Let's Talk Money

jump into those topics. But if anyone out there, if you have any questions, anything that's top of mind to you regarding the markets, the economy, what you know we've got year end almost upon us, any sort of planning strategies you want to discuss, give me a call one eight hundred talk WGY. That's one eight hundred, eight two five, five, nine four nine. So it's hard to believe we're only a couple of weeks away from the end of year.

And man, I think back to especially the start of last year, right the start of twenty twenty three, but you even go back to earlier this year, headlines of the election and all the volatility and uncertainty, and with only two weeks left to year end, we're having another what will most likely be you know, twenty plus percent return in the markets, and just to think, you know it wasn't that long ago when it felt like, well maybe not to everyone, but at least in the headlines

that you know, the economy was about to go down, the markets were going to collapse, and here we are if you were a patient investor and held strong and we're disciplined, you know, we have two great, great years back to back. And so we'll talk a little bit about, you know, doing some research this week and doing some analysis as to you know, when we have great years like this back to back, especially what does that mean

moving forward. So we can talk about that as we head into you know, twenty twenty five in a few weeks. We'll talk about just the recap of the markets this week and some of the general themes we're seeing. I think we're seeing a little bit of a change from what the markets were doing starting in the third quarter heading into the fourth quarter, we're starting to see a little bit of a you know, kind of back to

strength with technology. The NASDAC a little bit up for this week, and so we'll just discuss general themes of what we're seeing and you know, for me high level, starting to put together some charts and data as we get into again year end and just what we're thinking about, especially as an investment committee and as we're looking at our portfolios. As we said, right we're two weeks away

from year end. You know, maybe it's a little late to do any twenty twenty four tax planning, but yeah, there are some things we can do with a few weeks left on the docket to maybe save on taxes, implement some tax strategies. Start obviously thinking about twenty twenty

five planning. But you know, for now, even if you feel like, hey, is it too late to do anything for twenty twenty four, I'll get into some ideas and ways that we've been working with clients and some strategies we've been implementing again as we as we near and approach your end, and some kind of last minute strategies

that we can do. And you know, especially around the holidays, right between Thanksgiving Christmas, if it's a time where you know you like to give back and that's something that's important to you, we we can go through ways that you know, by both giving bad in being charitable can also factor in some ways where you can be tax efficient with that and you can save you know, some money as you're giving back and so a lot of tips and strategies that, like I said, we're working with

clients right now on to make sure we're all set before year end. You know, in terms of in the markets and economic data, we had some inflationary reports come out this week with regard to November, we had the CPI report, and you know, we're seeing a little bit of an uptick. I would say, nothing dramatic, nothing that I would say is overly concerning, but we are seeing a little bit of a slight uptick from months prior, and we can talk about what that means. We have

the next FED meeting coming up next week. Expectations are probably for another to my basis point cut, but we'll see what happens there and as we enter, like I said twenty twenty five, sort of what the expectations are moving forward and what the FED has in store. You know, that seems like a topic that's been has been discussed

as much over the last couple of months weeks. I think we've kind of gotten into a little bit better of a place with regard to inflation and people's expectations, but you know, it's definitely going to be on the forefront.

And again That's another area that as we talk about planning for clients and implementing some portfolio strategies, certainly an area when you think about the interest rate environment and what that has meant lately, because again, if expectations are for maybe another cut next week and for you know, three to four cuts heading into twenty twenty five, you know, maybe you've been sitting on some high yielding but short term in short duration, whether CDs, maybe it's a money

market account, and what does that look like as we move forward from here? What does that look like as maybe the federal funds rate comes down over the coming months, but you still want to have a piece of your portfolio that is a little bit more secure, maybe a little bit less violatile on the day to day as a stock market. But the rates that you're getting right now are on the fall, and where can we go? Where can we move that money into? So we can

