April 19, 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.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, Ron 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 2 (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 4 (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 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money matters.
Speaker 1 (00:48):
Welcome to your money Matters.
Speaker 6 (00:50):
I Mark Elliet alongside Christy Smith and Matt Kennedy at
Presley Wealth Management.
Speaker 1 (00:54):
Glad you are with us today.
Speaker 6 (00:55):
Christy started the company back in two thousand and six,
and they're here to really help you figure out where
you are on that road to retirement, give you some clarity,
give you some direction. All right, Christy, I'm gonna start
with you. Welcome to the program today, and you know,
you think about the markets. Markets go up, they go down,
they go sideways. But this has been a kind of
an interesting I guess start to the year. Markets were
(01:17):
great to start, then they got a little bumpy. Where
are you with this market volatility?
Speaker 2 (01:22):
Well, I think so far the clients that we've been
meeting with in the past couple of weeks have had
this sense of peace because they believe things that are
going to work out with President Trump. I don't know
if that's the sentiment all over, but I know that's
what we're seeing in our office. The thing is for
me is that when we look at retiring, we think
(01:47):
about sequence of returns, and we've talked about this so
many times. Mart For me, we're in a time period
where we really haven't been in what ten years now.
Speaker 4 (02:02):
Matt, Well, there was a correction in twenty twenty two,
but it was it was it was barely a correction.
Stocks went down like twenty three percent, So it wasn't
earth shattering like two thousand and eight or you know,
the two thousand dot com crash.
Speaker 2 (02:15):
So what we see is people that have retired over
the past you know, five, seven, ten years, they really
haven't experienced the level of turbulence that we're facing right now.
Many don't even understand the amount of risk that they're
actually taking in their retirement plans. I know my dad
(02:36):
didn't when he retired, and it reminds me of that
time period where you have this false sense of security
because the markets have done so well and now we're
experiencing some turbulence. For me, it's all about finding out
your risk. Do you know what risk you have in
(02:56):
your portfolio? And the reason I asked is because my dad,
when he retired in nineteen ninety eight, he didn't know
how much risk he had.
Speaker 5 (03:07):
Mark.
Speaker 2 (03:07):
We've had this conversation so many times. He was a
very smart guy when it came to his job.
Speaker 1 (03:13):
He had a pension, he's good to go, but.
Speaker 2 (03:15):
He didn't understand the markets, and he trusted an investment plan.
He didn't have a retirement plan. He had an investment plan,
and when he saw that portfolio cut in half, he
had to emotionally react or so he felt so. And
that's what will happen to many people if we continue
(03:39):
to see the markets behave the way they are right now.
And another thing, too, is is that many people don't
even understand how the turbulence that we've already experienced affects
them because they haven't looked at a statement yet. You know,
that's when people really start to react emotionally, is when
they start looking at us a quarterly statement or a
(04:02):
monthly statement and they see how it's actually affected them.
They may hear about it on the news, but until
they actually see how it affects their accounts, they just
really don't understand. And my fear is that emotional reaction
where people then make mistakes, and that's why it's so
important to have a long term plan.
Speaker 4 (04:24):
So you talk about the emotional reaction, here's some numbers
that will amaze you, Christy. What's the most common emotional
reaction that investors have to markets that are falling.
Speaker 5 (04:35):
But they want to get out? Okay?
Speaker 4 (04:36):
So in twenty twenty three, Fidelity they ran this report
and Fidelity showed that ten thousand dollars fully invested in
the S and P five hundred between January first, nineteen
eighty and December thirty first, twenty twenty two would have
kicked off about one point one million.
Speaker 5 (04:56):
That really is buy and hold for a long, long, long, long, time.
Speaker 4 (05:00):
But look at this, if you had missed the five
biggest days of return in those forty three years, if
you missed the just the five biggest days, you would
actually not end up with one point one million, but
six hundred and seventy one thousand. And if you missed
the fifty biggest days in that period of time between
(05:23):
nineteen eighty and twenty twenty two, if you had just
missed the fifty best days, you would only be up
about seventeen sixteen seventeen thousand dollars. So trying to time
the market is for most people a huge mistake. But
you might be saying, yeah, but what happens if I
leave all my money in then I have to suffer
through all of the downturns. No, because what we work
(05:44):
on is the range of return versus the rate of return.
Speaker 5 (05:48):
I can't emphasize this enough.
Speaker 4 (05:50):
While you're working, while you're saving up until about five
years out from retirement, right, Christy, the rate of return matters.
I'm not going to quit tomorrow. I'm working here. You'll
let me for a good while longer. So I'm kind
of focused on the rate of return of my four
h one K.
Speaker 5 (06:06):
And my investments.
Speaker 4 (06:07):
But when you are about five years out from retirement
and the first five years into retirement, we call that.
Speaker 5 (06:14):
The red zone.
Speaker 4 (06:14):
Right, what matters more is not your rate of return,
but your range of return.
Speaker 5 (06:20):
What do I mean by that?
Speaker 4 (06:21):
Well, going up thirty percent forty percent in your portfolio
what would be great. Right, But at that time period,
when you're close to retiring or first in retirement, losing
forty percent would have a far bigger impact than making
forty percent. So we focus on helping are soon to
be retirees and those who have recently retired who are
drawing income, because that's the key. Focus more on the
(06:45):
range of return. Hey, if the market goes up twenty percent,
we want a portfolio that makes maybe fifteen or sixteen,
so that if the market drops twenty percent, your downside
loss on average would be limited to maybe twelve percent.
Don't don't get hung up on the rate of return
as you're near or first in retirement. Focus instead on
(07:06):
the range, and we can show you how to do that.
We have the software to first analyze how much risk
do you have now? In other words, if we build
a plan for you and you do nothing and you
keep your investments the way they are, and you retire
and you're drawing money from those. We can simulate good
and bad markets, and sometimes some of you think you're okay,
only to find out that you've got so much risk
(07:28):
that if we go through a very bad bear market,
you'll be going back to work, or you'll be taking
less money and living a retirement lifestyle you did not
want to live. Let us help in our smart plan.
Risk is one of the most critical things we focus on.
We focus on sources of income, medical and medicare, advance planning.
When it comes to things like wills and trust are,
(07:49):
we want to focus on risk. Where at seven nine
to one five seven seven three seven nine to one
five seven seven three, or as Mark mentioned at the
beginning of the show, meet with us. Now, remember, don't
get greedy. What's the old saying, pigs get slaughter when
you're close to retirement, When you're first in retirement, assess
how much risk you have and how would it impact
(08:12):
your retirement income. Seven nine to one fifty seven seventy three.
You'll get the machine, leave a message and we'll call
you back Monday and set up a time to get
together and look at your risk profile.
Speaker 6 (08:22):
And Chris, do you think about it? What Matt's talking
about is pretty interesting. I think when people come to you,
let's say they're three years out from retirement, it's probably
not unusual that ninety plus percent of their money is
sitting in iras in four oh one k's once they
get to retirement. My guess is that most of your
clients don't have one hundred percent of their money sitting
in the markets and their iras and four oh one
k's right, there's there's got to be a percentage that
(08:44):
we're making safe and protected.
Speaker 1 (08:46):
I would guess, well.
Speaker 5 (08:48):
There really is.
Speaker 2 (08:48):
And to have a proper retirement plan, a smart plan,
you're going to need some safe money to protect you
in down periods. And one of the things that we're
doing right now now is we're using safe money to
generate our client's incomes. The last thing you want to
do is have to lower your income in retirement because
(09:10):
of market conditions. You know, that's something we can't control.
But what we can control is having a plan, and
an income plan is going to say, Okay, this is
how we're going to generate your income in good and
bad times. We're not going to call you and say, hey,
we need you to lower your income. And when Matt
came to work with me, he'll he'll be glad to
(09:31):
tell you how many people he heard say my advisor
called and said I need to lower my income substantially.
Speaker 4 (09:38):
Yeah, this is back in two thousand and seven, two
thousand and eight, and I was in shock. I'm like
these I'm sorry, I didn't mean to sound judgmental, but
I was like, these people just retired and their advisor
didn't think to say, you know, we might want to
be less risky. But everybody was making money. And there's
there's a psychological term, Christy, it's called recency bias. We
(09:58):
think things will continue the way they are because it's
what's most recently in our memory. People in two thousand
and eight got destroyed. Their lives were changed, their retirements
were up ended. Those some of those who wanted to
retire you had to go back to work. But the
dot com crash was only eight years earlier. It was
only eight years earlier, Christy, how did they forget.
Speaker 2 (10:19):
Here's the bottom line. If you don't have a financial plan,
your savings could be at risk. Market volatility is here,
like we haven't seen it in a very long time,
and without a strategy, it may impact your retirement and
your family's future. We understand how this can be an
overwhelming feeling, and it doesn't have to That's why we've
(10:42):
created a process designed specifically for retirees like you. Here's
what we do. We take a close look at your
goal so that your money works for you, not against you.
We pinpoint the threats to your wealth, from market losses
to rising taxes, so you can help safeguard your savings.
(11:02):
We present actionable strategies to help grow your investments and
preserve your income. Most importantly, we help you build a
tailored plan that helps protect your future and give you
the confidence that you need despite market conditions in retirement.
Don't leave your retirement to chance. Every day you delay
(11:25):
can make a difference in your savings. Call us at
two two five seven nine one five seven seven three.
Call right now. It's a free financial review. This is
your opportunity to turn uncertainty into control, and it's simple,
it's personalized, and it can work. Give us a call
at two two five seven ninety one five seven seven three.
Speaker 6 (11:49):
Christi Smith and Matt Kennedy back with more of your
money matters. Right after this, we're going to talk about
some hidden obstacles that might be in your retirement path,
and stay with us for back and corn.
Speaker 1 (11:58):
Right after this, our.
Speaker 7 (12:00):
Financial strategy is missing something. Presley Wealth wants you to
feel confident going into retirement. See how you're doing with
a free visit by going to the Presley Group dot net.
That's the Presley Group dot net, or call eight sixty
six three nine ozho twelve fifty two.
Speaker 5 (12:18):
Stop for a moment, think about this.
Speaker 4 (12:19):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought.
Speaker 5 (12:27):
Remember, you still may.
