you know clock that's either on the
microwave or the oven that is usually wrong for the
next couple of weeks until we go and fix it.
So appreciate you tuning in with this morning. I am
John Malay. I am a certified public accountant. I'm the
chief financial officer, chief operating officer, a wealth advisor at
the firm, and I am joined this morning by my
(24:47):
colleague Scott Strohecker. You know, I'll just finished wrapping up
you know, market segment, and then Scott's going to get
into you know, with us being getting closer and closer
to tax filing time, Scott's gonna cover or some tax
topics and certainly we are here to answer any questions
you have and you can reach us at eight hundred
(25:08):
talk WGY. That's eight hundred eight two five five nine
four nine. So just wrapping up, you know, so you know, markets,
US markets down for the week, and you know this
is not a time to panic, and I you know,
just be blunt here at a time where there is
some volatiley and there's some uncertainty. Right, It's it's about
(25:30):
how are Trump's President Trump's policies going to be implemented,
how are they going to impact But you know, as
we saw jobs report out yesterday, labor market's still strong.
We'll get an inflation reading this week. Expectations are inflation
continuing to come down. Right, so even fetchair poal not
concerned right now, not expecting any interest rate cuts. So
(25:54):
but it doesn't mean we put our head in the sand.
Right It's time to look at our asset allocation are
rebalance our portfolio if necessary, and really reevaluate cash needs.
And we know markets, you know, reward us for staying
invested and just making sure you're in the appropriate mix.
So at this point I'm gonna turn it over to
(26:15):
Scott to really, you know, cover some tax topics. You know,
some of us love taxes, some of us hate taxes,
but as we say, it's we all face taxes, so
it's a topic that's important to all of us. So
thank you Scott.
Speaker 2 (26:31):
Thanks John. In the words I believe of Benjamin Franklin,
in this world, nothing can be certain except death and taxes.
So let's jump into some taxes with about as John
said a month ago before tax day, which we know
is April fifteenth, question is are you prepared? But actually
(26:52):
we do have a caller on the line, Lisa from Almony. Morning.
Speaker 3 (26:59):
Lisa, A great for good more good morning, great segue
into my question, what has been just recently invested post
tax money. I guess non retirement money rather into a
Vanguard fun one hundred fifty thousand and has like another
three hundred thousand dollars to invest. And we've we've already
(27:21):
maximized all of our we're ass for the year. We've
maximized our four one k, our five twenty nine plans,
all our tax like our tax savings accounts. So I
don't know what else to do to save money in
tax with my investments. Those just wondering if you have
any suggestions.
Speaker 2 (27:44):
Great question. I'll take this fresh and then John if
you have anything to add. So it's great that you've
had a chance to maximize all of your different saving vehicles,
you know, retirement accounts. I'm not sure if you're eligible
for an HS. Say it's another great account to save
two Yeah, we have that mine. Okay, great, So I
(28:08):
would then really look, you know, if you have some
surplus money it sounds like still sitting around. I mean
you could always put it into a brokerage account. I
mean it's not a tactiferred or vehicle or anything like that,
but that's another place where you could put any excess money. Obviously,
you want to make sure that you have an emergency
(28:29):
fund set aside, so you don't want to invest everything
that you may need for anything that comes up in
the short term if you want to at least have
you know, it's about three to six months worth of
multi expenses, you know, set aside in this emergency we
have like three to six years.
Speaker 3 (28:44):
That's our problem. We have so much cash.
Speaker 2 (28:49):
Yeah, then I'd probably say a brokerage account would be
another place to look, especially if you know you don't
have any outstanding debts at a high, you know rate,
whether that's credit card or you know, if you have
a mortgage, that's totally fine. A lot of people, no
doubt a great rate.
Speaker 1 (29:03):
Okay. So I was just like, I would say that
those are some great problems to deal with it. And
and Leasta just the other thing I would I would
add to Scott's comments is, you know, if you're you're
putting into a taxable brokerage account, right, then it's also
like what kind of vehicles are you going to invest in?
And so you know, we primarily use ETFs exchange traded funds,
(29:28):
and one of the reasons is they are much more
tax efficient than mutual funds. So I would just you know,
because with mutual funds many times you can get capital distributions,
you know, capital gains distributions which you have to pay
tax on, you know, even though they didn't sell their share.
So again, you know, even in the brokerage taxable brokerage,
(29:49):
even though you're not getting a tax benefit per se,
just being cognitant of how you're investing that money. And
you know, we prefer ETFs and part of it because
of their tax efficiency.
Speaker 3 (30:01):
Hmm, that's great advice. I do have some old MITEOL
funds from like twenty years ago and that I want
to catch out, and I'm nervous. I don't know what
the cost basis. It wasn't tracked at the firm at
the time, so I want to actually get rid of
those and put those into ets. That's also a non
retirement account. But it's a good problem they have, but
it's not as far as taxes, right. I don't want
(30:24):
to pay a lot, I'll be honest. And it's scary
to put three hundred thousand dollars into a brokerage account,
invest it and then be stuck with this huge tax burden.
I just don't want that.
Speaker 1 (30:36):
Well, I would just and I do appreciate that you're right,
and nobody that likes to pay taxes. The only thing
I would say, though, is what's the alternative? And do
you what's the opportunity? Right? But what's the opportunity?
Speaker 2 (30:52):
Right?
Speaker 1 (30:52):
But what's the opportunity cost? You're giving up on that,
do you know what I mean? So, yes, a lot,
a lot a lot, right, right. And so if you're
you know, if you invest that in the market, you're right,
you're gonna pay tax. But you only get pay tax
on it if you get the return, right, and so
if that you know, grows, and uh so I think
(31:12):
you just, you know, don't get don't get so focused
on the tax right that you're making the wrong long
term decision, which is to provide you the best long
term return.
Speaker 3 (31:23):
Okay, that's some good advice there, and I feel like
embarrassing that, But I just don't want to pay so
much taxes. You know, Let's say you do have one
hundred thousand dollars gain. That's a lot of tax money
you're you're forking over the to the government.
Speaker 2 (31:38):
I feel, you know.
Speaker 3 (31:39):
For for being a good saver. I've already been taxed
on my income. I y I'm mean tax on you
ask being tax on, being tax on everything you know,
post tax, and I'm saving so much money. I don't
understand where's the benefit in that?
Speaker 1 (31:53):
Yeah, it's so one thing I would say, taxes, tax
you know what I mean, right, And one thing I
would say and scock get you know, say a lot
more on this is that you know that that's a
big part of what we do with our clients is
tax planning. And I will say, like tax tax, So
first and foremost we manage our clients money, but then
(32:15):
financial planning and tax planning, which really go hand in hand,
is a huge part of what we do. And so
it's not, uh, it's not you're not in an unusual situation.
So how do you then if you generate these gains,
how can you then exit them in a tax efficient manner?
And there are strategies for doing that, and that that
really becomes tax planning, and that is a really important part. Yeah,
(32:37):
it's an important part of what we do with our
clients because there are ways of doing that. You're right,
you don't wanna you don't want to pay too much taxes,
but again, you don't want to give up that potential return, right,
So how do you how do you do both? How
do you generate return? And we're not saying make taxes
go away, but through some planning, right, you can do
(32:59):
it in a in a morefficient manner.
