January 30, 2025 • 47 mins
Christy Smith, founder of Presley Wealth Management and Matt Kennedy, investment adviser representative, discuss issues that affect your retirement planning and how you can build a plan to help reduce risk and implement wealth accumulation strategies. Learn more at presleywealthmanagement.com and then, if you would like to have a conversation around your specific situation, set up an appointment online at meetwithusnow.com or by calling (225) 791-5773.
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Episode Transcript
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Speaker 1 (00:00):
When the news is national.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, rough Dane
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana Local serving the greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full pledge retirement plan.
Speaker 2 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters.
Speaker 6 (00:51):
I'm Mark Kelly alongside the team from Presley Wealth Management
that would be the founder, Christy Smith, an investment advisor
representative with the team Matt Kennedy. They're here to get
us some advice and chat to us about retirement. Can
we retire? But they don't know, not till we come
in and see them. They are here to help guide
you if you need that help. The number is two
two five seven nine to one fifty seven seventy three
(01:12):
two two five seven nine one five seven seven three.
You can always go to the website to find out
more about Christy and Matt and the team Presleywealthmanagement dot com.
Presleywealthmanagement dot com. Of course you just want to chat
with them, you have a you know, fifteen to thirty
minute phone call. Can they help you? Meet with us
now dot com. Meet with us now dot com. Christy, Matt, Welcome.
(01:34):
We're gonna talk about I think something is kind of
kind of cool. It's it's kind of the uh, And
it's whether we're growing up. Do we really listen to
our parents and our grandparents for advice or are we just
kind of not that's you guys are too old. You
don't know what you're talking about. Well, now that we're older,
maybe we will listen to advice. Now we're talking about
retirees giving pre retirees some advice.
Speaker 1 (01:55):
So I like that.
Speaker 6 (01:56):
So well, Christy, you guys have done this a long time.
You started your company way back in the day too,
thousand and six. What kind of practical tips you know
for people that are getting ready to retire to you
think the people you've already helped retire might be able
to give them.
Speaker 4 (02:09):
Well, I think the first the first thing that you
can consider is, you know, looking at your finances and
kind of get your financial house in order. We think
about retirement as you know, we're going to retire and
you know, basically sit on the front porch and rock
and retirement in this day and time really doesn't look
like that. I mean, I even think about myself in
(02:30):
that mix. I think about the things that my husband
and I are doing now that you know, we just
didn't think we would be doing at this point in
our life. You know, we spend a lot of time
with our grandchildren. I walked in the office this morning,
I said, hey, I didn't do something this weekend that
I wanted to get done because I spent all weekend
with my grandkids. We need to start looking as we
prepare for retirement, we start looking at how do we
(02:53):
get our financial house in order. And one of the
things to consider is looking at you know your expenses,
you know your debt, do you have current debt. I've
worked with a client for about four years now and
we created his plan and believe it or not. He
actually could have retired four years ago, but he didn't
because he had some college loans that his student loans
(03:15):
he was trying to pay off. He wanted to pay
for his children's education and so they had borrowed money
to help him get through college. But it was important
for him to pay those loans off. And so you know,
that was for him a big deal. And we recently
met and he's retiring in the next three months. So
I say get your financial house in order, and that
means look at your debt, look at your monthly expenses,
(03:37):
and then think about what do you want your retirement
to look like. Are you going to travel a lot,
because if you're going to travel, we need to add
that expense in.
Speaker 7 (03:47):
If you're going to maybe start a new job.
Speaker 4 (03:51):
When I say a job, a lot of times it's
self employed people in this day and time, they think
of doing things that they dreamt of doing for a
lot long time, and they actually do it when they retire.
I have another client that does woodworking, one that does
duck calls, you know, and so often that will take
a little money at the very beginning to get up
(04:12):
and running, and we have to plan for that. And
so I think the first step is is to look
at where you are, what do you want your retirement
days to look like, and then get a plan. I
say a plan is more important than anything because we
can plan for the vacations, we can plan for the
new business, you know, expenses, there's things that we can
(04:33):
build into your plan. And you know, I often talk
about test driving your retirement. We'll talk about that later,
but I think that's even a good thing to do
when considering retirement.
Speaker 6 (04:42):
So if you'd like to sit down with the team
at Presley Wealth Management, figure out where you are on
that road to retirement, maybe get a plan. How cool
i'd be income investment, taxes, healthcare, legacy planning, so security,
medicare decisions. There's a lot of moving parts in retirement.
Christy Matt and the team at Presley wealthare here to help. Again,
it's meet with usnow, dot com, meet with us now,
and you know Matt the I think the challenge for
(05:03):
some is some people really love their job and love
their coworkers, and so they missed the routine, they missed
the camaraderie. It's a different side of life. I guess
when we get to retirement maybe missing the you know,
the challenge and comfort of having a place to go
every day.
Speaker 1 (05:17):
Right.
Speaker 2 (05:17):
Oh, I agree, and Christy, I know you've run into
this a lot, so I've started playing mostly financial planner,
part psychologists or psychio. I guess it would be a
psychologists not psychiatrists, right, although I don't have a degree
in psychology.
Speaker 5 (05:31):
Here's what we tell people.
Speaker 2 (05:32):
Don't be surprised if the first two months of retirement
don't feel like a long, wonderful, well deserved, long overdue vacation. Right,
just oh, it's so awesome. I wake up, my honeydew
list is down to one hundred and thirty seven things.
But don't be surprised, and I say this especially the men.
Don't be surprised if after a couple of months you
don't feel some depression or you don't feel some anxiety
(05:55):
because for so many years, you know, you hung around
a group of people and here's it's the keyword.
Speaker 5 (06:00):
You had purpose.
Speaker 2 (06:02):
You went to the job, you completed a project in
the plant, or you sold some product or whatever the
case was, you had an end result. But retirement doesn't
really have an end result. So be prepared that at
first it feels like vacation. But then you have to
settle in. And I've seen people Christy question their self worth.
Speaker 4 (06:23):
Yeah, and another thing too, is is you got to
understand for most of you, when you retire, it actually
takes a couple of months often to get things all
in order.
Speaker 2 (06:32):
That's the first busy, busy, busy time. So what I
tell people, and what Christie tells people, and what we're
telling you right now is as you settle into retirement,
remember your wife may have had a job, and you
may have had a job. Ladies, you may have stayed home,
he may have worked. Maybe you worked and he stayed
at home. All of a sudden, now you're in each
other's space. Who is this guy that's here. He used
(06:53):
to be gone fifty hours a week, and now it's
ten o'clock in the morning and he's bored and he's
bugging me. Exactly, So you have to man your own
separate identity. That's why your friend likes making duck calls.
It's not about the duck calls.
Speaker 5 (07:06):
He just needs the alone.
Speaker 2 (07:07):
Time, right, And so maintain your separate identity, maintain some friends,
don't give up your social connections. That's so critical to
easing through retirement. Now, Christy mentioned filing for Social Security.
Understand that at Pressly Wealth Management, Yes, we help build
an investment portfolio where we make sure that you know,
we manage risk and create income.
Speaker 5 (07:29):
And all of that.
Speaker 2 (07:30):
But when it comes to Medicare, when it comes to
social Security, we can put.
Speaker 8 (07:35):
You on the right path.
Speaker 2 (07:36):
We can show you how to file your Social Security
without having to sit at the Social Security office for hours.
We can help you shop for Medicare supplement our Medicare
advantage plans. We can walk you through all of that.
That's what we do as part of our full blown
smart retirement plan. Remember our smart plan. That's an acronym S.
(07:57):
What are my sources of income? That's your biggest fear.
You're going to stop getting the pincheck, how do we
replace it? We'll show you sources of income M that
stands for Medicare planning, Hey, advance planning, things like do I.
Speaker 8 (08:11):
Need a will or a trust?
Speaker 2 (08:12):
What do I do about my estate SMA R Oh yeah, Christy,
that's risk making sure that as you're you're into retirement,
you're not taking so much risk that a major market
downturn wipes out your income. And then there's T. It's
probably the most important thing. But because the word is smart,
T goes at the end. What does T stand for?
Speaker 5 (08:33):
Christy?
Speaker 7 (08:34):
Tax Planning?
Speaker 8 (08:35):
Yes, and so many.
Speaker 2 (08:36):
Of you had never thought about taxes. Oh, you think
about it every day, and you think about it every
year when you file your taxes. But you're dealing with
the taxes in the rearview mirror right when you file
your tax return.
Speaker 8 (08:47):
What are you thinking about? Folks?
Speaker 2 (08:48):
You're thinking about, Oh, darn it, I didn't have enough withhell,
I owe the irs two thousand dollars. You're looking in
the rear view mirror. We want to look through the windshield. Hey,
you're sixty five. What's gonna happen when you turn seventy
five and you have to start taking money out of
your iras and you're forced to do it by law
(09:10):
under the required minimum distributions. You can call us up,
we'll talk two two five seven nine one five seven
seven three. That's seven nine one five seven seven three.