talk about that too. That's something else that we've been working very closely with our clients on over the past few weeks, maybe a little bit longer as the Fed began to lower interest rates. So again, our phone lines are open, give me a call if you have any questions. Anything you want to discuss or get into that may be relevant to your situation. Maybe it's something them talking

about with your co workers, your neighbors, your family. Uh, you know, Thanksgiving and Christmas coming up, and any other holiday that you may celebrate. You have a lot of time to spend with friends and family, and I know at times different financial topics may be coming up. And

it's always you know, funny to me. Something that you know comes up in our conversations with clients all the time is uh, you know, I think a lot of those conversations you hear a lot of the successes from you know, a family member, your brother in law, you're you're you know, coworker of the trades that have worked out, but you don't hear about the trades that maybe don't work out as well. But don't get in, don't get sucked into kind of that fomo, that fear of missing out,

that is such a huge element from a behavioral finance perspective. Right, you can do all the technical analysis, Uh, you can get the charts right, you can get the fundamentals right, but the behavioral finance, which has become such an important topic of discussion in our world, and in our space, in our industry with regard to wealth management and financial planning. But man, that fear of missing out can make you make bad decisions, and so you want to avoid that.

There's no probably no time that that can creep into your minds and into your psyche more than this time between Thanksgiving and end of year. Like I said, you'll be spending a lot more time maybe with friends and family, and a lot of those topics of conversation come up more than they typically will. And you know, one of those areas that comes up is crypto. And you know, if you've been following that at all, crypto is getting

up to all time highs. That could be a time where again that fear of missing out may may pull you more and more and get your sucked in more and more than ever before. And you know, all that I would say is just be careful. Certainly be careful, because you know that's an area that, again with with the recent rise, can look awfully enticing. But you know you got to make smart decisions when it comes to your portfolio and what you're doing from a financial planning perspective.

So again, one last time, bull mines are open. One eight hundred talk wgy. That's one eight hundred and eight two five five nine, four nine. And so if we look at the markets this week, you know it kind of we're seeing a little bit of a of it up and down, a little bit of a choppy week

in the markets. The SMP was down about a half percent. Uh, you know, the Dow Jones, which I would say has a little bit more of a value slant right versus the SMP or the NASAC lately, especially since the start of the third quarter, had really been doing quite well. We sort of we started seeing that rotation into some

other areas of the market. We started seeing some strength in the down and maybe some other areas within the SMP outside of kind of those large cap growth tech names that we've been so accustomed to, especially those mag seven names. But we seed a little weakness this week, down almost two percent. The NASAC was up about three quarters of a percent. So really the outlier here was the Nasdaq in terms of how well it did this week, and even bigger pullback for small caps two and a

half percent down on the week. So really outside of the Nasdaq, which was up almost a percentage point, most of the other major indices being down again. You know, nothing really I think worth worrying too much over. But I do think you're kind of seeing another sort of displacement here where you know, the NASAC and some of these tech companies have been doing quite well over the last few weeks and I have actually kind of come roaring back where they were underperforming a little bit following

the first half of the year. Definitely saw some movement in rotation into other areas of the market. But you're kind of seeing a little bit of a uh strengthening in these areas. And you know, really when you when you take a step back, and I was talking a little bit about it in the opening, when you think about sort of what lies ahead, what are we going to see in you know, to end the year into

twenty twenty five. I mean, you know, to me, kind of the big themes that are at play right now, especially after two really strong years in the market, are right. I think a lot of people are talking about the Trump administration, what does that mean for the markets, what does that mean for the business climate, And really you take a step back and you're seeing a lot of positive sentiment. Let's say you're seeing a lot of especially

you know, small business owners. Business owners sentiment is on the rise. Think if you're just kind of looking ahead and seeing, you know, thinking about just general themes in the market. You know, maybe deregulation. You know, things can can certainly change. But we're already hearing word and hearing you know, seeing headlines of maybe less banking regulation. I think just in general, UH, Republican UH presidency and in UH term will look to have a little less regulation

than maybe some other areas. And and that's what you know, I got to you got to give them a lot of credit in terms of looking to help mitigate costs and government spending. You know, they're looking at ways both in the government and outside to UH I think propel growth, right, And that's a really good thing. And I think there's a lot of optimism for what's ahead.

