March 21, 2025 • 47 mins
Christy Smith, founder of Presley Wealth Management and Matt Kennedy, investment adviser representative, discuss issues that affect your retirement planning and how you can build a plan to help reduce risk and implement wealth accumulation strategies. Learn more at presleywealthmanagement.com and then, if you would like to have a conversation around your specific situation, set up an appointment online at meetwithusnow.com or by calling (225) 791-5773.
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Episode Transcript
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Speaker 1 (00:00):
When the news is national.
Speaker 2 (00:01):
SOB, security system volatility, global turmoil, interest rates, Rock Dan
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 2 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full fledged retirement plan.
Speaker 4 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters. I'm Mark Kelly.
Speaker 6 (00:52):
It alongside the founder of Presley Wealth Management, that is
Christy Smith. Also with us, Matt Kennedy, matt'smen, with Christie's
team now for over a decade. Glad you're with us.
We talk retirement. Can I retire? Do we have enough?
Or we're gonna be okay? Or our loved ones to
be okay at the end of the day. Do we
have enough? Can we retire and live our lifestyle that
we've always dreamed of in retirement?
Speaker 1 (01:09):
Don't know?
Speaker 6 (01:10):
All you have to do is call the team at
Presley Wealth Management to find out. It's two two five
seven nine to one fifty seven seventy three two two
five seven nine one fifty seven seventy three.
Speaker 1 (01:21):
And of course I always think it's easy.
Speaker 6 (01:22):
You always go to the website Presleywealthmanagement dot com Presleywealthmanagement
dot com. But if you really want to talk to him,
and an easy way to do it is just go
to meet with us now dot com. Have a fifteen
minute twenty minute phone call, have a conversation, your your concerns,
your questions, and then that way you're actually talking to somebody,
they can ask you follow up questions. You can ask
them follow up questions. That's really how you get to.
Speaker 1 (01:42):
The nitty gritty.
Speaker 6 (01:43):
Are you good? Are you not good? Meet with us
now dot com. Christy Matt, Welcome to the show. And Christy,
there's a whole lot going on in our government these days.
Speaker 1 (01:53):
We certainly know that the taxes has been a big deal.
Speaker 6 (01:55):
We've been talking about taxes on the show for what
a decade, wouldn't you say.
Speaker 2 (01:58):
Mm hmmm, yeah, definitely.
Speaker 6 (02:00):
So with this new tax agenda, the twenty seventeen Tax
Cuts and Jobs Act, Trump put it in in Trump
one point oh if you will. Now we're in Trump
two point zero, and he has said he's going to
continue that. There's a lot of little things in this thing, though,
and I haven't started, you know, I'm sixty five.
Speaker 1 (02:15):
I haven't started.
Speaker 6 (02:16):
So scaredy yet, I'm all in, let's get rid of
federal SOB scurity tax.
Speaker 1 (02:19):
But there's a lot going on. What's your take on
some of these things?
Speaker 2 (02:23):
Well, I think that if he is able to get
it passed, it probably wouldn't be till the end of
this year. I don't think it's going to happen as
quickly as many would like to see it happen.
Speaker 6 (02:32):
So you think he's waiting till I start it, then
he would put it into play because he doesn't care.
Speaker 2 (02:36):
Yeah, maybe so. Well, I think in theory, what we
would want to do is is we would want to
make sure we're continuing to tax plan with our clients,
just because we don't exactly know what's going to go through.
I do not believe that they will get anything changed
like set in Stone in the near future. I think
(02:58):
it's going to be later in the year before we do.
And with that said, I think it's really important to
understand even if he did get the you know, tax
cuts that he's pushing through to pass, at some point,
taxes will have to go up again, and so it's
it's a matter of do we pay now or do
(03:20):
we pay later. And for our clients, we want to
constantly tax plan. You know, one of the biggest issues
we see in retirement is taxes. Mark, did you know
a million dollars? People will come to us and meet
with us for the first time and they're excited because
they have a million dollars in their IRA, and I say, well,
how much of that million dollars do you actually have?
(03:41):
Because think about it, that's one of the biggest debts
you're going to have is the irs with a million
dollar IRA. So typically we're going to say, Okay, you
don't really have a million dollars, you really only have
about seven hundred thousand, and so we always want to
work on building an efficient tax plan. For many of
our clients when they retire, it's not as much of
(04:02):
an issue when they get older and they're forced to
take required distributions. That's when we see Uncle Sam, you know,
really hurt our clients. And especially if we have a
husband and wife and one of them passes away and
now we have a single taxpayer being required to take
required minimum distribution at age seventy five, and they're now
(04:26):
having to pay more in taxes because that distribution isn't
you know, it's not any lower because there's only one person.
So tax planning is the key, and we talk about,
you know, ways that we can tax plan, and there's
so many things that we can do. Most people have
heard of a Roth conversion, but that is not the
only tax strategy available.
Speaker 6 (04:47):
So you think about this taxes and certainly the twenty
seventy Tax Cuts and Jobs Act, and why it's so
important is because it actually sunsets at the end of
this year. And so Trump certainly has said he will
try to continue that, but at the end of the day,
it's Congress's decision. And Matt, I'd like your take on that,
because Christy said, look, we know we taxes have to
go up at some point. The one thing is we
had four years of not knowing anything that was going on.
Now we have four years of maybe knowing way too
(05:09):
much it's going on, and we start giving money back
to the people and the economy starts booming. We can
actually fight the debt in a different way other than taxes.
I don't is that even possible.
Speaker 4 (05:20):
I'm not sure about the net impact of tariffs, something
need to study up on.
Speaker 1 (05:25):
But I do know this. I haven't voted.
Speaker 4 (05:28):
I personally have not voted yes to any new tax
in thirty years. When it comes up on the ballot
in my parish, Nope, When it comes up for the state, Nope.
No renewals. I'll typically vote yes too. The reason I've
been very staunched for thirty years and said nope is
exactly what Doge is uncovering. There is so much fraud,
There is so much waste. By being able to trim
(05:51):
out the junt not trim out, take a chainsaw and
cut out so much of the waste.
Speaker 1 (05:56):
And fraud, that alone would.
Speaker 4 (05:59):
Be a tax cut from many Americans right there, Even
if the tax brackets don't change, just cutting out the
fraud would help reduce the deficit dramatically. But there's pain, though, Christy,
because hundreds of thousands of people are gonna get laid
off because they've been not showing up at work, not
doing anything. And the short term impact on the market
and the economy could actually be damaging. But I think
(06:22):
it's for the greater good in the long term.
Speaker 1 (06:23):
Trump said.
Speaker 6 (06:24):
He said, Okay, so if we go find a trillion
dollars from by Doze that Matt was just talking about
and tariffs, we get a trillion there. Now we're spending
two trillion, we're getting bringing in two trillion. There's no inflation.
I don't know if that's right either, because I'm far
from an economy.
Speaker 4 (06:37):
I just need to understand how tariff's impact us better.
I'm just confessing it. I'm not a terrific expert. I
guess we need to book a terrific expert on the
show and ask them. You know.
Speaker 6 (06:46):
Yeah, so, hey, here's a deal. If you have any
questions about where you are, boy, what about taxes? How
will that affect us in retirement? Meet with usnow dot com.
You talk with Christy Matt and the team at Presley
Wealth Management. There's no cost, there's no obligation, there's no
pressure either. There's no judgment either. Really it's about you.
How can they help. If they can, they certainly tell you.
And if they can't, they'll tell you that as well.
But I think you can get some answers just by
having a quick conversation with the team and then figure
(07:08):
out where to go from there.
Speaker 1 (07:09):
Meet with us now dot com.
Speaker 6 (07:12):
So you think about all these this tax policy twenty seventeen,
tax cuts and jobs actually sunsets at the end of
the year, and there's a lot going on. The no
tax on tips, no tax on overtime pay, no tax
on senior Social Security. There's a lot of moving parts here.
And it's one of the things Christy, we always talk about.
We don't have control over the tax brackets, what dollar
amounts going to this percent, the twelve percent, twenty four
(07:34):
or thirty six, whatever it is. Right, we don't control
any of that, but we do, with your help, have
control over when and how we attack these taxes.
Speaker 2 (07:42):
Right, yeah, absolutely. And the thing is is that you know,
while President Trump would like to get these tax cuts past,
we know he isn't the one who can make it happen.
You know, Congress is in charge of that policy. And
so I think right now it's it's just a wait
and see in terms of what is actually going to happen.
(08:04):
I mean, we we think about taxes on Social Security
benefits and wow, I'm going to pay taxes on Social
Security benefits. I mean, many people don't even realize that
they will actually pay taxes when there are social Security benefits,
because I don't think social Security benefits were actually ever
intended to be taxed, since we're taxed already on them.
Speaker 7 (08:22):
They weren't while we're working, you know.
Speaker 2 (08:25):
And so I do one hundred percent believe that we
won't see uh, this tax bill passed in the next
you know month. I think it's going to take time,
and I think it's important to understand that, even if
they do get things past, you know, in this year,
it's important to know that, you know, four or five
(08:46):
years down the road, we can see a whole new
tax policy you know, come out, and so it's important
to plan. You know, people that are self employed, like myself,
you know, we think about an exit strategy. We think about, okay,
in you know, ten years from now, what are we
going to do with the business when we retire. Well,
(09:07):
for me, it's a simple answer. You know, I've got
Presley coming up in the wings and she hopes to
continue this legacy. But for many business owners, like think
about it, like dentist attorneys, what are they going to do?
What's their exit strategy? And honestly, there's a lot of
different tools that they can use that actually can help them.
Tax plan now, it's something that they don't need to
(09:30):
wait until they are ready to sell the business to consider.
To me, having a plan. You can always make adjustments
or tweaks to the plan, but it's important to understand
your options and actually have a plan.
Speaker 6 (09:45):
Matt I would say. It's also the same thing for
pre retirees. It's not wait till you're retired to have
a meeting with you.
Speaker 1 (09:52):
Guys.
Speaker 6 (09:52):
It's five to ten years out is a great time
to meet, sit down with you and put the plan together.
Then you have time before we actually retire. It's kind
of like playing golf. Mark you love golf, I know,
and I love this analogy.
Speaker 4 (10:04):
A slight adjustment at the t box can make tremendous
It can make a huge difference two hundred and forty
five yards down the fairway. It's like those days when
you're having a good day in golf, right and you
and you hit the ball and right down the middle.
But if you're just slightly off, now you're out of bounds.
Speaker 5 (10:22):
Same thing.
Speaker 4 (10:23):
It's because you're hitting the ball so far right. But
if you wait until you're putting, when you're already retired
or you're on the cusp of retirement, you've got a
lot less margin for error. So small adjustments now pay
big dividends down the road.
Speaker 1 (10:37):
Here's the thing.