Or look, make it easier on yourself. Go to the
web and go to meet with usnow dot com. You'll
find little chunks of fifteen minute time. Pick a time
(09:32):
and for fifteen minutes, we'll chat on the phone. You know,
how close are you to retiring, Are you're already retired,
what are your biggest concerns. We just kind of get
the overall picture. Then we work on a plan and
meet to get you to your ultimate goal, which is
a happy, fulfilled retirement. Seven nine one five seven seven three.
Speaker 6 (09:51):
Hey, Christy, take a minute to talk about retirees giving
pre retirees advice.
Speaker 1 (09:55):
That is, you said, you know, kind of that trial.
Speaker 6 (09:57):
Run boy, don't make the big move I'm going to move,
you know, just make that decision right away. Maybe go
live there first before you make that decision, or the RV.
Maybe rent it before you buy it.
Speaker 8 (10:07):
Yeah.
Speaker 4 (10:08):
Absolutely, So I've said this for years, and you know,
I can remember ten years ago when I said it first,
Matt looked at me kind of crazy. I think that
that sometimes we have this this preconceived notion in our
mind of what retirement's going to look like. And I
think it's really important that if we're if we're truly
going to consider retiring, we live like we're we're retired
(10:29):
before we actually retire. Now, if your biggest goal in
retirement is travel, maybe you're going to just use what
vacation time you have available. But you need to start
looking at your budget. You need to start living within
that budget to make sure that that's really what you
want to do in retirement. I think test driving your
retirement is extremely important. We'd love to help you build
(10:51):
your smart plan. Give us a call at two two
five seven nine one five seven seven three. This is
what we do every day and we'd love to work
with you.
Speaker 6 (11:00):
With us today for your money manage with Christie Smith
and Matt Kennedy Presley Wealth Management. We're just getting started.
A lot more to come right after this. Stay with us.
Speaker 9 (11:08):
Be smart when it comes to your retirement. Presley Wealth
Management has a smart plan to help you better understand
the process. Set up your no consultation appointment to get
your smart planning in place. Call eight sixty six three
nine oh twelve fifty two. That's eight sixty six three
nine oh twelve fifty two.
Speaker 2 (11:29):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money? A will the government take
a bigger chunk than you thought? Remember you still may
owe taxes on that money. But do you have a
plan to help make sure you don't pay more than
you should. At Presley Wealth Management, we believe you deserve
to keep more of what you've earned, which is why
(11:49):
we're here to help you navigate the confusing world of
retirement taxes.
Speaker 8 (11:53):
It's your money. You deserve to know what's at stake.
Speaker 2 (11:55):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, we'll
work just as hard to help you keep it. Pressley
Wealth Management seven nine one five seven seven three.
Speaker 9 (12:13):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. You're listening to
your Money Matters with Christy Smith and Matt Kennedy. To
(12:34):
set up your fifteen minute meeting with the Presley Wealth
Management team, call eight six six three nine ZHO twelve
fifty two.
Speaker 6 (12:43):
Welcome back to your Money Matters with Christy Smith and
Matt Kennedy of Presley Wealth management Again, if you have
questions about where you are on that road to retirement.
Maybe you already retired, you got some questions. Maybe you're
five years out from retirement, you got some questions. Maybe
you're retiring this year. 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're retire two two five, seven
nine to one fifty seven seventy three. No cost to
(13:04):
chat with the team. They are here to help if
they can. Seven nine to one fifty seven seventy three.
And of course you can always go to meet with
us now dot COM's just set up a fifteen minute
phone call. Hey, here's a couple of 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
(13:26):
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 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
(13:46):
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 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 four
Families ends December thirty first of twenty twenty five. So
we're kind of in that kind of time period where
(14:07):
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 (14:12):
Where are you on this.
Speaker 6 (14:13):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 4 (14:19):
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,
(14:42):
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
(15:04):
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
(15:28):
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.
Speaker 7 (15:38):
If we're lucky, we'll get another four years of that.
But who knows, None of us know. We don't have
a crystal ball.
Speaker 4 (15:44):
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize those taxes in retirement. And many people
have already caught on to the wroth ira, you know,
contribute to a wroth even inside of a four oh
(16:05):
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. We'd love to
help you with that, 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
(16:26):
of our younger clients may consider like an index universal
life contract and at some point when they retire, take
money out of it tax free to live on in retirement.
So there's other strategies available that we can use besides
just wroth planning. And that's what we do at Presley
Wealth Management. We look at the long term effect of taxes,
(16:48):
you know, using today's tax code and try to develop
a better path moving forward.
Speaker 7 (16:54):
And we want to be your resource.
Speaker 4 (16:56):
So we'd love to have that conversation with you, and
it's a very simple conversation. What are you doing now
or are there things you can do differently. 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
(17:18):
love to help.
Speaker 6 (17:18):
You with two two five seven nine to one fifty
seven seventy three to chat with the team at Presley
Wealth Management. There's no cost for this two two five
seven nine to one fifty seven seventy three. Of course,
you can always go to meet with us now dot
com and Matt with our country over thirty six trillion
dollars in debt as a nation at the end of
the day, though.
Speaker 1 (17:37):
They cannot tax their way out of this.
Speaker 6 (17:39):
So I mean Trump's tax cuts that he wants to
keep in place are very interesting because you also have
the doge I guess with Elon and Vivek right, and
they save money. I don't know, I mean, because you
can't tax your way out of thirty six trillion dollars
in debt. And Trump has taken the corporate taxes and
that twenty seventeen Tax Cuts and Jobs Act from thirty
five down to twenty one He's even talked about taking
(18:01):
that for the corporations down to fifteen, which I guess that.
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 2 (18:14):
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,
but I know the yeah butt. But at the end
of the day, the core of what happened was taxes
went down, economic growth accelerated. That will probably be the
Trump Doze plan. Here's the thing. I don't know that
(18:35):
they can get us out of this. I don't know
what they'll do. But the headline of this segment is
tackling the twin threats of taxes and inflation. Folks don't
forget they're joined hand in hand. Let me explain. So
Let's say inflation continues to run high and you just retire,
and now because of inflation, your expenses are more. Let's
(18:58):
say you're going to plan to retire in five years,
and inflation hasn't gotten under control. It's not tamed, it
hasn't cooled off.
Speaker 1 (19:06):
Well.
Speaker 2 (19:06):
When you're pulling money from pre tax dollars, so you
have an IRA worth a million dollars and you're pulling
money out to live on, do you realize you're having
to get double hit A. You're taking more because inflation
makes you take more. And when you take more now
you have to take more than you planned on taking
because you have to pay the higher taxes on what
(19:27):
you did take to make up for the higher inflation.
Speaker 5 (19:30):
Ouch.
Speaker 2 (19:31):
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 5 (19:44):
Does that make sense what I'm trying to say, Christy?
Speaker 2 (19:46):
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 (20:05):
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
(20:28):
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.
(20:50):
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. Yes,
by being able to withdraw money from non taxable buckets
in retirement. So my question to you would be, are
you diversified, diversified in terms of assets asset allocation risk?
(21:15):
Are you diversified in terms of building a tax efficient
long term plan. We'd love to help you at Presley
Wealth Management and this is what we do every day.
Give us a call at chew CHWO five seven nine
one five seven seven three chew CHWO five seven nine
one five seven seven three are go to meet with
(21:36):
us now dot com.
Speaker 6 (21:38):
So and Christy said it, Matt, you know when when taxes,
if the twenty seventy Tax Cuts and Jobs Act does
actually sunset at the end of this year and twenty
twenty six, we go back to the seventeen rates of brackets,
your taxes are going up twenty to thirty percent.
Speaker 1 (21:52):
That's just correct. That's kind of the way it is
right now.
Speaker 2 (21:54):
I don't I don't see that happening, not with Trump
in office, but he could never say never, right.
Speaker 6 (21:59):
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.
Speaker 1 (22:10):
But the corporate tax, it's kind of an interesting thing.
Speaker 6 (22:13):
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 (22:20):
I guess that's kind.
Speaker 6 (22:21):
Of the theory by lowering this corporate taxes from twenty
one to fifteen. If he could do that, because the
corporate tax cut back was permanent, there is no I mean,
it's not going to go back up right.
Speaker 2 (22:32):
Well, let me add on the national scene, let me
bring it home to the state scene. In the very
first segment, we talked a bit about how social security
and the windfall and government pension officet has been changed,
and of course that has a huge impact in Louisiana.
I do not want to miss this. Governor Jeff Landry
and the state administration here have radically changed the corporate
(22:54):
and state tax for Louisiana. I believe 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 the standard state tax deduction.
Speaker 5 (23:09):
It was forty five hundred bucks a person. They've tripled that.
Speaker 2 (23:12):
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
(23:33):
state has raised the state sales tax from four percent
to five percent. That's to kind of help the transition.
So if you're paying state taxes, know that this year
is going to be a good year for you because
you have a about a one point twenty five percent
lower payment and a higher deduction.
Speaker 6 (23:51):
Huge So when we come back, Christian matter going to
tack a little bit about the inflation situation more with
Christian Matt right here on your money matters.
