May 17, 2025 • 47 mins
Christy Smith, founder of Presley Wealth Management and Matt Kennedy, investment adviser representative, discuss issues that affect your retirement planning and how you can build a plan to help reduce risk and implement wealth accumulation strategies. Learn more at presleywealthmanagement.com and then, if you would like to have a conversation around your specific situation, set up an appointment online at meetwithusnow.com or by calling (225) 791-5773.
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Episode Transcript
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Speaker 1 (00:00):
When the news is national SOB, security system molatility, global turmoil,
interest rates, Rock.
Speaker 2 (00:04):
Dane, Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents Your Money Matters
with Christy Smith.
Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full pledge retirement plan.
Speaker 1 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 2 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 5 (00:49):
Welcome to your money Matters with Christy Smith and matth
Kennedy of Presley Wealth Management. I'm Mark Kelly. Glad you
are with us today. We talk retirement, we talk taxes,
we talk investments, we talk income play some paychecks and
are no longer coming in when you're retired. At the
end of the day, do you know where you are?
Do you have enough? Do you not have quite enough?
Do you know your situation? Can you retire? Well, when
(01:09):
can you retire? Are you gonna be okay? If you retire?
Will your money lasts as long as you need it?
That's a big one as well. You can always call
the team at Presley Wealth Management two two five seven
nine to one fifty seven seventy three and talk about
any or all of that because it's super super important
two two five seven nine to one fifty seven seventy three.
Easier to remember, I think, just go to the website
(01:31):
Meet with us now dot com. Set up a fifteen
minute phone call with one of the coaches at Presley Wealth.
Have a conversation. Here's my concerns, here's our concerns, Here's
what we think. What do you think that kind of stuff?
Meet with us now dot com? Hey, Christy, Matt, are
you guys ready to go?
Speaker 6 (01:46):
We are? Good morning.
Speaker 5 (01:48):
So Christy, what did what?
Speaker 4 (01:51):
Do you?
Speaker 5 (01:52):
Probably have so many Mother's Day presents now you don't
even know what to do with them? All?
Speaker 4 (01:55):
Well, I did have a great Mother's Day. My son
came and spent a night. Him and his wife spent
the night and cooked for me on Saturday. That was
really nice, just getting to spend quality time with them,
and then I had lunch with my daughter on Sunday,
who is a mother herself, and then my husband in
Presley got home on Sunday evening about six o'clock and
(02:18):
they weren't supposed to get home till Monday, So that
in itself made Mother's Day great that they were home.
Speaker 5 (02:23):
Without road doing Presley rodeo over the week.
Speaker 4 (02:26):
She wasn't in a rodeo, but she did have a
big barrel race in Perry, Georgia, and it didn't end
as well as she would have liked it to have,
so they came home a day early.
Speaker 5 (02:37):
She's spending too much time working at Presley Wealth Management.
Speaker 6 (02:41):
She is hungry to work.
Speaker 5 (02:43):
That's good.
Speaker 2 (02:44):
That is good.
Speaker 5 (02:44):
If you ever have questions about Medicare, Presley is the
one to handle that for you too. She could walk
you through all of that situation. Matt, I don't know
about this. I mean we've been you think back to
the Biden term as president, and we're going to be
in a recession. Then Biden's team changed the definition of
a recession, said not having a recession. They've been talking recession, recession, recession,
and Trump comes in you got tariffs, markets get a
(03:05):
little wonky, everybody gets a little bit nervous, and so
now they're like, oh, maybe it's a recession. Then they're
going well. And if tariffs come in, inflation could go up,
which really hasn't happened, but maybe it'll be stagflation. I
don't know that President Trump's ever done anything that's stagnant,
so I'm not sure stagflation is a factor here.
Speaker 2 (03:21):
What do you think?
Speaker 1 (03:22):
Do you have the time machine the uh Michael J.
Fox DeLorean from Back to the Future, go back to
about see if Christie remembers this, go back to about
a year and a half ago. There's a segment and
a show where I said, look, long term, my concern
isn't inflation, it's stagflation. So what is stagflation? We got
to know that very well in the seventies, right. Stagflation
(03:46):
is slower income growth, higher inflation, so your wages stall out,
but inflation keeps getting higher and higher and higher.
Speaker 2 (03:56):
Mark it's so hard, and.
Speaker 1 (03:57):
Christy, I think you'll agree, it's so hard to know
what the next shoe is gonna drop. I mean, you
look at this past week ninety day. Pauls On the tariffs. Hey, look,
we'll get this thing worked out down the road. The
stock market this past Monday just exploded higher.
Speaker 2 (04:12):
But the only sign that makes me a little worried Christy.
Speaker 1 (04:16):
Have you noticed that normally when the stock market rips
back like it has, that bond yields like the ten,
the thirty year or twenty year US Treasury contend to
go down. But yet stocks are rising, but so are
bond yields, which means bond prices are falling. And normally
that's a sign that there's an inflationary component that's still
in play.
Speaker 2 (04:36):
So I don't think we're out of.
Speaker 1 (04:36):
The woods yet, but I think if the Fed were
to cut interest rates, that would probably prevent any type
of a deep recession. I still think a mile recession
is on the horizon. That's my two cents.
Speaker 4 (04:48):
But if you listen to Jerome Powell, you know, just
a couple of weeks ago, he was talking about the
Fed's not choosing to lower interest rates simply because they're
concerned about inflation.
Speaker 2 (05:02):
Still.
Speaker 4 (05:02):
Yeah, and I think right now we're just in a
situation where everyone is they don't know what to think
right now.
Speaker 6 (05:11):
It's like, is this the new normal, Mark, just as.
Speaker 2 (05:14):
You were explaining, Trump is never the new normal.
Speaker 4 (05:17):
I mean, it's like you know, And it's funny because
in times where we see turbulence with the markets, and
while you know, last Monday was a good day, we
certainly can all agree we've seen turbulence. Most of our clients,
when they're coming in for their annual reviews, are not
really too concerned about that turbulence. And I think a
lot of that is due to their hopes and beliefs
(05:40):
in President Trump.
Speaker 1 (05:41):
But it's a dance, Christy, And you know, Trump has
to get along with Powell. Trump has to get along
with z As I see his name, the President of China,
Premiere or whatever title he goes by. There's a lot Look,
there's a lot of runway lift. They've got to get
this thing right. And one emotional outburst and I wonder
who would do that could derail things. But I mean,
(06:04):
look at what President Trump did on Sunday, the announcement
he made this past Sunday.
Speaker 2 (06:09):
Have y'all heard about this, Christy? Have you heard about this?
It's mind boggling.
Speaker 6 (06:12):
I'm not sure you have to say it about prescription drugs.
Speaker 1 (06:14):
Oh yeah, it's monumental basically, and I'm paraphrasing. President Trump
came out and said, you know what, for too long,
If a medicine costs seven hundred bucks for a month's
supply in America, in Sweden, they're paying seventy no more,
big farm.
Speaker 2 (06:29):
I can't do that.
Speaker 1 (06:29):
We're only going to pay what the lowest prices in
other countries. And I'm paraphrasing, that's monumental. Now, that may
not be great for pharmaceutical stocks, but it's good for inflation.
Speaker 2 (06:40):
And if you're a retiree, it's even better.
Speaker 1 (06:42):
Now it's still not completely clear how Medicare and Medicaid
drug prices will be affected, but there's a lot of
positive steps that are taking place that could roll inflation back.
But as long as the economy remains fairly healthy, stagflation
isn't at place where we'll get into trouble. Is if
(07:02):
they can't bring inflation under control and people start suffering
lots and lots of layoffs a lah the oil patch
in Louisiana in the eighties, that, my friend, is ugly.
That is stagflation.
Speaker 5 (07:15):
So if you have questions, you have concerns, maybe you're
a little nervous, you can always call Christy Matt and
the team at Presley Wealth Management two two five seven
nine to one fifty seven seventy three. There's no cost
to you. Meet with us now dot com is probably easier.
That's just setting up your own fifteen minute phone call
with the team, have some questions, concerns, and then you
figure out to all, right, do we need to go
anywhere from there or do I have all the information.
(07:36):
I'm good to go. I don't need Christian Matt, No, no,
until you have the call meet with usnow dot com. So,
whether it's stagflation, inflation, recession, Christy. At the end of
the day, when you sit down with clients and you
create that planning process, a smart process, you walk people
through at the end of the day, you've talked about
all that before. Hey, the market, because it doesn't matter if
(07:57):
you're retired twenty thirty years. You're gonna see the new presidents,
You're going to see new Congress, You're going to see
different taxes, You're going to see all kinds of market
up and down and yo yoing all over it. That's
part of your plan in it. So that's why you
guys don't get a lot of calls when things go
a little crazy exactly.
Speaker 4 (08:14):
You know what we do at Presley Wealth Management is
we work to build a complete holistic plan. You know,
chat GPT told me this weekend that holistic planning is overrated. Well,
in my opinion, holistic planning is critical in building a
(08:34):
solid retirement plan because what we want to do is
we want to take the retirement funds. We want to
build a plan that is going to drive the income
that our clients are looking for in good and bad times.
Speaker 6 (08:47):
How many times have you heard mark.
Speaker 4 (08:49):
In a bad period like two thousand and eight, people say, oh,
my advisor said I have to lower my income. Who
wants to hear that in retirement? So we see wealth
Management part of our smart plan is building a true
income plan. And in doing so, what we're going to
do is is we're going to diversify the assets. We're
going to use some off the table money. Typically we'll
(09:13):
use a fixed indextinuity for that, and it allows us
in periods that are turbulent, it allows us to continue
the income that the client's looking for without having to
make huge adjustments. And to me, that is what retirement
planning is all about having a plan that's going to
be good whether you're in good or bad times. So yeah,
(09:36):
this is what we do at Presley Wealth Management every day.
We believe a complete holistic plan is going to include
an income plan. So my question for you is, if
you're retired in the last five years, do you truly
have an income plan or do you just have investments?
Maybe you don't know. We'd love to help. We'd love
(09:57):
to give you a second opinion. You can go to
if you meet with us now dot com and schedule
a fifteen minute phone call and just start that process.
You know, working with us in the beginning is one
hundred percent. There is no financial commitment to get a
second opinion, and that's what we would love to do.
Go to meet with us now dot com and schedule
a fifteen minute phone call.
Speaker 1 (10:18):
Because the primary question most of you have about income
is how much can I afford to draw from the
savings I have?
Speaker 2 (10:24):
And will those savings be.
Speaker 1 (10:26):
Adjusted annually to take into account inflation risk and taxes?
