May 2, 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 volatility, global turmoil, interest rates, Rock Dan
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana local serving the Greater
Baton Rouge area.
Speaker 1 (00:10):
Your money matters.
Speaker 3 (00:12):
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 (00:49):
Welcome to your money Matters. I'm Mark Elliott alongside Christy Smith,
the founder of Presley Wealth Management. Christie started the company
back in two thousand and six, also with us, of course,
Matt Kennedy, investment adviser representative of Certified a State Planner.
Matt joined the team in late two thousand and eight.
You can always go to the website to learn more.
Presley Wealth Management Dot com You can always call them.
That's an easy thing. That's two two five, seven nine,
(01:12):
one fifty seven seventy three. Christy Matt, Welcome to the program,
and let's just dive right in. We've seen the ups
and downs of the market lately. We seem like we've
been spending a lot of time in twenty twenty five
talking about the markets in the volatility. Are there any
certain kind of questions you guys are getting from people
that you know, maybe who have not been working with
an advisor, maybe prospective clients that come in. Are they
different questions than your clients?
Speaker 4 (01:34):
I actually have since more patients this time among people
the tariff talk, people seem a little less not just clients,
but prospects as well. They seem a little less concerned
about this than say, when COVID happened, or you know,
a budget bill getting hung up in Congress suspending spending money.
(01:55):
I don't know if it's a if it's a trust
in Trump, because you either love him or you're hating
you know, you're not lukewarm with Donald Trump, and you
love him or you hate him.
Speaker 5 (02:03):
That's what I've seen.
Speaker 4 (02:04):
Christie's like, people seem to be like it's almost like
people are saying, we're going to sit tight. The tariff
thing will work out. As a matter of fact, I
saw a statistic a few days ago, I think it
was in the Wall Street Journal. The amount of money
flowing into the market has actually been stunningly high, considering
that we've had this significant pullback. Now there's been a
(02:25):
rally over the last couple of weeks, but it almost
is like people are confident that this thing will get
worked out.
Speaker 6 (02:32):
I would have to agree with Matt.
Speaker 2 (02:33):
That is one of the things that surprises me because
in the past, when we would have a you know,
a period of uncertainty like COVID or even like in
two thousand and eight, you know, oh yeah, oh, the
people coming into the office that we were like freaking out,
are panicking. They're not doing that right now, Mark, And
(02:54):
it is, in my opinion, a like a sense of
security for most people. They come in and they they
they kind of give me the vibe they're just going
to write it out.
Speaker 1 (03:06):
You know.
Speaker 6 (03:06):
It's really odd.
Speaker 1 (03:08):
You know, Christy, for those that are like in their thirties, forties,
maybe even fifties, when the markets go wonky, it's okay.
They're not using that money yet they're four to oh
one k automatic monthly or buy monthly. You know, money
put into that is buying more shares, so it's a
good thing. What about I mean because I know when
Presley and your kids would go back to school, you
(03:28):
love the back to school sales. People don't like back
to school sales on Wall Street. They don't like when
the market goes down and it becomes a better opportunity
for them, but they don't look at it the same
way as back to school sales. So there are opportunities
when the market goes down a little bit. Are there
opportunities that maybe we should think about or well, that's.
Speaker 6 (03:46):
A good question.
Speaker 2 (03:47):
And for us, because we are always building a complete
holistic plan that's going to include some safety.
Speaker 6 (03:55):
One of the things that we.
Speaker 2 (03:56):
Are having a conversation with clients right now is now
the time to consider funding one of your safe sources.
Because most of our fixed indexinuity strategies that we use
for our safe money buckets, we're going to link them
to different indexes and so for example, the S and
P five hundred is down right now, now might be
(04:17):
the time to start your fixed indextinuity strategy because you
have a whole year to see the market come back
up to make a gain, and so that really is
an opportunity in my opinion.
Speaker 4 (04:27):
Yeah, and the way those plans work just for those
who don't know. So we peel the money off from
say your four oh one k are an ira, and
the money goes into the plan as an irase you
don't pay taxes to roll the money into the plan.
But then we're linked to the S and P five hundred,
but we're not in the S and P five hundred
(04:47):
for example. So let's just say that the tariff thing
doesn't work out, Christy and it becomes a full blown
trade war and the stock market goes back down twenty percent. Well,
the money that you put into the in dextinuity is
not subject to market loss. So if you move two
hundred thousand dollars there a year from now, you'll still
(05:08):
have based on the claim's paying ability and the issuing
strength of the company, but you'll have the same amount
of money. So you don't have a risk by funding
that account now. But if in turn, the stock market,
like you said, rallies because hey, they got their trade
deal worked out the tariff war is over, everybody's smiling
and happy. Then you can make a very good return
(05:29):
the right now. Your earning's ability on a plan like
that somewhere near ten to ten and a half percent
per year. Every contract is different. We'd be happy to
go over that into detail with you. But if you're
nearing retirement or in retirement, or if you've got cash
sitting on the sidelines and you're thinking when is a
good time to deploy it, there may be an opportunity
so that you can have some reward without creating more risk.
Speaker 6 (05:53):
And also too mark.
Speaker 2 (05:54):
One of the opportunities that we've seen is for people
that purchased a fixed INDEXTINUW maybe five years ago. Maybe
they're in a ten year surrender charge period in a
contract and they think that they can't make any changes
to that contract because they're still within that surrender charge period.
(06:15):
Often because we're in a different interest rate environment, and
a lot of these contracts don't have what's called market
value adjustments added to them. Some contracts have bonuses added
to them. There's a lot of features and every plan
is different, but what we're seeing is we're seeing the
opportunity for people who bought into the safer contracts, you know,
in a lower interest rate environment, they may have the
(06:38):
opportunity to replace it with a newer contract that maybe
has added index options, higher index crediting options, maybe lock
in options, maybe an upfront bonus.
Speaker 6 (06:50):
And I give you all these different choices.
Speaker 2 (06:52):
Because well they're not there with just one company, you know,
like that's a that's options when we look at different
companies and different plans. But right now is a great
time to look at an annuity that you purchase maybe
five years ago or seven years ago, because the earnings
potential owner newer contract could potentially be much much higher.
(07:16):
So to me, that's definitely an opportunity.
Speaker 4 (07:18):
So reach out to us at seven nine to one
five seven seven three will quickly give you an assessment gladly,
I should say, and quickly if you'd like it that way,
give you an assessment of what you have in terms
of a specific product and whether you could benefit from refinancing,
making a change. But it's not just about one tool
in the tool chest. Remember, we want to look at
(07:39):
your retirement, where is your income coming from, your sources
of income? What about medical medicare? Advanced planning like a
state planning things like that, making sure that your wishes
are known and your legacy is left intact. And then
of course there's risk management as you retire, and there's
the big one, there's tax. It's the five critical areas
(08:01):
of retirement that we work in and we'd love to
help you with that. So we're at seven nine one five, seven,
seveny three. While things are trending in the right direction
market wise, it's still a very tenuous game. Christy, I
would tell you that my gut tells me there's a
little too much optimism right now. I'm I wish you
(08:22):
could have seen to look, Christy just gave me like, really,
that's just my feeling. I think that the market is
being a little optimistic because I think China is going
to play hardball. It's going to take a while for
this thing to work out, so be prepared. That's my
caveat well.
Speaker 2 (08:36):
I think the most important thing, mark in my opinion,
right now, is for people to consider spreading out their risk.
You know, you want to have a good balance of stocks, bonds,
mutual funds, maybe a fixed indextinuity as a bond alternative,
and once you have the right mix I think it's
(08:57):
really important to the course, stay focused. You know, for me,
emotional investing is never good, and that's all we would
tend to see in a time period right now, which
is why we both started the show off this morning
discussing how we're seeing this level of confidence with prospects
and clients coming in.
Speaker 6 (09:20):
That we're really not used to.
Speaker 2 (09:21):
Seeing in a time period where we are experiencing some turbulence.
But I will say being steady, staying the course with
a properly designed plan is really important because if you don't,
if you try to start time in the market, that's
often when you can derail your long term picture in
my opinion. You know, if you miss the best five
(09:44):
days of the market in a year, it can have
a long term negative effect in your portfolio.
Speaker 6 (09:51):
And so stay in the course is really important.
Speaker 2 (09:55):
And also too, I think it's really important that you
know what but is your risk. You'd be surprised how
many people come in they don't have a written plan,
they don't have a tax plan.
Speaker 6 (10:10):
In fact, they'll.
Speaker 2 (10:10):
Say my adviser said, I should see this person, you know,
at another firm for tax planning. But the biggest thing
is they don't know how much they're truly paying, and
they don't know how much risk is in their portfolio.
And that's one of the things that we take great
pride in is really evaluating what risk are you currently
(10:33):
taking in your overall plan?
Speaker 6 (10:36):
Is it the right amount of risk? And what are
you paying in fees?
Speaker 2 (10:41):
You got to learn the facts and to me, these
are our critical components of having a long term retirement plan.
And this is what we do every day, and we'd
love to help you. It's real simple. You just pick
up the phone and call seven nine to one five
seven seven three. You'll just leave a quick message and
(11:03):
we'll get in touch with you on Monday. We'll schedule
a fifteen minute call so that we can start having
the conversation. Remember it is completely complementary. We're not going
to charge you anything to have a phone call or
to even come in or you can go to meet
with usnow dot com and just schedule that fifteen minute
call directly. I think right now is the perfect time
(11:27):
to learn. You know, people are confident, although maybe they
shouldn't be. They are, but why not take the time
to learn the facts now and do you have a
complete plan. There is no retirement without retirement income. We
all want to know where's our income coming from. Do
you have a retirement income plan? We'd love to help you.