Speaker 8 (23:59):
Right after this, stop for a moment think about this.
Speaker 2 (24:03):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 4 (24:08):
All?
Speaker 5 (24:08):
Will the government take a bigger chunk than you thought?
Speaker 8 (24:10):
Remember, you still may.
Speaker 2 (24:12):
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, but they
won't be this low forever.
Speaker 5 (24:32):
So call us at seven nine one five seven seven three.
That's seven nine one five seven seven three.
Speaker 2 (24:38):
Look, you work hard for your money, will work just
as hard to help you keep it.
Speaker 5 (24:42):
Presley Wealth Management seven nine to one five seven seven.
Speaker 9 (24:45):
Three Investment advisory services offer through a wealth management LLC, a.
Speaker 7 (24:49):
Registered investment advisor.
Speaker 9 (24:51):
Investing involves risk. Always consult with a qualified tax advisor
before making any decisions regarding your ROTH conversion, as there
may be additional tax considerations.
Speaker 5 (25:00):
If you aren't able to listen.
Speaker 9 (25:01):
To this show in its entirety, go to Presleywealthmanagement dot
com to listen to this.
Speaker 7 (25:07):
And past radio shows.
Speaker 9 (25:08):
Otherwise, stick around to find out how Presley Wealth Management
will help you retire with confidence.
Speaker 6 (25:15):
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 going to
be okay? Well? Our money last two two five, seven
nine one fifty seven seventy three if you'd like to
(25:35):
have a conversation, because there's a lot going on. Every
year things change, whether it's the national government, the local government,
just a lot going on. And of course Christian Mat've
already talked about the windfall thing for social security. Big
for those firemen, police teachers. You might be able to
get some sob Security call the team find out seven
nine to one, fifty seven to seventy three, and you
(25:55):
can always go to meet with usnow dot com.
Speaker 1 (25:58):
I'm Mark Kelly. We're talking about the challenges really of taxes.
Speaker 6 (26:01):
We touched on that and certainly this is a big
year for that because of twenty seventeen Tax Cuts and
Jobs Act that Trump put into place back in his
first term. He's going to try to extend it actually
expires for families and individuals at the end of this year.
The corporate TAXI went from thirty five to twenty one.
That was no end date in that one, but for
us there is an indate, so we'll see how that
(26:23):
all plays out. Certainly, but when it comes to inflation, Matt,
I'm gonna ask you a question, how much do you
think thirty years ago, nineteen ninety five, how much was
a new transmission in a car.
Speaker 5 (26:33):
Oh, lord, nineteen ninety five, seven.
Speaker 6 (26:35):
Hundred dollars, okay, just making sense. That's a good guess, though,
that's a really good guess. But it actually was. Back
in nineteen ninety five, the average transmission was twenty five hundred, depending.
Speaker 1 (26:45):
On the make of the model of the car, fifteen
to thirty five.
Speaker 8 (26:48):
Seven hundred.
Speaker 6 (26:48):
Yeah, you can tell I don't work on my yeah, yeah, exactly.
But maybe a rebuilt transmission, maybe it would be seven hundred. No,
I like your guests though, but it was twenty nine.
Speaker 2 (26:56):
We had out in Irwinville, boy, rebuilt transmission.
Speaker 6 (26:59):
And bring that up is my daughter's transmission went out
and now she has hand controls because of her car
wreck as a senior in high school. So she's, you know,
hand controlling. And I wonder if that affected transmission. Because
it was only a fifty thousand miles car twenty eighteen,
it should not be out. But it is just so
you know, that transmission now costs six thousand dollars. Wow,
So is that inflation? That's inflation, isn't it.
Speaker 1 (27:22):
Well?
Speaker 2 (27:22):
I just googled by the way it says on average,
replacing a car transmission cost between four and seven thousand dollars.
Speaker 5 (27:27):
Holy cow, that's inflation.
Speaker 1 (27:30):
That is your relation, and so you think about it.
Speaker 6 (27:32):
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 7 (27:53):
Well, it really wasn't.
Speaker 4 (27:54):
And we've built our plans for our clients to combat inflation,
even though we haven't seen high inflation until recently. It
is really important that when you're looking at your long
term plan that you've actually planned for inflation, because if
you don't plan for inflation in ten years from now,
(28:15):
your lifestyle is going to be a lot you're going
to be doing a lot less than what you're doing now.
So you need to build a overall plan that is
going to take into consideration inflation. And to do that,
what we're going to use is we're going to build
strategies that are going to highly diversify the income. We're
going to take into consideration the cola for social security benefits. Now,
(28:37):
keep in mind the cola increase the last couple of
years because of the level of inflation has been higher,
but this year we're seeing a lower cola. It's really
important that you build a long term plan that includes
inflation protection, and we're going to do that in building
(28:58):
your smart plan.
Speaker 7 (28:59):
At Presley Wealth Management.
Speaker 6 (29:01):
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 2 (29:07):
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. 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,
(29:28):
and President Trump was elected. The market popped immediately, but
we're seeing some cracks in the market, and the primary
reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 1 (29:51):
Hey, explain this to me, because it's an confusing thing
to me. Is that?
Speaker 6 (29:54):
Okay, the FED, Federal Reserve Chair Jerome Powell, they've been
fighting inflation, right. They rose the interest rate levels during
that twenty twenty two time period. In twenty twenty three,
and then last year they were going to lower them
like five or six times, they didn't. They did it
twice I think, at like a quarter percent. 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
(30:17):
interest rates are going up.
Speaker 1 (30:18):
How does that work well with that?
Speaker 2 (30:21):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts.
That is creating perpetual high inflation. And so now the
(30:43):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting the stock market,
so it's kind of picked your poison, Christy, you know.
So that's why one of the reasons is that you
really need to look at your risk profile this year
(31:03):
if you're close to retiring.
Speaker 5 (31:04):
We're not saying a horrible market crash is coming, Bud.
Speaker 2 (31:08):
All the analysts feel like twenty twenty five could have
a lot of bumps along the way.
Speaker 4 (31:12):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently.
Speaker 3 (31:24):
You know.
Speaker 4 (31:25):
It's crazy to me, Mark, because people will come into
the office as they're looking for a second opinion, which
we highly encourage. I ask them to see their written
retirement plan. Maybe they retired three years ago. They give
me their investment statement and they say, this is all
I have.
Speaker 7 (31:41):
The thing is is.
Speaker 4 (31:42):
That 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
(32:03):
in two thousand and seven eight like my dad went
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
(32:23):
encourage any of you that retired in the last five
years to just get a retirement checkup eight. You know,
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
(32:45):
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
with me when I say that nothing brings me more
joy than to be able to tell someone I think
you're good.
Speaker 2 (32:57):
Oh, totally the right track. I 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
(33:17):
you wanted to retire now you really could.
Speaker 5 (33:21):
And they're quiet for a minute and they're like, are
you serious.
Speaker 2 (33:24):
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 key
is not your rate of return, it's your range of return.
(33:46):
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 find 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 5 (34:02):
What do I mean by that?
Speaker 2 (34:03):
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.
(34:26):
Let's talk about that more seven nine one five seven
seven three.
Speaker 5 (34:31):
It's what we do every day.
Speaker 2 (34:32):
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 one five seven seven three, or you can
set up a phone call online at meetwith usnow dot com.
Speaker 6 (34:53):
Back on their final segment with Christian Matt right here
on Your Money Matters right after this.
Speaker 9 (35:00):
If this is a year you've resolved to finally get
your finances in order, Christy Smith and her team can help.
Give them a call today at eight sixty six three
nine oh twelve fifty two. That's eight six six three
nine oh twelve fifty two.
Speaker 8 (35:16):
Stop for a moment, think about this.
Speaker 2 (35:18):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought.
Speaker 8 (35:26):
Remember, you still may.
Speaker 2 (35:27):
Owe taxes on that money. But do you have a
plan to help make sure you don't pay more than
you should? At Presley Wealth Management, we believe you deserve
to keep more of what you've earned, which is why
we're here to help you navigate the confusing world of
retirement taxes.
Speaker 8 (35:41):
It's your money. You deserve to know what's at stake.
Speaker 2 (35:44):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, We'll
work just as hard to help you keep it. Presley
Wealth Management seven seven seven three.
Speaker 9 (36:02):
Investment advisory services offer through AE 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. Christy Smith of
Presley Wealth Management wants to advocate for you, making sure
(36:23):
you have the retirement you have always wanted. Call eight
sixty six three nine oh twelve fifty two and make
sure Presley Wealth is the right fit for you. You
won't know until you call eight sixty six three nine
oh twelve fifty two.
Speaker 1 (36:40):
Welcome back to.
Speaker 6 (36:40):
Your money matters with Christy Smith and Met Kennedy of
Presley Wealth Management.
Speaker 1 (36:43):
I'm Mark Elliott again.
Speaker 6 (36:44):
You can always go to meet with usnow dot com
set up a time to have a conversation with him.
You've got questions about taxes, about social security, whatever it is.
