October 11, 2024 • 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 deeper conversation, set up an appointment online at meetwithusnow.com or by calling (225) 791-5773.
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Episode Transcript
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Speaker 1 (00:00):
When the news is national.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, Rock Dane,
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana Local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire, Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 2 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement and that's where I believe it's
so important that.
Speaker 4 (00:26):
You do have a full pledge retirement plan.
Speaker 5 (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 6 (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 of
Christy Smith and Matt Kennedy. Matt, of course an investment
advice representing, been with the team since two thousand and eight.
Christy started Presley Wealth Management back in two thousand and six.
Christy will join us in the next segment. Matt's going
to kick off the show today for if you have
any questions, do you want to sit down with the team.
Anything that Matt talks about this first half or Christy
(01:11):
talks about later on. It's the number is two two
five seven nine to one fifty seven seventy three, no cost,
no obligation to chat with them, two two five seven
nine to one fifty seven seventy three. But the easier
is just meet with us now dot com. Set up
your own time to chat with them. Meet with us
now dot com. We talk retirement here and here's our
topic to kick the show off. Mat. I think it's
(01:31):
kind of interesting because you know, if you're a parent,
you know firsthand that we want better for our children
in life than we want for ourselves. I think that's
that's kind of typical. I want them to become more confident,
more stable, more prepared. But here's the question we're posing
to you today, not just Matt, but to you listening.
Do you feel like that you are as compared to
(01:54):
your parents? How do you feel about your financial position?
Are you in a better position than your parents were
when it came to retirement. Matt, there's a poll, there's
always a pole, there's always a study, and this one
is about how younger Americans see their retirement really in
a way compared to their parents' retirement.
Speaker 5 (02:11):
Right, Yes, I love this survey from CNBC's August twenty
twenty four Your Money Retirement Survey. Eighty two percent of
you who are still working say that achieving a comfortable
retirement is much harder, are somewhat harder than it was
for your parents' generation. Show of hands, how many of
(02:33):
you believe that, if you're driving, keep both hands on
the wheel. Eighty two percent of you say achieving a
comfortable retirement much harder, somewhat harder than it was for
the parents' generation. That kind of caught me by surprise,
And then I started thinking about the why, Mark, And
I've got some theories, and I know you do too.
Speaker 1 (02:49):
Yeah, And I think that's because I talk about this
a lot. Because my grandparents retired in the seventies and
they had pinchers. My parents retired, shoot, I guess they
would have probably been in the nineties, but they retire
with pensions, right, My grandparents they had jobs with pensions.
My parents, my dad was a university coach, so they
had a pension. My mom did not. She worked at
(03:09):
a bank, they didn't she didn't have a pension. So
I think income was what my grandparents for sure, and
my dad what they had over they have over me.
They had income where they weren't worried about their income.
Speaker 6 (03:22):
But but really, let's think about this, okay.
Speaker 5 (03:24):
So my dad was a little bit of a different
situation because he was a pastor of a church. And
you know, he wasn't exactly flying a helicopter around South Louis.
He was the pastor of a church. Dad had a church.
He also worked as a welder, and so we were
just a solid middle class family. But Dad had to
technically have two jobs to do it. But I think
(03:44):
back to like my grandparents and things, you know. So
to me, the biggest difference that some of you were
saying it's harder to achieve a comfortable retirement is because
on average, for most Americans, our parents. I'm fifty eight, right,
so my parents are technical the silent generation. But if
you're listening and you're younger and your parents are boomers,
we'll use that for the example. Many of them, guess
(04:07):
what they had, like you said, pensions, So they may
not have had as much saved up, but they had
a guaranteed source of income in addition to social security.
Most had pensions well through the years, Especially starting around
the mid eighties early nineties, pensions begin to fade away
and fewer and fewer companies offered pensions.
Speaker 6 (04:27):
Some pulled the pensions away.
Speaker 5 (04:29):
And they shifted the burden away from the place where
you worked, and the burden became your burden to save
into the four h one k et cetera, et cetera.
That's part of it. And also, look, let's face it,
we are a much more materialistic generation than our parents.
You know, it's expensive to buy an iPhone every two years.
(04:49):
My parents had one car, We had a family car.
Right now everybody in the family typically has a car.
Housing prices have exploded, even comparatively speaking, the same house
today is a lot more expensive than it was back
whenever our parents were raising us. But also, Mark, we
(05:10):
also live in a lot bigger houses, right, I mean,
we live in a much larger house typically than what
our parents had. But well, I can give you an example,
I can give you a person has shifted. Yeah, okay,
give me an example.
Speaker 1 (05:21):
For example, my parents moved into this house that I
grew up in when I was in second grade. Okay,
so what am I second grade seven? Maybe? Anyway, I'm
sixty five basically now, Okay, So I looked at that
so I'd have been in the seventies early seventies, right,
So I looked at that house in two thousand, my
parents had bought it for seventeen thousand, five hundred dollars.
(05:42):
It was for sale for one hundred grand. I'm like, wait,
my parents only paid seventeen thousand for this, you're a
little high twenty five for right.
Speaker 5 (05:50):
Now, Hey, if your parents lived in california'd be worth
a lot more.
Speaker 1 (05:53):
Right, Yeah, exactly.
Speaker 5 (05:54):
But the study lists all kinds of interesting data, such
as millennials carry on media non mortgage debt of thirty thousand,
five hundred and fifty eight dollars, so take away the house.
Millennials tend to live more comfortably with debt. I remember
my parents just preaching debt.
Speaker 6 (06:13):
Debt is evil.
Speaker 5 (06:13):
I hate debt, right, so we're more comfortable with debt,
we live larger.
Speaker 6 (06:18):
But I think about my parents.
Speaker 5 (06:20):
My parents were, you know, typical middle class working family.
But my parents were always pinching a penny today to
help us tomorrow, right, save it for us down the road.
We want to lead this to you. The mind shift
among boomers', younger boomers especially has been I want to
spend money on experiences with my children. When I sit
(06:43):
down with couples who are maybe in their early sixties
preparing to retire or just recently retired, you know what
they often talk about, Mark, Hey, we're taking the kids
and all the grandkids and we're going to Disney, or
we're going to the mountains and maul and par treating.
But they're thinking, and I can't disagree. I feel the
same saying, wait, I would rather build an experience now
(07:03):
than to say.
Speaker 6 (07:04):
Well, I left you four hundred thousand dollars when I died,
So that's part of it.
Speaker 1 (07:08):
So I think that's pretty cool too. That opportunity is Yeah.
And if you want to sit down with Matt and
the team at at Presley Wealth Management and talk about
your plans for retirement and legacy planning all that, how
do you want to leave things? That's meet with usnow
dot com. Meet with us now dot com. You can
always call them as well. Meet with us now dot
com to me is easier to remember though than two
two five, seven ninety one fifty seven seventy three The
(07:28):
other part of this survey or poll is also the
fact that people are living now five ten years longer
than our predecessors, So that's also longevity as a factor
in this.
Speaker 6 (07:38):
Absolutely. Here are the stats. I love the stats.
Speaker 5 (07:41):
If you were born in nineteen fifty, the average life expectancy,
average life expectancy for a man in nineteen fifty was
sixty five and a half years. Mark, I am fifty
eight and a half. You were how old?
Speaker 1 (07:55):
Mark sixty five?
Speaker 6 (07:56):
Basically, oh, you're almost done, dude, you only have a
half a year left. Party on.
Speaker 5 (08:01):
But if you were born in nineteen fifty, your life
expectancy was sixty five and a half for a man,
seventy one for a woman. Today, if you were born
in nineteen ninety one, millennial, right, the average life expectancy
is seventy two years for a man, seventy nine years.
Speaker 6 (08:18):
For a woman.
Speaker 5 (08:19):
Guess what, If you're gonna live six, eight, nine, ten
years longer, then that means you're gonna have to have
more money. And if you pile the debt on top
of the money that you have saved, then you've got
to spend longer. Right, It's not uncommon for us to
see people with a pretty large mortgage while they're in
retirement in their mid sixties, which brings up the big question,
(08:41):
do I pay off the house? Et cetera, et cetera. Listen,
those are all questions we can tackle. I think the
most important thing that you can work towards if you
feel like you're behind on savings is how can you
save more? Can you eradicate debt before retirement, and can
you save in a way that you will not be
(09:01):
paying so much in taxes when you retire. I think
that is our generation's clarion call. If you're in your
forties fifties and planning for retirement, if you're still saving
like our parents, save your traditional four oh one k
traditional ira. Back then, the old rule was well, you'll
(09:21):
always be in a lower tax bracket when you retire,
and that pretty much held true. I do not believe
that's going to hold true going forth. So if you
are planning to retire within the next five years, and
you still have at least five years, you've got time
to really aggressively tackle debt, and aggressively tackle one of
(09:42):
your biggest debts that you don't think about. That's your
debt to the government, because an ir A is an
io you to the irs. You may have a million
bucks in your four oh one K, which is like
an IRA, but do you realize that forty percent of
that long term is probably going to end up in
the hands of the government at some point, federal, state,
(10:03):
et cetera. So let's talk about strategies at our sit
down meeting that help you not only manage risk when
you're retired, but let's talk about the big t taxes
in such a way that we can eliminate a large
amount of your taxation when you're in retirement. Because if
you have tax free money raw off, et cetera, and
(10:23):
you take a dollar out, that dollars years to spend.
But if it's regular IRA, regular four oh one K,
taxes rise in the future, you may only have sixty
five cents of that.
Speaker 6 (10:33):
Dollar to spend.
Speaker 5 (10:34):
That alone can cause you to have a retirement shortfall.
So if you'd like to talk about this and how
we can help you with a retirement money map and
a plan to really tackle debt, savings and taxes. Even
if you feel like you're behind on saving, it's never
too late to plan. Where it's seven nine to one
five seven seven three. That's seven nine one fifty seven
(10:57):
seventy three. If you call, you'll get the machine. We'll
call you back on Monday. Casey from the office of
calling you back and set up a time for us
to chat. Or like Mark said, just go to meet
with usnow dot com. Meet with usnow dot com. We
carve out fifteen or twenty minutes to chat on the
phone kind of see where you stand as far as
retirement planning, what your biggest pressing concerns are. Then we
(11:18):
sit down face to face, no cost, no obligation, and
build a plan for you. That's seven nine one five
seven seven three. Or meet with usnow dot com.