Speaker 3 (33:02):
Okay, that's some really good advice. And what I said
is like really significant to me is after paying Social
Security tax, Medicare do is it Medicaid, Medicaid tax, paying
your New York state tax, paying your federal tax, then
you get your money, after your you know, you get
your paycheck. Then then you have your money, you invest
into the market, nipping another fifteen percent. It's just I
(33:25):
feel like there's no good benefit for savers other than
the what you mentioned, the HSA, the four K, the
five twenty ninth plans, the ROSS. Those are all great
tax deferther tax savings methods than any excess cash you're
taxed done, And there's really no way around that, I
understand right right, And as our savings account they HS
(33:50):
say a friend said, oh, you can invest that money,
I said, no, I researched it and I haven't taken
a penny out in four or five years. That's six
seven thousand years, growing and growing and growing. Tech three.
It's amazing, that's right, and.
Speaker 1 (34:04):
You're you can invest it within your HSA, do you
know what I mean? So I'm not.
Speaker 3 (34:08):
Sure how Yeah, that's what I've done. I took it
out of I put into a CD, you're gonna laugh,
a five percent CD, and then I ended up putting
into more of a like a total stock market funded Great, yeah.
Speaker 1 (34:20):
Great, great, you know. And and the only thing I
would say, and I certainly understand the feeling of a taxes,
so I'm not the only thing I would say is that, hey,
as a as a saver and a long term saver,
if you can make nine in the stock market, right,
and yes, knowing that at some point you're gonna have
(34:40):
to pay some tax on that, right, it's you're still beneficial.
It's still beneficial to put that money to work and
trying to trying to generate the highest total return you can.
And then you know, part of what part of planning
is is and this is a again, it's a big
part of what we do is Okay, then how do
you tap into that money trying to minimize taxes? And
(35:01):
there's strategies you can do and I'm not saying there's
things you can do to make it all go away, right,
But there's strategies you can do to then say, how
do I access that in the most tax efficient manner possible?
Speaker 3 (35:14):
Okay, and may I have one last follow one follow
up question.
Speaker 2 (35:19):
If you had a.
Speaker 3 (35:19):
Choice between, meaning a client had a choice or a
person between putting money into a five twenty nine plan
or a WROTH, and you're gonna be touching the money
at the same time, do you recommend one over the other?
Speaker 2 (35:36):
I would say WROTH over a five twenty nine plan,
because really those wraths are a retirement account, and you know,
there's not really any backstop for funding your retirement other
than really what you've put away. As far as the
five twenty nine you know, these are college savings accounts,
(35:57):
so there's a lot of options out there. You know,
you can fund yourself. There's a lot of student loans
out there, whether that's from the government, there's scholarships out there,
so again there's a lot of options to pay for
college in the future for somebody, but not as many
for you know, helping you fund your retirement. So if
it's one or the other that you could contribute to,
(36:18):
I'd say the row would be the first place to look.
Speaker 3 (36:22):
Okay, and then would you recommend for the five twenty
nine from a tax perspective, maxing out to ten thousand
a year For I think, guess what New York State
allows for the tax right off? Stopping at the ten
thousand a year, then a bit of like twenty or
thirty thousand.
Speaker 2 (36:37):
A year for a married couple of Yes, the maximum
New York State deduction you can get is ten thousand dollars.
It really comes down to your cash flow again. You
want to focus on your retirement maximizing all of those accounts.
If you do have extra money you could put in
you know up to the ten thousand dollars, you could
put even more above that into the five twenty nine,
(37:00):
but you know, at least trying to get that maximum
ten thousand dollars in New York State deduction is the first,
you know target.
Speaker 3 (37:07):
I would say, yeah, I do that like the first
week of the of the year, because a couple of
times I didn't do that and I put it in
the end of the year, but I mixed that whole
year of growth. If I had the money in January,
why wait till December? So I wait, I've been doing
it the first first week of the year and it's
(37:27):
grown one or two thousand over the you know, over
the year. It's a I believe it's the Vanguard five
twenty nine plan with yours.
Speaker 1 (37:36):
Yeah, that's great.
Speaker 2 (37:38):
Yeah, as John talks about you, it's about time in
the market, not timing in the market. So you know,
having the money invested and letty it work for you
is really a great strategy.
Speaker 3 (37:49):
Thank you, and it's part of being one of your clients.
Do you sit down with your charge up obviously, see
you know that's honorable, and then do you also to
sit down and do tax planning as part of that
fee or is it a separate service? Do you offer
talking about taxes and you know accounting, et cetera.
Speaker 2 (38:08):
Yeah, that is all included in our fee. So we
are the the only advisors, so we just charge and
assets under management fee and with that comes you know,
not only will we review your various accounts, you know,
retirement accounts, any accounts they have in their investments, but
we'll also do you know, financial planning with you, which
(38:30):
includes looking at tax planning, you know, social security planning,
cast flow planning. All of that is included in our
assets under management fee, and we.
Speaker 3 (38:43):
Put our assets with your company or we keep assets
with us, and then we pay you a advisory fee.
Speaker 2 (38:52):
So go ahead, John.
Speaker 1 (38:55):
So we use Charles Schwab as a custodian, so our
clients money. Yeah, yeah, so and we've we've worked with them,
you know for a long, long time, great firm. We
don't get any compensation out of that, and uh but
it's you know, they're a great custodian. And so your
money is held there at Charles Schwab.
Speaker 3 (39:18):
So you transfer it from your current yan financially place
to Charles Swab. Okay, yep, well thank you.
Speaker 2 (39:25):
Yeah, you're both eligible.
Speaker 3 (39:27):
And I love your program. I listened to it every
weekend and it's extremely Now you're extreaming eligible both of you.
Speaker 1 (39:33):
Thank you, well, thank you, Lisa. We appreciate you listening,
appreciate the questions, you know, and then you know you
certainly sounds like you're doing a lot of a lot
are the right things. So it's it seems to be
you're in a great position.
Speaker 2 (39:45):
Well there you go, Scott, you Lisa. Yeah, I'm gonna
dive into some more taxes, you know, looking at twenty
twenty four you know what moves you could still make
uh to tax You're twenty twenty four, and then look
at twenty twenty five, so you know, you still have
time to make some contributions to a couple accounts that
we had actually talked about with Lisa. So you still
(40:07):
could make contributions to your IRA or rawira IRA until
April fifteenth. For twenty twenty four, the maximum contribution is
up to seven thousand dollars for those under fifty years
old and eight thousand dollars for those fifty year older.
(40:27):
And there's again a lot of different eligibility rules to
whether or not you can contribute to either an IRA
or raw FIRA. One of the biggest ones that you
want to make sure is you have to have earned
income to contribute to these accounts, so really make sure
that you're eligible before you make any sort of contribution
(40:49):
to those accounts. Additionally, you could make if you're a
self employed individual, you can make contributions to a step IRA,
which you have until the due date of your business
tax return to make these contributions. Often, you know, if
you're self employed, you file on a schedule see which
(41:09):
goes with your personal tax return, so you have until
April fifteenth. There then then the final account is your HSA,
which is a help savings account. You have until April
fifteenth to make contributions for twenty twenty four as well.
