March 14, 2025 • 47 mins
Christy Smith, founder of Presley Wealth Management and Matt Kennedy, investment adviser representative, discuss issues that affect your retirement planning and how you can build a plan to help reduce risk and implement wealth accumulation strategies. Learn more at presleywealthmanagement.com and then, if you would like to have a conversation around your specific situation, set up an appointment online at meetwithusnow.com or by calling (225) 791-5773.
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Episode Transcript
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Speaker 1 (00:00):
When the news is national.
Speaker 2 (00:01):
SOB, security system volatility, global turmoil, interest rates, Rock.
Speaker 3 (00:04):
Dane, Wall Street.
Speaker 2 (00:05):
Your money matters. When it's Louisiana Local serving the Greater
Baton Rouge area.
Speaker 3 (00:10):
Your money matters.
Speaker 2 (00:12):
And when it's your time to retire, Presley Wealth Management
presents your Money Matters with Christy Smith.
Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full fledged 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 3 (00:38):
It's what we do every day.
Speaker 2 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters.
Speaker 6 (00:51):
I'm Mark Elliott alongside Christy Smith, the founder of Presley
Wealth Management, and Matt Kennedy and investment advines are represented
with the team at Presley Wealth. Pring up the phone
call the team of Press Wealth two two five seven
nine to one fifty seven seventy three. There is no
cons for this, no obligation, no pressure. They're here to
help if they can two, two, five, seven, nine to one,
fifty seven seventy three. And maybe the easiest thing to
(01:12):
remember would be meet with us now dot com. Set
up your own time, meet with us now dot com.
All right, Christy, Matt, welcome to the show. And you know,
one of the the challenges I think there's there's a
lot of challenges we get to retirement. But one of
the interesting parts of this, I think is, Christy, if
you think back to the old commercials of how Much Boy,
(01:32):
you know, the people standing in the backyards talking or
walking down the street and they got the number under
their arm and they're like, that's your number.
Speaker 1 (01:38):
That's what they say, my number is. Oh that was
the old AIJ or something.
Speaker 3 (01:42):
Yeah, they were they were they were BOYA, they were
I in G. That's what they were. They were I
in G. And they had a big orange number under
their arm YEP. That's it.
Speaker 1 (01:51):
Yeah.
Speaker 6 (01:52):
So that it's Christy to me because you when you
and Matt and your team at Presley Wealth put people's
plans together, the big number is important, But isn't it
more important about the monthly income and where it's coming
from and how much do we need to maintain our lifestyle?
We get caught up on that big number when really
the retirement's more about the monthly number, isn't it?
Speaker 7 (02:10):
Well, it really is, Mark.
Speaker 5 (02:12):
You know.
Speaker 4 (02:12):
The thing is is that we've seen a shift. Years
ago when people came in they said, you know, what's
my number? It's funny that you bring up that commercial
because it resonated with so many people. But now I
think the shift is. I think things are starting to
resonate differently with people because often we're not hearing what
(02:35):
is my number?
Speaker 7 (02:36):
I don't know if I've saved enough.
Speaker 4 (02:38):
They've want to know how much income they can draw
in retirement based on what they've saved, and the reality
is is there is no real correct number. Each of
us have different plans, goals, dreams that we want to
pursue in retirement, and our number really is going to
be customized to us independently. One of the things that
(03:01):
we want to be mindful of, though, in retirement is
planning for the unexpected.
Speaker 7 (03:08):
Do you hear that or how do you feel about that? Mark?
Speaker 4 (03:11):
With you being sixty five, do you think about, okay,
in retirement, what's going to be the unexpected expenses?
Speaker 6 (03:18):
Yeah, my mom's eighty eight she's in long term care
kind of situation right now. That is not anything I'm
looking forward to. So, yeah, there's a lot going on
because I think longevity is one of the big unknowns.
Don't know how long we're going to be here, and
certainly healthcare is one of the big unknowns as well.
And you know, Matt, you go back to when my
grandparents retired in the seventies, I think it was pretty
common that most retirees back then would spend less in retirement.
(03:41):
I'm wondering if today's retirees, maybe you're spending a little
more because it seems to be a more active retirement
than my grandparents retirement.
Speaker 5 (03:48):
Correct, more people live in the city or the suburbs
versus a graian on the farm, so there's more to go,
more to do, more to see. Life is more expensive,
that's part of it too. So if you go into retirement,
I think that you're right. Your grandparents, even your parents' mark,
they could have planned to cut their expenses.
Speaker 3 (04:07):
Maybe almost in half when they retire. Not anymore.
Speaker 5 (04:10):
As a matter of fact, most of our clients, Christy,
I would say most of the people we plan for
the first five to seven maybe eight years into retirement.
They don't want their budget to change dramatically. Maybe spend
eighty five percent, maybe ninety percent of what they have
been spending. We call that the go go go years.
Then you'll have some slow down years, then you'll have
(04:30):
some no go years.
Speaker 3 (04:31):
But you're right.
Speaker 5 (04:33):
The silent generation, our parents, they might sit on the
porch and rock, but the boomers, nah.
Speaker 3 (04:39):
We're goers, we're doers, we're seers, we're explorers.
Speaker 6 (04:42):
So Christy, when if somebody was sitting at home listing, going,
you know, I really don't know how much I need
to be able to retire. And there's a lot of
rules of thumb. We've talked about the four percent of rule.
There's just a lot of different rules of thumbs in
all areas of our lives. But this one seems to
me to kind of make sense. But I suppose it
depends and that is okay, if you can replace seventy
(05:02):
to eighty percent of your working income, you should be
good to go because that other twenty to thirty percent
is coming from social security. That's kind of a it
could kind of makes sense to me, But I don't
know if that is how you see it.
Speaker 4 (05:14):
Well, I do and I think it's really important to
plan for the unexpected. So when we're working to build
a smart plan, which does include an income plan, not
only do we want to teach our clients where they
can expect that their income is going to come from
and how much can they expect to receive, we also
want to plan for backup scenarios. We want to plan
(05:34):
for what happens if a married couple, you know, one
of them passes away at a young age. That typically
means a reduction in income. So we want to have
different scenarios built in place inside of someone's smart plan.
But we also want to plan for the unexpected. And Mark,
you know you said your mom is in a long
(05:54):
term care facility. Do you know According to the National
Council on Aging, people turning sixty five today have nearly
a seventy percent chance of needing long term care in
their lifetime.
Speaker 6 (06:08):
So since I already turned sixty five and I didn't
do it today, then I'm probably back to two percent chance.
Speaker 4 (06:15):
Well, I think really what we have to understand about
that is is that long term care isn't defined as
just nursing home care. Because many of us believe and
are actually correct that we will never enter a nursing home,
but we are living longer. And what's happening is is
we're seeing a shift where typically we see care given
(06:39):
in someone's home, maybe then they gradually advance to an
assisted living facility. Meth's parents are in an assisted living
facility right now as we speak. And many have this
conception that Medicare is going to pay the bulk of
those expenses.
Speaker 7 (06:58):
And you can understand.
Speaker 4 (07:00):
Why people believe that because you just don't know what
you don't know. Matt loves it when I say that,
and I say that sarcastic. You know, the reality is
is Medicare is not the system we're used to. We're
used to our work health insurance or our individual health
insurance plans. We get to Medicare age sixty five, we
(07:22):
typically do the Medicare dance because now our premiums are
going down. But we just don't understand that our Medicare
system is not designed to pay for long term care expenses.
And long term care expenses are often simply defined as custodial.
You know, they're not someone, it's not your medical expenses.
(07:45):
It's someone helping you, someone coming in and helping with
you know, your meals, you're making sure that you're taking
your medication, planning your medication for the week at home.
You know, I'm thinking of the things we did for
my grandmother before she entered us a nursing home. Normally,
we have an extended period of custodial care before we
(08:09):
would ever need any type of nursing home care. And
that's where the bulk of the expenses can come in,
whether they're given to us in our home or an.
Speaker 7 (08:18):
Assisted living facility.
Speaker 4 (08:20):
The fact is Medicare is not going to cover those expenses,
so we have to look at in building a long
term smart plan, how are we going to prepare your
plan so that we can cover those expenses when they happen. Statistically,
I believe it's a high statistic. I think it's like
one out of two is going to need some form
(08:41):
of long term care. So we want to put your
family in a situation where they can give you the
love you deserve, visit you the way they want to
and the way you would want them to visit, but
you don't want them to have to worry about the
financial burden of it. We want to take that out
of the equation. We want to build a plan that says, Okay,
(09:04):
if one of you needs long term care, how are
we going to take care of those expenses.
Speaker 5 (09:10):
It's about the if mark. Let's bring this back, as
they say, full circle. You started about talking about the
big number of people walking around with their big number. Look,
this is not about making you rich or doubling your
number in seven to ten years. It's about a plan.
There's five critical areas of retirement and retirement planning that
we focus in. We call it the smart plan. S
(09:32):
Sources of income? How do you take that number that
you've got and turn it into a paycheck in retirement,
a paycheck that, if you will, is goes hand in
hand with your Social Security or your pension. How do
you create sources of income? S sources of income? A
advanced planning? Christy was talking about a state planning, long
(09:53):
term care planning. Then there's m there's medical What do
you know about Medicare? What do you what scares you
about Medicare? I think that it overwhelms people, right Christy?
Signing up for Social Security and Medicare, especially Medicare and
Medicare supplements can be overwhelming. That's an area we specialize in.
So S is for sources of income, M is for medical,
(10:15):
whether it be Medicare or maybe you have to have
Obamacare or Cobra. A is for advanced planning. And then,
of course, let's talk about risk and taxes s m
a r T. Risk and taxes, because when it comes
to market risk, we're feeling a ton of volatility right now,
we're really testing some lows we haven't seen in quite
(10:37):
a while on the market. So do you have a
plan to handle the volatility? And then what about taxes?
When you are in a situation where you have that
big number, how much of that number is your number?
How much of that number is Uncle Sam's number. These
are the five critical areas we focus on s m
a r T. If you'd like to start the journey
and get a smart plan, whether you're retired already, are
(10:59):
on the verge of retiring, planning for retirement, we can help.
Our number is seven nine one five seven seven three,
seven nine one fifty seven seventy three. You call, you'll
get the message, we'll call you back Monday and set
up a time uh to talk on the phone, or
if you want to, you can just go to meet
with usnow dot com. That's meet with us now dot com.