Speaker 4 (12:28):
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 5 (12:42):
It's your money, you deserve to know what's at stake.
Right now, taxes are historically low, but they won't be
this low forever.
Speaker 4 (12:49):
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 a nine
one five seven seven three.
Speaker 7 (13:02):
Investment advisory services offer through a wealth management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. If this is
a year you've resolved to finally get your finances in order,
Christy Smith and her team can help. Give them a
(13:24):
call today at eight sixty six three nine oh twelve
fifty two. That's eight sixty six three nine oh twelve
fifty two.
Speaker 6 (13:34):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. You can always go
to the website to learn more Pressley Weealthmanagement dot com.
If you have questions, though, do you want to talk
to the team call them two two five seven nine
one fifty seven seventy three. There is no cost, no obligation,
no pressure. Retirement obstacles that I think everybody will face
(13:55):
to a degree.
Speaker 1 (13:57):
What would you what would you.
Speaker 6 (13:58):
Say that the kind of the sticks out as those
things that maybe people don't think about right out of
the gate, but maybe they should.
Speaker 4 (14:04):
Christy, there's so many obstacles I want to see if
you agree with me, I think the number one obstacle
in the short term could be a severe market downturn,
because everything in retirement for most people is driven off
of how much they've saved and can I safely withdraw?
What's the number one question people ask us when they
(14:25):
come in here, Well.
Speaker 2 (14:26):
They want to know how much income they can get
and can they retire?
Speaker 5 (14:29):
Do I have enough?
Speaker 4 (14:30):
Have I saved enough? I don't know how much do
you want to spend? And so we kind of dig
into that sum with our proprietary smart plan, looking at
you know, what are your sources of income, timing on
social Security. But for most people now some of you
are lucky you have a pension and maybe between the
pension and social Security that covers all the bills and
so market volatility maybe is not as big of a concern.
(14:53):
But if you're planning to live on your savings, and
you're like, I'm going to stick faithfully to the four
percent rule, and I've got a million bucks, so I
can draw forty thousand a year and I'll be in
a pig and slop life will be grand. That works,
but only in stable markets, because if the market takes
a big plummet and you've got too much risk and
(15:14):
you lose a lot of your money.
Speaker 5 (15:16):
Now you're not drawing four percent.
Speaker 4 (15:18):
If your million dollars becomes six hundred and eighty four
thousand and you still take out forty grand a year,
uh oh, Now you're not taking four percent. Now you're
taking more like six and a half seven percent. So
one of the biggest obstacles in the short term is
forgetting the past. We're not trying to scare you. We
love the stock market. We use the stock market, but
you need a plan that reduces the range of return
(15:41):
while you're working. It's about the rate of return of
your investments. But our focus is to show you how
to reduce the range of return. Don't be greedy when
the stock market's good, you want to make some money,
You're not trying to beat the market. When the stock
market's bad. Don't let the market beat you up. Reduce
the highs and the lows. And that in the short term.
Mark is the number one obstacle, and I think it's
(16:03):
one of the biggest obstacles now because markets are near
all time highs, you know.
Speaker 6 (16:07):
And really it's interesting, I think, Christy, and you've seen this.
You started your company in two thousand and six, so
you think about the market, the Great Recession of seven
to nine. That was a banking and housing financial crisis,
and that was an extended recession, right, the Great Recession.
But then you fast forward to twenty twenty and in
two thousand and eight was, oh, your four O one
k is now a two on. Okay, you just lost
(16:27):
half your money. I'm never gonna be able to retire.
And you fast forward to twenty twenty, it's covid. Hey,
I'm retiring now because it might die. I mean, emotions
drive the bus, don't they, Christy?
Speaker 5 (16:36):
They really do.
Speaker 2 (16:37):
And for me, that's a dangerous position to be in,
you know, Like, I just don't believe making emotional decisions
typically end up being the best decisions we make. And
that's why it's so important that we really do have
a well thought out, complete plan, you know. Matt said
he believes one of the biggest obstacles that we face
(16:58):
in retirement would be risk. But I would argue an
equal risk, in my opinion, would be the tax implications
of your retirement account withdrawals in retirement.
Speaker 5 (17:12):
Yeah, agreed, because again.
Speaker 6 (17:14):
Well Christy, when we get to retirement, our taxes are lower.
That's what they told us a long time ago.
Speaker 4 (17:19):
Yeah.
Speaker 2 (17:19):
But the thing is we are in a low tax
environment currently. But the reality is that there's factors that
you have to consider. Number one, the loss can change,
the tax rates can change. In addition to that, we
have to look at required minimum distributions. For many of
our clients, required minimum distributions at seventy five eighty years
(17:43):
old is a much greater amount of money than what
the client actually needs to live on, and that's going
to throw them in a higher tax bracket. And Lord forbid,
husband and wife, one of them pass away, and now
they're paying taxes on that required minimum distribution as a
single household.
Speaker 5 (18:01):
Tax bracket just went way up. Yeah.
Speaker 2 (18:03):
So to me, I would say risk is definitely high
on the priority list, But I think taxes should be
an equal concern.
Speaker 5 (18:12):
You know you mentioned that, folks. Let me give you
just a couple of numbers.
Speaker 4 (18:15):
I had a meeting with someone who came in He
called us from the radio, and we sat down and
gathered all the data you know. So no name is here,
but Christy keep this in mind. Sixty four years old,
wants to retire at sixty seven. He has eight hundred
thousand dollars saved up, and in analyzing his situation at
age sixty five, he and his wife the same age,
they're both going to get Social Security, so.
Speaker 5 (18:35):
He really will not need to draw a lot.
Speaker 4 (18:38):
Of his savings. Just a small amount, maybe like one percent,
would be adequate to live on. So in his present job.
In his present job, his total tax burden federal and
state right now is around twenty four thousand dollars. And
he goes, well, I'm not too worried about taxes because
I know if I'm not drawing that much and living
on Social Security, my taxes will be lower.
Speaker 5 (18:59):
I said, let me show you something.
Speaker 4 (19:01):
So at age sixty six, the year he's first fully retired,
he and his wife went from paying about twenty four
thousand dollars in federal and state taxes down to about
one thousand, a massive tax decline. And he said, see,
I told you, mate, I knew I was right. I said, yes,
but wait one second. Let's go ten years down the road.
And he said, why ten years. I said, well, when
you're seventy five, you'll be forced to start taking money.
(19:25):
And when you're seventy six, let's just take a glance.
Care to guess Christy what his total tax burden was
going to be when he was seventy six. Remember he
went from twenty four thousand working, so it was actually
right under a thousand dollars of federal and state. Because
only half of Social Security counts's income. Social Security is
(19:45):
somewhat tax advantaged, he wasn't drawing much from his IRA,
and it was just getting bigger and bigger. Here's the number,
twenty two, three hundred and seventeen dollars.
Speaker 5 (19:54):
And that's if they're both living.
Speaker 2 (19:55):
Yes, that's if it's a married, foul and joint.
Speaker 4 (19:59):
And he said that can't be and I said, no,
it's right. I said, what happened is your money in
that ten year period to around even conservative growth was
about one point two million. And the amount he was
forced to take out it drove his taxes back up,
and by the time he was eighty he was paying
more in taxes than when he was working.
Speaker 5 (20:17):
And I said, here's the deal.
Speaker 4 (20:19):
The deal is, that's assuming taxes don't change from where
they are today, and it's assuming that you're still married,
filing jointly.
Speaker 5 (20:27):
It blew his mind.
Speaker 4 (20:29):
So that's why I say risk is the predominant factor
right now. Taxes are a huge factor now, folks, if
you don't have a plan to produce your taxes down
the road, you'll be in for a root of wicking.
Speaker 5 (20:41):
It's like a bomb.
Speaker 4 (20:42):
It's literally like a bomb that's just sitting hidden in
your retirement savings. But we can show you two or
three strategies that you can employ now. So when this
gentleman I was speaking with gets down the road to
age seventy six, he's not sitting there giving the government
more money than he will when he was working. Interested
we'll show you how to do it seven nine one
(21:04):
five seven seven three seven nine one five seven seven
three or on the web meet with us now dot com.
Speaker 6 (21:11):
Christy, what Matt was just talking about and your point
to one of the certainly a couple of the challenges
we've talked about so far, volatility in the market and
then certainly the tax situation.
Speaker 1 (21:21):
But you brought it up.
Speaker 6 (21:22):
I mean, you think about requirement ofum distributions that now
the age is seventy three, but as Matt pointed out
in twenty thirty three, it moves up to the age
of seventy five. So one of the challenges is you're
here's your rmds, here's what you're gonna owe, here's what
you say, here's the taxes on that we're projecting. Right,
but when the spouse, when one spouse passes, that's one
of the biggest tax jumps you get in it from
going to married filing jointly to single, and that that's
(21:45):
an RMD disaster waiting to happen that people get surprised by.
Speaker 5 (21:48):
Maybe it really is, and for me it is.
Speaker 2 (21:53):
You know, I just feel so passionate about it that
when we're working with clients, we want to build a
plan that we can start shifting that tax burden from
pre tax to no tax, and we want to do
it strategically. You know, that's that's really part of having
a complete plan. You know, we think about what is
a smart plan income. Most people will say, well, we've
(22:13):
got that income taken care of. We're going to get
social Security, we're going to get a pension, we're going
to pull three percent out of our retirement accounts. And
we've got a plan, Well that's not really a plan.
A plan's going to include things like strategy, timing of
account withdrawals. It's going to consider possible wroth conversions during
your you know, early retirement years. It's going to look
(22:35):
at okay, how do we how do we look out
for and try to prevent IRMA penalties when we're sixty
five and on medicare. There's so much involved in having
a complete plan. But Mark, the funny thing is most
people they think an investment account is a retirement plan.
And what we would like to do is we'd like
to work with you to create your own smart plan.
(22:58):
It takes fifteen minutes a fifteen minute phone call, so
we can just talk a few minutes and decide, okay,
can we help you? And if we can, we're going
to offer you the opportunity to come in and meet
with us with no costs, no obligation. It does start
with a phone call. Our phone number is two two
five seven nine one five seven seven three two two
(23:22):
five seven nine one five seven seven three. Or you
can go to meet with us now dot com and
just schedule a fifteen minute phone call. Meet with us
now dot com So.