(11:50):
This is what we do every day, but it all
starts with you seven nine one five seven seven three
seven nine one five seven seven three or meet with
usnow dot com.
Speaker 1 (12:02):
So we're just getting started on your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. We've
got a lot to get to stay with us. We're
back with more right after the.
Speaker 7 (12:11):
Worried your financial strategy is missing something, Presleywealth wants you
to feel confident going into retirement. See how you're doing
with a free visit by going to the Presleygroup dot net.
That's the Presleygroup dot net or call eight sixty six
three nine oho twelve fifty two.
Speaker 4 (12:30):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money?
Speaker 7 (12:37):
All?
Speaker 4 (12:37):
Will the government take a bigger chunk than you thought?
Remember you still may owe taxes on that money, But
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes.
Speaker 5 (12:54):
It's your money. You deserve to know what's at stake.
Speaker 4 (12:57):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, we'll
work just as hard to help you keep it. Pressley
Wealth Management seven nine one five seven seven three.
Speaker 7 (13:14):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROD 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
(13:37):
call today at eight six six three nine oh twelve
fifty two. That's eight sixty six three nine oh twelve
fifty two.
Speaker 1 (13:46):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management. Again, if you have
questions about where you are on that road to retirement.
You just want to know more. Boy, I want to
make sure I don't run out of money before we
run out of life. Are we going to be okay
if we retire? Two two five seven nine one fifty
seven seventy three. No cost to chat with the team.
They are here to help if they can seven nine
to one fifty seven seventy three. And of course you
(14:07):
can always go to meet with us now dot COM's
just set up a fifteen minute phone call. Hey, here's
a couple questions. I've got a couple concerns. What do
you think? And you go from there meet with us
now dot Com. I'm Mark lay glad you're with us.
We're gonna talk about the couple couple threats that we
all face, and certainly inflation is one of those that
it kind of depends, right whether it's a huge deal
or a smaller deal. But a one percent inflation, there's
(14:29):
still gonna be higher prices down the road, let alone
when it's five to ten percent. But we're gonna touch
on taxes to start with Christy, this is your favorite topic,
I think taxes and one of the interesting parts of
this because we've been talking about this for a long time.
The twenty seventeen Tax Cuts and Jobs Act that Trump
put in in his first term as president, and he
had said during the election, Biden's going, I'm gonna make
(14:51):
sure that ends, and Trump's going, I'm gonna make sure
that continues. I mean that that twenty seventeen Tax Cuts
and Jobs Act for Families ends December thirty first of
twenty twenty five. So we're kind of in that kind
of time period where something's going to happen. It's either
going to end or Trump's going to extend it. Of course,
it's Congress that makes that decision. Where are you on this.
(15:11):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 2 (15:17):
The reality is is that you know, in my opinion,
Trump is going to try to renew his tax cuts.
But we can't build long term plans on what ifs.
We have to build our plans based on facts. Right now.
The fact is is that if there is no change,
taxes will go up beginning January one of twenty twenty six. Now,
(15:40):
even if President Trump is able to get his tax
cuts extended, which you know obviously we would all celebrate
on that. We have to think about the long term
effects of that and what will likely happen long term,
because we do have a very large amount of debt
that has to be paid at some point. So I
(16:03):
would think that taxes, even if we're able to see
them stay at the same level they are right now
beginning in twenty twenty six, it's going to be for
a limited time period. If he's able to get the
tax cuts extended, it's not going to be an indefinite thing.
It's going to have a sunset provision at some point.
So I feel like using the opportunity that we have
(16:26):
right now of being able to make changes to our
long term plan so that we can be more tax
efficient in the long run is a very smart idea.
If we're lucky, we'll get another four years of that.
Speaker 6 (16:39):
But who knows.
Speaker 2 (16:40):
None of us know, We don't have a crystal ball.
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize those taxes in retirement. And many people
have already caught onto the wroth ey er, you know,
contribute to a wroth even inside of a four oh
(17:03):
one K. A lot of people have heard of that.
There's still a lot of misconception about who can who
can do a Wroth contribution versus a Wroth conversion.
Speaker 6 (17:14):
We'd love to help you with that. But there's also
other ways that you.
Speaker 2 (17:17):
Can start planning for long term income in retirement that
would be more tax efficient. For example, a lot of
our younger clients may consider like an index universal life
contract and at some point when they retire, take money
out of it tax free to live on in retirement.
So there's other strategies available that we can use besides
(17:40):
just Wroth planning, and that's what we do at Presley
Wealth Management. We look at the long term effect of taxes,
you know, using today's tax code, and try to develop
a better path moving forward.
Speaker 6 (17:53):
And we want to be your resource.
Speaker 2 (17:54):
So we'd love to have that conversation with you, and
it's a very simple conversation. What are you doing now
or are there things you can do differently? My dad
would always say, slow and steady wins the race. Are
there things that you can do now that that maybe
you don't even feel financially that make a big difference
long term in retirement. And that's what we would love
(18:17):
to help you.
Speaker 1 (18:17):
With two two five, seven nine to one fifty seven
seventy three to chat with the team at Presley Wealth
Management when Matt with our country over thirty six trillion
dollars in debt as a nation at the end of
the day, though, they cannot tax their way out of this. So,
I mean, Trump's tax cuts that he wants to keep
in place are very interesting. And Trump has taken the
(18:38):
corporate taxes and that twenty seventeen Tax Cuts and Jobs
Act from thirty five down to twenty one. He's even
talked about taking that for the corporations down to fifteen,
which I guess. I mean, if they raise taxes on
corporations that we just end up paying more, correct, right,
I mean there's some option where do you think this
has headed? I mean, you can't tax your way out
of this, is what I think.
Speaker 4 (18:56):
Well, I don't think you can tax your way out
of it. You can try to grow your way out
out of it. That's what Reagan did, right. Reagan cut taxes,
stimulated growth. I know, I can hear the echoes out there, yeah,
but I know the yeah butt. But at the end
of the day, the core of what happened was taxes
went down, economic growth accelerated. That will probably be the
Trump doze plan. Here's the thing. I don't know that
(19:18):
they can get us out of this. I don't know
what they'll do. But the headline of this segment is
tackling the twin threats of taxes and inflation. Folks don't
forget they're joined hand in hand. Let me explain. So
let's say inflation continues to run high and you just retire,
and now because of inflation, your expenses are more. Let's
(19:40):
say you're going to plan to retire in five years
and inflation hasn't gotten under control, it's not tamed, it
hasn't cooled off.
Speaker 1 (19:48):
Well.
Speaker 4 (19:49):
When you're pulling money from pre tax dollars, so you
have an IRA worth a million dollars and you're pulling
money out to live on, do you realize you're having
to get double hit A. You're taking more because inflation
makes you take more. And when you take more, now
you have to take more than you planned on taking
because you have to pay the higher taxes on what
(20:09):
you did take to make up for the higher inflation.
Speaker 1 (20:13):
Ouch.
Speaker 4 (20:14):
The single most important thing you can focus on right
now if you haven't retired, is what do you do
about your future tax burden? Because your future tax burden
will absolutely impact your inflation impact. Does that make sense
what I'm trying to say, Christy? In other words, if
I've got a million bucks and I need to draw
forty thousand a year to live on, but because inflation,
(20:34):
I have to draw forty five thousand, I'm really having
to draw more because I have to pay more in taxes.
But if I can take out raw or tax free money,
it doesn't hurt me as badly well.
Speaker 2 (20:47):
And that's why it's so important that you build a
completely diversified plan. You know, when we hear the word diversification,
we typically think of how our money is invested, Diversify
in different areas of the market, diversify in levels of risk.
I like to think of diversification in terms of how
(21:08):
will you draw your retirement income. Will you have funds
that are set aside that will not be taxable, diversify
your sources of income. Maybe maybe be able to pull
from an IRA of taxable bucket, But then consider have
you saved in buckets that are not going to be
(21:29):
taxable where you can mix those sources of income. Not
only does that help in terms of generating your income
and not outliving it because you don't have to take
as much, but often we are able to help people
avoid the IRMA penalties for their Medicare benefits by being
able to withdraw money from non taxable buckets in retirement.
(21:51):
So my question to you would be are you diversified?
Speaker 1 (21:53):
So, and Christy said it, Matt, you know, when taxes,
if the twenty seventy Tax Cuts and Jobs Act does
actually sunset at the end of this year and twenty
twenty six we go back to the seventeen rates of brackets,
your taxes are going up twenty to thirty percent. That's
just correct. That's kind of the way it is right now.
Speaker 4 (22:09):
I don't see that happening, not with Trump in office,
but he could never say never, right.
Speaker 1 (22:14):
So Okay, let's say that this that he does get
to extended at the end of the day Congress makes
that decision. Now he does have his the House and
the Senate on the Republican side, so it gives him
a little better shot at that. But the corporate tax,
it's kind of an interesting thing. I think you're talking
about Reagan, and he tried to spur the economy on
that actually made things better economically for the country. I
(22:36):
guess that's kind of the theory by lowering this corporate
taxes from twenty one to fifteen, if he could do
that right.
