Let's Talk Money

Good morning and welcome. Thank you for tuning in. You're listening to Let's Talk Money on eight ten and one oh three one WGY. I'm Ryan Bouchet and we'll be with you for this next hour. Glad to be here and appreciate all those listeners who are tuning in this morning. So I got a lot that I want to get into. But before I do, so, let me give you the phone lines. If you have any questions, give me a call one eight hundred Talk WGY. That's one eight hundred eight two

five five nine four nine. You know, we always love hearing from the listeners and that adds a lot to the discussion and conversation. So again, if you have any questions, give me a call one eight hundred Talk WGY. That's one eight hundred eight two five five nine four nine. So let's get into it. We UH. Like I said, I have a lot that I want to talk about. First week of June market continues its UH

its gains and it's momentum from May. So it was great to see even with a little bit of a sell off Friday, you know, from from our perspective, not a not a big deal. And and we'll talk a little bit more about that. Bond yields though on Friday at their biggest move higher more than two months. We've seen a ton of fluctuations there. What does that all mean? Why are we seeing this? Uh? Why are rates going up and down? Up and down? We'll get into that.

The jobs report, right, that was the big news on Friday, but there was other labor data and economic data throughout the week that it was really you know, trying not to stress too much about any one report or one data point, but you know, we are long term investors and taking you know, that long term approach, but it was a you know, it

felt like it was kind of an important week, so to speak. And we'll talk about both Friday's jobs report for May and and some of the other reports that came out earlier in the week and what that all meant for, you know, both the economy and markets as a whole, because, like we've said, we've we've kind of been seeing this mixed bag of economic data not only last week, but over the course of the last few weeks. Really we've seen some signs signs of weakness, but also some signs of strength.

So that's why I think the main jobs report was was so big and and a lot of people were focused in on it. We'll talk a little bit about this because you know, we had these conversations often talked to to Doug on Wednesday, a little bit about this. But you know what, as investors, what do we really want because we know, you know, inflation doesn't feel good, right, this higher inflationary environment. It affects us

all. We see it in our uh you know, daily weekly spending, you know, especially for those those necessities, right, the groceries, gas, whatever it may be. And it hurts, right, it hurts our wallets, share. We we are spending more. It's not great. But you know, at what cost do we want rates to come lower? Do

we want inflation to come down? You know, it's fascinating how bad consumer sentiment is out there today when you know we're barely off at all time highs, you know, just we're just off all time highs based on Friday's small cell off. Right. The economy is too, and well, we're creating a lot of jobs, but sentiment is still a little wishy washy, and a lot of that does come into play because of higher than normal inflation and

the impact that it's having. But again, you know, at what cost do we want lower rates because you know, generally speaking that that comes with

a you know, potentially slowing economy, if not a recessionary economy. And so just talking about that and thinking about that a little bit, you know, is in my role as a chief investment officer obviously looking at the markets all the time, and you know, there's been some some interesting discourse and not only just that, but obviously the market themes of the last couple of years have been pretty fascinating in terms of how we're seeing, you know,

really concentrated strength in the market. And you know, I was reading we almost have our top three companies in the S and P Navidia, Apple, Microsoft, making up almost twenty percent of the S and P. And we've never, based on the data, have had three companies make up twenty percent of the SMP. And so, you know, what does this concentration, you know, what does it look like and how does it impact you know,

maybe investment decision. How should we be thinking about the market. You know, there's always different sort of catalysts which maybe get us concerned or get us nervous. All time highs are always in that mix. We've talked about

that in the past. Uh, you know, I have those conversations with perspective clients sometimes with clients, but you know, I think they've listened to us enough and understand and and get comfortable with it and hear our commentary or newsletters or when we reach out on Fridays to share what's going on in the markets. But you know, all time highs tend to kind of you know, worry some folks. But also we're seeing, you know, this market

concentration and that's definitely a theme that has been popping up. And this week was really interesting. Kind of saw two perspectives on that, right, the the worrisome perspective, but also, hey, why why could this actually be a good thing? And I'll go through that data with you and look at some of the analysis on that. You know, are you getting caught up