These accounts are really, you know, one of the best
(41:30):
out there just because of the triple tax advantage that
they offer, which means your contributions are tax deductible, and
then the investment growth and earnings are tax free or
tax deferred, and then withdraws for qualified medical expenses you
know in the future are also tax free. So really
(41:52):
great accounts to have for you.
Speaker 3 (41:57):
You know.
Speaker 2 (41:57):
With having you know, presumably your taxes for twenty twenty
four are already done wrapped up or about to be,
we want to start taking a look at twenty twenty
five see if there's any changes that you should make
for yourself to have yourself set up properly. And really
one of the first things is you want to look
at doesn't make sense to adjust your withholding based on
(42:20):
your prior year's taxes and also what you're projecting for
the current year twenty twenty five. You want to pay
in enough to avoid an underpayment penalty, but also you
on the other side, you want to make sure that
you're not getting back too large of a refund. You know,
you're essentially just giving the government an interest free loan,
(42:41):
So the best place to really aim for is break even.
Another thing you want to look at for twenty twenty five,
if you haven't already done so, you want to adjust
your four to oh one K contributions. You know, for
twenty twenty five, the maximum you can contribute to a
four to one K is twenty three thousand, five hundred,
(43:03):
which is just an increase of five hundred dollars from
last year. So if you haven't already done so at
the beginning of the year, make sure you adjust that
amount to either max it out or at least aim
for you know that ten to fifteen percent putting away
of what you're earning. Also, as John had talked about,
(43:24):
you know, now is definitely a great time to review
your allocation and your various accounts of you want to
make sure you know, am I in the right allocation?
Am I you know being a bit too aggressive or
maybe conversely, maybe you're a bit too conservative based on
your time horizon. Also, if you know retirement accounts, you know,
(43:47):
maybe you've been set into a default fund when you
first got into the account, and you've never really done
anything with it, so you want to take a closer
look at your overall allocation and just what funds are
being offered within the account. And then also one other
piece related to retirement accounts. There are now i'd say
(44:09):
most or a lot at least, of retirement plans for
one ks where there's also now a row component that's
being offered, So it may make sense for you to
see to start contributing there in addition to your traditional
four oh one K. But it's something you really want
to analyze, you know, with a financial advisor or your
(44:32):
CPA or you know, John and I are really anybody
here at the firm, we can really take a closer
look at your exact situation to see doesn't make sense,
you know, if your employer offers a roth piece with
your four to oh one K, should I be putting
some money into that bucket as well? And then with
(44:54):
twenty twenty five and beyond, I'll just highlight you know,
as of the end of this year, we will be
seeing the Tax Cuts and Jobs Act that had gone
into place during Trump's first presidency. They will be sunsetting
at the end of this year, you know, without any changes,
you know, if they don't get passed, So we will
(45:14):
be going back to the old packed laws and provisions,
meaning we'll have different rates, we'll see a few of
the other you know, the standard deduction will be going down.
You know, some people may go back to itemizing again.
So that's just one thing to be aware of, in
addition to all of the things that have been thrown out,
(45:36):
such as you know, not taxing on tips over time,
you know, social Security. These are all just things that
have been thrown out. Nothing's been passed yet, so we
you know, are constantly keeping an eye on that for
clients to see what sort of changes we need to
make or help clients be aware of. And then just
(45:56):
you know, it's all really comes down to the planning.
So I think those are really some great things to
look at for your twenty twenty four taxes. And then beyond.
Speaker 1 (46:07):
Perfect scot that that was a great segment, a lot
of information there, very timely information as we are a
little bit more than a month away from tax filing day,
and great question by Lisa, and so you know, so
even on the tax front, you know, Scott said, there's
a lot of Trump policy changes that are up in
(46:32):
the air, and certainly we'll have more clarity and as
we get more definition on some of those tax changes
for twenty twenty five, and they all would be twenty
twenty five forward issues, we'll certainly share that. But you know,
President Trump has been clear that you know, his objective
is to extend those job cuts, I'm sorry, those tax cuts,
(46:56):
and also pushing for some others. Is Scott mentioned regarding
Social Security and in tips whether you know where this
funding gap is going to be covered? Right, because you know,
as I mentioned, you know, his goal is to get
to a balanced budget and uh, stop adding to our
(47:16):
national debt. So uh, you know, any kind of a
tax cut is going to be giving up some significant revenue.
So but there, you know, that's that's the why they
have the budget process, and he'll be working hard, you know,
with Congress. So you know, we are coming up near
the end of today's show, and I hope you enjoy
the show. I know that Scott and I certainly did.
(47:37):
Scott appreciate all the great info. I hope you enjoy
the rest of your week ahead and have an amazing
rest of your Sunday. Also, be sure to tune in
next week for another great show. Check out our website
Bouchet dot com for great content and information you have
been listening to Let's Talk Money, brought to you by
(47:58):
Bouchet Financial Group, where we help our clients prioritize their
health while we manage their wealth for life. I want
to thank you for tuning in with this morning. Hope
you enjoy the rest of your morning and have a
great week ahead. Thank you.
Good morning, and welcome to Let's Talk Money on a TENWGY.
I want to first start off by thanking you for
tuning in this morning and making us a part of
your weekend. I'm John Malay and I'm going to be
your host for this morning's edition of Let's Talk Money.
I'm a certified public accountant and the chief financial officer,
(00:28):
chief operating officer, and a wealth advisor at Bouchet Financial Group.
Joining me this morning is my co host, Scott Strohecker.
Scott is a wealth advisor at the firm. Scott is
a certified financial planner and an enrolled agent and a
key member of our tax team. Scott works with our
(00:48):
clients not only doing invaluable tax planning, but also we
do a little bit of tax preparation, so Scott'll be
here for any questions tax related. Scott, I want to
thank you for joining this morning.
Speaker 2 (01:01):
Thanks Sean. It's a pleasure to be on with everybody
this morning. Feeling good, ready for a great show, you know,
despite losing that hour of sleep last.
Speaker 1 (01:10):
Night, absolutely absolutely here. Hopefully everybody is adjusted to daylight
savings and move their clocks forward. Sunday morning, all we
surprises folks. So hopefully everybody's adjusted their time and is
tuning in with us this morning. And you know, one
of the things I want to mention about Scott. Scott
also in our firm, has the reputation he's the cold
(01:33):
plunge guy. So not only has he participated in several
community cold plunge events, he has also helped orchestrate a
little bit of an employee initiative. We did a little
fundraising initiative where employees were challenged to participate in a
cold plunge for a week and I was one of
those who participated. I am not an adoctor. I did
(01:56):
not love it. I did do it. But Scott is
a big propose own it. Scott, what is the benefits?
Why should we be doing cold plunges.
Speaker 2 (02:05):
There's a bunch of different research out there, but you know,
it really ranges from improving metabolism, reduced inflammation, can enhance
your mood. Also it will help with multiple recovery, but
also even just overall alertness. So you know, I would
challenge anybody that's feeling a little flow this morning, you know,
(02:27):
maybe just try doing a cold shower this morning and
see how your alertness is and you'll probably be ready
for the day.
Speaker 1 (02:36):
Perfect. Perfect. There you go. So that's our health and
wellness segment of the morning. So, you know, Scott and
I appreciate you tuning in with this this morning. You know,
we're here to answer your questions. You know, we're going
to a lot to talk about this morning. We're going
to talk about the latest in the markets, some investment strategies,
but also you know here we are a little bit
(02:57):
more than a month away from tax filing date, so
Scott will certainly be talking taxes and answering any questions
you have, so certainly encourage listeners to call in with
those questions. You can reach us at eight hundred talk WGY.