Speaker 1 (11:27):
Hey, did you see this? Matt? This will wrap this
segment up and Christy will join us when we come
back on your money matters. Hershey is turning its candy
into energy drinks and protein powders with C four So
the Hershey Company, which we all think of right Hershey's
Chocolate Bars in struck a deal with C four Energy,
a top selling supplement brand that has gained popularity as
people have looked to build muscle and work out more
(11:48):
following the pandemic. Hershey's Namesake Milk chocolate and Reese's peanut
butter and chocolate will soon be sold as protein powders,
and It's Jolly Rancher candies will be turned into bubbly energy.
I'm going to six makes a drinker then Hershey, yeah,
Reese's are right in my wheelhouse. This is incredible.
Speaker 6 (12:06):
I love it.
Speaker 5 (12:07):
They're making something quote unquote bad for you, good for you,
good stuff exactly.
Speaker 6 (12:11):
I'm going to the store right now, mark you back later.
Speaker 1 (12:13):
All right, well, Christy, you got to be back here
in one minute. We have more dor money matters right
after this.
Speaker 7 (12:21):
Be smart when it comes to your retirement. Presley Wealth
Management has a smart plan to help you better understand
the process. Set up your no consultation appointment to get
your smart planning in place called eight sixty six three
nine oh twelve fifty two. That's eight six six three
nine oat twelve fifty two.
Speaker 8 (12:42):
It's nice when you can get everything on your list
in one place, isn't it? Christy Smith? That the Presley
Group agrees. That's why she offers comprehensive retirement planning all
under one roof. You shouldn't have to go to one
place for information about tax planning, another for estate planning,
and another for retirement income planning. That's why the Presley
(13:02):
Group was started. Christy Smith wanted to build a company
that could help families with all aspects of their retirement.
The Presleague Group is more than just convenient, their knowledgeable
and experienced. To set up a meeting with Christy Smith
and her team to talk about your retirement plan, all
of it, call eight six six three nine.
Speaker 1 (13:22):
Zero twelve fifty two.
Speaker 8 (13:24):
That's eight six six three nine zero one two five two.
The Presley Group one stop for a wealth of retirement
solutions eight sixty six three nine zero twelve fifty two.
And investment advisory service is offered through EIGHTE Wealth Management LLC,
a registered investment advisor.
Speaker 7 (13:44):
You're listening to your money Matters with Christy Smith and
Matt Kennedy. To set up your fifteen minute meeting with
the Presley Wealth Management team, call eight six six three
nine zero twelve fifty two.
Speaker 1 (13:58):
Welcome back to your money Matters with Christy Smith and
Met Kennedy of Presley Wealth Management. I'm Mark Llay, glad
you're with us today. We're talking retirement obviously, that's what
Christy and Matt and the team are all about helping
you create your smart program.
Speaker 6 (14:09):
If you have any.
Speaker 1 (14:10):
Questions, it's two two, five seven nine to one fifty
seven seventy three. There is no constant chat with the team.
He got some questions or concerns, reach out. All right,
you guys are too young. But Dwight David Eisenhower General
World War two? Do you realize he is the only
president from the state of Kansas. I don't know if
you knew that. I did know that I grew up
in Kansas. Okay, So here you go. Here's what Dwight
(14:32):
David Eisenhower says. And the reason I bring this up
because I think this is kind of fun. Eisenhower passed
away in like March of nineteen sixty nine. I was
nine years old. We lived right across, probably seventy five
yards from our front door were the railroad tracks. So
Eisenhower passes away, and they gave you everybody who was
on the train track path for him going to Abilene, Kansas.
(14:55):
They said, here's about the time he would come through. Really,
So my mom and dad get my sister and I
up at three in the morning to walk across the
street and we watched the train roll by the railroad tracks,
and of course you have the flag draped railroad car
where Eisenhower is, and they took them to the eventually
ends up being the Eisenhower Museum in Abilene. But I
thought that was kind of cool. I still remember that cool. Yeah,
(15:16):
it was nineteen sixty nine. But here's what Eisenhower said.
So Christy and Matt, you both can give me your
take on this, because I think it's interesting. Eisenower says,
in preparing for battle, I have always found that plans
are useless, but planning is indispensable. What do you think
to me, It's that, Okay, things are going to change.
Speaker 6 (15:35):
We got it.
Speaker 1 (15:35):
We go into the battle with a strategy, and the things.
Speaker 6 (15:37):
You're in the battle you have to adapt. That's a
great point. Read that one more time.
Speaker 1 (15:42):
So in preparing for battle, I've always found that plans
are useless, but planning is indispensable. Well, that's power, that's
kind of your start power, that's kind of your smart plan.
I mean, you're gonna put it down, but it's not
written in stone because lives change, life happens.
Speaker 4 (15:56):
Yeah, right, well, and I think that's too.
Speaker 2 (15:58):
Part of having a tree plan is not only creating
the plan, having an understanding of what is retirement going
to look like, but as things change, being able to
adapt and work that plan. You know, it's kind of
like we we decide we want a certain career in
high school, and let's say, you know, we're going to college.
Speaker 4 (16:20):
We just we set a degree, we work towards that.
Speaker 2 (16:23):
Then we all of a sudden decide we don't want
to be a doctor, we want to be a in marketing,
So we have to adjust our plan. And I think
that's what it's. It really boils down to us understanding
that while many of you already have a plan or
may think you have a plan, have you looked at
it recently and have you have you, you know, determined
(16:46):
do you need to make changes? Because a well thought
out plan is probably going to make adjustments on an
annual basis based on your needs, because your life is
going to change.
Speaker 1 (16:57):
You know, when you think about the retirement world today, Christy,
you and Matt, when you guys sit down with people,
most of their money is sitting in four one ks
and iras for tax dollars, yeah, work dollars.
Speaker 6 (17:07):
In words.
Speaker 1 (17:08):
It used to be that the largest I think asset
that people had in my grandparents' time would have been
their home, but now it's in iras and four to
one ks, those tax deferred tools. Well, the Secure Act
of twenty nineteen did away with the stretch IRA, the
two point zero which happens Secure Act two point zero
and twenty twenty two. They've changed a lot of retire
for things. Requirement of distribution's gone from seventy and a
(17:29):
half to seventy two, then from seventy two to seventy three,
that happened in twenty twenty two, and then in twenty
thirty three that rmd AG is going to be seventy five.
So they keep moving the target line for you, which
you think is good, but that actually lets your tax
problem get just grow a little bit. Yeah, the stretch
IRA is a big deal at that one away that
probably did adjust some of your smart programs, I would imagine.
Speaker 5 (17:51):
So let's talk about that because you let's unpack that.
As my dad used to say from the pool. Butit
so once upon a time, if you saved into a
four to one k I or in other words, pre
tax dollars, you were saving pre tax because you were
always told look you'll always be in a lower tax
bracket when you retire. So if you put twenty thousand
dollars in your four h one K this year, you
(18:13):
get to take a deduction on that twenty thousand dollars. Now,
if that twenty thousand becomes sixty thousand by the time
you retire, when you get ready to pull that money
out and live on it, you've got to pay taxes
on every dime you withdraw, but you'll always be in
a lower tax bracket.
Speaker 6 (18:30):
Well, I can tell you, folks, We've.
Speaker 5 (18:31):
Done this a long time, and there are plenty of
people who aren't necessarily in a lower tax bracket through
their entire retirement. We see people who are in a
lower bracket when they first retire. But if you're sixty
six sixty seven and you retire, your taxes will probably
go down. However, by the time you get to the
(18:51):
age you are required to withdraw money from your taxable buckets.
That's called your required minimum district. Christy, how many times
in our retirement money map do we see a couple
that ends up by the time they're in their mid
to late seventies paying more in projected taxes than they
were when they were working.
Speaker 2 (19:12):
Well, it's not uncommon. We actually see it pretty often.
And I think that's where we have to start thinking
about things differently. Even if you're listening this morning and
you're young and you're working and saving in your four
oh one k, maybe you ought to consider saving more
into a wrath inside of your four oh one k
instead of all pretexts. Just recently, I was having a
(19:32):
conversation with my son in law and he's always been
a discipline saver in terms of retirement savings. And we
were talking and he said, Miss Christy, like, if there's
anything that I need to be doing specifically, will you
let me know besides saving? And I said, well, are
you saving in pre tax money or how are you
saving in your four one k? And he goes, no,
(19:53):
I'm paying all the taxes now. And I looked at
him and I was like, man, you just made me.
He just made me so proud of you, because not
many people his age, I mean, he's not even forty
years old yet understand the relevance in that, because think
about it, when you're retired and you're needing to generate income,
you can actually pull less out of your retirement accounts
(20:14):
if you're not having to pay the taxes.
Speaker 5 (20:16):
Right, So a quick example, let's say you need three
thousand dollars a month extra to live on. If that
money is in an IRA or a four to oh
one K, you're going to need to pull out, eh,
probably about sixteen seventeen percent more than three thousand. Come on, christy,
quick math, maybe thirty five hundred and fifty dollars to
(20:36):
get three thousand. But if it's a WROTH, you need three,
you take three. That means your money lasts longer. So
that's a and again, we can help you determine should
you be saving tax free in a WROTH environment or
should you be saving pretax. Don't just rush out and
suddenly sign up for your wroth because it will impact
your take home pay, all right, we can help you
(20:58):
determine that.
Speaker 6 (20:58):
Yeah.
Speaker 2 (20:59):
For example, if you're if you need three thousand dollars
a month net, and let's say your your average tax
rate is fifteen percent. I know we don't have a
fifteen percent tax bracket right now, but many are hitting
the twenty two percent tax bracket. And so I always
like look at the effective tax rate. So let's say
you're in an effective tax rate of fifteen percent and
(21:19):
then five percent state. Now you're having to withdraw three thousand,
seven hundred and fifty dollars a month, So that added
seven hundred and fifty dollars a month every single month.
Speaker 6 (21:28):
Erode your account faster, Yes.
Speaker 4 (21:30):
Because you're just giving that away to taxes.
Speaker 2 (21:32):
So just creating a plan, working the plan, and understanding
that as as the name of the game changes. Because
we can't always predict what the rules and you know,
consequences are going to be in the future, we can
expect you know, okay, they're going to be changes, and
so a properly designed plan is going to reevaluate on
(21:52):
an annual basis, so we can determine do we need
to make changes. Again, it's all about having a plan.
We'd love to help you. If you have a current plan,
we'd love to give you a second opinion. If you
don't have a written plan, we would encourage you to
give us a call. It's it's really that simple making
a phone call two two five seven nine one five
seven seven three two two five seven nine one five
(22:15):
seven seven three, or just go online and go to
meet with us now dot com and schedule a fifteen
minute call.