They all work together. Now, that word holistic Christy does
maybe get overused, but what holistic means is my income
is affected by my taxes, my taxes are affected by
my income. My legacy is affected by the risk that
I take. The risk is tied to my income. Too
(10:48):
much risk, bad market, lower income. They're all joined together
so for that reason, since they're interrelated, and they're like
cogs in a machine. If you've got just investments, even
if the times have been good for you.
Speaker 2 (11:01):
Do you have a plan that will survive long term?
Let's talk.
Speaker 1 (11:05):
She gave you the number two two five seven nine
one five seven seven three seven nine one five seven
seventh three. You'll get the machine, leave a message and
we'll call you back Monday and set up a time
to chat on the phone and then meet face to
face and start building your long term retirement plan.
Speaker 2 (11:22):
Seven nine one five seven seven three.
Speaker 5 (11:25):
So if you had the DeLorean time machine vehicle to
go back in time, if you went back to nineteen
sixty five, would it have been wise to buy shares
of Berkshire Hathaway that was selling for less than twenty bucks.
Speaker 2 (11:35):
Yes, it would have been very wise. Because today, if you'd.
Speaker 5 (11:38):
Be one day shares almost eight hundred thousand dollars.
Speaker 2 (11:41):
Crat, you'd be a billionaire just by buying a few shares.
That's crazy.
Speaker 5 (11:44):
That is, Hey, we're just getting started on your money
matters with Christy Smith and Met Kennedy Presley Wealth Management.
I work more right after this.
Speaker 7 (11:53):
Worried your financial strategy is missing something, Presley Welth wants
you to feel confident going into retirement. See how you're
doing with the free visit by going to the Presleygroup
dot net. That's the Presleygroup dot net or call eight
sixty six three nine ozho twelve fifty two.
Speaker 1 (12:13):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money?
Speaker 5 (12:20):
All?
Speaker 1 (12:20):
Will the government take a bigger chunk than you thought?
Remember you still may owe taxes on that money, but
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes.
Speaker 2 (12:37):
It's your money. You deserve to know what's at stake.
Speaker 1 (12:40):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, will
work just as hard to help you keep it. Presley
Wealth Management seven nine one five seven seven three.
Speaker 7 (12:57):
Investment advisory services offer through eight U Wealth Management LLC,
a registered investment advisor.
Speaker 6 (13:03):
Investing involves risk.
Speaker 7 (13:04):
Always consult with the qualified tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations. Interest rates are on the rise, So what
does that mean for your retirement? Find out by calling
the Presley Wealth Management Team now eight six six three
nine oh twelve fifty two. That's eight six six three
(13:27):
nine oh twelve fifty two.
Speaker 5 (13:30):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management Team is here to
help you figure out where you are on that road
to retirement. They'll walk you through the smart process you
think about it, Yes, sources of income in medical healthcare,
a advanced financial planning or risk management, t tax efficient strategies,
and it's all everybody situation is unique. So all of
(13:52):
those plans go into everybody's plan, but what's actually in
them is different because it all depends on you. Two
two five seven fifty seven seventy three is a number,
and you can always go to meet with us now
dot com and you set up your own fifteen minute
phone call with the team at Prosy Wealth Management. Retirement
should be a great time, not a super stressful time,
you know, Christy. One of the fun things that we do.
(14:13):
We try to do it every week. I think, don't
we It seems like we got to talk taxes. Why
didn't we talk taxes so much? Why are tax strategy
such a crucial to a degree often overlooked aspect of
retirement preparation. Why is that?
Speaker 4 (14:26):
Well, because Matt loves when I say this, you don't
know what you don't know. So for us, the biggest
question when when many people come in to meet with us,
is can I retire and have enough income?
Speaker 6 (14:38):
That's number one question.
Speaker 4 (14:40):
The funny thing is is that you know, taxes is
normally the least of their concerns because they honestly don't
understand that long term they can end up paying more
in taxes than they even did while they're working. And
so our software does a great job being able to
teach that. And I got to tell you Mark, most
people that come in to meet with us taxes clearly
(15:00):
becomes the number one issue.
Speaker 6 (15:03):
Not income.
Speaker 4 (15:03):
We can easily generate the income. It's looking at the
long term tax burden that is the major problem.
Speaker 1 (15:10):
And I think Christie, if I may interject, I think
it's because taxes are silent, right, You're used to paying them.
They when you're working, the taxes get sucked out of
your paycheck, and so it's kind of just a silent
thing that's there that we accept.
Speaker 2 (15:25):
Most of you.
Speaker 1 (15:26):
It's human nature, right, most of you focus on what
mostly the risk, Oh, I see the market.
Speaker 2 (15:31):
Going up and down. You focus on the short term.
Speaker 1 (15:35):
But in the long term, it's the taxes that I
argue will probably have a greater impact on your retirement
success and your legacy than the risk. Now, risk can
be damaging if you take a major market meltdown right
when you retire.
Speaker 2 (15:50):
But what do you think about that, Christy? Long term?
Speaker 1 (15:52):
Again, I think people don't focus on taxes because that's.
Speaker 2 (15:56):
Down the road for most people.
Speaker 1 (15:58):
But what you don't understand is the more taxes you
have to pay, the less income you have in retirement,
the less legacy you leave for your family, and the
greater burden you have over many, many years, many of
you will be retired twenty five thirty years. Your tax
burden isn't just a market correction that lasts a month.
It's a long time problem. Christy, Well, it actually is.
Speaker 4 (16:20):
But for me, what is an eye opener is that
for many of our of our clients that want to
retire at say sixty two or even earlier, a lot
of times their concern is health insurance. So they're wanting
to look at, Okay, how are we going to cover
the cost of health insurance between age say sixty two
(16:42):
and sixty five. And they've saved enough to be able
to retire. But the problem is for many is they've
saved so much in pre tax money that we have
to be concerned about, you know, their adjustable gross income
because number one, we don't want them to pay more
for health insurance than what's necessary. So if they've done
proper tax planning, a lot of times they can retire
(17:05):
at sixty two and still maybe even qualify for a
subsidy for the Affordable Health Care Act and get good
health insurance and pay a reasonable amount for it.
Speaker 6 (17:15):
But they're able to do that because.
Speaker 4 (17:16):
They generate income from pre tax money and after tax
money it's all about having a plan.
Speaker 6 (17:25):
Now.
Speaker 4 (17:25):
You have to remember that when you turn sixty five,
the federal government's going to look at your income beginning
at age sixty three to determine how much you're gonna
pay for your ARM, your Part B Medicare benefits, or
are you going to have an ARMA penalty. So people
think about taxes in terms of just the effective rate
they're paying in taxes every year. But we take a
(17:46):
holistic approach, looking long term and how that income is
going to affect the entire plan. So we want to
typically plan ahead so that we can help eliminate high
costs for health insurance if they want to retire before
age sixty five. But it's all about having a plan now.
You want me to tell you the real kicker mark
for us is when we have a married couple that
(18:09):
we're meeting with. They're retired sixty two years old. They
have a million, million and a half in pre tax money.
When they look at the amount of expenses the money
they're gonna need in retirement to live on, they really
don't need very much, you know. They they're going to
file their Social Security benefits. Some will have a pension
(18:30):
from a federal government. Some will have a like a
teacher's pension, things like that, and when you look at
their sources of income versus their need, they really don't
need that much. But the problem is is if you have,
you know, a million and a half dollars in pre
tax money, at some point Uncle Sam says, hey, we
(18:50):
want you to pay the tax bill. You get further
down the road, you're let's say, even like age eighty
and one of the cup, one of the persons in
that married cup passes away, you still have this.
Speaker 6 (19:03):
Big pre tax account.
Speaker 4 (19:05):
So now we have a single person, you know, filing
a tax return being forced to take a high required
minimum distribution, which means that person is going to end
up paying so much more in taxes than they ever
did in their working years. And now they're even getting
hit with arma penalties on top of that, right because
they're having to take the required minimum distribution. So again,
(19:28):
when we think about taxes, like, taxes are not going
to stay low indefinitely. When you look at how the government,
the income the government is paying in versus the debt
the government is paying out, it makes common sense that
taxes are not going to stay this low indefinitely, So
you owe it to yourself to look and say, how
(19:50):
can I lower this long term tax burden? You know,
over time because slow and steadies what's going to win
the race when you're tax planning, So how how can
I begin to do that?
Speaker 2 (20:01):
Now?
Speaker 4 (20:01):
If you're young, how can you begin to do that
within your current four oh one K plan? Now mark
most people are thinking, oh, well, the only way to
do that is a wroth conversion or saving into wrath,
But there's actually other strategies available that will allow someone
to start growing their wealth in a never tax bucket.
(20:22):
It's not just wroth conversions, guys. There's other strategies available.
And I'll tell you what. When I give my kids
financial advice, and they don't ask for it often, but
when they do, I know they're serious, and it's normally
about taxes, and I literally tell them save as much
as you can long term and never tax money.
Speaker 6 (20:45):
So we want to teach.
Speaker 4 (20:46):
Our clients and prospects how to do that, and again,
it's not all about wroth conversions, So we would love
to help you with it. Give us a call at
seven nine one five seven seventy three and schedule a
fifteen minute phone call just to start the conversation, or
you can go to meet with usnow dot com.
Speaker 5 (21:04):
So, Matt, we certainly get caught up in the markets
going up and down and all of that, and holy
count of market's dropping. We're losing money. But do you
think maybe at the end of the day, when we're
all gone, that maybe we could have actually had bigger
savings by using the tax code in our favor than
actually the market.
Speaker 1 (21:23):
Yes, it's exponential as well. If you're young and you
save into wrath, the difference when you're retired and then
of R and d age can be monumental. I mean,
there's calculators we can show you. Like Christy was saying, though,
if you've saved pretax almost all of your life and
now you're at the cusp of retirement or just into retirement,
(21:43):
you may need a strategy in addition to WROTH conversions
that can leverage time so that the tax implications down
the road are sped up, if you will. But the
bottom line is I completely agree. I make a personal
choice here. I don't mind telling you. I've told Christy this.
We have a WROTH four oh one k here. Now,
every rule of the book says that as a fifty
(22:05):
eight year old making decent money able to max out
my four oh one K, that I should be saving
pre tax because I don't have any kids at home.
I can't write off Mia and Penny, you know. I mean,
I don't have any tax breaks. So as a married
guy filing jointly, I should be doing all pre tax, right, Christy,
I don't. I'd use one hundred percent WROTH and my
CPA every year. Why don't you do that because all
(22:26):
you're doing is paying more taxes. But that means that
when I get ready to take this money out down
the road, I've taken my tax beating now don't have
to worry about it. And so I mean that's a
personal decision. I'm not saying you should run out if
you're five, ten years, three years away from retiring and
suddenly switch to all WROTH. But I work in this
business every day, and I understand the power of if
(22:49):
I can compound my money.