Speaker 6 (23:35):
Two of the big things you have to think about
when you get to retirement would be certainly market volatility
if you're planning on living, especially off the market moneys
you've saved in your four oh and kN I raise,
that's certainly a factor. And then taxes a big factor
where people kind of overlook at times like Matt's example,
We're going to talk about a couple more hidden obstacles
when we get to retirement. When we come back right
here on your money matters with Christy Smith and Matt
Kennedy of Presley, Well many back with more.
Speaker 8 (23:57):
Right ever, uncle 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
(24:19):
pay lower taxes 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 to two. Uncle Sam needs money.
(24:42):
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 registered investment advisor. Investing
involves risk. Always console with the qualifying tax advisor before
making any decisions regarding a roth conversion, as there may
be additional tax considerations.
Speaker 7 (25:00):
If you aren't able to listen to this show in
its entirety, go to Presleywealthmanagement dot com to listen to
this and past radio shows. Otherwise, stick around to find
out how Presley Wealth Management will help you retire with confidence.
Speaker 6 (25:17):
Glad you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. Again
the website Presleywealthmanagement dot com.
Speaker 1 (25:24):
If you want to.
Speaker 6 (25:24):
Chat with them, you can always go to this website.
Meet with us now dot com. That's easy to remember.
Meet with us now dot com. Set up a fifteen
minute phone call with the team. Hey, here's some of
the questions I have. Here's some concerns I have.
Speaker 1 (25:35):
What do you think?
Speaker 6 (25:36):
And you just have a conversation and then from there
you decide, Wow, I wonder if they could really help us,
that would be great. Put a plan together that would
be fantastic. You can certainly do that. Meet with us
now dot com. You can always if you're like me,
I'm sixty five, I'd like to talk to somebody, so
I might just call them two two five seven nine
to one fifty seven seventy three. Two two five seven
nine to one fifty seven seventy three. I'm Mark Elliott
(25:57):
talking about critical really hidden obstacles, if you will, Things
that we are excited about getting into retirement, things that
we might overlook. One is market volatility. There's no guarantee
that the markets go up all the time, right we
all know that. So if you're planning on living off
your four oh and k and ira moneies hoping they're growing,
that's a big deal.
Speaker 1 (26:14):
If the markets go down.
Speaker 6 (26:15):
Don't want to be pulling money from an entity that
the market the money's going backwards on, and so we
add to our deficit by pulling money out of a
sinking market monies, if you will. The other huge challenge
that Christy and Matt spent a lot of time talking
to people about our taxes. Taxes, even though it's such
a different time than our grandparents. From my grandparents, there
was no iras in four to oh one ks then
(26:36):
because IRA started nineteen seventy four. Four oh one k's
in nineteen seventy eight, they didn't have those. But today
that's our retirement. Those are if you're in the traditional side.
None of that money's been taxed yet, so the taxes
are a huge thing. Healthcare, Christy, to me, is one
of the big unknowns longevity. We don't know how long
we're going to be here. When you're putting a smart
plan together for your clients at Pressley Wealth, you don't
know how long they're going to be here, so you
(26:57):
have to plan for how they both might get to
one hundred, might pass away at seventy the other one
lives to one hundred. You don't know how that's going
to play out. So longevity is a big deal, but
you don't know if one or both will have health
issues either. That's a huge unknown to me is healthcare,
and we know Christy. I think since we started doing
this program a long time ago, the medical profession has
not lowered the price of healthcare.
Speaker 1 (27:17):
Has it.
Speaker 5 (27:18):
Oh yeah, health care costs have plummeted.
Speaker 2 (27:21):
They absolutely have not.
Speaker 3 (27:22):
You know.
Speaker 2 (27:23):
The funny thing is is that for most people, they
believe they've heard turn in sixty five get none Medicare.
They believe that their medical costs are now going to
be taken care of. So most people think of long
term care costs as being medical cost, but in reality,
(27:43):
most long term care costs are actually custodial cost, and
in reality it is one of the largest expenses most
couples will incur in retirement. But you'd be surprised how
many have not planned for it. They don't even know
it's a threat. They don't know it's an obstacle.
Speaker 1 (28:05):
Mark.
Speaker 6 (28:05):
Don't you think that's because of what you just said?
Because they on once I Gato sixty five are on medicare,
we don't even have to worry about that kind of stuff.
Speaker 2 (28:11):
I absolutely think that, you know. I can remember when
one of my good friends turned sixty five and she
called me. She lives in Texas, and she said, I'm
doing the Medicare Happy nance, and I remember that because
her name is Joy and she's always so.
Speaker 5 (28:27):
Happy, you know, her parents named her right then.
Speaker 2 (28:30):
Yes, and so I remember having that conversation with her
and how you know now she was going to spend
so much less on healthcare.
Speaker 5 (28:39):
So then I simply asked her.
Speaker 2 (28:42):
I happened to know that her mother lived into her
nineties and actually needed long term care. And I said, well,
have you planned for that? Have you planned for that expense?
How you're going to pay for that? She like got
silent for a second. It like hit her, you know, like, no,
I didn't. I didn't think about that.
Speaker 6 (29:01):
You know.
Speaker 2 (29:02):
To me, when building a complete holistic retirement plan, you
have to really look at what factors can devastate our plan,
and we have to include those in your plan. So
it's really important now that we address not only long
term care costs, which can be tremendous, but we also
(29:22):
want to look at costs with Medicare. We want to
evaluate your Medicare plan that you choose every year. We
also want to look at are there ways to control
RMA penalties for your Medicare benefits? Maybe for someone retiring
at you know, sixty, maybe they need to consider big
conversions for two or three years so that they can
(29:46):
control irma cost when they get on Medicare.
Speaker 5 (29:49):
What is erma cost or is that is that one
of your aunts from Simsport?
Speaker 2 (29:54):
No, you know, when I started in this industry in
May of nineteen ninety seven, every body paid the same
exact amount of Medicare Part B premium. There was no
there was no oh, we're going to means test this.
But now it doesn't work that way. Now everyone pays
(30:16):
Medicare Part B premium based on their earnings. But it's
looked that two years prior to the year you're paying
for it. So it's again all about having a plan
and to me, thinking in retirement and building a retirement
plan that doesn't include a plan for how will we
(30:39):
pay for this? Yep, Because it's actually a very high statistic.
One out of two will need some form of long
term care. But again it is primarily custodial care, not
medical care.
Speaker 4 (30:52):
And it doesn't necessarily have to be a long term
care policy because some of you may have said, yeah,
but man, my parents looked at that year ago and go, oh,
it's so expensive. It's good to have a long term
care policy. I would say that covers most of the bases,
but you may be able to accomplish something similar to
give you some protection without having to incur the cost
(31:14):
of a true traditional long term care plan. We can
help you understand that better at seven nine one five
seven seven three.
Speaker 5 (31:22):
That's seven nine one five seven seven three.
Speaker 6 (31:25):
So, Matt, the other part of this kind of a
a big obstacle is I think people think, okay, well
I think I need five thousand and eighty eight thousand
whatever monthly amount they figure they need to live on
to be able to live out their retirement. That is
where the smart process starts with your clients is the
sources of income and the more income we can have
from different I guess, more variety from different sources. I mean,
(31:48):
if we have a pension, great, we're ahead of the game.
SoC security is one our market money is to be another.
Income is such a I mean to be able to
not run out of money before.
Speaker 1 (31:56):
You run out of life. Then income is probably one
of the big keys.
Speaker 5 (31:59):
Oh it's it's huge.
Speaker 4 (32:00):
And you know earlier we talked about if there's too
much market risk and the market risk reduces your total
bucket of money, then that could you know, create a
problem with your income. So we kind of think about
it like buckets. You know, you need a bucket of
money that you can draw from that keeps the income
stable and secure no matter what happens in the market.
(32:21):
If your income isn't impacted, your emotions will not be
nearly as impacted, and you can weather a market downturn
much better. So we often will divide the savings into
three buckets. You know, short term needs. I'm going to
have some money that is protected from market risk, can
grow when the market is good, and I'm going to
pull my income from there. I've got my emergency funds
(32:42):
set aside. But then i want some money set aside
that's maybe a little more risky, that can have me
some returns and I'll access that money in five or
seven years. Then I've got longer term funds that are
more aggressive. I'm doing roth conversions or other tax planning
out of that. And if the market takes a decline,
I'm not relying on that bucket for my immediate income,
(33:05):
so i can leave it alone, let it grow, let
it be there for future cost, healthcare cost or legacy planning.
And that's kind of an oversimplification. But in our smart plan,
remember we're looking at sources of income, but not just
where is the money coming from, but where is it
coming from most tax efficient? Where is it coming from
in such a way that you don't have to worry
(33:27):
about market downturns crushing your retirement income. Again, we're at
seven nine one five, seven, seven three seven nine one
five seven seven three. It's all about understanding what you
have and what you want your money to do. Our
plan looks at five critical areas and they're all interlinked.
(33:47):
They all work together. Smart What are my sources of income?
Will that money last? Advance planning that's the A in
other words, wills, trust, powers of attorney attorneys Christy and
I in April who the advisors here, But we can
guide you down the path of what you need to
look out for. Possible obstacles to your legacy and estate
(34:10):
planning SMA advance planning are risk.
Speaker 5 (34:13):
We've talked about that a lot today.
Speaker 4 (34:16):
Taking into account market risk when you're close to or
first into retirement is one of the single biggest drivers
of retirement success. And then t taxes. We work in
all five areas. We'd love to help you seven nine
one five seven seventy three, or visit www dot meetwith
usnow dot com schedule your fifteen minute phone call.
Speaker 1 (34:36):
I'll give you a call.
Speaker 4 (34:37):
We'll chat for bit, find out what your overall situation is.
Then we roll our sleeves up, sit down in a
one on one meeting and go deep into each of
your levels of concern and determine how we can build
a plan for your retirement success.
Speaker 1 (34:51):
So stay with us.
Speaker 6 (34:52):
Our final segment of your money matters with Christi and
Matt back right after This.
Speaker 7 (34:58):
Is the price tag on everything giving you sticker shock,
from groceries to gas. The cost of living is skyrocketing.