Can we retire? Do we have enough? Are we going
to be okay? Meet with usnow dot com. I'm Mark Elliot,
Glad you're with us. We're gonna finish up today's show
with mail bag segment. So these are questions that have
come from people that attended events that Christian Matt put on,
people that send in questions, people that just have questions
(37:07):
and they're like, man, that was a good question. We
got to use that on a radio show. But that
being said, the first question comes from Jin and Jin
I would say, if you really want to find the
complete answer from Christian Matt, you need to have a
conversation so they can ask you follow up questions. They
can dig a little deeper, you can ask them follow
up questions, but they always do their best with the
questions here and the information they have. It's two two
five seven nine to one fifty seven seventy three to
(37:29):
have a conversation two two five seven nine to one
fifty seven seventy three.
Speaker 1 (37:34):
Christy.
Speaker 6 (37:34):
This first question comes from Jen Jen's from Denim Springs,
and I thought this was interesting because we're hearing more
and more about this every time Trump wins. People are leaving,
They're going abroad. I'm leaving the States. I gotta go
somewhere else. So it's just kind of crazy. But there
are some positives going overseas, I suppose. But here's the question.
Christy Jen says, my husband and I will retire around
the same time we are considering moving abroad. How might
(37:57):
that impact our savings and pensions? Which is a good
example of how you need a lot more information to
give her a complete answer. But what's your take on
somebody that wants to move abroad. There's a lot of
questions I would think, Well, I'm.
Speaker 7 (38:08):
Sure there are.
Speaker 4 (38:09):
For me, one of the biggest questions would be taxes.
You know, you really want to look at how that's
going to affect your tax situation, because living abroad can
well you're going to face unique tax situations or challenges
that people living in the United States may not face.
The next consideration for me would be medical You know,
(38:30):
are you relying on our Medicare system for your health
benefits in retirement and how will that be affected if
you're living abroad, there's a lot of things to consider
for me. The biggest though, would be taxes in healthcare.
Speaker 6 (38:44):
Healthcare is a huge one I would think of. Yes,
there are certainly countries that are great have great health care.
But it is interesting if you're moving. I guess it
would be in a way christy, like if you were
moving from Louisiana to Kentucky. There are different rules, different
laws in Kentucky than there are Louisiana.
Speaker 4 (38:58):
Well, you probably wouldn't even want to consider your estate
plan and like how living abroad, how your estate plan
could be affected by living abroad. You know, there's a
lot of things that you want to consider. There's no
easy answer to that, and we'd love to meet with
you and discuss it with you in person. Again, you're
more than welcome to give us a call at seven
nine one five seven seventy three and schedule a fifteen
(39:19):
minute phone call.
Speaker 6 (39:20):
Is there any chance you could explain this windfall social
security stuff more because you were going into it earlier
and it's a big big deal that I think it's
for teachers, firemen, policeman, that kind of stuff, and it's
maybe more for spouse.
Speaker 1 (39:32):
I don't know. Can you sure a little bit about that?
Speaker 2 (39:35):
Let's break it down. So madeor law change. January first,
twenty twenty five, the Social Security Fairness Act has been
signed into law. It hasn't gotten a tremendous amount of
discussion in the news, but it is probably one of
the top five largest law changes for your finances in
the last forty years.
Speaker 4 (39:54):
Well, Matt, just to make this clear, in my opinion,
the reason it hasn't gotten this much publicity in the
laws because it doesn't impact people living in all states.
Speaker 2 (40:05):
Correct, It only impacts people in a handful of states.
But Louisiana happens to be one of those states that's
highly impacted.
Speaker 5 (40:12):
So here's the way it works.
Speaker 2 (40:14):
Let's say that you spent ten years working at a
job and you paid into Social Security. Maybe your benefit
was going to be one thousand dollars, but then you
spent the next twenty years in a public sector job.
I'll just use school teacher. You could have been a firefighter,
police officer, but I'll just use school teacher. Well, when
you retired as a school teacher and began taking your
(40:37):
school teacher pension, right your public pension, the formula web
applied Windfall Elimination Provision, and basically it's a formula they
have that would punish you up to around five hundred
and fifty eight dollars a month because you didn't pay
into Social Security all the years that you were teaching.
(40:58):
So the thousand dollars you were going to get might
end up being four hundred and sixty eight bucks. Well,
I always thought that was incredibly unfair. But more unfair
than that was GPO government pension offset. Now there's two
ways that that we would see that impact our clients.
So you worked for ten years in the private sector,
(41:21):
you paid into Social Security. Using simple math, here you
had one thousand dollars a month coming to you. But
your husband, Lady, you were the school teacher. Your husband, Bob,
he had worked on the chemical plant he retired. His
social security is three thousand a month. And you might
have thought, well, they're gonna ding my social security by
up to about, you know, five hundred and fifty eight bucks.
(41:43):
But hey, no problem, I'll just wait and I'll take
half of my husband's social security.
Speaker 4 (41:47):
Ah.
Speaker 2 (41:48):
The Social Security Administration would pull out the calculator and
they would say, oh, okay, so your pension is three
thousand dollars, and the formula for the government pension offset
was we're going to subtract two thirds of your pension.
Let's just round, it's two thousand bucks a month. So
instead of being able to draw half of your husband's
(42:08):
Social Security, which is fifteen hundred, nope, you're punished, and
so you end up only getting a very small portion
of your husband's social Security. Actually you would get none
while he was alive. But then your husband passes away, ma'am,
and if you had never worked in the public sector,
(42:30):
you would receive all of the amount of your husband's
Social Security. That would be your survivor benefit. But the
problem was that same two thirds rule applied, and so
if your husband was getting three thousand and then died,
you would only get one thousand dollars a month. That's
a massive pay cut for someone. The new law changes
(42:53):
that there is no more government pension offset, there is
no more windfall elimination. Hold on, don't jump the gun.
If you retired January first, twenty twenty five or later.
Speaker 5 (43:06):
If you retired four years ago.
Speaker 2 (43:07):
You're not grandfathered in. But if you retired January first,
twenty twenty five or later, this law no longer replies,
and there is a special one time exception if you
retired in twenty twenty four, the government will offer a
lump sum to make up the difference for what you
lost in that one year.
Speaker 5 (43:29):
So it's a big change. It's a massive change.
Speaker 2 (43:32):
I know it's confusing, but and they're still drawing up
the exact timing and all of this at the Social
Security Administration.
Speaker 8 (43:38):
But Mark, we can help.
Speaker 2 (43:39):
Just reach out to us if you're in this situation
and you're very confused, we'll be happy to walk you
through it. Where it's seven nine one five seven seven three.
Now you'll get the machine when you call on the weekend.
Just leave a message and say help social Security. Leave
us your name contact number. We'll get back with you.
It's seven nine to one five seven seven three.
Speaker 6 (43:58):
I think the best thing to do would be call
the team at Presley Wealth Management, figure out all this
how that it does affect you. Seven nine to one
fifty seven seventy three seven nine to one fifty seven
seventy three. And of course you can always go to
meet with us now dot com. All right, final question, chrisy,
I'll give it to you. It comes from Alex Alex
and Baton Rouge. My dad worked at the same job
for thirty years before we retired with a pension, and
(44:19):
it just seems like he's never had to worry much
about money. I've worked for three different companies, but I've
always made sure to contribute to the company four oh
one K with each position. I'm realizing that I should
do something with those different accounts. There's a good amount
in each of them, but I don't know how to
consolidate that money or if that would even be the
best thing for me to do.
Speaker 1 (44:34):
I chould love to enjoy retirement like my dad one day.
Speaker 4 (44:38):
Well, unfortunately, we're seeing pensions go away. We're seeing employers
not offer pension plans, and even those that did are
actually buying pension plans out. So what we're having to
do is we're having to build our own retirement income
and our own retirement plans. You may consider rolling those
four oh one ks from different employers and your current
(45:00):
for a one K. You may consider building your own
I RAY, starting your own personal plan, building your own
pension plan. You have a lot of options available to you,
and that's where we would love to help and work
on building you a smart holistic plan. Give us a
call at two two five seven nine one five seven
seventy three and we'd love to help you build that plan.
(45:23):
Will help you explore your options and determine what would
be the very best step for you to take in
building your own plan. You can also go to meet
with usnow dot com and schedule a fifteen minute phone call.
We'd love to work with you. It's January, Now's the
time to make changes.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 9 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLCAEWM, a registered investment advisor. Insurance products are offered
through the insurance business the Presley Group. Presley Wealth Management
is an investment advisory practice as it offers products and
services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the 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
When the news is national.
Speaker 2 (00:01):
SOB, security system molatility, global turmoil, interest rates, rough Dane
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana Local serving the greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 4 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full pledge retirement plan.
Speaker 2 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters.
Speaker 6 (00:51):
I'm Mark Kelly alongside the team from Presley Wealth Management
that would be the founder, Christy Smith, an investment advisor
representative with the team Matt Kennedy. They're here to get
us some advice and chat to us about retirement. Can
we retire? But they don't know, not till we come
in and see them. They are here to help guide
you if you need that help. The number is two
two five seven nine to one fifty seven seventy three
(01:12):
two two five seven nine one five seven seven three.