Speaker 2 (22:51):
But I'm compounding off of a.
Speaker 1 (22:53):
Tax free number versus a taxable number. It can be
mind blowing. Hey, for you engineers out there, we'll show you.
We've got the software to say if you do this now,
here's the outcome later. And if you don't do this now,
here's the outcome later. And in many cases, by the
time you're in your late eighties, it can be a
(23:14):
three four hundred thousand dollars difference from many clients we
can help. We'll show you seven nine to one five
seven seven three the area codes two two five seven
nine one five seven seven three, or like Christy said earlier,
go to www dot meet with us now. That's meet
with us now. Just pick out a time on there
(23:36):
for a brief phone call. We'll sit down on the
phone together and go over where you stand how we
can help. Then we'll set up an in person, no cost,
no obligation meeting seven nine one five seven seven three.
Speaker 5 (23:46):
So we all think of diversification when it comes to
the market. Do we think about diversification when it comes
to taxes. We're gonna touch on that when we come
back right here on your Money Matters with Christy Smith
and Matt Kennedy a Presley Wealth Management.
Speaker 8 (24:00):
Sam might need a loan soon from you. We have
over thirty four trillion dollars in national debt. Where do
you think the money to pay for that's going to come?
From taxes. Believe it or not, taxes are at historic
lows right now, but how much longer will that last?
A roth Ira conversion might be a good option when
planning for your retirement because you can pay lower taxes
(24:20):
now and avoid potentially higher taxes later. Christy Smith and
the team at the Presley Group have seen taxes rise
and fall. They know what options you have to potentially
reduce the amount of taxes you pay in retirement. Call
the team at the Presley Group and schedule your tax
analysis today. Eight sixty six three nine zero twelve fifty two.
That's eight six six three nine zero one two five
(24:40):
to two. Uncle Sam needs money, Don't let him take
it from you. Eight six six three nine zero twelve
fifty two. Investment advisory services offer through a wealth management
LLC A RETCH should investment advisor. Investing involves risk. Always
consult with the qualified tax advisor before making any decisions
regarding a roth conversion, as there may be additional tax considerations.
Speaker 7 (25:00):
You're listening to your money matters with Christy Smith and
Matt Kennedy to set up your fifteen minute meeting with
the Presley Wealth Management team called eight sixty six three
nine oh well fifty two.
Speaker 5 (25:15):
Glady with us today for your Money Matters with Christy
Smith and Matt Kennedy a Presley Wealth Management. You can
always learn more on the website Presleywealthmanagement dot Com. A
lot of great information there, find out upcoming events, find
out more about Christy, Matt and the team. You know, Matt,
we talk about in the investment world, and it's really
about diversification. If you have twenty mutual funds, yeah, you're
probably not diversified. If all of your money is in
the SMP, you're probably really not diversified because you're all
(25:37):
in the large, large companies. But I don't know if
we think about tax diversification. You were just talking about
putting money into the Rothboro and ko work. But there's
there's taxable, there's tax deferred, and there's tax free. Now
we all like tax free, but we don't get to
tax free without paying the taxes at that time, right.
Speaker 2 (25:56):
Right, correct?
Speaker 1 (25:57):
And I do agree that's Will stated Mark about diversify Again,
what did I say last segment? So often the focus
in the short term are the investments, and you have
to focus on that. That's smart, But it's the tax
diversification that's equally as critical, and so some of you
don't even know if you have the ability to save
(26:18):
differently through your workplace. You can typically call your human
resources department. You can look online, but if that's not
in your wheelhouse, give us a call. We'll be happy
to you. At least you know, help you glance at
your statement and know what your options really are.
Speaker 2 (26:32):
But that's powerful Mark. Tax diversification is equally as.
Speaker 1 (26:36):
Important as investment diversification, and sometimes the best place to
save might be two places. What if I told you
maybe the best thing to do is intpile all of
your money into your four oh one K. What if
you had a four to oh one k, but you
had to count outside of that that were designed specifically
(26:57):
for retirement as tax free income and protection for your
family through the form of insurance.
Speaker 2 (27:04):
So there's more than one way to skin the cat.
I know that's not say that, no, but you've said it, ya,
I know you heard it. Yeah, my dad says it
all the time.
Speaker 4 (27:12):
I hate it when he said that, but he I
would always hate it. But he did say.
Speaker 1 (27:15):
That there's more than one way to bake the biscuits.
So to say that's a good one.
Speaker 6 (27:19):
That's what I need to do.
Speaker 1 (27:20):
So anyway, there it is, so you don't know what
you don't know, and not saying you're dumb, it's just
you don't do this necessarily all the time. So if
you're glancing at your four O one K and you're wondering, well,
what are my options? Call us seven nine one five
seven seven three. We're not going to give you specific
investment advice about what funds to pick in your four
O one K, but we can at least let you
(27:40):
know what options you have as far as the tax
qualifications within your four oh one k.
Speaker 4 (27:46):
Now mark one of the things that I have discussed
with my children, for example Alexis and Danny.
Speaker 6 (27:51):
We're very fortunate.
Speaker 4 (27:52):
Because Danny's got a great job, does a great job
as a as a husband and provider for the family,
and he's very disciplined with saving inside of it four
O one K. But he always is interested in learning,
you know, like what is he doing everything right? Like
he'll come to me and say, look, miss Christy, this
is what I'm doing.
Speaker 6 (28:09):
One of the.
Speaker 4 (28:09):
Times that he came to me and was showing it
to me, I said, yeah, but you know, you've got
life insurance through your job.
Speaker 6 (28:18):
Alexis is a stay home mom.
Speaker 4 (28:19):
They have three children, all under age seven, so you
definitely need life insurance. And I would think you need
more life insurance than what you actually have through your job.
So one of the things that he ought to consider
doing is utilizing a universal life insurance contract, like an
indexed universal life insurance contract. Man, you might be thinking
(28:41):
why do that, Like, well, first of all, when you're young,
the cost of insurance is very low, great investment actually,
And then we look at the fact that he can
overfund that. Instead of putting so much into his four
oh one K, which he's putting way more than what
the company is matching, he can fund the index universal
life build up a cash value that's not at risk
(29:04):
due to market conditions. And even if he needed to
use some of that money in the future not for retirement.
Maybe he needs to use it for his children to
go to college. Maybe he needs to use it because
he's got one daughter that's going to get married one day.
You know, in an index universal life contract, you can
actually take money out of that contract tax free to
(29:24):
use for things besides retirement. So for me, as a
financial advisor, I said you know, maybe adding one more
layer of diversification to your plan is and it's also
helping with tax planning as well. Is looking at an
Index Universal life contract. Now, the funny thing is is
when you say the word insurance, most people like their
(29:45):
intennas go up.
Speaker 2 (29:46):
You know.
Speaker 4 (29:47):
The reality is insurance costs are so low when you're
young that it's probably one of the smartest investments you
can make. And if I'm not mistaken, you know, big
families like the Rockefellers really utilize the tax codes with
insurance to build uber wealth.
Speaker 6 (30:06):
So why shouldn't we.
Speaker 4 (30:07):
You know, it's all about learning and what's available and
how you can use it. And you know, we hear
all these strategies every day on social media. We just
don't really understand that that person talking on the TikTok
video is talking about an Index Universal life contract.
Speaker 6 (30:23):
You know, yeah, I know the phrases. I just don't
want to say.
Speaker 4 (30:27):
I'm on the radio, but you know it's like a
hook and you're thinking, man, that sounds really good.
Speaker 6 (30:31):
I need to check into that.
Speaker 4 (30:32):
But what it is is using your own money. You know,
there was a company out there called it Bank on Yourself.
I'm not calling it bank on yourself, but but it
kind of gives you the impression of what you're doing.
You're using your own money to fund your your life
insurance contract. You can take money out tax free if
you've done it properly. Now there are guidelines you want
(30:54):
to make sure you set it up properly. But again
it all goes back to tax diversification mark because people
that the only way they can save in after taxes
either raw or just stocking it away in a you know,
checking savings or money market account. And there's so many
other ways to plan. I would encourage you to learn
your options because I believe and do know factually, for
(31:16):
most of our clients, taxes is the number one issue.
They may not realize it when they come in. Originally
they think income is. But when we've created the long
term plan, what we can see is the big picture,
taxes are not going to remain where they are now indefinitely.
So why not create a plan?
Speaker 5 (31:37):
Meet with us now dot com, set up your own
fifteen minute phone call I Christy, Matt and the team
at Presley Wealth Management. There is no cost, obligation, no pressure,
no judgment. You know, Matt Christy talked about the IRMA
income related monthly adjusted amount. Is that close?
Speaker 1 (31:52):
Yes, that's exactly Well, some people think your cheesier, you're
aunty from Mississippi IRMA.
Speaker 6 (31:58):
What's that Farmerma?
Speaker 2 (32:00):
I call her mother IRMA and erma. You just have
to be careful. You don't want to get jam.
Speaker 5 (32:03):
You know you've got IRMA. You got SOB security taxes
fifty percent or eighty five percent, depending on the amount
of money. Possibly you could be taxed on SO security
for see what happens with President trumple they get rid
of the federal taxes for all of that. So it
is a moving target. But withdrawals once you get into retirement.
We talk a lot about pre retirement, but when you're
in retirement, where you pull and how you pull from
different accounts can make a huge difference.
Speaker 2 (32:25):
I would think makes a big difference.
Speaker 1 (32:28):
A lot of people go into retirement and uh, maybe
how many times as a sappen Christie, Well, you know,
we've saved up forty thousand dollars of cash and we
already have ten thousand in the checking accounts, So we're
just going to burn through the cash for a while.
Maybe that's not the right move. Maybe you should spend
some of your taxable money. There's so many factors. Listen
(32:50):
when you hear terms like IRMA and medicare.
Speaker 2 (32:54):
And part A, part B, part C, D E F G,
h ijk ELMA.
Speaker 1 (32:58):
When you hear all of this social sec security, when
you hear filing a spousal benefit, when you hear all
these crazy things, it can be overwhelming. I will tell
you that I think what overwhelms so many people is
not just the taxes and the investments, but boy, the
stuff with the government, social security, medicare. What we do
is we put it all together for you. It's a
(33:19):
jigsaw puzzle. My wife loves jigsaw puzzles, so it's a
jigsaw puzzle. It's a thousand piece puzzle just thrown out
on the table and you're staring at it and you're thinking,
oh my gosh, I'm overwhelmed. You know what, We put
together jigsaw puzzles every day. It's what we do because
we have practice putting together many, many, many jigsaw puzzles.