Speaker 4 (10:38):
I think that Trump tax cuts will be extended, but
I'm like Christy, it'll take a while. But then there's
another presidential election coming up in less than four years,
and you don't know what that administration will do. So
instead of leaving it up to the unknown, work under
the present law. Get yourself in a better position, no
(10:58):
matter what Congress or a president does.
Speaker 7 (11:02):
We help with that. It's our smart retirement plan.
Speaker 4 (11:05):
We look at sources of income, how do we help
you with medical and medicare, advanced planning, managing risk, and
of course what we're talking about right now, helping you
reduce your and your family's future tax burden. Reach out
to us at seven ninety one five seven seven three.
That's two two five seven nine one five seven seven
(11:27):
three you'll get the machine, leave a message we'll contact
you back on Monday. Or if you would like to
go online and schedule a fifteen minute, no cost, no
obligation consultation, just to chat. Find out where you are.
We are at meetwith usnow dot com. That's meet with
usnow dot com.
Speaker 6 (11:43):
We've got a lot to get to your money matters
with Christy Smith and Matt Kennedy.
Speaker 1 (11:46):
Just getting started. Stay with us for back right after this.
Speaker 8 (11:50):
Does inflation have you pinching pennies? Are you reconsidering retirement plans?
Don't make any hasty decisions just yet. Come meet with
Christy Smith and At Kennedy to get started on the
right foot. Call eight sixty six three nine oh twelve
fifty two. That's eight six six three nine oh twelve
fifty two to get a free fifteen minute meeting, or
(12:12):
go to Presleywealthmanagement dot com.
Speaker 5 (12:16):
Stop for a moment, think about this.
Speaker 4 (12:18):
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. Remember you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should. At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(12:39):
world of retirement taxes.
Speaker 5 (12:40):
It's your money. You deserve to know what's at stake.
Speaker 4 (12:43):
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.
Speaker 7 (12:57):
Presley Wealth Management seven ninet one five seven.
Speaker 8 (13:00):
Investment advisory services offer through a Wealth Management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. Be smart when
it comes to your retirement. Presley Wealth Management has a
smart plan to help you better understand the process. Set
(13:23):
up your no consultation appointment. To get your smart planning
in place, call eight sixty six three nine.
Speaker 2 (13:29):
Oh twelve fifty two.
Speaker 8 (13:30):
That's eight six six three nine oh twelve fifty two.
Speaker 6 (13:36):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. You can always find
out more on the website Presleywealthmanagement dot com. If you
want to have a conversation with them, you can call
them two two five seven nine to one fifty seven
seventy three. That's seven nine to one fifty seven seventy three.
Easiest thing to remember, I think is just meet with
usnow dot com. Set up your own time, have a
fifteen to twenty minute conversation with the team. Here's my question,
(13:58):
here's my concerns, what do you think, and then you're
actually talking to somebody. That's a great way to do it.
I think meet with us NOOW dot com. I'm Markelley,
Glad you're with us. We're gonna talk about some of
the unknowns when it comes to retirement, and I think
these unknowns have probably been the same for all retirees, right.
I think all retirees at the end of the day
don't know how long they're gonna be here. They don't
(14:18):
know if them or their spouse will have health issues
or a family member will have health issues that affects
their retirement. We don't know where the markets are gonna go.
They're gonna go up, they're gonna down, they're gonna be flat.
We just don't know. Things are always changing in that area.
And then taxes, certainly, we talk taxes a lot on
this program, So there's a lot up in the air
when it comes to all these things. And all of
these are really unknowns. We don't really know what's going
(14:39):
to happen. And you know, Matt, when you think about longevity,
I would think longevity is probably the number one risk
to retirement because you can, you do have the opportunity
to maybe not live long enough or maybe you live
too long. But we don't know. And when you guys
create that smart retirement plan for your clients, you don't
know the end date.
Speaker 2 (15:00):
Mark. I know you you asked Matt about this, but
if you don't mind, I'd like to take a second
to talk about this because I recently had a conversation
with a good friend of mine. Their name is Pat
and Joe, and Joe is having to make decisions right
now because her husband recently fell in their primary home.
(15:22):
It was in North Carolina, and it took an hour
and a half for the emergency responders to get there
because of where they're located. And then it was very
difficult to get pat out of the house because of
the way the house is designed. So they're having to
make a lot of changes to their life right now.
And one of the things that Joe told me was
(15:44):
she said, you know, Christy, we just lived too long.
We outlived our plan. And because now they're they're having
to move, they're getting a mortgage, you know, to move
because they realize it not actually say for them to
stay in their home. And when she said to me,
(16:07):
we've lived too long, that resonated with me because honestly,
I hear all the time talking with clients that they
believe that they're going to live until they're eighty, you know,
seventy five eighty. But what we're seeing is we're seeing
people live so much longer. And to me, a huge
concern in building a plan should be what if you
(16:30):
just live too long? I know Matt has experienced that
with his parents.
Speaker 4 (16:34):
Yeah, I mean they're not you know whipper snappers. Mom
and dad will be eighty four this year. I think
that there's two things that I noticed. Number One, I
think people underestimate how long one of them will live.
And I'll tell you what stands out to me, Christy.
So when I go to my parents' Independence and Slash
assisted living facility, what's the one thing that really jumps
(16:56):
out to me?
Speaker 2 (16:57):
The age of the people that are there.
Speaker 4 (16:59):
The age is that but it's mostly women. The women
outnumber men six to one, There's no doubt about it.
I sitting down having lunch with my parents on a
weekend and I just looked around the room and I
noticed my dad's one of the few men there. So, guys,
I'm telling you, if you don't have a plan in place,
what ends up happening is she not only is having
(17:22):
to spend more money, because just because one person dies
doesn't mean the expenses get cut in half.
Speaker 1 (17:27):
You know, the.
Speaker 2 (17:27):
Government the income gets cut in half too.
Speaker 4 (17:30):
Oftentimes the income gets cut in half. And you know,
if you're like a retired teacher and the windfall animation
still applies to you because you retired years ago, your
income can get cut in more than half. But the
government doesn't suddenly say, oh, your property taxes are lower
because there's just one person in the house. Not too
that's a reform that needs to happen. But if you
(17:51):
don't plan, longevity can absolutely be your worst enemy. Or
an early death of one of the spouses can be
a big.
Speaker 2 (18:00):
And for me, when I think about the risk that
we're looking at in building a long term retirement plan,
I think taxes is one of the biggest risk, But
the second biggest risk is going to be longevity.
Speaker 7 (18:11):
Oh absolutely well.
Speaker 2 (18:13):
And recently I read a study that Fidelity had put
out saying that the average cost that a couple will
pay for long term care services or health care services
is over three hundred thousand dollars. Wow. My question would be,
do you have a plan for that, because.
Speaker 6 (18:33):
That's a huge part is healthcare costs. Longevity and healthcare costs,
that's huge. That's what another fary. We don't know. That's
why it's an unknown.
Speaker 1 (18:40):
We don't know if we will get sick, our spouse
will get sick, our family member gets sick. We just
don't know. How do you plan for that in your
smart program.
Speaker 4 (18:48):
The people who later in life tend to better whether
these changes we're talking about are those who took a
portion of their money and created some income. Because when
you're younger, hubnd a million bucks. Yes, it's the dollar
amount that matters, But take it from somebody who's done
this a long time. When you're eighty three, almost eighty four,
(19:08):
like my parents, when you're seventy nine, like my next
door neighbor. How much money you have is actually less
important to the quality of your life and your retirement
than your income is create some stable income. Remember we
talk about the smart plan that we specialize in the
first letter is s sources of income when you first retire,
(19:31):
do you have a plan to have a source or
sources of income?
Speaker 7 (19:35):
Where's your mailbox money? It'll matter, It'll matter a lot.
Speaker 4 (19:39):
When you go through some tough times, bad markets, sickness,
things like that, because many of these plans have the
ability to pay you double for a short period of time,
should and if you or your spouse be ill. So
it's all part of our planning in this short term.
How much money do you have matters in the long term.
How much income is what gives you some stability when
(19:59):
you reach the later years and can really build a
fortress around your spouse should something happen to you and
vice versa.
Speaker 1 (20:07):
We can tell you more.
Speaker 4 (20:08):
Love to sit down with you where at seven nine
one five seven seven three. That's seven nine one five
seven seven three. You'll get the machine. Just leave us
the best way to contact you, and we'll reach back
out early next week and set up a time to
get together.
Speaker 6 (20:22):
You know, Christy, we started the show maybe ten years
ago when you and I started doing it together. And
that that number from the healthcare where you just said
three hundred thousand for the average healthy sixty five year
old couple will need for the end of their life,
not including long term care, that number was two hundred
and twenty thousand dollars ten years ago.
Speaker 1 (20:39):
So that mean in ten more years it's actually four
hundred thousand. I mean easily. I mean it's crazy.
Speaker 2 (20:44):
Well, that's why you see so many like assisted living
facilities pop up our community.
Speaker 1 (20:50):
They're not getting smaller I can they get.
Speaker 2 (20:51):
They're getting And they just opened one down the street.
I pass it every morning, come into work, and it's
and it's amazing to me because they're very, very nice facilities,
and you start thinking about how so many people can
afford them. Well, they afford them because back then, you know,
twenty years ago, people didn't ever think they were going
(21:13):
to need long term care, but they typically didn't live
with the debt that we live in today. They also
would leaving money to their children twenty years ago was
extremely important.
Speaker 7 (21:27):
So now they're enough money for me.
Speaker 2 (21:29):
So now they have enough money to pay for these
facilities because they were saving to leave to the children.
I mean, it's just a shift and where the money
is flowing. And so to me, having a plan that
is going to prepare you for life situations is extremely important.
And unfortunately, most people believe that Medicare is going to
(21:49):
cover the bulk of the cost of that care, and
in reality it doesn't. And you need to understand what
Medicare will pay for and what they won't pay for.
Speaker 1 (22:01):
I bet Presley could help him figure that out.
Speaker 2 (22:03):
Yeah, she would love to.
Speaker 1 (22:04):
You know.
Speaker 2 (22:04):
I had a conversation with a client last week. He
had an accident. He fell, hit his head and he
had spinal injury. They've done surgery on him twice, and
they moved him to a skilled nursing facility last week.
But he told me that the doctors have told him
(22:25):
with that type of injury, he could need care for
a minimum of a year wow before he gets back
to even being able to get up and walk around
and take care of himself by himself. And the question was, Okay,
how are we going to pay for that because Medicare
is only going to pay for that cost for about
one hundred days with co payments in his plan, So
(22:47):
how am I going to pay for that care? That's
where we were able to step in and say, you know,
don't worry. We've built a plan. We've got you taken
care of. So if you don't have a plan, think
about the emotional toll you now face. Like for this client,
he's already having this emotional situation where he's being told
(23:09):
he's probably gonna need extensive care for a year minimum,
and he's wondering about his health. But then how is
that going to affect his financial plan? And then how
is that going to affect his wife? And for us
to be able to say we've got a plan for this,
it's okay, just worry about getting well.