You can always go to the website to find out
more about Christy and Matt and the team Presleywealthmanagement dot com.
Presleywealthmanagement dot com. Of course you just want to chat
with them, you have a you know, fifteen to thirty
minute phone call. Can they help you? Meet with us
now dot com. Meet with us now dot com. Christy, Matt, Welcome.
(01:34):
We're gonna talk about I think something is kind of
kind of cool. It's it's kind of the uh, And
it's whether we're growing up. Do we really listen to
our parents and our grandparents for advice or are we just
kind of not that's you guys are too old. You
don't know what you're talking about. Well, now that we're older,
maybe we will listen to advice. Now we're talking about
retirees giving pre retirees some advice.
Speaker 1 (01:55):
So I like that.
Speaker 6 (01:56):
So well, Christy, you guys have done this a long time.
You started your company way back in the day too,
thousand and six. What kind of practical tips you know
for people that are getting ready to retire to you
think the people you've already helped retire might be able
to give them.
Speaker 4 (02:09):
Well, I think the first the first thing that you
can consider is, you know, looking at your finances and
kind of get your financial house in order. We think
about retirement as you know, we're going to retire and
you know, basically sit on the front porch and rock
and retirement in this day and time really doesn't look
like that. I mean, I even think about myself in
(02:30):
that mix. I think about the things that my husband
and I are doing now that you know, we just
didn't think we would be doing at this point in
our life. You know, we spend a lot of time
with our grandchildren. I walked in the office this morning,
I said, hey, I didn't do something this weekend that
I wanted to get done because I spent all weekend
with my grandkids. We need to start looking as we
prepare for retirement, we start looking at how do we
(02:53):
get our financial house in order. And one of the
things to consider is looking at you know your expenses,
you know your debt, do you have current debt. I've
worked with a client for about four years now and
we created his plan and believe it or not. He
actually could have retired four years ago, but he didn't
because he had some college loans that his student loans
(03:15):
he was trying to pay off. He wanted to pay
for his children's education and so they had borrowed money
to help him get through college. But it was important
for him to pay those loans off. And so you know,
that was for him a big deal. And we recently
met and he's retiring in the next three months. So
I say get your financial house in order, and that
means look at your debt, look at your monthly expenses,
(03:37):
and then think about what do you want your retirement
to look like. Are you going to travel a lot,
because if you're going to travel, we need to add
that expense in.
Speaker 7 (03:47):
If you're going to maybe start a new job.
Speaker 4 (03:51):
When I say a job, a lot of times it's
self employed people in this day and time, they think
of doing things that they dreamt of doing for a
lot long time, and they actually do it when they retire.
I have another client that does woodworking, one that does
duck calls, you know, and so often that will take
a little money at the very beginning to get up
(04:12):
and running, and we have to plan for that. And
so I think the first step is is to look
at where you are, what do you want your retirement
days to look like, and then get a plan. I
say a plan is more important than anything because we
can plan for the vacations, we can plan for the
new business, you know, expenses, there's things that we can
(04:33):
build into your plan. And you know, I often talk
about test driving your retirement. We'll talk about that later,
but I think that's even a good thing to do
when considering retirement.
Speaker 6 (04:42):
So if you'd like to sit down with the team
at Presley Wealth Management, figure out where you are on
that road to retirement, maybe get a plan. How cool
i'd be income investment, taxes, healthcare, legacy planning, so security,
medicare decisions. There's a lot of moving parts in retirement.
Christy Matt and the team at Presley wealthare here to help. Again,
it's meet with usnow, dot com, meet with us now,
and you know Matt the I think the challenge for
(05:03):
some is some people really love their job and love
their coworkers, and so they missed the routine, they missed
the camaraderie. It's a different side of life. I guess
when we get to retirement maybe missing the you know,
the challenge and comfort of having a place to go
every day.
Speaker 1 (05:17):
Right.
Speaker 2 (05:17):
Oh, I agree, and Christy, I know you've run into
this a lot, so I've started playing mostly financial planner,
part psychologists or psychio. I guess it would be a
psychologists not psychiatrists, right, although I don't have a degree
in psychology.
Speaker 5 (05:31):
Here's what we tell people.
Speaker 2 (05:32):
Don't be surprised if the first two months of retirement
don't feel like a long, wonderful, well deserved, long overdue vacation. Right,
just oh, it's so awesome. I wake up, my honeydew
list is down to one hundred and thirty seven things.
But don't be surprised, and I say this especially the men.
Don't be surprised if after a couple of months you
don't feel some depression or you don't feel some anxiety
(05:55):
because for so many years, you know, you hung around
a group of people and here's it's the keyword.
Speaker 5 (06:00):
You had purpose.
Speaker 2 (06:02):
You went to the job, you completed a project in
the plant, or you sold some product or whatever the
case was, you had an end result. But retirement doesn't
really have an end result. So be prepared that at
first it feels like vacation. But then you have to
settle in. And I've seen people Christy question their self worth.
Speaker 4 (06:23):
Yeah, and another thing too, is is you got to
understand for most of you, when you retire, it actually
takes a couple of months often to get things all
in order.
Speaker 2 (06:32):
That's the first busy, busy, busy time. So what I
tell people, and what Christie tells people, and what we're
telling you right now is as you settle into retirement,
remember your wife may have had a job, and you
may have had a job. Ladies, you may have stayed home,
he may have worked. Maybe you worked and he stayed
at home. All of a sudden, now you're in each
other's space. Who is this guy that's here. He used
(06:53):
to be gone fifty hours a week, and now it's
ten o'clock in the morning and he's bored and he's
bugging me. Exactly, So you have to man your own
separate identity. That's why your friend likes making duck calls.
It's not about the duck calls.
Speaker 5 (07:06):
He just needs the alone.
Speaker 2 (07:07):
Time, right, And so maintain your separate identity, maintain some friends,
don't give up your social connections. That's so critical to
easing through retirement. Now, Christy mentioned filing for Social Security.
Understand that at Pressly Wealth Management, Yes, we help build
an investment portfolio where we make sure that you know,
we manage risk and create income.
Speaker 5 (07:29):
And all of that.
Speaker 2 (07:30):
But when it comes to Medicare, when it comes to
social Security, we can put.
Speaker 8 (07:35):
You on the right path.
Speaker 2 (07:36):
We can show you how to file your Social Security
without having to sit at the Social Security office for hours.
We can help you shop for Medicare supplement our Medicare
advantage plans. We can walk you through all of that.
That's what we do as part of our full blown
smart retirement plan. Remember our smart plan. That's an acronym S.
(07:57):
What are my sources of income? That's your biggest fear.
You're going to stop getting the pincheck, how do we
replace it? We'll show you sources of income M that
stands for Medicare planning, Hey, advance planning, things like do I.
Speaker 8 (08:11):
Need a will or a trust?
Speaker 2 (08:12):
What do I do about my estate SMA R Oh yeah, Christy,
that's risk making sure that as you're you're into retirement,
you're not taking so much risk that a major market
downturn wipes out your income. And then there's T. It's
probably the most important thing. But because the word is smart,
T goes at the end. What does T stand for?
Speaker 5 (08:33):
Christy?
Speaker 7 (08:34):
Tax Planning?
Speaker 8 (08:35):
Yes, and so many.
Speaker 2 (08:36):
Of you had never thought about taxes. Oh, you think
about it every day, and you think about it every
year when you file your taxes. But you're dealing with
the taxes in the rearview mirror right when you file
your tax return.
Speaker 8 (08:47):
What are you thinking about? Folks?
Speaker 2 (08:48):
You're thinking about, Oh, darn it, I didn't have enough withhell,
I owe the irs two thousand dollars. You're looking in
the rear view mirror. We want to look through the windshield. Hey,
you're sixty five. What's gonna happen when you turn seventy
five and you have to start taking money out of
your iras and you're forced to do it by law
(09:10):
under the required minimum distributions. You can call us up,
we'll talk two two five seven nine one five seven
seven three. That's seven nine one five seven seven three.
Or look, make it easier on yourself. Go to the
web and go to meet with usnow dot com. You'll
find little chunks of fifteen minute time. Pick a time
(09:32):
and for fifteen minutes, we'll chat on the phone. You know,
how close are you to retiring, Are you're already retired,
what are your biggest concerns. We just kind of get
the overall picture. Then we work on a plan and
meet to get you to your ultimate goal, which is
a happy, fulfilled retirement. Seven nine one five seven seven three.
Speaker 6 (09:51):
Hey, Christy, take a minute to talk about retirees giving
pre retirees advice.
Speaker 1 (09:55):
That is, you said, you know, kind of that trial.
Speaker 6 (09:57):
Run boy, don't make the big move I'm going to move,
you know, just make that decision right away. Maybe go
live there first before you make that decision, or the RV.
Maybe rent it before you buy it.
Speaker 8 (10:07):
Yeah.