So if you feel scattered, if you feel like you
don't quite know what to do or what changes you
(33:42):
should make, if you're already retired, it's always a no cost,
no obligation, evaluation of where you stand seven nine one
five seven seven three that's two two five seven ninety
one fifty seven seventy three. Or again visit www dot
meet with us now dot com. Pick a fifteen minute window.
We'll do a phone call and talk about what you need.
Speaker 5 (34:04):
Christian Matt back with our final segment of Today's Your
Money Matters right after that.
Speaker 7 (34:09):
You can be five or ten years away from retirement,
or it could be tomorrow. If you have financial concerns
about retirement.
Speaker 6 (34:17):
Call Christy Smith and the team.
Speaker 7 (34:19):
At Presley Well eight six six three nine oh one
two five two that's eight six six three nine oh
twelve fifty two. Let them ease your concerns by sitting
down for a complimentary first meeting eight six six three
nine oh twelve fifty two.
Speaker 2 (34:38):
Stop for a moment, think about this.
Speaker 1 (34:40):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 2 (34:45):
All? Will the government take a bigger chunk than you thought?
Speaker 1 (34:48):
Remember you still may owe taxes on that money, But
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes. It's your money, you deserve
to know what's at stake. Right now, taxes are historically low,
(35:08):
but they won't be this low forever. So call us
at seven nine one five seven seven three. That's seven
nine one five seven seven three. Look, you work hard
for your money, will work just as hard to help
you keep it. Presley Wealth Management seven ninet one five
seven seven three.
Speaker 7 (35:23):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with the
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. Christy Smith of
Presley Wealth Management wants to advocate for you, making sure
(35:45):
you have the retirement you have always won it. Call
eight sixty six three nine oh twelve fifty two and
make sure Presley Wealth is the right fifth for you.
Speaker 6 (35:55):
You won't know until you call eight.
Speaker 7 (35:57):
Sixty six three nine oh twelve fifths.
Speaker 5 (36:01):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management I'm Mark Kellyott. Glad
you are with us today again. If you have questions,
you're boy, you're not really sure. I wonder if I've
got enough. I wonder if we can retire. I wonder
if our money will last as long as we need it.
Meet with usnow dot com. No cost, that says setting
up a fifteen minute phone call with one of the
coaches or Pressley. Well, no cost to you meeting with
(36:22):
us now dot com to get some answers, or you
can always call them at two two five seven nine
to one fifty seven seventy three. I thought this would
be kind of a fun way to finish today. We've
talked about a lot of things we always do, but
this one is about myths, retirement myths, and Matt, I'm
going to start with you, then I'll go to Christy.
I've got six retirement myths that we got to get
into in these final nine point two minutes of the program.
(36:45):
So here you go, Matt. First myth, and this one
I imagine could be well. Maybe the first myth is
that you will spend much less in retirement. A lot
of people think they're going to spend less. Obviously, we
know some spend a lot more. How do you see
that myth as we're going to spend less in.
Speaker 1 (36:58):
Retirement, you may down the road. So let me clarify this.
But Christy and I like to use this phraseology here.
You have go go go years, you have the slow
go years, and you have the no go years, go
go years. Especially for baby boomers, not so much from
our parents. You know the silent generation, and that generation
(37:18):
they would retire and quietly rock. I remember my grandfather
sitting on the front porch smoking those Lucky Strikes that
he got addicted to during World War Two when he
was in the Japanese theater.
Speaker 2 (37:29):
But our generation is not like that.
Speaker 1 (37:31):
I tell you that the biggest mistake you can make
is thinking that you're in your expenses will plummet the
day you retire. I'll bet you you'll spend seventy five
to eighty percent of what you're retiring now. Now what
helps is if you're not at the job anymore, you're
not putting money into a four to oh one K,
you're not paying FIKA in social security taxes, you're not
burning gas to go to work. But you'll spend a
(37:52):
good bit. So keep in mind, go go slow, go,
no go. And when we build out our retirement money
map to show you will my app sets make it
through retirement, we're going to take that into account and
we're going to warn you against saying you won't spend
too much. So that's a myth and we can attack
that and show you what the actual facts would be.
Speaker 5 (38:11):
All right, Christy, the next myth and if you need
to phone a friend, you call your daughter, talk with Presley.
Here you go. Medicare will cover all of our healthcare
costs once we get on it at the age of
sixty five.
Speaker 6 (38:24):
Well, I mean, the thing is is that.
Speaker 4 (38:27):
Medicare is a you know, a great system in my opinion,
and I often refer to turning age sixty five going
onto Medicare. I say, oh, we can do the Medicare
happy dance. Because for the most part, when you combine
a Medicare benefit with a Medicare supplemental plan or even
a Medicare advantage plan, you are going to have a
(38:47):
good bit of your medical cost covered. But there are
some things that Medicare does not cover, like Medicare doesn't
typically cover dental Medicare doesn't typically cover like routine eye
exams or even glasses. Now, maybe a Medicare advantage plan
would supplement that.
Speaker 6 (39:02):
There's a lot of nuances.
Speaker 4 (39:03):
But the thing is is that for most people, they
believe that their medical expenses are going to be the
biggest concern in terms of health care in retirement, But
in reality, your actual medical cost in retirement and on
Medicare are not the biggest expense. The biggest expense that
(39:26):
we typically see is going to come with long term care. Now,
I know there's a lot of intent is going up
saying long term care, I'm never going into a nursing home,
when we have to think about the fact that most
long term care is not given in a nursing home,
and we're using long term care services now not just
because we're sick, but because we're living so long that
(39:47):
we simply need help. So long term care services can
include someone coming help in your home, maybe assisted living.
You know, I say I would move into an assistant
living today if my husband would let me, because some
of them are very nice, and no, you know, no,
But the reality is is Medicare does not cover true
(40:10):
long term care costs, and that's where we see the
bulk of medical cost or are cost associated with care
in retirement. It's going to be done. It's going to
be used on long term care services. The Medicare system is,
along with a supplement or or advantage plan, is going
to do a great job covering the bulk of true
(40:31):
medical expenses. But again, I think it's critical to have
long term care planning built into your plan. You know,
it's a very high statistic. With a married couple years ago,
it was one out of two we'll use uh, some
form of long term care services. I'm not sure if
that's the same statistic up today. It's going to make
me look at it right now. But you know, it's
(40:52):
a very high statistic. And the reason it's so high
is because we're using it now for for different reasons
than we would have you know, thirty years ago. And
you have to understand that you if you don't build
in a plan to pay for that care, because Medicare
does not cover long term care cost, if you don't
(41:14):
have that built into your plan, then that can destroy
your plan. So we want to make sure that we
have addressed that in building our complete plan.
Speaker 5 (41:23):
Two two five seven nine to one fifty seven seventy three.
If you'd like to learn more. This is a big
area that you really don't want to overlook it. Certainly,
if you've seen it in your family long term care,
you certainly look at this a little bit differently. I
think two two, five, seven, nine to one fifty seven
seventy three. And again, you can always go to meet
with us now dot com set up your own fifteen
minute phone call. Mad I'm gonna skip ahead a little
bit because I think this one's kind of interesting. Hey,
(41:44):
you know what, you should have all of your debt
paid off before you retire. Now, I think we like that,
but is that really necessary?
Speaker 1 (41:51):
It's more of an emotional decision for some people. Uh,
we kind of have sort of a loose general rule
of thumb. You walk in, you're about to retire, and
I want to pay off my house's eighty grand. I
want to pull a bunch of money out of my
four oh one k or maybe I want to take
some of my lump some pension and pay off the house.
Is that wise? Well, what's your interest rate? Many of
you ended up with two and a half and three
(42:12):
percent mortgages. Maybe in that case it's wiser to actually
keep paying the note, But it is an emotional decision,
but it is a person by person decision. The nice
thing is we have software and we can look at
an amateurization chart. Hey, how much will you pay over
the life of what the loan that's remaining versus how
much could you potentially earn even in a safe investment
(42:36):
long term, So we have to look at that.
Speaker 2 (42:38):
And not saying you shouldn't do it.
Speaker 1 (42:39):
It is a person by person decision, but some counsel
on that from our experience, would probably be wise.
Speaker 5 (42:45):
Here's one Christy, and I mean, I'm sixty five, so
there's no reason I even think about this yet. I
don't have to worry about it till I probably eighty
eighty five. But legacy planning, I can wait on that
right till I'm in my eighties or well.
Speaker 4 (42:56):
I actually think people should have a legacy plan, you know,
early in life. I mean, we look at my sister
as an example. My sister passed away at age fifty
with a brain aneurysm immediately like there was no time
to plan so and unfortunately, in that situation, because she
didn't have a plan, everything is left up to the
(43:17):
court systems, and that tends to not be pleasant. So
I think everyone needs a legacy plan. Now, for most
of our clients, we have to start going a little
deeper in determining do they need a simple will? I
believe most of them do need power of attorneys from
medical and financial. However, you hear all the time or
(43:41):
read or see, you see that people are being encouraged
to have a trust. So there's different types of trust.
And some people do need a trust, some people don't.
Some need a revocable trust, some need a irrevocable trust.
It really depends on what are you creating the trust for.
So there's a lot of different components when we think
(44:03):
about legacy planning. But I would say the least amount
is everyone needs a last will and testament and do
you need power of attorneys for medical and financial in
case you're not able to make those decisions yourself.
Speaker 5 (44:18):
How hard are those to do?
Speaker 6 (44:19):
They're very simple. They're actually very simple.
Speaker 1 (44:22):
Lawyers have to do them in the most case. I mean,
you can do online resources, but be careful doing that because.
Speaker 4 (44:28):
You're matt Not to interrupt you, but you could even
use a notary, but I'll discourage that correction. You actually
have a client who used a notary did their plan.
It was it was a blended family. And then when
one of them passed away, the children, remember blended family,
challenged it and actually won in a quarter of law
because it was done by a notary and it wasn't
done up to standard with Louisiana law.
Speaker 2 (44:50):
Yeah, be careful.
Speaker 4 (44:51):
So I do encourage a lawyer create the documents, but honestly,
they're not expensive and fairly simple to do.
Speaker 1 (44:58):
Yeah, and we have a relationship with attorneys that we've used.
Can I just say this, Christy, I think, and I
hope you'll agree. You have to be careful because there
are some attorneys who do a state planning that a trust,
which is significantly more expensive than a will, a trust
is the answer for everything. Don't pay for something you
don't need, and so let's evaluate what you do need
(45:19):
and then go seek the legal counsel. We're not attorneys,
we're not going to practice law, but at least we
can arm you with the right questions to ask to
know in your situation how you should proceed.
Speaker 2 (45:29):
I hope that clears up some myths.