(11:21):
You'll have access to our calendar. We'd like to carve
out fifteen to twenty minutes for a phone call just
to kind of find out where you are, what your
biggest concerns are, and then we sit face to face
and help you build out a smart retirement plan.
Speaker 3 (11:33):
Again, that's meetwi us noow dot com.
Speaker 6 (11:36):
So Christian, Matt and the team at Presley Wealth Management
really at the end of the day are here to
help you if they can right figure out where you are.
It's one of the most important phone calls you can make,
I would think, is to get clarity into your retirement picture.
Speaker 1 (11:46):
Do we have enough? Are we going to be okay?
Find out? This is Matt and Christy.
Speaker 6 (11:50):
You are here to help two two five, seven, nine,
one fifty seven, seventy three. And as Matt said, I
think for me at sixty five, I think it's easier
to remember. Meet with us now dot com. Meet with
us now dot com. We're just getting started today on
your money matters with Christy Smith and Matt Kennedy of
Prestywealth Management.
Speaker 1 (12:07):
We're back with more right after this. Stay with it.
Speaker 8 (12:10):
Worried your financial strategy is missing something. Presley Wealth wants
you to feel confident going into retirement. See how you're
doing with a free visit by going to the Presleygroup
dot net. That's the Presleygroup dot net or call eight
sixty six three nine OHO twelve fifty two.
Speaker 9 (12:28):
Stop for a moment, think about this.
Speaker 5 (12:30):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought. Remember, you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should? At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(12:51):
world of retirement taxes.
Speaker 9 (12:52):
It's your money, you deserve to know what's at stake.
Speaker 5 (12:55):
Right now, taxes are historically low, but they won't be
this low forever, so caull us at seven nine one
five seven seven three.
Speaker 3 (13:03):
That's seven nine one five seven seven three.
Speaker 5 (13:05):
Look, you work hard for your money, we'll work just
as hard to help you keep it.
Speaker 3 (13:09):
Pressley Wealth Management seven nine one five seven seven three.
Speaker 8 (13:12):
Investment advisory services offer through eight Wealth Management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations.
Speaker 7 (13:29):
If this is a year.
Speaker 8 (13:30):
You've resolved to finally get your finances in order, Christy
Smith and her team can help. Give them a call
today at eight sixty six three nine oh twelve fifty two.
That's eight six six three nine oh twelve fifty two.
Speaker 6 (13:45):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management. Again, if you have
questions about where you are on that road to retirement,
you just want to know more. Boy, I want to
make sure I don't run out of money before we
run out of life. Are we going to be okay
if we retire? Two two five seven nine one fifty
seven seven three. No cost to chat with the team.
They are here to help if they can seventy nine
to one fifty seven seventy three. And of course you
(14:06):
can always go to meet with us now dot COM's
just set up a fifteen minute phone call. Hey, here's
a couple questions I've got a couple concerns. What do
you think? And you go from there? Meet with us
now dot Com. I'm Mark lay glad you're with us.
We're gonna talk about the couple couple threats that we
all face, and certainly inflation is one of those that
it kind of depends, right whether it's a huge deal
or a smaller deal. But a one percent inflation, there's
(14:28):
still gonna be higher prices down the road, let alone
when it's five to ten percent. But we're gonna touch
on taxes to start with Christy. This is your favorite topic,
I think taxes and one of the interesting parts of
this because we've been talking about this for a long time.
The twenty seventeen Tax Cuts and Jobs Act that Trump
put in in his first term as president, and he
had said during the election, Biden's going, I'm going to
(14:49):
make sure that ends, and Trump's going, I'm gonna make
sure that continues. I mean that that twenty seventeen Tax
Cuts and Jobs Act for Families ends December thirty first,
twenty twenty five. So we're kind of in that kind
of time period where something's going to happen. It's either
going to end or Trump's going to extend it. Of course,
it's Congress that makes that decision.
Speaker 1 (15:09):
Where are you on this.
Speaker 6 (15:10):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 4 (15:16):
The reality is is that you know, in my opinion,
Trump is going to try to renew his tax cuts.
But we can't build long term plans on what ifs.
We have to build our plans based on facts right now.
The fact is is that if there is no change,
taxes will go up beginning January one of twenty twenty six. Now,
(15:39):
even if President Trump is able to get his tax
cuts extended, which you know, obviously we would all celebrate
on that, we have to think about the long term
effects of that and what will likely happen long term
because we do have a very large amount of debt
that has to be paid at some point. So I
(16:01):
would think that taxes, even if we're able to see
them stay at the same level they are right now
beginning in twenty twenty six, it's going to be for
a limited time period. If he's able to get the
tax cuts extended, it's not going to be an indefinite thing.
It's going to have a sunset provision at some point.
So I feel like using the opportunity that we have
(16:25):
right now of being able to make changes to our
long term plan so that we can be more tax
efficient in the long run is a very smart idea.
If we're lucky, we'll get another four years of that.
Speaker 7 (16:38):
But who knows. None of us know. We don't have
a crystal ball.
Speaker 4 (16:41):
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize.
Speaker 7 (16:53):
Those taxes in retirement.
Speaker 4 (16:54):
And many people have already caught on to the wroth ira,
you know, contribute to a wroth even inside of a
four oh one K. A lot of people have heard
of that. There's still a lot of misconception about who
can do a wroth contribution versus a wroth conversion.
Speaker 7 (17:12):
We'd love to help you with that.
Speaker 4 (17:14):
But there's also other ways that you can start planning
for long term income in retirement that would be more
tax efficient. For example, a lot of our younger clients
may consider like an index universal life contract and at
some point when they retire, take money out of it
tax free to live on in retirement. So there's other
(17:35):
strategies available that we can use besides just Wroth planning,
and that's what we do at Presley Wealth Management. We
look at the long term effect of taxes you using
today's tax code, and try to develop a better path
moving forward. And we want to be your resource. So
we'd love to have that conversation with you. And it's
(17:56):
a very simple conversation. What are you doing now or
are there things you can do differently? You know, my
dad would always say slow and steady wins the race.
Are there things that you can do now that that
maybe you don't even feel financially that make a big
difference long term in retirement. And that's what we would
love to help.
Speaker 6 (18:16):
You with two two five seven nine to one fifty
seven seventy three to chat with the team at Presley
Wealth Management. When Matt with our country over thirty six
trillion dollars in debt as a nation at the end
of the day, though they cannot tax their way out
of this. So I mean, Trump's tax cuts that he
wants to keep in place are very interesting. And Trump
(18:36):
has taken the corporate taxes in that twenty seventeen tax
cuts and Jobs Act from thirty five down to twenty one.
He's even talked about taking that for the corporations down
to fifteen, which I guess. I mean if they raise
taxes on corporations that we just end up paying more, correct, right,
I mean there's some option. Where do you think this
is headed? I mean, you can't tax your way out
of this, is what I think.
Speaker 5 (18:54):
Well, I don't think you can tax your way out
of it. You can try to grow your way out
of it. That's what Reagan did, right. Reagan cut taxes,
stimulated growth. I know, I can hear the echoes out there,
yeah butt, I know the yeah butt. But at the
end of the day, the core of what happened was
taxes went down, economic growth accelerated. That will probably be
the Trump doze plan. Here's the thing. I don't know
(19:16):
that they can get us out of this. I don't
know what they'll do. But the headline of this segment
is tackling the twin threats of taxes and inflation. Folks
don't forget they're joined hand in hand. Let me explain.
So let's say inflation continues to run high and you
just retire, and now because of inflation, your expenses are more.
(19:39):
Let's say you're going to plan to retire in five
years and inflation hasn't gotten under control, it's not tamed,
it hasn't cooled off well. When you're pulling money from
pre tax dollars, so you have an IRA worth a
million dollars and you're pulling money out to live on,
do you realize you're having to get double hit A.
You're taking more because inflation makes you take more. And
(20:02):
when you take more now you have to take more
than you planned on taking because you have to pay
the higher taxes on what you did take to make
up for the higher inflation.
Speaker 3 (20:11):
Ouch.
Speaker 5 (20:12):
The single most important thing you can focus on right now,
if you haven't retired, is what do you do about
your future tax burden? Because your future tax burden will
absolutely impact your inflation impact.
Speaker 3 (20:25):
Does that make sense what I'm trying to say, Christy?
Speaker 5 (20:27):
In other words, if I've got a million bucks and
I need to draw forty thousand a year to live on,
but because inflation, I have to draw forty five thousand,
I'm really having to draw more because I have to
pay more in taxes. But if I can take out
raw or tax free money. It doesn't hurt me as badly.
Speaker 4 (20:46):
Well, and that's why it's so important that you build
a completely diversified plan. You know, when we hear the
word diversification, we typically think of how our money is invested,
diversify in different areas of the market, diversify in levels
of risk. I like to think of diversification in terms
of how will you draw your retirement income. Will you
(21:09):
have funds that are set aside that will not be taxable,
diversify your sources of income, maybe maybe be able to
pull from an IRA of taxable bucket, but then consider
have you saved in buckets that are not going to
be taxable where you can mix those sources of income.
(21:31):
Not only does that help in terms of generating your
income and not outliving it because you don't have to
take as much, but often we are able to help
people avoid the IRMA penalties for their Medicare benefits by
being able to withdraw money from non taxable buckets in retirement.
So my question to you would be are you diversified?
Speaker 8 (21:52):
So?
Speaker 6 (21:52):
And Christy said it, Matt, you know, when taxes, if
the twenty seventy Tax Cuts and Jobs Act does actually suns.
At the end of this year and twenty twenty six
we go back to the seventeen rates of brackets. Your
taxes are going up twenty to thirty percent.
Speaker 1 (22:06):
That's just correct. That's kind of the way it is
right now.
Speaker 5 (22:08):
I don't see that happening, not with Trump in office,
but he could never say never, right.
Speaker 6 (22:13):
So okay, let's say that this that he does get
to extended. At the end of the day, Congress makes
that decision. Now he does have his the House and
the Senate on the Republican side, so it gives him
a little better shot at that. But the corporate tax,
it's kind of an interesting thing. I think you're talking
about Reagan and he tried to spur the economy on
that actually made things better economically for the country.
Speaker 1 (22:34):
I guess that's kind.
Speaker 6 (22:35):
Of the theory by lower this corporate taxes from twenty
one to fifteen, if he could do that.
Speaker 5 (22:40):
Right, well, let me add on the national scene, let
me bring it home to the state scene. I do
not want to miss this. Governor Jeff Landry and the
state administration here have radically changed the corporate and state
tax for Louisiana. The corporate tax went down. I don't
remember the exact percentage, but it's lower. But here's the
real impact for you, folks. The state has now tripled
(23:04):
the standard state tax deduction.