Speaker 4 (22:42):
Well, let me add on the national scene, let me
bring it home to the state scene. I do not
want to miss this. Governor Jeff Landry and the state
administration here have radically changed the corporate and state tax
for Louisiana. The corporate tax went down. I don't remember
the exact prison, but it's lower. But here's the real
impact for you, folks. The state has now tripled the
(23:06):
standard state tax deduction. It was forty five hundred bucks
a person. They've tripled that. We now have a flat
state tax of three percent. It was progressive up to
four point twenty five. Now it doesn't matter if you
make little money or if you're wealthy. The state income
tax rate is now three percent across the board for everybody. However,
(23:28):
they did build in a poison pill for the next
five years. The state has raised the state sales tax
from four percent to five percent. That's to kind of
help the transition. So if you're paying state taxes, know
that this year is going to be a good year
for you because you have a about a one point
twenty five percent lower payment and a higher deduction. Huge.
Speaker 1 (23:51):
So when we come back, Christian matter to tack a
little bit about the inflation situation more with Christian Matt
right here on your money matters right after.
Speaker 8 (23:58):
This, Sam might need a loan soon from you. We
have over thirty four trillion dollars in national debt. Where
do you think the money to pay for that's going
to come from? Taxes? Believe it or not, taxes are
at historic lows right now, but how much longer will
that last? A roth Ira conversion might be a good
option when planning for your retirement because you can pay
(24:19):
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
(24:40):
two five to two Uncle Sam needs money, Don't let
him take it from you. Eight six, six, three nine
zero twelve fifty two. Investment advisory services offer through a
wealth management LLC A RETCH should investment advisor. Investing involves risk.
Always consult with the qualified tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations.
Speaker 7 (25:00):
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 1 (25:16):
Pleasure with us today for your money matters with Christy
Smith and Matt Kennedy of Presley Wealth Management the team.
Christy started the company in six Matt joined the team
in o eight. They've been sitting down with folks just
like you for a long long time, helping them figure
out where they are on that road to retirement. Can
I retire? Do we have enough? Are we gonna be okay? Well?
Our money last two two, five, seven, nine, one fifty
seven seventy three. If you'd like to have a conversation,
(25:37):
because there's a lot going on. Every year, things change
whether it's the national government, the local government. Just a
lot going on. And of course Christian Mat've already talked
about the windfall thing for social security. Big for those firemen,
police teachers. You might be able to get some SOB
security call the team find out seven nine to one,
fifty seven to seventy three, and you can always go
to meet with usnow dot com. I'm Mark Kelly. We're
(26:00):
talking about the challenges really of taxes. We touched on that,
and certainly this is a big year for that because
of twenty seventeen Tax Cuts and Jobs Act that Trump
put into place back in his first term. He's going
to try to extend it actually expires for families and individuals.
At the end of this year. The corporate TAXI went
from thirty five to twenty one. That was no end
(26:21):
date in that one, but for us there is an
end date. So we'll see how that all plays out. Certainly,
but when it comes to inflation, Matt, I'm gonna ask
you a question, how much do you think thirty years ago,
nineteen ninety five, how much was a new transmission in
a car?
Speaker 4 (26:34):
Oh, Lord, nineteen ninety five, seven hundred dollars?
Speaker 1 (26:37):
Okay, just making sense. That's a good guess, though, That's
a really good guess. But it actually was. Back in
nineteen ninety five, the average transmission was twenty five hundred,
depending on the make of the model of the car,
fifteen to.
Speaker 9 (26:48):
Thirty seven hundred. You can tell I don't work on
my jek Yeah, exactly. But maybe a rebuilt transmission, maybe
it would be seven hundred. Now, I like your guests though,
but it was twenty time we had out in Irwinville,
boy rebuilt trainer.
Speaker 1 (27:00):
And the reason I bring that up is my daughter's
transmission went out and now she has hand controls because
of her car wreck as a senior in high school.
So she's, you know, hand controlling, and I wonder if
that affected transmission. Because it was only a fifty thousand
miles car twenty eighteen, it should not be out, but
it is. Just so you know, that transmission now costs
six thousand dollars. Wow, So is that inflation? That's inflation,
(27:22):
isn't it.
Speaker 4 (27:23):
Well, I just google him. By the way, it says
on average, replacing a car transmission cost between four and
seven thousand dollars. Holy cow, that's inflation.
Speaker 1 (27:31):
That is your relation and so you think about it,
twenty twenty two is when we saw and we heard
this is the highest inflation we've had in forty years,
and so they're going back to the seventies and eighties.
Speaker 4 (27:40):
Uh.
Speaker 1 (27:41):
And we got up to nine point one percent inflation
in twenty twenty two. And I think Christy, it's fair
to say that once we had the Great Recession O
seven to early on nine, inflation was not really a
factor until twenty twenty two, was it.
Speaker 6 (27:54):
Well, it really wasn't.
Speaker 2 (27:55):
And we've built our plans for our clients to combat inflation,
even though we haven't seen high inflation until recently. It
is really important that when you're looking at your long
term plan that you've actually planned for inflation, because if
you don't plan for inflation in ten years from now,
(28:16):
your lifestyle is going to be a lot You're going
to be doing a lot less than what you're doing now.
So you need to build a overall plan that is
going to take into consideration inflation. And to do that,
what we're going to use is we're going to build
strategies that are going to highly diversify the income. We're
going to take into consideration. The COLA for social Security benefits. Now,
(28:38):
keep in mind the cola increase. The last couple of
years because of the level of inflation has been higher,
but this year we're seeing a lower cola.
Speaker 6 (28:49):
It's really important that you build a.
Speaker 2 (28:52):
Long term plan that includes inflation protection, and we're going
to do that in building your smart plan.
Speaker 6 (29:00):
At Presley Wealth Management.
Speaker 1 (29:02):
It used to be the one hundred year average was
about three percent or inflation, So that's kind of what
you would use I would imagine, is that right?
Speaker 4 (29:08):
I think it's three point one four something. I think
the story of twenty twenty five will be inflation. It's
that simple. You can already see it in the beginning
of the year in the equity markets. You know, it's
all this enthusiasm over the election turning out the way
it did, a pro Wall Street president, an anti regulator
regulatory president in President Trump was elected. The market popped immediately.
(29:33):
But we're seeing some cracks in the market, and the
primary reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 1 (29:51):
Hey, explain this to me, because it's a confusing thing
to me is that, Okay, the FED, Federal Reserve Chair
Jerome Powell, they've been fighting inflation, right. They rose the
interest rate levels during that twenty twenty two time period.
In twenty twenty three, and then last year they were
going to lower them like five or six times. They didn't.
They did it twice I think at like a quarter percent.
(30:12):
But they're lower they're trying to The Fed's trying to
lower the interest rates, but yet the Federal Reserve or
the Treasury interest rates are going up. How does that
work well with that?
Speaker 4 (30:21):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts
that is creating perpetual high inflation. And so now the
(30:43):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting this stock market.
So it's kind of picked your poison, Christy, you know,
so That's why one of the reasons is that you
really need to look at your risk profile this year
(31:03):
if you're close to retiring. We're not saying a horrible
market crash is coming, but all the analysts feel like
twenty twenty five could have a lot of bumps along
the way.
Speaker 2 (31:12):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently. You know,
it's crazy to me, Mark, because people will come into
the office as they're looking for a second opinion, which
we highly encourage. I ask them to see their written
(31:34):
retirement plan. Maybe they retired three years ago. They give
me their investment statement and they say, this is all
I have.
Speaker 6 (31:42):
The thing is is that.
Speaker 2 (31:44):
You know, when you're building a long term retirement plan,
you need a written plan. And while we've been very
blessed with great markets, anyone who retired in the last
five years really hasn't had to worry because things have
been okay. It's when you get into a situation like
in two thousand and seven eight, like my dad went
(32:07):
into and his wasn't in that time period. My dad
actually experienced that in two thousand, that things go well,
they go wrong, and you owe it to yourself to
look and be proactive versus reactive. So I would highly
encourage any of you that retired in the last five
years to just get a retirement checkup eight you know,
(32:30):
find out how much risks do you have in your portfolio?
Do you have a diversified tax plan, do you have
a plan that protects you for higher levels of inflation
long term in retirement? Now is actually the perfect time
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
(32:50):
with me when I say that nothing brings me more
joy than to be able to tell someone I think you're.
Speaker 4 (32:57):
Good, oh, totally the right track, And let me tell
you folks, to put you all at ease. I would
say that probably seventy percent of the people slash couples
that walk in and say our plan is to retire
in three years or two years. Oftentimes we're able after
we do the homework and dig into things to say,
(33:17):
you know, if you wanted to retire now, you really could,
and they're quiet for a minute. And they're like, are
you serious. Well, yes, based on your present investments, now
we would have to build a plan to make sure
that we have a stable income, that we've reduced the risk.
But you know we've done this long enough that it's
not just about the number of dollars you have. Please
(33:38):
don't make that mistake. As you head into retirement, the
key is not your rate of return, it's your range
of return. So if you're greedy and you're all focused
on well, the market was up twenty percent and I
made twenty two let's fine if you're working and planning
to work a while, But if you're closing in on retirement,
you want to make sure that your range of return
(34:00):
is in a smaller range. What do I mean by that?
When things are going good and you can capture say
three quarters of the upside of the market, great, Why
Because you don't want to get clocked when things are bad.
You want to mitigate the risk on the downside to
give you a higher degree of success in retirement. Range
of return as you approach retirement and first get into
(34:23):
retirement is so much more important than rate of return.
Let's talk about that more. Seven nine one five seven
seven three. It's what we do every day. We're retirement
planners and we focus on a five part holistic retirement plan.
Sources of income, medical and medicare, advanced planning, risk planning,
(34:44):
and tax planning. Reach out to us at seven nine
to one five seven seven three, or you can set
up a phone call online at meetwith usnow dot com.