But if you think inflation is painful, now just wait
until you retire. Easy impact of inflation and start planning now.
Speaker 5 (35:12):
For your retirement.
Speaker 7 (35:13):
Called Presley Wealth Management at eight six six three nine
oh twelve fifty two. That's eight six six three nine
oh twelve fifty two.
Speaker 5 (35:25):
Stop for a moment, think about this.
Speaker 4 (35:27):
Do you know how much money in your four oh
one k or ira is actually your money? All well,
the government take a bigger chunk than you thought. Remember
you still may.
Speaker 5 (35:36):
Owe taxes on that money.
Speaker 4 (35:37):
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 5 (35:49):
It's your money. You deserve to know what's at stake.
Speaker 4 (35:52):
Right now, taxes are historically low, but they won't be
this low forever, So call us at seven nine one
five 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 (36:10):
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
(36:31):
you have the retirement you have always wanted. Call eight
sixty six three nine oh twelve fifty two and make
sure Presley Wealth is the right fit for you. You
won't know until you call eight six six three nine
oh twelve fifty two.
Speaker 6 (36:50):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. I'm Mark Elliott. If
you'd like to chat with them. You've got questions. Boy,
I wonder if I can retire? Do I have enough?
Speaker 1 (36:59):
Uh?
Speaker 6 (36:59):
Well, what's be okay? If something happens to me? Just
go to meet with usnow dot com. Set up your
own fifteen to twenty minute conversation with the team then
to see if you need to maybe come in and
sit down and actually have a full blown smart plan
built for you.
Speaker 1 (37:12):
So, Christy, I'll start with you. And this is something
that I know is near and dear to your heart.
That would be taxes.
Speaker 6 (37:18):
Christy, how do I figure out how much I'll have
to pay in taxes in retirement?
Speaker 1 (37:22):
Oh? It's easy. It's going to be less, that's right.
Speaker 5 (37:25):
Guess more.
Speaker 2 (37:26):
Well, I think one of the things that you need
to do is is you need to look at what
are your sources of income going to be. You know,
when we determine how much you want to live on monthly,
how are you going to fund that? Because are you
going to be taking that from Social Security benefits alone?
Speaker 5 (37:41):
Are you going to be receiving.
Speaker 2 (37:42):
A pension payment, or are you going to be supplementing
those sources of income with money from pre tax buckets?
Maybe you've saved some in after tax money. So I
think the first way of understanding, you know, what am
I going to pay in terms of taxes in retirement
immediately is going to be where are your income sources
coming from and how are they taxed?
Speaker 5 (38:04):
That's number one.
Speaker 2 (38:04):
But I think it's very important that we be proactive
in looking at, you know, what type of taxes are
we going to be paying in the future, because we
know that as it stands today, we will be paying
taxes at a higher rate beginning January one, twenty twenty six.
So I think we start off with the base scenario,
how are we going to be taxed right now based
(38:25):
on our true need and sources of income, But then
we start looking at how will we be taxed in
the future at a higher tax rate, or you know,
how will we be taxed when we're forced to take
money from pre tax accounts that maybe we didn't actually need,
you know, So it's looking in advance.
Speaker 6 (38:41):
Yeah, so thanks might change. We did at r MD age.
Required minimum distribution age right now is seventy three. I'm
sixty four, my RMD age will be seventy five because
in twenty thirty three it bounces to seventy five. So
what are you going to do? Your taxes will change
when you get to that point. Matt, here's a question
for you, what do I do with my four to
one after I retire? Now imagine if you retire early,
(39:04):
younger than say fifty nine and a half, it's a
different answer than if you retire after that age.
Speaker 4 (39:10):
So you actually have two options. Well three number one,
you can leave it in the four oh one K.
Some people do that.
Speaker 5 (39:16):
You can do that.
Speaker 4 (39:16):
The problem is you typically end up paying a good
bit more because when you're in a four oh one K,
your employee your employee or sorry, they pick up a
lot of the cost of the funds and things. But
once you leave, the full burdens on you, and it
can be more expensive than you might imagine. Also, you
have very limited investments, right, I mean, typically you're only
(39:37):
gonna have mutual funds, whereas if you move the money
into an individual retirement account, you don't pay taxes because
we roll the money. It's called a trustee to trustee transfer.
If your four oh one K is with Empower or
Fidelity or Vanguard, it moves into a with us, it's
Charles schwab Ira.
Speaker 5 (39:58):
Well, that's a transfer.
Speaker 4 (39:59):
So what's the Well, we have more investment choices, we
have the ability to much better manage risk, So you
can roll it, you can leave it. Those those are
two options. I guess option three would be you could
just go cash the whole darn thing out and pay taxes.
Speaker 5 (40:14):
But most people don't do that, do they, Christy.
Speaker 2 (40:16):
So one of the questions we get often is, you know,
if we want to retire before age fifty nine and
a half, are we going to pay that added ten
percent tax penalty if we're using pre tax money to
live on. The answer is, it depends on how you
do it. And so typically, because we're seeing more and
more people come in that are wanting to retire before
(40:40):
age fifty nine and a half, believe it or not,
we're seeing a lot more people in that situation. So
a lot of times what we're able to do is
we're able to say, okay, look, you're able to draw
income from your four to oh one K company if
you leave money in that plan and you're not going
to pay the added ten percent penalty because there's a
special ruling that says if you retire at fifty five
(41:03):
or or older, but before fifty nine and a half,
if you draw income directly from the four oh one K,
the IRS will not assess that ten percent penalty to you.
Speaker 4 (41:13):
I want to stress that again. So if you leave
a job at fifty and you start a new job
and retire at fifty six, you can't draw from the
four oh one K that you left at age fifty.
Speaker 5 (41:24):
But if you're working.
Speaker 4 (41:25):
I'll use Turner Industries as an example. You're working there,
you turn fifty five, and your four oh one K
is at Turner. When you turn fifty five and you retire,
say at fifty five fifty five and a half, you
can set up withdrawals from the four oh one K
without the ten percent penalty. But what if you have
a million bucks there? Well, we look and say how
(41:47):
much do you need a year? We might move some
of the money into an IRA to hedge the risk.
Work on tax planning, create lifetime income for when you
are fifty nine and a half. Be careful when you
move the money to an IRA. Fifty nine and a
half comes into play. But we leave enough money in
the four oh one k that you have income or
(42:07):
if you have an emergency you can draw from it.
It's all about having a strategy. It's your now money
and your later money.
Speaker 2 (42:13):
And there are some companies that won't allow you if
you if you retire from a company at you know,
fifty six years old and you need to draw income
from the four oh one K, they won't allow you to.
Speaker 5 (42:27):
Move any of it out.
Speaker 2 (42:28):
So it's a matter of learning the facts, and I
think knowledge is powerful.
Speaker 6 (42:34):
So again, meet with usnow dot com to learn about
your situation. Meet with us now dot com, or you know,
always call the team at seven nine to one, fifty
seven seventy three. All right, here's just some fun questions.
Wrap up today's show. Christy your biggest industry frustration, then
matt yours, Christy, go go ahead, biggest industry frustrating.
Speaker 2 (42:52):
Oh my gosh, that you're putting me on the spot there.
Oh wow, this is big in our industry, in our
because it depends on how you look at this question.
Let's just put it in a client's perspective, okay, because
that's taken regulatory out of the mix. Let's say, in
the biggest frustration is that people they fear getting advice
(43:14):
because they fear they're going to be sold something, and
often they put off getting advice where they if they
came and got advice at an earlier age, they could
have made changes inside of their plans while they're still working.
That would have made a big difference in retirement.
Speaker 5 (43:29):
For me, it's the same thing.
Speaker 4 (43:30):
It's the belief that we're all sales clowns. And there
are lots of sales clowns out there who don't do
the right thing, and then there are people who actually
care and do the right thing. And it sounds like
I'm bragging, but that's us.
Speaker 5 (43:43):
That's what we do. I mean, I don't chase people around.
Speaker 4 (43:46):
Christy doesn't sell you know, rainbow vacuums and cutco knives,
although I own those and love them. We're not going
to chase you down. Here are the facts, here's what
we can help you do. Do you need our help?
Speaker 1 (43:55):
Boom okay.
Speaker 5 (43:56):
First job, first job?
Speaker 4 (44:00):
Job, I worked at the Western Auto in Erwinville, sweeping
the parking lot and stock in the shelves.
Speaker 2 (44:06):
My first job was at Blinking Ship Drugs in Baker
and I worked in the pharmacy as a cashier.
Speaker 1 (44:14):
All right, all right, favorite sports team?
Speaker 5 (44:16):
What's easy? The Saints.
Speaker 4 (44:18):
I'm an NFL fan, so the Saints are number one.
LSU football or any LSU sports right there at.
Speaker 2 (44:23):
Number two, I was gonna say LSU is my favorite team.
My favorite sport I would have to say is football.
Speaker 1 (44:30):
Let's hope the women's team doesn't fight. I believe that.
How was ugly? Yeah? How many pets do you have?
Final minute?
Speaker 2 (44:37):
Oh my god, you got to ask Matthews first so
I can count all my.
Speaker 4 (44:40):
I'm going to count your horses. We have, well, we
have two. We have Mea the border colleague, who's ten,
and we also have a little Yorkie who runs the house.
Speaker 5 (44:50):
Her name is Penny and she's five and she's just
so bad.
Speaker 2 (44:53):
I have to say over ten. And that's because we
have two dogs. My favorite dog is Millie, a little
and so we have chew dogs. We have a cat.
And then we have a lot of horses. My favorite
horse is Jerry. Jerry's the favorite, Jerry Maguire partial to Jerry.
Speaker 1 (45:12):
All Right, all right, that'll wrap that up.
Speaker 6 (45:13):
Why don't you go ahead and remind people how to
get ahold of you they have any questions about where
they are on their road to retirement.
Speaker 4 (45:18):
Two ways www dot meetwith usnow dot com. You can
set up a fifteen minute phone call just to talk,
so that's meetwith usnow dot com. Or leave us a
voicemail and we'll grab it on Monday and reach back
out to you during the week. We're at seven nine
one five seven seven three. That's seven nine one five
seven seven three. God bless, have a great weekend.
Speaker 3 (45:40):
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. It 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 Pressley 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. This radio show is
a paid placement
When the news is national.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, Ron 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 2 (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 4 (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 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money matters.