not seeing as much of the advancements. But you know, as we move forward from a market perspective, that is going to be something that, you know, if anything can kind of carry this full market forward, that is absolutely

something that can do it. And not just from the standpoint of you know, the new technology, new companies, new ways for these companies, maybe some of the more established companies to make money, but you think about the efficiencies and you're thinking about, you know, kind of how this market has changed a little bit over the past i don't know, ten fifteen years, and kind of the environment that we're in today that you know, this is an area and a trend that can really really help propel

us forward. So it's going to be interesting to kind of continue to watch and kind of continue thinking about, you know, what does that look like and how will that help us move forward. So with that, I am

going to take just a quick commercial break again. When we come back, we'll talk more about sort of how these themes play into to twenty twenty five, how we look at, you know, some of these great years that we've already had and what the what does history kind of tell us or what can history show us as we enter the you know, the end of this year and coming into twenty twenty five, and then you know, on top of that, once we you know, enter the second half of the show, I want to get more

into some of the planning discussions that we're having with clients. And so if that's something that is of interest to you, or you know, maybe you're thinking of ways to mitigate taxes or to plan for year end, or you know, even start planning for twenty twenty five, definitely give me a call and let's discuss kind of ways that we can you know, help just with your overall planning needs.

And like I said, that's such a big element of what we're doing with clients right now, having great, great conversations and great meetings to you know, help save you know, not only save money, but just come up with that plan.

And for everyone it's it's always so different, right not maybe not one strategy is right for every client in every situation, but you know, working through it and looking at the you know, what's important to them and really what they want to either save on or try to help expand in their and their own overall financial life. It's it's been great to do that. So we'll talk about how we're working with clients in that way when

we come back. So stay with us. You're listening to Let's Talk Money here in eight ten in one O three one WGY.

nine four nine. And so just to you know, put an end cap on our conversation. In terms of market in general themes, I do think it's important to as we take a step back, right, I mean one of the probably the two areas that in my conversations, whether it's with clients, whether it's with prospects, I think the two areas that folks are most concerned about right now, it's continue concern over inflation, but probably more importantly as

it relates to teris. In the conversations that we're hearing about terroris with the new administration, how that could maybe ramp up inflation. And I think that's an area that you know, most people are at least concerned about. What does that look like, How is that going to impact the economy, How it's going to impact more importantly inflation in what we've already sort of dealt with over the

last four years since COVID started. But the other area that I think is top of mind, especially from an investment standpoint, right many, many investors, and rightfully so, I think it's a natural tendency are hesitant to really ramp up investing or maybe put new money into the stock markets. Markets are at all time highs right and we're seeing not only our market, is the market at all time highs right now, but valuations are pretty elevated, right, Valuations

are high. Not only that we've had two really really strong years in the market. If twenty twenty four, you know, sort of finishes in line with where we're at right now, that's going to be two twenty plus percentage point rises in the market in back to back years. And so you know, all these all these factors coupled together, you know, it can create some hesitation to want to get into the market. It can create some you know, anxiousness, nervousness

as to what's next for the market. I mean, we've had such good years, you know, can discontinue what's what lies ahead?