in the the the memestock craze? This week we saw GameStop again, just wild fluctuations, roaring kitty if you follow that at all, pretty wild stuff. But you know it's uh, you know, we we saw it years ago and you know, we're seeing it again. I don't necessarily think it's a bad thing. For the markets, but obviously some of the focuses in

the wrong areas. And you know, lastly, if we have time, we can get into some of the conversations we're having with clients some of the ways you know, we've been helping them, and it was you know,

there's there's different ways in how we we work with clients. And there was an interesting article in Barns I was reading this morning about taking social security and you know, different strategies on that, and it kind of goes to some of the conversations that we do have and just the work that we do as a whole where you know, you can do you can run the numbers, you can you can do some hard analysis, you can have some tangible takeaways,

but there's also the intangibles in the work that we do and the gray areas in the work that we do. Not everything is you know, black and white. There's there's a lot of gray areas in personal finance because it's so personal to everyone. And you know, again you can you can have an analysis to say, hey, this probably makes more sense or we should probably go in this direction, but if it's not right for the client, if it's not right for their personal situation or they just don't feel comfortable.

That's where we look at those gray areas and they're like I said, there was an interesting article I think in Barons about security and and maybe what you would consider those gray areas and how we work with clients and so, like I said, some tangible, some intangible, but we'll talk about that as well. So again I'll give out the phone lines one eight hundred talk WGY. That's one eight hundred eight two five, five, nine, four nine.

If there's anything that I laid out there that you think or you find

maybe interesting or want to talk about, give me a call. If there's anything else that you're thinking about again, maybe from a retirement planning standpoint, from a financial planning standpoint, from the markets and what we're seeing in stocks this year, as we're getting closer and closer, which is hard to believe to the halfway point of the year, I don't even I was just talking about with some other of my kids classmates parents just about how you know it's

summer really started yet? Does a start when kids get out of school? And I joked, without a lot of laughs, that you know, right after fourth of July, summer feels like it's over. I don't even want to get there yet, but it is. We're almost there. We're almost at the halfway point of the year, which is hard to believe. But like I said, stocks are doing well and coming off a good week. So again, WGY that's one eight hundred eight two five five nine four nine.

So let's talk about the market for the week. SMP was up a little bit over one percent, NASDAK showing some strength, showing some signs of life. It was, you know, not that it was doing bad for the most part of the year, but it was just slightly lagging the S and P, which is, you know, really interesting because typically you don't

see that in a bull market. Typically, you know, we're seeing the Nasdaq and those large cap growth companies really act as the leaders, and they they really have been for the most part, but they were they were, you know, slightly lagging the S and P for most of the start of the year. But NASAK was up two and a half percent, up thirteen percent year to date. The S and P is up twelve percent year to date. Dow was up about a quarter percentage point for the week. It's

only up three percent year to date. You know, we've talked about the ins and outs of the DOW versus the SMP, the NASTAC, so I won't bore you with it, but you know, I do think probably for the overall market, you know, typically speaking, SMP is probably the best gauge of that best benchmark. Looking at the overall market gives you kind of the best diversification of the types of companies that make up our economy, how they are, you know, between sectors, sub sectors, whatever it may

be. But SMP, you know, in our minds, is probably the best benchmark there. And you know Nasdaq being those technology companies, especially those large cap tech companies which you know are made up in the S and P five hundred as well, but the nasacs about you know, more than sixty

percent made up of these technology companies. So certainly a growth area typically see some real strength there when when the markets are up, and like I said, within the last couple of weeks, we've kind of seen a a nice little run there. For for the NASTAC when we had some some volatility and in fluctuations back in April early May, you know, that was an area

that wasn't holding up as well. We saw some you know, more defensive areas of the market, like staples, utilities kind of kind of do well during that period, and we had a little bit of a market sell off, and I was going back, I think we were talking about this at the time because markets had sold off a little bit more than five percent, but you know, we had We've had I think about thirty of those five percent sell offs over the last fifteen years, so it's pretty normal, pretty