Speaker 1 (00:48):
Welcome to your money Matters.
Speaker 6 (00:50):
I Mark Elliet alongside Christy Smith and Matt Kennedy at
Presley Wealth Management.
Speaker 1 (00:54):
Glad you are with us today.
Speaker 6 (00:55):
Christy started the company back in two thousand and six,
and they're here to really help you figure out where
you are on that road to retirement, give you some clarity,
give you some direction. All right, Christy, I'm gonna start
with you. Welcome to the program today, and you know,
you think about the markets. Markets go up, they go down,
they go sideways. But this has been a kind of
an interesting I guess start to the year. Markets were
(01:17):
great to start, then they got a little bumpy. Where
are you with this market volatility?
Speaker 2 (01:22):
Well, I think so far the clients that we've been
meeting with in the past couple of weeks have had
this sense of peace because they believe things that are
going to work out with President Trump. I don't know
if that's the sentiment all over, but I know that's
what we're seeing in our office. The thing is for
me is that when we look at retiring, we think
(01:47):
about sequence of returns, and we've talked about this so
many times. Mart For me, we're in a time period
where we really haven't been in what ten years now.
Speaker 4 (02:02):
Matt, Well, there was a correction in twenty twenty two,
but it was it was it was barely a correction.
Stocks went down like twenty three percent, So it wasn't
earth shattering like two thousand and eight or you know,
the two thousand dot com crash.
Speaker 2 (02:15):
So what we see is people that have retired over
the past you know, five, seven, ten years, they really
haven't experienced the level of turbulence that we're facing right now.
Many don't even understand the amount of risk that they're
actually taking in their retirement plans. I know my dad
(02:36):
didn't when he retired, and it reminds me of that
time period where you have this false sense of security
because the markets have done so well and now we're
experiencing some turbulence. For me, it's all about finding out
your risk. Do you know what risk you have in
(02:56):
your portfolio? And the reason I asked is because my dad,
when he retired in nineteen ninety eight, he didn't know
how much risk he had.
Speaker 5 (03:07):
Mark.
Speaker 2 (03:07):
We've had this conversation so many times. He was a
very smart guy when it came to his job.
Speaker 1 (03:13):
He had a pension, he's good to go, but.
Speaker 2 (03:15):
He didn't understand the markets, and he trusted an investment plan.
He didn't have a retirement plan. He had an investment plan,
and when he saw that portfolio cut in half, he
had to emotionally react or so he felt so. And
that's what will happen to many people if we continue
(03:39):
to see the markets behave the way they are right now.
And another thing, too, is is that many people don't
even understand how the turbulence that we've already experienced affects
them because they haven't looked at a statement yet. You know,
that's when people really start to react emotionally, is when
they start looking at us a quarterly statement or a
(04:02):
monthly statement and they see how it's actually affected them.
They may hear about it on the news, but until
they actually see how it affects their accounts, they just
really don't understand. And my fear is that emotional reaction
where people then make mistakes, and that's why it's so
important to have a long term plan.
Speaker 4 (04:24):
So you talk about the emotional reaction, here's some numbers
that will amaze you, Christy. What's the most common emotional
reaction that investors have to markets that are falling.
Speaker 5 (04:35):
But they want to get out? Okay?
Speaker 4 (04:36):
So in twenty twenty three, Fidelity they ran this report
and Fidelity showed that ten thousand dollars fully invested in
the S and P five hundred between January first, nineteen
eighty and December thirty first, twenty twenty two would have
kicked off about one point one million.
Speaker 5 (04:56):
That really is buy and hold for a long, long, long, long, time.
Speaker 4 (05:00):
But look at this, if you had missed the five
biggest days of return in those forty three years, if
you missed the just the five biggest days, you would
actually not end up with one point one million, but
six hundred and seventy one thousand. And if you missed
the fifty biggest days in that period of time between
(05:23):
nineteen eighty and twenty twenty two, if you had just
missed the fifty best days, you would only be up
about seventeen sixteen seventeen thousand dollars. So trying to time
the market is for most people a huge mistake. But
you might be saying, yeah, but what happens if I
leave all my money in then I have to suffer
through all of the downturns. No, because what we work
(05:44):
on is the range of return versus the rate of return.
Speaker 5 (05:48):
I can't emphasize this enough.
Speaker 4 (05:50):
While you're working, while you're saving up until about five
years out from retirement, right, Christy, the rate of return matters.
I'm not going to quit tomorrow. I'm working here. You'll
let me for a good while longer. So I'm kind
of focused on the rate of return of my four
h one K.
Speaker 5 (06:06):
And my investments.
Speaker 4 (06:07):
But when you are about five years out from retirement
and the first five years into retirement, we call that.
Speaker 5 (06:14):
The red zone.
Speaker 4 (06:14):
Right, what matters more is not your rate of return,
but your range of return.
Speaker 5 (06:20):
What do I mean by that?
Speaker 4 (06:21):
Well, going up thirty percent forty percent in your portfolio
what would be great. Right, But at that time period,
when you're close to retiring or first in retirement, losing
forty percent would have a far bigger impact than making
forty percent. So we focus on helping are soon to
be retirees and those who have recently retired who are
drawing income, because that's the key. Focus more on the
(06:45):
range of return. Hey, if the market goes up twenty percent,
we want a portfolio that makes maybe fifteen or sixteen,
so that if the market drops twenty percent, your downside
loss on average would be limited to maybe twelve percent.
Don't don't get hung up on the rate of return
as you're near or first in retirement. Focus instead on
(07:06):
the range, and we can show you how to do that.
We have the software to first analyze how much risk
do you have now? In other words, if we build
a plan for you and you do nothing and you
keep your investments the way they are, and you retire
and you're drawing money from those. We can simulate good
and bad markets, and sometimes some of you think you're okay,
only to find out that you've got so much risk
(07:28):
that if we go through a very bad bear market,
you'll be going back to work, or you'll be taking
less money and living a retirement lifestyle you did not
want to live. Let us help in our smart plan.
Risk is one of the most critical things we focus on.
We focus on sources of income, medical and medicare, advance planning.
When it comes to things like wills and trust are,
(07:49):
we want to focus on risk. Where at seven nine
to one five seven seven three seven nine to one
five seven seven three, or as Mark mentioned at the
beginning of the show, meet with us. Now, remember, don't
get greedy. What's the old saying, pigs get slaughter when
you're close to retirement, When you're first in retirement, assess
how much risk you have and how would it impact
(08:12):
your retirement income. Seven nine to one fifty seven seventy three.
You'll get the machine, leave a message and we'll call
you back Monday and set up a time to get
together and look at your risk profile.
Speaker 6 (08:22):
And Chris, do you think about it? What Matt's talking
about is pretty interesting. I think when people come to you,
let's say they're three years out from retirement, it's probably
not unusual that ninety plus percent of their money is
sitting in iras in four oh one k's once they
get to retirement. My guess is that most of your
clients don't have one hundred percent of their money sitting
in the markets and their iras and four oh one
k's right, there's there's got to be a percentage that
(08:44):
we're making safe and protected.
Speaker 1 (08:46):
I would guess, well.
Speaker 5 (08:48):
There really is.
Speaker 2 (08:48):
And to have a proper retirement plan, a smart plan,
you're going to need some safe money to protect you
in down periods. And one of the things that we're
doing right now now is we're using safe money to
generate our client's incomes. The last thing you want to
do is have to lower your income in retirement because
(09:10):
of market conditions. You know, that's something we can't control.
But what we can control is having a plan, and
an income plan is going to say, Okay, this is
how we're going to generate your income in good and
bad times. We're not going to call you and say, hey,
we need you to lower your income. And when Matt
came to work with me, he'll he'll be glad to
(09:31):
tell you how many people he heard say my advisor
called and said I need to lower my income substantially.
Speaker 4 (09:38):
Yeah, this is back in two thousand and seven, two
thousand and eight, and I was in shock. I'm like
these I'm sorry, I didn't mean to sound judgmental, but
I was like, these people just retired and their advisor
didn't think to say, you know, we might want to
be less risky. But everybody was making money. And there's
there's a psychological term, Christy, it's called recency bias. We
(09:58):
think things will continue the way they are because it's
what's most recently in our memory. People in two thousand
and eight got destroyed. Their lives were changed, their retirements
were up ended. Those some of those who wanted to
retire you had to go back to work. But the
dot com crash was only eight years earlier. It was
only eight years earlier, Christy, how did they forget.
Speaker 2 (10:19):
Here's the bottom line. If you don't have a financial plan,
your savings could be at risk. Market volatility is here,
like we haven't seen it in a very long time,
and without a strategy, it may impact your retirement and
your family's future. We understand how this can be an
overwhelming feeling, and it doesn't have to That's why we've
(10:42):
created a process designed specifically for retirees like you. Here's
what we do. We take a close look at your
goal so that your money works for you, not against you.
We pinpoint the threats to your wealth, from market losses
to rising taxes, so you can help safeguard your savings.
(11:02):
We present actionable strategies to help grow your investments and
preserve your income. Most importantly, we help you build a
tailored plan that helps protect your future and give you
the confidence that you need despite market conditions in retirement.
Don't leave your retirement to chance. Every day you delay
(11:25):
can make a difference in your savings. Call us at
two two five seven nine one five seven seven three.
Call right now. It's a free financial review. This is
your opportunity to turn uncertainty into control, and it's simple,
it's personalized, and it can work. Give us a call
at two two five seven ninety one five seven seven three.
Speaker 6 (11:49):
Christi Smith and Matt Kennedy back with more of your
money matters. Right after this, we're going to talk about
some hidden obstacles that might be in your retirement path,
and stay with us for back and corn.
Speaker 1 (11:58):
Right after this, our.
Speaker 7 (12:00):
Financial strategy is missing something. Presley Wealth wants you to
feel confident going into retirement. See how you're doing with
a free visit by going to the Presley Group dot net.
That's the Presley Group dot net, or call eight sixty
six three nine ozho twelve fifty two.
Speaker 5 (12:18):
Stop for a moment, think about this.
Speaker 4 (12:19):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought.
Speaker 5 (12:27):
Remember, you still may.