Speaker 4 (10:08):
Absolutely, So I've said this for years, and you know,
I can remember ten years ago when I said it first,
Matt looked at me kind of crazy. I think that
that sometimes we have this this preconceived notion in our
mind of what retirement's going to look like. And I
think it's really important that if we're if we're truly
going to consider retiring, we live like we're we're retired
(10:29):
before we actually retire. Now, if your biggest goal in
retirement is travel, maybe you're going to just use what
vacation time you have available. But you need to start
looking at your budget. You need to start living within
that budget to make sure that that's really what you
want to do in retirement. I think test driving your
retirement is extremely important. We'd love to help you build
(10:51):
your smart plan. Give us a call at two two
five seven nine one five seven seven three. This is
what we do every day and we'd love to work
with you.
Speaker 6 (11:00):
With us today for your money manage with Christie Smith
and Matt Kennedy Presley Wealth Management. We're just getting started.
A lot more to come right after this. Stay with us.
Speaker 9 (11:08):
Be smart when it comes to your retirement. Presley Wealth
Management has a smart plan to help you better understand
the process. Set up your no consultation appointment to get
your smart planning in place. Call eight sixty six three
nine oh twelve fifty two. That's eight sixty six three
nine oh twelve fifty two.
Speaker 2 (11:29):
Stop for a moment, think about this. Do you know
how much money in your four oh one k or
ira is actually your money? A will the government take
a bigger chunk than you thought? Remember you still may
owe taxes on that money. But do you have a
plan to help make sure you don't pay more than
you should. At Presley Wealth Management, we believe you deserve
to keep more of what you've earned, which is why
(11:49):
we're here to help you navigate the confusing world of
retirement taxes.
Speaker 8 (11:53):
It's your money. You deserve to know what's at stake.
Speaker 2 (11:55):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, we'll
work just as hard to help you keep it. Pressley
Wealth Management seven nine one five seven seven three.
Speaker 9 (12:13):
Investment advisory services offer through a wealth management LLSE, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. You're listening to
your Money Matters with Christy Smith and Matt Kennedy. To
(12:34):
set up your fifteen minute meeting with the Presley Wealth
Management team, call eight six six three nine ZHO twelve
fifty two.
Speaker 6 (12:43):
Welcome back to your Money Matters with Christy Smith and
Matt Kennedy of Presley Wealth management Again, if you have
questions about where you are on that road to retirement.
Maybe you already retired, you got some questions. Maybe you're
five years out from retirement, you got some questions. Maybe
you're retiring this year. 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're retire two two five, seven
nine to one fifty seven seventy three. No cost to
(13:04):
chat with the team. They are here to help if
they can. Seven nine to one fifty seven seventy three.
And of course you can always go to meet with
us now dot COM's just set up a fifteen minute
phone call. Hey, here's a couple of 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
(13:26):
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 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
(13:46):
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 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 four
Families ends December thirty first of twenty twenty five. So
we're kind of in that kind of time period where
(14:07):
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 (14:12):
Where are you on this.
Speaker 6 (14:13):
We're only thirty six trillion in debt as a nation,
so taxes can go way down, right, Christy, Well.
Speaker 4 (14:19):
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,
(14:42):
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
(15:04):
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
(15:28):
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.
Speaker 7 (15:38):
If we're lucky, we'll get another four years of that.
But who knows, None of us know. We don't have
a crystal ball.
Speaker 4 (15:44):
What we do know is that long term, it is
likely we will see higher tax brackets. Now, one of
the things that we start looking at is ways that
we can minimize those taxes in retirement. And many people
have already caught on to the wroth ira, you know,
contribute to a wroth even inside of a four oh
(16:05):
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. We'd love to
help you with that, 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
(16:26):
of our younger clients may consider like an index universal
life contract and at some point when they retire, take
money out of it tax free to live on in retirement.
So there's other strategies available that we can use besides
just wroth planning. And that's what we do at Presley
Wealth Management. We look at the long term effect of taxes,
(16:48):
you know, using today's tax code and try to develop
a better path moving forward.
Speaker 7 (16:54):
And we want to be your resource.
Speaker 4 (16:56):
So we'd love to have that conversation with you, and
it's a very simple conversation. What are you doing now
or are there things you can do differently. 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
(17:18):
love to help.
Speaker 6 (17:18):
You with two two five seven nine to one fifty
seven seventy three to chat with the team at Presley
Wealth Management. There's no cost for this two two five
seven nine to one fifty seven seventy three. Of course,
you can always go to meet with us now dot
com and Matt with our country over thirty six trillion
dollars in debt as a nation at the end of
the day, though.
Speaker 1 (17:37):
They cannot tax their way out of this.
Speaker 6 (17:39):
So I mean Trump's tax cuts that he wants to
keep in place are very interesting because you also have
the doge I guess with Elon and Vivek right, and
they save money. I don't know, I mean, because you
can't tax your way out of thirty six trillion dollars
in debt. And Trump has taken the corporate taxes and
that twenty seventeen Tax Cuts and Jobs Act from thirty
five down to twenty one He's even talked about taking
(18:01):
that for the corporations down to fifteen, which I guess that.
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 2 (18:14):
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,
but I know the yeah butt. But at the end
of the day, the core of what happened was taxes
went down, economic growth accelerated. That will probably be the
Trump Doze plan. Here's the thing. I don't know that
(18:35):
they can get us out of this. I don't know
what they'll do. But the headline of this segment is
tackling the twin threats of taxes and inflation. Folks don't
forget they're joined hand in hand. Let me explain. So
Let's say inflation continues to run high and you just retire,
and now because of inflation, your expenses are more. Let's
(18:58):
say you're going to plan to retire in five years,
and inflation hasn't gotten under control. It's not tamed, it
hasn't cooled off.
Speaker 1 (19:06):
Well.
Speaker 2 (19:06):
When you're pulling money from pre tax dollars, so you
have an IRA worth a million dollars and you're pulling
money out to live on, do you realize you're having
to get double hit A. You're taking more because inflation
makes you take more. And when you take more now
you have to take more than you planned on taking
because you have to pay the higher taxes on what
(19:27):
you did take to make up for the higher inflation.
Speaker 5 (19:30):
Ouch.
Speaker 2 (19:31):
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 5 (19:44):
Does that make sense what I'm trying to say, Christy?
Speaker 2 (19:46):
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 (20:05):
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
(20:28):
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.
(20:50):
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. Yes,
by being able to withdraw money from non taxable buckets
in retirement. So my question to you would be, are
you diversified, diversified in terms of assets asset allocation risk?
(21:15):
Are you diversified in terms of building a tax efficient
long term plan. We'd love to help you at Presley
Wealth Management and this is what we do every day.
Give us a call at chew CHWO five seven nine
one five seven seven three chew CHWO five seven nine
one five seven seven three are go to meet with
(21:36):
us now dot com.
Speaker 6 (21:38):
So and Christy said it, Matt, you know when when taxes,
if the twenty seventy Tax Cuts and Jobs Act does
actually sunset at the end of this year and twenty
twenty six, we go back to the seventeen rates of brackets,
your taxes are going up twenty to thirty percent.
Speaker 1 (21:52):
That's just correct. That's kind of the way it is
right now.
Speaker 2 (21:54):
I don't I don't see that happening, not with Trump
in office, but he could never say never, right.
Speaker 6 (21:59):
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.
Speaker 1 (22:10):
But the corporate tax, it's kind of an interesting thing.
Speaker 6 (22:13):
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 (22:20):
I guess that's kind.
Speaker 6 (22:21):
Of the theory by lowering this corporate taxes from twenty
one to fifteen. If he could do that, because the
corporate tax cut back was permanent, there is no I mean,
it's not going to go back up right.
Speaker 2 (22:32):
Well, let me add on the national scene, let me
bring it home to the state scene. In the very
first segment, we talked a bit about how social security
and the windfall and government pension officet has been changed,
and of course that has a huge impact in Louisiana.
I do not want to miss this. Governor Jeff Landry
and the state administration here have radically changed the corporate
(22:54):
and state tax for Louisiana. I believe 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 the standard state tax deduction.
Speaker 5 (23:09):
It was forty five hundred bucks a person. They've tripled that.
Speaker 2 (23:12):
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
(23:33):
state has raised the state sales tax from four percent
to five percent. That's to kind of help the transition.
So if you're paying state taxes, know that this year
is going to be a good year for you because
you have a about a one point twenty five percent
lower payment and a higher deduction.
Speaker 6 (23:51):
Huge So when we come back, Christian matter going to
tack a little bit about the inflation situation more with
Christian Matt right here on your money matters.
Speaker 8 (23:59):
Right after this, stop for a moment think about this.
Speaker 2 (24:03):
Do you know how much money in your four oh
one k or ira is actually your money?
Speaker 4 (24:08):
All?
Speaker 5 (24:08):
Will the government take a bigger chunk than you thought?
Speaker 8 (24:10):
Remember, you still may.
Speaker 2 (24:12):
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, but they
won't be this low forever.
Speaker 5 (24:32):
So call us at seven nine one five seven seven three.
That's seven nine one five seven seven three.
Speaker 2 (24:38):
Look, you work hard for your money, will work just
as hard to help you keep it.