typical twice a year, you know, give or take. When we see volatility like that. You know, fortunately for us, not many clients of ours we're panicking, but it can, you know, can can worry investors, and especially as we're hitting all time highs. I said it in the intro a little bit. All time highs is typically a time when when clients get a little fearful right of markets. They're hey, we've gotten some great gains, We're we're hitting all time highs. You know, when should we

expect to pull back or when is that pullback going to happen? I want to get defensive. But when we've shown it, we've done it in some of our quarterly webinars that we do for our clients and shared it with some newsletters. But you know, there's some great, great data sets out there that show, you know, when markets are at all time highs, that tends to be a good thing for the overall market. That tends to be a catalyst. Right, you have a lot of momentum, the market's doing

well. That tends to be a good time to be invested and to get invested. So it shouldn't worry us as investors. I think with Friday's mild sell off, it wasn't much of a sell off on Friday, but with a little bit of a mild sell off, we're just off of the all time highs. But you know, the market continues to push forward. It continues this you know, whether you want to call it kind of a mid

cycle bowl market. You know, that's kind of where it feels like, just in terms of where we are economically speaking, right, we still have growth, maybe a little bit slowing growth, but still growth. Nonetheless, some of the leaders in the market that we're seeing do well, you know,

healthcare, uh, you know, financial is doing well. These are good signs of where the market is, you know, from a market cycle perspective, and you know, we're seeing market leadership in the stocks that are doing well, you know, continue to have solid, if not you know, exceptional earnings for some of these You think of a Navidia which is just going game busters and you look at you know, their earnings growth, and it supports what what the price of the stock is doing. And and that's

something that I think is so important right now. And and we'll talk about a little bit later in the show when we talk about, you know, some of the market concentration. But you know, we are in a much different market environment today than we were. You know, let's say back in the late nineties and two thousand, where uh, you know, a lot of those leaders in the market, and in a lot of the stocks that were going gain busters at that time through the uh you know, the tech

boom and bust. Uh. You know, they didn't have the earnings to support what they were trading at. They didn't have the earnings to support where their valuations are at. And we're in a much different environment today than we were back then, when where these companies are making money and you know, they're adding to the economic bottom line and that's a good thing. And we

continue to see growth there. So you know, valuations may be a little frothy, it's it's they are a little higher than I would say they cole average. But again, we we have earnings to support growth here and as long as the economy stay strong, as long as these companies continue to do well, you know, they should be able to support where their valuations or at least grow into those valuations as time goes on. And again, our

phone lines are opened. If you have any questions you want to call in, give me a call one eight hundred WGY that's one eight hundred eight two five five nine four nine. I'm going to take a quick commercial break, and when we come back, let's focus a little bit and discuss, you know, Friday's labor report. We'll talk a little bit about the jobs growth that we saw in May you know what that means to the market. Why did we see us sell off? What do we see in the the bond

market? Right? We saw rates I shared at the intro and we saw rates spike the highest jump in in over two months, and we've seen a lot of fluctuation and volatility there. So talk about sort of where expectations are for the FED in future hikes, and we'll just get into why that report was. You know, I think for a week's worth of data, I think Friday's report was really really important. So a touch upon that. When we come back from break, you're listening to Let's Talk Money here on eight

ten one O three one WGY. Hey, welcome back to Let's Talk Money here in eight ten and one O three one WGY. I'm Ryan Bouchet, and thank you to all the listeners who are tuning in and joining me today. Appreciate it and great to be with you again. I'm good. Phone lines are open, give us give out the number one eight hundred talk WGY. That's one eight hundred eight two five, five, nine four nine. We are going to go to the phone lines. We have Robert in Rexford.