That's eight hundred eight two five five nine four nine.
And I will say in the questions you know, we
(03:19):
do say when it comes to your money, there there
is no dumb question, you know, and so any question
you have just reach out. I guarantee if you're thinking it,
some other listener is out there. And you know, sometimes
it's a it can be a little unnerving to have
to pick up the phone and make that call, but
trust me, will be will be kind, super kind to you.
(03:40):
And again no such thing as a dumb question, So
don't hesitate to reach out. So you know, we'll start
right out in the market. Just I mentioned, you know,
a lot to talk about. You know, this week started
with a bang. You know, on Monday, Presidents Trump had
his address to the Joint Session of Congress, and you know,
during that address, he discussed his plans to implement some
(04:03):
major policy changes. You know, in those policy changes including
you know, included some major areas you know, around trade
and tariffs, fiscal policies around taxes, government spending. He actually
mentioned getting to a balanced budget and obviously doje out
(04:23):
in front of that is certainly became has become kind
of the symbol of government, uh, you know, cutting out
government waste, getting to some more efficiency. Also, immigration policies
and foreign policies really you know, including the war in Ukraine,
are funding of NATO and really evaluating all of our
(04:46):
foreign aid. So you know, one the administration is doing
exactly what they said they were going to be doing
in the fall, which was jumping into these They said
they were going to act swift, and they are and
I think that's you know, what we're seeing is on
a broad front, they are moving quickly. And you know,
I just have to say, and you know, as a firm,
I'm not saying we agree or disagree with any one
(05:08):
of those administrative policies. That's not our job. Really. Our
job is to manage our clients' money, regardless of whether
it's a Republican or Democrat in house. And so you know,
and again, you know, Steve started this firm thirty five
years ago. We've got a proven track record of doing that,
of managing our clients' money regardless of the policies coming
(05:31):
out of the White House, including you know, regardless of
what's happening with the markets. You know, we've got a
proven track record in bull markets, bear markets, and everything
in between. So, but we have to deal with reality.
And the reality right now is the administration is moving
forward with a broad scope and at a quick pace,
(05:55):
and that is creating some uncertainty. There's no question about that.
You know. There's how exactly actually these policies will be
finalized and what their impact on the economy, both US economy,
global economy is yet to be unseen, and part of
what will be driven by you know, how ultimately the
(06:18):
details shakeout, and you know, when you you know, when
you look at each of the policies individually, and you
could definitely see the big picture merit, right, you know.
And I look at you know, his some of his
fiscal policies, right, Like, who would argue that getting to
a balanced budget isn't a good move?
Speaker 2 (06:39):
Right?
Speaker 1 (06:39):
You know, we've seen our national debt balloon to thirty
seven trillion dollars. We've seen the drag that the interest
obligation is having on our on our spending. Right, It's
it's we spend now more on interest than we do
on defense, right. And so the idea of getting to
(07:00):
more efficient government spending, who could argue with that? That
makes us getting into a balanced budget. Listen, As businesses,
we have to be fiscally sound. We can't just spend
without regard for the revenue we make. And the same
as individuals. I mean a big part of our financial
planning process, and Scott's the big part of is this.
You know, we're doing financial planning with a client. You know,
if a client is spending too much money based on
(07:23):
what they're either earning on their portfolio or earning through
their wages, their financial plan is going to go in
the tank and we've got to have that tough conversation.
And so certainly, you know, how this is implemented, right,
so a big picture makes sense. You know, let's get
some fiscal responsibility. How this is implemented, you know, we're
just gonna have to see. Certainly, it was only probably
(07:45):
two three weeks ago we saw images of Elon Musk,
who's heading up DOGE, you know, for cutting out some
government waste. We saw him at a rally with a chainsaw,
you know, talk about slashing prices. You know, now the
rhetoric has been toned down a little bit. Now it's
talking about President Trump is talking about using a scalpel,
right to more strategically cut costs. But we're seeing with
(08:09):
the administration. You know, one thing that Trump does is
he comes out and he's a salesman, right, and he's
making big splash. And so when he talked about you know,
cutting government waste, talk about in a big way. Now,
how it's ultimately implemented, We're just going to have to
wait and see. Certainly, you know, with the jobs report
that came out on Friday, we are seeing some you know,
(08:31):
I think there's a reduction of government jobs by about
ten thousand. We'll see more of that, you know, take
place in March, and how that ultimately impacts the job market,
you know, we'll yet to be seen, i will say,
and I'll talk more about it a little bit later
in this show. Is you know, the jobs report that
just came out, strong labor market and solid labor market,
(08:53):
so certainly, you know, in the February timeframe, no major
impact and you get just getting back to the Trump
administration's policies, you know, the same could be say, you know,
said with the trade and tariff policy, and certainly that
is getting a lot of airtime right now, and it
(09:13):
is creating a lot of confusion within our markets. You know,
seems to be an on again, off again approach. But again,
if you look at the core, one of the primary
benefits of that, and there are several benefits, but you know,
one of the objectives uh being sought is to bring
factories and jobs back to the US. Right And again
(09:34):
that makes sense, right, you know, as strong US economy
is dependent on you know, growing jobs, so bring factories
back is a good uh. Certainly is a good objective
and would be good for the US economy. And similarly,
we've seen some bold announcements we've seen, then some delays
(09:54):
and then some carve outs. Uh. So ultimately how those
tariffs will be minute and ultimately what that impact will be,
you know, we'll we'll just have to see. And I
think we're seeing the markets, uh, you know, react to
some of that uncertainty. Even on Friday, FED Chairman Jerome Powell, uh,
you know, spoke about tariffs, and you know, really fed's
(10:17):
taking a wait and see approach. You know, there's a
potential that some of the tariffs could be inflationary, but
it's not a foregone conclusion. You know, part of it's
definitely gonna depend on how it's implemented and then how
those ultimately how those cost increases are dealt with. So
but one thing that we know is, you know, on
(10:39):
a several broad fronts all happening at once with great speed,
it's creating uncertainty. And what do we know about the markets?