Speaker 1 (22:22):
So before we wrap this segment up, we'll come back
talk more about the IRA planning that certainly you guys
do with your clients oppresslely wealth management. But you always
say that, okay, this if you're going to transfer, if
you're gonna take from IRA money or four O one
K money and then turn it into the wroth world,
you're gonna have to pay taxes at that time. But
you always say, boy, it'd be great to have money
(22:44):
in tax free, but not everybody should do it. How
do you determine? Boy, it makes sense, doesn't make sense.
You should do the wroth war oh one k work.
You shouldn't do the wroth war one K work. I
would think that's a lot of you got to sit
down with people to make those decisions. I would imagine
you do.
Speaker 6 (22:58):
And it involves computer software.
Speaker 5 (23:00):
And again that's why I said, don't just rush out
and do it, because there are short term and medium
term implications. I mean, I don't mind telling you I
save into my four oh one k here at work.
I save as a rath and it kills me on
taxes because I'm paying taxes on the money that goes
in which means my take home pay.
Speaker 6 (23:19):
I'm sure Christy does the same thing.
Speaker 5 (23:20):
My take home pay is less because I'm paying the
piper now, but that's my decision. But how much less
is something we can help show you. It's not just
the investments. We go five levels deep. What are your
sources of income? What is your medical plan? Do you
have a legacy plan? We call that advanced planning? Are
you properly hedging for risk and retirement? And what are
(23:41):
you going to do about that nasty t word called taxes?
Speaker 6 (23:45):
Reach out?
Speaker 5 (23:45):
Let's talk seven nine one five seven seven three seven
nine one five seven seven.
Speaker 1 (23:53):
Three Christy and Matt back with more of your money
matters right after this.
Speaker 9 (24:00):
Uncle 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
(24:20):
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 Pressley 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 offered through a
wealth management LLC a retchhuled investment advisor. Investing involves risk.
Always consult with the qualifying tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations.
Speaker 7 (25:01):
Interest rates are on the rise, So what does that
mean for your retirement? Find out by calling the Presley
Wealth Management team now eight six six three nine oh
twelve fifty two. That's eight six six three nine oh
well fifty two.
Speaker 1 (25:18):
Nowd you wear this today? For your money matters with
Christy Smith, the founder of Presley Wealth Management, and Matt Kennedy,
an investment advisor representative with Presley Wealth Management. I'm Mark
lla Eklighter with us. If you have any questions, We've
been talking about taxes and iras and roth iras and
four oh one k's and rough four oh one k's.
If you have any questions about any of that, because
it's not a blanket statement. Yes, you should take all
(25:40):
your money and move it into the tax free world.
Sounds good, but boy, there's some tax burdens because if
you moved from the traditional ira or four oh one
k and you transfer that or can you convert that
into the roth world, you have to pay taxes right now?
Does that make sense for you? Two two five seven
nine to one fifty seven seventy three two two five
seven fifty seven seventy three, no cost to you whatsoever
(26:03):
to chat with the team about any areas of retirement
and finance world that you've got questions or concerns about.
Seven nine to one fifty seven seventy three. You know,
this might be a good time, Christy to maybe you
and Matt kind of can explain the difference, because I
know you probably talked to somebody about wroths and they go, well,
I can't do that. I make too much money. There's
a difference between conversions and contributions.
Speaker 2 (26:26):
Oh, there's a big difference. And we do hear that
I can't save into a row often. And the thing
is is that while not everyone can make a wroth
contribution based on income limits, anyone can actually do a
wroth conversion. So a wroth conversion is simply saying I've
saved this money in a pre tax mode. It's in
(26:49):
an IRA, it's never been taxed, and what I'm going
to do is is I'm going to take some of
it every year and pay the tax, but then I'm
going to keep the money invested where it's growing tax
free indefinitely. And the reason that can be valuable is
because it can lower the amount of required minimum distributions
long term that you're being forced to take because the
(27:11):
value in the iras are lower because you've taken money
and shifted it into that no tax stage. In addition
to that, that can benefit benefit your beneficiaries long term
because they're not on a time constraint with paying taxes
on a on a wroth iray because there is no
tax burden on a roth iray when it's inherited. And uh,
(27:32):
you know, it is all about having a strategy. So
anyone can actually do a wroth conversion. Many people will
say Hey, that's like a backdoor contribution. It's simply paying
taxes on the money you've already saved in a pre
tax mode and putting it into a I'm going to
grow tax free indefinitely, So anyone can actually do that.
Speaker 1 (27:55):
And Matt, you can also save more or contribute more
to the world in the four oh on k versus
the IRA.
Speaker 5 (28:02):
Oh correct, there's a lot of confusion about that, So
I'm going to talk to those of you fifty plus okay,
because you get to save more. The rule right now
is if I qualify for and have a wroth IRA,
the maximum contribution I can make per year is seventy
five hundred dollars.
Speaker 6 (28:20):
Well, that's true for a traditional IRA two.
Speaker 5 (28:23):
Now if you have a spouse, even if your spouse
doesn't have earned income, if they're your spouse, they also
qualify for that seven thy five hundred. But the power
of the wroth IRA is that you are allowed to
save up to the four oh.
Speaker 6 (28:38):
One K maximum.
Speaker 5 (28:39):
I believe right now it's thirty one thousand, five hundred
per year. Haven't checked the number recently, so you can
save significantly more. And guess what, don't tell anybody, But
if you end up with after tax contributions. Let's say
you max your four oh one k out early and
you can't put any more on the WROTH or the regular,
but you end up with after tax money.
Speaker 6 (29:01):
Guess what.
Speaker 5 (29:02):
Under present law this is threatening to be changed, But
under present IRS code and law, you can roll the
after tax money into the wroth. That's a cool trick
that you can use. Complicated right, and it may not
be for everyone. Some of you may be in a
position where matching out your wroth would you know, crush
(29:23):
your paycheck and hurt your your your your paycheck to
the point that you couldn't do it. Others of you
are foolish to not be saving into the wroth or converting.
How do you know where you stand. We've got the
tools to show you that our number happy to help.
It's what we do seven nine one five seven seven three.
If you're outside of the Baton Rouge area, it's two
(29:44):
two five seven nine one five seven seven three.
Speaker 6 (29:50):
It's the weekend.
Speaker 5 (29:50):
Of course, you'll get the voicemail, but we'll call you
back Monday and get some information and sit down and
help you. Or you can just go to meet with
us now dot com. That's meet with usnow dot com.
Pick out a spot on the calendar and someone will
call you back at the appropriate time.
Speaker 1 (30:06):
Hey, Christy, We talked about it before on the show
plenty of times about the twenty seventeen Tax Cuts and
Jobs Act that ends on December thirty first of twenty
twenty five, twenty twenty six, we go back to the
seventeen Rates and Brackets, which raises our taxes ten to
twenty five percent. Basically, it's kind of how it depends
on where you fall into the different brackets. But Matt
(30:27):
was talking about the stretch ira going away, and you
really could be leaving a burden for your kids. They
inherit your money and now they have ten years to
pay the taxes on all that money. They could call
you cause us some issues. Is this where maybe life
insurance comes in as a possibility of a tool to
use for this retirement saving stuff.
Speaker 2 (30:46):
Well, it absolutely can become a tool. The reality is
is most people think of life insurance as a depth
benefit only, and in that situation you would be using it.
Speaker 4 (30:55):
As a depth benefit.
Speaker 2 (30:57):
But for many of our clients, we will use a
form of life insurance as a tool to say, for
tax free income long term and provide a tax free
death benefit. So when you think of the word life insurance,
you really can't think of death benefit only because that's
typically what we think of in terms of life insurance. Now,
(31:19):
also in addition to you know, help with a state
planning and tax free income, we also see where life
insurance contracts can be become a valuable tool in long
term care planning. You know, we all understand that we
could need medical care, you know, at some point in
our life that's not going to be covered by traditional
(31:40):
health insurance or even medicare, and who's going to pay
for that? Well, typically we don't want to burden our
families with that expense. But a lot of times I
hear I don't know about you, Matt, but I hear
that you know, I don't want to pay a premium
for a long term care insurance contract that I may
or may not use because because I've, yeah, I pay
so many other insurance now, I don't think I can
(32:01):
afford that. So we often will even look at long
term care being covered under a life insurance contract as well. Therefore,
the death benefit goes to a family member or members
if it's not used, but if it is needed, then
we have the benefit of it. And so I think
that's it's kind of like we have to start thinking
about things differently and the tools that are available to us.
(32:23):
It's one of the things that we really like to
do at Presley Wealth Management is evaluate the individual situation
and look and see, Okay, these are the tools that
we have available to fix these problems. You know, Mark,
one of the things that we hear often way more
now than I did twenty years ago, is I really
don't care about the kids. You know, if the kids
(32:43):
have to pay a tax burden on this money, so
be it. I've paid for their education, I've you know,
paid for my grandkids education. You know, we want to
spend our money. So I would say legacy isn't as important.
In my opinion, it should be. But I think life
insurance can be used as a living benefit even more
than just as a depth benefit.
Speaker 1 (33:04):
Now, yeah, and that's interesting, and that's certainly if you'd
like to learn more about that. Well, how does that
fit into our situation? Seven nine to one fifty seven
seventy three, seven nine to one fifty seven seventy three. Matt,
you're Christie, do do either one of you have any
final tax planning tips For people with large IRA four
A one K balances, that's kind of who this tax
(33:24):
change could really affect, I would imagine.
Speaker 5 (33:27):
So it's kind of like that home repair project that
you keep putting off.
Speaker 6 (33:32):
Christy, we have these.
Speaker 5 (33:33):
Our house is about fourteen years old, and at fourteen
years old, for some reason, stuff starts breaking.
Speaker 6 (33:38):
Houses must be like dogs.
Speaker 5 (33:40):
They must age in dog years because it like twelve
thirteen years old, everything wants to start breaking. So we
have these gas lanterns out front, and for the last
couple of years they've looked terrible. One of them actually
eroded to the point I had to take it off,
and so I kept.
Speaker 6 (33:55):
Putting it off and putting it off and putting it off.
Speaker 5 (33:57):
So finally we broke down not too long ago and
went out spent the money got them. Now I have
to find someone to install them, but I know when
it's done it'll look great. My point is we can
sit here and talk about the math of it, the
numbers of it, but if you don't take the first
step to find out what you should do, you will
end up with a crushing tax burden and you will
(34:19):
wish right, Christy, that you had actually taken the first step.
I just encourage you to take the first step. Talk
about it, whether or not we help you do it now,
whether we help you do it later, whether we just
inspire you to do.