Speaker 4 (12:28):
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 5 (12:42):
It's your money, you deserve to know what's at stake.
Right now, taxes are historically low, but they won't be
this low forever.
Speaker 4 (12:49):
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 a nine
one five seven seven three.
Speaker 7 (13:02):
Investment advisory services offer through a wealth management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. If this is
a year you've resolved to finally get your finances in order,
Christy Smith and her team can help. Give them a
(13:24):
call today at eight sixty six three nine oh twelve
fifty two. That's eight sixty six three nine oh twelve
fifty two.
Speaker 6 (13:34):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. You can always go
to the website to learn more Pressley Weealthmanagement dot com.
If you have questions, though, do you want to talk
to the team call them two two five seven nine
one fifty seven seventy three. There is no cost, no obligation,
no pressure. Retirement obstacles that I think everybody will face
(13:55):
to a degree.
Speaker 1 (13:57):
What would you what would you.
Speaker 6 (13:58):
Say that the kind of the sticks out as those
things that maybe people don't think about right out of
the gate, but maybe they should.
Speaker 4 (14:04):
Christy, there's so many obstacles I want to see if
you agree with me, I think the number one obstacle
in the short term could be a severe market downturn,
because everything in retirement for most people is driven off
of how much they've saved and can I safely withdraw?
What's the number one question people ask us when they
(14:25):
come in here, Well.
Speaker 2 (14:26):
They want to know how much income they can get
and can they retire?
Speaker 5 (14:29):
Do I have enough?
Speaker 4 (14:30):
Have I saved enough? I don't know how much do
you want to spend? And so we kind of dig
into that sum with our proprietary smart plan, looking at
you know, what are your sources of income, timing on
social Security. But for most people now some of you
are lucky you have a pension and maybe between the
pension and social Security that covers all the bills and
so market volatility maybe is not as big of a concern.
(14:53):
But if you're planning to live on your savings, and
you're like, I'm going to stick faithfully to the four
percent rule, and I've got a million bucks, so I
can draw forty thousand a year and I'll be in
a pig and slop life will be grand. That works,
but only in stable markets, because if the market takes
a big plummet and you've got too much risk and
(15:14):
you lose a lot of your money.
Speaker 5 (15:16):
Now you're not drawing four percent.
Speaker 4 (15:18):
If your million dollars becomes six hundred and eighty four
thousand and you still take out forty grand a year,
uh oh, Now you're not taking four percent. Now you're
taking more like six and a half seven percent. So
one of the biggest obstacles in the short term is
forgetting the past. We're not trying to scare you. We
love the stock market. We use the stock market, but
you need a plan that reduces the range of return
(15:41):
while you're working. It's about the rate of return of
your investments. But our focus is to show you how
to reduce the range of return. Don't be greedy when
the stock market's good, you want to make some money,
You're not trying to beat the market. When the stock
market's bad. Don't let the market beat you up. Reduce
the highs and the lows. And that in the short term.
Mark is the number one obstacle, and I think it's
(16:03):
one of the biggest obstacles now because markets are near
all time highs, you know.
Speaker 6 (16:07):
And really it's interesting, I think, Christy, and you've seen this.
You started your company in two thousand and six, so
you think about the market, the Great Recession of seven
to nine. That was a banking and housing financial crisis,
and that was an extended recession, right, the Great Recession.
But then you fast forward to twenty twenty and in
two thousand and eight was, oh, your four O one
k is now a two on. Okay, you just lost
(16:27):
half your money. I'm never gonna be able to retire.
And you fast forward to twenty twenty, it's covid. Hey,
I'm retiring now because it might die. I mean, emotions
drive the bus, don't they, Christy?
Speaker 5 (16:36):
They really do.
Speaker 2 (16:37):
And for me, that's a dangerous position to be in,
you know, Like, I just don't believe making emotional decisions
typically end up being the best decisions we make. And
that's why it's so important that we really do have
a well thought out, complete plan, you know. Matt said
he believes one of the biggest obstacles that we face
(16:58):
in retirement would be risk. But I would argue an
equal risk, in my opinion, would be the tax implications
of your retirement account withdrawals in retirement.
Speaker 5 (17:12):
Yeah, agreed, because again.
Speaker 6 (17:14):
Well Christy, when we get to retirement, our taxes are lower.
That's what they told us a long time ago.
Speaker 4 (17:19):
Yeah.
Speaker 2 (17:19):
But the thing is we are in a low tax
environment currently. But the reality is that there's factors that
you have to consider. Number one, the loss can change,
the tax rates can change. In addition to that, we
have to look at required minimum distributions. For many of
our clients, required minimum distributions at seventy five eighty years
(17:43):
old is a much greater amount of money than what
the client actually needs to live on, and that's going
to throw them in a higher tax bracket. And Lord forbid,
husband and wife, one of them pass away, and now
they're paying taxes on that required minimum distribution as a
single household.
Speaker 5 (18:01):
Tax bracket just went way up. Yeah.
Speaker 2 (18:03):
So to me, I would say risk is definitely high
on the priority list, But I think taxes should be
an equal concern.
Speaker 5 (18:12):
You know you mentioned that, folks. Let me give you
just a couple of numbers.
Speaker 4 (18:15):
I had a meeting with someone who came in He
called us from the radio, and we sat down and
gathered all the data you know. So no name is here,
but Christy keep this in mind. Sixty four years old,
wants to retire at sixty seven. He has eight hundred
thousand dollars saved up, and in analyzing his situation at
age sixty five, he and his wife the same age,
they're both going to get Social Security, so.
Speaker 5 (18:35):
He really will not need to draw a lot.
Speaker 4 (18:38):
Of his savings. Just a small amount, maybe like one percent,
would be adequate to live on. So in his present job.
In his present job, his total tax burden federal and
state right now is around twenty four thousand dollars. And
he goes, well, I'm not too worried about taxes because
I know if I'm not drawing that much and living
on Social Security, my taxes will be lower.
Speaker 5 (18:59):
I said, let me show you something.
Speaker 4 (19:01):
So at age sixty six, the year he's first fully retired,
he and his wife went from paying about twenty four
thousand dollars in federal and state taxes down to about
one thousand, a massive tax decline. And he said, see,
I told you, mate, I knew I was right. I said, yes,
but wait one second. Let's go ten years down the road.
And he said, why ten years. I said, well, when
you're seventy five, you'll be forced to start taking money.
(19:25):
And when you're seventy six, let's just take a glance.
Care to guess Christy what his total tax burden was
going to be when he was seventy six. Remember he
went from twenty four thousand working, so it was actually
right under a thousand dollars of federal and state. Because
only half of Social Security counts's income. Social Security is
(19:45):
somewhat tax advantaged, he wasn't drawing much from his IRA,
and it was just getting bigger and bigger. Here's the number,
twenty two, three hundred and seventeen dollars.
Speaker 5 (19:54):
And that's if they're both living.
Speaker 2 (19:55):
Yes, that's if it's a married, foul and joint.
Speaker 4 (19:59):
And he said that can't be and I said, no,
it's right. I said, what happened is your money in
that ten year period to around even conservative growth was
about one point two million. And the amount he was
forced to take out it drove his taxes back up,
and by the time he was eighty he was paying
more in taxes than when he was working.
Speaker 5 (20:17):
And I said, here's the deal.
Speaker 4 (20:19):
The deal is, that's assuming taxes don't change from where
they are today, and it's assuming that you're still married,
filing jointly.
Speaker 5 (20:27):
It blew his mind.
Speaker 4 (20:29):
So that's why I say risk is the predominant factor
right now. Taxes are a huge factor now, folks, if
you don't have a plan to produce your taxes down
the road, you'll be in for a root of wicking.
Speaker 5 (20:41):
It's like a bomb.
Speaker 4 (20:42):
It's literally like a bomb that's just sitting hidden in
your retirement savings. But we can show you two or
three strategies that you can employ now. So when this
gentleman I was speaking with gets down the road to
age seventy six, he's not sitting there giving the government
more money than he will when he was working. Interested
we'll show you how to do it seven nine one
(21:04):
five seven seven three seven nine one five seven seven
three or on the web meet with us now dot com.
Speaker 6 (21:11):
Christy, what Matt was just talking about and your point
to one of the certainly a couple of the challenges
we've talked about so far, volatility in the market and
then certainly the tax situation.
Speaker 1 (21:21):
But you brought it up.
Speaker 6 (21:22):
I mean, you think about requirement ofum distributions that now
the age is seventy three, but as Matt pointed out
in twenty thirty three, it moves up to the age
of seventy five. So one of the challenges is you're
here's your rmds, here's what you're gonna owe, here's what
you say, here's the taxes on that we're projecting. Right,
but when the spouse, when one spouse passes, that's one
of the biggest tax jumps you get in it from
going to married filing jointly to single, and that that's
(21:45):
an RMD disaster waiting to happen that people get surprised by.
Speaker 5 (21:48):
Maybe it really is, and for me it is.
Speaker 2 (21:53):
You know, I just feel so passionate about it that
when we're working with clients, we want to build a
plan that we can start shifting that tax burden from
pre tax to no tax, and we want to do
it strategically. You know, that's that's really part of having
a complete plan. You know, we think about what is
a smart plan income. Most people will say, well, we've
(22:13):
got that income taken care of. We're going to get
social Security, we're going to get a pension, we're going
to pull three percent out of our retirement accounts. And
we've got a plan, Well that's not really a plan.
A plan's going to include things like strategy, timing of
account withdrawals. It's going to consider possible wroth conversions during
your you know, early retirement years. It's going to look
(22:35):
at okay, how do we how do we look out
for and try to prevent IRMA penalties when we're sixty
five and on medicare. There's so much involved in having
a complete plan. But Mark, the funny thing is most
people they think an investment account is a retirement plan.
And what we would like to do is we'd like
to work with you to create your own smart plan.
(22:58):
It takes fifteen minutes a fifteen minute phone call, so
we can just talk a few minutes and decide, okay,
can we help you? And if we can, we're going
to offer you the opportunity to come in and meet
with us with no costs, no obligation. It does start
with a phone call. Our phone number is two two
five seven nine one five seven seven three two two
(23:22):
five seven nine one five seven seven three. Or you
can go to meet with us now dot com and
just schedule a fifteen minute phone call. Meet with us
now dot com So.