Speaker 1 (34:53):
Back from their final segment with Christian Matt right here
on your money Matters right after this.
Speaker 7 (34:59):
Is the price 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
for your retirement. Called Presley Wealth Management at eight six
six three nine oh twelve fifty two. That's eight six
(35:21):
six three nine oh twelve fifty two.
Speaker 5 (35:26):
Stop for a moment, think about this.
Speaker 4 (35:28):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 7 (35:33):
All?
Speaker 4 (35:33):
Will the government take a bigger chunk than you thought?
Speaker 5 (35:35):
Remember you still may.
Speaker 4 (35:37):
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 (35:51):
It's your money, you deserve to know what's at stake.
Speaker 4 (35:53):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine nine
one five seven seven three. That's seven nine one five
seven seven three. Look, you work hard for your money,
will work just as hard to help you keep it.
Presley Wealth Management seven nine one five seven seven.
Speaker 7 (36:11):
Three 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,
(36:32):
making sure you have the retirement you have always wanted.
Call eight six 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 1 (36:50):
Mind you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. I'm
Mark Elliott Presleywealthmanagement dot com. To learn more about Christy,
Matt and the team, find out about upcoming events, a
lot of great information on the website Presley Wealthmanagement dot com.
You know, I think it was not long ago we
did you guys had some tips for us for a
happy retirement. Well, now we thought we'd follow that up
(37:10):
with some planning tips from actually people that actually have retired.
So that's where we're going, because who better to learn
from than people who've actually done it? And that's certainly
some of that. I think the inside you and Christy
and Matt, you guys can give your clients is learning
from the retirees that you work with and have worked
with for a long time. That's kind of a neat thing.
So these are five super simple retirement planning tips from
(37:34):
real retirees. They're straight from people who've been there before.
So Christy, I'll start with you. What's tip number five
from the from the people that have already retired?
Speaker 2 (37:43):
Well, tip number five is live below your means. You know,
it sounds such common sense, but you'd be surprised how
many people we meet with in the very beginning when
we say how much do you need to live on
in retirement and they actually don't know? You know, it's
it to me if I was, you know, if I
(38:05):
was looking forward to retirement and you know, two, three,
four years five at the most, I would I would
want to know how much do I actually need.
Speaker 4 (38:14):
One of the things you've always said, and I love
it is many of our clients have said to us,
you know, we're going to test drive the retirement. And
so let's say they're about two years out. They may
still be making really good money. Maybe they've got one job,
two jobs, you know, husband, wife, both working, and oftentimes
we'll say, well, you told this five thousand dollars a month,
we'll do the trick, see if you can save the rest,
(38:37):
and see if you can actually live on that five
thousand dollars. Now, they may not have started Social Security yet,
that may be all of their wages, right, but if
you can comfortably live on five thousand, now, you know, okay,
there's my benchmark. So maybe test drive your retirement. Because
if you go from making one hundred and eighty thousand
a year and then you suddenly retire and you're like,
(38:57):
wait a second, I can't live on sixty grand year.
What was I thinking that that presents a big problem. Yes,
So as much as you hate the B word, some
of you do the budget practice the budget.
Speaker 2 (39:08):
You know, sometimes we'll have a client that'll come in
that is our prospect that's coming in trying to figure out,
you know, can they retire and they start looking at
how much their paycheck is currently, but they will forget
that they are having deductions made from their paycheck to
pay a car note that's going directly to a credit union.
(39:28):
So not only do you want to look at what's
coming in currently in terms of your paycheck, but you
need to take into consideration or their expenses that are
being paid before your paycheck hits the bank account.
Speaker 4 (39:41):
This is raw math, okay, Mark and Christy, very very
rough raw math. So Christy, I'm curious if you'll agree.
I would say that the average person working if they said, hey,
I want to live exactly like I'm living right now,
then you'll need about eighty percent of the income you're getting.
So if you're making one hundred grand a year and
and you pay your taxes, you put money in the
four to one k, that means that you're probably able
(40:04):
to live on the net of maybe sixty because you've
got gas, you're burning meals, you're taking dry cleaning. You
might be doing so if you look at your current
net while you're working, about eighty percent of that will
probably probably be okay.
Speaker 2 (40:20):
Well, of course you got to consider are you going
to want to travel more? A lot of our clients
want to travel first the go go years, those first
five years in retirement. They want to travel more. There's
things that they want to do on their bucket list
and we have to plan for those as well.
Speaker 4 (40:34):
So just practice.
Speaker 2 (40:35):
I would say that the tip number five really bowls
down to you, know, know how much you need to
live the retirement you want to live before you actually retire,
and know that you can accomplish that.
Speaker 5 (40:48):
All right, Mark, we camped there for a while. Sorry,
go ahead.
Speaker 1 (40:50):
Yeah, And I would say that tip number five is
really tip number one. It is. It is way better
off if you just lived below your means. Tip number four, Matt,
what is that one?
Speaker 4 (40:58):
Structure your savings? Look, if you think it's too late,
it's not too late. Keep saving. Make sure you're saving
in the right places. If you're pouring all of your
money into a pre tax four oh one K. Maybe
that's not the best idea. Have you thought about taxes.
We can have that discussion when you reach out to
us at seven nine one five seven seven three.
Speaker 1 (41:17):
All right, Christy. Tip number three is important for you
and your husband.
Speaker 2 (41:21):
Well, Tip number three is invest in your health. You know,
we talked about this just recently, YEP, on one of
our programs. To me, I think it's really important before
you retire to start really being mindful of your health
because think about it, do you want to retire and
then get sick? And I've recently had some experience with this.
(41:44):
My husband has had some health issues recently and we've
had to make changes in our lifestyle. So I think
it's really important while you're working to really get that
thorough check up and see all their things. When I
say it, you know, there's many things you can do now,
not just a hey, go to the doctor, let them
look you over and you're done. Like, there's places you
(42:07):
can go that do all kind of screenings for you
head to toe and so you have a very clear
picture of what you need to focus on. To me,
I'm getting active and involved in your health before you
retire is critical, and.
Speaker 1 (42:24):
I think we would all agree. I mean, if you
had to choose between money and health, you have to
choose health. So yeah, but I would like to have
money and health. That would be a great way to
go into retirement.
Speaker 6 (42:33):
We all want that.
Speaker 8 (42:34):
Yeah.
Speaker 1 (42:34):
Now, tip number one is one that we all know,
start saving early. So that's a tip for your grandkids
or your kids. Make sure they start saving early.
Speaker 4 (42:40):
So let's get to the real number one, which in
our list is number two.
Speaker 1 (42:43):
Yes, I think that one is the one that's pretty interesting.
It says, don't rush into retirement. Explain that some people.
Speaker 4 (42:50):
Were rushed into retirement. I remember Christy back in twenty twenty,
COVID hits people are being offered early buyouts, and it
created a lot of anxiety because people who didn't feel
emotionally ready to retire were forced to retire. Looking back,
many of those people are now happily retired, stayed retired,
and they're saying, you know, God works in mysterious ways.
(43:12):
I feel great that I was able to actually leave.
Many though, went back to do consulting work, went back
to find some other work, not because they couldn't afford
to retire. They just weren't emotionally ready. Retirement is just
not about the money. It's about an emotional decision, and
as a married couple, it's about a joint decision.
Speaker 6 (43:31):
Right correct.
Speaker 2 (43:32):
And I would also say that not rushing into retirement
is extremely important because if you're not truly ready, think
about it. Most of us are able to save the
most about five years before we retire. Yeah, And so
if you don't rush into retirement, then you're able to
put that money, save more so that you can actually
(43:54):
live the retirement that you dream of.
Speaker 6 (43:57):
It's not all about money. I will say.
Speaker 2 (43:59):
I've seen people that were forced into retirement for one
reason or another, and sometimes it's the mental aspect that
truly gets to them. But to me, being able to
take advantage of your highest earning years and typically you're
in the least amount of debt at that point, you know,
(44:19):
and you're able to save more about five years before
you retire, So to me, that's extremely important. I always
go back to test drive your retirement. It's funny because
we won't buy a car typically without test driving it.
We just don't. We want to get behind the wheel.
We want to feel how it goes. Some want to
test drive, you know, two or three different vehicles to
(44:41):
make sure which vehicle is going to feel the best,
you know, But we don't think in terms of test
driving our retirement. And I think it's so important that
we take the steps to do that, even two or
three years before you retire. If you're going to retire
with less income than what you're currently making, why not
(45:03):
create that retirement scenario while you're still working so that
you could determine is it going to work for you.
There's so many different pieces that go into building a holistic,
complete retirement plan, and this is what we do, and
we would love to help you. Give us a call
at seven nine one five seven seven three seven nine
(45:25):
one five seven seven three to schedule a fifteen minute
phone call so we can start the conversation or go
to meet with usnow dot com and schedule that fifteen
minute call. We'd love to help you, and that's what
we do every day.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLCAEWM, a registered investment advisor insurance products are offered
through the insurance business the Presley Group. Presley Wealth Management
is an investment advisory practice offers products and services through
AE Wealth Management LLCAWM, a registered investment advisor. AWM does
(46:07):
not offer insurance products. The insurance products offered by the
Presley Group are not subject to investment advisor requirements. AWM
and the Presley Group are not affiliated companies. Investing involves risk,
including the potential loss of principle. Any references to protection, safety,
or lifetime income generally refer to fixed insurance products, never
securities or investments. Insurance guarantees are backed by the financial
strength and claims paying abilities of the issuing carrier. This
(46:29):
radio show is intended for informational purposes only. 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
(46:51):
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sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 6 (46:58):
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Speaker 2 (00:01):
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Speaker 3 (00:05):
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Speaker 3 (00:12):
And when it's your time to retire, Presley Wealth Management
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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 (00:49):
Welcome to your money Matters. I'm Mark Elliott alongside Christy Smith,
the founder of Presley Wealth Management. Christie started the company
back in two thousand and six, also with us, of course,
Matt Kennedy, investment adviser representative of Certified a State Planner.