Speaker 6 (34:31):
It, take the first step.
Speaker 2 (34:33):
We call it go five levels deep, and that means
we really want to look at you know where you are,
what are going to be your sources of income. We're
going to look at your investment planning, your tax planning,
your medical planning, and your legacy planning. We want to
go five levels deep and you know and serve you,
and we'd love to do that. It just starts off
(34:53):
with a quick phone call. Give us a call it
two two five seven nine one five seven seven three
U five seven nine one five seven seven three are
are going to meet with usnow dot com and schedule
a quick call.
Speaker 1 (35:07):
So we're headed to our final segment of today is
Your Money Matters with Christy Smith and Matt Kennedy of
Presley Wealth Management.
Speaker 6 (35:13):
Stay with us.
Speaker 1 (35:14):
We're back right after this.
Speaker 7 (35:17):
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 5 (35:36):
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 8 (35:43):
All?
Speaker 6 (35:43):
Will the government take a bigger chunk than you thought? Remember,
you still may.
Speaker 5 (35:47):
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 6 (36:00):
It's your money. You deserve to know what's at stake
Right now.
Speaker 5 (36:03):
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. Presley Wealth Management seven ninet
one five seven seven three.
Speaker 7 (36:21):
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.
Speaker 4 (36:38):
You're listening to.
Speaker 7 (36:39):
Your Money Matters with Christy Smith and Matt Kennedy to
set up your fifteen minute meeting with the Presley Wealth
Management team called eight sixty six three nine ZHO twelve
fifty two.
Speaker 1 (36:52):
Welcome back to your Money Matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. I'm Mark Kelliott. If
you'd like to chat with them. You've got questions. Boy,
I wonder if I could return. Do I have enough? Well,
my love, what's be okay? If something happens to me,
just go to meet with usnow dot com. Set up
your own fifteen to twenty minute conversation with the team
then to see if you need to maybe come in
and sit down and actually have a full blown smart
plan built for you. So, Christy, I'll start with you.
(37:15):
And this is something that I know is near and
dear to your heart. That would be taxes. Christy, how
do I figure out how much I'll have to pay
in taxes in retirement? Oh? It's easy. It's going to
be less, that's right.
Speaker 6 (37:27):
Guess more.
Speaker 2 (37:28):
Well, I think one of the things that you need
to do is is you need to look at what
are your sources of income going to be. You know,
when we determine how much you want to live on monthly,
how are you going to fund that? Because are you
going to be taking that from Social Security benefits alone,
are you going to be receiving a pension payment, or
are you going to be supplementing those sources of income
with money from pre tax buckets. Maybe you've saved some
(37:51):
in after tax money. So I think the first way
of understanding you know, what am I going to pay
in terms of taxes in retirement, idly it is going
to be where are your income sources coming from and
how are they taxed?
Speaker 4 (38:05):
That's number one.
Speaker 2 (38:06):
But I think it's very important that we be proactive
in looking at, you know, what type of taxes are
we going to be paying in the future, because we
know that as it stands today, we will be paying
taxes at a higher rate beginning January one, twenty twenty six.
So I think we start off with the base scenario,
how are we going to be taxed right now based
(38:27):
on our true need and sources of income, But then
we start looking at how will we be taxed in
the future at a higher tax rate? Or you know,
how will we be taxed when we're forced to take
money from pre tax accounts that maybe we didn't actually need,
you know, so it's looking in advance.
Speaker 1 (38:43):
Yeah, so things might change. We did at r MD age.
Required minimum distribution age right now is seventy three. I'm
sixty four. My RMD age will be seventy five because
in twenty thirty three it bounces to seventy five. So
what are you going to do? Your taxes will change
when you get to that point.
Speaker 6 (38:58):
Matt.
Speaker 1 (38:58):
Here's a question for you. What do I do with
my four to oh one K after I retire? And
I imagine if you retire early, younger than say fifty
nine and a half, it's a different answer than if
you retire after that age.
Speaker 5 (39:12):
So you actually have two options. Well three number one,
you can leave it in the four oh one K.
Some people do that.
Speaker 6 (39:17):
You can do that.
Speaker 5 (39:18):
The problem is you typically end up paying a good
bit more because when you're in a four oh one K,
your employee, your employee or sorry, they pick up a
lot of the cost of the funds and things. But
once you leave the full burdens on you, and it
can be more expensive than you might imagine. Also, you
have very limited investments, right, I mean typically you're only
(39:38):
gonna have mutual funds, Whereas if you move the money
into an individual retirement account, you don't pay taxes because
we roll the money. It's called a trustee to trustee transfer.
If your four oh one K is with Empower or
Fidelity or Vanguard, it moves into.
Speaker 6 (39:56):
A with us.
Speaker 5 (39:57):
It's Charles schwab Ira. Well that's a try answer. So
what's the advantage. Well, we have more investment choices, we
have the ability to much better manage risk, so you
can roll it, you can leave it. Those those are
two options. I guess option three would be you could
just go cash the whole darn thing out and pay taxes.
But most people don't do that, do they, Christy.
Speaker 2 (40:17):
So one of the questions we get often is, you know,
if we want to retire before age fifty nine and
a half, or are we going to pay that added
ten percent tax penalty if we're using pre tax money
to live on the answer is, it depends on how
you do it. And so typically, because we're seeing more
and more people come in that are wanting to retire
(40:41):
before age fifty nine and a half, believe it or not,
We're seeing a lot more people in that situation. So
a lot of times what we're able to do is
we're able to say, okay, look, you're able to draw
income from your four to oh one K company if
you leave money in that plan and you're not going
to pay the added ten percent penalty because there's a
(41:01):
special ruling that says if you retire at fifty five
or or older, but before fifty nine and a half,
if you draw income directly from the four oh one K,
the IRS will not assess that ten percent penalty to you.
Speaker 5 (41:14):
I want to stress that again. So if you leave
a job at fifty and you start a new job
and retire at fifty six, you can't draw from the
four oh one K that you left at age fifty.
But if you're working I'll use Turner Industries as an example.
You're working there, you turn fifty five, and your four
oh one K is at Turner. When you turn fifty
(41:36):
five and you retire, say at fifty five fifty five
and a half, you can set up withdrawals from the
four to oh one K without the ten percent penalty.
But what if you have a million bucks there well,
we look and say how much do you need a year?
We might move some of the money into an IRA
to hedge the risk, work on tax planning, create lifetime
income for when you are fifty nine and a half.
Speaker 6 (41:58):
That'd be careful.
Speaker 5 (41:59):
When you move the money to an IRA, fifty nine
and a half comes into play. But we leave enough
money in the four oh one K that you have
income or if you have an emergency you can draw
from it. It's all about having a strategy. It's your
now money and your later money.
Speaker 2 (42:14):
And there are some companies that won't allow you if
you if you retire from a company at you know,
fifty six years old and you need to draw income
from the four oh one K, they won't allow you to.
Speaker 4 (42:27):
Move any of it out.
Speaker 2 (42:29):
So it's a matter of learning the facts, and I
think knowledge is powerful.
Speaker 1 (42:35):
So again, meet with usnow dot com to learn about
your situation. Meet with us now dot com or you
can always call the team at seven nine to one
fifty seven seventy three. All right, here's just some fun questions.
Wrap up today's show, Christy your Biggest Industry Frustration. Then
matt yours Christy, go go ahead, Biggest Industry frustrating.
Speaker 2 (42:53):
Oh my gosh, you're putting me on the spot there.
Oh wow, this is big in our industry, in our
because it depends on how you look at this question.
Let's just put it in a client's perspective, okay, because
that's taken regulatory out of the mix. Let's say in
the biggest frustration is that people they fear getting advice
(43:15):
because they fear they're going to be sold something. And
often they put off getting advice where they if they
came and got advice at it at an earlier age,
they could have made changes inside of their plans while
they're still working. That would have made a big difference
in retirement.
Speaker 6 (43:29):
For me, it's the same thing.
Speaker 5 (43:30):
It's the belief that we're all sales clowns, and there
are lots of sales clowns out there who don't do
the right thing, and then there are people who actually
care and do the right thing. And it sounds like
I'm bragging, but that's us.
Speaker 6 (43:44):
That's what we do. I mean, I don't chase people around.
Speaker 5 (43:47):
Christy doesn't sell you know, rainbow vacuums and cut co knives,
although I own those and love them. We're not going
to chase you down. Here are the facts, here's what
we can help you do. Do you need our help?
Speaker 6 (43:55):
Boom?
Speaker 1 (43:57):
Okay?
Speaker 6 (43:57):
First job, first job, First job, I worked at the
Western Auto in Erwinville, sweeping the parking lot and stock
in the shelves.
Speaker 2 (44:06):
My first job was at Blinking Ship Drugs in Baker
and I worked in the pharmacy as a cashier.
Speaker 1 (44:14):
All right, all right, favorite sports team?
Speaker 6 (44:17):
What it's easy for the Saints.
Speaker 5 (44:18):
I'm an NFL fan, So the Saints are number one.
LSU football or any LSU sports right there.
Speaker 2 (44:24):
At number two, I was going to say LSU is
my favorite team. My favorite sport I would have to
say is football.
Speaker 1 (44:31):
Let's hope the women's team doesn't fight with that. How
was ugly? Yeah? How many pets do you have? Final minute?
Speaker 4 (44:38):
Oh my god. You got to ask matthis first so
I can count all my I'm going.
Speaker 5 (44:41):
To count your horses. We have, well, we have two.
We have mea the border colleague, who's ten, and we
also have a little Yorkie who runs the house. Her
name is Penny and she's five, and she's just so bad.
Speaker 2 (44:54):
I have to say over ten. And that's because we
have two dogs. My favorite dog is mill a low Corgi,
and so we have chew dogs, we have a cat,
and then we have a lot of horses. My favorite
horse is Jerry. Jerry's the favorite Jerry Maguire partial to Jerry.
Speaker 1 (45:12):
All right, all right, that'll wrap that up. Why don't
you go ahead and remind people how to get ahold
of you have any questions about where they are on
their road to retirement.
Speaker 5 (45:19):
Two ways www dot meetwith usnow dot com. You can
set up a fifteen minute phone call just to talk,
so that's meetwith usnow dot com. Or leave us a
voicemail and we'll grab it on Monday and reach back
out to you during the week. We're at seven nine
one five seven seven three. That's seven nine one five
seven seven three. God bless, I have a great weekend.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and order legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC, AEWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice that offers products and
services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the 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 radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with or endorsed by the
US government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 4 (46:58):
This radio show is a paid placement
When the news is national.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, Rock Dane,
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana Local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire, Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 2 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement and that's where I believe it's
so important that.