Speaker 6 (23:35):
Two of the big things you have to think about
when you get to retirement would be certainly market volatility
if you're planning on living, especially off the market moneys
you've saved in your four oh and kN I raise,
that's certainly a factor. And then taxes a big factor
where people kind of overlook at times like Matt's example,
We're going to talk about a couple more hidden obstacles
when we get to retirement. When we come back right
here on your money matters with Christy Smith and Matt
Kennedy of Presley, Well many back with more.
Speaker 8 (23:57):
Right ever, uncle 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
(24:19):
pay lower taxes 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 to two. Uncle Sam needs money.
(24:42):
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 registered investment advisor. Investing
involves risk. Always console with the qualifying tax advisor before
making any decisions regarding a roth conversion, as there may
be additional tax considerations.
Speaker 7 (25:00):
If you aren't able to listen to this show in
its entirety, go to Presleywealthmanagement dot com to listen to
this and past radio shows. Otherwise, stick around to find
out how Presley Wealth Management will help you retire with confidence.
Speaker 6 (25:17):
Glad you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. Again
the website Presleywealthmanagement dot com.
Speaker 1 (25:24):
If you want to.
Speaker 6 (25:24):
Chat with them, you can always go to this website.
Meet with us now dot com. That's easy to remember.
Meet with us now dot com. Set up a fifteen
minute phone call with the team. Hey, here's some of
the questions I have. Here's some concerns I have.
Speaker 1 (25:35):
What do you think?
Speaker 6 (25:36):
And you just have a conversation and then from there
you decide, Wow, I wonder if they could really help us,
that would be great. Put a plan together that would
be fantastic. You can certainly do that. Meet with us
now dot com. You can always if you're like me,
I'm sixty five, I'd like to talk to somebody, so
I might just call them two two five seven nine
to one fifty seven seventy three. Two two five seven
nine to one fifty seven seventy three. I'm Mark Elliott
(25:57):
talking about critical really hidden obstacles, if you will, Things
that we are excited about getting into retirement, things that
we might overlook. One is market volatility. There's no guarantee
that the markets go up all the time, right we
all know that. So if you're planning on living off
your four oh and k and ira moneies hoping they're growing,
that's a big deal.
Speaker 1 (26:14):
If the markets go down.
Speaker 6 (26:15):
Don't want to be pulling money from an entity that
the market the money's going backwards on, and so we
add to our deficit by pulling money out of a
sinking market monies, if you will. The other huge challenge
that Christy and Matt spent a lot of time talking
to people about our taxes. Taxes, even though it's such
a different time than our grandparents. From my grandparents, there
was no iras in four to oh one ks then
(26:36):
because IRA started nineteen seventy four. Four oh one k's
in nineteen seventy eight, they didn't have those. But today
that's our retirement. Those are if you're in the traditional side.
None of that money's been taxed yet, so the taxes
are a huge thing. Healthcare, Christy, to me, is one
of the big unknowns longevity. We don't know how long
we're going to be here. When you're putting a smart
plan together for your clients at Pressley Wealth, you don't
know how long they're going to be here, so you
(26:57):
have to plan for how they both might get to
one hundred, might pass away at seventy the other one
lives to one hundred. You don't know how that's going
to play out. So longevity is a big deal, but
you don't know if one or both will have health
issues either. That's a huge unknown to me is healthcare,
and we know Christy. I think since we started doing
this program a long time ago, the medical profession has
not lowered the price of healthcare.
Speaker 1 (27:17):
Has it.
Speaker 5 (27:18):
Oh yeah, health care costs have plummeted.
Speaker 2 (27:21):
They absolutely have not.
Speaker 3 (27:22):
You know.
Speaker 2 (27:23):
The funny thing is is that for most people, they
believe they've heard turn in sixty five get none Medicare.
They believe that their medical costs are now going to
be taken care of. So most people think of long
term care costs as being medical cost, but in reality,
(27:43):
most long term care costs are actually custodial cost, and
in reality it is one of the largest expenses most
couples will incur in retirement. But you'd be surprised how
many have not planned for it. They don't even know
it's a threat. They don't know it's an obstacle.
Speaker 1 (28:05):
Mark.
Speaker 6 (28:05):
Don't you think that's because of what you just said?
Because they on once I Gato sixty five are on medicare,
we don't even have to worry about that kind of stuff.
Speaker 2 (28:11):
I absolutely think that, you know. I can remember when
one of my good friends turned sixty five and she
called me. She lives in Texas, and she said, I'm
doing the Medicare Happy nance, and I remember that because
her name is Joy and she's always so.
Speaker 5 (28:27):
Happy, you know, her parents named her right then.
Speaker 2 (28:30):
Yes, and so I remember having that conversation with her
and how you know now she was going to spend
so much less on healthcare.
Speaker 5 (28:39):
So then I simply asked her.
Speaker 2 (28:42):
I happened to know that her mother lived into her
nineties and actually needed long term care. And I said, well,
have you planned for that? Have you planned for that expense?
How you're going to pay for that? She like got
silent for a second. It like hit her, you know, like, no,
I didn't. I didn't think about that.
Speaker 6 (29:01):
You know.
Speaker 2 (29:02):
To me, when building a complete holistic retirement plan, you
have to really look at what factors can devastate our plan,
and we have to include those in your plan. So
it's really important now that we address not only long
term care costs, which can be tremendous, but we also
(29:22):
want to look at costs with Medicare. We want to
evaluate your Medicare plan that you choose every year. We
also want to look at are there ways to control
RMA penalties for your Medicare benefits? Maybe for someone retiring
at you know, sixty, maybe they need to consider big
conversions for two or three years so that they can
(29:46):
control irma cost when they get on Medicare.
Speaker 5 (29:49):
What is erma cost or is that is that one
of your aunts from Simsport?
Speaker 2 (29:54):
No, you know, when I started in this industry in
May of nineteen ninety seven, every body paid the same
exact amount of Medicare Part B premium. There was no
there was no oh, we're going to means test this.
But now it doesn't work that way. Now everyone pays
(30:16):
Medicare Part B premium based on their earnings. But it's
looked that two years prior to the year you're paying
for it. So it's again all about having a plan
and to me, thinking in retirement and building a retirement
plan that doesn't include a plan for how will we
(30:39):
pay for this? Yep, Because it's actually a very high statistic.
One out of two will need some form of long
term care. But again it is primarily custodial care, not
medical care.
Speaker 4 (30:52):
And it doesn't necessarily have to be a long term
care policy because some of you may have said, yeah,
but man, my parents looked at that year ago and go, oh,
it's so expensive. It's good to have a long term
care policy. I would say that covers most of the bases,
but you may be able to accomplish something similar to
give you some protection without having to incur the cost
(31:14):
of a true traditional long term care plan. We can
help you understand that better at seven nine one five
seven seven three.
Speaker 5 (31:22):
That's seven nine one five seven seven three.
Speaker 6 (31:25):
So, Matt, the other part of this kind of a
a big obstacle is I think people think, okay, well
I think I need five thousand and eighty eight thousand
whatever monthly amount they figure they need to live on
to be able to live out their retirement. That is
where the smart process starts with your clients is the
sources of income and the more income we can have
from different I guess, more variety from different sources. I mean,
(31:48):
if we have a pension, great, we're ahead of the game.
SoC security is one our market money is to be another.
Income is such a I mean to be able to
not run out of money before.
Speaker 1 (31:56):
You run out of life. Then income is probably one
of the big keys.
Speaker 5 (31:59):
Oh it's it's huge.
Speaker 4 (32:00):
And you know earlier we talked about if there's too
much market risk and the market risk reduces your total
bucket of money, then that could you know, create a
problem with your income. So we kind of think about
it like buckets. You know, you need a bucket of
money that you can draw from that keeps the income
stable and secure no matter what happens in the market.
(32:21):
If your income isn't impacted, your emotions will not be
nearly as impacted, and you can weather a market downturn
much better. So we often will divide the savings into
three buckets. You know, short term needs. I'm going to
have some money that is protected from market risk, can
grow when the market is good, and I'm going to
pull my income from there. I've got my emergency funds
(32:42):
set aside. But then i want some money set aside
that's maybe a little more risky, that can have me
some returns and I'll access that money in five or
seven years. Then I've got longer term funds that are
more aggressive. I'm doing roth conversions or other tax planning
out of that. And if the market takes a decline,
I'm not relying on that bucket for my immediate income,
(33:05):
so i can leave it alone, let it grow, let
it be there for future cost, healthcare cost or legacy planning.
And that's kind of an oversimplification. But in our smart plan,
remember we're looking at sources of income, but not just
where is the money coming from, but where is it
coming from most tax efficient? Where is it coming from
in such a way that you don't have to worry
(33:27):
about market downturns crushing your retirement income. Again, we're at
seven nine one five, seven, seven three seven nine one
five seven seven three. It's all about understanding what you
have and what you want your money to do. Our
plan looks at five critical areas and they're all interlinked.
(33:47):
They all work together. Smart What are my sources of income?
Will that money last? Advance planning that's the A in
other words, wills, trust, powers of attorney attorneys Christy and
I in April who the advisors here, But we can
guide you down the path of what you need to
look out for. Possible obstacles to your legacy and estate
(34:10):
planning SMA advance planning are risk.
Speaker 5 (34:13):
We've talked about that a lot today.
Speaker 4 (34:16):
Taking into account market risk when you're close to or
first into retirement is one of the single biggest drivers
of retirement success. And then t taxes. We work in
all five areas. We'd love to help you seven nine
one five seven seventy three, or visit www dot meetwith
usnow dot com schedule your fifteen minute phone call.
Speaker 1 (34:36):
I'll give you a call.
Speaker 4 (34:37):
We'll chat for bit, find out what your overall situation is.
Then we roll our sleeves up, sit down in a
one on one meeting and go deep into each of
your levels of concern and determine how we can build
a plan for your retirement success.
Speaker 1 (34:51):
So stay with us.
Speaker 6 (34:52):
Our final segment of your money matters with Christi and
Matt back right after This.
Speaker 7 (34:58):
Is the price tag on everything giving you sticker shock,
from groceries to gas. The cost of living is skyrocketing.
But if you think inflation is painful, now just wait
until you retire. Easy impact of inflation and start planning now.