Speaker 3 (23:07):
It was forty five hundred bucks a person. They've tripled that.
Speaker 5 (23:10):
We now have a flat state tax of three percent.
It was progressive up to four point twenty five. Now
it doesn't matter if you make little money or if
you're wealthy. The state income tax rate is now three
percent across the board for everybody. However, they did build
in a poison pill for the next five years. The
(23:30):
state has raised the state sales tax from four percent
to five percent. That's to kind of help the transition.
So if you're paying state taxes, know the this year
is going to be a good year for you because
you have a about a one point twenty five percent
lower payment and a higher deduction.
Speaker 3 (23:48):
Huge.
Speaker 6 (23:49):
So when we come back, Christian matter going to tackle
a little bit about the inflation situation more with Christian
Matten right here on your money Matters.
Speaker 10 (23:56):
Right after this, Sam might need a loan soon from you.
We have over thirty four trillion dollars in national debt.
Where do you think the money to pay for that's
going to come from taxes. Believe it or not. Taxes
are at historic lows right now, but how much longer
will that last? A roth Ira conversion might be a
(24:17):
good option when planning for your retirement because you could
pay lower taxes now and avoid potentially higher taxes later.
Christy Smith and the team at the Presley Group have
seen taxes rise and fall. They know what options you
have to potentially reduce the amount of taxes you pay
in retirement. Call the team at the Presley Group and
schedule your tax analysis today eight sixty six three nine
zero twelve fifty two. That's eight six six three nine
(24:39):
zero one two five to two. Uncle Sam needs money.
Don't let him take it from you. Eight six six
three nine zero twelve fifty two. Investment advisory services offer
through a wealth management LLC A RETCH should investment advisor.
Investing involves risk. Always consult with the qualified tax advisor
before making any decisions regarding a roth conversion, as there
may be additional tax considerations.
Speaker 8 (25:00):
If this is a year you've resultded finally get your
finances in order. Christy Smith and her team can help.
Give them a call today at eight sixty six three
nine oh twelve fifty two. That's eight sixty six three
nine oh twelve fifty two.
Speaker 6 (25:17):
Glad you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management the team.
Christy started the company in six Matt joined the team
in O eight. They've been sitting down with folks just
like you for a long long time, helping them figure
out where they are on that road to retirement. Can
I retire? Do we have enough? Are we gonna be okay?
We'll our money last two two five, seven, nine one
fifty seven seventy three. If you'd like to have a conversation,
(25:38):
because there's a lot going on. Every year things change,
whether it's the national government, the local government, just a
lot going on. And of course Christian might I've already
talked about the windfall thing for social security, big for
those firemen, police teachers. You might be able to get
some so security call the team find out seven nine
to one, fifty seven to seventy three and you can
always go to meet with us. Now, I'm Mark Kelly.
(26:01):
We're talking about the challenges really of taxes. We touched
on that and certainly this is a big year for
that because of twenty seventeen Tax Cuts and Jobs Act
that Trump put into place back in his first term.
He's going to try to extend it actually expires for
families and individuals at the end of this year. The
corporate TAXI went from thirty five to twenty one. That
(26:22):
was no end date in that one, but for us
there is an endate. So we'll see how that all
plays out, certainly, But when it comes to inflation, Matt,
I'm gonna ask you a question. How much do you
think thirty years ago, nineteen ninety five, how much was
a new transmission.
Speaker 1 (26:35):
In a car?
Speaker 3 (26:36):
Oh? Lord, nineteen ninety five, seven hundred dollars?
Speaker 1 (26:39):
Okay, just making sense. That's a good guess, though, that's
a really good guess. But it actually was.
Speaker 6 (26:43):
Back in nineteen ninety five, the average transmission was twenty
five hundred, depending on the make of the model of
the car.
Speaker 1 (26:49):
Wait, fifteen to.
Speaker 5 (26:50):
Thirty cous seven hundred, you can tell I don't work
on my j yeah, exactly.
Speaker 6 (26:54):
But maybe a rebuilt transmission, maybe it would be seven hundred. Now,
I like your guests though, but it was twenty nine.
We had Irwinville Boy rebuilt transfermission.
Speaker 1 (27:02):
And the reason I.
Speaker 6 (27:02):
Bring that up is my daughter's transmission went out and
now she has hand controls because of her car wreck
as a senior in high school. So she's, you know,
hand controlling. And I wonder if that effected transmissioncause it
was only a fifty thousand miles car twenty eighteen.
Speaker 1 (27:14):
It should not be out, but it is.
Speaker 6 (27:16):
Just so you know that transmission now costs six thousand dollars. Wow,
So is that inflation. That's inflation, isn't it.
Speaker 1 (27:25):
Well?
Speaker 3 (27:25):
I just googled them.
Speaker 5 (27:26):
By the way, it says on average, replacing a car
transmission cost between four and seven thousand dollars.
Speaker 3 (27:30):
Holy cow, that's inflation.
Speaker 1 (27:33):
That is your relation, and so you think about it.
Speaker 6 (27:35):
Twenty twenty two is when we saw and we heard
this is the highest inflation we've had in forty years,
and so they're going back to this seventies and eighties,
and we got up to nine point one percent inflation
in twenty twenty two. And I think, Christy, it's fair
to say that once we had the Great Recession O
seven to early on nine, inflation was not really a
factor until twenty twenty two, was it.
Speaker 4 (27:56):
Well, it really wasn't, and we've built our plans for
our client to combat inflation, even though we haven't seen
high inflation until recently. It is really important that when
you're looking at your long term plan that you've actually
planned for inflation, because if you don't plan for inflation
(28:17):
in ten years from now, your lifestyle is going to
be a lot you're going to be doing a lot
less than what you're doing now. So you need to
build a overall plan that is going to take into
consideration inflation. And to do that, what we're going to
use is we're going to build strategies that are going
to highly diversify the income. We're going to take into
consideration the cola for social security benefits. Now, keep in
(28:41):
mind the cola increase the last couple of years because
of the level of inflation has been higher.
Speaker 7 (28:48):
But this year we're seeing a lower cola.
Speaker 4 (28:51):
It's really important that you build a long term plan
that includes inflation protection. Were going to do that in
building your smart plan at Presley Wealth Management.
Speaker 6 (29:04):
It used to be the one hundred year average was
about three percent or inflation, So that's kind of what
you would use. I would imagine, is that right?
Speaker 5 (29:10):
I think it's three point one four something. I think
the story of twenty twenty five will be inflation. It's
that simple. You can already see it in the beginning
of the year in the equity markets. You know, it's
all this enthusiasm over the election turning out the way
it did, a pro Wall Street president, an anti regulatory
regulatory president, and President Trump was elected. The market popped immediately.
(29:35):
But we're seeing some cracks in the market, and the
primary reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 6 (29:54):
He explain this to me, because it's a confusing thing
to me, is that, Okay, the Fed Federal Reserve chair
own pal they've been fighting inflation, right. They rose the
interest rate levels during that twenty twenty two time period.
In twenty twenty three, and then last year they were
going to lower them like five or six times, they didn't.
They did it twice, I think, at like a quarter percent.
(30:14):
But they're lower they're trying to The Fed's trying to
lower the interest rates, but yet the Federal Reserve or
the Treasury interest rates are going up.
Speaker 1 (30:21):
How does that work well with that?
Speaker 5 (30:24):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing, so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts.
That is creating perpetual high inflation. And so now the
(30:46):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting the stock market.
So it's kind of picked your poison, Christy.
Speaker 6 (31:01):
You know.
Speaker 5 (31:01):
So that's why one of the reasons is that you
really need to look at your risk profile this year
if you're close to retiring. We're not saying a horrible
market crash is coming, Bud. All the analysts feel like
twenty twenty five could have a lot of bumps along
the way.
Speaker 4 (31:15):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently. You know,
it's crazy to me, Mark, because people will come into
the office as they were looking for a second opinion,
which we highly encourage. I ask them to see their
(31:37):
written retirement plan. Maybe they retired three years ago. They
give me their investment statement and they say, this is
all I have.
Speaker 7 (31:45):
The thing is is that.
Speaker 4 (31:47):
You know, when you're building a long term retirement plan,
you need a written plan. And while we've been very
blessed with great markets, anyone who retired in the last
five years really hasn't had to worry because things have
been okay. It's when you get into a situation like
in two thousand and seven eight, like my dad went
(32:10):
into and his wasn't in that time period. My dad
actually experienced that in two thousand that things go well,
they go wrong, and you owe it to yourself to
look and be proactive versus reactive. So I would highly
encourage any of you that retired in the last five
years to just get a retirement checkup, a you know,
(32:33):
find out how much risk do you have in your portfolio?
Do you have a diversified tax plan, Do you have
a plan that protects you for higher levels of inflation
long term? In retirement now is actually the perfect time
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
(32:53):
with me when I say that nothing brings me more
joy than to be able to tell someone I think
you're good.
Speaker 5 (33:01):
Oh, I totally agree. Right track, and let me tell
you folks, to put you all at ease. I would
say that probably seventy percent of the people slash couples
that walk in and say our plan is to retire
in three years or two years, oftentimes we're able after
we do the homework and dig into things to say,
you know, if you wanted to retire now, you really could,
(33:24):
And they're quiet for a minute and they're like, are
you serious. Well, yes, based on your present investments now
we would have to build a plan to make sure
that we have a stable income, that we've reduced the risk.
But you know, we've done this long enough that it's
not just about the number of dollars you have. Please
don't make that mistake as you head into retirement. The
(33:45):
key is not your rate of return, it's your range
of return. So if you're greedy and you're all focused
on well, the market was up twenty percent and I
made twenty two. Let's fine if you're working and planning
to work a while, but if you're closing in on retirement,
you want to make sure that your range of return
is in a smaller range.
Speaker 3 (34:06):
What do I mean by that?
Speaker 5 (34:07):
When things are going good and you can capture say
three quarters of the upside of the market, great, Why
Because you don't want to get clocked when things are bad.
You want to mitigate the risk on the downside to
give you a higher degree of success in retirement. Range
of return as you approach retirement and first get into
retirement is so much more important than rate of return.
(34:31):
Let's talk about that more seven nine one five seven
seven three.
Speaker 3 (34:35):
It's what we do every day.