Speaker 1 (45:31):
We're always here to help seven nine one fifty seven
seventy three seven nine one five seven seventy three. Meet
with usnow dot com.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all offers products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Presley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products, never securities or investments. Insurance guarantees are backed
by the financial strength and claims paying abilities of the
issuing carrier. This radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with or endorsed by the
US government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 6 (46:58):
This radio show is a paid placement
When the news is national SOB, security system molatility, global turmoil,
interest rates, Rock.
Speaker 2 (00:04):
Dane, Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents Your Money Matters
with Christy Smith.
Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full pledge retirement plan.
Speaker 1 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 2 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 5 (00:49):
Welcome to your money Matters with Christy Smith and matth
Kennedy of Presley Wealth Management. I'm Mark Kelly. Glad you
are with us today. We talk retirement, we talk taxes,
we talk investments, we talk income play some paychecks and
are no longer coming in when you're retired. At the
end of the day, do you know where you are?
Do you have enough? Do you not have quite enough?
Do you know your situation? Can you retire? Well, when
(01:09):
can you retire? Are you gonna be okay? If you retire?
Will your money lasts as long as you need it?
That's a big one as well. You can always call
the team at Presley Wealth Management two two five seven
nine to one fifty seven seventy three and talk about
any or all of that because it's super super important
two two five seven nine to one fifty seven seventy three.
Easier to remember, I think, just go to the website
(01:31):
Meet with us now dot com. Set up a fifteen
minute phone call with one of the coaches at Presley Wealth.
Have a conversation. Here's my concerns, here's our concerns, Here's
what we think. What do you think that kind of stuff?
Meet with us now dot com? Hey, Christy, Matt, are
you guys ready to go?
Speaker 6 (01:46):
We are? Good morning.
Speaker 5 (01:48):
So Christy, what did what?
Speaker 4 (01:51):
Do you?
Speaker 5 (01:52):
Probably have so many Mother's Day presents now you don't
even know what to do with them? All?
Speaker 4 (01:55):
Well, I did have a great Mother's Day. My son
came and spent a night. Him and his wife spent
the night and cooked for me on Saturday. That was
really nice, just getting to spend quality time with them,
and then I had lunch with my daughter on Sunday,
who is a mother herself, and then my husband in
Presley got home on Sunday evening about six o'clock and
(02:18):
they weren't supposed to get home till Monday, So that
in itself made Mother's Day great that they were home.
Speaker 5 (02:23):
Without road doing Presley rodeo over the week.
Speaker 4 (02:26):
She wasn't in a rodeo, but she did have a
big barrel race in Perry, Georgia, and it didn't end
as well as she would have liked it to have,
so they came home a day early.
Speaker 5 (02:37):
She's spending too much time working at Presley Wealth Management.
Speaker 6 (02:41):
She is hungry to work.
Speaker 5 (02:43):
That's good.
Speaker 2 (02:44):
That is good.
Speaker 5 (02:44):
If you ever have questions about Medicare, Presley is the
one to handle that for you too. She could walk
you through all of that situation. Matt, I don't know
about this. I mean we've been you think back to
the Biden term as president, and we're going to be
in a recession. Then Biden's team changed the definition of
a recession, said not having a recession. They've been talking recession, recession, recession,
and Trump comes in you got tariffs, markets get a
(03:05):
little wonky, everybody gets a little bit nervous, and so
now they're like, oh, maybe it's a recession. Then they're
going well. And if tariffs come in, inflation could go up,
which really hasn't happened, but maybe it'll be stagflation. I
don't know that President Trump's ever done anything that's stagnant,
so I'm not sure stagflation is a factor here.
Speaker 2 (03:21):
What do you think?
Speaker 1 (03:22):
Do you have the time machine the uh Michael J.
Fox DeLorean from Back to the Future, go back to
about see if Christie remembers this, go back to about
a year and a half ago. There's a segment and
a show where I said, look, long term, my concern
isn't inflation, it's stagflation. So what is stagflation? We got
to know that very well in the seventies, right. Stagflation
(03:46):
is slower income growth, higher inflation, so your wages stall out,
but inflation keeps getting higher and higher and higher.
Speaker 2 (03:56):
Mark it's so hard, and.
Speaker 1 (03:57):
Christy, I think you'll agree, it's so hard to know
what the next shoe is gonna drop. I mean, you
look at this past week ninety day. Pauls On the tariffs. Hey, look,
we'll get this thing worked out down the road. The
stock market this past Monday just exploded higher.
Speaker 2 (04:12):
But the only sign that makes me a little worried Christy.
Speaker 1 (04:16):
Have you noticed that normally when the stock market rips
back like it has, that bond yields like the ten,
the thirty year or twenty year US Treasury contend to
go down. But yet stocks are rising, but so are
bond yields, which means bond prices are falling. And normally
that's a sign that there's an inflationary component that's still
in play.
Speaker 2 (04:36):
So I don't think we're out of.
Speaker 1 (04:36):
The woods yet, but I think if the Fed were
to cut interest rates, that would probably prevent any type
of a deep recession. I still think a mile recession
is on the horizon. That's my two cents.
Speaker 4 (04:48):
But if you listen to Jerome Powell, you know, just
a couple of weeks ago, he was talking about the
Fed's not choosing to lower interest rates simply because they're
concerned about inflation.
Speaker 2 (05:02):
Still.
Speaker 4 (05:02):
Yeah, and I think right now we're just in a
situation where everyone is they don't know what to think
right now.
Speaker 6 (05:11):
It's like, is this the new normal, Mark, just as.
Speaker 2 (05:14):
You were explaining, Trump is never the new normal.
Speaker 4 (05:17):
I mean, it's like you know, And it's funny because
in times where we see turbulence with the markets, and
while you know, last Monday was a good day, we
certainly can all agree we've seen turbulence. Most of our clients,
when they're coming in for their annual reviews, are not
really too concerned about that turbulence. And I think a
lot of that is due to their hopes and beliefs
(05:40):
in President Trump.
Speaker 1 (05:41):
But it's a dance, Christy, And you know, Trump has
to get along with Powell. Trump has to get along
with z As I see his name, the President of China,
Premiere or whatever title he goes by. There's a lot Look,
there's a lot of runway lift. They've got to get
this thing right. And one emotional outburst and I wonder
who would do that could derail things. But I mean,
(06:04):
look at what President Trump did on Sunday, the announcement
he made this past Sunday.
Speaker 2 (06:09):
Have y'all heard about this, Christy? Have you heard about this?
It's mind boggling.
Speaker 6 (06:12):
I'm not sure you have to say it about prescription drugs.
Speaker 1 (06:14):
Oh yeah, it's monumental basically, and I'm paraphrasing. President Trump
came out and said, you know what, for too long,
If a medicine costs seven hundred bucks for a month's
supply in America, in Sweden, they're paying seventy no more,
big farm.
Speaker 2 (06:29):
I can't do that.
Speaker 1 (06:29):
We're only going to pay what the lowest prices in
other countries. And I'm paraphrasing, that's monumental. Now, that may
not be great for pharmaceutical stocks, but it's good for inflation.
Speaker 2 (06:40):
And if you're a retiree, it's even better.
Speaker 1 (06:42):
Now it's still not completely clear how Medicare and Medicaid
drug prices will be affected, but there's a lot of
positive steps that are taking place that could roll inflation back.
But as long as the economy remains fairly healthy, stagflation
isn't at place where we'll get into trouble. Is if
(07:02):
they can't bring inflation under control and people start suffering
lots and lots of layoffs a lah the oil patch
in Louisiana in the eighties, that, my friend, is ugly.
That is stagflation.
Speaker 5 (07:15):
So if you have questions, you have concerns, maybe you're
a little nervous, you can always call Christy Matt and
the team at Presley Wealth Management two two five seven
nine to one fifty seven seventy three. There's no cost
to you. Meet with us now dot com is probably easier.
That's just setting up your own fifteen minute phone call
with the team, have some questions, concerns, and then you
figure out to all, right, do we need to go
anywhere from there or do I have all the information.
(07:36):
I'm good to go. I don't need Christian Matt, No, no,
until you have the call meet with usnow dot com. So,
whether it's stagflation, inflation, recession, Christy. At the end of
the day, when you sit down with clients and you
create that planning process, a smart process, you walk people
through at the end of the day, you've talked about
all that before. Hey, the market, because it doesn't matter if
(07:57):
you're retired twenty thirty years. You're gonna see the new presidents,
You're going to see new Congress, You're going to see
different taxes, You're going to see all kinds of market
up and down and yo yoing all over it. That's
part of your plan in it. So that's why you
guys don't get a lot of calls when things go
a little crazy exactly.
Speaker 4 (08:14):
You know what we do at Presley Wealth Management is
we work to build a complete holistic plan. You know,
chat GPT told me this weekend that holistic planning is overrated. Well,
in my opinion, holistic planning is critical in building a
(08:34):
solid retirement plan because what we want to do is
we want to take the retirement funds. We want to
build a plan that is going to drive the income
that our clients are looking for in good and bad times.
Speaker 6 (08:47):
How many times have you heard mark.
Speaker 4 (08:49):
In a bad period like two thousand and eight, people say, oh,
my advisor said I have to lower my income. Who
wants to hear that in retirement? So we see wealth
Management part of our smart plan is building a true
income plan. And in doing so, what we're going to
do is is we're going to diversify the assets. We're
going to use some off the table money. Typically we'll
(09:13):
use a fixed indextinuity for that, and it allows us
in periods that are turbulent, it allows us to continue
the income that the client's looking for without having to
make huge adjustments. And to me, that is what retirement
planning is all about having a plan that's going to
be good whether you're in good or bad times. So yeah,
(09:36):
this is what we do at Presley Wealth Management every day.
We believe a complete holistic plan is going to include
an income plan. So my question for you is, if
you're retired in the last five years, do you truly
have an income plan or do you just have investments?
Maybe you don't know. We'd love to help. We'd love
(09:57):
to give you a second opinion. You can go to
if you meet with us now dot com and schedule
a fifteen minute phone call and just start that process.
You know, working with us in the beginning is one
hundred percent. There is no financial commitment to get a
second opinion, and that's what we would love to do.
Go to meet with us now dot com and schedule
a fifteen minute phone call.
Speaker 1 (10:18):
Because the primary question most of you have about income
is how much can I afford to draw from the
savings I have?
Speaker 2 (10:24):
And will those savings be.
Speaker 1 (10:26):
Adjusted annually to take into account inflation risk and taxes?
They all work together. Now, that word holistic Christy does
maybe get overused, but what holistic means is my income
is affected by my taxes, my taxes are affected by
my income. My legacy is affected by the risk that
I take. The risk is tied to my income. Too
(10:48):
much risk, bad market, lower income. They're all joined together
so for that reason, since they're interrelated, and they're like
cogs in a machine. If you've got just investments, even
if the times have been good for you.