Speaker 4 (00:26):
You do have a full pledge retirement plan.
Speaker 5 (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 6 (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 of
Christy Smith and Matt Kennedy. Matt, of course an investment
advice representing, been with the team since two thousand and eight.
Christy started Presley Wealth Management back in two thousand and six.
Christy will join us in the next segment. Matt's going
to kick off the show today for if you have
any questions, do you want to sit down with the team.
Anything that Matt talks about this first half or Christy
(01:11):
talks about later on. It's the number is two two
five seven nine to one fifty seven seventy three, no cost,
no obligation to chat with them, two two five seven
nine to one fifty seven seventy three. But the easier
is just meet with us now dot com. Set up
your own time to chat with them. Meet with us
now dot com. We talk retirement here and here's our
topic to kick the show off. Mat. I think it's
(01:31):
kind of interesting because you know, if you're a parent,
you know firsthand that we want better for our children
in life than we want for ourselves. I think that's
that's kind of typical. I want them to become more confident,
more stable, more prepared. But here's the question we're posing
to you today, not just Matt, but to you listening.
Do you feel like that you are as compared to
(01:54):
your parents? How do you feel about your financial position?
Are you in a better position than your parents were
when it came to retirement. Matt, there's a poll, there's
always a pole, there's always a study, and this one
is about how younger Americans see their retirement really in
a way compared to their parents' retirement.
Speaker 5 (02:11):
Right, Yes, I love this survey from CNBC's August twenty
twenty four Your Money Retirement Survey. Eighty two percent of
you who are still working say that achieving a comfortable
retirement is much harder, are somewhat harder than it was
for your parents' generation. Show of hands, how many of
(02:33):
you believe that, if you're driving, keep both hands on
the wheel. Eighty two percent of you say achieving a
comfortable retirement much harder, somewhat harder than it was for
the parents' generation. That kind of caught me by surprise,
And then I started thinking about the why, Mark, And
I've got some theories, and I know you do too.
Speaker 1 (02:49):
Yeah, And I think that's because I talk about this
a lot. Because my grandparents retired in the seventies and
they had pinchers. My parents retired, shoot, I guess they
would have probably been in the nineties, but they retire
with pensions, right, My grandparents they had jobs with pensions.
My parents, my dad was a university coach, so they
had a pension. My mom did not. She worked at
(03:09):
a bank, they didn't she didn't have a pension. So
I think income was what my grandparents for sure, and
my dad what they had over they have over me.
They had income where they weren't worried about their income.
Speaker 6 (03:22):
But but really, let's think about this, okay.
Speaker 5 (03:24):
So my dad was a little bit of a different
situation because he was a pastor of a church. And
you know, he wasn't exactly flying a helicopter around South Louis.
He was the pastor of a church. Dad had a church.
He also worked as a welder, and so we were
just a solid middle class family. But Dad had to
technically have two jobs to do it. But I think
(03:44):
back to like my grandparents and things, you know. So
to me, the biggest difference that some of you were
saying it's harder to achieve a comfortable retirement is because
on average, for most Americans, our parents. I'm fifty eight, right,
so my parents are technical the silent generation. But if
you're listening and you're younger and your parents are boomers,
we'll use that for the example. Many of them, guess
(04:07):
what they had, like you said, pensions, So they may
not have had as much saved up, but they had
a guaranteed source of income in addition to social security.
Most had pensions well through the years, Especially starting around
the mid eighties early nineties, pensions begin to fade away
and fewer and fewer companies offered pensions.
Speaker 6 (04:27):
Some pulled the pensions away.
Speaker 5 (04:29):
And they shifted the burden away from the place where
you worked, and the burden became your burden to save
into the four h one k et cetera, et cetera.
That's part of it. And also, look, let's face it,
we are a much more materialistic generation than our parents.
You know, it's expensive to buy an iPhone every two years.
(04:49):
My parents had one car, We had a family car.
Right now everybody in the family typically has a car.
Housing prices have exploded, even comparatively speaking, the same house
today is a lot more expensive than it was back
whenever our parents were raising us. But also, Mark, we
(05:10):
also live in a lot bigger houses, right, I mean,
we live in a much larger house typically than what
our parents had. But well, I can give you an example,
I can give you a person has shifted. Yeah, okay,
give me an example.
Speaker 1 (05:21):
For example, my parents moved into this house that I
grew up in when I was in second grade. Okay,
so what am I second grade seven? Maybe? Anyway, I'm
sixty five basically now, Okay, So I looked at that
so I'd have been in the seventies early seventies, right,
So I looked at that house in two thousand, my
parents had bought it for seventeen thousand, five hundred dollars.
(05:42):
It was for sale for one hundred grand. I'm like, wait,
my parents only paid seventeen thousand for this, you're a
little high twenty five for right.
Speaker 5 (05:50):
Now, Hey, if your parents lived in california'd be worth
a lot more.
Speaker 1 (05:53):
Right, Yeah, exactly.
Speaker 5 (05:54):
But the study lists all kinds of interesting data, such
as millennials carry on media non mortgage debt of thirty thousand,
five hundred and fifty eight dollars, so take away the house.
Millennials tend to live more comfortably with debt. I remember
my parents just preaching debt.
Speaker 6 (06:13):
Debt is evil.
Speaker 5 (06:13):
I hate debt, right, so we're more comfortable with debt,
we live larger.
Speaker 6 (06:18):
But I think about my parents.
Speaker 5 (06:20):
My parents were, you know, typical middle class working family.
But my parents were always pinching a penny today to
help us tomorrow, right, save it for us down the road.
We want to lead this to you. The mind shift
among boomers', younger boomers especially has been I want to
spend money on experiences with my children. When I sit
(06:43):
down with couples who are maybe in their early sixties
preparing to retire or just recently retired, you know what
they often talk about, Mark, Hey, we're taking the kids
and all the grandkids and we're going to Disney, or
we're going to the mountains and maul and par treating.
But they're thinking, and I can't disagree. I feel the
same saying, wait, I would rather build an experience now
(07:03):
than to say.
Speaker 6 (07:04):
Well, I left you four hundred thousand dollars when I died,
So that's part of it.
Speaker 1 (07:08):
So I think that's pretty cool too. That opportunity is Yeah.
And if you want to sit down with Matt and
the team at at Presley Wealth Management and talk about
your plans for retirement and legacy planning all that, how
do you want to leave things? That's meet with usnow
dot com. Meet with us now dot com. You can
always call them as well. Meet with us now dot
com to me is easier to remember though than two
two five, seven ninety one fifty seven seventy three The
(07:28):
other part of this survey or poll is also the
fact that people are living now five ten years longer
than our predecessors, So that's also longevity as a factor
in this.
Speaker 6 (07:38):
Absolutely. Here are the stats. I love the stats.
Speaker 5 (07:41):
If you were born in nineteen fifty, the average life expectancy,
average life expectancy for a man in nineteen fifty was
sixty five and a half years. Mark, I am fifty
eight and a half. You were how old?
Speaker 1 (07:55):
Mark sixty five?
Speaker 6 (07:56):
Basically, oh, you're almost done, dude, you only have a
half a year left. Party on.
Speaker 5 (08:01):
But if you were born in nineteen fifty, your life
expectancy was sixty five and a half for a man,
seventy one for a woman. Today, if you were born
in nineteen ninety one, millennial, right, the average life expectancy
is seventy two years for a man, seventy nine years.
Speaker 6 (08:18):
For a woman.
Speaker 5 (08:19):
Guess what, If you're gonna live six, eight, nine, ten
years longer, then that means you're gonna have to have
more money. And if you pile the debt on top
of the money that you have saved, then you've got
to spend longer. Right, It's not uncommon for us to
see people with a pretty large mortgage while they're in
retirement in their mid sixties, which brings up the big question,
(08:41):
do I pay off the house? Et cetera, et cetera. Listen,
those are all questions we can tackle. I think the
most important thing that you can work towards if you
feel like you're behind on savings is how can you
save more? Can you eradicate debt before retirement, and can
you save in a way that you will not be
(09:01):
paying so much in taxes when you retire. I think
that is our generation's clarion call. If you're in your
forties fifties and planning for retirement, if you're still saving
like our parents, save your traditional four oh one k
traditional ira. Back then, the old rule was well, you'll
(09:21):
always be in a lower tax bracket when you retire,
and that pretty much held true. I do not believe
that's going to hold true going forth. So if you
are planning to retire within the next five years, and
you still have at least five years, you've got time
to really aggressively tackle debt, and aggressively tackle one of
(09:42):
your biggest debts that you don't think about. That's your
debt to the government, because an ir A is an
io you to the irs. You may have a million
bucks in your four oh one K, which is like
an IRA, but do you realize that forty percent of
that long term is probably going to end up in
the hands of the government at some point, federal, state,
(10:03):
et cetera. So let's talk about strategies at our sit
down meeting that help you not only manage risk when
you're retired, but let's talk about the big t taxes
in such a way that we can eliminate a large
amount of your taxation when you're in retirement. Because if
you have tax free money raw off, et cetera, and
(10:23):
you take a dollar out, that dollars years to spend.
But if it's regular IRA, regular four oh one K,
taxes rise in the future, you may only have sixty
five cents of that.
Speaker 6 (10:33):
Dollar to spend.
Speaker 5 (10:34):
That alone can cause you to have a retirement shortfall.
So if you'd like to talk about this and how
we can help you with a retirement money map and
a plan to really tackle debt, savings and taxes. Even
if you feel like you're behind on saving, it's never
too late to plan. Where it's seven nine to one
five seven seven three. That's seven nine one fifty seven
(10:57):
seventy three. If you call, you'll get the machine. We'll
call you back on Monday. Casey from the office of
calling you back and set up a time for us
to chat. Or like Mark said, just go to meet
with usnow dot com. Meet with usnow dot com. We
carve out fifteen or twenty minutes to chat on the
phone kind of see where you stand as far as
retirement planning, what your biggest pressing concerns are. Then we
(11:18):
sit down face to face, no cost, no obligation, and
build a plan for you. That's seven nine one five
seven seven three. Or meet with usnow dot com.
Speaker 1 (11:27):
Hey, did you see this? Matt? This will wrap this
segment up and Christy will join us when we come
back on your money matters. Hershey is turning its candy
into energy drinks and protein powders with C four So
the Hershey Company, which we all think of right Hershey's
Chocolate Bars in struck a deal with C four Energy,
a top selling supplement brand that has gained popularity as
people have looked to build muscle and work out more
(11:48):
following the pandemic. Hershey's Namesake Milk chocolate and Reese's peanut
butter and chocolate will soon be sold as protein powders,
and It's Jolly Rancher candies will be turned into bubbly energy.