Speaker 5 (34:36):
We're retirement planners and we focus on a five part
holistic retirement plan. Sources of income, medical and medicare, advanced planning,
risk planning, and tax planning. Reach out to us at
seven nine to one, five seven seven three, or you
can set up a phone call online at meetwith usnow
(34:57):
dot com.
Speaker 6 (34:57):
Back on their final segment with Christian Matt right here
on Your Money Matters Right after this.
Speaker 8 (35:03):
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
twelve fifty two.
Speaker 9 (35:21):
Stop for a moment, think about this.
Speaker 5 (35:23):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 4 (35:28):
All?
Speaker 9 (35:28):
Will the government take a bigger chunk than you thought?
Speaker 5 (35:30):
Remember you still may owe taxes on that money, but
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes. It's your money, you deserve
to know what's at stake. Right now, taxes are historically low,
(35:51):
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 nine one five
seven seven three.
Speaker 8 (36:06):
Investment advisory services offer through a wealth management LLC, 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. You're listening to
your Money Matters with Christy Smith and Matt Kennedy to
(36:28):
set up your fifteen minute meeting with the Presley Wealth
Management team called eight six six three nine ozho twelve
fifty two.
Speaker 6 (36:37):
Bendy with us today for your money Matters with Christy
Smith and Matt Kennedy.
Speaker 1 (36:40):
Matt Kennedy going to.
Speaker 6 (36:41):
Bring us home today by himself, which is not a
problem for the old radio man himself. Christy, Matt and
the team at Presley wealthare here to help. It's two
two five seven nine one fifty seven seventy three. But
it might be easy to remember meet with us now
dot com and you just set your own time to
have a conversation with the team. Meet with us now
dot com. We're going to finish up today with a
little mail bag segment. So these are questions have come
(37:03):
in from maybe an email or an event that Christy
and Matt held and somebody had a question, or even
clients to come in and they go, ah, that's a
pretty good question. We got to use that on the
radio show. I always say this. So a first question,
for example, is from Bill and Baton Rouge. Bill, if
you really want the complete answer, I think it's easier
to talk with the team at Presley Wealth so they
can ask you follow up questions, and then you can
(37:24):
ask them follow up questions. We can really dig a
little bit deeper. So you do have that opportunity. All right, Matt,
here you go. First question, Bill and Baton Ruge says this, Matt,
I've been retired for about two years, and I'm honestly
ready for something different. I'm thinking about part time work
to help give me and my retirement accounts a little
bit of a break, but would cause any issues with
my Social Security?
Speaker 3 (37:44):
Oh, we hear this one all the time. So here's
the deal.
Speaker 5 (37:47):
If you're under your full retirement age, Bill, you didn't
say how old you were, but Bill, let's assume that
your full retirement age is sixty seven and you're sixty
five and you've decided I'm going to go work some
There is what we can call an earnings test for
Social Security. So if you are under your full retirement age,
(38:07):
assuming your retirement age is sixty seven, then at age
sixty five, you're only allowed to make around twenty three
thousand dollars a year. I'm giving round numbers because it
varies year to year. So if I want to be
real clear, Mark, people get really confused by this. When
we say earnings, we're talking about earnings from a ten
(38:28):
ninety nine or a W two form. I'm not talking
about rental income. I'm not talking about money you pull
out of your retirement savings iras or four to h
one k's. I'm not talking about a pension. That's all
called passive income. That's not earnings. But Bill, if you're
going to work and you're going to make let's just
say you're going to make forty eight thousand dollars a year,
(38:48):
but you're limited to around twenty three thousand, how would
that affect your Social Security?
Speaker 3 (38:53):
Well, social Security.
Speaker 5 (38:55):
Will begin deducting a dollar in Social Security for every
two dollars you make over that limit. Again, the limits
around twenty three thousand, So if you're making double that,
you're giving a lot of your Social Security back. People
often ask, okay, but do I get it back? Well,
you'd like to think that when you hit your full
retirement age, they gave you a big, fat lump sum
(39:16):
check right, No, market doesn't work that way. What they
do is they basically pro rate the amount they took
out and they pay you back over a fourteen year period.
So make sure you're going to live a long time, Bill,
and you'll get your money back. Now, there's one little
nuance to the law. Whenever you reach the year of
your full retirement. Bill, Let's say your birthday is in August.
(39:38):
You'll be sixty seven years old in August of two
thousand and twenty seven. Let's say in that year you
can make closer to sixty grand. It's a strange setup,
but be very careful and check with Social Security or
your CPA before you make a decision. Be careful, Old Bill.
Working while you're drawing your benefit can long term hurt you.
Speaker 1 (40:00):
Man, I could cause your taxes as well.
Speaker 3 (40:01):
I suppose you're so scurity, Yeah, I absolutely could.
Speaker 1 (40:04):
Yeah. So there's a lot of movie parts. Bill.
Speaker 6 (40:05):
This is a great opportunity I think for anybody asked
questions about SOB security asked Matt in the team two
two five seven nine to one fifty seven seventy three.
Next question comes from Jason. Jason is from Zachary Matt
and he says this, The idea of a big market
drop makes me really uncomfortable. Now that I'm within a
few years of retirement, how might I start repositioning my assets?
Speaker 1 (40:26):
And should I do so?
Speaker 3 (40:28):
Oh, that's always the tough one, Jason.
Speaker 5 (40:31):
You have to be very cognizant of something called sequence
of returns. The reason I said it's the tough one
is because some years as you head into retirement, in
some three to five year periods in the past, had
you left your accounts alone, you would have been fine
because the market was very bullish. However, if you were
preparing to retire, say in two thousand and nine, two
(40:52):
thousand and eight, in two thousand and nine would have
caused you severe harm. The question is do you know
exactly which way the market is going to go? Well,
of course not, no one does. It's those three years
before you retire. Some say the five years, so we'll
say the three to five years before you retire. In
the three to five years after you retire, that can
be so critical. We love to talk about sequence of returns. Listen,
(41:15):
if you retire into a terrible bear market and you
haven't adjusted your portfolio, it can cause you to work
longer or change your lifestyle. Conversely, if you retire into
a massive bull market, that can have a very positive impact.
How do you hedge? That's what we do with our
proprietary smart plan. We look at the sources of income
(41:35):
medical and medicare advance planning, but we also focus on risk.
That's the r and our smart plan, and our goal
is to reduce the range of return marks. So many
people get focused on the rate of return. Wow, my
portfolio is average nine point whatever percent. Great, that's fine
while you're working, but when you get within three to
(41:58):
five years of retiring, you really have to focus on
the range. What do I mean by that? Is it
better to go up forty percent and risk going down
forty percent over the next couple of years, or is
it better to say, you know what, I would be
happy making twenty or twenty five percent if I could
lower my chance of losses. Focus on the sequence of returns,
(42:18):
and your odds of success long term in retirement will
increase dramatically.
Speaker 6 (42:23):
So again, Jason, if you have any questions, you're like, man,
I'd like to figure this out because the markets always
make me a little nervous.
Speaker 1 (42:29):
Closer I get to retirement. Maybe in retirement it's a
different ballgame. I don't know.
Speaker 6 (42:33):
Everybody's situation is unique. Yeah, it's two two, five, seven,
nine to one, fifty seven seventy three.
Speaker 5 (42:38):
Mark, Can I have one more thing? I'm so sorry,
by the way, Jason. One of the things we can
do is we take your portfolio, your four oh one, Kira.
We can actually put it into our proprietary software and
we can model how much a negative sequence of returns
versus a positive sequence would affect your outcome. And so
that's very important as you work with us. One of
(42:59):
the things we can do is actually show you, hey,
if you stay invested the way you are, this is
the potential outcome in a bad or a good market.
We call it stress testing your portfolio. That's part of
the service we offer as part of our smart plan.
Speaker 6 (43:13):
All right, final question. We've got to do two and
a half minutes left, so I'll let you wrap it
all up. Matt, Diana and Matton Ruthe says this, Matt,
I'm really struggling to get organized with my finances. We
have money saved, but I just keep letting all this
paperwork pile up. Could you help me sort through everything
I have, or would I need to get it put
together before I come in to talk to you for
that first time.
Speaker 5 (43:34):
Some people are super organized. You can always tell the
engineers when they walk in the room. They lay out
their you know, their spreadsheet and it's a thing of beauty,
or they crack open the laptop with the XL.
Speaker 3 (43:45):
But listen, Diana.
Speaker 5 (43:46):
If you're not all together and you have shoe boxes
of stuff, that's fine. The most pertinent things are your
most recent statements, your tax return. If you don't have
a budget, we can help you with some software to develop,
and we're able to send you a template that's very
easy to understand as part of the planning process. But no,
don't feel like you have to be an engineer with
(44:07):
a spreadsheet all put together with all the tables perfectly aligned.
We can absolutely help you, But the most important things
are most recent statements. We can help you talk through
some of your budget concerns, but that tax return is
important because that let's us find out what room you
have for potential tax savings and things like that.
Speaker 1 (44:27):
All right, let me whip one more in. Got a
minute least?
Speaker 9 (44:29):
Okay?
Speaker 5 (44:29):
Yeah?
Speaker 6 (44:29):
Sure, Amber in Prayville says Matt, Can you have too
much life insurance?
Speaker 1 (44:33):
I feel like my mom could be overdoing it with
the number of little policies she has.
Speaker 3 (44:37):
I see this all the time.
Speaker 5 (44:38):
You know, somebody knew somebody from grade school, and somebody
from church, and then somebody in their social club, so
they have three different policies and they all just are
kind of there. Yes, you can have too much insurance.
Remember there's two real main purposes for insurance. Number One,
while you're younger in working, if something happens to you,
the insurance is to help pay off a debt, a
(45:00):
home mortgage, or provide for your children because they're not,
you know, of the age of majority. But I find
oftentimes that that insurance that grandma has would have long
ago been better off converted into something that could help
or pay medical expenses. Maybe you could be used for
some kind of long term care. So it's possible that
you can have a lot of little things. We call
(45:22):
it dripping nickels, where little dollars are wasted, So we
can always review that for you as well. Remember you
can reach out to us at seven nine one five
seven seventy three, or reach out to us online at
meetwith usnow dot Com. Meet with usnow dot com. There's
the time remark, We're done, We're out of time.
Speaker 2 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and.
Speaker 1 (45:45):
Or legal device.
Speaker 8 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all first products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Presley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products, never securities or investments. Insurance guarantees are backed
by the financial strength and claims paying abilities of the
issuing carrier. This radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with, or endorsed by the
US Government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
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be guaranteed by the Presley Group.