Markets don't like uncertainty and uh and we saw that
this week for sure, and you know, as investors, you know,
we've got to look through that. We've got to be
able to cut through the noise and see, you know,
what is noise level and what is systemic issues that
(11:02):
we need to deal with. So we'll be talking about
that a bit. And so just to you know, encourage listeners,
if you have questions, we're here for you, So reach
out to US eight hundred talk WGY. That's eight hundred
eight two five five nine four nine. So markets this week,
you know, as I mentioned, you know, volatile week. You know,
definitely UH saw several ups and down even even Friday,
(11:26):
you know, you know, closed out the week really posting
the worst weeks since September. UH and Friday itself was
a very volatile day. You know, Dow was falling more
than five four hundred points at one point, both the
s and P five hundred, Nasdaq were down more than
one percent at the worst point of the day. But
despite of that, you know, they finished all indexes finished
(11:48):
Friday in the positive. However they did, they did not
you know, really a losing week. So you know, the
SMP was down three point one percent for the week,
NASDAC was down three point four or five percent for
the week, and the Dow two point three seven down
two point three seven for the week. So certainly all
(12:10):
the indexes down, and it was volatile week, ups and downs,
and we saw several days where we saw, you know,
the index is moving either in a positive negative direction
and then major changes you know at the end of
the day. So certainly a down week. And you know,
as you look at some of the you know sectors,
(12:32):
you know, for the week, almost every sector other than
healthcare down, you know, year to date, you know you
are seeing you know, really you know, tech and consumer discretionary,
things that you would expect to be hit hard have
been hit hard. You know, financials all the way up
to healthcare have been positive year to date. But you know,
(12:54):
there's no question is we're seeing you know, twenty twenty three,
twenty twenty for definitely heavy growth years, right and we
saw growth stocks, reward us particularly. We talked about the
mag seven. You know, now it's concerned about you know,
where where are we in a growth perspective? And remember,
(13:14):
you know, when we look at our GDP, you know,
consumer confidence, consumer spending makes up such a huge part
of that. Consumer spending makes up seventy percent of our GDP.
So we look and say, you know, consumers are you
know a little bit nervous right now? Is we're seeing
you know, the uh seeing some of the headlines from
(13:36):
coming out of the Trump administration. How are these changes
going to be implemented? How is that going to impact me?
That that affects consumers, right, and we know, you know,
consumer staples, things that we have to buy, right though,
that sector is you know, is still doing good year
to date, you know, up up over almost five and
a half percent year to date, right, those those are
(13:58):
those things that we as consumers, we just have to
keep spending consumer discretionary right where where we can in
their discretionary purchases. That consumer is showing that they're they're
a little little nervous, right, and so spending is down there.
So as a consumer, spending goes down, and part of
that's driven by just feelings, right, you know, just by
natural feelings about what I expectations for the rest of
(14:20):
the year. But as we look at GDP also, you know,
government spending a big important component of that. Now, again,
consumer spending makes up lie and share, but you know,
government spending. We're hearing government, you know, Trump being very
clear is that government spending is going to come down,
you know, and they're going to be more efficient, They're
going to reduce the workforce, they're gonna you know, cut
(14:44):
down spending. So that creates a little uncertainty from a
growth perspective. And you know, we're seeing businesses, we are
hearing about some you know large you know investments happening,
you know, particularly in the tech at AI space. But
you're also starting to hear companies hold back a little
bit on capital investment, kind of taking a wait and
(15:04):
see approach. So all of that, you know, just creating
a little bit of noise and uncertainty about you know,
what kind of growth we're going to be seeing this year.
Are we going to continue seeing two plus percent growth
in GDP or are we going to see a bit
of a slowdown. So certainly some of the uncertainty.
Speaker 3 (15:21):
Uh.
Speaker 1 (15:22):
But again, you know, we have a day like Friday
where yeah, we've got some of the headline noise, but
then we have you know, Broadcom come out and you know,
release earnings and they beat expectations, you know, their revenue,
you know, above expectations, their guidance for the next quarter
(15:42):
above expectations, and they're rewarded for nine you know, by
a nine percent increase of Uh. Broadcom stock went up
nine percent on Friday, So again it's as an investor,
we need to cut through the noise and really, you know,
what is it we need to worry about and not
to overreact. And certainly, you know, the volatility in the
(16:05):
markets can create some you know, psychological fear, right. You know,
as as investors, sometimes we want to avoid losses more
than we want to focus on gains, right, and so
certainly this type of volatility, there's things to be you know,
look at with your portfolio. There's no question as an
(16:25):
investor there are things you can do, and you know, primarily,
you know, one thing we say to our clients all
the times is don't panic, right. You know, we're in
this stock market for a reason. There is there is
some volatility in the market. We do know on an
average year, right, you can have a fourteen to fifteen
(16:46):
we're going to on average year, you're going to see
a fourteen to fifteen percent draw down from the peak
of the market to the low part of the market.
And that's an average year right now. The last two years,
you know, we've been spared that type of fluctuation, but
it can happen. So one we say is it's just
don't panic, right, and you really cut through the noise,
(17:06):
and it's a good time when there's market volatilis just
get back to basics, right and there's you know, doesn't
mean you put your head in the sand, right and
say I'm just not going to pay attention, but it's like,
don't don't overreact, and you know, get back to basics.
And you know, some of the basics you can do
is you know, look at your overall asset allocation, you know,
(17:27):
your mix of stocks, bonds, cash, make sure that's appropriate
for your investment time horizon and also your risk tolerance.
And you know, so that's important to do. It's a
good time, you know, as we're you know, still relatively
early in the year March early March, we're seeing some
volatility go through. Do you you know, is your asset
(17:49):
allocation appropriate right for your time horizon and your risk tolerance. Also,
it's a good time to you know, rebalance your portfolio
if it's needed. You know, remember we just had too
you know, back to back years of heavy growth in
tech you know, s to be up over twenty percent
both of those years. You know, if you've haven't adjusted
(18:10):
your portfolio, you may find that your you know, your
your your asset mix, right, is out of balance a
little bit, and that can be just the natural what's
happened in the markets. Right, So it's a good time. Uh.
You know, this is something you know, for our clients.
You know, we did at the last end of last year.
You know, we had such a growth in tech, we rebalanced,
(18:34):
you know, we we made some moves into some defensive holdings,
you know, seeing what some of the possibilities were for
this year. So you can do a similar you know,
things like you know what some of the defensive holdings
we've moved into. You know, Schwab as a US dividend
equity ETF shd Uh, that's been a great holding for us.
(18:57):
And again it's it's it's that particular ETF. It holds
you know, one hundred stocks that have paid dividends for
the for at least ten consecutive years. But more importantly,
they're also show the health that they're going to continue that, right,
and that particular holding is up over four percent this year.
So again, if you're looking at your your portfolio, and
(19:19):
if you're looking maybe you know tech has gotten too
heavy in your portfolio because of just the natural run up,
you may want to look at you know, rebalancing and
taking some of that, you know, those tech gains moving
into some more defensive measures. So in addition to SHD,
you know, one of the other holdings that we've had
(19:41):
success with is DUHP, which is a dimensional US high
profitability ETF. And again, you know, up almost you know,
over one and a half percent for the year, again
going to more defensive stands. And again we're not saying
make wholesale change is right, it is. It's about just
(20:02):
rebalancing and making sure that that your asset mix right.
How you're if you've decided you looked at your you know,
your overall asset allocation. If you decide, hey, sixty eighty
percent should be in equities. Within those equities, you want
to make sure they're well diversified, right. And if you feel,
as you look back and saying, hey, just based on
(20:24):
the natural growth, that maybe you're too tech heavy or
maybe you're too focused in one area, it's okay to
rebalance and it's a good time to look at that.
It's also a good time to look at your cash,
you know. And and when I say cash, it might
be investing in money funds, you know, which you know,
based on where interest rates are right now, still yielding
good rates, still you know, yielding north of four percent.
(20:48):
But if it might make sense for you to, you know,
make sure you know you you're appropriately invested in cash.
And again I certainly would not recommend, you know, moving
to an all cash right and that can be a
knee jerk reaction when you see some volatility, but think
about how hard it is to market time getting it
(21:09):
right going in and then you have to get it
right going back out. But that doesn't mean you're not
you know, A very normal part is looking of you know,
reevaluating your portfolio, is looking at your cash flow needs.