Speaker 2 (11:01):
Do you have a plan that will survive long term?
Let's talk.
Speaker 1 (11:05):
She gave you the number two two five seven nine
one five seven seven three seven nine one five seven
seventh three. You'll get the machine, leave a message and
we'll call you back Monday and set up a time
to chat on the phone and then meet face to
face and start building your long term retirement plan.
Speaker 2 (11:22):
Seven nine one five seven seven three.
Speaker 5 (11:25):
So if you had the DeLorean time machine vehicle to
go back in time, if you went back to nineteen
sixty five, would it have been wise to buy shares
of Berkshire Hathaway that was selling for less than twenty bucks.
Speaker 2 (11:35):
Yes, it would have been very wise. Because today, if you'd.
Speaker 5 (11:38):
Be one day shares almost eight hundred thousand dollars.
Speaker 2 (11:41):
Crat, you'd be a billionaire just by buying a few shares.
That's crazy.
Speaker 5 (11:44):
That is, Hey, we're just getting started on your money
matters with Christy Smith and Met Kennedy Presley Wealth Management.
I work more right after this.
Speaker 7 (11:53):
Worried your financial strategy is missing something, Presley Welth wants
you to feel confident going into retirement. See how you're
doing with the free visit by going to the Presleygroup
dot net. That's the Presleygroup dot net or call eight
sixty six three nine ozho twelve fifty two.
Speaker 1 (12:13):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money?
Speaker 5 (12:20):
All?
Speaker 1 (12:20):
Will the government take a bigger chunk than you thought?
Remember you still may owe taxes on that money, but
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes.
Speaker 2 (12:37):
It's your money. You deserve to know what's at stake.
Speaker 1 (12:40):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, will
work just as hard to help you keep it. Presley
Wealth Management seven nine one five seven seven three.
Speaker 7 (12:57):
Investment advisory services offer through eight U Wealth Management LLC,
a registered investment advisor.
Speaker 6 (13:03):
Investing involves risk.
Speaker 7 (13:04):
Always consult with the qualified tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations. Interest rates are on the rise, So what
does that mean for your retirement? Find out by calling
the Presley Wealth Management Team now eight six six three
nine oh twelve fifty two. That's eight six six three
(13:27):
nine oh twelve fifty two.
Speaker 5 (13:30):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management Team is here to
help you figure out where you are on that road
to retirement. They'll walk you through the smart process you
think about it, Yes, sources of income in medical healthcare,
a advanced financial planning or risk management, t tax efficient strategies,
and it's all everybody situation is unique. So all of
(13:52):
those plans go into everybody's plan, but what's actually in
them is different because it all depends on you. Two
two five seven fifty seven seventy three is a number,
and you can always go to meet with us now
dot com and you set up your own fifteen minute
phone call with the team at Prosy Wealth Management. Retirement
should be a great time, not a super stressful time,
you know, Christy. One of the fun things that we do.
(14:13):
We try to do it every week. I think, don't
we It seems like we got to talk taxes. Why
didn't we talk taxes so much? Why are tax strategy
such a crucial to a degree often overlooked aspect of
retirement preparation. Why is that?
Speaker 4 (14:26):
Well, because Matt loves when I say this, you don't
know what you don't know. So for us, the biggest
question when when many people come in to meet with us,
is can I retire and have enough income?
Speaker 6 (14:38):
That's number one question.
Speaker 4 (14:40):
The funny thing is is that you know, taxes is
normally the least of their concerns because they honestly don't
understand that long term they can end up paying more
in taxes than they even did while they're working. And
so our software does a great job being able to
teach that. And I got to tell you Mark, most
people that come in to meet with us taxes clearly
(15:00):
becomes the number one issue.
Speaker 6 (15:03):
Not income.
Speaker 4 (15:03):
We can easily generate the income. It's looking at the
long term tax burden that is the major problem.
Speaker 1 (15:10):
And I think Christie, if I may interject, I think
it's because taxes are silent, right, You're used to paying them.
They when you're working, the taxes get sucked out of
your paycheck, and so it's kind of just a silent
thing that's there that we accept.
Speaker 2 (15:25):
Most of you.
Speaker 1 (15:26):
It's human nature, right, most of you focus on what
mostly the risk, Oh, I see the market.
Speaker 2 (15:31):
Going up and down. You focus on the short term.
Speaker 1 (15:35):
But in the long term, it's the taxes that I
argue will probably have a greater impact on your retirement
success and your legacy than the risk. Now, risk can
be damaging if you take a major market meltdown right
when you retire.
Speaker 2 (15:50):
But what do you think about that, Christy? Long term?
Speaker 1 (15:52):
Again, I think people don't focus on taxes because that's.
Speaker 2 (15:56):
Down the road for most people.
Speaker 1 (15:58):
But what you don't understand is the more taxes you
have to pay, the less income you have in retirement,
the less legacy you leave for your family, and the
greater burden you have over many, many years, many of
you will be retired twenty five thirty years. Your tax
burden isn't just a market correction that lasts a month.
It's a long time problem. Christy, Well, it actually is.
Speaker 4 (16:20):
But for me, what is an eye opener is that
for many of our of our clients that want to
retire at say sixty two or even earlier, a lot
of times their concern is health insurance. So they're wanting
to look at, Okay, how are we going to cover
the cost of health insurance between age say sixty two
(16:42):
and sixty five. And they've saved enough to be able
to retire. But the problem is for many is they've
saved so much in pre tax money that we have
to be concerned about, you know, their adjustable gross income
because number one, we don't want them to pay more
for health insurance than what's necessary. So if they've done
proper tax planning, a lot of times they can retire
(17:05):
at sixty two and still maybe even qualify for a
subsidy for the Affordable Health Care Act and get good
health insurance and pay a reasonable amount for it.
Speaker 6 (17:15):
But they're able to do that because.
Speaker 4 (17:16):
They generate income from pre tax money and after tax
money it's all about having a plan.
Speaker 6 (17:25):
Now.
Speaker 4 (17:25):
You have to remember that when you turn sixty five,
the federal government's going to look at your income beginning
at age sixty three to determine how much you're gonna
pay for your ARM, your Part B Medicare benefits, or
are you going to have an ARMA penalty. So people
think about taxes in terms of just the effective rate
they're paying in taxes every year. But we take a
(17:46):
holistic approach, looking long term and how that income is
going to affect the entire plan. So we want to
typically plan ahead so that we can help eliminate high
costs for health insurance if they want to retire before
age sixty five. But it's all about having a plan now.
You want me to tell you the real kicker mark
for us is when we have a married couple that
(18:09):
we're meeting with. They're retired sixty two years old. They
have a million, million and a half in pre tax money.
When they look at the amount of expenses the money
they're gonna need in retirement to live on, they really
don't need very much, you know. They they're going to
file their Social Security benefits. Some will have a pension
(18:30):
from a federal government. Some will have a like a
teacher's pension, things like that, and when you look at
their sources of income versus their need, they really don't
need that much. But the problem is is if you have,
you know, a million and a half dollars in pre
tax money, at some point Uncle Sam says, hey, we
(18:50):
want you to pay the tax bill. You get further
down the road, you're let's say, even like age eighty
and one of the cup, one of the persons in
that married cup passes away, you still have this.
Speaker 6 (19:03):
Big pre tax account.
Speaker 4 (19:05):
So now we have a single person, you know, filing
a tax return being forced to take a high required
minimum distribution, which means that person is going to end
up paying so much more in taxes than they ever
did in their working years. And now they're even getting
hit with arma penalties on top of that, right because
they're having to take the required minimum distribution. So again,
(19:28):
when we think about taxes, like, taxes are not going
to stay low indefinitely. When you look at how the government,
the income the government is paying in versus the debt
the government is paying out, it makes common sense that
taxes are not going to stay this low indefinitely, So
you owe it to yourself to look and say, how
(19:50):
can I lower this long term tax burden? You know,
over time because slow and steadies what's going to win
the race when you're tax planning, So how how can
I begin to do that?
Speaker 2 (20:01):
Now?
Speaker 4 (20:01):
If you're young, how can you begin to do that
within your current four oh one K plan? Now mark
most people are thinking, oh, well, the only way to
do that is a wroth conversion or saving into wrath,
But there's actually other strategies available that will allow someone
to start growing their wealth in a never tax bucket.
(20:22):
It's not just wroth conversions, guys. There's other strategies available.
And I'll tell you what. When I give my kids
financial advice, and they don't ask for it often, but
when they do, I know they're serious, and it's normally
about taxes, and I literally tell them save as much
as you can long term and never tax money.
Speaker 6 (20:45):
So we want to teach.
Speaker 4 (20:46):
Our clients and prospects how to do that, and again,
it's not all about wroth conversions, So we would love
to help you with it. Give us a call at
seven nine one five seven seventy three and schedule a
fifteen minute phone call just to start the conversation, or
you can go to meet with usnow dot com.
Speaker 5 (21:04):
So, Matt, we certainly get caught up in the markets
going up and down and all of that, and holy
count of market's dropping. We're losing money. But do you
think maybe at the end of the day, when we're
all gone, that maybe we could have actually had bigger
savings by using the tax code in our favor than
actually the market.
Speaker 1 (21:23):
Yes, it's exponential as well. If you're young and you
save into wrath, the difference when you're retired and then
of R and d age can be monumental. I mean,
there's calculators we can show you. Like Christy was saying, though,
if you've saved pretax almost all of your life and
now you're at the cusp of retirement or just into retirement,
(21:43):
you may need a strategy in addition to WROTH conversions
that can leverage time so that the tax implications down
the road are sped up, if you will. But the
bottom line is I completely agree. I make a personal
choice here. I don't mind telling you. I've told Christy this.
We have a WROTH four oh one k here. Now,
every rule of the book says that as a fifty
(22:05):
eight year old making decent money able to max out
my four oh one K, that I should be saving
pre tax because I don't have any kids at home.
I can't write off Mia and Penny, you know. I mean,
I don't have any tax breaks. So as a married
guy filing jointly, I should be doing all pre tax, right, Christy,
I don't. I'd use one hundred percent WROTH and my
CPA every year. Why don't you do that because all
(22:26):
you're doing is paying more taxes. But that means that
when I get ready to take this money out down
the road, I've taken my tax beating now don't have
to worry about it. And so I mean that's a
personal decision. I'm not saying you should run out if
you're five, ten years, three years away from retiring and
suddenly switch to all WROTH. But I work in this
business every day, and I understand the power of if
(22:49):
I can compound my money.
Speaker 2 (22:51):
But I'm compounding off of a.
Speaker 1 (22:53):
Tax free number versus a taxable number. It can be
mind blowing. Hey, for you engineers out there, we'll show you.