Speaker 7 (46:58):
This radio show is a paid placement
When the news is national.
Speaker 2 (00:01):
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Speaker 3 (00:10):
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And when it's your time to retire, Presley Wealth Management
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Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full fledged 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 3 (00:38):
It's what we do every day.
Speaker 2 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters.
Speaker 6 (00:51):
I'm Mark Elliott alongside Christy Smith, the founder of Presley
Wealth Management, and Matt Kennedy and investment advines are represented
with the team at Presley Wealth. Pring up the phone
call the team of Press Wealth two two five seven
nine to one fifty seven seventy three. There is no
cons for this, no obligation, no pressure. They're here to
help if they can two, two, five, seven, nine to one,
fifty seven seventy three. And maybe the easiest thing to
(01:12):
remember would be meet with us now dot com. Set
up your own time, meet with us now dot com.
All right, Christy, Matt, welcome to the show. And you know,
one of the the challenges I think there's there's a
lot of challenges we get to retirement. But one of
the interesting parts of this, I think is, Christy, if
you think back to the old commercials of how Much Boy,
(01:32):
you know, the people standing in the backyards talking or
walking down the street and they got the number under
their arm and they're like, that's your number.
Speaker 1 (01:38):
That's what they say, my number is. Oh that was
the old AIJ or something.
Speaker 3 (01:42):
Yeah, they were they were they were BOYA, they were
I in G. That's what they were. They were I
in G. And they had a big orange number under
their arm YEP. That's it.
Speaker 1 (01:51):
Yeah.
Speaker 6 (01:52):
So that it's Christy to me because you when you
and Matt and your team at Presley Wealth put people's
plans together, the big number is important, But isn't it
more important about the monthly income and where it's coming
from and how much do we need to maintain our lifestyle?
We get caught up on that big number when really
the retirement's more about the monthly number, isn't it?
Speaker 7 (02:10):
Well, it really is, Mark.
Speaker 5 (02:12):
You know.
Speaker 4 (02:12):
The thing is is that we've seen a shift. Years
ago when people came in they said, you know, what's
my number? It's funny that you bring up that commercial
because it resonated with so many people. But now I
think the shift is. I think things are starting to
resonate differently with people because often we're not hearing what
(02:35):
is my number?
Speaker 7 (02:36):
I don't know if I've saved enough.
Speaker 4 (02:38):
They've want to know how much income they can draw
in retirement based on what they've saved, and the reality
is is there is no real correct number. Each of
us have different plans, goals, dreams that we want to
pursue in retirement, and our number really is going to
be customized to us independently. One of the things that
(03:01):
we want to be mindful of, though, in retirement is
planning for the unexpected.
Speaker 7 (03:08):
Do you hear that or how do you feel about that? Mark?
Speaker 4 (03:11):
With you being sixty five, do you think about, okay,
in retirement, what's going to be the unexpected expenses?
Speaker 6 (03:18):
Yeah, my mom's eighty eight she's in long term care
kind of situation right now. That is not anything I'm
looking forward to. So, yeah, there's a lot going on
because I think longevity is one of the big unknowns.
Don't know how long we're going to be here, and
certainly healthcare is one of the big unknowns as well.
And you know, Matt, you go back to when my
grandparents retired in the seventies, I think it was pretty
common that most retirees back then would spend less in retirement.
(03:41):
I'm wondering if today's retirees, maybe you're spending a little
more because it seems to be a more active retirement
than my grandparents retirement.
Speaker 5 (03:48):
Correct, more people live in the city or the suburbs
versus a graian on the farm, so there's more to go,
more to do, more to see. Life is more expensive,
that's part of it too. So if you go into retirement,
I think that you're right. Your grandparents, even your parents' mark,
they could have planned to cut their expenses.
Speaker 3 (04:07):
Maybe almost in half when they retire. Not anymore.
Speaker 5 (04:10):
As a matter of fact, most of our clients, Christy,
I would say most of the people we plan for
the first five to seven maybe eight years into retirement.
They don't want their budget to change dramatically. Maybe spend
eighty five percent, maybe ninety percent of what they have
been spending. We call that the go go go years.
Then you'll have some slow down years, then you'll have
(04:30):
some no go years.
Speaker 3 (04:31):
But you're right.
Speaker 5 (04:33):
The silent generation, our parents, they might sit on the
porch and rock, but the boomers, nah.
Speaker 3 (04:39):
We're goers, we're doers, we're seers, we're explorers.
Speaker 6 (04:42):
So Christy, when if somebody was sitting at home listing, going,
you know, I really don't know how much I need
to be able to retire. And there's a lot of
rules of thumb. We've talked about the four percent of rule.
There's just a lot of different rules of thumbs in
all areas of our lives. But this one seems to
me to kind of make sense. But I suppose it
depends and that is okay, if you can replace seventy
(05:02):
to eighty percent of your working income, you should be
good to go because that other twenty to thirty percent
is coming from social security. That's kind of a it
could kind of makes sense to me, But I don't
know if that is how you see it.
Speaker 4 (05:14):
Well, I do and I think it's really important to
plan for the unexpected. So when we're working to build
a smart plan, which does include an income plan, not
only do we want to teach our clients where they
can expect that their income is going to come from
and how much can they expect to receive, we also
want to plan for backup scenarios. We want to plan
(05:34):
for what happens if a married couple, you know, one
of them passes away at a young age. That typically
means a reduction in income. So we want to have
different scenarios built in place inside of someone's smart plan.
But we also want to plan for the unexpected. And Mark,
you know you said your mom is in a long
(05:54):
term care facility. Do you know According to the National
Council on Aging, people turning sixty five today have nearly
a seventy percent chance of needing long term care in
their lifetime.
Speaker 6 (06:08):
So since I already turned sixty five and I didn't
do it today, then I'm probably back to two percent chance.
Speaker 4 (06:15):
Well, I think really what we have to understand about
that is is that long term care isn't defined as
just nursing home care. Because many of us believe and
are actually correct that we will never enter a nursing home,
but we are living longer. And what's happening is is
we're seeing a shift where typically we see care given
(06:39):
in someone's home, maybe then they gradually advance to an
assisted living facility. Meth's parents are in an assisted living
facility right now as we speak. And many have this
conception that Medicare is going to pay the bulk of
those expenses.
Speaker 7 (06:58):
And you can understand.
Speaker 4 (07:00):
Why people believe that because you just don't know what
you don't know. Matt loves it when I say that,
and I say that sarcastic. You know, the reality is
is Medicare is not the system we're used to. We're
used to our work health insurance or our individual health
insurance plans. We get to Medicare age sixty five, we
(07:22):
typically do the Medicare dance because now our premiums are
going down. But we just don't understand that our Medicare
system is not designed to pay for long term care expenses.
And long term care expenses are often simply defined as custodial.
You know, they're not someone, it's not your medical expenses.
(07:45):
It's someone helping you, someone coming in and helping with
you know, your meals, you're making sure that you're taking
your medication, planning your medication for the week at home.
You know, I'm thinking of the things we did for
my grandmother before she entered us a nursing home. Normally,
we have an extended period of custodial care before we
(08:09):
would ever need any type of nursing home care. And
that's where the bulk of the expenses can come in,
whether they're given to us in our home or an.
Speaker 7 (08:18):
Assisted living facility.
Speaker 4 (08:20):
The fact is Medicare is not going to cover those expenses,
so we have to look at in building a long
term smart plan, how are we going to prepare your
plan so that we can cover those expenses when they happen. Statistically,
I believe it's a high statistic. I think it's like
one out of two is going to need some form
(08:41):
of long term care. So we want to put your
family in a situation where they can give you the
love you deserve, visit you the way they want to
and the way you would want them to visit, but
you don't want them to have to worry about the
financial burden of it. We want to take that out
of the equation. We want to build a plan that says, Okay,
(09:04):
if one of you needs long term care, how are
we going to take care of those expenses.
Speaker 5 (09:10):
It's about the if mark. Let's bring this back, as
they say, full circle. You started about talking about the
big number of people walking around with their big number. Look,
this is not about making you rich or doubling your
number in seven to ten years. It's about a plan.
There's five critical areas of retirement and retirement planning that
we focus in. We call it the smart plan. S
(09:32):
Sources of income? How do you take that number that
you've got and turn it into a paycheck in retirement,
a paycheck that, if you will, is goes hand in
hand with your Social Security or your pension. How do
you create sources of income? S sources of income? A
advanced planning? Christy was talking about a state planning, long
(09:53):
term care planning. Then there's m there's medical What do
you know about Medicare? What do you what scares you
about Medicare? I think that it overwhelms people, right Christy?
Signing up for Social Security and Medicare, especially Medicare and
Medicare supplements can be overwhelming. That's an area we specialize in.
So S is for sources of income, M is for medical,
(10:15):
whether it be Medicare or maybe you have to have
Obamacare or Cobra. A is for advanced planning. And then,
of course, let's talk about risk and taxes s m
a r T. Risk and taxes, because when it comes
to market risk, we're feeling a ton of volatility right now,
we're really testing some lows we haven't seen in quite
(10:37):
a while on the market. So do you have a
plan to handle the volatility? And then what about taxes?
When you are in a situation where you have that
big number, how much of that number is your number?
How much of that number is Uncle Sam's number. These
are the five critical areas we focus on s m
a r T. If you'd like to start the journey
and get a smart plan, whether you're retired already, are
(10:59):
on the verge of retiring, planning for retirement, we can help.
Our number is seven nine one five seven seven three,
seven nine one fifty seven seventy three. You call, you'll
get the message, we'll call you back Monday and set
up a time uh to talk on the phone, or
if you want to, you can just go to meet
with usnow dot com. That's meet with us now dot com.
(11:21):
You'll have access to our calendar. We'd like to carve
out fifteen to twenty minutes for a phone call just
to kind of find out where you are, what your
biggest concerns are, and then we sit face to face
and help you build out a smart retirement plan.
Speaker 3 (11:33):
Again, that's meetwi us noow dot com.
Speaker 6 (11:36):
So Christian, Matt and the team at Presley Wealth Management
really at the end of the day are here to
help you if they can right figure out where you are.
It's one of the most important phone calls you can make,
I would think, is to get clarity into your retirement picture.
Speaker 1 (11:46):
Do we have enough? Are we going to be okay?
Find out? This is Matt and Christy.
Speaker 6 (11:50):
You are here to help two two five, seven, nine,
one fifty seven, seventy three. And as Matt said, I
think for me at sixty five, I think it's easier
to remember. Meet with us now dot com. Meet with
us now dot com. We're just getting started today on
your money matters with Christy Smith and Matt Kennedy of
Prestywealth Management.