Matt joined the team in late two thousand and eight.
You can always go to the website to learn more.
Presley Wealth Management Dot com You can always call them.
That's an easy thing. That's two two five, seven nine,
(01:12):
one fifty seven seventy three. Christy Matt, Welcome to the program,
and let's just dive right in. We've seen the ups
and downs of the market lately. We seem like we've
been spending a lot of time in twenty twenty five
talking about the markets in the volatility. Are there any
certain kind of questions you guys are getting from people
that you know, maybe who have not been working with
an advisor, maybe prospective clients that come in. Are they
different questions than your clients?
Speaker 4 (01:34):
I actually have since more patients this time among people
the tariff talk, people seem a little less not just clients,
but prospects as well. They seem a little less concerned
about this than say, when COVID happened, or you know,
a budget bill getting hung up in Congress suspending spending money.
(01:55):
I don't know if it's a if it's a trust
in Trump, because you either love him or you're hating
you know, you're not lukewarm with Donald Trump, and you
love him or you hate him.
Speaker 5 (02:03):
That's what I've seen.
Speaker 4 (02:04):
Christie's like, people seem to be like it's almost like
people are saying, we're going to sit tight. The tariff
thing will work out. As a matter of fact, I
saw a statistic a few days ago, I think it
was in the Wall Street Journal. The amount of money
flowing into the market has actually been stunningly high, considering
that we've had this significant pullback. Now there's been a
(02:25):
rally over the last couple of weeks, but it almost
is like people are confident that this thing will get
worked out.
Speaker 6 (02:32):
I would have to agree with Matt.
Speaker 2 (02:33):
That is one of the things that surprises me because
in the past, when we would have a you know,
a period of uncertainty like COVID or even like in
two thousand and eight, you know, oh yeah, oh, the
people coming into the office that we were like freaking out,
are panicking. They're not doing that right now, Mark, And
(02:54):
it is, in my opinion, a like a sense of
security for most people. They come in and they they
they kind of give me the vibe they're just going
to write it out.
Speaker 1 (03:06):
You know.
Speaker 6 (03:06):
It's really odd.
Speaker 1 (03:08):
You know, Christy, for those that are like in their thirties, forties,
maybe even fifties, when the markets go wonky, it's okay.
They're not using that money yet they're four to oh
one k automatic monthly or buy monthly. You know, money
put into that is buying more shares, so it's a
good thing. What about I mean because I know when
Presley and your kids would go back to school, you
(03:28):
love the back to school sales. People don't like back
to school sales on Wall Street. They don't like when
the market goes down and it becomes a better opportunity
for them, but they don't look at it the same
way as back to school sales. So there are opportunities
when the market goes down a little bit. Are there
opportunities that maybe we should think about or well, that's.
Speaker 6 (03:46):
A good question.
Speaker 2 (03:47):
And for us, because we are always building a complete
holistic plan that's going to include some safety.
Speaker 6 (03:55):
One of the things that we.
Speaker 2 (03:56):
Are having a conversation with clients right now is now
the time to consider funding one of your safe sources.
Because most of our fixed indexinuity strategies that we use
for our safe money buckets, we're going to link them
to different indexes and so for example, the S and
P five hundred is down right now, now might be
(04:17):
the time to start your fixed indextinuity strategy because you
have a whole year to see the market come back
up to make a gain, and so that really is
an opportunity in my opinion.
Speaker 4 (04:27):
Yeah, and the way those plans work just for those
who don't know. So we peel the money off from
say your four oh one k are an ira, and
the money goes into the plan as an irase you
don't pay taxes to roll the money into the plan.
But then we're linked to the S and P five hundred,
but we're not in the S and P five hundred
(04:47):
for example. So let's just say that the tariff thing
doesn't work out, Christy and it becomes a full blown
trade war and the stock market goes back down twenty percent. Well,
the money that you put into the in dextinuity is
not subject to market loss. So if you move two
hundred thousand dollars there a year from now, you'll still
(05:08):
have based on the claim's paying ability and the issuing
strength of the company, but you'll have the same amount
of money. So you don't have a risk by funding
that account now. But if in turn, the stock market,
like you said, rallies because hey, they got their trade
deal worked out the tariff war is over, everybody's smiling
and happy. Then you can make a very good return
(05:29):
the right now. Your earning's ability on a plan like
that somewhere near ten to ten and a half percent
per year. Every contract is different. We'd be happy to
go over that into detail with you. But if you're
nearing retirement or in retirement, or if you've got cash
sitting on the sidelines and you're thinking when is a
good time to deploy it, there may be an opportunity
so that you can have some reward without creating more risk.
Speaker 6 (05:53):
And also too mark.
Speaker 2 (05:54):
One of the opportunities that we've seen is for people
that purchased a fixed INDEXTINUW maybe five years ago. Maybe
they're in a ten year surrender charge period in a
contract and they think that they can't make any changes
to that contract because they're still within that surrender charge period.
(06:15):
Often because we're in a different interest rate environment, and
a lot of these contracts don't have what's called market
value adjustments added to them. Some contracts have bonuses added
to them. There's a lot of features and every plan
is different, but what we're seeing is we're seeing the
opportunity for people who bought into the safer contracts, you know,
in a lower interest rate environment, they may have the
(06:38):
opportunity to replace it with a newer contract that maybe
has added index options, higher index crediting options, maybe lock
in options, maybe an upfront bonus.
Speaker 6 (06:50):
And I give you all these different choices.
Speaker 2 (06:52):
Because well they're not there with just one company, you know,
like that's a that's options when we look at different
companies and different plans. But right now is a great
time to look at an annuity that you purchase maybe
five years ago or seven years ago, because the earnings
potential owner newer contract could potentially be much much higher.
(07:16):
So to me, that's definitely an opportunity.
Speaker 4 (07:18):
So reach out to us at seven nine to one
five seven seven three will quickly give you an assessment gladly,
I should say, and quickly if you'd like it that way,
give you an assessment of what you have in terms
of a specific product and whether you could benefit from refinancing,
making a change. But it's not just about one tool
in the tool chest. Remember, we want to look at
(07:39):
your retirement, where is your income coming from, your sources
of income? What about medical medicare? Advanced planning like a
state planning things like that, making sure that your wishes
are known and your legacy is left intact. And then
of course there's risk management as you retire, and there's
the big one, there's tax. It's the five critical areas
(08:01):
of retirement that we work in and we'd love to
help you with that. So we're at seven nine one five, seven,
seveny three. While things are trending in the right direction
market wise, it's still a very tenuous game. Christy, I
would tell you that my gut tells me there's a
little too much optimism right now. I'm I wish you
(08:22):
could have seen to look, Christy just gave me like, really,
that's just my feeling. I think that the market is
being a little optimistic because I think China is going
to play hardball. It's going to take a while for
this thing to work out, so be prepared. That's my
caveat well.
Speaker 2 (08:36):
I think the most important thing, mark in my opinion,
right now, is for people to consider spreading out their risk.
You know, you want to have a good balance of stocks, bonds,
mutual funds, maybe a fixed indextinuity as a bond alternative,
and once you have the right mix I think it's
(08:57):
really important to the course, stay focused. You know, for me,
emotional investing is never good, and that's all we would
tend to see in a time period right now, which
is why we both started the show off this morning
discussing how we're seeing this level of confidence with prospects
and clients coming in.
Speaker 6 (09:20):
That we're really not used to.
Speaker 2 (09:21):
Seeing in a time period where we are experiencing some turbulence.
But I will say being steady, staying the course with
a properly designed plan is really important because if you don't,
if you try to start time in the market, that's
often when you can derail your long term picture in
my opinion. You know, if you miss the best five
(09:44):
days of the market in a year, it can have
a long term negative effect in your portfolio.
Speaker 6 (09:51):
And so stay in the course is really important.
Speaker 2 (09:55):
And also too, I think it's really important that you
know what but is your risk. You'd be surprised how
many people come in they don't have a written plan,
they don't have a tax plan.
Speaker 6 (10:10):
In fact, they'll.
Speaker 2 (10:10):
Say my adviser said, I should see this person, you know,
at another firm for tax planning. But the biggest thing
is they don't know how much they're truly paying, and
they don't know how much risk is in their portfolio.
And that's one of the things that we take great
pride in is really evaluating what risk are you currently
(10:33):
taking in your overall plan?
Speaker 6 (10:36):
Is it the right amount of risk? And what are
you paying in fees?
Speaker 2 (10:41):
You got to learn the facts and to me, these
are our critical components of having a long term retirement plan.
And this is what we do every day, and we'd
love to help you. It's real simple. You just pick
up the phone and call seven nine to one five
seven seven three. You'll just leave a quick message and
(11:03):
we'll get in touch with you on Monday. We'll schedule
a fifteen minute call so that we can start having
the conversation. Remember it is completely complementary. We're not going
to charge you anything to have a phone call or
to even come in or you can go to meet
with usnow dot com and just schedule that fifteen minute
call directly. I think right now is the perfect time
(11:27):
to learn. You know, people are confident, although maybe they
shouldn't be. They are, but why not take the time
to learn the facts now and do you have a
complete plan. There is no retirement without retirement income. We
all want to know where's our income coming from. Do
you have a retirement income plan? We'd love to help you.