We've got the software to say if you do this now,
here's the outcome later. And if you don't do this now,
here's the outcome later. And in many cases, by the
time you're in your late eighties, it can be a
(23:14):
three four hundred thousand dollars difference from many clients we
can help. We'll show you seven nine to one five
seven seven three the area codes two two five seven
nine one five seven seven three, or like Christy said earlier,
go to www dot meet with us now. That's meet
with us now. Just pick out a time on there
(23:36):
for a brief phone call. We'll sit down on the
phone together and go over where you stand how we
can help. Then we'll set up an in person, no cost,
no obligation meeting seven nine one five seven seven three.
Speaker 5 (23:46):
So we all think of diversification when it comes to
the market. Do we think about diversification when it comes
to taxes. We're gonna touch on that when we come
back right here on your Money Matters with Christy Smith
and Matt Kennedy a Presley Wealth Management.
Speaker 8 (24:00):
Sam might need a loan soon from you. We have
over thirty four trillion dollars in national debt. Where do
you think the money to pay for that's going to come?
From taxes. Believe it or not, taxes are at historic
lows right now, but how much longer will that last?
A roth Ira conversion might be a good option when
planning for your retirement because you can pay lower taxes
(24:20):
now and avoid potentially higher taxes later. Christy Smith and
the team at the Presley Group have seen taxes rise
and fall. They know what options you have to potentially
reduce the amount of taxes you pay in retirement. Call
the team at the Presley Group and schedule your tax
analysis today. Eight sixty six three nine zero twelve fifty two.
That's eight six six three nine zero one two five
(24:40):
to two. Uncle Sam needs money, Don't let him take
it from you. Eight six six three nine zero twelve
fifty two. Investment advisory services offer through a wealth management
LLC A RETCH should investment advisor. Investing involves risk. Always
consult with the qualified tax advisor before making any decisions
regarding a roth conversion, as there may be additional tax considerations.
Speaker 7 (25:00):
You're listening to your money matters with Christy Smith and
Matt Kennedy to set up your fifteen minute meeting with
the Presley Wealth Management team called eight sixty six three
nine oh well fifty two.
Speaker 5 (25:15):
Glady with us today for your Money Matters with Christy
Smith and Matt Kennedy a Presley Wealth Management. You can
always learn more on the website Presleywealthmanagement dot Com. A
lot of great information there, find out upcoming events, find
out more about Christy, Matt and the team. You know, Matt,
we talk about in the investment world, and it's really
about diversification. If you have twenty mutual funds, yeah, you're
probably not diversified. If all of your money is in
the SMP, you're probably really not diversified because you're all
(25:37):
in the large, large companies. But I don't know if
we think about tax diversification. You were just talking about
putting money into the Rothboro and ko work. But there's
there's taxable, there's tax deferred, and there's tax free. Now
we all like tax free, but we don't get to
tax free without paying the taxes at that time, right.
Speaker 2 (25:56):
Right, correct?
Speaker 1 (25:57):
And I do agree that's Will stated Mark about diversify Again,
what did I say last segment? So often the focus
in the short term are the investments, and you have
to focus on that. That's smart, But it's the tax
diversification that's equally as critical, and so some of you
don't even know if you have the ability to save
(26:18):
differently through your workplace. You can typically call your human
resources department. You can look online, but if that's not
in your wheelhouse, give us a call. We'll be happy
to you. At least you know, help you glance at
your statement and know what your options really are.
Speaker 2 (26:32):
But that's powerful Mark. Tax diversification is equally as.
Speaker 1 (26:36):
Important as investment diversification, and sometimes the best place to
save might be two places. What if I told you
maybe the best thing to do is intpile all of
your money into your four oh one K. What if
you had a four to oh one k, but you
had to count outside of that that were designed specifically
(26:57):
for retirement as tax free income and protection for your
family through the form of insurance.
Speaker 2 (27:04):
So there's more than one way to skin the cat.
I know that's not say that, no, but you've said it, ya,
I know you heard it. Yeah, my dad says it
all the time.
Speaker 4 (27:12):
I hate it when he said that, but he I
would always hate it. But he did say.
Speaker 1 (27:15):
That there's more than one way to bake the biscuits.
So to say that's a good one.
Speaker 6 (27:19):
That's what I need to do.
Speaker 1 (27:20):
So anyway, there it is, so you don't know what
you don't know, and not saying you're dumb, it's just
you don't do this necessarily all the time. So if
you're glancing at your four O one K and you're wondering, well,
what are my options? Call us seven nine one five
seven seven three. We're not going to give you specific
investment advice about what funds to pick in your four
O one K, but we can at least let you
(27:40):
know what options you have as far as the tax
qualifications within your four oh one k.
Speaker 4 (27:46):
Now mark one of the things that I have discussed
with my children, for example Alexis and Danny.
Speaker 6 (27:51):
We're very fortunate.
Speaker 4 (27:52):
Because Danny's got a great job, does a great job
as a as a husband and provider for the family,
and he's very disciplined with saving inside of it four
O one K. But he always is interested in learning,
you know, like what is he doing everything right? Like
he'll come to me and say, look, miss Christy, this
is what I'm doing.
Speaker 6 (28:09):
One of the.
Speaker 4 (28:09):
Times that he came to me and was showing it
to me, I said, yeah, but you know, you've got
life insurance through your job.
Speaker 6 (28:18):
Alexis is a stay home mom.
Speaker 4 (28:19):
They have three children, all under age seven, so you
definitely need life insurance. And I would think you need
more life insurance than what you actually have through your job.
So one of the things that he ought to consider
doing is utilizing a universal life insurance contract, like an
indexed universal life insurance contract. Man, you might be thinking
(28:41):
why do that, Like, well, first of all, when you're young,
the cost of insurance is very low, great investment actually,
And then we look at the fact that he can
overfund that. Instead of putting so much into his four
oh one K, which he's putting way more than what
the company is matching, he can fund the index universal
life build up a cash value that's not at risk
(29:04):
due to market conditions. And even if he needed to
use some of that money in the future not for retirement.
Maybe he needs to use it for his children to
go to college. Maybe he needs to use it because
he's got one daughter that's going to get married one day.
You know, in an index universal life contract, you can
actually take money out of that contract tax free to
(29:24):
use for things besides retirement. So for me, as a
financial advisor, I said you know, maybe adding one more
layer of diversification to your plan is and it's also
helping with tax planning as well. Is looking at an
Index Universal life contract. Now, the funny thing is is
when you say the word insurance, most people like their
(29:45):
intennas go up.
Speaker 2 (29:46):
You know.
Speaker 4 (29:47):
The reality is insurance costs are so low when you're
young that it's probably one of the smartest investments you
can make. And if I'm not mistaken, you know, big
families like the Rockefellers really utilize the tax codes with
insurance to build uber wealth.
Speaker 6 (30:06):
So why shouldn't we.
Speaker 4 (30:07):
You know, it's all about learning and what's available and
how you can use it. And you know, we hear
all these strategies every day on social media. We just
don't really understand that that person talking on the TikTok
video is talking about an Index Universal life contract.
Speaker 6 (30:23):
You know, yeah, I know the phrases. I just don't
want to say.
Speaker 4 (30:27):
I'm on the radio, but you know it's like a
hook and you're thinking, man, that sounds really good.
Speaker 6 (30:31):
I need to check into that.
Speaker 4 (30:32):
But what it is is using your own money. You know,
there was a company out there called it Bank on Yourself.
I'm not calling it bank on yourself, but but it
kind of gives you the impression of what you're doing.
You're using your own money to fund your your life
insurance contract. You can take money out tax free if
you've done it properly. Now there are guidelines you want
(30:54):
to make sure you set it up properly. But again
it all goes back to tax diversification mark because people
that the only way they can save in after taxes
either raw or just stocking it away in a you know,
checking savings or money market account. And there's so many
other ways to plan. I would encourage you to learn
your options because I believe and do know factually, for
(31:16):
most of our clients, taxes is the number one issue.
They may not realize it when they come in. Originally
they think income is. But when we've created the long
term plan, what we can see is the big picture,
taxes are not going to remain where they are now indefinitely.
So why not create a plan?
Speaker 5 (31:37):
Meet with us now dot com, set up your own
fifteen minute phone call I Christy, Matt and the team
at Presley Wealth Management. There is no cost, obligation, no pressure,
no judgment. You know, Matt Christy talked about the IRMA
income related monthly adjusted amount. Is that close?
Speaker 1 (31:52):
Yes, that's exactly Well, some people think your cheesier, you're
aunty from Mississippi IRMA.
Speaker 6 (31:58):
What's that Farmerma?
Speaker 2 (32:00):
I call her mother IRMA and erma. You just have
to be careful. You don't want to get jam.
Speaker 5 (32:03):
You know you've got IRMA. You got SOB security taxes
fifty percent or eighty five percent, depending on the amount
of money. Possibly you could be taxed on SO security
for see what happens with President trumple they get rid
of the federal taxes for all of that. So it
is a moving target. But withdrawals once you get into retirement.
We talk a lot about pre retirement, but when you're
in retirement, where you pull and how you pull from
different accounts can make a huge difference.
Speaker 2 (32:25):
I would think makes a big difference.
Speaker 1 (32:28):
A lot of people go into retirement and uh, maybe
how many times as a sappen Christie, Well, you know,
we've saved up forty thousand dollars of cash and we
already have ten thousand in the checking accounts, So we're
just going to burn through the cash for a while.
Maybe that's not the right move. Maybe you should spend
some of your taxable money. There's so many factors. Listen
(32:50):
when you hear terms like IRMA and medicare.
Speaker 2 (32:54):
And part A, part B, part C, D E F G,
h ijk ELMA.
Speaker 1 (32:58):
When you hear all of this social sec security, when
you hear filing a spousal benefit, when you hear all
these crazy things, it can be overwhelming. I will tell
you that I think what overwhelms so many people is
not just the taxes and the investments, but boy, the
stuff with the government, social security, medicare. What we do
is we put it all together for you. It's a
(33:19):
jigsaw puzzle. My wife loves jigsaw puzzles, so it's a
jigsaw puzzle. It's a thousand piece puzzle just thrown out
on the table and you're staring at it and you're thinking,
oh my gosh, I'm overwhelmed. You know what, We put
together jigsaw puzzles every day. It's what we do because
we have practice putting together many, many, many jigsaw puzzles.
So if you feel scattered, if you feel like you
don't quite know what to do or what changes you
(33:42):
should make, if you're already retired, it's always a no cost,
no obligation, evaluation of where you stand seven nine one
five seven seven three that's two two five seven ninety
one fifty seven seventy three. Or again visit www dot
meet with us now dot com. Pick a fifteen minute window.
We'll do a phone call and talk about what you need.