have grown larger. We are seeing a lot of you know concentration in the in the market as well, and that's been a you know, a theme throughout this year, especially just in terms of kind of the biggest companies that we're seeing the top ten companies make up more than thirty five percent of the S and P five hundred. We've never seen that before. Uh, you know, is that something to be concerned about? I do think it brings

in a different area of risk within the market. Obviously in having some of that concentration but again, the reason why we're seeing this is that the market has evolved. We were seeing these bigger technology companies you know, continue to do well, continue to do well in there. You know, they are what drives bull markets. This is why we've had an extended bull market because of these companies, because of the business environment, especially in the US, that encourage

is innovation. It rewards kind of the growth that we've seen. And then on top of that, and so you know, when you have those companies getting larger and larger and be becoming a bigger part of our economy, our way of life, right those types of companies, they they've earned kind of higher multiples. So we're seeing valuations on the

rise a little bit, and that's kind of natural. But the other thing that we're seeing, and this is where I think AI can play, you know, an even bigger role outside of just you know, companies or sectors that are winning. But where AI I think can have a real major impact and role as we move forward, is that we're already seeing profit margins continue to evolve and continue to improve. I mean, this is one of the reasons why we're able to keep growing as as the

market moves forward. And pushes ahead. Those those profit margins are getting better and better in corporate America, especially in these large cap companies. And as that gets better, right, that's going to impact the bottom line. That's going to

improve the bottom line. And you know, as the AI revolution comes into being and we're seeing more and more efficiencies and you know, again advances in technology, I think this is going to be an even bigger catalyst across the board, right, not just for technology companies or not just for companies that are directly in the AI space per se, but you're going to see it across the board.

And so you know, in terms of kind of the enthusiasm and it's optimism over the markets, I mean, this is really a major catalyst, much like again the Internet and the tech growth back in the nineties was. You know, I think this AI could be a continued kind of boom in growth engine for the markets as we move forward.

And you know, we've seen that we've over the last hundred years, we've had about nine or ten instances of when we've had twenty plus percent returns within the markets, and you know, believe it or not, more times than not, about seventy percent of the time heading into the next year, the market continues to go up. It's actually been a

catalyst for continued growth in the market. And so you know, from our perspective, we still think, given where we're at, given what the market looks like right now, that there's a lot to be you know, optimistic about as we move forward. So we're coming up to our news break. When we come back, we'll talk more about kind of more planning perspectives in planning topics that we've been working with clients onund So if that's something that is of interest to you, you know, feel free please give me

a call one eight hundred talk WGI. That's one eight hundred eighty two five five, nine four nine. If you want to talk more markets, we can get into that as well, and anything else that may be on your mind. So stick with us through the news. You're listening to Let's Talk Money here in eight ten in one O three one WGY And welcome back to Let's Talk Money here on eight ten in one O three one WGY. I'm Ryan Bouchet. I'm the chief investment officer and an

advisor with Bouchet Financial Group. It's so great to be with all of you as we approach the holiday season. It's still left scratching my head so many times thinking only two weeks away from the end of the year. But here we are, and you know, it's not too late to start planning for a year end. Well, maybe there's still things you can do, right if you haven't done everything you can, or maybe you haven't been thinking

about full tax strategy. Jeez, it's not too late. And so you know, as as chief investment officer, you know, I do have my markets had on many times through my day to day, especially as as we talk about here on the radio. First half of the show was a lot of market related news, but a big part of my day also comes in the form of advising clients, in working with clients, and I think big element of our relationship is the investments in managing our client's portfolios.

But just as important, it's not you know, maybe more important to many relationships and many clients, is the financial planning work we do and working with them to come up with strategies. You know, it's always it's a line I like to use often, especially in our world, because you know, as much as you can do the analysis, as much as you can study the markets. There's a bit of what happened in the market that truly is

out of our control, right. But what we can do, especially from a planning financial planning perspective, and that work that we do with clients is controlling what we can control. There's a lot more we can control when it comes to tax planning, financial planning, implementing good strategies to help our clients save money. And that's something that we're working with clients on all the time. You know, I do

have a CPA. I'm not a I wouldn't say I'm a practicing accountant any longer, but I do have a CPA, and so, you know, tax planning strategies is a huge, huge element of when when I'm working with clients and coming up with ways to help mitigate their tax bills or save money. And you know, from different people, it

comes in different forms, right. You know, sometimes we're looking at ways to save money today and now, right, how can we save money, whether it's additional contributions to retirement plans, whether it's finding ways to best get a you know, tax deduction for charitable givings this year. But other times it's kind of taking a bigger picture look, and maybe you're dealing with you know, we've had some instances lately

where we're dealing with clients and their generational wealth. Right, they've worked so hard, maybe a business owner, they've they've grown, they have tremendous wealth, and you know, their tax strategies aren't so much. Hey how can I save the most on taxes today or this year? But it's hey, I've I want this to be you know, generational wealth. I want this to be in the family for a long long time. How can I save the most over multiple generations?