Speaker 4 (23:28):
You.
Speaker 2 (23:28):
You can't imagine the sense of peace that it gave
me to be able to tell him that. And that's
what we want to do for you. We want to
work to build you a smart plan. Give us a
call at seven ninety one five seven seven three. Seven
ninety one five seven seven three are going to meet
with usnow dot com.
Speaker 1 (23:46):
We're talking about the big unknowns, longevity and healthcare.
Speaker 6 (23:49):
We come back, We're gonna have to talk about the
unknowns of the market and taxis back with more with
Christian Matt right after this.
Speaker 1 (23:55):
This is your money matter.
Speaker 9 (24:00):
Sam might need a loan soon from you. We have
over thirty four trillion dollars in national debt. Where do
you think the money to pay for that's going to
come from? Taxes? Believe it or not, taxes are at
historic lows right now, but how much longer will that last?
A roth Ira conversion might be a good option when
planning for your retirement because you can pay lower taxes
(24:20):
now and avoid potentially higher taxes later. Christy Smith and
the team at the Presley Group have seen taxes rise
and fall. They know what options you have to potentially
reduce the amount of taxes you pay in retirement. Call
the team at the Presley Group and schedule your tax
analysis today. Eight sixty six three nine zero twelve fifty two.
That's eight six six three nine zero one two five
(24:40):
to two. Uncle Sam needs money. Don't let him take
it from you. Eight six six three nine zero twelve
fifty two. Investment advisory services offer through a wealth management
LLC A retch should investment advisor. Investing involves risk. Always
consult with the qualifying tax advisor before making any decisions
regarding a roth conversion, as there may be additional tax considerations.
Speaker 8 (25:00):
If you aren't able to listen to this show in
its entirety, go to Presleywealthmanagement dot com to listen to
this and past radio shows. Otherwise, stick around to find
out how Presley Wealth Management will help you retire with confidence.
Speaker 6 (25:17):
Got to within us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management two
two five seven nine one fifty seven seventy three. If
you have questions, well, you know what, I think we've
got enough to retire? I think I don't know, but
I think why not find out? Might be the most
important phone call you make, and there's no cost. Seven
nine to one fifty seven seventy three. Presley Wealth Management
(25:38):
here to help you figure out where you are on
that road to retire.
Speaker 1 (25:40):
But can I retire? Do we have enough?
Speaker 5 (25:42):
Do we not?
Speaker 1 (25:42):
How do we fix it if we don't? If we do?
Do we want to retire? Do we want to keep working?
A lot of questions?
Speaker 6 (25:47):
Seven nine one fifty seven seventy three, and of course
you can always go to meet with us now dot com.
Set up a time to chat with the team. Meet
with usnow dot com. I'm Mark Kelly Glader with us.
We're talking about the big unknowns that all of us
will face. There is no question one. We talked longevity, right,
we don't know how long we're going to be here.
We don't how long our spouse is going to be here.
How do we plan for that? Healthcare costs, Holy cow,
those have been going up. I think when we were
(26:08):
talking inflation back in the day of you know, on eight, nine, ten, eleven,
twelve of zero one percent that all of this, but
healthcare is still going up six to seven percent. That
has not stopped. So healthcare is still crazy expensive. And
then you get into long term care where Medicare doesn't
cover most of that only covers for a little bit
of time. So that's a huge challenge.
Speaker 1 (26:28):
All right.
Speaker 6 (26:28):
The other two big unknown we're going to talk about
in this segment the markets and taxes. So, Matt, the markets,
that is one of those things that I think we
all wish the markets do nothing but go up, but
they don't just go up in a straight line.
Speaker 1 (26:41):
They go up, they go down, they go flat.
Speaker 6 (26:43):
And that's where I think it comes back to your
first part of your smart program, the income. We don't
want to base everything on the markets. Okay, the markets
were great, I guess we can go take that trip. Oh,
the markets are bad. I guess we can't do anything
this year. We don't want that to be based on
our retirement.
Speaker 4 (26:57):
I like to talk about three very important letters. First
letter is S, the second letter is O, and the
third letter is R S R. We obsess about this
here at Presley Wealth Management and its sequence of returns.
I wish this were TV for a moment so I
(27:18):
could show you what an Excel spreadsheet to demonstrate this.
But Christy, you've seen us together talk about this many
many many times. Sequence of returns is very simple. If
you have five hundred thousand dollars and you plan to
draw out, say twenty five thousand a year, to live
on five percent. Right, if you retire and the stock
(27:38):
market is your friend, if you retire into a bull market,
that is, you retire into a rock solid sequence of returns,
there's a very good chance, right, Christy, that the amount
of money that you're taking out each year is more
than being replaced by market returns. For example, if you
had retired in two thousand and sixteen to seventeen was great,
(28:01):
seventeen to eighteen, eighteen to nineteen, nineteen to twenty. Of course,
twenty was a bath, right, but it came back quickly
after COVID. But for many of you who have retired recently,
you've had nothing but a solid sequence of returns. But
when I came to work here in two thousand and eight,
early two thousand and nine, I saw people in this
office who had been somewhere else, who didn't have a plan,
(28:23):
didn't have a plan to hedge risk, and they had
been exposed to a very cruel sequence of returns because
in two thousand and eight the stock market dropped thirty
eight percent, and the pain didn't end. It went down
another fifteen percent and bottomed March of two thousand and nine.
I can still see those people around that table, Christy saying, well,
(28:43):
our broker told us just hang in there and reduced
the amount where withdrawing or start renting out the condo
in Gulf Shores and will be okay. They did not
take into account sequence of return, so we don't know
if you're going to retire into a bull or a bear,
So what do we do?
Speaker 7 (29:01):
We plan for both.
Speaker 4 (29:03):
You want some money that's exposed to the market and
can really do well, but you need some money that
can actively hedge the risk. And you need a floor,
a foundation of money that if the market's good, you
can make some money. If it's bad, you're not going
to get killed. It's all about range of return. Notice
I didn't say rate of return. Too many of you
(29:26):
are obsessed with your rate of return.
Speaker 1 (29:28):
I am.
Speaker 4 (29:29):
I'm obsessed with my rate of return because I'm fifty
eight years old. I'm not retiring tomorrow. So if I
can make seventy percent in a year, who because if
I lose fifty, eh, I'll make it back. But if
you're close to retiring or recently in retiring, stop obsessing
about your rate of return. Be more obsessed about your range.
(29:49):
What do I mean by range? If the market can
go up thirty, it can go down thirty, you would
probably be better off with a lower range of return. Hey,
I'm going to be happy making eighteen even if the
market may thirty, because if it drops thirty, I want
my base to be around fifteen.
Speaker 1 (30:05):
Percent.
Speaker 4 (30:06):
So we design plans that smooth out the highs and
lows to help you weather any type of tough sequence
of returns. So again, if there's one message we can
leave you, be obsessed when you're close to retiring, or
when you're recently retired, be obsessed with your range of return.
I'll be glad to show you that spreadsheet and talk
(30:27):
more about this when you come in where it's seven
nine one five seven seven three. A lower rate of
return when you're withdrawing from your savings can actually mean
a bigger balance down the road. I'm gonna say that again,
when you have a bad sequence of returns, lower rates
(30:47):
of return can actually mean more money. Why because you're
not getting slaughtered when things get bad. We'll show you
two two five seven nine one five seven seven three.
And as Mark was going to say, there's no cost,
no obligation. You can even go to meet with usnow
dot com and set a time for us to chatte
on the phone and set up a meeting.
Speaker 6 (31:05):
Well, Chris, do you think about it? When people come
in for the first time, typically say, like Matt, they're
fifty eight. Let's say, for example, they're going to retire
at sixty five, most of their money, almost all of
their money is sitting in four o one ks and
iras well. Once you retire, it's not like you leave
all your money at risk. I would, And you don't
have one hundred. Your clients probably don't have one hundred
percent of their money in the market, I would guess.
Speaker 1 (31:24):
Is that fair to say?
Speaker 9 (31:25):
Yeah?
Speaker 2 (31:26):
Well, typically what we want to do is we want
to create a risk plan, and we use a risk number,
and so basically, if someone is sixty years old and
one hundred is the highest level of risk, we're going
to have about sixty percent of their money at risk
and about forty percent of their money in safe environments.
(31:46):
So you want to think about not only diversifying in
the stock market, but you also want to diversify in
your safer environments as well. So we want to look
at that and build a long term plan. A lot
of times what we'll do is we'll use the safe
money to build a plan where we're generating income, and
that safe money'll generate that income for ten twelve years
(32:09):
while their risk portion of money is growing, and therefore,
when the safe money runs out in you know, ten twelve,
thirteen years, we've grown enough in their risk bucket that
we're able to replenish the safe money and just start over.
Because you've got to think about the effects of ups
and downs when it comes to the stock market. You know,
(32:31):
if if you lose thirty percent, you you don't make
thirty percent to get back even. No, because you're making
that thirty percent on less money. It basically takes double
the amount of returns fifty to get back to each
to get back to even. And so we want to
build a plan that is going to allow our clients
(32:52):
to not worry about where they're getting their income, because
think about it, in retirement there, if there's income is
the name of the game in retirement. So what we
don't want to do is we don't want to be
the company that says, oh, we're having a down market
right now, let's lower your income. Let's change your right
change it, Yes, let's change your plan. No, we want
(33:14):
to build a plan that is that is poised to
to succeed and get you through those storms where you're
not having to make emotional decisions, because I think that's
one of the biggest problems people go through in retirement
when they're living on their money is they go through
this emotional toll of you know, I do I need
(33:36):
to change my income?
Speaker 1 (33:37):
You know?
Speaker 2 (33:38):
Am I? Am I taking too much income? Often we're
able because of the way that we will ladder our investments.
We're able to say, hey, you can actually take out
a little bit more. And that's always a good conversation.
So I think having a real plan that understands risk,
taking risk into consideration is extremely important.
Speaker 6 (33:59):
Final minute of this segment, we're gonna come back. We're
gonna have a big conversation in our final segment. But
you think about taxes, taxes. If you could save money
in taxes, it's almost better than a return in the market.
Speaker 5 (34:10):
Could be say that one more time, mark.
Speaker 1 (34:12):
So savings from taxes could be bigger return on your
money than the market.
Speaker 7 (34:18):
Absolutely, here's why I thought, that's what you said.
Speaker 5 (34:21):
Here's why.
Speaker 4 (34:22):
If you have five hundred thousand dollars and you want
to take out twenty five thousand, if it's all taxable,
then you have to take out twenty five thousand plus
the taxes, So you may have to take out thirty
one thousand to get twenty five Well, that subjects more
of your money to going down.
Speaker 7 (34:40):
If all of that money is tax free and.
Speaker 4 (34:42):
You need twenty five thousand, you take twenty five, that
means you're taking less money.