Speaker 1 (12:07):
We're back with more right after this. Stay with it.
Speaker 8 (12:10):
Worried your financial strategy is missing something. Presley Wealth wants
you to feel confident going into retirement. See how you're
doing with a free visit by going to the Presleygroup
dot net. That's the Presleygroup dot net or call eight
sixty six three nine OHO twelve fifty two.
Speaker 9 (12:28):
Stop for a moment, think about this.
Speaker 5 (12:30):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought. Remember, you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should? At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(12:51):
world of retirement taxes.
Speaker 9 (12:52):
It's your money, you deserve to know what's at stake.
Speaker 5 (12:55):
Right now, taxes are historically low, but they won't be
this low forever, so caull us at seven nine one
five seven seven three.
Speaker 3 (13:03):
That's seven nine one five seven seven three.
Speaker 5 (13:05):
Look, you work hard for your money, we'll work just
as hard to help you keep it.
Speaker 3 (13:09):
Pressley Wealth Management seven nine one five seven seven three.
Speaker 8 (13:12):
Investment advisory services offer through eight Wealth Management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations.
Speaker 7 (13:29):
If this is a year.
Speaker 8 (13:30):
You've resolved to finally get your finances in order, Christy
Smith and her team can help. Give them a call
today at eight sixty six three nine oh twelve fifty two.
That's eight six six three nine oh twelve fifty two.
Speaker 6 (13:45):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Pressley Wealth Management. Again, if you have
questions about where you are on that road to retirement,
you just want to know more. Boy, I want to
make sure I don't run out of money before we
run out of life. Are we going to be okay
if we retire? Two two five seven nine one fifty
seven seven three. No cost to chat with the team.
They are here to help if they can seventy nine
to one fifty seven seventy three. And of course you
(14:06):
can always go to meet with us now dot COM's
just set up a fifteen minute phone call. Hey, here's
a couple questions I've got a couple concerns. What do
you think? And you go from there? Meet with us
now dot Com. I'm Mark lay glad you're with us.
We're gonna talk about the couple couple threats that we
all face, and certainly inflation is one of those that
it kind of depends, right whether it's a huge deal
or a smaller deal. But a one percent inflation, there's
(14:28):
still gonna be higher prices down the road, let alone
when it's five to ten percent. But we're gonna touch
on taxes to start with Christy. This is your favorite topic,
I think taxes and one of the interesting parts of
this because we've been talking about this for a long time.
The twenty seventeen Tax Cuts and Jobs Act that Trump
put in in his first term as president, and he
had said during the election, Biden's going, I'm going to
(14:49):
make sure that ends, and Trump's going, I'm gonna make
sure that continues. I mean that that twenty seventeen Tax
Cuts and Jobs Act for Families ends December thirty first,
twenty twenty five. So we're kind of in that kind
of time period where something's going to happen. It's either
going to end or Trump's going to extend it. Of course,
it's Congress that makes that decision.
Speaker 1 (15:09):
Where are you on this.
Speaker 6 (15:10):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 4 (15:16):
The reality is is that you know, in my opinion,
Trump is going to try to renew his tax cuts.
But we can't build long term plans on what ifs.
We have to build our plans based on facts right now.
The fact is is that if there is no change,
taxes will go up beginning January one of twenty twenty six. Now,
(15:39):
even if President Trump is able to get his tax
cuts extended, which you know, obviously we would all celebrate
on that, we have to think about the long term
effects of that and what will likely happen long term
because we do have a very large amount of debt
that has to be paid at some point. So I
(16:01):
would think that taxes, even if we're able to see
them stay at the same level they are right now
beginning in twenty twenty six, it's going to be for
a limited time period. If he's able to get the
tax cuts extended, it's not going to be an indefinite thing.
It's going to have a sunset provision at some point.
So I feel like using the opportunity that we have
(16:25):
right now of being able to make changes to our
long term plan so that we can be more tax
efficient in the long run is a very smart idea.
If we're lucky, we'll get another four years of that.
Speaker 7 (16:38):
But who knows. None of us know. We don't have
a crystal ball.
Speaker 4 (16:41):
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize.
Speaker 7 (16:53):
Those taxes in retirement.
Speaker 4 (16:54):
And many people have already caught on to the wroth ira,
you know, contribute to a wroth even inside of a
four oh one K. A lot of people have heard
of that. There's still a lot of misconception about who
can do a wroth contribution versus a wroth conversion.
Speaker 7 (17:12):
We'd love to help you with that.
Speaker 4 (17:14):
But there's also other ways that you can start planning
for long term income in retirement that would be more
tax efficient. For example, a lot of our younger clients
may consider like an index universal life contract and at
some point when they retire, take money out of it
tax free to live on in retirement. So there's other
(17:35):
strategies available that we can use besides just Wroth planning,
and that's what we do at Presley Wealth Management. We
look at the long term effect of taxes you using
today's tax code, and try to develop a better path
moving forward. And we want to be your resource. So
we'd love to have that conversation with you. And it's
(17:56):
a very simple conversation. What are you doing now or
are there things you can do differently? You know, my
dad would always say slow and steady wins the race.
Are there things that you can do now that that
maybe you don't even feel financially that make a big
difference long term in retirement. And that's what we would
love to help.
Speaker 6 (18:16):
You with two two five seven nine to one fifty
seven seventy three to chat with the team at Presley
Wealth Management. When Matt with our country over thirty six
trillion dollars in debt as a nation at the end
of the day, though they cannot tax their way out
of this. So I mean, Trump's tax cuts that he
wants to keep in place are very interesting. And Trump
(18:36):
has taken the corporate taxes in that twenty seventeen tax
cuts and Jobs Act from thirty five down to twenty one.
He's even talked about taking that for the corporations down
to fifteen, which I guess. I mean if they raise
taxes on corporations that we just end up paying more, correct, right,
I mean there's some option. Where do you think this
is headed? I mean, you can't tax your way out
of this, is what I think.
Speaker 5 (18:54):
Well, I don't think you can tax your way out
of it. You can try to grow your way out
of it. That's what Reagan did, right. Reagan cut taxes,
stimulated growth. I know, I can hear the echoes out there,
yeah butt, I know the yeah butt. But at the
end of the day, the core of what happened was
taxes went down, economic growth accelerated. That will probably be
the Trump doze plan. Here's the thing. I don't know
(19:16):
that they can get us out of this. I don't
know what they'll do. But the headline of this segment
is tackling the twin threats of taxes and inflation. Folks
don't forget they're joined hand in hand. Let me explain.
So let's say inflation continues to run high and you
just retire, and now because of inflation, your expenses are more.
(19:39):
Let's say you're going to plan to retire in five
years and inflation hasn't gotten under control, it's not tamed,
it hasn't cooled off well. When you're pulling money from
pre tax dollars, so you have an IRA worth a
million dollars and you're pulling money out to live on,
do you realize you're having to get double hit A.
You're taking more because inflation makes you take more. And
(20:02):
when you take more now you have to take more
than you planned on taking because you have to pay
the higher taxes on what you did take to make
up for the higher inflation.
Speaker 3 (20:11):
Ouch.
Speaker 5 (20:12):
The single most important thing you can focus on right now,
if you haven't retired, is what do you do about
your future tax burden? Because your future tax burden will
absolutely impact your inflation impact.
Speaker 3 (20:25):
Does that make sense what I'm trying to say, Christy?
Speaker 5 (20:27):
In other words, if I've got a million bucks and
I need to draw forty thousand a year to live on,
but because inflation, I have to draw forty five thousand,
I'm really having to draw more because I have to
pay more in taxes. But if I can take out
raw or tax free money. It doesn't hurt me as badly.
Speaker 4 (20:46):
Well, and that's why it's so important that you build
a completely diversified plan. You know, when we hear the
word diversification, we typically think of how our money is invested,
diversify in different areas of the market, diversify in levels
of risk. I like to think of diversification in terms
of how will you draw your retirement income. Will you
(21:09):
have funds that are set aside that will not be taxable,
diversify your sources of income, maybe maybe be able to
pull from an IRA of taxable bucket, but then consider
have you saved in buckets that are not going to
be taxable where you can mix those sources of income.
(21:31):
Not only does that help in terms of generating your
income and not outliving it because you don't have to
take as much, but often we are able to help
people avoid the IRMA penalties for their Medicare benefits by
being able to withdraw money from non taxable buckets in retirement.
So my question to you would be are you diversified?
Speaker 8 (21:52):
So?
Speaker 6 (21:52):
And Christy said it, Matt, you know, when taxes, if
the twenty seventy Tax Cuts and Jobs Act does actually suns.
At the end of this year and twenty twenty six
we go back to the seventeen rates of brackets. Your
taxes are going up twenty to thirty percent.
Speaker 1 (22:06):
That's just correct. That's kind of the way it is
right now.
Speaker 5 (22:08):
I don't see that happening, not with Trump in office,
but he could never say never, right.
Speaker 6 (22:13):
So okay, let's say that this that he does get
to extended. At the end of the day, Congress makes
that decision. Now he does have his the House and
the Senate on the Republican side, so it gives him
a little better shot at that. But the corporate tax,
it's kind of an interesting thing. I think you're talking
about Reagan and he tried to spur the economy on
that actually made things better economically for the country.
Speaker 1 (22:34):
I guess that's kind.
Speaker 6 (22:35):
Of the theory by lower this corporate taxes from twenty
one to fifteen, if he could do that.
Speaker 5 (22:40):
Right, well, let me add on the national scene, let
me bring it home to the state scene. I do
not want to miss this. Governor Jeff Landry and the
state administration here have radically changed the corporate and state
tax for Louisiana. The corporate tax went down. I don't
remember the exact percentage, but it's lower. But here's the
real impact for you, folks. The state has now tripled
(23:04):
the standard state tax deduction.
Speaker 3 (23:07):
It was forty five hundred bucks a person. They've tripled that.
Speaker 5 (23:10):
We now have a flat state tax of three percent.
It was progressive up to four point twenty five. Now
it doesn't matter if you make little money or if
you're wealthy. The state income tax rate is now three
percent across the board for everybody. However, they did build
in a poison pill for the next five years. The
(23:30):
state has raised the state sales tax from four percent
to five percent. That's to kind of help the transition.
So if you're paying state taxes, know the this year
is going to be a good year for you because
you have a about a one point twenty five percent
lower payment and a higher deduction.