Speaker 5 (35:12):
For your retirement.
Speaker 7 (35:13):
Called Presley Wealth Management at eight six six three nine
oh twelve fifty two. That's eight six six three nine
oh twelve fifty two.
Speaker 5 (35:25):
Stop for a moment, think about this.
Speaker 4 (35:27):
Do you know how much money in your four oh
one k or ira is actually your money? All well,
the government take a bigger chunk than you thought. Remember
you still may.
Speaker 5 (35:36):
Owe taxes on that money.
Speaker 4 (35:37):
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 5 (35:49):
It's your money. You deserve to know what's at stake.
Speaker 4 (35:52):
Right now, taxes are historically low, but they won't be
this low forever, So call us at seven nine one
five 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 (36:10):
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
(36:31):
you have the retirement you have always wanted. Call eight
sixty six three nine oh twelve fifty two and make
sure Presley Wealth is the right fit for you. You
won't know until you call eight six six three nine
oh twelve fifty two.
Speaker 6 (36:50):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. I'm Mark Elliott. If
you'd like to chat with them. You've got questions. Boy,
I wonder if I can retire? Do I have enough?
Speaker 1 (36:59):
Uh?
Speaker 6 (36:59):
Well, what's be okay? If something happens to me? Just
go to meet with usnow dot com. Set up your
own fifteen to twenty minute conversation with the team then
to see if you need to maybe come in and
sit down and actually have a full blown smart plan
built for you.
Speaker 1 (37:12):
So, Christy, I'll start with you. And this is something
that I know is near and dear to your heart.
That would be taxes.
Speaker 6 (37:18):
Christy, how do I figure out how much I'll have
to pay in taxes in retirement?
Speaker 1 (37:22):
Oh? It's easy. It's going to be less, that's right.
Speaker 5 (37:25):
Guess more.
Speaker 2 (37:26):
Well, I think one of the things that you need
to do is is you need to look at what
are your sources of income going to be. You know,
when we determine how much you want to live on monthly,
how are you going to fund that? Because are you
going to be taking that from Social Security benefits alone?
Speaker 5 (37:41):
Are you going to be receiving.
Speaker 2 (37:42):
A pension payment, or are you going to be supplementing
those sources of income with money from pre tax buckets?
Maybe you've saved some in after tax money. So I
think the first way of understanding, you know, what am
I going to pay in terms of taxes in retirement
immediately is going to be where are your income sources
coming from and how are they taxed?
Speaker 5 (38:04):
That's number one.
Speaker 2 (38:04):
But I think it's very important that we be proactive
in looking at, you know, what type of taxes are
we going to be paying in the future, because we
know that as it stands today, we will be paying
taxes at a higher rate beginning January one, twenty twenty six.
So I think we start off with the base scenario,
how are we going to be taxed right now based
(38:25):
on our true need and sources of income, But then
we start looking at how will we be taxed in
the future at a higher tax rate, or you know,
how will we be taxed when we're forced to take
money from pre tax accounts that maybe we didn't actually need,
you know, So it's looking in advance.
Speaker 6 (38:41):
Yeah, so thanks might change. We did at r MD age.
Required minimum distribution age right now is seventy three. I'm
sixty four, my RMD age will be seventy five because
in twenty thirty three it bounces to seventy five. So
what are you going to do? Your taxes will change
when you get to that point. Matt, here's a question
for you, what do I do with my four to
one after I retire? Now imagine if you retire early,
(39:04):
younger than say fifty nine and a half, it's a
different answer than if you retire after that age.
Speaker 4 (39:10):
So you actually have two options. Well three number one,
you can leave it in the four oh one K.
Some people do that.
Speaker 5 (39:16):
You can do that.
Speaker 4 (39:16):
The problem is you typically end up paying a good
bit more because when you're in a four oh one K,
your employee your employee or sorry, they pick up a
lot of the cost of the funds and things. But
once you leave, the full burdens on you, and it
can be more expensive than you might imagine. Also, you
have very limited investments, right, I mean, typically you're only
(39:37):
gonna have mutual funds, whereas if you move the money
into an individual retirement account, you don't pay taxes because
we roll the money. It's called a trustee to trustee transfer.
If your four oh one K is with Empower or
Fidelity or Vanguard, it moves into a with us, it's
Charles schwab Ira.
Speaker 5 (39:58):
Well, that's a transfer.
Speaker 4 (39:59):
So what's the Well, we have more investment choices, we
have the ability to much better manage risk, So you
can roll it, you can leave it. Those those are
two options. I guess option three would be you could
just go cash the whole darn thing out and pay taxes.
Speaker 5 (40:14):
But most people don't do that, do they, Christy.
Speaker 2 (40:16):
So one of the questions we get often is, you know,
if we want to retire before age fifty nine and
a half, are we going to pay that added ten
percent tax penalty if we're using pre tax money to
live on. The answer is, it depends on how you
do it. And so typically, because we're seeing more and
more people come in that are wanting to retire before
(40:40):
age fifty nine and a half, believe it or not,
we're seeing a lot more people in that situation. So
a lot of times what we're able to do is
we're able to say, okay, look, you're able to draw
income from your four to oh one K company if
you leave money in that plan and you're not going
to pay the added ten percent penalty because there's a
special ruling that says if you retire at fifty five
(41:03):
or or older, but before fifty nine and a half,
if you draw income directly from the four oh one K,
the IRS will not assess that ten percent penalty to you.
Speaker 4 (41:13):
I want to stress that again. So if you leave
a job at fifty and you start a new job
and retire at fifty six, you can't draw from the
four oh one K that you left at age fifty.
Speaker 5 (41:24):
But if you're working.
Speaker 4 (41:25):
I'll use Turner Industries as an example. You're working there,
you turn fifty five, and your four oh one K
is at Turner. When you turn fifty five and you retire,
say at fifty five fifty five and a half, you
can set up withdrawals from the four oh one K
without the ten percent penalty. But what if you have
a million bucks there? Well, we look and say how
(41:47):
much do you need a year? We might move some
of the money into an IRA to hedge the risk.
Work on tax planning, create lifetime income for when you
are fifty nine and a half. Be careful when you
move the money to an IRA. Fifty nine and a
half comes into play. But we leave enough money in
the four oh one k that you have income or
(42:07):
if you have an emergency you can draw from it.
It's all about having a strategy. It's your now money
and your later money.
Speaker 2 (42:13):
And there are some companies that won't allow you if
you if you retire from a company at you know,
fifty six years old and you need to draw income
from the four oh one K, they won't allow you to.
Speaker 5 (42:27):
Move any of it out.
Speaker 2 (42:28):
So it's a matter of learning the facts, and I
think knowledge is powerful.
Speaker 6 (42:34):
So again, meet with usnow dot com to learn about
your situation. Meet with us now dot com, or you know,
always call the team at seven nine to one, fifty
seven seventy three. All right, here's just some fun questions.
Wrap up today's show. Christy your biggest industry frustration, then
matt yours, Christy, go go ahead, biggest industry frustrating.
Speaker 2 (42:52):
Oh my gosh, that you're putting me on the spot there.
Oh wow, this is big in our industry, in our
because it depends on how you look at this question.
Let's just put it in a client's perspective, okay, because
that's taken regulatory out of the mix. Let's say, in
the biggest frustration is that people they fear getting advice
(43:14):
because they fear they're going to be sold something, and
often they put off getting advice where they if they
came and got advice at an earlier age, they could
have made changes inside of their plans while they're still working.
That would have made a big difference in retirement.
Speaker 5 (43:29):
For me, it's the same thing.
Speaker 4 (43:30):
It's the belief that we're all sales clowns. And there
are lots of sales clowns out there who don't do
the right thing, and then there are people who actually
care and do the right thing. And it sounds like
I'm bragging, but that's us.
Speaker 5 (43:43):
That's what we do. I mean, I don't chase people around.
Speaker 4 (43:46):
Christy doesn't sell you know, rainbow vacuums and cutco knives,
although I own those and love them. We're not going
to chase you down. Here are the facts, here's what
we can help you do. Do you need our help?
Speaker 1 (43:55):
Boom okay.
Speaker 5 (43:56):
First job, first job?
Speaker 4 (44:00):
Job, I worked at the Western Auto in Erwinville, sweeping
the parking lot and stock in the shelves.
Speaker 2 (44:06):
My first job was at Blinking Ship Drugs in Baker
and I worked in the pharmacy as a cashier.
Speaker 1 (44:14):
All right, all right, favorite sports team?
Speaker 5 (44:16):
What's easy? The Saints.
Speaker 4 (44:18):
I'm an NFL fan, so the Saints are number one.
LSU football or any LSU sports right there at.
Speaker 2 (44:23):
Number two, I was gonna say LSU is my favorite team.
My favorite sport I would have to say is football.
Speaker 1 (44:30):
Let's hope the women's team doesn't fight. I believe that.
How was ugly? Yeah? How many pets do you have?
Final minute?
Speaker 2 (44:37):
Oh my god, you got to ask Matthews first so
I can count all my.
Speaker 4 (44:40):
I'm going to count your horses. We have, well, we
have two. We have Mea the border colleague, who's ten,
and we also have a little Yorkie who runs the house.
Speaker 5 (44:50):
Her name is Penny and she's five and she's just
so bad.
Speaker 2 (44:53):
I have to say over ten. And that's because we
have two dogs. My favorite dog is Millie, a little
and so we have chew dogs. We have a cat.
And then we have a lot of horses. My favorite
horse is Jerry. Jerry's the favorite, Jerry Maguire partial to Jerry.
Speaker 1 (45:12):
All Right, all right, that'll wrap that up.
Speaker 6 (45:13):
Why don't you go ahead and remind people how to
get ahold of you they have any questions about where
they are on their road to retirement.
Speaker 4 (45:18):
Two ways www dot meetwith usnow dot com. You can
set up a fifteen minute phone call just to talk,
so that's meetwith usnow dot com. Or leave us a
voicemail and we'll grab it on Monday and reach back
out to you during the week. We're at seven nine
one five seven seven three. That's seven nine one five
seven seven three. God bless, have a great weekend.
Speaker 3 (45:40):
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. It 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 Pressley 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. This radio show is
a paid placement
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