Speaker 5 (34:47):
It gives your money more longevity.
Speaker 2 (34:49):
Well let alone how a big withdrawal can affect your
IRMA penalties for your medicare? What are you paying for
your medicare? Part B absolutely benefits, So there is a
ripple effects. So to me, tax planning as soon as possible,
as as young as possible, is extremely important.
Speaker 1 (35:06):
Mark seven nine to one fifty seven seventy three.
Speaker 6 (35:09):
If you'd like to call the team at Pressley Wealth
Management two two five seven nine to one fifty seven
seventy three. And of course you can always go to
meet with us now dot com. I think it's the
most important thing you could do today, probably for the
because we're talking to the next twenty thirty years of
your life. Seven nine to one fifty seven seventy three,
or meet with us now dot com. Headed to our
final segment of Today's Your Money Matters with Christy Smith
and Matt Kennedy Presley Wealth Management.
Speaker 1 (35:30):
We're back bight after.
Speaker 8 (35:31):
This is the price tag on everything giving you sticker shock,
from groceries to gas. The cost of living is skyrocketing.
But if you think inflation is painful, now just wait
until you retire. Easy impact of inflation, and start planning
now for your retirement. Called Presley Wealth Management at eight
(35:51):
six six three nine oh twelve fifty two. That's eight
six six three nine oh twelve fifty two.
Speaker 5 (36:00):
Stop for a moment, think about this.
Speaker 4 (36:02):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought. Remember, you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should? At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(36:23):
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, 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 ninet one five
(36:44):
seven seven three.
Speaker 8 (36:45):
Investment advisory services offer through a wealth management LLC a
registered investment advisor. Investing involves risk. Always consult with the
qualified tax advisor before making any decisions regarding your ROTH conversion,
as there may be additional tax considerationations. Christy Smith of
Presley Wealth Management wants to advocate for you making sure
(37:07):
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 bit for you. You
won't know until you call eight six six three nine
oh twelve fifty two.
Speaker 1 (37:24):
Welcome back to your.
Speaker 6 (37:25):
Money Matters with Christy Smith and Matt Kennedy of Presley
Wealth Management.
Speaker 1 (37:28):
I'm Mark Lley. Glad you're with us again.
Speaker 6 (37:29):
You can go go to the website Presleywealth Management dot
com to find out more about the team. If you
want to have a conversation with it. You got some questions,
meet with usnow dot com. Totally complimentary chat with the team.
Meet with us now dot com. We're gonna finish up
today's show with the mail bag, and this is questions
that have come from people calling in, people coming in,
people attending events, and we just kind of save these
(37:50):
questions until we feel like, hey, we had a new
segment just on mail bag.
Speaker 1 (37:54):
Here you go.
Speaker 6 (37:55):
First question, Sally and Baton Rouge and I will say this,
and I say it every time we do this. If
you really want the entire answer, you need to have
a conversation with Christy, Matt and the team. They don't
know enough to give you a complete answer, but they
can kind of take your question and kind of go
where they want to with it. But they're not going
to give Sally, they're not going to give you the
exactly the number you need or the question you have,
(38:16):
give you a full answer because they don't know the
full story.
Speaker 1 (38:19):
So I always think you should call.
Speaker 6 (38:20):
Them two two five, seven, nine to one fifty seven
seventy three, seven nine to one fifty seven seventy three.
But that being said, we enjoy the mailbag segment. So Christy,
you're up. This comes from Sally and beat and Rouge.
First question, I'm still quite a few years away from retirement,
but I have no idea what my savings target should be.
How much might I need to save so I can
have a comfortable retirement. So pretty good example there, Christy.
(38:43):
You don't have a great information to say, well, Sally,
you need one hundred thousand dollars more in You're good,
you don't know all that yet, But that's kind of
people get caught up on, hey, what's my number.
Speaker 1 (38:53):
Kind of a thing.
Speaker 2 (38:54):
Yeah, you're exactly right, you know. I think the first
step to be an able to answer sally question is
to find out what are going to be her goals
in retirement. For example, how much money do you expect
to need every month to live on in retirement? How
will you coordinate any social security or pension benefits in
(39:16):
your long term retirement? Do you have plans to travel
in retirement? Do you want to give to your children
in retirement? There is no set number. Every single person's
situation is completely different. So what we typically do is
we sit down and we have a conversation. Diving deep
in our serve model means we're going to understand what
(39:38):
are your goals. Once we understand what are your goals
and what are your sources of income going to be,
then we can back in the math and we can
figure out, okay, this is what your savings goals should
be to help accomplish those goals. But again, you know
it's funny because I remember the commercials on TV what's
your number? And the reality he is as you would
(40:00):
you would read here. You know, like a million dollars
is your number? You know that should be the right number.
In reality, there is no right number because each one
of you is unique. Each one of you has your
own goals and objectives, and so we want to work
together with you and create your own personalized plan. We
(40:23):
call it our smart plan, and by doing so, we
would be able to show you, Okay, this is how
much you should consider saving to help reach that goal
in retirement. But then we take it a step further
and say how should you save it? Should you save
it in pre tax money, or maybe should you consider
saving in raw ray, maybe in IUL where you can
(40:45):
pull out tax free income. You know, it's not about
just how much you save, it's where you save as well.
Speaker 7 (40:52):
That's such a good point.
Speaker 4 (40:53):
Uh, don't get hung up on a number, because let's
just pretend that you need an extra thousand dollars a
month to live on. Well, if it's all pre tax money,
say from an IRA or a four to Z one K,
and you have to pay twenty percent tax on that,
then you have to take out more than one thousand dollars,
going to have to take out more like twelve hundred. Right,
(41:13):
But if it's tax free money from like a life
insurance policy or a wroth IRA, then guess what. If
you're not paying the taxes, you have to withdraw less money.
If you have to withdraw less money each month, what happens, Christy?
Your money lasts longer. So it's not just about escaping
the tax man. It's also about your money lasting longer.
Speaker 1 (41:35):
Yeah, there's no doubt.
Speaker 6 (41:36):
I mean, Christian Matt's sat down with people who had
a million or two and it wasn't enough. They sat
down with people who had a quarter million, it was plenty.
It's about you and your lifestyle. Two two, five, seven
nine to one fifty seven seventy three sal If you'd
like to sit down and have a conversation the next
question Tom and Denham Spring says this, Matt, are rental
properties a good source of income for my retirement?
Speaker 1 (41:54):
Uh?
Speaker 4 (41:55):
Okay, A couple of things here to keep in mind.
Number one are rental property is a good source of income.
Forget about the money, think about the emotions of it.
If you don't want to deal with it and you
don't want the headache, then it may not be for you.
Of course, you can get a property manager and things
like that. Here's the most important thing to remember, though,
If you are actively involved, if you materially participate in
(42:17):
the operation of the property, and you have an office
setup and all of that, good chance that that is
going to actually count as earned income. If you're very
hands off, then it is passive income, which could be
tax advantaged. I'm not a CPA, Chris, He's not a CPA.
Before you consider renting, absolutely, talk to a CPA, talk
(42:38):
to your tax professional. But if done properly, it actually
can be a tax advantage. But you have to accept
the responsibility that goes along with rental property.
Speaker 6 (42:49):
Tom again two two five, seven nine, one fifty seven
seventy three, or meet with us now dot com to
have a conversation with the team at Presley Wealth Management.
All right, next question, Christy goes to you. It's in Prairieville.
I think I have a pretty good handle on our
financial plan for retirement, but I'm worried that I'm missing something.
Do you have some sort of retirement to do list
or a checklist to help me make sure that I'm
(43:10):
not forgetting something, Well, we.
Speaker 1 (43:13):
Do have a.
Speaker 2 (43:15):
Checklist, yes, And typically we will meet with a client
or prospect and start working on building their plan. Because
there's a lot of moving pieces to this retirement puzzle,
and so what we're going to want to do is
we're going to want to gather the information. So typically
we'll say, Okay, these are the things we'd like for
you to bring in for your first visit. And as
(43:36):
we start putting the pieces of the puzzle together, we
may need additional information. So we have a homework checklist
that will give them saying hey, can you get this, this,
and this? I would say the first thing you should
start looking at or what is going to be your
budget in retirement. You would be surprised how many of
you don't know how much you plan to spend in retirement.
(43:56):
Then I would go through and decide, Okay, how am
I going to take my Social Security benefits? Do I
need to take them at sixty two? Do I need
to wait? You know, because gathering all of those types
of like pieces of the puzzle are really important. But
then I say, it's even important to meet with someone
who can help guide you. Even if you don't need
to hire them long term. Meet with them and gain knowledge.
(44:20):
You know, knowledge is powerful. I always say on the radio,
Matt used to hate it when I would say this,
I say, you don't know what you don't know. Now
he actually says, it's okay for you to say that
because I get it now.
Speaker 5 (44:30):
I never hated it.
Speaker 2 (44:31):
I just was like, now you would pick on it,
that's so tacky. It's not. You don't know what you
don't know, and it's up to you to learn. So
knowledge is powerful. Meet with someone who works with clients
just like we do. We'd love to help you and
start working on putting the pieces of the puzzle together.
Speaker 4 (44:46):
It's all about planning at the end of the day.
It's not about how much money you have or don't have.
It's about a plan. And remember there's five areas we
want to focus on when you sit down and talk
with us. It's not about well, here, buy this. It's
about where where will your income come from in retirement?
What are your sources of income? How do you maximize them?
(45:06):
Got to be smart right sources of income? How do
you deal with medical and medicare? What about advanced planning?
Do you have wills and powers of attorney at ceterund place.
Do you have a plan to hedge risk? Can you
focus on lower risk and retirement? And what are you
going to do about the ultimate GETUO which is taxation?
(45:26):
We can help where at seven nine one five seven
seven three seven nine one five seven seven three or
visit us online set your online appointment at meet with
us now dot com.
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 8 (45:46):
Investment advisory products and services made available through AE Wealth
Management llc AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all first products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Pressley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products.
Speaker 2 (46:23):
Never securities or investments.
Speaker 8 (46:25):
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. 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
(46:45):
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 sources believed to
be reliable, but accuracy and completeness cannot be guaranteed by
the Presley Group. This radio show is a paid placement
When the news is national.
Speaker 2 (00:01):
SOB, security system volatility, global turmoil, interest rates, Rock Dan
Wall Street.
Speaker 3 (00:05):
Your money matters. When it's Louisiana local serving the Greater
Baton Rouge area, your money matters. And when it's your
time to retire. Presley Wealth Management presents your Money Matters
with Christy Smith.
Speaker 2 (00:20):
In reality, we're always going to have positives and negatives
going on in retirement. And that's where I believe it's
so important that you do have a full fledged retirement plan.
Speaker 4 (00:30):
And Matt Kennedy, maybe you're thinking, hmm, should I take
Social Security at sixty two, at sixty seven, at seventy
These are things you don't do every day.