Robert, how are you this morning? Thank you, you're welcome. Good morning, Ryan, thank you for being able to come back online. I wanted to wish you my heart, first of all, my heartfelt sympathy for your recent loss and and not the market loss that is, because that hasn't happened. I appreciate that, thank you, thank you, I appreciate

that you're welcome. And second of all, i'd like I would like to ask you how and and I wonder the same how you gauge as I've been a long term investor, how you and how you engauge the the upcoming elections effect on the market. As the the political risk hasn't affected the market, what's going on in Ukraine, Israel and so forth hasn't affected the market in

a negative way. I wonder if the upcoming election could affect the market, in other words, the volatility factor based on and I don't want to get into politics, but based on who wins the election, right, whatever your opinion on how you deal with that kind of a I don't know what you call it, but unknown. Yeah, no, it's it's a great question.

And appreciate it, and thanks for giving us a call. Yeah, this is something we discuss and deal with often with with our clients, and I think it's a you know, this is a highly and heavily emotional topic and so it really affects kind of our thoughts towards investing portfolios. How it's going to affect the economy, and you know, I'll give a quick anecdote

towards it. So when we do we have our state of the Economy presentation for clients, beginning of the year in last year, so at the beginning of twenty twenty three, we had to pull at our presentation of what worries you the most about markets, what's got you, you know, what keeps you up at night the most right now, as really as the markets in the election this year. So at that time it was, you know, probably twenty months away, twenty two months away, and the twenty twenty four

election was the most worrisome thing. And so it's highly emotional and what we try to do and what we try to show, and we actually had a

piece of within our State of the Economy presentation this year. You could actually find it either on YouTube, Google, you know, twenty twenty four Bouchet Financial Groups State of the Economy, or you could find it at our website under our Insights and Perspectives t have but probably goes back to late January early February, But we talked about this and we share slides about this, and really when you look at it, historically election years tend to actually be positive

years in the market. They tend to average about eight or nine percent growth during those years. And we're seeing it right now, right we're already at twelve percent for the S and P year to date, so we're seeing a good year. The summer months actually tend to be the best months as well during election years, so these next you know, a couple of months may

be a good catalyst in an election year. And lastly, you know, the big thing that we see is that you know, no matter who wins, and you may I'm sure everyone does because again, this is a very emotional subject and rightfully so. Right I mean, it's it's part of the fabric of our country. It means a lot. You know, a lot

of these issues are really important to a lot of folks. But when you take a step back, you know, historically speaking, it really matters very little of who wins office, especially presidential elections, you know, Republican versus Democrats. The market is pretty resilient, and we've seen differences and changes in you know, laws and the corporate environment. And I always say corporations are so resilient that you know, typically no matter what is thrown into in front

of them, they find a way to overcome it. We have a great capital list society in terms of how our companies can operate, and we have so much innovation and so much growth that you know, I really truly believe that the election will matter very little in terms of how that continued growth in the market goes. Now, we saw it, you know, we saw it when Trump won the election. You know that would be now eight years ago. Right in a really short period of time. We can see spikes

of volatility. The market shifted that night, the futures market shifted between seven and eight percent to the downside. Then it bounced back up, so we

could certainly see I think short bouts of volatility. But I think if you're a long term investor like you mentioned, Robert, I truly believe that it's it probably doesn't matter as much as most people feel it does, because you know, I know you're going to see the headlines of how important this election is and how it's going to drive markets, but I can almost assure you that it probably will will play very little into what the stock market does.

So I hope that answers it. I know we're coming up against our our news break momentarily, but hopefully that helps answer it. Robert, did you all right? Thank you so much for calling in and really appreciate it this great question, and thanks for your kind words. It's it's a good it's

a really good point. We deal with it often with clients, and like I said, if if you're able to find it either on YouTube or on our website, our State of the Economy presentation, I know, we have a couple of slides there that we deal with election years, and we deal with, you know, how we should be viewing markets in election years, because it's it's on top of investors' minds, it's on top of our client's minds, it's on top of you know, prospects that we meet with minds.