How can we start thinking about a strategy that not only benefits me, but benefits my kids, my grandkids hopefully my great grand kids down the road, because that's what we're planning for. And so you can have different perspectives in different time horizons when you're having these conversations, and it's really, you know, comes down to the family, the individual what's most important at this point in time. But there's different ways to be thinking about this, in different

ways to be implementing it. And I think one of the you know, one of the areas that we can do a lot of work, and we're seeing a lot of work right now in terms of how we're helping set up strategies for clients has to do with you know, charitable giving endeavors. And you know, especially in this time of year, right we said it earlier, between Thanksgiving time to giving back, we have the holidays, Christmas and New

Year on the on the horizon. You know, this can be a time when people are you know, charitably inclined. They're looking at ways to give back and implement. And you know, it's funny. I was just kind of thinking about different topics or Today show and things I wanted to talk about and opened up the Wall Street Journal this morning and had you know, uh, article on ways to be you know, save money as you're being charitably inclined.

And you know, these are two areas that you know, I think we work really well with clients on and give a lot of value as we as we work with them on. So you know, one of the things that you can consider and think about. And these are for folks that you know maybe are already taking their R and D s. But what is called a qualified

charitable distribution? And before I get into both of these strategies, what was amazing and what was such a huge eye opener for me as I was going through the article, is that they were saying, you know, between you know, these are two strategies charitable qualified charitable distribution so qc D, but also a donor advised fund, which we work with clients on quite often. These are two strategies that less

than forty percent of the public is aware of. When they did a survey on these, which was really you know, I was a little shocked at how how few people knew about it. So it's not that popular, but it can be a huge huge benefit to those who take advantage of it. And so qualified charitable distributions what are those? Well, if you're you know, have irays and you're taking rm ds, you can designate part of your distribution as a qualified

charitable distribution. And what that allows for is it allows you to you know, send money directly from your IRA to a qualified charity of your liking. And you know, how does that help you? Well, you know, for one, that money that you know, instead of taking the R and D, if your rm D maybe forty thousand dollars and you know you were to choose to give let's say five thousand, Well, now that five thousand isn't going to be calculated as part of your income and where

it can be you know, really beneficial, is right. If you're not taking itemized deductions, you lose out on some of those charitable givings, right in terms of what you can write off because you're already taking the standard deduction, and so you know, if you're giving money to charity, you may miss out on that. Well if you are, you know, still taking the standard deduction, but you can mitigate some of those rm ds and you can give

directly from your IRA as a qualified charitable distribution. You've now lowered your AGI, You've now lowered that income that's being you know, considered income to you because of the distributions you're taking out of your IRA. So now all of a sudden, you know, yes, you wouldn't have been able to itemize deduct those if you're taking the standard deduction, but now this is being deducted from your income levels,

and so that's a huge, huge benefit. Especially you know, you tend to see that more times than not for retirees that they may not be taking itemized deductions, they are only taking the standard deduction. So there's very there's fewer ways to benefit from especially charitable givings and being

able to write them off. So having a qualified charitable distribution is a way around that, and it's a way to you know, again, still be charitably inclined, still give back to causes that are important to you, but also get the tax benefit that comes with it, which is a good thing as well. So it's a great, great way to you know, again, help facilitate your charitable giving. And so we've been thinking about ways to implement that for clients and doing and implementing it in part of