Speaker 3 (23:48):
Huge.
Speaker 6 (23:49):
So when we come back, Christian matter going to tackle
a little bit about the inflation situation more with Christian
Matten right here on your money Matters.
Speaker 10 (23:56):
Right after this, Sam might need a loan soon from you.
We have over thirty four trillion dollars in national debt.
Where do you think the money to pay for that's
going to come from taxes. Believe it or not. Taxes
are at historic lows right now, but how much longer
will that last? A roth Ira conversion might be a
(24:17):
good option when planning for your retirement because you could
pay lower taxes now and avoid potentially higher taxes later.
Christy Smith and the team at the Presley Group have
seen taxes rise and fall. They know what options you
have to potentially reduce the amount of taxes you pay
in retirement. Call the team at the Presley Group and
schedule your tax analysis today eight sixty six three nine
zero twelve fifty two. That's eight six six three nine
(24:39):
zero one two five to two. Uncle Sam needs money.
Don't let him take it from you. Eight six six
three nine zero twelve fifty two. Investment advisory services offer
through a wealth management LLC A RETCH should investment advisor.
Investing involves risk. Always consult with the qualified tax advisor
before making any decisions regarding a roth conversion, as there
may be additional tax considerations.
Speaker 8 (25:00):
If this is a year you've resultded finally get your
finances in order. Christy Smith and her team can help.
Give them a call today at eight sixty six three
nine oh twelve fifty two. That's eight sixty six three
nine oh twelve fifty two.
Speaker 6 (25:17):
Glad you're with us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management the team.
Christy started the company in six Matt joined the team
in O eight. They've been sitting down with folks just
like you for a long long time, helping them figure
out where they are on that road to retirement. Can
I retire? Do we have enough? Are we gonna be okay?
We'll our money last two two five, seven, nine one
fifty seven seventy three. If you'd like to have a conversation,
(25:38):
because there's a lot going on. Every year things change,
whether it's the national government, the local government, just a
lot going on. And of course Christian might I've already
talked about the windfall thing for social security, big for
those firemen, police teachers. You might be able to get
some so security call the team find out seven nine
to one, fifty seven to seventy three and you can
always go to meet with us. Now, I'm Mark Kelly.
(26:01):
We're talking about the challenges really of taxes. We touched
on that and certainly this is a big year for
that because of twenty seventeen Tax Cuts and Jobs Act
that Trump put into place back in his first term.
He's going to try to extend it actually expires for
families and individuals at the end of this year. The
corporate TAXI went from thirty five to twenty one. That
(26:22):
was no end date in that one, but for us
there is an endate. So we'll see how that all
plays out, certainly, But when it comes to inflation, Matt,
I'm gonna ask you a question. How much do you
think thirty years ago, nineteen ninety five, how much was
a new transmission.
Speaker 1 (26:35):
In a car?
Speaker 3 (26:36):
Oh? Lord, nineteen ninety five, seven hundred dollars?
Speaker 1 (26:39):
Okay, just making sense. That's a good guess, though, that's
a really good guess. But it actually was.
Speaker 6 (26:43):
Back in nineteen ninety five, the average transmission was twenty
five hundred, depending on the make of the model of
the car.
Speaker 1 (26:49):
Wait, fifteen to.
Speaker 5 (26:50):
Thirty cous seven hundred, you can tell I don't work
on my j yeah, exactly.
Speaker 6 (26:54):
But maybe a rebuilt transmission, maybe it would be seven hundred. Now,
I like your guests though, but it was twenty nine.
We had Irwinville Boy rebuilt transfermission.
Speaker 1 (27:02):
And the reason I.
Speaker 6 (27:02):
Bring that up is my daughter's transmission went out and
now she has hand controls because of her car wreck
as a senior in high school. So she's, you know,
hand controlling. And I wonder if that effected transmissioncause it
was only a fifty thousand miles car twenty eighteen.
Speaker 1 (27:14):
It should not be out, but it is.
Speaker 6 (27:16):
Just so you know that transmission now costs six thousand dollars. Wow,
So is that inflation. That's inflation, isn't it.
Speaker 1 (27:25):
Well?
Speaker 3 (27:25):
I just googled them.
Speaker 5 (27:26):
By the way, it says on average, replacing a car
transmission cost between four and seven thousand dollars.
Speaker 3 (27:30):
Holy cow, that's inflation.
Speaker 1 (27:33):
That is your relation, and so you think about it.
Speaker 6 (27:35):
Twenty twenty two is when we saw and we heard
this is the highest inflation we've had in forty years,
and so they're going back to this seventies and eighties,
and we got up to nine point one percent inflation
in twenty twenty two. And I think, Christy, it's fair
to say that once we had the Great Recession O
seven to early on nine, inflation was not really a
factor until twenty twenty two, was it.
Speaker 4 (27:56):
Well, it really wasn't, and we've built our plans for
our client to combat inflation, even though we haven't seen
high inflation until recently. It is really important that when
you're looking at your long term plan that you've actually
planned for inflation, because if you don't plan for inflation
(28:17):
in ten years from now, your lifestyle is going to
be a lot you're going to be doing a lot
less than what you're doing now. So you need to
build a overall plan that is going to take into
consideration inflation. And to do that, what we're going to
use is we're going to build strategies that are going
to highly diversify the income. We're going to take into
consideration the cola for social security benefits. Now, keep in
(28:41):
mind the cola increase the last couple of years because
of the level of inflation has been higher.
Speaker 7 (28:48):
But this year we're seeing a lower cola.
Speaker 4 (28:51):
It's really important that you build a long term plan
that includes inflation protection. Were going to do that in
building your smart plan at Presley Wealth Management.
Speaker 6 (29:04):
It used to be the one hundred year average was
about three percent or inflation, So that's kind of what
you would use. I would imagine, is that right?
Speaker 5 (29:10):
I think it's three point one four something. I think
the story of twenty twenty five will be inflation. It's
that simple. You can already see it in the beginning
of the year in the equity markets. You know, it's
all this enthusiasm over the election turning out the way
it did, a pro Wall Street president, an anti regulatory
regulatory president, and President Trump was elected. The market popped immediately.
(29:35):
But we're seeing some cracks in the market, and the
primary reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 6 (29:54):
He explain this to me, because it's a confusing thing
to me, is that, Okay, the Fed Federal Reserve chair
own pal they've been fighting inflation, right. They rose the
interest rate levels during that twenty twenty two time period.
In twenty twenty three, and then last year they were
going to lower them like five or six times, they didn't.
They did it twice, I think, at like a quarter percent.
(30:14):
But they're lower they're trying to The Fed's trying to
lower the interest rates, but yet the Federal Reserve or
the Treasury interest rates are going up.
Speaker 1 (30:21):
How does that work well with that?
Speaker 5 (30:24):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing, so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts.
That is creating perpetual high inflation. And so now the
(30:46):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting the stock market.
So it's kind of picked your poison, Christy.
Speaker 6 (31:01):
You know.
Speaker 5 (31:01):
So that's why one of the reasons is that you
really need to look at your risk profile this year
if you're close to retiring. We're not saying a horrible
market crash is coming, Bud. All the analysts feel like
twenty twenty five could have a lot of bumps along
the way.
Speaker 4 (31:15):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently. You know,
it's crazy to me, Mark, because people will come into
the office as they were looking for a second opinion,
which we highly encourage. I ask them to see their
(31:37):
written retirement plan. Maybe they retired three years ago. They
give me their investment statement and they say, this is
all I have.
Speaker 7 (31:45):
The thing is is that.
Speaker 4 (31:47):
You know, when you're building a long term retirement plan,
you need a written plan. And while we've been very
blessed with great markets, anyone who retired in the last
five years really hasn't had to worry because things have
been okay. It's when you get into a situation like
in two thousand and seven eight, like my dad went
(32:10):
into and his wasn't in that time period. My dad
actually experienced that in two thousand that things go well,
they go wrong, and you owe it to yourself to
look and be proactive versus reactive. So I would highly
encourage any of you that retired in the last five
years to just get a retirement checkup, a you know,
(32:33):
find out how much risk do you have in your portfolio?
Do you have a diversified tax plan, Do you have
a plan that protects you for higher levels of inflation
long term? In retirement now is actually the perfect time
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
(32:53):
with me when I say that nothing brings me more
joy than to be able to tell someone I think
you're good.
Speaker 5 (33:01):
Oh, I totally agree. Right track, and let me tell
you folks, to put you all at ease. I would
say that probably seventy percent of the people slash couples
that walk in and say our plan is to retire
in three years or two years, oftentimes we're able after
we do the homework and dig into things to say,
you know, if you wanted to retire now, you really could,
(33:24):
And they're quiet for a minute and they're like, are
you serious. Well, yes, based on your present investments now
we would have to build a plan to make sure
that we have a stable income, that we've reduced the risk.
But you know, we've done this long enough that it's
not just about the number of dollars you have. Please
don't make that mistake as you head into retirement. The
(33:45):
key is not your rate of return, it's your range
of return. So if you're greedy and you're all focused
on well, the market was up twenty percent and I
made twenty two. Let's fine if you're working and planning
to work a while, but if you're closing in on retirement,
you want to make sure that your range of return
is in a smaller range.
Speaker 3 (34:06):
What do I mean by that?
Speaker 5 (34:07):
When things are going good and you can capture say
three quarters of the upside of the market, great, Why
Because you don't want to get clocked when things are bad.
You want to mitigate the risk on the downside to
give you a higher degree of success in retirement. Range
of return as you approach retirement and first get into
retirement is so much more important than rate of return.
(34:31):
Let's talk about that more seven nine one five seven
seven three.
Speaker 3 (34:35):
It's what we do every day.
Speaker 5 (34:36):
We're retirement planners and we focus on a five part
holistic retirement plan. Sources of income, medical and medicare, advanced planning,
risk planning, and tax planning. Reach out to us at
seven nine to one, five seven seven three, or you
can set up a phone call online at meetwith usnow
(34:57):
dot com.
Speaker 6 (34:57):
Back on their final segment with Christian Matt right here
on Your Money Matters Right after this.
Speaker 8 (35:03):
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
twelve fifty two.
Speaker 9 (35:21):
Stop for a moment, think about this.
Speaker 5 (35:23):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 4 (35:28):
All?
Speaker 9 (35:28):
Will the government take a bigger chunk than you thought?