(11:50):
This is what we do every day, but it all
starts with you seven nine one five seven seven three
seven nine one five seven seven three or meet with
usnow dot com.
Speaker 1 (12:02):
So we're just getting started on your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. We've
got a lot to get to stay with us. We're
back with more right after the.
Speaker 7 (12:11):
Worried your financial strategy is missing something, Presleywealth wants you
to feel confident going into retirement. See how you're doing
with a free visit by going to the Presleygroup dot net.
That's the Presleygroup dot net or call eight sixty six
three nine oho twelve fifty two.
Speaker 4 (12:30):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money?
Speaker 7 (12:37):
All?
Speaker 4 (12:37):
Will the government take a bigger chunk than you thought?
Remember you still may owe taxes on that money, But
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes.
Speaker 5 (12:54):
It's your money. You deserve to know what's at stake.
Speaker 4 (12:57):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, we'll
work just as hard to help you keep it. Pressley
Wealth Management seven nine one five seven seven three.
Speaker 7 (13:14):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROD 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
(13:37):
call today at eight six six three nine oh twelve
fifty two. That's eight sixty six three nine oh twelve
fifty two.
Speaker 1 (13:46):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management. Again, if you have
questions about where you are on that road to retirement.
You just want to know more. Boy, I want to
make sure I don't run out of money before we
run out of life. Are we going to be okay
if we retire? Two two five seven nine one fifty
seven seventy three. No cost to chat with the team.
They are here to help if they can seven nine
to one fifty seven seventy three. And of course you
(14:07):
can always go to meet with us now dot COM's
just set up a fifteen minute phone call. Hey, here's
a couple questions. I've got a couple concerns. What do
you think? And you go from there meet with us
now dot Com. I'm Mark lay glad you're with us.
We're gonna talk about the couple couple threats that we
all face, and certainly inflation is one of those that
it kind of depends, right whether it's a huge deal
or a smaller deal. But a one percent inflation, there's
(14:29):
still gonna be higher prices down the road, let alone
when it's five to ten percent. But we're gonna touch
on taxes to start with Christy, this is your favorite topic,
I think taxes and one of the interesting parts of
this because we've been talking about this for a long time.
The twenty seventeen Tax Cuts and Jobs Act that Trump
put in in his first term as president, and he
had said during the election, Biden's going, I'm gonna make
(14:51):
sure that ends, and Trump's going, I'm gonna make sure
that continues. I mean that that twenty seventeen Tax Cuts
and Jobs Act for Families ends December thirty first of
twenty twenty five. So we're kind of in that kind
of time period where something's going to happen. It's either
going to end or Trump's going to extend it. Of course,
it's Congress that makes that decision. Where are you on this.
(15:11):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 2 (15:17):
The reality is is that you know, in my opinion,
Trump is going to try to renew his tax cuts.
But we can't build long term plans on what ifs.
We have to build our plans based on facts. Right now.
The fact is is that if there is no change,
taxes will go up beginning January one of twenty twenty six. Now,
(15:40):
even if President Trump is able to get his tax
cuts extended, which you know obviously we would all celebrate
on that. We have to think about the long term
effects of that and what will likely happen long term,
because we do have a very large amount of debt
that has to be paid at some point. So I
(16:03):
would think that taxes, even if we're able to see
them stay at the same level they are right now
beginning in twenty twenty six, it's going to be for
a limited time period. If he's able to get the
tax cuts extended, it's not going to be an indefinite thing.
It's going to have a sunset provision at some point.
So I feel like using the opportunity that we have
(16:26):
right now of being able to make changes to our
long term plan so that we can be more tax
efficient in the long run is a very smart idea.
If we're lucky, we'll get another four years of that.
Speaker 6 (16:39):
But who knows.
Speaker 2 (16:40):
None of us know, We don't have a crystal ball.
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize those taxes in retirement. And many people
have already caught onto the wroth ey er, you know,
contribute to a wroth even inside of a four oh
(17:03):
one K. A lot of people have heard of that.
There's still a lot of misconception about who can who
can do a Wroth contribution versus a Wroth conversion.
Speaker 6 (17:14):
We'd love to help you with that. But there's also
other ways that you.
Speaker 2 (17:17):
Can start planning for long term income in retirement that
would be more tax efficient. For example, a lot of
our younger clients may consider like an index universal life
contract and at some point when they retire, take money
out of it tax free to live on in retirement.
So there's other strategies available that we can use besides
(17:40):
just Wroth planning, and that's what we do at Presley
Wealth Management. We look at the long term effect of taxes,
you know, using today's tax code, and try to develop
a better path moving forward.
Speaker 6 (17:53):
And we want to be your resource.
Speaker 2 (17:54):
So we'd love to have that conversation with you, and
it's a very simple conversation. What are you doing now
or are there things you can do differently? My dad
would always say, slow and steady wins the race. Are
there things that you can do now that that maybe
you don't even feel financially that make a big difference
long term in retirement. And that's what we would love
(18:17):
to help you.
Speaker 1 (18:17):
With two two five, seven nine to one fifty seven
seventy three to chat with the team at Presley Wealth
Management when Matt with our country over thirty six trillion
dollars in debt as a nation at the end of
the day, though, they cannot tax their way out of this. So,
I mean, Trump's tax cuts that he wants to keep
in place are very interesting. And Trump has taken the
(18:38):
corporate taxes and that twenty seventeen Tax Cuts and Jobs
Act from thirty five down to twenty one. He's even
talked about taking that for the corporations down to fifteen,
which I guess. I mean, if they raise taxes on
corporations that we just end up paying more, correct, right,
I mean there's some option where do you think this
has headed? I mean, you can't tax your way out
of this, is what I think.
Speaker 4 (18:56):
Well, I don't think you can tax your way out
of it. You can try to grow your way out
out of it. That's what Reagan did, right. Reagan cut taxes,
stimulated growth. I know, I can hear the echoes out there, yeah,
but I know the yeah butt. But at the end
of the day, the core of what happened was taxes
went down, economic growth accelerated. That will probably be the
Trump doze plan. Here's the thing. I don't know that
(19:18):
they can get us out of this. I don't know
what they'll do. But the headline of this segment is
tackling the twin threats of taxes and inflation. Folks don't
forget they're joined hand in hand. Let me explain. So
let's say inflation continues to run high and you just retire,
and now because of inflation, your expenses are more. Let's
(19:40):
say you're going to plan to retire in five years
and inflation hasn't gotten under control, it's not tamed, it
hasn't cooled off.
Speaker 1 (19:48):
Well.
Speaker 4 (19:49):
When you're pulling money from pre tax dollars, so you
have an IRA worth a million dollars and you're pulling
money out to live on, do you realize you're having
to get double hit A. You're taking more because inflation
makes you take more. And when you take more, now
you have to take more than you planned on taking
because you have to pay the higher taxes on what
(20:09):
you did take to make up for the higher inflation.
Speaker 1 (20:13):
Ouch.
Speaker 4 (20:14):
The single most important thing you can focus on right
now if you haven't retired, is what do you do
about your future tax burden? Because your future tax burden
will absolutely impact your inflation impact. Does that make sense
what I'm trying to say, Christy? In other words, if
I've got a million bucks and I need to draw
forty thousand a year to live on, but because inflation,
(20:34):
I have to draw forty five thousand, I'm really having
to draw more because I have to pay more in taxes.
But if I can take out raw or tax free money,
it doesn't hurt me as badly well.
Speaker 2 (20:47):
And that's why it's so important that you build a
completely diversified plan. You know, when we hear the word diversification,
we typically think of how our money is invested, Diversify
in different areas of the market, diversify in levels of risk.
I like to think of diversification in terms of how
(21:08):
will you draw your retirement income. Will you have funds
that are set aside that will not be taxable, diversify
your sources of income. Maybe maybe be able to pull
from an IRA of taxable bucket, But then consider have
you saved in buckets that are not going to be
(21:29):
taxable where you can mix those sources of income. Not
only does that help in terms of generating your income
and not outliving it because you don't have to take
as much, but often we are able to help people
avoid the IRMA penalties for their Medicare benefits by being
able to withdraw money from non taxable buckets in retirement.
(21:51):
So my question to you would be are you diversified?
Speaker 1 (21:53):
So, and Christy said it, Matt, you know, when taxes,
if the twenty seventy Tax Cuts and Jobs Act does
actually sunset at the end of this year and twenty
twenty six we go back to the seventeen rates of brackets,
your taxes are going up twenty to thirty percent. That's
just correct. That's kind of the way it is right now.
Speaker 4 (22:09):
I don't see that happening, not with Trump in office,
but he could never say never, right.
Speaker 1 (22:14):
So Okay, let's say that this that he does get
to extended at the end of the day Congress makes
that decision. Now he does have his the House and
the Senate on the Republican side, so it gives him
a little better shot at that. But the corporate tax,
it's kind of an interesting thing. I think you're talking
about Reagan, and he tried to spur the economy on
that actually made things better economically for the country. I
(22:36):
guess that's kind of the theory by lowering this corporate
taxes from twenty one to fifteen, if he could do
that right.