It's uh, it's super important and it means a lot to a lot of people, and so they they're always thinking about it as it relates to investments. And as I said, we are coming up to a news break momentarily, so stay with us. When we come back, we'll talk a little bit more about May jobs report, markets overall, and have some other good topics. You're listening to Let's Talk Money here in eight ten and one O three one WGY. We'll be back after the news and welcome back to

Let's Talk Money here on eight ten and one O three one WGY. I'm Ryan Bouchet and it's great to be with all of you today. Thank you for taking the time and tuning in and being part of the show. As we had Robert call just before the news break and ask an important question. It's, like I said, it's something we talk to clients about often,

probably more than you may think. It really has a big impact on you know, sentiment of the market and how people are framing the markets and how they're viewing it, and so we try to have these conversations with them, and you know, from our perspective, we are trying to use good data, good information to help make the best decisions for our clients. And you know, I'll get into a little bit about we've talked about those gray areas

of investing and well not so much investing, but maybe financial planning. I think that's probably a better way to put it, the gray areas of a personal finance, right because it's so personal to each and every one of us, and sometimes there's there's not a right answer. But we try to, you know, make the best decision for clients' situation in what they can live with, because if we can make good decisions and ones that they can they

can make and stick to that's what's most important. Right. They don't always have to make the one that's going to maximize every single dollar, right, even if you can, you know, show an analysis why that's the right decision. If they can't stick with it, or they're not comfortable with it, or they're uneasy, if they can't sleep at night, well maybe it's not the best decision. Maybe it's not the best fit for their situation. And that's a gray area and that's where we had a lot of value in

our relationships with clients. I'll talk a little bit about that, and if anyone else out there does have questions or want to jump in and be part of the show, give me a call. One eight hundred talk WGY one eight hundred eight two five five nine four nine. And you know, I've been reading. I've been rereading. An old colleague, you know, gave me a copy of this book years ago. It's a great book. It's called Simple Wealth, Inevitable Wealth. It's written by Nick Murray, and it's

it's really a good read. It's a quick read. And every once in a while we'll try to, you know, reread books that just generate ideas, generate talking points, generate just things to remember in the work we do and with the clients that that we serve. And you know, I think sometimes we you know, we have conversations, especially you know, with prospects

and you know, talking about what's our value proposition. Right, There's a lot of things that we do so well and we have such a great team you know, with us that we can we can do so much more than you know, we were ever able to do. And as we continue to grow and add these areas of expertise and value to the relationships and the clients that we serve, it's it's just it's a wonderful thing to do in a

wonderful place to be. But sometimes, you know, when we talk about our value add you know, some of it is tangible, right, you know, maybe it's with the portfolios that we're managing. Maybe it's with you know, tangible financial plan that you're walking away with and and have some recommendations

and have some takeaways. You know, I had a I had a uh client situation where we're able to you know, help them, you know bridge you know, buying a home and selling a home and doing so in a way where we didn't have to sell out fully of of some appreciated positions incurring a big tax gain, right, you know, it's it's a good thing. I always say, it's not always a bad thing. When you when

you have taxes, it means you're making money. But we were able to, you know, get creative and do some really good planning to save you know, tens of thousands of dollars in terms of not having to take gains because we were able to you know, bridge that gap. And you know, these are some of the things that we do that, like I said, are are kind of more tangible in the work that we do and in

working with clients. And it's a great thing to do. But you know, there's a lot of these intangible areas and in these gray areas that that we work with clients. And I will tell you one of the one of the intangibles is getting through some of these election cycles and getting through the politics. As we always say, because listen news headlines, you know they are meant to sell, right, news sells, and what sells the most is fear. And we all know this. We all know how fear can sell.

And people are fearful when it comes to elections if it's you know, a candidate that they maybe aren't believing in or don't agree with their economic policies, whatever it may be, you know, it can deter you from wanting to be invested. You know, you think the economy is going to go down. You know you hear the headlines or you watch the news that hey, we can't you know, economy is not going to grow with with Biden

in the White House. Well you know if you didn't, if you weren't invested over these last two years, you'd be missing out on twelve percent gains this year, twenty five percent gains last year. And that can be so so detrimental. So even if you don't agree with maybe all their politics,

it's it's really not a reason to not be invested in. So the work we do encouraging clients to stay in invested, encouraging clients to block out that noise, I think is some of the intangible value where hey, maybe maybe you can't you know, point to it up front in a relationship, but I can assure you over time and how many clients or prospective clients we've helped get invested and helped stay invested to help them make money in in some of