Speaker 5 (00:38):
It's what we do every day.
Speaker 3 (00:40):
The conversation starts now this is your money Matters.
Speaker 1 (00:49):
Welcome to your money Matters. I'm Mark Kelly.
Speaker 6 (00:52):
It alongside the founder of Presley Wealth Management, that is
Christy Smith. Also with us, Matt Kennedy, matt'smen, with Christie's
team now for over a decade. Glad you're with us.
We talk retirement. Can I retire? Do we have enough?
Or we're gonna be okay? Or our loved ones to
be okay at the end of the day. Do we
have enough? Can we retire and live our lifestyle that
we've always dreamed of in retirement?
Speaker 1 (01:09):
Don't know?
Speaker 6 (01:10):
All you have to do is call the team at
Presley Wealth Management to find out. It's two two five
seven nine to one fifty seven seventy three two two
five seven nine one fifty seven seventy three.
Speaker 1 (01:21):
And of course I always think it's easy.
Speaker 6 (01:22):
You always go to the website Presleywealthmanagement dot com Presleywealthmanagement
dot com. But if you really want to talk to him,
and an easy way to do it is just go
to meet with us now dot com. Have a fifteen
minute twenty minute phone call, have a conversation, your your concerns,
your questions, and then that way you're actually talking to somebody,
they can ask you follow up questions. You can ask
them follow up questions. That's really how you get to.
Speaker 1 (01:42):
The nitty gritty.
Speaker 6 (01:43):
Are you good? Are you not good? Meet with us
now dot com. Christy Matt, Welcome to the show. And Christy,
there's a whole lot going on in our government these days.
Speaker 1 (01:53):
We certainly know that the taxes has been a big deal.
Speaker 6 (01:55):
We've been talking about taxes on the show for what
a decade, wouldn't you say.
Speaker 2 (01:58):
Mm hmmm, yeah, definitely.
Speaker 6 (02:00):
So with this new tax agenda, the twenty seventeen Tax
Cuts and Jobs Act, Trump put it in in Trump
one point oh if you will. Now we're in Trump
two point zero, and he has said he's going to
continue that. There's a lot of little things in this thing, though,
and I haven't started, you know, I'm sixty five.
Speaker 1 (02:15):
I haven't started.
Speaker 6 (02:16):
So scaredy yet, I'm all in, let's get rid of
federal SOB scurity tax.
Speaker 1 (02:19):
But there's a lot going on. What's your take on
some of these things?
Speaker 2 (02:23):
Well, I think that if he is able to get
it passed, it probably wouldn't be till the end of
this year. I don't think it's going to happen as
quickly as many would like to see it happen.
Speaker 6 (02:32):
So you think he's waiting till I start it, then
he would put it into play because he doesn't care.
Speaker 2 (02:36):
Yeah, maybe so. Well, I think in theory, what we
would want to do is is we would want to
make sure we're continuing to tax plan with our clients,
just because we don't exactly know what's going to go through.
I do not believe that they will get anything changed
like set in Stone in the near future. I think
(02:58):
it's going to be later in the year before we do.
And with that said, I think it's really important to
understand even if he did get the you know, tax
cuts that he's pushing through to pass, at some point,
taxes will have to go up again, and so it's
it's a matter of do we pay now or do
(03:20):
we pay later. And for our clients, we want to
constantly tax plan. You know, one of the biggest issues
we see in retirement is taxes. Mark, did you know
a million dollars? People will come to us and meet
with us for the first time and they're excited because
they have a million dollars in their IRA, and I say, well,
how much of that million dollars do you actually have?
(03:41):
Because think about it, that's one of the biggest debts
you're going to have is the irs with a million
dollar IRA. So typically we're going to say, Okay, you
don't really have a million dollars, you really only have
about seven hundred thousand, and so we always want to
work on building an efficient tax plan. For many of
our clients when they retire, it's not as much of
(04:02):
an issue when they get older and they're forced to
take required distributions. That's when we see Uncle Sam, you know,
really hurt our clients. And especially if we have a
husband and wife and one of them passes away and
now we have a single taxpayer being required to take
required minimum distribution at age seventy five, and they're now
(04:26):
having to pay more in taxes because that distribution isn't
you know, it's not any lower because there's only one person.
So tax planning is the key, and we talk about,
you know, ways that we can tax plan, and there's
so many things that we can do. Most people have
heard of a Roth conversion, but that is not the
only tax strategy available.
Speaker 6 (04:47):
So you think about this taxes and certainly the twenty
seventy Tax Cuts and Jobs Act, and why it's so
important is because it actually sunsets at the end of
this year. And so Trump certainly has said he will
try to continue that, but at the end of the day,
it's Congress's decision. And Matt, I'd like your take on that,
because Christy said, look, we know we taxes have to
go up at some point. The one thing is we
had four years of not knowing anything that was going on.
Now we have four years of maybe knowing way too
(05:09):
much it's going on, and we start giving money back
to the people and the economy starts booming. We can
actually fight the debt in a different way other than taxes.
I don't is that even possible.
Speaker 4 (05:20):
I'm not sure about the net impact of tariffs, something
need to study up on.
Speaker 1 (05:25):
But I do know this. I haven't voted.
Speaker 4 (05:28):
I personally have not voted yes to any new tax
in thirty years. When it comes up on the ballot
in my parish, Nope, When it comes up for the state, Nope.
No renewals. I'll typically vote yes too. The reason I've
been very staunched for thirty years and said nope is
exactly what Doge is uncovering. There is so much fraud,
There is so much waste. By being able to trim
(05:51):
out the junt not trim out, take a chainsaw and
cut out so much of the waste.
Speaker 1 (05:56):
And fraud, that alone would.
Speaker 4 (05:59):
Be a tax cut from many Americans right there, Even
if the tax brackets don't change, just cutting out the
fraud would help reduce the deficit dramatically. But there's pain, though, Christy,
because hundreds of thousands of people are gonna get laid
off because they've been not showing up at work, not
doing anything. And the short term impact on the market
and the economy could actually be damaging. But I think
(06:22):
it's for the greater good in the long term.
Speaker 1 (06:23):
Trump said.
Speaker 6 (06:24):
He said, Okay, so if we go find a trillion
dollars from by Doze that Matt was just talking about
and tariffs, we get a trillion there. Now we're spending
two trillion, we're getting bringing in two trillion. There's no inflation.
I don't know if that's right either, because I'm far
from an economy.
Speaker 4 (06:37):
I just need to understand how tariff's impact us better.
I'm just confessing it. I'm not a terrific expert. I
guess we need to book a terrific expert on the
show and ask them. You know.
Speaker 6 (06:46):
Yeah, so, hey, here's a deal. If you have any
questions about where you are, boy, what about taxes? How
will that affect us in retirement? Meet with usnow dot com.
You talk with Christy Matt and the team at Presley
Wealth Management. There's no cost, there's no obligation, there's no
pressure either. There's no judgment either. Really it's about you.
How can they help. If they can, they certainly tell you.
And if they can't, they'll tell you that as well.
But I think you can get some answers just by
having a quick conversation with the team and then figure
(07:08):
out where to go from there.
Speaker 1 (07:09):
Meet with us now dot com.
Speaker 6 (07:12):
So you think about all these this tax policy twenty seventeen,
tax cuts and jobs actually sunsets at the end of
the year, and there's a lot going on. The no
tax on tips, no tax on overtime pay, no tax
on senior Social Security. There's a lot of moving parts here.
And it's one of the things Christy, we always talk about.
We don't have control over the tax brackets, what dollar
amounts going to this percent, the twelve percent, twenty four
(07:34):
or thirty six, whatever it is. Right, we don't control
any of that, but we do, with your help, have
control over when and how we attack these taxes.
Speaker 2 (07:42):
Right, yeah, absolutely. And the thing is is that you know,
while President Trump would like to get these tax cuts past,
we know he isn't the one who can make it happen.
You know, Congress is in charge of that policy. And
so I think right now it's it's just a wait
and see in terms of what is actually going to happen.
(08:04):
I mean, we we think about taxes on Social Security
benefits and wow, I'm going to pay taxes on Social
Security benefits. I mean, many people don't even realize that
they will actually pay taxes when there are social Security benefits,
because I don't think social Security benefits were actually ever
intended to be taxed, since we're taxed already on them.
Speaker 7 (08:22):
They weren't while we're working, you know.
Speaker 2 (08:25):
And so I do one hundred percent believe that we
won't see uh, this tax bill passed in the next
you know month. I think it's going to take time,
and I think it's important to understand that, even if
they do get things past, you know, in this year,
it's important to know that, you know, four or five
(08:46):
years down the road, we can see a whole new
tax policy you know, come out, and so it's important
to plan. You know, people that are self employed, like myself,
you know, we think about an exit strategy. We think about, okay,
in you know, ten years from now, what are we
going to do with the business when we retire. Well,
(09:07):
for me, it's a simple answer. You know, I've got
Presley coming up in the wings and she hopes to
continue this legacy. But for many business owners, like think
about it, like dentist attorneys, what are they going to do?
What's their exit strategy? And honestly, there's a lot of
different tools that they can use that actually can help them.
Tax plan now, it's something that they don't need to
(09:30):
wait until they are ready to sell the business to consider.
To me, having a plan. You can always make adjustments
or tweaks to the plan, but it's important to understand
your options and actually have a plan.
Speaker 6 (09:45):
Matt I would say. It's also the same thing for
pre retirees. It's not wait till you're retired to have
a meeting with you.
Speaker 1 (09:52):
Guys.
Speaker 6 (09:52):
It's five to ten years out is a great time
to meet, sit down with you and put the plan together.
Then you have time before we actually retire. It's kind
of like playing golf. Mark you love golf, I know,
and I love this analogy.
Speaker 4 (10:04):
A slight adjustment at the t box can make tremendous
It can make a huge difference two hundred and forty
five yards down the fairway. It's like those days when
you're having a good day in golf, right and you
and you hit the ball and right down the middle.
But if you're just slightly off, now you're out of bounds.
Speaker 5 (10:22):
Same thing.
Speaker 4 (10:23):
It's because you're hitting the ball so far right. But
if you wait until you're putting, when you're already retired
or you're on the cusp of retirement, you've got a
lot less margin for error. So small adjustments now pay
big dividends down the road.
Speaker 1 (10:37):
Here's the thing.
Speaker 4 (10:38):
I think that Trump tax cuts will be extended, but
I'm like Christy, it'll take a while. But then there's
another presidential election coming up in less than four years,
and you don't know what that administration will do. So
instead of leaving it up to the unknown, work under
the present law. Get yourself in a better position, no
(10:58):
matter what Congress or a president does.
Speaker 7 (11:02):
We help with that. It's our smart retirement plan.
Speaker 4 (11:05):
We look at sources of income, how do we help
you with medical and medicare, advanced planning, managing risk, and
of course what we're talking about right now, helping you
reduce your and your family's future tax burden. Reach out
to us at seven ninety one five seven seven three.