Speaker 4 (22:42):
Well, let me add on the national scene, let me
bring it home to the state scene. I do not
want to miss this. Governor Jeff Landry and the state
administration here have radically changed the corporate and state tax
for Louisiana. The corporate tax went down. I don't remember
the exact prison, but it's lower. But here's the real
impact for you, folks. The state has now tripled the
(23:06):
standard state tax deduction. It was forty five hundred bucks
a person. They've tripled that. We now have a flat
state tax of three percent. It was progressive up to
four point twenty five. Now it doesn't matter if you
make little money or if you're wealthy. The state income
tax rate is now three percent across the board for everybody. However,
(23:28):
they did build in a poison pill for the next
five years. The state has raised the state sales tax
from four percent to five percent. That's to kind of
help the transition. So if you're paying state taxes, know
that this year is going to be a good year
for you because you have a about a one point
twenty five percent lower payment and a higher deduction. Huge.
Speaker 1 (23:51):
So when we come back, Christian matter to tack a
little bit about the inflation situation more with Christian Matt
right here on your money matters right after.
Speaker 8 (23:58):
This, Sam might need a loan soon from you. We
have over thirty four trillion dollars in national debt. Where
do you think the money to pay for that's going
to come from? Taxes? Believe it or not, taxes are
at historic lows right now, but how much longer will
that last? A roth Ira conversion might be a good
option when planning for your retirement because you can pay
(24:19):
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
(24:40):
two five to two Uncle Sam needs money, Don't let
him take it from you. Eight six, six, three nine
zero twelve fifty two. Investment advisory services offer through a
wealth management LLC A RETCH should investment advisor. Investing involves risk.
Always consult with the qualified tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations.
Speaker 7 (25:00):
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 1 (25:16):
Pleasure with us today for your money matters with Christy
Smith and Matt Kennedy of Presley Wealth Management the team.
Christy started the company in six Matt joined the team
in o eight. They've been sitting down with folks just
like you for a long long time, helping them figure
out where they are on that road to retirement. Can
I retire? Do we have enough? Are we gonna be okay? Well?
Our money last two two, five, seven, nine, one fifty
seven seventy three. If you'd like to have a conversation,
(25:37):
because there's a lot going on. Every year, things change
whether it's the national government, the local government. Just a
lot going on. And of course Christian Mat've already talked
about the windfall thing for social security. Big for those firemen,
police teachers. You might be able to get some SOB
security call the team find out seven nine to one,
fifty seven to seventy three, and you can always go
to meet with usnow dot com. I'm Mark Kelly. We're
(26:00):
talking about the challenges really of taxes. We touched on that,
and certainly this is a big year for that because
of twenty seventeen Tax Cuts and Jobs Act that Trump
put into place back in his first term. He's going
to try to extend it actually expires for families and individuals.
At the end of this year. The corporate TAXI went
from thirty five to twenty one. That was no end
(26:21):
date in that one, but for us there is an
end date. So we'll see how that all plays out. Certainly,
but when it comes to inflation, Matt, I'm gonna ask
you a question, how much do you think thirty years ago,
nineteen ninety five, how much was a new transmission in
a car?
Speaker 4 (26:34):
Oh, Lord, nineteen ninety five, seven hundred dollars?
Speaker 1 (26:37):
Okay, just making sense. That's a good guess, though, That's
a really good guess. But it actually was. Back in
nineteen ninety five, the average transmission was twenty five hundred,
depending on the make of the model of the car,
fifteen to.
Speaker 9 (26:48):
Thirty seven hundred. You can tell I don't work on
my jek Yeah, exactly. But maybe a rebuilt transmission, maybe
it would be seven hundred. Now, I like your guests though,
but it was twenty time we had out in Irwinville,
boy rebuilt trainer.
Speaker 1 (27:00):
And the reason I bring that up is my daughter's
transmission went out and now she has hand controls because
of her car wreck as a senior in high school.
So she's, you know, hand controlling, and I wonder if
that affected transmission. Because it was only a fifty thousand
miles car twenty eighteen, it should not be out, but
it is. Just so you know, that transmission now costs
six thousand dollars. Wow, So is that inflation? That's inflation,
(27:22):
isn't it.
Speaker 4 (27:23):
Well, I just google him. By the way, it says
on average, replacing a car transmission cost between four and
seven thousand dollars. Holy cow, that's inflation.
Speaker 1 (27:31):
That is your relation and so you think about it,
twenty twenty two is when we saw and we heard
this is the highest inflation we've had in forty years,
and so they're going back to the seventies and eighties.
Speaker 4 (27:40):
Uh.
Speaker 1 (27:41):
And we got up to nine point one percent inflation
in twenty twenty two. And I think Christy, it's fair
to say that once we had the Great Recession O
seven to early on nine, inflation was not really a
factor until twenty twenty two, was it.
Speaker 6 (27:54):
Well, it really wasn't.
Speaker 2 (27:55):
And we've built our plans for our clients to combat inflation,
even though we haven't seen high inflation until recently. It
is really important that when you're looking at your long
term plan that you've actually planned for inflation, because if
you don't plan for inflation in ten years from now,
(28:16):
your lifestyle is going to be a lot You're going
to be doing a lot less than what you're doing now.
So you need to build a overall plan that is
going to take into consideration inflation. And to do that,
what we're going to use is we're going to build
strategies that are going to highly diversify the income. We're
going to take into consideration. The COLA for social Security benefits. Now,
(28:38):
keep in mind the cola increase. The last couple of
years because of the level of inflation has been higher,
but this year we're seeing a lower cola.
Speaker 6 (28:49):
It's really important that you build a.
Speaker 2 (28:52):
Long term plan that includes inflation protection, and we're going
to do that in building your smart plan.
Speaker 6 (29:00):
At Presley Wealth Management.
Speaker 1 (29:02):
It used to be the one hundred year average was
about three percent or inflation, So that's kind of what
you would use I would imagine, is that right?
Speaker 4 (29:08):
I think it's three point one four something. I think
the story of twenty twenty five will be inflation. It's
that simple. You can already see it in the beginning
of the year in the equity markets. You know, it's
all this enthusiasm over the election turning out the way
it did, a pro Wall Street president, an anti regulator
regulatory president in President Trump was elected. The market popped immediately.
(29:33):
But we're seeing some cracks in the market, and the
primary reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 1 (29:51):
Hey, explain this to me, because it's a confusing thing
to me is that, Okay, the FED, Federal Reserve Chair
Jerome Powell, they've been fighting inflation, right. They rose the
interest rate levels during that twenty twenty two time period.
In twenty twenty three, and then last year they were
going to lower them like five or six times. They didn't.
They did it twice I think at like a quarter percent.
(30:12):
But they're lower they're trying to The Fed's trying to
lower the interest rates, but yet the Federal Reserve or
the Treasury interest rates are going up. How does that
work well with that?
Speaker 4 (30:21):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts
that is creating perpetual high inflation. And so now the
(30:43):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting this stock market.
So it's kind of picked your poison, Christy, you know,
so That's why one of the reasons is that you
really need to look at your risk profile this year
(31:03):
if you're close to retiring. We're not saying a horrible
market crash is coming, but all the analysts feel like
twenty twenty five could have a lot of bumps along
the way.
Speaker 2 (31:12):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently. You know,
it's crazy to me, Mark, because people will come into
the office as they're looking for a second opinion, which
we highly encourage. I ask them to see their written
(31:34):
retirement plan. Maybe they retired three years ago. They give
me their investment statement and they say, this is all
I have.
Speaker 6 (31:42):
The thing is is that.
Speaker 2 (31:44):
You know, when you're building a long term retirement plan,
you need a written plan. And while we've been very
blessed with great markets, anyone who retired in the last
five years really hasn't had to worry because things have
been okay. It's when you get into a situation like
in two thousand and seven eight, like my dad went
(32:07):
into and his wasn't in that time period. My dad
actually experienced that in two thousand, that things go well,
they go wrong, and you owe it to yourself to
look and be proactive versus reactive. So I would highly
encourage any of you that retired in the last five
years to just get a retirement checkup eight you know,
(32:30):
find out how much risks do you have in your portfolio?
Do you have a diversified tax plan, do you have
a plan that protects you for higher levels of inflation
long term in retirement? Now is actually the perfect time
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
(32:50):
with me when I say that nothing brings me more
joy than to be able to tell someone I think you're.
Speaker 4 (32:57):
Good, oh, totally the right track, And let me tell
you folks, to put you all at ease. I would
say that probably seventy percent of the people slash couples
that walk in and say our plan is to retire
in three years or two years. Oftentimes we're able after
we do the homework and dig into things to say,
(33:17):
you know, if you wanted to retire now, you really could,
and they're quiet for a minute. And they're like, are
you serious. Well, yes, based on your present investments, now
we would have to build a plan to make sure
that we have a stable income, that we've reduced the risk.
But you know we've done this long enough that it's
not just about the number of dollars you have. Please
(33:38):
don't make that mistake. As you head into retirement, the
key is not your rate of return, it's your range
of return. So if you're greedy and you're all focused
on well, the market was up twenty percent and I
made twenty two let's fine if you're working and planning
to work a while, But if you're closing in on retirement,
you want to make sure that your range of return
(34:00):
is in a smaller range. What do I mean by that?
When things are going good and you can capture say
three quarters of the upside of the market, great, Why
Because you don't want to get clocked when things are bad.
You want to mitigate the risk on the downside to
give you a higher degree of success in retirement. Range
of return as you approach retirement and first get into
(34:23):
retirement is so much more important than rate of return.
Let's talk about that more. Seven nine one five seven
seven three. It's what we do every day. We're retirement
planners and we focus on a five part holistic retirement plan.
Sources of income, medical and medicare, advanced planning, risk planning,
(34:44):
and tax planning. Reach out to us at seven nine
to one five seven seven three, or you can set
up a phone call online at meetwith usnow dot com.
Speaker 1 (34:53):
Back from their final segment with Christian Matt right here
on your money Matters right after this.