I'm going to six makes a drinker then Hershey, yeah,
Reese's are right in my wheelhouse. This is incredible.
Speaker 6 (12:06):
I love it.
Speaker 5 (12:07):
They're making something quote unquote bad for you, good for you,
good stuff exactly.
Speaker 6 (12:11):
I'm going to the store right now, mark you back later.
Speaker 1 (12:13):
All right, well, Christy, you got to be back here
in one minute. We have more dor money matters right
after this.
Speaker 7 (12:21):
Be smart when it comes to your retirement. Presley Wealth
Management has a smart plan to help you better understand
the process. Set up your no consultation appointment to get
your smart planning in place called eight sixty six three
nine oh twelve fifty two. That's eight six six three
nine oat twelve fifty two.
Speaker 8 (12:42):
It's nice when you can get everything on your list
in one place, isn't it? Christy Smith? That the Presley
Group agrees. That's why she offers comprehensive retirement planning all
under one roof. You shouldn't have to go to one
place for information about tax planning, another for estate planning,
and another for retirement income planning. That's why the Presley
(13:02):
Group was started. Christy Smith wanted to build a company
that could help families with all aspects of their retirement.
The Presleague Group is more than just convenient, their knowledgeable
and experienced. To set up a meeting with Christy Smith
and her team to talk about your retirement plan, all
of it, call eight six six three nine.
Speaker 1 (13:22):
Zero twelve fifty two.
Speaker 8 (13:24):
That's eight six six three nine zero one two five two.
The Presley Group one stop for a wealth of retirement
solutions eight sixty six three nine zero twelve fifty two.
And investment advisory service is offered through EIGHTE Wealth Management LLC,
a registered investment advisor.
Speaker 7 (13:44):
You're listening to your money Matters with Christy Smith and
Matt Kennedy. To set up your fifteen minute meeting with
the Presley Wealth Management team, call eight six six three
nine zero twelve fifty two.
Speaker 1 (13:58):
Welcome back to your money Matters with Christy Smith and
Met Kennedy of Presley Wealth Management. I'm Mark Llay, glad
you're with us today. We're talking retirement obviously, that's what
Christy and Matt and the team are all about helping
you create your smart program.
Speaker 6 (14:09):
If you have any.
Speaker 1 (14:10):
Questions, it's two two, five seven nine to one fifty
seven seventy three. There is no constant chat with the team.
He got some questions or concerns, reach out. All right,
you guys are too young. But Dwight David Eisenhower General
World War two? Do you realize he is the only
president from the state of Kansas. I don't know if
you knew that. I did know that I grew up
in Kansas. Okay, So here you go. Here's what Dwight
(14:32):
David Eisenhower says. And the reason I bring this up
because I think this is kind of fun. Eisenhower passed
away in like March of nineteen sixty nine. I was
nine years old. We lived right across, probably seventy five
yards from our front door were the railroad tracks. So
Eisenhower passes away, and they gave you everybody who was
on the train track path for him going to Abilene, Kansas.
(14:55):
They said, here's about the time he would come through. Really,
So my mom and dad get my sister and I
up at three in the morning to walk across the
street and we watched the train roll by the railroad tracks,
and of course you have the flag draped railroad car
where Eisenhower is, and they took them to the eventually
ends up being the Eisenhower Museum in Abilene. But I
thought that was kind of cool. I still remember that cool. Yeah,
(15:16):
it was nineteen sixty nine. But here's what Eisenhower said.
So Christy and Matt, you both can give me your
take on this, because I think it's interesting. Eisenower says,
in preparing for battle, I have always found that plans
are useless, but planning is indispensable. What do you think
to me, It's that, Okay, things are going to change.
Speaker 6 (15:35):
We got it.
Speaker 1 (15:35):
We go into the battle with a strategy, and the things.
Speaker 6 (15:37):
You're in the battle you have to adapt. That's a
great point. Read that one more time.
Speaker 1 (15:42):
So in preparing for battle, I've always found that plans
are useless, but planning is indispensable. Well, that's power, that's
kind of your start power, that's kind of your smart plan.
I mean, you're gonna put it down, but it's not
written in stone because lives change, life happens.
Speaker 4 (15:56):
Yeah, right, well, and I think that's too.
Speaker 2 (15:58):
Part of having a tree plan is not only creating
the plan, having an understanding of what is retirement going
to look like, but as things change, being able to
adapt and work that plan. You know, it's kind of
like we we decide we want a certain career in
high school, and let's say, you know, we're going to college.
Speaker 4 (16:20):
We just we set a degree, we work towards that.
Speaker 2 (16:23):
Then we all of a sudden decide we don't want
to be a doctor, we want to be a in marketing,
So we have to adjust our plan. And I think
that's what it's. It really boils down to us understanding
that while many of you already have a plan or
may think you have a plan, have you looked at
it recently and have you have you, you know, determined
(16:46):
do you need to make changes? Because a well thought
out plan is probably going to make adjustments on an
annual basis based on your needs, because your life is
going to change.
Speaker 1 (16:57):
You know, when you think about the retirement world today, Christy,
you and Matt, when you guys sit down with people,
most of their money is sitting in four one ks
and iras for tax dollars, yeah, work dollars.
Speaker 6 (17:07):
In words.
Speaker 1 (17:08):
It used to be that the largest I think asset
that people had in my grandparents' time would have been
their home, but now it's in iras and four to
one ks, those tax deferred tools. Well, the Secure Act
of twenty nineteen did away with the stretch IRA, the
two point zero which happens Secure Act two point zero
and twenty twenty two. They've changed a lot of retire
for things. Requirement of distribution's gone from seventy and a
(17:29):
half to seventy two, then from seventy two to seventy three,
that happened in twenty twenty two, and then in twenty
thirty three that rmd AG is going to be seventy five.
So they keep moving the target line for you, which
you think is good, but that actually lets your tax
problem get just grow a little bit. Yeah, the stretch
IRA is a big deal at that one away that
probably did adjust some of your smart programs, I would imagine.
Speaker 5 (17:51):
So let's talk about that because you let's unpack that.
As my dad used to say from the pool. Butit
so once upon a time, if you saved into a
four to one k I or in other words, pre
tax dollars, you were saving pre tax because you were
always told look you'll always be in a lower tax
bracket when you retire. So if you put twenty thousand
dollars in your four h one K this year, you
(18:13):
get to take a deduction on that twenty thousand dollars. Now,
if that twenty thousand becomes sixty thousand by the time
you retire, when you get ready to pull that money
out and live on it, you've got to pay taxes
on every dime you withdraw, but you'll always be in
a lower tax bracket.
Speaker 6 (18:30):
Well, I can tell you, folks, We've.
Speaker 5 (18:31):
Done this a long time, and there are plenty of
people who aren't necessarily in a lower tax bracket through
their entire retirement. We see people who are in a
lower bracket when they first retire. But if you're sixty
six sixty seven and you retire, your taxes will probably
go down. However, by the time you get to the
(18:51):
age you are required to withdraw money from your taxable buckets.
That's called your required minimum district. Christy, how many times
in our retirement money map do we see a couple
that ends up by the time they're in their mid
to late seventies paying more in projected taxes than they
were when they were working.
Speaker 2 (19:12):
Well, it's not uncommon. We actually see it pretty often.
And I think that's where we have to start thinking
about things differently. Even if you're listening this morning and
you're young and you're working and saving in your four
oh one k, maybe you ought to consider saving more
into a wrath inside of your four oh one k
instead of all pretexts. Just recently, I was having a
(19:32):
conversation with my son in law and he's always been
a discipline saver in terms of retirement savings. And we
were talking and he said, Miss Christy, like, if there's
anything that I need to be doing specifically, will you
let me know besides saving? And I said, well, are
you saving in pre tax money or how are you
saving in your four one k? And he goes, no,
(19:53):
I'm paying all the taxes now. And I looked at
him and I was like, man, you just made me.
He just made me so proud of you, because not
many people his age, I mean, he's not even forty
years old yet understand the relevance in that, because think
about it, when you're retired and you're needing to generate income,
you can actually pull less out of your retirement accounts
(20:14):
if you're not having to pay the taxes.
Speaker 5 (20:16):
Right, So a quick example, let's say you need three
thousand dollars a month extra to live on. If that
money is in an IRA or a four to oh
one K, you're going to need to pull out, eh,
probably about sixteen seventeen percent more than three thousand. Come on, christy,
quick math, maybe thirty five hundred and fifty dollars to
(20:36):
get three thousand. But if it's a WROTH, you need three,
you take three. That means your money lasts longer. So
that's a and again, we can help you determine should
you be saving tax free in a WROTH environment or
should you be saving pretax. Don't just rush out and
suddenly sign up for your wroth because it will impact
your take home pay, all right, we can help you
(20:58):
determine that.
Speaker 6 (20:58):
Yeah.
Speaker 2 (20:59):
For example, if you're if you need three thousand dollars
a month net, and let's say your your average tax
rate is fifteen percent. I know we don't have a
fifteen percent tax bracket right now, but many are hitting
the twenty two percent tax bracket. And so I always
like look at the effective tax rate. So let's say
you're in an effective tax rate of fifteen percent and
(21:19):
then five percent state. Now you're having to withdraw three thousand,
seven hundred and fifty dollars a month, So that added
seven hundred and fifty dollars a month every single month.
Speaker 6 (21:28):
Erode your account faster, Yes.
Speaker 4 (21:30):
Because you're just giving that away to taxes.
Speaker 2 (21:32):
So just creating a plan, working the plan, and understanding
that as as the name of the game changes. Because
we can't always predict what the rules and you know,
consequences are going to be in the future, we can
expect you know, okay, they're going to be changes, and
so a properly designed plan is going to reevaluate on
(21:52):
an annual basis, so we can determine do we need
to make changes. Again, it's all about having a plan.
We'd love to help you. If you have a current plan,
we'd love to give you a second opinion. If you
don't have a written plan, we would encourage you to
give us a call. It's it's really that simple making
a phone call two two five seven nine one five
seven seven three two two five seven nine one five
(22:15):
seven seven three, or just go online and go to
meet with us now dot com and schedule a fifteen
minute call.