That's two two five seven nine one five seven seven
(11:27):
three you'll get the machine, leave a message we'll contact
you back on Monday. Or if you would like to
go online and schedule a fifteen minute, no cost, no
obligation consultation, just to chat. Find out where you are.
We are at meetwith usnow dot com. That's meet with
usnow dot com.
Speaker 6 (11:43):
We've got a lot to get to your money matters
with Christy Smith and Matt Kennedy.
Speaker 1 (11:46):
Just getting started. Stay with us for back right after this.
Speaker 8 (11:50):
Does inflation have you pinching pennies? Are you reconsidering retirement plans?
Don't make any hasty decisions just yet. Come meet with
Christy Smith and At Kennedy to get started on the
right foot. Call eight sixty six three nine oh twelve
fifty two. That's eight six six three nine oh twelve
fifty two to get a free fifteen minute meeting, or
(12:12):
go to Presleywealthmanagement dot com.
Speaker 5 (12:16):
Stop for a moment, think about this.
Speaker 4 (12:18):
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. Remember you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should. At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(12:39):
world of retirement taxes.
Speaker 5 (12:40):
It's your money. You deserve to know what's at stake.
Speaker 4 (12:43):
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.
Speaker 7 (12:57):
Presley Wealth Management seven ninet one five seven.
Speaker 8 (13:00):
Investment advisory services offer through a Wealth Management LLC, a
registered investment advisor. Investing involves risk. Always consult with a
qualified tax advisor before making any decisions regarding a ROTH conversion,
as there may be additional tax considerations. Be smart when
it comes to your retirement. Presley Wealth Management has a
smart plan to help you better understand the process. Set
(13:23):
up your no consultation appointment. To get your smart planning
in place, call eight sixty six three nine.
Speaker 2 (13:29):
Oh twelve fifty two.
Speaker 8 (13:30):
That's eight six six three nine oh twelve fifty two.
Speaker 6 (13:36):
Welcome back to your money matters with Christy Smith and
Matt Kennedy of Presley Wealth Management. You can always find
out more on the website Presleywealthmanagement dot com. If you
want to have a conversation with them, you can call
them two two five seven nine to one fifty seven
seventy three. That's seven nine to one fifty seven seventy three.
Easiest thing to remember, I think is just meet with
usnow dot com. Set up your own time, have a
fifteen to twenty minute conversation with the team. Here's my question,
(13:58):
here's my concerns, what do you think, and then you're
actually talking to somebody. That's a great way to do it.
I think meet with us NOOW dot com. I'm Markelley,
Glad you're with us. We're gonna talk about some of
the unknowns when it comes to retirement, and I think
these unknowns have probably been the same for all retirees, right.
I think all retirees at the end of the day
don't know how long they're gonna be here. They don't
(14:18):
know if them or their spouse will have health issues
or a family member will have health issues that affects
their retirement. We don't know where the markets are gonna go.
They're gonna go up, they're gonna down, they're gonna be flat.
We just don't know. Things are always changing in that area.
And then taxes, certainly, we talk taxes a lot on
this program, So there's a lot up in the air
when it comes to all these things. And all of
these are really unknowns. We don't really know what's going
(14:39):
to happen. And you know, Matt, when you think about longevity,
I would think longevity is probably the number one risk
to retirement because you can, you do have the opportunity
to maybe not live long enough or maybe you live
too long. But we don't know. And when you guys
create that smart retirement plan for your clients, you don't
know the end date.
Speaker 2 (15:00):
Mark. I know you you asked Matt about this, but
if you don't mind, I'd like to take a second
to talk about this because I recently had a conversation
with a good friend of mine. Their name is Pat
and Joe, and Joe is having to make decisions right
now because her husband recently fell in their primary home.
(15:22):
It was in North Carolina, and it took an hour
and a half for the emergency responders to get there
because of where they're located. And then it was very
difficult to get pat out of the house because of
the way the house is designed. So they're having to
make a lot of changes to their life right now.
And one of the things that Joe told me was
(15:44):
she said, you know, Christy, we just lived too long.
We outlived our plan. And because now they're they're having
to move, they're getting a mortgage, you know, to move
because they realize it not actually say for them to
stay in their home. And when she said to me,
(16:07):
we've lived too long, that resonated with me because honestly,
I hear all the time talking with clients that they
believe that they're going to live until they're eighty, you know,
seventy five eighty. But what we're seeing is we're seeing
people live so much longer. And to me, a huge
concern in building a plan should be what if you
(16:30):
just live too long? I know Matt has experienced that
with his parents.
Speaker 4 (16:34):
Yeah, I mean they're not you know whipper snappers. Mom
and dad will be eighty four this year. I think
that there's two things that I noticed. Number One, I
think people underestimate how long one of them will live.
And I'll tell you what stands out to me, Christy.
So when I go to my parents' Independence and Slash
assisted living facility, what's the one thing that really jumps
(16:56):
out to me?
Speaker 2 (16:57):
The age of the people that are there.
Speaker 4 (16:59):
The age is that but it's mostly women. The women
outnumber men six to one, There's no doubt about it.
I sitting down having lunch with my parents on a
weekend and I just looked around the room and I
noticed my dad's one of the few men there. So, guys,
I'm telling you, if you don't have a plan in place,
what ends up happening is she not only is having
(17:22):
to spend more money, because just because one person dies
doesn't mean the expenses get cut in half.
Speaker 1 (17:27):
You know, the.
Speaker 2 (17:27):
Government the income gets cut in half too.
Speaker 4 (17:30):
Oftentimes the income gets cut in half. And you know,
if you're like a retired teacher and the windfall animation
still applies to you because you retired years ago, your
income can get cut in more than half. But the
government doesn't suddenly say, oh, your property taxes are lower
because there's just one person in the house. Not too
that's a reform that needs to happen. But if you
(17:51):
don't plan, longevity can absolutely be your worst enemy. Or
an early death of one of the spouses can be
a big.
Speaker 2 (18:00):
And for me, when I think about the risk that
we're looking at in building a long term retirement plan,
I think taxes is one of the biggest risk, But
the second biggest risk is going to be longevity.
Speaker 7 (18:11):
Oh absolutely well.
Speaker 2 (18:13):
And recently I read a study that Fidelity had put
out saying that the average cost that a couple will
pay for long term care services or health care services
is over three hundred thousand dollars. Wow. My question would be,
do you have a plan for that, because.
Speaker 6 (18:33):
That's a huge part is healthcare costs. Longevity and healthcare costs,
that's huge. That's what another fary. We don't know. That's
why it's an unknown.
Speaker 1 (18:40):
We don't know if we will get sick, our spouse
will get sick, our family member gets sick. We just
don't know. How do you plan for that in your
smart program.
Speaker 4 (18:48):
The people who later in life tend to better whether
these changes we're talking about are those who took a
portion of their money and created some income. Because when
you're younger, hubnd a million bucks. Yes, it's the dollar
amount that matters, But take it from somebody who's done
this a long time. When you're eighty three, almost eighty four,
(19:08):
like my parents, when you're seventy nine, like my next
door neighbor. How much money you have is actually less
important to the quality of your life and your retirement
than your income is create some stable income. Remember we
talk about the smart plan that we specialize in the
first letter is s sources of income when you first retire,
(19:31):
do you have a plan to have a source or
sources of income?
Speaker 7 (19:35):
Where's your mailbox money? It'll matter, It'll matter a lot.
Speaker 4 (19:39):
When you go through some tough times, bad markets, sickness,
things like that, because many of these plans have the
ability to pay you double for a short period of time,
should and if you or your spouse be ill. So
it's all part of our planning in this short term.
How much money do you have matters in the long term.
How much income is what gives you some stability when
(19:59):
you reach the later years and can really build a
fortress around your spouse should something happen to you and
vice versa.
Speaker 1 (20:07):
We can tell you more.
Speaker 4 (20:08):
Love to sit down with you where at seven nine
one five seven seven three. That's seven nine one five
seven seven three. You'll get the machine. Just leave us
the best way to contact you, and we'll reach back
out early next week and set up a time to
get together.
Speaker 6 (20:22):
You know, Christy, we started the show maybe ten years
ago when you and I started doing it together. And
that that number from the healthcare where you just said
three hundred thousand for the average healthy sixty five year
old couple will need for the end of their life,
not including long term care, that number was two hundred
and twenty thousand dollars ten years ago.
Speaker 1 (20:39):
So that mean in ten more years it's actually four
hundred thousand. I mean easily. I mean it's crazy.
Speaker 2 (20:44):
Well, that's why you see so many like assisted living
facilities pop up our community.
Speaker 1 (20:50):
They're not getting smaller I can they get.
Speaker 2 (20:51):
They're getting And they just opened one down the street.
I pass it every morning, come into work, and it's
and it's amazing to me because they're very, very nice facilities,
and you start thinking about how so many people can
afford them. Well, they afford them because back then, you know,
twenty years ago, people didn't ever think they were going
(21:13):
to need long term care, but they typically didn't live
with the debt that we live in today. They also
would leaving money to their children twenty years ago was
extremely important.
Speaker 7 (21:27):
So now they're enough money for me.
Speaker 2 (21:29):
So now they have enough money to pay for these
facilities because they were saving to leave to the children.
I mean, it's just a shift and where the money
is flowing. And so to me, having a plan that
is going to prepare you for life situations is extremely important.
And unfortunately, most people believe that Medicare is going to
(21:49):
cover the bulk of the cost of that care, and
in reality it doesn't. And you need to understand what
Medicare will pay for and what they won't pay for.
Speaker 1 (22:01):
I bet Presley could help him figure that out.
Speaker 2 (22:03):
Yeah, she would love to.
Speaker 1 (22:04):
You know.
Speaker 2 (22:04):
I had a conversation with a client last week. He
had an accident. He fell, hit his head and he
had spinal injury. They've done surgery on him twice, and
they moved him to a skilled nursing facility last week.
But he told me that the doctors have told him
(22:25):
with that type of injury, he could need care for
a minimum of a year wow before he gets back
to even being able to get up and walk around
and take care of himself by himself. And the question was, Okay,
how are we going to pay for that because Medicare
is only going to pay for that cost for about
one hundred days with co payments in his plan, So
(22:47):
how am I going to pay for that care? That's
where we were able to step in and say, you know,
don't worry. We've built a plan. We've got you taken
care of. So if you don't have a plan, think
about the emotional toll you now face. Like for this client,
he's already having this emotional situation where he's being told
(23:09):
he's probably gonna need extensive care for a year minimum,
and he's wondering about his health. But then how is
that going to affect his financial plan? And then how
is that going to affect his wife? And for us
to be able to say we've got a plan for this,
it's okay, just worry about getting well.
Speaker 4 (23:28):
You.