Speaker 7 (34:59):
Is the price 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
for your retirement. Called Presley Wealth Management at eight six
six three nine oh twelve fifty two. That's eight six
(35:21):
six three nine oh twelve fifty two.
Speaker 5 (35:26):
Stop for a moment, think about this.
Speaker 4 (35:28):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 7 (35:33):
All?
Speaker 4 (35:33):
Will the government take a bigger chunk than you thought?
Speaker 5 (35:35):
Remember you still may.
Speaker 4 (35:37):
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 (35:51):
It's your money, you deserve to know what's at stake.
Speaker 4 (35:53):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine nine
one five seven seven three. That's seven nine one five
seven seven three. Look, you work hard for your money,
will work just as hard to help you keep it.
Presley Wealth Management seven nine one five seven seven.
Speaker 7 (36:11):
Three 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,
(36:32):
making sure you have the retirement you have always wanted.
Call eight six 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 1 (36:50):
Mind you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management. I'm
Mark Elliott Presleywealthmanagement dot com. To learn more about Christy,
Matt and the team, find out about upcoming events, a
lot of great information on the website Presley Wealthmanagement dot com.
You know, I think it was not long ago we
did you guys had some tips for us for a
happy retirement. Well, now we thought we'd follow that up
(37:10):
with some planning tips from actually people that actually have retired.
So that's where we're going, because who better to learn
from than people who've actually done it? And that's certainly
some of that. I think the inside you and Christy
and Matt, you guys can give your clients is learning
from the retirees that you work with and have worked
with for a long time. That's kind of a neat thing.
So these are five super simple retirement planning tips from
(37:34):
real retirees. They're straight from people who've been there before.
So Christy, I'll start with you. What's tip number five
from the from the people that have already retired?
Speaker 2 (37:43):
Well, tip number five is live below your means. You know,
it sounds such common sense, but you'd be surprised how
many people we meet with in the very beginning when
we say how much do you need to live on
in retirement and they actually don't know? You know, it's
it to me if I was, you know, if I
(38:05):
was looking forward to retirement and you know, two, three,
four years five at the most, I would I would
want to know how much do I actually need.
Speaker 4 (38:14):
One of the things you've always said, and I love
it is many of our clients have said to us,
you know, we're going to test drive the retirement. And
so let's say they're about two years out. They may
still be making really good money. Maybe they've got one job,
two jobs, you know, husband, wife, both working, and oftentimes
we'll say, well, you told this five thousand dollars a month,
we'll do the trick, see if you can save the rest,
(38:37):
and see if you can actually live on that five
thousand dollars. Now, they may not have started Social Security yet,
that may be all of their wages, right, but if
you can comfortably live on five thousand, now, you know, okay,
there's my benchmark. So maybe test drive your retirement. Because
if you go from making one hundred and eighty thousand
a year and then you suddenly retire and you're like,
(38:57):
wait a second, I can't live on sixty grand year.
What was I thinking that that presents a big problem. Yes,
So as much as you hate the B word, some
of you do the budget practice the budget.
Speaker 2 (39:08):
You know, sometimes we'll have a client that'll come in
that is our prospect that's coming in trying to figure out,
you know, can they retire and they start looking at
how much their paycheck is currently, but they will forget
that they are having deductions made from their paycheck to
pay a car note that's going directly to a credit union.
(39:28):
So not only do you want to look at what's
coming in currently in terms of your paycheck, but you
need to take into consideration or their expenses that are
being paid before your paycheck hits the bank account.
Speaker 4 (39:41):
This is raw math, okay, Mark and Christy, very very
rough raw math. So Christy, I'm curious if you'll agree.
I would say that the average person working if they said, hey,
I want to live exactly like I'm living right now,
then you'll need about eighty percent of the income you're getting.
So if you're making one hundred grand a year and
and you pay your taxes, you put money in the
four to one k, that means that you're probably able
(40:04):
to live on the net of maybe sixty because you've
got gas, you're burning meals, you're taking dry cleaning. You
might be doing so if you look at your current
net while you're working, about eighty percent of that will
probably probably be okay.
Speaker 2 (40:20):
Well, of course you got to consider are you going
to want to travel more? A lot of our clients
want to travel first the go go years, those first
five years in retirement. They want to travel more. There's
things that they want to do on their bucket list
and we have to plan for those as well.
Speaker 4 (40:34):
So just practice.
Speaker 2 (40:35):
I would say that the tip number five really bowls
down to you, know, know how much you need to
live the retirement you want to live before you actually retire,
and know that you can accomplish that.
Speaker 5 (40:48):
All right, Mark, we camped there for a while. Sorry,
go ahead.
Speaker 1 (40:50):
Yeah, And I would say that tip number five is
really tip number one. It is. It is way better
off if you just lived below your means. Tip number four, Matt,
what is that one?
Speaker 4 (40:58):
Structure your savings? Look, if you think it's too late,
it's not too late. Keep saving. Make sure you're saving
in the right places. If you're pouring all of your
money into a pre tax four oh one K. Maybe
that's not the best idea. Have you thought about taxes.
We can have that discussion when you reach out to
us at seven nine one five seven seven three.
Speaker 1 (41:17):
All right, Christy. Tip number three is important for you
and your husband.
Speaker 2 (41:21):
Well, Tip number three is invest in your health. You know,
we talked about this just recently, YEP, on one of
our programs. To me, I think it's really important before
you retire to start really being mindful of your health
because think about it, do you want to retire and
then get sick? And I've recently had some experience with this.
(41:44):
My husband has had some health issues recently and we've
had to make changes in our lifestyle. So I think
it's really important while you're working to really get that
thorough check up and see all their things. When I
say it, you know, there's many things you can do now,
not just a hey, go to the doctor, let them
look you over and you're done. Like, there's places you
(42:07):
can go that do all kind of screenings for you
head to toe and so you have a very clear
picture of what you need to focus on. To me,
I'm getting active and involved in your health before you
retire is critical, and.
Speaker 1 (42:24):
I think we would all agree. I mean, if you
had to choose between money and health, you have to
choose health. So yeah, but I would like to have
money and health. That would be a great way to
go into retirement.
Speaker 6 (42:33):
We all want that.
Speaker 8 (42:34):
Yeah.
Speaker 1 (42:34):
Now, tip number one is one that we all know,
start saving early. So that's a tip for your grandkids
or your kids. Make sure they start saving early.
Speaker 4 (42:40):
So let's get to the real number one, which in
our list is number two.
Speaker 1 (42:43):
Yes, I think that one is the one that's pretty interesting.
It says, don't rush into retirement. Explain that some people.
Speaker 4 (42:50):
Were rushed into retirement. I remember Christy back in twenty twenty,
COVID hits people are being offered early buyouts, and it
created a lot of anxiety because people who didn't feel
emotionally ready to retire were forced to retire. Looking back,
many of those people are now happily retired, stayed retired,
and they're saying, you know, God works in mysterious ways.
(43:12):
I feel great that I was able to actually leave.
Many though, went back to do consulting work, went back
to find some other work, not because they couldn't afford
to retire. They just weren't emotionally ready. Retirement is just
not about the money. It's about an emotional decision, and
as a married couple, it's about a joint decision.
Speaker 6 (43:31):
Right correct.
Speaker 2 (43:32):
And I would also say that not rushing into retirement
is extremely important because if you're not truly ready, think
about it. Most of us are able to save the
most about five years before we retire. Yeah, And so
if you don't rush into retirement, then you're able to
put that money, save more so that you can actually
(43:54):
live the retirement that you dream of.
Speaker 6 (43:57):
It's not all about money. I will say.
Speaker 2 (43:59):
I've seen people that were forced into retirement for one
reason or another, and sometimes it's the mental aspect that
truly gets to them. But to me, being able to
take advantage of your highest earning years and typically you're
in the least amount of debt at that point, you know,
(44:19):
and you're able to save more about five years before
you retire, So to me, that's extremely important. I always
go back to test drive your retirement. It's funny because
we won't buy a car typically without test driving it.
We just don't. We want to get behind the wheel.
We want to feel how it goes. Some want to
test drive, you know, two or three different vehicles to
(44:41):
make sure which vehicle is going to feel the best,
you know, But we don't think in terms of test
driving our retirement. And I think it's so important that
we take the steps to do that, even two or
three years before you retire. If you're going to retire
with less income than what you're currently making, why not
(45:03):
create that retirement scenario while you're still working so that
you could determine is it going to work for you.
There's so many different pieces that go into building a holistic,
complete retirement plan, and this is what we do, and
we would love to help you. Give us a call
at seven nine one five seven seven three seven nine
(45:25):
one five seven seven three to schedule a fifteen minute
phone call so we can start the conversation or go
to meet with usnow dot com and schedule that fifteen
minute call. We'd love to help you, and that's what
we do every day.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLCAEWM, a registered investment advisor insurance products are offered
through the insurance business the Presley Group. Presley Wealth Management
is an investment advisory practice offers products and services through
AE Wealth Management LLCAWM, a registered investment advisor. AWM does
(46:07):
not offer insurance products. The insurance products offered by the
Presley Group are not subject to investment advisor requirements. AWM
and the Presley Group are not affiliated companies. Investing involves risk,
including the potential loss of principle. Any references to protection, safety,
or lifetime income generally refer to fixed insurance products, never
securities or investments. Insurance guarantees are backed by the financial
strength and claims paying abilities of the issuing carrier. This
(46:29):
radio show is intended for informational purposes only. 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
(46:51):
contained herein provided by third parties have been obtained from
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 6 (46:58):
This radio show is a paid placement
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