And if you decide that, you know, you may need
to pull some money out of your portfolio, certainly in
(21:29):
the next you know, twelve to twenty four months, it'd
be proven to set that side into a cash cash equivalent,
you know, not into pure cash, but maybe into a
money fund where really no principal risk, but you're still
earning a yield. So and these are the you know,
it's a good time to really reevaluate. And and again,
(21:53):
more than anything, don't panic you know, volatility, you know,
it can also be our friend. Right, if you've got
cash on the sidelines. You know, if we do see
it pullback a further pullback this year. You know, also
get a value is a good time to put that
cash to work, buying at a discount. So we do know,
(22:13):
you know, history is shown. You can you know, look
at one hundred years worth of data, eighty years worth
of data, fifty years worth of data. It behooves us
to stay invested in the markets, right the stocks on
average will return and reward us for staying invested. It's
(22:35):
very hard to market time, and you know, I know
there can be a psychological you know kind of drive
sometimes to again avoid loss. Again, we would just recommend
that you know, kind of try to cut through the noise,
take a approach of really looking at your portfolio and making
(22:55):
sure you're in a good position. So going on in
the markets and you know, covered a big recap. Certainly,
if I have questions and any specific questions, don't hesitate
to reach out. Scott and I are here. You can
courage listeners. You can call us at eight hundred talk WGY.
That's eight hundred eight two five five nine four nine.
(23:18):
We're going to be taking a break shortly. When we
come back, We're gonna just recap, you know, recap the
market news, and then we get into a little bit
of tax conversation. You know, we're close to tax filing time,
so Scott's here to answer some of those questions. So
we appreciate you tuning in with us today. Hope you
will stay with us through the break. Again, courage listeners
(23:38):
call in with questions. You are listening to Let's Talk Money,
brought to you by Bouchet Financial Group, where we help
our clients prioritize their health while we manage their wealth
for life. Again, thank you for tuning in. Hope you
stay with us through the break. Well, good morning, and
(24:04):
thank you for staying with us through that short commercial break.
I hope everyone is adjusting to daylight savings time. It
has moved their clocks forward, although with most of us
using iPhones or other digital Wi Fi connected device, most
of us don't you have to do anything. We just
wake up and all the time is adjusted. Except for that,
(24:26):
there's always that you know clock that's either on the
microwave or the oven that is usually wrong for the
next couple of weeks until we go and fix it.
So appreciate you tuning in with this morning. I am
John Malay. I am a certified public accountant. I'm the
chief financial officer, chief operating officer, a wealth advisor at
the firm, and I am joined this morning by my
(24:47):
colleague Scott Strohecker. You know, I'll just finished wrapping up
you know, market segment, and then Scott's going to get
into you know, with us being getting closer and closer
to tax filing time, Scott's gonna cover or some tax
topics and certainly we are here to answer any questions
you have and you can reach us at eight hundred
(25:08):
talk WGY. That's eight hundred eight two five five nine
four nine. So just wrapping up, you know, so you know, markets,
US markets down for the week, and you know this
is not a time to panic, and I you know,
just be blunt here at a time where there is
some volatiley and there's some uncertainty. Right, It's it's about
(25:30):
how are Trump's President Trump's policies going to be implemented,
how are they going to impact But you know, as
we saw jobs report out yesterday, labor market's still strong.
We'll get an inflation reading this week. Expectations are inflation
continuing to come down. Right, so even fetchair poal not
concerned right now, not expecting any interest rate cuts. So
(25:54):
but it doesn't mean we put our head in the sand.
Right It's time to look at our asset allocation are
rebalance our portfolio if necessary, and really reevaluate cash needs.
And we know markets, you know, reward us for staying
invested and just making sure you're in the appropriate mix.
So at this point I'm gonna turn it over to
(26:15):
Scott to really, you know, cover some tax topics. You know,
some of us love taxes, some of us hate taxes,
but as we say, it's we all face taxes, so
it's a topic that's important to all of us. So
thank you Scott.
Speaker 2 (26:31):
Thanks John. In the words I believe of Benjamin Franklin,
in this world, nothing can be certain except death and taxes.
So let's jump into some taxes with about as John
said a month ago before tax day, which we know
is April fifteenth, question is are you prepared? But actually
(26:52):
we do have a caller on the line, Lisa from Almony. Morning.
Speaker 3 (26:59):
Lisa, A great for good more good morning, great segue
into my question, what has been just recently invested post
tax money. I guess non retirement money rather into a
Vanguard fun one hundred fifty thousand and has like another
three hundred thousand dollars to invest. And we've we've already
(27:21):
maximized all of our we're ass for the year. We've
maximized our four one k, our five twenty nine plans,
all our tax like our tax savings accounts. So I
don't know what else to do to save money in
tax with my investments. Those just wondering if you have
any suggestions.
Speaker 2 (27:44):
Great question. I'll take this fresh and then John if
you have anything to add. So it's great that you've
had a chance to maximize all of your different saving vehicles,
you know, retirement accounts. I'm not sure if you're eligible
for an HS. Say it's another great account to save
two Yeah, we have that mine. Okay, great, So I
(28:08):
would then really look, you know, if you have some
surplus money it sounds like still sitting around. I mean
you could always put it into a brokerage account. I
mean it's not a tactiferred or vehicle or anything like that,
but that's another place where you could put any excess money. Obviously,
you want to make sure that you have an emergency
(28:29):
fund set aside, so you don't want to invest everything
that you may need for anything that comes up in
the short term if you want to at least have
you know, it's about three to six months worth of
multi expenses, you know, set aside in this emergency we
have like three to six years.
Speaker 3 (28:44):
That's our problem. We have so much cash.
Speaker 2 (28:49):
Yeah, then I'd probably say a brokerage account would be
another place to look, especially if you know you don't
have any outstanding debts at a high, you know rate,
whether that's credit card or you know, if you have
a mortgage, that's totally fine. A lot of people, no
doubt a great rate.
Speaker 1 (29:03):
Okay. So I was just like, I would say that
those are some great problems to deal with it. And
and Leasta just the other thing I would I would
add to Scott's comments is, you know, if you're you're
putting into a taxable brokerage account, right, then it's also
like what kind of vehicles are you going to invest in?
And so you know, we primarily use ETFs exchange traded funds,
(29:28):
and one of the reasons is they are much more
tax efficient than mutual funds. So I would just you know,
because with mutual funds many times you can get capital distributions,
you know, capital gains distributions which you have to pay
tax on, you know, even though they didn't sell their share.
So again, you know, even in the brokerage taxable brokerage,
(29:49):
even though you're not getting a tax benefit per se,
just being cognitant of how you're investing that money. And
you know, we prefer ETFs and part of it because
of their tax efficiency.
Speaker 3 (30:01):
Hmm, that's great advice. I do have some old MITEOL
funds from like twenty years ago and that I want
to catch out, and I'm nervous. I don't know what
the cost basis. It wasn't tracked at the firm at
the time, so I want to actually get rid of
those and put those into ets. That's also a non
retirement account. But it's a good problem they have, but
it's not as far as taxes, right. I don't want
(30:24):
to pay a lot, I'll be honest. And it's scary
to put three hundred thousand dollars into a brokerage account,
invest it and then be stuck with this huge tax burden.