Speaker 5 (24:42):
Presley Wealth Management seven nine to one five seven seven.
Speaker 9 (24:45):
Three Investment advisory services offer through a wealth management LLC, a.
Speaker 7 (24:49):
Registered investment advisor.
Speaker 9 (24:51):
Investing involves risk. Always consult with a qualified tax advisor
before making any decisions regarding your ROTH conversion, as there
may be additional tax considerations.
Speaker 5 (25:00):
If you aren't able to listen.
Speaker 9 (25:01):
To this show in its entirety, go to Presleywealthmanagement dot
com to listen to this.
Speaker 7 (25:07):
And past radio shows.
Speaker 9 (25:08):
Otherwise, stick around to find out how Presley Wealth Management
will help you retire with confidence.
Speaker 6 (25:15):
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 going to
be okay? Well? Our money last two two five, seven
nine one fifty seven seventy three if you'd like to
(25:35):
have a conversation, because there's a lot going on. Every
year things change, whether it's the national government, the local government,
just a lot going on. And of course Christian Mat've
already talked about the windfall thing for social security. Big
for those firemen, police teachers. You might be able to
get some sob Security call the team find out seven
nine to one, fifty seven to seventy three, and you
(25:55):
can always go to meet with usnow dot com.
Speaker 1 (25:58):
I'm Mark Kelly. We're talking about the challenges really of taxes.
Speaker 6 (26:01):
We touched on that and certainly this is a big
year for that because of twenty seventeen Tax Cuts and
Jobs Act that Trump put into place back in his
first term. He's going to try to extend it actually
expires for families and individuals at the end of this year.
The corporate TAXI went from thirty five to twenty one.
That was no end date in that one, but for
us there is an indate, so we'll see how that
(26:23):
all plays out. Certainly, but when it comes to inflation, Matt,
I'm gonna ask you a question, how much do you
think thirty years ago, nineteen ninety five, how much was
a new transmission in a car.
Speaker 5 (26:33):
Oh, lord, nineteen ninety five, seven.
Speaker 6 (26:35):
Hundred dollars, okay, just making sense. That's a good guess, though,
that's a really good guess. But it actually was. Back
in nineteen ninety five, the average transmission was twenty five hundred, depending.
Speaker 1 (26:45):
On the make of the model of the car, fifteen
to thirty five.
Speaker 8 (26:48):
Seven hundred.
Speaker 6 (26:48):
Yeah, you can tell I don't work on my yeah, yeah, exactly.
But maybe a rebuilt transmission, maybe it would be seven hundred. No,
I like your guests though, but it was twenty nine.
Speaker 2 (26:56):
We had out in Irwinville, boy, rebuilt transmission.
Speaker 6 (26:59):
And bring that up is my daughter's transmission went out
and now she has hand controls because of her car
wreck as a senior in high school. So she's, you know,
hand controlling. And I wonder if that affected transmission. Because
it was only a fifty thousand miles car twenty eighteen,
it should not be out. But it is just so
you know, that transmission now costs six thousand dollars. Wow,
So is that inflation? That's inflation, isn't it.
Speaker 1 (27:22):
Well?
Speaker 2 (27:22):
I just googled by the way it says on average,
replacing a car transmission cost between four and seven thousand dollars.
Speaker 5 (27:27):
Holy cow, that's inflation.
Speaker 1 (27:30):
That is your relation, and so you think about it.
Speaker 6 (27:32):
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 7 (27:53):
Well, it really wasn't.
Speaker 4 (27:54):
And we've built our plans for our clients to combat inflation,
even though we haven't seen high inflation until recently. It
is really important that when you're looking at your long
term plan that you've actually planned for inflation, because if
you don't plan for inflation in ten years from now,
(28:15):
your lifestyle is going to be a lot you're going
to be doing a lot less than what you're doing now.
So you need to build a overall plan that is
going to take into consideration inflation. And to do that,
what we're going to use is we're going to build
strategies that are going to highly diversify the income. We're
going to take into consideration the cola for social security benefits. Now,
(28:37):
keep in mind the cola increase the last couple of
years because of the level of inflation has been higher,
but this year we're seeing a lower cola. It's really
important that you build a long term plan that includes
inflation protection, and we're going to do that in building
(28:58):
your smart plan.
Speaker 7 (28:59):
At Presley Wealth Management.
Speaker 6 (29:01):
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 2 (29:07):
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. 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,
(29:28):
and President Trump was elected. The market popped immediately, but
we're seeing some cracks in the market, and the primary
reason is because they're having trouble getting inflation under control.
The average thirty year mortgage is back at seven percent,
and people stop buying houses at seven percent, they just freeze.
Speaker 1 (29:51):
Hey, explain this to me, because it's an confusing thing
to me. Is that?
Speaker 6 (29:54):
Okay, the FED, Federal Reserve Chair Jerome Powell, they've been
fighting inflation, right. They rose the interest rate levels during
that twenty twenty two time period. In twenty twenty three,
and then last year they were going to lower them
like five or six times, they didn't. They did it
twice I think, at like a quarter percent. 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
(30:17):
interest rates are going up.
Speaker 1 (30:18):
How does that work well with that?
Speaker 2 (30:21):
In a perfect world, rising rates cool off the economy.
A cooled off economy reduces inflation. The problem is, for
whatever reason, quantitative easing so many people who are not
in the labor market, but instead they're on the welfare system.
I'm not being ugly, I'm just giving you the facts.
That is creating perpetual high inflation. And so now the
(30:43):
Fed's kind of caught. If they cut interest rates again,
they're exacerbating inflation. If they don't cut interest rates, they're
not stimulating the tech sector, and they're hurting the stock market,
so it's kind of picked your poison, Christy, you know.
So that's why one of the reasons is that you
really need to look at your risk profile this year
(31:03):
if you're close to retiring.
Speaker 5 (31:04):
We're not saying a horrible market crash is coming, Bud.
Speaker 2 (31:08):
All the analysts feel like twenty twenty five could have
a lot of bumps along the way.
Speaker 4 (31:12):
Well, and for those of you who have retired in
the last five years who don't have a written retirement plan,
now's the time to look at it and say, okay,
or there are things I should be doing differently.
Speaker 3 (31:24):
You know.
Speaker 4 (31:25):
It's crazy to me, Mark, because people will come into
the office as they're looking for a second opinion, which
we highly encourage. I ask them to see their written
retirement plan. Maybe they retired three years ago. They give
me their investment statement and they say, this is all
I have.
Speaker 7 (31:41):
The thing is is.
Speaker 4 (31:42):
That 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
(32:03):
in two thousand and seven eight like my dad went
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
(32:23):
encourage any of you that retired in the last five
years to just get a retirement checkup eight. You know,
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
(32:45):
to get that check up, and we would love to
help you. And Matt, I know you're going to agree
with me when I say that nothing brings me more
joy than to be able to tell someone I think
you're good.
Speaker 2 (32:57):
Oh, totally the right track. I 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
(33:17):
you wanted to retire now you really could.
Speaker 5 (33:21):
And they're quiet for a minute and they're like, are
you serious.
Speaker 2 (33:24):
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 key
is not your rate of return, it's your range of return.
(33:46):
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 find 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 5 (34:02):
What do I mean by that?
Speaker 2 (34:03):
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.
(34:26):
Let's talk about that more seven nine one five seven
seven three.
Speaker 5 (34:31):
It's what we do every day.
Speaker 2 (34:32):
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 one five seven seven three, or you can
set up a phone call online at meetwith usnow dot com.
Speaker 6 (34:53):
Back on their final segment with Christian Matt right here
on Your Money Matters right after this.
Speaker 9 (35:00):
If this is a year you've resolved to finally get
your finances in order, Christy Smith and her team can help.
Give them a call today at eight sixty six three
nine oh twelve fifty two. That's eight six six three
nine oh twelve fifty two.
Speaker 8 (35:16):
Stop for a moment, think about this.
Speaker 2 (35:18):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought.
Speaker 8 (35:26):
Remember, you still may.
Speaker 2 (35:27):
Owe taxes on that money. But do you have a
plan to help make sure you don't pay more than
you should? At Presley Wealth Management, we believe you deserve
to keep more of what you've earned, which is why
we're here to help you navigate the confusing world of
retirement taxes.
Speaker 8 (35:41):
It's your money. You deserve to know what's at stake.
Speaker 2 (35:44):
Right now, taxes are historically low, but they won't be
this low forever. So call us at seven nine one
five seven seven three. That's seven nine one five seven
seven three. Look, you work hard for your money, We'll
work just as hard to help you keep it. Presley
Wealth Management seven seven seven three.
Speaker 9 (36:02):
Investment advisory services offer through AE 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. Christy Smith of
Presley Wealth Management wants to advocate for you, making sure
(36:23):
you have the retirement you have always wanted. Call eight
sixty six three nine oh twelve fifty two and make
sure Presley Wealth is the right fit for you. You
won't know until you call eight sixty six three nine
oh twelve fifty two.
Speaker 1 (36:40):
Welcome back to.