Speaker 2 (23:28):
You can't imagine the sense of peace that it gave
me to be able to tell him that. And that's
what we want to do for you. We want to
work to build you a smart plan. Give us a
call at seven ninety one five seven seven three. Seven
ninety one five seven seven three are going to meet
with usnow dot com.
Speaker 1 (23:46):
We're talking about the big unknowns, longevity and healthcare.
Speaker 6 (23:49):
We come back, We're gonna have to talk about the
unknowns of the market and taxis back with more with
Christian Matt right after this.
Speaker 1 (23:55):
This is your money matter.
Speaker 9 (24:00):
Sam might need a loan soon from you. We have
over thirty four trillion dollars in national debt. Where do
you think the money to pay for that's going to
come from? Taxes? Believe it or not, taxes are at
historic lows right now, but how much longer will that last?
A roth Ira conversion might be a good option when
planning for your retirement because you can pay lower taxes
(24:20):
now and avoid potentially higher taxes later. Christy Smith and
the team at the Presley Group have seen taxes rise
and fall. They know what options you have to potentially
reduce the amount of taxes you pay in retirement. Call
the team at the Presley Group and schedule your tax
analysis today. Eight sixty six three nine zero twelve fifty two.
That's eight six six three nine zero one two five
(24:40):
to two. Uncle Sam needs money. Don't let him take
it from you. Eight six six three nine zero twelve
fifty two. Investment advisory services offer through a wealth management
LLC A retch should investment advisor. Investing involves risk. Always
consult with the qualifying tax advisor before making any decisions
regarding a roth conversion, as there may be additional tax considerations.
Speaker 8 (25:00):
If you aren't able to listen to this show in
its entirety, go to Presleywealthmanagement dot com to listen to
this and past radio shows. Otherwise, stick around to find
out how Presley Wealth Management will help you retire with confidence.
Speaker 6 (25:17):
Got to within us today for your money matters with
Christy Smith and Matt Kennedy of Presley Wealth Management two
two five seven nine one fifty seven seventy three. If
you have questions, well, you know what, I think we've
got enough to retire? I think I don't know, but
I think why not find out? Might be the most
important phone call you make, and there's no cost. Seven
nine to one fifty seven seventy three. Presley Wealth Management
(25:38):
here to help you figure out where you are on
that road to retire.
Speaker 1 (25:40):
But can I retire? Do we have enough?
Speaker 5 (25:42):
Do we not?
Speaker 1 (25:42):
How do we fix it if we don't? If we do?
Do we want to retire? Do we want to keep working?
A lot of questions?
Speaker 6 (25:47):
Seven nine one fifty seven seventy three, and of course
you can always go to meet with us now dot com.
Set up a time to chat with the team. Meet
with usnow dot com. I'm Mark Kelly Glader with us.
We're talking about the big unknowns that all of us
will face. There is no question one. We talked longevity, right,
we don't know how long we're going to be here.
We don't how long our spouse is going to be here.
How do we plan for that? Healthcare costs, Holy cow,
those have been going up. I think when we were
(26:08):
talking inflation back in the day of you know, on eight, nine, ten, eleven,
twelve of zero one percent that all of this, but
healthcare is still going up six to seven percent. That
has not stopped. So healthcare is still crazy expensive. And
then you get into long term care where Medicare doesn't
cover most of that only covers for a little bit
of time. So that's a huge challenge.
Speaker 1 (26:28):
All right.
Speaker 6 (26:28):
The other two big unknown we're going to talk about
in this segment the markets and taxes. So, Matt, the markets,
that is one of those things that I think we
all wish the markets do nothing but go up, but
they don't just go up in a straight line.
Speaker 1 (26:41):
They go up, they go down, they go flat.
Speaker 6 (26:43):
And that's where I think it comes back to your
first part of your smart program, the income. We don't
want to base everything on the markets. Okay, the markets
were great, I guess we can go take that trip. Oh,
the markets are bad. I guess we can't do anything
this year. We don't want that to be based on
our retirement.
Speaker 4 (26:57):
I like to talk about three very important letters. First
letter is S, the second letter is O, and the
third letter is R S R. We obsess about this
here at Presley Wealth Management and its sequence of returns.
I wish this were TV for a moment so I
(27:18):
could show you what an Excel spreadsheet to demonstrate this.
But Christy, you've seen us together talk about this many
many many times. Sequence of returns is very simple. If
you have five hundred thousand dollars and you plan to
draw out, say twenty five thousand a year, to live
on five percent. Right, if you retire and the stock
(27:38):
market is your friend, if you retire into a bull market,
that is, you retire into a rock solid sequence of returns,
there's a very good chance, right, Christy, that the amount
of money that you're taking out each year is more
than being replaced by market returns. For example, if you
had retired in two thousand and sixteen to seventeen was great,
(28:01):
seventeen to eighteen, eighteen to nineteen, nineteen to twenty. Of course,
twenty was a bath, right, but it came back quickly
after COVID. But for many of you who have retired recently,
you've had nothing but a solid sequence of returns. But
when I came to work here in two thousand and eight,
early two thousand and nine, I saw people in this
office who had been somewhere else, who didn't have a plan,
(28:23):
didn't have a plan to hedge risk, and they had
been exposed to a very cruel sequence of returns because
in two thousand and eight the stock market dropped thirty
eight percent, and the pain didn't end. It went down
another fifteen percent and bottomed March of two thousand and nine.
I can still see those people around that table, Christy saying, well,
(28:43):
our broker told us just hang in there and reduced
the amount where withdrawing or start renting out the condo
in Gulf Shores and will be okay. They did not
take into account sequence of return, so we don't know
if you're going to retire into a bull or a bear,
So what do we do?
Speaker 7 (29:01):
We plan for both.
Speaker 4 (29:03):
You want some money that's exposed to the market and
can really do well, but you need some money that
can actively hedge the risk. And you need a floor,
a foundation of money that if the market's good, you
can make some money. If it's bad, you're not going
to get killed. It's all about range of return. Notice
I didn't say rate of return. Too many of you
(29:26):
are obsessed with your rate of return.
Speaker 1 (29:28):
I am.
Speaker 4 (29:29):
I'm obsessed with my rate of return because I'm fifty
eight years old. I'm not retiring tomorrow. So if I
can make seventy percent in a year, who because if
I lose fifty, eh, I'll make it back. But if
you're close to retiring or recently in retiring, stop obsessing
about your rate of return. Be more obsessed about your range.
(29:49):
What do I mean by range? If the market can
go up thirty, it can go down thirty, you would
probably be better off with a lower range of return. Hey,
I'm going to be happy making eighteen even if the
market may thirty, because if it drops thirty, I want
my base to be around fifteen.
Speaker 1 (30:05):
Percent.
Speaker 4 (30:06):
So we design plans that smooth out the highs and
lows to help you weather any type of tough sequence
of returns. So again, if there's one message we can
leave you, be obsessed when you're close to retiring, or
when you're recently retired, be obsessed with your range of return.
I'll be glad to show you that spreadsheet and talk
(30:27):
more about this when you come in where it's seven
nine one five seven seven three. A lower rate of
return when you're withdrawing from your savings can actually mean
a bigger balance down the road. I'm gonna say that again,
when you have a bad sequence of returns, lower rates
(30:47):
of return can actually mean more money. Why because you're
not getting slaughtered when things get bad. We'll show you
two two five seven nine one five seven seven three.
And as Mark was going to say, there's no cost,
no obligation. You can even go to meet with usnow
dot com and set a time for us to chatte
on the phone and set up a meeting.
Speaker 6 (31:05):
Well, Chris, do you think about it? When people come
in for the first time, typically say, like Matt, they're
fifty eight. Let's say, for example, they're going to retire
at sixty five, most of their money, almost all of
their money is sitting in four o one ks and
iras well. Once you retire, it's not like you leave
all your money at risk. I would, And you don't
have one hundred. Your clients probably don't have one hundred
percent of their money in the market, I would guess.
Speaker 1 (31:24):
Is that fair to say?
Speaker 9 (31:25):
Yeah?
Speaker 2 (31:26):
Well, typically what we want to do is we want
to create a risk plan, and we use a risk number,
and so basically, if someone is sixty years old and
one hundred is the highest level of risk, we're going
to have about sixty percent of their money at risk
and about forty percent of their money in safe environments.
(31:46):
So you want to think about not only diversifying in
the stock market, but you also want to diversify in
your safer environments as well. So we want to look
at that and build a long term plan. A lot
of times what we'll do is we'll use the safe
money to build a plan where we're generating income, and
that safe money'll generate that income for ten twelve years
(32:09):
while their risk portion of money is growing, and therefore,
when the safe money runs out in you know, ten twelve,
thirteen years, we've grown enough in their risk bucket that
we're able to replenish the safe money and just start over.
Because you've got to think about the effects of ups
and downs when it comes to the stock market. You know,
(32:31):
if if you lose thirty percent, you you don't make
thirty percent to get back even. No, because you're making
that thirty percent on less money. It basically takes double
the amount of returns fifty to get back to each
to get back to even. And so we want to
build a plan that is going to allow our clients
(32:52):
to not worry about where they're getting their income, because
think about it, in retirement there, if there's income is
the name of the game in retirement. So what we
don't want to do is we don't want to be
the company that says, oh, we're having a down market
right now, let's lower your income. Let's change your right
change it, Yes, let's change your plan. No, we want
(33:14):
to build a plan that is that is poised to
to succeed and get you through those storms where you're
not having to make emotional decisions, because I think that's
one of the biggest problems people go through in retirement
when they're living on their money is they go through
this emotional toll of you know, I do I need
(33:36):
to change my income?
Speaker 1 (33:37):
You know?
Speaker 2 (33:38):
Am I? Am I taking too much income? Often we're
able because of the way that we will ladder our investments.
We're able to say, hey, you can actually take out
a little bit more. And that's always a good conversation.
So I think having a real plan that understands risk,
taking risk into consideration is extremely important.
Speaker 6 (33:59):
Final minute of this segment, we're gonna come back. We're
gonna have a big conversation in our final segment. But
you think about taxes, taxes. If you could save money
in taxes, it's almost better than a return in the market.
Speaker 5 (34:10):
Could be say that one more time, mark.
Speaker 1 (34:12):
So savings from taxes could be bigger return on your
money than the market.
Speaker 7 (34:18):
Absolutely, here's why I thought, that's what you said.
Speaker 5 (34:21):
Here's why.
Speaker 4 (34:22):
If you have five hundred thousand dollars and you want
to take out twenty five thousand, if it's all taxable,
then you have to take out twenty five thousand plus
the taxes, So you may have to take out thirty
one thousand to get twenty five Well, that subjects more
of your money to going down.
Speaker 7 (34:40):
If all of that money is tax free and.
Speaker 4 (34:42):
You need twenty five thousand, you take twenty five, that
means you're taking less money.
Speaker 5 (34:47):
It gives your money more longevity.