Speaker 5 (35:30):
Remember you still may owe taxes on that money, but
do you have a plan to help make sure you
don't pay more than you should? At Presley Wealth Management,
we believe you deserve to keep more of what you've earned,
which is why we're here to help you navigate the
confusing world of retirement taxes. It's your money, you deserve
to know what's at stake. Right now, taxes are historically low,
(35:51):
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 nine one five
seven seven three.
Speaker 8 (36:06):
Investment advisory services offer through a wealth management LLC, 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. You're listening to
your Money Matters with Christy Smith and Matt Kennedy to
(36:28):
set up your fifteen minute meeting with the Presley Wealth
Management team called eight six six three nine ozho twelve
fifty two.
Speaker 6 (36:37):
Bendy with us today for your money Matters with Christy
Smith and Matt Kennedy.
Speaker 1 (36:40):
Matt Kennedy going to.
Speaker 6 (36:41):
Bring us home today by himself, which is not a
problem for the old radio man himself. Christy, Matt and
the team at Presley wealthare here to help. It's two
two five seven nine one fifty seven seventy three. But
it might be easy to remember meet with us now
dot com and you just set your own time to
have a conversation with the team. Meet with us now
dot com. We're going to finish up today with a
little mail bag segment. So these are questions have come
(37:03):
in from maybe an email or an event that Christy
and Matt held and somebody had a question, or even
clients to come in and they go, ah, that's a
pretty good question. We got to use that on the
radio show. I always say this. So a first question,
for example, is from Bill and Baton Rouge. Bill, if
you really want the complete answer, I think it's easier
to talk with the team at Presley Wealth so they
can ask you follow up questions, and then you can
(37:24):
ask them follow up questions. We can really dig a
little bit deeper. So you do have that opportunity. All right, Matt,
here you go. First question, Bill and Baton Ruge says this, Matt,
I've been retired for about two years, and I'm honestly
ready for something different. I'm thinking about part time work
to help give me and my retirement accounts a little
bit of a break, but would cause any issues with
my Social Security?
Speaker 3 (37:44):
Oh, we hear this one all the time. So here's
the deal.
Speaker 5 (37:47):
If you're under your full retirement age, Bill, you didn't
say how old you were, but Bill, let's assume that
your full retirement age is sixty seven and you're sixty
five and you've decided I'm going to go work some
There is what we can call an earnings test for
Social Security. So if you are under your full retirement age,
(38:07):
assuming your retirement age is sixty seven, then at age
sixty five, you're only allowed to make around twenty three
thousand dollars a year. I'm giving round numbers because it
varies year to year. So if I want to be
real clear, Mark, people get really confused by this. When
we say earnings, we're talking about earnings from a ten
(38:28):
ninety nine or a W two form. I'm not talking
about rental income. I'm not talking about money you pull
out of your retirement savings iras or four to h
one k's. I'm not talking about a pension. That's all
called passive income. That's not earnings. But Bill, if you're
going to work and you're going to make let's just
say you're going to make forty eight thousand dollars a year,
(38:48):
but you're limited to around twenty three thousand, how would
that affect your Social Security?
Speaker 3 (38:53):
Well, social Security.
Speaker 5 (38:55):
Will begin deducting a dollar in Social Security for every
two dollars you make over that limit. Again, the limits
around twenty three thousand, So if you're making double that,
you're giving a lot of your Social Security back. People
often ask, okay, but do I get it back? Well,
you'd like to think that when you hit your full
retirement age, they gave you a big, fat lump sum
(39:16):
check right, No, market doesn't work that way. What they
do is they basically pro rate the amount they took
out and they pay you back over a fourteen year period.
So make sure you're going to live a long time, Bill,
and you'll get your money back. Now, there's one little
nuance to the law. Whenever you reach the year of
your full retirement. Bill, Let's say your birthday is in August.
(39:38):
You'll be sixty seven years old in August of two
thousand and twenty seven. Let's say in that year you
can make closer to sixty grand. It's a strange setup,
but be very careful and check with Social Security or
your CPA before you make a decision. Be careful, Old Bill.
Working while you're drawing your benefit can long term hurt you.
Speaker 1 (40:00):
Man, I could cause your taxes as well.
Speaker 3 (40:01):
I suppose you're so scurity, Yeah, I absolutely could.
Speaker 1 (40:04):
Yeah. So there's a lot of movie parts. Bill.
Speaker 6 (40:05):
This is a great opportunity I think for anybody asked
questions about SOB security asked Matt in the team two
two five seven nine to one fifty seven seventy three.
Next question comes from Jason. Jason is from Zachary Matt
and he says this, The idea of a big market
drop makes me really uncomfortable. Now that I'm within a
few years of retirement, how might I start repositioning my assets?
Speaker 1 (40:26):
And should I do so?
Speaker 3 (40:28):
Oh, that's always the tough one, Jason.
Speaker 5 (40:31):
You have to be very cognizant of something called sequence
of returns. The reason I said it's the tough one
is because some years as you head into retirement, in
some three to five year periods in the past, had
you left your accounts alone, you would have been fine
because the market was very bullish. However, if you were
preparing to retire, say in two thousand and nine, two
(40:52):
thousand and eight, in two thousand and nine would have
caused you severe harm. The question is do you know
exactly which way the market is going to go? Well,
of course not, no one does. It's those three years
before you retire. Some say the five years, so we'll
say the three to five years before you retire. In
the three to five years after you retire, that can
be so critical. We love to talk about sequence of returns. Listen,
(41:15):
if you retire into a terrible bear market and you
haven't adjusted your portfolio, it can cause you to work
longer or change your lifestyle. Conversely, if you retire into
a massive bull market, that can have a very positive impact.
How do you hedge? That's what we do with our
proprietary smart plan. We look at the sources of income
(41:35):
medical and medicare advance planning, but we also focus on risk.
That's the r and our smart plan, and our goal
is to reduce the range of return marks. So many
people get focused on the rate of return. Wow, my
portfolio is average nine point whatever percent. Great, that's fine
while you're working, but when you get within three to
(41:58):
five years of retiring, you really have to focus on
the range. What do I mean by that? Is it
better to go up forty percent and risk going down
forty percent over the next couple of years, or is
it better to say, you know what, I would be
happy making twenty or twenty five percent if I could
lower my chance of losses. Focus on the sequence of returns,
(42:18):
and your odds of success long term in retirement will
increase dramatically.
Speaker 6 (42:23):
So again, Jason, if you have any questions, you're like, man,
I'd like to figure this out because the markets always
make me a little nervous.
Speaker 1 (42:29):
Closer I get to retirement. Maybe in retirement it's a
different ballgame. I don't know.
Speaker 6 (42:33):
Everybody's situation is unique. Yeah, it's two two, five, seven,
nine to one, fifty seven seventy three.
Speaker 5 (42:38):
Mark, Can I have one more thing? I'm so sorry,
by the way, Jason. One of the things we can
do is we take your portfolio, your four oh one, Kira.
We can actually put it into our proprietary software and
we can model how much a negative sequence of returns
versus a positive sequence would affect your outcome. And so
that's very important as you work with us. One of
(42:59):
the things we can do is actually show you, hey,
if you stay invested the way you are, this is
the potential outcome in a bad or a good market.
We call it stress testing your portfolio. That's part of
the service we offer as part of our smart plan.
Speaker 6 (43:13):
All right, final question. We've got to do two and
a half minutes left, so I'll let you wrap it
all up. Matt, Diana and Matton Ruthe says this, Matt,
I'm really struggling to get organized with my finances. We
have money saved, but I just keep letting all this
paperwork pile up. Could you help me sort through everything
I have, or would I need to get it put
together before I come in to talk to you for
that first time.
Speaker 5 (43:34):
Some people are super organized. You can always tell the
engineers when they walk in the room. They lay out
their you know, their spreadsheet and it's a thing of beauty,
or they crack open the laptop with the XL.
Speaker 3 (43:45):
But listen, Diana.
Speaker 5 (43:46):
If you're not all together and you have shoe boxes
of stuff, that's fine. The most pertinent things are your
most recent statements, your tax return. If you don't have
a budget, we can help you with some software to develop,
and we're able to send you a template that's very
easy to understand as part of the planning process. But no,
don't feel like you have to be an engineer with
(44:07):
a spreadsheet all put together with all the tables perfectly aligned.
We can absolutely help you, But the most important things
are most recent statements. We can help you talk through
some of your budget concerns, but that tax return is
important because that let's us find out what room you
have for potential tax savings and things like that.
Speaker 1 (44:27):
All right, let me whip one more in. Got a
minute least?
Speaker 9 (44:29):
Okay?
Speaker 5 (44:29):
Yeah?
Speaker 6 (44:29):
Sure, Amber in Prayville says Matt, Can you have too
much life insurance?
Speaker 1 (44:33):
I feel like my mom could be overdoing it with
the number of little policies she has.
Speaker 3 (44:37):
I see this all the time.
Speaker 5 (44:38):
You know, somebody knew somebody from grade school, and somebody
from church, and then somebody in their social club, so
they have three different policies and they all just are
kind of there. Yes, you can have too much insurance.
Remember there's two real main purposes for insurance. Number One,
while you're younger in working, if something happens to you,
the insurance is to help pay off a debt, a
(45:00):
home mortgage, or provide for your children because they're not,
you know, of the age of majority. But I find
oftentimes that that insurance that grandma has would have long
ago been better off converted into something that could help
or pay medical expenses. Maybe you could be used for
some kind of long term care. So it's possible that
you can have a lot of little things. We call
(45:22):
it dripping nickels, where little dollars are wasted, So we
can always review that for you as well. Remember you
can reach out to us at seven nine one five
seven seventy three, or reach out to us online at
meetwith usnow dot Com. Meet with usnow dot com. There's
the time remark, We're done, We're out of time.
Speaker 2 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and.
Speaker 1 (45:45):
Or legal device.
Speaker 8 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLC AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all first products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Presley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products, never securities or investments. Insurance guarantees are backed
by the financial strength and claims paying abilities of the
issuing carrier. This radio show is intended for informational purposes only.
(46:32):
It is not intended to be used as a sole
basis for financial decisions, nor should it be construed as
advice designed to meet the particular needs of an individual situation.
The Presley Group is not permitted to offer, and no
statement made during the show shall constitute tax or legal advice.
Our firm is not affiliated with, or endorsed by the
US Government or any governmental agency. The information and opinions
contained herein provided by third parties have been obtained from
(46:53):
sources believed to be reliable, but accuracy and completeness cannot
be guaranteed by the Presley Group.
Speaker 7 (46:58):
This radio show is a paid placement
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