their distribution strategy. The other thing that the the other strategy that we work with clients on as well are donor advised funds and you know, similar in terms of the charitable inclinations, donor advice fund is a way to set up a investment fund that is solely for the

purposes of giving back. And where you know what donor advice fund can really benefit individuals or families in their charitable endeavors is you know, maybe it is the situation as you're approaching retirement where you know you could be working, you're in a higher tax bracket today, you know, you know you want to continue to give as time goes on. But the the your but your maybe your tax bracket is going to come down, your income is going to come down in the in the coming years because you're

going to be retired. Well, donor advice on allows you to contribute, you know, set amount in a particular year, get that full right off for what you're putting as long as it qualifies for it, and then you know you don't have to use that money right up front to get back. You can put it into a donor advice on, let it continue to grow and appreciate, and you can use those charitable giving as time goes on.

Now in future years when you when you give donations from the fund, you're not continuing to get the right off. But this is more of a multi year planning strategy. Again for maybe you're in a higher income tax bracket this year where you're going to get a bigger write

off if you give more in a particular year. So again it's it's not the best approach for every situation, but given your you know, income needs, your your tax situation, maybe what is going to be changing in the coming years because you know, maybe your charitable distributions won't qualify for you know, itemized deductions. But if you give a big enough upfront contribution to something like a donor advice fund, you know, this is a way again that maybe now

you will qualify for itemized deductions. Maybe this is a way now where you will get the benefit of contributing to it. And like I said, now, as time goes on, those funds can accumulate, they can appreciate, and you can use them in the future for however you may decide to do so. And so it's a great, great opportunity to kind of just think about taking them, getting the most advantage from your charitable inclinations, from being given back to your community, and also that ifitting you at the

same time, again, our phone lines are open. Give me a call one eight hundred talk WGY. That's one eight hundred eight two five five nine four nine. We're going to go to Bill in Boston Lake.

your tax return. So you technically if you go up to the eighteen thousand or the thirty six thousand as a couple, that will not show up on you know, the I think it's a seven h nine form for gift taxes. So yeah, that is essentially unreported. Once you go above that eighteen thousand threshold or again thirty six thousand as a couple, now you have to report that on taxes. So now all of a sudden that is

eating into your kind of lifetime exemption. But if you're giving you know, eighteen thousand to a child or you know, a grandkid, that is something that will not be factored into that look back because really it's it's unreported. You don't have to report that within your tax return unless you go above that threshold to only one individual. If that makes sense, Bill, Yes, that's perfect.

for an individual, you can give eighteen thousand. If you're married in filing jointly, you can give up to thirty six thousand to multiple individuals, right, you could give thirty six If you had three kids, you could give thirty six thousand to each child without having that go into your lifetime exemption and having to report it on your tax return. And so, you know, how do we use this and maybe get a little bit strategic with it from both in a state planning perspective but also a

tax planning perspective. And this is a great entry way into this conversation. So I appreciate the call, Bill, and we'll get the phone lines one more time one eight hundred talk WGY. That's one eight hundred eight two five, five, nine, four nine. In case any of these giving and in tax strategy topics interest you and maybe it creates questions that you're thinking about in your own situation or ways to help you know, family members through something like this.

But we're working with clients and situations where hey, you know, we have that eighteen thousand dollars limit, right, we can we can give that amount without it impacting the lifetime giving goals. So how can we sort of mitigate some of the future estate planning issues that we could get

by also taking advantage of these annual exemptions. So you know, in one case, we have client where we're looking they have you know, big appreciated stock positions or ETF positions and they're taxable port Well, how can we you know, strategically mitigate some of the taxes on these positions but also benefiting future estate taxes in the family. Well, you know, we're looking at ways to give some of these appreciated

stock to the families, to their children. And because the children are you know, finishing up college, they're not having an income right now, they can turn around sell it right away because you get the original cost basis, so it's still in a big gain, you know, if they stay under the you know, for a single individual, it's around forty a little bit more than forty thousand, if you stay under where you're not taxing capital gains. Well, now all of a sudden, we're getting rid of capital gains.