Speaker 2 (34:49):
Well let alone how a big withdrawal can affect your
IRMA penalties for your medicare? What are you paying for
your medicare? Part B absolutely benefits, So there is a
ripple effects. So to me, tax planning as soon as possible,
as as young as possible, is extremely important.
Speaker 1 (35:06):
Mark seven nine to one fifty seven seventy three.
Speaker 6 (35:09):
If you'd like to call the team at Pressley Wealth
Management two two five seven nine to one fifty seven
seventy three. And of course you can always go to
meet with us now dot com. I think it's the
most important thing you could do today, probably for the
because we're talking to the next twenty thirty years of
your life. Seven nine to one fifty seven seventy three,
or meet with us now dot com. Headed to our
final segment of Today's Your Money Matters with Christy Smith
and Matt Kennedy Presley Wealth Management.
Speaker 1 (35:30):
We're back bight after.
Speaker 8 (35:31):
This is the price tag on everything giving you sticker shock,
from groceries to gas. The cost of living is skyrocketing.
But if you think inflation is painful, now just wait
until you retire. Easy impact of inflation, and start planning
now for your retirement. Called Presley Wealth Management at eight
(35:51):
six six three nine oh twelve fifty two. That's eight
six six three nine oh twelve fifty two.
Speaker 5 (36:00):
Stop for a moment, think about this.
Speaker 4 (36:02):
Do you know how much money in your four oh
one k or ira is actually your money? Although the
government take a bigger chunk than you thought. Remember, you
still may owe taxes on that money. But do you
have a plan to help make sure you don't pay
more than you should? At Presley Wealth Management, we believe
you deserve to keep more of what you've earned, which
is why we're here to help you navigate the confusing
(36:23):
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, 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 ninet one five
(36:44):
seven seven three.
Speaker 8 (36:45):
Investment advisory services offer through a wealth management LLC a
registered investment advisor. Investing involves risk. Always consult with the
qualified tax advisor before making any decisions regarding your ROTH conversion,
as there may be additional tax considerationations. Christy Smith of
Presley Wealth Management wants to advocate for you making sure
(37:07):
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 bit for you. You
won't know until you call eight six six three nine
oh twelve fifty two.
Speaker 1 (37:24):
Welcome back to your.
Speaker 6 (37:25):
Money Matters with Christy Smith and Matt Kennedy of Presley
Wealth Management.
Speaker 1 (37:28):
I'm Mark Lley. Glad you're with us again.
Speaker 6 (37:29):
You can go go to the website Presleywealth Management dot
com to find out more about the team. If you
want to have a conversation with it. You got some questions,
meet with usnow dot com. Totally complimentary chat with the team.
Meet with us now dot com. We're gonna finish up
today's show with the mail bag, and this is questions
that have come from people calling in, people coming in,
people attending events, and we just kind of save these
(37:50):
questions until we feel like, hey, we had a new
segment just on mail bag.
Speaker 1 (37:54):
Here you go.
Speaker 6 (37:55):
First question, Sally and Baton Rouge and I will say this,
and I say it every time we do this. If
you really want the entire answer, you need to have
a conversation with Christy, Matt and the team. They don't
know enough to give you a complete answer, but they
can kind of take your question and kind of go
where they want to with it. But they're not going
to give Sally, they're not going to give you the
exactly the number you need or the question you have,
(38:16):
give you a full answer because they don't know the
full story.
Speaker 1 (38:19):
So I always think you should call.
Speaker 6 (38:20):
Them two two five, seven, nine to one fifty seven
seventy three, seven nine to one fifty seven seventy three.
But that being said, we enjoy the mailbag segment. So Christy,
you're up. This comes from Sally and beat and Rouge.
First question, I'm still quite a few years away from retirement,
but I have no idea what my savings target should be.
How much might I need to save so I can
have a comfortable retirement. So pretty good example there, Christy.
(38:43):
You don't have a great information to say, well, Sally,
you need one hundred thousand dollars more in You're good,
you don't know all that yet, But that's kind of
people get caught up on, hey, what's my number.
Speaker 1 (38:53):
Kind of a thing.
Speaker 2 (38:54):
Yeah, you're exactly right, you know. I think the first
step to be an able to answer sally question is
to find out what are going to be her goals
in retirement. For example, how much money do you expect
to need every month to live on in retirement? How
will you coordinate any social security or pension benefits in
(39:16):
your long term retirement? Do you have plans to travel
in retirement? Do you want to give to your children
in retirement? There is no set number. Every single person's
situation is completely different. So what we typically do is
we sit down and we have a conversation. Diving deep
in our serve model means we're going to understand what
(39:38):
are your goals. Once we understand what are your goals
and what are your sources of income going to be,
then we can back in the math and we can
figure out, okay, this is what your savings goals should
be to help accomplish those goals. But again, you know
it's funny because I remember the commercials on TV what's
your number? And the reality he is as you would
(40:00):
you would read here. You know, like a million dollars
is your number? You know that should be the right number.
In reality, there is no right number because each one
of you is unique. Each one of you has your
own goals and objectives, and so we want to work
together with you and create your own personalized plan. We
(40:23):
call it our smart plan, and by doing so, we
would be able to show you, Okay, this is how
much you should consider saving to help reach that goal
in retirement. But then we take it a step further
and say how should you save it? Should you save
it in pre tax money, or maybe should you consider
saving in raw ray, maybe in IUL where you can
(40:45):
pull out tax free income. You know, it's not about
just how much you save, it's where you save as well.
Speaker 7 (40:52):
That's such a good point.
Speaker 4 (40:53):
Uh, don't get hung up on a number, because let's
just pretend that you need an extra thousand dollars a
month to live on. Well, if it's all pre tax money,
say from an IRA or a four to Z one K,
and you have to pay twenty percent tax on that,
then you have to take out more than one thousand dollars,
going to have to take out more like twelve hundred. Right,
(41:13):
But if it's tax free money from like a life
insurance policy or a wroth IRA, then guess what. If
you're not paying the taxes, you have to withdraw less money.
If you have to withdraw less money each month, what happens, Christy?
Your money lasts longer. So it's not just about escaping
the tax man. It's also about your money lasting longer.
Speaker 1 (41:35):
Yeah, there's no doubt.
Speaker 6 (41:36):
I mean, Christian Matt's sat down with people who had
a million or two and it wasn't enough. They sat
down with people who had a quarter million, it was plenty.
It's about you and your lifestyle. Two two, five, seven
nine to one fifty seven seventy three sal If you'd
like to sit down and have a conversation the next
question Tom and Denham Spring says this, Matt, are rental
properties a good source of income for my retirement?
Speaker 1 (41:54):
Uh?
Speaker 4 (41:55):
Okay, A couple of things here to keep in mind.
Number one are rental property is a good source of income.
Forget about the money, think about the emotions of it.
If you don't want to deal with it and you
don't want the headache, then it may not be for you.
Of course, you can get a property manager and things
like that. Here's the most important thing to remember, though,
If you are actively involved, if you materially participate in
(42:17):
the operation of the property, and you have an office
setup and all of that, good chance that that is
going to actually count as earned income. If you're very
hands off, then it is passive income, which could be
tax advantaged. I'm not a CPA, Chris, He's not a CPA.
Before you consider renting, absolutely, talk to a CPA, talk
(42:38):
to your tax professional. But if done properly, it actually
can be a tax advantage. But you have to accept
the responsibility that goes along with rental property.
Speaker 6 (42:49):
Tom again two two five, seven nine, one fifty seven
seventy three, or meet with us now dot com to
have a conversation with the team at Presley Wealth Management.
All right, next question, Christy goes to you. It's in Prairieville.
I think I have a pretty good handle on our
financial plan for retirement, but I'm worried that I'm missing something.
Do you have some sort of retirement to do list
or a checklist to help me make sure that I'm
(43:10):
not forgetting something, Well, we.
Speaker 1 (43:13):
Do have a.
Speaker 2 (43:15):
Checklist, yes, And typically we will meet with a client
or prospect and start working on building their plan. Because
there's a lot of moving pieces to this retirement puzzle,
and so what we're going to want to do is
we're going to want to gather the information. So typically
we'll say, Okay, these are the things we'd like for
you to bring in for your first visit. And as
(43:36):
we start putting the pieces of the puzzle together, we
may need additional information. So we have a homework checklist
that will give them saying hey, can you get this, this,
and this? I would say the first thing you should
start looking at or what is going to be your
budget in retirement. You would be surprised how many of
you don't know how much you plan to spend in retirement.
(43:56):
Then I would go through and decide, Okay, how am
I going to take my Social Security benefits? Do I
need to take them at sixty two? Do I need
to wait? You know, because gathering all of those types
of like pieces of the puzzle are really important. But
then I say, it's even important to meet with someone
who can help guide you. Even if you don't need
to hire them long term. Meet with them and gain knowledge.
(44:20):
You know, knowledge is powerful. I always say on the radio,
Matt used to hate it when I would say this,
I say, you don't know what you don't know. Now
he actually says, it's okay for you to say that
because I get it now.
Speaker 5 (44:30):
I never hated it.
Speaker 2 (44:31):
I just was like, now you would pick on it,
that's so tacky. It's not. You don't know what you
don't know, and it's up to you to learn. So
knowledge is powerful. Meet with someone who works with clients
just like we do. We'd love to help you and
start working on putting the pieces of the puzzle together.
Speaker 4 (44:46):
It's all about planning at the end of the day.
It's not about how much money you have or don't have.
It's about a plan. And remember there's five areas we
want to focus on when you sit down and talk
with us. It's not about well, here, buy this. It's
about where where will your income come from in retirement?
What are your sources of income? How do you maximize them?
(45:06):
Got to be smart right sources of income? How do
you deal with medical and medicare? What about advanced planning?
Do you have wills and powers of attorney at ceterund place.
Do you have a plan to hedge risk? Can you
focus on lower risk and retirement? And what are you
going to do about the ultimate GETUO which is taxation?
(45:26):
We can help where at seven nine one five seven
seven three seven nine one five seven seven three or
visit us online set your online appointment at meet with
us now dot com.
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 8 (45:46):
Investment advisory products and services made available through AE Wealth
Management llc AWM, a registered investment advisor. Insurance products are
offered through the insurance business the Presley Group. Presley Wealth
Management is an investment advisory practice at all first products
and services through AE Wealth Management LLCAWM, a registered investment advisor.
AWM does not offer insurance products. The insurance products offered
(46:09):
by the Pressley Group are not subject to investment advisor requirements.
AWM and the Pressley Group are not affiliated companies. Investing
involves risk, including the potential loss of principle. Any references
to protection, safety, or lifetime income generally refer to fixed
insurance products.
Speaker 2 (46:23):
Never securities or investments.
Speaker 8 (46:25):
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. 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
(46:45):
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 sources believed to
be reliable, but accuracy and completeness cannot be guaranteed by
the Presley Group. This radio show is a paid placement
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