Speaker 1 (22:22):
So before we wrap this segment up, we'll come back
talk more about the IRA planning that certainly you guys
do with your clients oppresslely wealth management. But you always
say that, okay, this if you're going to transfer, if
you're gonna take from IRA money or four O one
K money and then turn it into the wroth world,
you're gonna have to pay taxes at that time. But
you always say, boy, it'd be great to have money
(22:44):
in tax free, but not everybody should do it. How
do you determine? Boy, it makes sense, doesn't make sense.
You should do the wroth war oh one k work.
You shouldn't do the wroth war one K work. I
would think that's a lot of you got to sit
down with people to make those decisions. I would imagine
you do.
Speaker 6 (22:58):
And it involves computer software.
Speaker 5 (23:00):
And again that's why I said, don't just rush out
and do it, because there are short term and medium
term implications. I mean, I don't mind telling you I
save into my four oh one k here at work.
I save as a rath and it kills me on
taxes because I'm paying taxes on the money that goes
in which means my take home pay.
Speaker 6 (23:19):
I'm sure Christy does the same thing.
Speaker 5 (23:20):
My take home pay is less because I'm paying the
piper now, but that's my decision. But how much less
is something we can help show you. It's not just
the investments. We go five levels deep. What are your
sources of income? What is your medical plan? Do you
have a legacy plan? We call that advanced planning? Are
you properly hedging for risk and retirement? And what are
(23:41):
you going to do about that nasty t word called taxes?
Speaker 6 (23:45):
Reach out?
Speaker 5 (23:45):
Let's talk seven nine one five seven seven three seven
nine one five seven seven.
Speaker 1 (23:53):
Three Christy and Matt back with more of your money
matters right after this.
Speaker 9 (24:00):
Uncle 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
(24:20):
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 Pressley 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 offered through a
wealth management LLC a retchhuled investment advisor. Investing involves risk.
Always consult with the qualifying tax advisor before making any
decisions regarding a ROTH conversion, as there may be additional
tax considerations.
Speaker 7 (25:01):
Interest rates are on the rise, So what does that
mean for your retirement? Find out by calling the Presley
Wealth Management team now eight six six three nine oh
twelve fifty two. That's eight six six three nine oh
well fifty two.
Speaker 1 (25:18):
Nowd you wear this today? For your money matters with
Christy Smith, the founder of Presley Wealth Management, and Matt Kennedy,
an investment advisor representative with Presley Wealth Management. I'm Mark
lla Eklighter with us. If you have any questions, We've
been talking about taxes and iras and roth iras and
four oh one k's and rough four oh one k's.
If you have any questions about any of that, because
it's not a blanket statement. Yes, you should take all
(25:40):
your money and move it into the tax free world.
Sounds good, but boy, there's some tax burdens because if
you moved from the traditional ira or four oh one
k and you transfer that or can you convert that
into the roth world, you have to pay taxes right now?
Does that make sense for you? Two two five seven
nine to one fifty seven seventy three two two five
seven fifty seven seventy three, no cost to you whatsoever
(26:03):
to chat with the team about any areas of retirement
and finance world that you've got questions or concerns about.
Seven nine to one fifty seven seventy three. You know,
this might be a good time, Christy to maybe you
and Matt kind of can explain the difference, because I
know you probably talked to somebody about wroths and they go, well,
I can't do that. I make too much money. There's
a difference between conversions and contributions.
Speaker 2 (26:26):
Oh, there's a big difference. And we do hear that
I can't save into a row often. And the thing
is is that while not everyone can make a wroth
contribution based on income limits, anyone can actually do a
wroth conversion. So a wroth conversion is simply saying I've
saved this money in a pre tax mode. It's in
(26:49):
an IRA, it's never been taxed, and what I'm going
to do is is I'm going to take some of
it every year and pay the tax, but then I'm
going to keep the money invested where it's growing tax
free indefinitely. And the reason that can be valuable is
because it can lower the amount of required minimum distributions
long term that you're being forced to take because the
(27:11):
value in the iras are lower because you've taken money
and shifted it into that no tax stage. In addition
to that, that can benefit benefit your beneficiaries long term
because they're not on a time constraint with paying taxes
on a on a wroth iray because there is no
tax burden on a roth iray when it's inherited. And uh,
(27:32):
you know, it is all about having a strategy. So
anyone can actually do a wroth conversion. Many people will
say Hey, that's like a backdoor contribution. It's simply paying
taxes on the money you've already saved in a pre
tax mode and putting it into a I'm going to
grow tax free indefinitely, So anyone can actually do that.
Speaker 1 (27:55):
And Matt, you can also save more or contribute more
to the world in the four oh on k versus
the IRA.
Speaker 5 (28:02):
Oh correct, there's a lot of confusion about that, So
I'm going to talk to those of you fifty plus okay,
because you get to save more. The rule right now
is if I qualify for and have a wroth IRA,
the maximum contribution I can make per year is seventy
five hundred dollars.
Speaker 6 (28:20):
Well, that's true for a traditional IRA two.
Speaker 5 (28:23):
Now if you have a spouse, even if your spouse
doesn't have earned income, if they're your spouse, they also
qualify for that seven thy five hundred. But the power
of the wroth IRA is that you are allowed to
save up to the four oh.
Speaker 6 (28:38):
One K maximum.
Speaker 5 (28:39):
I believe right now it's thirty one thousand, five hundred
per year. Haven't checked the number recently, so you can
save significantly more. And guess what, don't tell anybody, But
if you end up with after tax contributions. Let's say
you max your four oh one k out early and
you can't put any more on the WROTH or the regular,
but you end up with after tax money.
Speaker 6 (29:01):
Guess what.
Speaker 5 (29:02):
Under present law this is threatening to be changed, But
under present IRS code and law, you can roll the
after tax money into the wroth. That's a cool trick
that you can use. Complicated right, and it may not
be for everyone. Some of you may be in a
position where matching out your wroth would you know, crush
(29:23):
your paycheck and hurt your your your your paycheck to
the point that you couldn't do it. Others of you
are foolish to not be saving into the wroth or converting.
How do you know where you stand. We've got the
tools to show you that our number happy to help.
It's what we do seven nine one five seven seven three.
If you're outside of the Baton Rouge area, it's two
(29:44):
two five seven nine one five seven seven three.
Speaker 6 (29:50):
It's the weekend.
Speaker 5 (29:50):
Of course, you'll get the voicemail, but we'll call you
back Monday and get some information and sit down and
help you. Or you can just go to meet with
us now dot com. That's meet with usnow dot com.
Pick out a spot on the calendar and someone will
call you back at the appropriate time.
Speaker 1 (30:06):
Hey, Christy, We talked about it before on the show
plenty of times about the twenty seventeen Tax Cuts and
Jobs Act that ends on December thirty first of twenty
twenty five, twenty twenty six, we go back to the
seventeen Rates and Brackets, which raises our taxes ten to
twenty five percent. Basically, it's kind of how it depends
on where you fall into the different brackets. But Matt
(30:27):
was talking about the stretch ira going away, and you
really could be leaving a burden for your kids. They
inherit your money and now they have ten years to
pay the taxes on all that money. They could call
you cause us some issues. Is this where maybe life
insurance comes in as a possibility of a tool to
use for this retirement saving stuff.
Speaker 2 (30:46):
Well, it absolutely can become a tool. The reality is
is most people think of life insurance as a depth
benefit only, and in that situation you would be using it.
Speaker 4 (30:55):
As a depth benefit.
Speaker 2 (30:57):
But for many of our clients, we will use a
form of life insurance as a tool to say, for
tax free income long term and provide a tax free
death benefit. So when you think of the word life insurance,
you really can't think of death benefit only because that's
typically what we think of in terms of life insurance. Now,
(31:19):
also in addition to you know, help with a state
planning and tax free income, we also see where life
insurance contracts can be become a valuable tool in long
term care planning. You know, we all understand that we
could need medical care, you know, at some point in
our life that's not going to be covered by traditional
(31:40):
health insurance or even medicare, and who's going to pay
for that? Well, typically we don't want to burden our
families with that expense. But a lot of times I
hear I don't know about you, Matt, but I hear
that you know, I don't want to pay a premium
for a long term care insurance contract that I may
or may not use because because I've, yeah, I pay
so many other insurance now, I don't think I can
(32:01):
afford that. So we often will even look at long
term care being covered under a life insurance contract as well. Therefore,
the death benefit goes to a family member or members
if it's not used, but if it is needed, then
we have the benefit of it. And so I think
that's it's kind of like we have to start thinking
about things differently and the tools that are available to us.
(32:23):
It's one of the things that we really like to
do at Presley Wealth Management is evaluate the individual situation
and look and see, Okay, these are the tools that
we have available to fix these problems. You know, Mark,
one of the things that we hear often way more
now than I did twenty years ago, is I really
don't care about the kids. You know, if the kids
(32:43):
have to pay a tax burden on this money, so
be it. I've paid for their education, I've you know,
paid for my grandkids education. You know, we want to
spend our money. So I would say legacy isn't as important.
In my opinion, it should be. But I think life
insurance can be used as a living benefit even more
than just as a depth benefit.
Speaker 1 (33:04):
Now, yeah, and that's interesting, and that's certainly if you'd
like to learn more about that. Well, how does that
fit into our situation? Seven nine to one fifty seven
seventy three, seven nine to one fifty seven seventy three. Matt,
you're Christie, do do either one of you have any
final tax planning tips For people with large IRA four
A one K balances, that's kind of who this tax
(33:24):
change could really affect, I would imagine.
Speaker 5 (33:27):
So it's kind of like that home repair project that
you keep putting off.
Speaker 6 (33:32):
Christy, we have these.
Speaker 5 (33:33):
Our house is about fourteen years old, and at fourteen
years old, for some reason, stuff starts breaking.
Speaker 6 (33:38):
Houses must be like dogs.
Speaker 5 (33:40):
They must age in dog years because it like twelve
thirteen years old, everything wants to start breaking. So we
have these gas lanterns out front, and for the last
couple of years they've looked terrible. One of them actually
eroded to the point I had to take it off,
and so I kept.
Speaker 6 (33:55):
Putting it off and putting it off and putting it off.
Speaker 5 (33:57):
So finally we broke down not too long ago and
went out spent the money got them. Now I have
to find someone to install them, but I know when
it's done it'll look great. My point is we can
sit here and talk about the math of it, the
numbers of it, but if you don't take the first
step to find out what you should do, you will
end up with a crushing tax burden and you will
(34:19):
wish right, Christy, that you had actually taken the first step.
I just encourage you to take the first step. Talk
about it, whether or not we help you do it now,
whether we help you do it later, whether we just
inspire you to do.