We're coming up a strategy to gift to limit the long term estate planning taxes owede. Oh and now we're you know, also being able to gift and mitigate the sales tax or the capital gains tax because we shifted it over to someone who you know, maybe is not earning income at that point. So just different ways to be thinking about both, you know, gifting exemptions but also

tax planning strategies you know today but also into the future. Again, our phone lines are open one eight hundred talk w g Y one eight hundred and eight, two, five, five, nine, four nine. We have Ed and Troy. Good morning, Ed, want very Christmas.

require minimum distributions. Now at seventy three, those gap years are a great time to think about and consider Roth conversion. Right because you bring up New York State, they don't give you a lot of tax benefits, but believe it or not, they do give you the twenty thousand of retirement income exemption right off the bat per individuals, so you have you had the benefit from a state tax perspective, depending on kind of what that marginal tax bracket is.

The conversions can give you a great way in planning that out to move that money to you know, one, it can help limit what those r and ds are going to be, you know, in the future, but also getting that money into those tax free accounts, which you know, if you're young enough and healthy enough, you could certainly see the benefit yourselves. But where we're having more and more conversations is because of the new rules around inherited i RA and how you have to take distributions within

ten years. All of a sudden, Wroth conversions have become a great estate planning tool to help benefit those funds and that wealth that you have helped accumulate and will help your kids in the future because those are going to be tax free for your kids as well. So, yeah, the Wroth conversion strategy is one that we're implementing a lot, and I think if it's something that is of interest, you want to see the analysis. It is so important to kind of go through and there's multiple ways that

I think it can benefit you. Ed all right, oh thanks, yeah, no, thank you, thank you for the call, And like you said, I think it's something we can we can take a look at, So definitely give give us a call on that. Thank you for the call. And it's a great topic

to get into. It's it's really something that again the evolution of it and as people are living longer and longer, you know, conversion, you get the benefit down the road from a tax perspective, may cost you more upfront, but you know, when you sit back and you look at the analysis, it could be beneficial not only to you, but it can be really beneficial to your beneficiarias down the road, whether it's children, family members, you name it.

It's something that I think when you when you think about again multi generational wealth, that's an area that can be a huge, huge benefit. Well, I love this. We're getting a lot of calls towards the end of the show, which we had more time because we're getting some really great calls from Bill and Ed. We're gonna go back to the phone lines. We have Paul in Connecticut, Paul, good morning, Thank you for giving us a call.

you could do with your kids. But essentially you're telling me that a gift, I'm not saying a charity either of ten grand that's appreciated stock avoids the capital game, is that correct?

So that's where the benefit was. We were looking at ways to, you know, use gifting of appreciated stock because this person was in such a low tax bracket the beneficiary where if they were to sell it right away, they would not have to realize those gains because they were under the income threshold. So yeah, so gifts do not get a step up in basis. Like I said, if someone were to pass with a pass away with appreciated stock, their beneficiaries do get a step up in

cost basis, but not on gifts. So thank you for calling on that, Paul, because it was a great topic to clarify and I and I apologize that I wasn't as clear as I first went through it. Like I said, we're kind of going through a lot of different planning topics and situations, so wanted to get those out there and share it with you. Like I said, it's not too late. You got a couple of weeks left before the end of the year, and so you know, plenty of time. I guess if you get your ducks in

a row to help with your end of year strategies. Well, we're at the end of the show. Thank you so much for being part of it today. Thank you so much for tuning in. It's great to be with you. We'll be back next week Saturday at ten, Sunday at eight am. And if I don't talk to you before the holidays, hope everyone has a very merry Christmas. Happy holidays to everyone, And like I said, thank you so much for tuning in. You're listening to Let's Talk Money here at eight ten and one O three one WGY