I just don't want that.
Speaker 1 (30:36):
Well, I would just and I do appreciate that you're right,
and nobody that likes to pay taxes. The only thing
I would say, though, is what's the alternative? And do
you what's the opportunity? Right? But what's the opportunity?
Speaker 2 (30:52):
Right?
Speaker 1 (30:52):
But what's the opportunity cost? You're giving up on that,
do you know what I mean? So, yes, a lot,
a lot a lot, right, right. And so if you're
you know, if you invest that in the market, you're right,
you're gonna pay tax. But you only get pay tax
on it if you get the return, right, and so
if that you know, grows, and uh so I think
(31:12):
you just, you know, don't get don't get so focused
on the tax right that you're making the wrong long
term decision, which is to provide you the best long
term return.
Speaker 3 (31:23):
Okay, that's some good advice there, and I feel like
embarrassing that, But I just don't want to pay so
much taxes. You know, Let's say you do have one
hundred thousand dollars gain. That's a lot of tax money
you're you're forking over the to the government.
Speaker 2 (31:38):
I feel, you know.
Speaker 3 (31:39):
For for being a good saver. I've already been taxed
on my income. I y I'm mean tax on you
ask being tax on, being tax on everything you know,
post tax, and I'm saving so much money. I don't
understand where's the benefit in that?
Speaker 1 (31:53):
Yeah, it's so one thing I would say, taxes, tax
you know what I mean, right, And one thing I
would say and scock get you know, say a lot
more on this is that you know that that's a
big part of what we do with our clients is
tax planning. And I will say, like tax tax, So
first and foremost we manage our clients money, but then
(32:15):
financial planning and tax planning, which really go hand in hand,
is a huge part of what we do. And so
it's not, uh, it's not you're not in an unusual situation.
So how do you then if you generate these gains,
how can you then exit them in a tax efficient manner?
And there are strategies for doing that, and that that
really becomes tax planning, and that is a really important part. Yeah,
(32:37):
it's an important part of what we do with our
clients because there are ways of doing that. You're right,
you don't wanna you don't want to pay too much taxes,
but again, you don't want to give up that potential return, right,
So how do you how do you do both? How
do you generate return? And we're not saying make taxes
go away, but through some planning, right, you can do
(32:59):
it in a in a morefficient manner.
Speaker 3 (33:02):
Okay, that's some really good advice. And what I said
is like really significant to me is after paying Social
Security tax, Medicare do is it Medicaid, Medicaid tax, paying
your New York state tax, paying your federal tax, then
you get your money, after your you know, you get
your paycheck. Then then you have your money, you invest
into the market, nipping another fifteen percent. It's just I
(33:25):
feel like there's no good benefit for savers other than
the what you mentioned, the HSA, the four K, the
five twenty ninth plans, the ROSS. Those are all great
tax deferther tax savings methods than any excess cash you're
taxed done, And there's really no way around that, I
understand right right, And as our savings account they HS
(33:50):
say a friend said, oh, you can invest that money,
I said, no, I researched it and I haven't taken
a penny out in four or five years. That's six
seven thousand years, growing and growing and growing. Tech three.
It's amazing, that's right, and.
Speaker 1 (34:04):
You're you can invest it within your HSA, do you
know what I mean? So I'm not.
Speaker 3 (34:08):
Sure how Yeah, that's what I've done. I took it
out of I put into a CD, you're gonna laugh,
a five percent CD, and then I ended up putting
into more of a like a total stock market funded Great, yeah.
Speaker 1 (34:20):
Great, great, you know. And and the only thing I
would say, and I certainly understand the feeling of a taxes,
so I'm not the only thing I would say is that, hey,
as a as a saver and a long term saver,
if you can make nine in the stock market, right,
and yes, knowing that at some point you're gonna have
(34:40):
to pay some tax on that, right, it's you're still beneficial.
It's still beneficial to put that money to work and
trying to trying to generate the highest total return you can.
And then you know, part of what part of planning
is is and this is a again, it's a big
part of what we do is Okay, then how do
you tap into that money trying to minimize taxes? And
(35:01):
there's strategies you can do and I'm not saying there's
things you can do to make it all go away, right,
But there's strategies you can do to then say, how
do I access that in the most tax efficient manner possible?
Speaker 3 (35:14):
Okay, and may I have one last follow one follow
up question.
Speaker 2 (35:19):
If you had a.
Speaker 3 (35:19):
Choice between, meaning a client had a choice or a
person between putting money into a five twenty nine plan
or a WROTH, and you're gonna be touching the money
at the same time, do you recommend one over the other?
Speaker 2 (35:36):
I would say WROTH over a five twenty nine plan,
because really those wraths are a retirement account, and you know,
there's not really any backstop for funding your retirement other
than really what you've put away. As far as the
five twenty nine you know, these are college savings accounts,
(35:57):
so there's a lot of options out there. You know,
you can fund yourself. There's a lot of student loans
out there, whether that's from the government, there's scholarships out there,
so again there's a lot of options to pay for
college in the future for somebody, but not as many
for you know, helping you fund your retirement. So if
it's one or the other that you could contribute to,
(36:18):
I'd say the row would be the first place to look.
Speaker 3 (36:22):
Okay, and then would you recommend for the five twenty
nine from a tax perspective, maxing out to ten thousand
a year For I think, guess what New York State
allows for the tax right off? Stopping at the ten
thousand a year, then a bit of like twenty or
thirty thousand.
Speaker 2 (36:37):
A year for a married couple of Yes, the maximum
New York State deduction you can get is ten thousand dollars.
It really comes down to your cash flow again. You
want to focus on your retirement maximizing all of those accounts.
If you do have extra money you could put in
you know up to the ten thousand dollars, you could
put even more above that into the five twenty nine,
(37:00):
but you know, at least trying to get that maximum
ten thousand dollars in New York State deduction is the first,
you know target.
Speaker 3 (37:07):
I would say, yeah, I do that like the first
week of the of the year, because a couple of
times I didn't do that and I put it in
the end of the year, but I mixed that whole
year of growth. If I had the money in January,
why wait till December? So I wait, I've been doing
it the first first week of the year and it's
(37:27):
grown one or two thousand over the you know, over
the year. It's a I believe it's the Vanguard five
twenty nine plan with yours.
Speaker 1 (37:36):
Yeah, that's great.
Speaker 2 (37:38):
Yeah, as John talks about you, it's about time in
the market, not timing in the market. So you know,
having the money invested and letty it work for you
is really a great strategy.
Speaker 3 (37:49):
Thank you, and it's part of being one of your clients.
Do you sit down with your charge up obviously, see
you know that's honorable, and then do you also to
sit down and do tax planning as part of that
fee or is it a separate service? Do you offer
talking about taxes and you know accounting, et cetera.
Speaker 2 (38:08):
Yeah, that is all included in our fee. So we
are the the only advisors, so we just charge and
assets under management fee and with that comes you know,
not only will we review your various accounts, you know,
retirement accounts, any accounts they have in their investments, but
we'll also do you know, financial planning with you, which
(38:30):
includes looking at tax planning, you know, social security planning,
cast flow planning. All of that is included in our
assets under management fee, and we.