Speaker 5 (34:04):
Christian Matt back with our final segment of Today's Your
Money Matters right after that.
Speaker 7 (34:09):
You can be five or ten years away from retirement,
or it could be tomorrow. If you have financial concerns
about retirement.
Speaker 6 (34:17):
Call Christy Smith and the team.
Speaker 7 (34:19):
At Presley Well eight six six three nine oh one
two five two that's eight six six three nine oh
twelve fifty two. Let them ease your concerns by sitting
down for a complimentary first meeting eight six six three
nine oh twelve fifty two.
Speaker 2 (34:38):
Stop for a moment, think about this.
Speaker 1 (34:40):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 2 (34:45):
All? Will the government take a bigger chunk than you thought?
Speaker 1 (34:48):
Remember you still may owe taxes on that money, But
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes. It's your money, you deserve
to know what's at stake. Right now, taxes are historically low,
(35:08):
but they won't be this low forever. So call us
at seven nine one five seven seven three. That's seven
nine one five seven seven three. Look, you work hard
for your money, will work just as hard to help
you keep it. Presley Wealth Management seven ninet one five
seven seven three.
Speaker 7 (35:23):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with the
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. Christy Smith of
Presley Wealth Management wants to advocate for you, making sure
(35:45):
you have the retirement you have always won it. Call
eight sixty six three nine oh twelve fifty two and
make sure Presley Wealth is the right fifth for you.
Speaker 6 (35:55):
You won't know until you call eight.
Speaker 7 (35:57):
Sixty six three nine oh twelve fifths.
Speaker 5 (36:01):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management I'm Mark Kellyott. Glad
you are with us today again. If you have questions,
you're boy, you're not really sure. I wonder if I've
got enough. I wonder if we can retire. I wonder
if our money will last as long as we need it.
Meet with usnow dot com. No cost, that says setting
up a fifteen minute phone call with one of the
coaches or Pressley. Well, no cost to you meeting with
(36:22):
us now dot com to get some answers, or you
can always call them at two two five seven nine
to one fifty seven seventy three. I thought this would
be kind of a fun way to finish today. We've
talked about a lot of things we always do, but
this one is about myths, retirement myths, and Matt, I'm
going to start with you, then I'll go to Christy.
I've got six retirement myths that we got to get
into in these final nine point two minutes of the program.
(36:45):
So here you go, Matt. First myth, and this one
I imagine could be well. Maybe the first myth is
that you will spend much less in retirement. A lot
of people think they're going to spend less. Obviously, we
know some spend a lot more. How do you see
that myth as we're going to spend less in.
Speaker 1 (36:58):
Retirement, you may down the road. So let me clarify this.
But Christy and I like to use this phraseology here.
You have go go go years, you have the slow
go years, and you have the no go years, go
go years. Especially for baby boomers, not so much from
our parents. You know the silent generation, and that generation
(37:18):
they would retire and quietly rock. I remember my grandfather
sitting on the front porch smoking those Lucky Strikes that
he got addicted to during World War Two when he
was in the Japanese theater.
Speaker 2 (37:29):
But our generation is not like that.
Speaker 1 (37:31):
I tell you that the biggest mistake you can make
is thinking that you're in your expenses will plummet the
day you retire. I'll bet you you'll spend seventy five
to eighty percent of what you're retiring now. Now what
helps is if you're not at the job anymore, you're
not putting money into a four to oh one K,
you're not paying FIKA in social security taxes, you're not
burning gas to go to work. But you'll spend a
(37:52):
good bit. So keep in mind, go go slow, go,
no go. And when we build out our retirement money
map to show you will my app sets make it
through retirement, we're going to take that into account and
we're going to warn you against saying you won't spend
too much. So that's a myth and we can attack
that and show you what the actual facts would be.
Speaker 5 (38:11):
All right, Christy, the next myth and if you need
to phone a friend, you call your daughter, talk with Presley.
Here you go. Medicare will cover all of our healthcare
costs once we get on it at the age of
sixty five.
Speaker 6 (38:24):
Well, I mean, the thing is is that.
Speaker 4 (38:27):
Medicare is a you know, a great system in my opinion,
and I often refer to turning age sixty five going
onto Medicare. I say, oh, we can do the Medicare
happy dance. Because for the most part, when you combine
a Medicare benefit with a Medicare supplemental plan or even
a Medicare advantage plan, you are going to have a
(38:47):
good bit of your medical cost covered. But there are
some things that Medicare does not cover, like Medicare doesn't
typically cover dental Medicare doesn't typically cover like routine eye
exams or even glasses. Now, maybe a Medicare advantage plan
would supplement that.
Speaker 6 (39:02):
There's a lot of nuances.
Speaker 4 (39:03):
But the thing is is that for most people, they
believe that their medical expenses are going to be the
biggest concern in terms of health care in retirement, But
in reality, your actual medical cost in retirement and on
Medicare are not the biggest expense. The biggest expense that
(39:26):
we typically see is going to come with long term care. Now,
I know there's a lot of intent is going up
saying long term care, I'm never going into a nursing home,
when we have to think about the fact that most
long term care is not given in a nursing home,
and we're using long term care services now not just
because we're sick, but because we're living so long that
(39:47):
we simply need help. So long term care services can
include someone coming help in your home, maybe assisted living.
You know, I say I would move into an assistant
living today if my husband would let me, because some
of them are very nice, and no, you know, no,
But the reality is is Medicare does not cover true
(40:10):
long term care costs, and that's where we see the
bulk of medical cost or are cost associated with care
in retirement. It's going to be done. It's going to
be used on long term care services. The Medicare system is,
along with a supplement or or advantage plan, is going
to do a great job covering the bulk of true
(40:31):
medical expenses. But again, I think it's critical to have
long term care planning built into your plan. You know,
it's a very high statistic. With a married couple years ago,
it was one out of two we'll use uh, some
form of long term care services. I'm not sure if
that's the same statistic up today. It's going to make
me look at it right now. But you know, it's
(40:52):
a very high statistic. And the reason it's so high
is because we're using it now for for different reasons
than we would have you know, thirty years ago. And
you have to understand that you if you don't build
in a plan to pay for that care, because Medicare
does not cover long term care cost, if you don't
(41:14):
have that built into your plan, then that can destroy
your plan. So we want to make sure that we
have addressed that in building our complete plan.
Speaker 5 (41:23):
Two two five seven nine to one fifty seven seventy three.
If you'd like to learn more. This is a big
area that you really don't want to overlook it. Certainly,
if you've seen it in your family long term care,
you certainly look at this a little bit differently. I
think two two, five, seven, nine to one fifty seven
seventy three. And again, you can always go to meet
with us now dot com set up your own fifteen
minute phone call. Mad I'm gonna skip ahead a little
bit because I think this one's kind of interesting. Hey,
(41:44):
you know what, you should have all of your debt
paid off before you retire. Now, I think we like that,
but is that really necessary?
Speaker 1 (41:51):
It's more of an emotional decision for some people. Uh,
we kind of have sort of a loose general rule
of thumb. You walk in, you're about to retire, and
I want to pay off my house's eighty grand. I
want to pull a bunch of money out of my
four oh one k or maybe I want to take
some of my lump some pension and pay off the house.
Is that wise? Well, what's your interest rate? Many of
you ended up with two and a half and three
(42:12):
percent mortgages. Maybe in that case it's wiser to actually
keep paying the note, But it is an emotional decision,
but it is a person by person decision. The nice
thing is we have software and we can look at
an amateurization chart. Hey, how much will you pay over
the life of what the loan that's remaining versus how
much could you potentially earn even in a safe investment
(42:36):
long term, So we have to look at that.
Speaker 2 (42:38):
And not saying you shouldn't do it.
Speaker 1 (42:39):
It is a person by person decision, but some counsel
on that from our experience, would probably be wise.
Speaker 5 (42:45):
Here's one Christy, and I mean, I'm sixty five, so
there's no reason I even think about this yet. I
don't have to worry about it till I probably eighty
eighty five. But legacy planning, I can wait on that
right till I'm in my eighties or well.
Speaker 4 (42:56):
I actually think people should have a legacy plan, you know,
early in life. I mean, we look at my sister
as an example. My sister passed away at age fifty
with a brain aneurysm immediately like there was no time
to plan so and unfortunately, in that situation, because she
didn't have a plan, everything is left up to the
(43:17):
court systems, and that tends to not be pleasant. So
I think everyone needs a legacy plan. Now, for most
of our clients, we have to start going a little
deeper in determining do they need a simple will? I
believe most of them do need power of attorneys from
medical and financial. However, you hear all the time or
(43:41):
read or see, you see that people are being encouraged
to have a trust. So there's different types of trust.
And some people do need a trust, some people don't.
Some need a revocable trust, some need a irrevocable trust.
It really depends on what are you creating the trust for.
So there's a lot of different components when we think
(44:03):
about legacy planning. But I would say the least amount
is everyone needs a last will and testament and do
you need power of attorneys for medical and financial in
case you're not able to make those decisions yourself.
Speaker 5 (44:18):
How hard are those to do?
Speaker 6 (44:19):
They're very simple. They're actually very simple.
Speaker 1 (44:22):
Lawyers have to do them in the most case. I mean,
you can do online resources, but be careful doing that because.
Speaker 4 (44:28):
You're matt Not to interrupt you, but you could even
use a notary, but I'll discourage that correction. You actually
have a client who used a notary did their plan.
It was it was a blended family. And then when
one of them passed away, the children, remember blended family,
challenged it and actually won in a quarter of law
because it was done by a notary and it wasn't
done up to standard with Louisiana law.
Speaker 2 (44:50):
Yeah, be careful.
Speaker 4 (44:51):
So I do encourage a lawyer create the documents, but honestly,
they're not expensive and fairly simple to do.
Speaker 1 (44:58):
Yeah, and we have a relationship with attorneys that we've used.
Can I just say this, Christy, I think, and I
hope you'll agree. You have to be careful because there
are some attorneys who do a state planning that a trust,
which is significantly more expensive than a will, a trust
is the answer for everything. Don't pay for something you
don't need, and so let's evaluate what you do need
(45:19):
and then go seek the legal counsel. We're not attorneys,
we're not going to practice law, but at least we
can arm you with the right questions to ask to
know in your situation how you should proceed.
Speaker 2 (45:29):
I hope that clears up some myths.
Speaker 1 (45:31):
We're always here to help seven nine one fifty seven
seventy three seven nine one five seven seventy three. Meet
with usnow dot com.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all offers products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Presley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products, never securities or investments. Insurance guarantees are backed
by the financial strength and claims paying abilities of the
issuing carrier. This radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with or endorsed by the
US government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 6 (46:58):
This radio show is a paid placement
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