Speaker 6 (34:31):
It, take the first step.
Speaker 2 (34:33):
We call it go five levels deep, and that means
we really want to look at you know where you are,
what are going to be your sources of income. We're
going to look at your investment planning, your tax planning,
your medical planning, and your legacy planning. We want to
go five levels deep and you know and serve you,
and we'd love to do that. It just starts off
(34:53):
with a quick phone call. Give us a call it
two two five seven nine one five seven seven three
U five seven nine one five seven seven three are
are going to meet with usnow dot com and schedule
a quick call.
Speaker 1 (35:07):
So we're headed to our final segment of today is
Your Money Matters with Christy Smith and Matt Kennedy of
Presley Wealth Management.
Speaker 6 (35:13):
Stay with us.
Speaker 1 (35:14):
We're back right after this.
Speaker 7 (35:17):
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 5 (35:36):
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 8 (35:43):
All?
Speaker 6 (35:43):
Will the government take a bigger chunk than you thought? Remember,
you still may.
Speaker 5 (35:47):
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 6 (36:00):
It's your money. You deserve to know what's at stake
Right now.
Speaker 5 (36:03):
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. Presley Wealth Management seven ninet
one five seven seven three.
Speaker 7 (36:21):
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.
Speaker 4 (36:38):
You're listening to.
Speaker 7 (36:39):
Your Money Matters with Christy Smith and Matt Kennedy to
set up your fifteen minute meeting with the Presley Wealth
Management team called eight sixty six three nine ZHO twelve
fifty two.
Speaker 1 (36:52):
Welcome back to your Money Matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. I'm Mark Kelliott. If
you'd like to chat with them. You've got questions. Boy,
I wonder if I could return. Do I have enough? Well,
my love, what's be okay? If something happens to me,
just go to meet with usnow dot com. Set up
your own fifteen to twenty minute conversation with the team
then to see if you need to maybe come in
and sit down and actually have a full blown smart
plan built for you. So, Christy, I'll start with you.
(37:15):
And this is something that I know is near and
dear to your heart. That would be taxes. Christy, how
do I figure out how much I'll have to pay
in taxes in retirement? Oh? It's easy. It's going to
be less, that's right.
Speaker 6 (37:27):
Guess more.
Speaker 2 (37:28):
Well, I think one of the things that you need
to do is is you need to look at what
are your sources of income going to be. You know,
when we determine how much you want to live on monthly,
how are you going to fund that? Because are you
going to be taking that from Social Security benefits alone,
are you going to be receiving a pension payment, or
are you going to be supplementing those sources of income
with money from pre tax buckets. Maybe you've saved some
(37:51):
in after tax money. So I think the first way
of understanding you know, what am I going to pay
in terms of taxes in retirement, idly it is going
to be where are your income sources coming from and
how are they taxed?
Speaker 4 (38:05):
That's number one.
Speaker 2 (38:06):
But I think it's very important that we be proactive
in looking at, you know, what type of taxes are
we going to be paying in the future, because we
know that as it stands today, we will be paying
taxes at a higher rate beginning January one, twenty twenty six.
So I think we start off with the base scenario,
how are we going to be taxed right now based
(38:27):
on our true need and sources of income, But then
we start looking at how will we be taxed in
the future at a higher tax rate? Or you know,
how will we be taxed when we're forced to take
money from pre tax accounts that maybe we didn't actually need,
you know, so it's looking in advance.
Speaker 1 (38:43):
Yeah, so things might change. We did at r MD age.
Required minimum distribution age right now is seventy three. I'm
sixty four. My RMD age will be seventy five because
in twenty thirty three it bounces to seventy five. So
what are you going to do? Your taxes will change
when you get to that point.
Speaker 6 (38:58):
Matt.
Speaker 1 (38:58):
Here's a question for you. What do I do with
my four to oh one K after I retire? And
I imagine if you retire early, younger than say fifty
nine and a half, it's a different answer than if
you retire after that age.
Speaker 5 (39:12):
So you actually have two options. Well three number one,
you can leave it in the four oh one K.
Some people do that.
Speaker 6 (39:17):
You can do that.
Speaker 5 (39:18):
The problem is you typically end up paying a good
bit more because when you're in a four oh one K,
your employee, your employee or sorry, they pick up a
lot of the cost of the funds and things. But
once you leave the full burdens on you, and it
can be more expensive than you might imagine. Also, you
have very limited investments, right, I mean typically you're only
(39:38):
gonna have mutual funds, Whereas if you move the money
into an individual retirement account, you don't pay taxes because
we roll the money. It's called a trustee to trustee transfer.
If your four oh one K is with Empower or
Fidelity or Vanguard, it moves into.
Speaker 6 (39:56):
A with us.
Speaker 5 (39:57):
It's Charles schwab Ira. Well that's a try answer. So
what's the advantage. Well, we have more investment choices, we
have the ability to much better manage risk, so you
can roll it, you can leave it. Those those are
two options. I guess option three would be you could
just go cash the whole darn thing out and pay taxes.
But most people don't do that, do they, Christy.
Speaker 2 (40:17):
So one of the questions we get often is, you know,
if we want to retire before age fifty nine and
a half, or are we going to pay that added
ten percent tax penalty if we're using pre tax money
to live on the answer is, it depends on how
you do it. And so typically, because we're seeing more
and more people come in that are wanting to retire
(40:41):
before age fifty nine and a half, believe it or not,
We're seeing a lot more people in that situation. So
a lot of times what we're able to do is
we're able to say, okay, look, you're able to draw
income from your four to oh one K company if
you leave money in that plan and you're not going
to pay the added ten percent penalty because there's a
(41:01):
special ruling that says if you retire at fifty five
or or older, but before fifty nine and a half,
if you draw income directly from the four oh one K,
the IRS will not assess that ten percent penalty to you.
Speaker 5 (41:14):
I want to stress that again. So if you leave
a job at fifty and you start a new job
and retire at fifty six, you can't draw from the
four oh one K that you left at age fifty.
But if you're working I'll use Turner Industries as an example.
You're working there, you turn fifty five, and your four
oh one K is at Turner. When you turn fifty
(41:36):
five and you retire, say at fifty five fifty five
and a half, you can set up withdrawals from the
four to oh one K without the ten percent penalty.
But what if you have a million bucks there well,
we look and say how much do you need a year?
We might move some of the money into an IRA
to hedge the risk, work on tax planning, create lifetime
income for when you are fifty nine and a half.
Speaker 6 (41:58):
That'd be careful.
Speaker 5 (41:59):
When you move the money to an IRA, fifty nine
and a half comes into play. But we leave enough
money in the four oh one K that you have
income or if you have an emergency you can draw
from it. It's all about having a strategy. It's your
now money and your later money.
Speaker 2 (42:14):
And there are some companies that won't allow you if
you if you retire from a company at you know,
fifty six years old and you need to draw income
from the four oh one K, they won't allow you to.
Speaker 4 (42:27):
Move any of it out.
Speaker 2 (42:29):
So it's a matter of learning the facts, and I
think knowledge is powerful.
Speaker 1 (42:35):
So again, meet with usnow dot com to learn about
your situation. Meet with us now dot com or you
can always call the team at seven nine to one
fifty seven seventy three. All right, here's just some fun questions.
Wrap up today's show, Christy your Biggest Industry Frustration. Then
matt yours Christy, go go ahead, Biggest Industry frustrating.
Speaker 2 (42:53):
Oh my gosh, you're putting me on the spot there.
Oh wow, this is big in our industry, in our
because it depends on how you look at this question.
Let's just put it in a client's perspective, okay, because
that's taken regulatory out of the mix. Let's say in
the biggest frustration is that people they fear getting advice
(43:15):
because they fear they're going to be sold something. And
often they put off getting advice where they if they
came and got advice at it at an earlier age,
they could have made changes inside of their plans while
they're still working. That would have made a big difference
in retirement.
Speaker 6 (43:29):
For me, it's the same thing.
Speaker 5 (43:30):
It's the belief that we're all sales clowns, and there
are lots of sales clowns out there who don't do
the right thing, and then there are people who actually
care and do the right thing. And it sounds like
I'm bragging, but that's us.
Speaker 6 (43:44):
That's what we do. I mean, I don't chase people around.
Speaker 5 (43:47):
Christy doesn't sell you know, rainbow vacuums and cut co knives,
although I own those and love them. We're not going
to chase you down. Here are the facts, here's what
we can help you do. Do you need our help?
Speaker 6 (43:55):
Boom?
Speaker 1 (43:57):
Okay?
Speaker 6 (43:57):
First job, first job, First job, I worked at the
Western Auto in Erwinville, sweeping the parking lot and stock
in the shelves.
Speaker 2 (44:06):
My first job was at Blinking Ship Drugs in Baker
and I worked in the pharmacy as a cashier.
Speaker 1 (44:14):
All right, all right, favorite sports team?
Speaker 6 (44:17):
What it's easy for the Saints.
Speaker 5 (44:18):
I'm an NFL fan, So the Saints are number one.
LSU football or any LSU sports right there.
Speaker 2 (44:24):
At number two, I was going to say LSU is
my favorite team. My favorite sport I would have to
say is football.
Speaker 1 (44:31):
Let's hope the women's team doesn't fight with that. How
was ugly? Yeah? How many pets do you have? Final minute?
Speaker 4 (44:38):
Oh my god. You got to ask matthis first so
I can count all my I'm going.
Speaker 5 (44:41):
To count your horses. We have, well, we have two.
We have mea the border colleague, who's ten, and we
also have a little Yorkie who runs the house. Her
name is Penny and she's five, and she's just so bad.
Speaker 2 (44:54):
I have to say over ten. And that's because we
have two dogs. My favorite dog is mill a low Corgi,
and so we have chew dogs, we have a cat,
and then we have a lot of horses. My favorite
horse is Jerry. Jerry's the favorite Jerry Maguire partial to Jerry.
Speaker 1 (45:12):
All right, all right, that'll wrap that up. Why don't
you go ahead and remind people how to get ahold
of you have any questions about where they are on
their road to retirement.
Speaker 5 (45:19):
Two ways www dot meetwith usnow dot com. You can
set up a fifteen minute phone call just to talk,
so that's meetwith usnow dot com. Or leave us a
voicemail and we'll grab it on Monday and reach back
out to you during the week. We're at seven nine
one five seven seven three. That's seven nine one five
seven seven three. God bless, I have a great weekend.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and order legal advice.
Speaker 7 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC, AEWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice that offers products and
services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the 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 radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with or endorsed by the
US government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 4 (46:58):
This radio show is a paid placement
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