Speaker 6 (36:40):
Your money matters with Christy Smith and Met Kennedy of
Presley Wealth Management.
Speaker 1 (36:43):
I'm Mark Elliott again.
Speaker 6 (36:44):
You can always go to meet with usnow dot com
set up a time to have a conversation with him.
You've got questions about taxes, about social security, whatever it is.
Can we retire? Do we have enough? Are we going
to be okay? Meet with usnow dot com. I'm Mark Elliot,
Glad you're with us. We're gonna finish up today's show
with mail bag segment. So these are questions that have
come from people that attended events that Christian Matt put on,
people that send in questions, people that just have questions
(37:07):
and they're like, man, that was a good question. We
got to use that on a radio show. But that
being said, the first question comes from Jin and Jin
I would say, if you really want to find the
complete answer from Christian Matt, you need to have a
conversation so they can ask you follow up questions. They
can dig a little deeper, you can ask them follow
up questions, but they always do their best with the
questions here and the information they have. It's two two
five seven nine to one fifty seven seventy three to
(37:29):
have a conversation two two five seven nine to one
fifty seven seventy three.
Speaker 1 (37:34):
Christy.
Speaker 6 (37:34):
This first question comes from Jen Jen's from Denim Springs,
and I thought this was interesting because we're hearing more
and more about this every time Trump wins. People are leaving,
They're going abroad. I'm leaving the States. I gotta go
somewhere else. So it's just kind of crazy. But there
are some positives going overseas, I suppose. But here's the question.
Christy Jen says, my husband and I will retire around
the same time we are considering moving abroad. How might
(37:57):
that impact our savings and pensions? Which is a good
example of how you need a lot more information to
give her a complete answer. But what's your take on
somebody that wants to move abroad. There's a lot of
questions I would think, Well, I'm.
Speaker 7 (38:08):
Sure there are.
Speaker 4 (38:09):
For me, one of the biggest questions would be taxes.
You know, you really want to look at how that's
going to affect your tax situation, because living abroad can
well you're going to face unique tax situations or challenges
that people living in the United States may not face.
The next consideration for me would be medical You know,
(38:30):
are you relying on our Medicare system for your health
benefits in retirement and how will that be affected if
you're living abroad, there's a lot of things to consider
for me. The biggest though, would be taxes in healthcare.
Speaker 6 (38:44):
Healthcare is a huge one I would think of. Yes,
there are certainly countries that are great have great health care.
But it is interesting if you're moving. I guess it
would be in a way christy, like if you were
moving from Louisiana to Kentucky. There are different rules, different
laws in Kentucky than there are Louisiana.
Speaker 4 (38:58):
Well, you probably wouldn't even want to consider your estate
plan and like how living abroad, how your estate plan
could be affected by living abroad. You know, there's a
lot of things that you want to consider. There's no
easy answer to that, and we'd love to meet with
you and discuss it with you in person. Again, you're
more than welcome to give us a call at seven
nine one five seven seventy three and schedule a fifteen
(39:19):
minute phone call.
Speaker 6 (39:20):
Is there any chance you could explain this windfall social
security stuff more because you were going into it earlier
and it's a big big deal that I think it's
for teachers, firemen, policeman, that kind of stuff, and it's
maybe more for spouse.
Speaker 1 (39:32):
I don't know. Can you sure a little bit about that?
Speaker 2 (39:35):
Let's break it down. So madeor law change. January first,
twenty twenty five, the Social Security Fairness Act has been
signed into law. It hasn't gotten a tremendous amount of
discussion in the news, but it is probably one of
the top five largest law changes for your finances in
the last forty years.
Speaker 4 (39:54):
Well, Matt, just to make this clear, in my opinion,
the reason it hasn't gotten this much publicity in the
laws because it doesn't impact people living in all states.
Speaker 2 (40:05):
Correct, It only impacts people in a handful of states.
But Louisiana happens to be one of those states that's
highly impacted.
Speaker 5 (40:12):
So here's the way it works.
Speaker 2 (40:14):
Let's say that you spent ten years working at a
job and you paid into Social Security. Maybe your benefit
was going to be one thousand dollars, but then you
spent the next twenty years in a public sector job.
I'll just use school teacher. You could have been a firefighter,
police officer, but I'll just use school teacher. Well, when
you retired as a school teacher and began taking your
(40:37):
school teacher pension, right your public pension, the formula web
applied Windfall Elimination Provision, and basically it's a formula they
have that would punish you up to around five hundred
and fifty eight dollars a month because you didn't pay
into Social Security all the years that you were teaching.
(40:58):
So the thousand dollars you were going to get might
end up being four hundred and sixty eight bucks. Well,
I always thought that was incredibly unfair. But more unfair
than that was GPO government pension offset. Now there's two
ways that that we would see that impact our clients.
So you worked for ten years in the private sector,
(41:21):
you paid into Social Security. Using simple math, here you
had one thousand dollars a month coming to you. But
your husband, Lady, you were the school teacher. Your husband, Bob,
he had worked on the chemical plant he retired. His
social security is three thousand a month. And you might
have thought, well, they're gonna ding my social security by
up to about, you know, five hundred and fifty eight bucks.
(41:43):
But hey, no problem, I'll just wait and I'll take
half of my husband's social security.
Speaker 4 (41:47):
Ah.
Speaker 2 (41:48):
The Social Security Administration would pull out the calculator and
they would say, oh, okay, so your pension is three
thousand dollars, and the formula for the government pension offset
was we're going to subtract two thirds of your pension.
Let's just round, it's two thousand bucks a month. So
instead of being able to draw half of your husband's
(42:08):
Social Security, which is fifteen hundred, nope, you're punished, and
so you end up only getting a very small portion
of your husband's social Security. Actually you would get none
while he was alive. But then your husband passes away, ma'am,
and if you had never worked in the public sector,
(42:30):
you would receive all of the amount of your husband's
Social Security. That would be your survivor benefit. But the
problem was that same two thirds rule applied, and so
if your husband was getting three thousand and then died,
you would only get one thousand dollars a month. That's
a massive pay cut for someone. The new law changes
(42:53):
that there is no more government pension offset, there is
no more windfall elimination. Hold on, don't jump the gun.
If you retired January first, twenty twenty five or later.
Speaker 5 (43:06):
If you retired four years ago.
Speaker 2 (43:07):
You're not grandfathered in. But if you retired January first,
twenty twenty five or later, this law no longer replies,
and there is a special one time exception if you
retired in twenty twenty four, the government will offer a
lump sum to make up the difference for what you
lost in that one year.
Speaker 5 (43:29):
So it's a big change. It's a massive change.
Speaker 2 (43:32):
I know it's confusing, but and they're still drawing up
the exact timing and all of this at the Social
Security Administration.
Speaker 8 (43:38):
But Mark, we can help.
Speaker 2 (43:39):
Just reach out to us if you're in this situation
and you're very confused, we'll be happy to walk you
through it. Where it's seven nine one five seven seven three.
Now you'll get the machine when you call on the weekend.
Just leave a message and say help social Security. Leave
us your name contact number. We'll get back with you.
It's seven nine to one five seven seven three.
Speaker 6 (43:58):
I think the best thing to do would be call
the team at Presley Wealth Management, figure out all this
how that it does affect you. Seven nine to one
fifty seven seventy three seven nine to one fifty seven
seventy three. And of course you can always go to
meet with us now dot com. All right, final question, chrisy,
I'll give it to you. It comes from Alex Alex
and Baton Rouge. My dad worked at the same job
for thirty years before we retired with a pension, and
(44:19):
it just seems like he's never had to worry much
about money. I've worked for three different companies, but I've
always made sure to contribute to the company four oh
one K with each position. I'm realizing that I should
do something with those different accounts. There's a good amount
in each of them, but I don't know how to
consolidate that money or if that would even be the
best thing for me to do.
Speaker 1 (44:34):
I chould love to enjoy retirement like my dad one day.
Speaker 4 (44:38):
Well, unfortunately, we're seeing pensions go away. We're seeing employers
not offer pension plans, and even those that did are
actually buying pension plans out. So what we're having to
do is we're having to build our own retirement income
and our own retirement plans. You may consider rolling those
four oh one ks from different employers and your current
(45:00):
for a one K. You may consider building your own
I RAY, starting your own personal plan, building your own
pension plan. You have a lot of options available to you,
and that's where we would love to help and work
on building you a smart holistic plan. Give us a
call at two two five seven nine one five seven
seventy three and we'd love to help you build that plan.
(45:23):
Will help you explore your options and determine what would
be the very best step for you to take in
building your own plan. You can also go to meet
with usnow dot com and schedule a fifteen minute phone call.
We'd love to work with you. It's January, Now's the
time to make changes.
Speaker 3 (45:41):
Presley Wealth Management has a strategic partnership with tax professionals
and attorneys who can provide tax and or legal advice.
Speaker 9 (45:46):
Investment advisory products and services made available through AE Wealth
Management LLCAEWM, a registered investment advisor. Insurance products are offered
through the insurance business the Presley Group. Presley Wealth Management
is an investment advisory practice as it offers products and
services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the 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):
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