Speaker 3 (38:43):
Put our assets with your company or we keep assets
with us, and then we pay you a advisory fee.
Speaker 2 (38:52):
So go ahead, John.
Speaker 1 (38:55):
So we use Charles Schwab as a custodian, so our
clients money. Yeah, yeah, so and we've we've worked with them,
you know for a long, long time, great firm. We
don't get any compensation out of that, and uh but
it's you know, they're a great custodian. And so your
money is held there at Charles Schwab.
Speaker 3 (39:18):
So you transfer it from your current yan financially place
to Charles Swab. Okay, yep, well thank you.
Speaker 2 (39:25):
Yeah, you're both eligible.
Speaker 3 (39:27):
And I love your program. I listened to it every
weekend and it's extremely Now you're extreaming eligible both of you.
Speaker 1 (39:33):
Thank you, well, thank you, Lisa. We appreciate you listening,
appreciate the questions, you know, and then you know you
certainly sounds like you're doing a lot of a lot
are the right things. So it's it seems to be
you're in a great position.
Speaker 2 (39:45):
Well there you go, Scott, you Lisa. Yeah, I'm gonna
dive into some more taxes, you know, looking at twenty
twenty four you know what moves you could still make
uh to tax You're twenty twenty four, and then look
at twenty twenty five, so you know, you still have
time to make some contributions to a couple accounts that
we had actually talked about with Lisa. So you still
(40:07):
could make contributions to your IRA or rawira IRA until
April fifteenth. For twenty twenty four, the maximum contribution is
up to seven thousand dollars for those under fifty years
old and eight thousand dollars for those fifty year older.
(40:27):
And there's again a lot of different eligibility rules to
whether or not you can contribute to either an IRA
or raw FIRA. One of the biggest ones that you
want to make sure is you have to have earned
income to contribute to these accounts, so really make sure
that you're eligible before you make any sort of contribution
(40:49):
to those accounts. Additionally, you could make if you're a
self employed individual, you can make contributions to a step IRA,
which you have until the due date of your business
tax return to make these contributions. Often, you know, if
you're self employed, you file on a schedule see which
(41:09):
goes with your personal tax return, so you have until
April fifteenth. There then then the final account is your HSA,
which is a help savings account. You have until April
fifteenth to make contributions for twenty twenty four as well.
These accounts are really, you know, one of the best
(41:30):
out there just because of the triple tax advantage that
they offer, which means your contributions are tax deductible, and
then the investment growth and earnings are tax free or
tax deferred, and then withdraws for qualified medical expenses you
know in the future are also tax free. So really
(41:52):
great accounts to have for you.
Speaker 3 (41:57):
You know.
Speaker 2 (41:57):
With having you know, presumably your taxes for twenty twenty
four are already done wrapped up or about to be,
we want to start taking a look at twenty twenty
five see if there's any changes that you should make
for yourself to have yourself set up properly. And really
one of the first things is you want to look
at doesn't make sense to adjust your withholding based on
(42:20):
your prior year's taxes and also what you're projecting for
the current year twenty twenty five. You want to pay
in enough to avoid an underpayment penalty, but also you
on the other side, you want to make sure that
you're not getting back too large of a refund. You know,
you're essentially just giving the government an interest free loan,
(42:41):
So the best place to really aim for is break even.
Another thing you want to look at for twenty twenty five,
if you haven't already done so, you want to adjust
your four to oh one K contributions. You know, for
twenty twenty five, the maximum you can contribute to a
four to one K is twenty three thousand, five hundred,
(43:03):
which is just an increase of five hundred dollars from
last year. So if you haven't already done so at
the beginning of the year, make sure you adjust that
amount to either max it out or at least aim
for you know that ten to fifteen percent putting away
of what you're earning. Also, as John had talked about,
(43:24):
you know, now is definitely a great time to review
your allocation and your various accounts of you want to
make sure you know, am I in the right allocation?
Am I you know being a bit too aggressive or
maybe conversely, maybe you're a bit too conservative based on
your time horizon. Also, if you know retirement accounts, you know,
(43:47):
maybe you've been set into a default fund when you
first got into the account, and you've never really done
anything with it, so you want to take a closer
look at your overall allocation and just what funds are
being offered within the account. And then also one other
piece related to retirement accounts. There are now i'd say
(44:09):
most or a lot at least, of retirement plans for
one ks where there's also now a row component that's
being offered, So it may make sense for you to
see to start contributing there in addition to your traditional
four oh one K. But it's something you really want
to analyze, you know, with a financial advisor or your
(44:32):
CPA or you know, John and I are really anybody
here at the firm, we can really take a closer
look at your exact situation to see doesn't make sense,
you know, if your employer offers a roth piece with
your four to oh one K, should I be putting
some money into that bucket as well? And then with
(44:54):
twenty twenty five and beyond, I'll just highlight you know,
as of the end of this year, we will be
seeing the Tax Cuts and Jobs Act that had gone
into place during Trump's first presidency. They will be sunsetting
at the end of this year, you know, without any changes,
you know, if they don't get passed, So we will
(45:14):
be going back to the old packed laws and provisions,
meaning we'll have different rates, we'll see a few of
the other you know, the standard deduction will be going down.
You know, some people may go back to itemizing again.
So that's just one thing to be aware of, in
addition to all of the things that have been thrown out,
(45:36):
such as you know, not taxing on tips over time,
you know, social Security. These are all just things that
have been thrown out. Nothing's been passed yet, so we
you know, are constantly keeping an eye on that for
clients to see what sort of changes we need to
make or help clients be aware of. And then just
(45:56):
you know, it's all really comes down to the planning.
So I think those are really some great things to
look at for your twenty twenty four taxes. And then beyond.
Speaker 1 (46:07):
Perfect scot that that was a great segment, a lot
of information there, very timely information as we are a
little bit more than a month away from tax filing day,
and great question by Lisa, and so you know, so
even on the tax front, you know, Scott said, there's
a lot of Trump policy changes that are up in
(46:32):
the air, and certainly we'll have more clarity and as
we get more definition on some of those tax changes
for twenty twenty five, and they all would be twenty
twenty five forward issues, we'll certainly share that. But you know,
President Trump has been clear that you know, his objective
is to extend those job cuts, I'm sorry, those tax cuts,
(46:56):
and also pushing for some others. Is Scott mentioned regarding
Social Security and in tips whether you know where this
funding gap is going to be covered? Right, because you know,
as I mentioned, you know, his goal is to get
to a balanced budget and uh, stop adding to our
(47:16):
national debt. So uh, you know, any kind of a
tax cut is going to be giving up some significant revenue.
So but there, you know, that's that's the why they
have the budget process, and he'll be working hard, you know,
with Congress. So you know, we are coming up near
the end of today's show, and I hope you enjoy
the show. I know that Scott and I certainly did.
(47:37):
Scott appreciate all the great info. I hope you enjoy
the rest of your week ahead and have an amazing
rest of your Sunday. Also, be sure to tune in
next week for another great show. Check out our website
Bouchet dot com for great content and information you have
been listening to Let's Talk Money, brought to you by
(47:58):
Bouchet Financial Group, where we help our clients prioritize their
health while we manage their wealth for life. I want
to thank you for tuning in with this morning. Hope
you enjoy the rest of your morning and have a
great week ahead. Thank you.
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