these times, and I assure you elections are one of those biggest, biggest headlines that clients in prospects are fearful of. I'm gonna go back to the phone lines. They are open. One eight hundred WGY. That's one eight hundred eight two five, five, nine, four nine. We have Karen and colony. Karen, good morning, Thank you for giving us a call. Good morning to you. Thank you for your time. I have a question. Excuse me. My mom recently passed away a little over a year

ago, and I'm sorry to hear that, Thank you. My question is there was some stocks and m and they need to be transferred I guess out of the estate and put into our individual names. So in doing so, what is the liability like tax wise? What happens with that if it just goes from the estate to us as individuals, how does that work out? Or aren't there any uh tax liabilities until we receive dividends? Yep, No, it's a it's a great question, Karen. Thank you for the call.

And this is something that we help clients with often, whether they find themselves in a situation that you're in where you had maybe a parent pass away and you're the beneficiary, or if we're doing it from you know, in a state planning perspective, where we're helping facilitate this for existing so that they can maximize the wealth that is being transferred to their children and to their beneficiaries. But Karen, in your situation, it really oftentimes depends on what types

of accounts they're at the assets were held in. If they were being held in you know, an IRA or a four oh one K type of account, you would have to then open a inherited IRA, and so there's different rules depending on you know, the age. If they had an IRA and they were taking their require minimum distributions, then there's going to be rules for you over the over the next ten years in an inherited IRA where you have to take some of your own rm ds and you have to liquidate those funds

within ten years. So so really, if it's an IRA that you're inheriting, you know, the tax issues or consequences are going to come in the form of when you take those distributions from it as it sits in your own inherited i R. Right if it was in a taxable account in your mother held stock, there is a what they call is you know, if it's outside of a certain types of trust, because in certain types of trust, if it's an irrevocable trust, you know, there can be different treatment there

as well. But if it was just sitting in a taxable what we would call taxable brokerage account, then what happens with those stocks or mutual funds ets, whatever they may be. They actually get what they call a step up in cost basis. So you know, let's say, you know, just for big an example, you know your mom had bought a stock for ten dollars and it was trading at fifty dollars at the time of her passing.

Well, you know that forty dollars worth of gains actually gets that step up, so that when you inherit it, that cost basis would now be fifty dollars. So if it's a situation where you're continuing to hold it, you you know, you have your own account and you can work with you know, a financial advisor, with a tax accountant, with whoever's helping settle the

estate to help get that step up and basis. And like I said, you can either decide to continue to hold on to those stocks, if you sell it, the gains on that would be based off of that new updated what we call cost basis, Right, that's what you buy a stock for. When it gets that updated what they call step up and basis, it tends to be more beneficial for those who inherit that account because it kind of lowers what that tax expense would have been if they sold it for that original

cost basis. So hopefully, hopefully that helps answer it. Maybe you know, you have a little bit more specifics in the situation, but typically speaking, that is what happens, and really there's there's no you know, wouldn't be a tax issue until you actually go to set some of those stocks or some of those positions that that your mother had. So is my understanding that the taxes would be based like for example, like you said, at the time of a passing, say it stepped up to fifty from ten, Yeah,

that it would revert back to her passing. And say at this point from her passing to now it went up to sixty, would we be we would be when it transfers into our name, it would be liable for the fifty, But then after that what happens. I'm kind of confused. Yeah, so your gain so in that scenario, if it moved up to sixty only when you go to sell those positions, you would then be taxed at ten dollars worth of gains rather than you know, from the original cost.

Let's say if it was ten you would you would have had you know, maybe your mother would have had the forty or the fifty dollars worth of gains when you get that step up in basis now you would only have that ten

dollars worth of gains if you were to go and sell those positions. So make sure it's really important to make sure that you work to get that step up in cost basis as the estate settles and as you as those positions come into your name that like I said, you go back and you see what those you know, what the price of the stock was at the time of passing, so that you can get that step up and basis if it's a taxable type of account. Yeah, okay, so I get it now.

Thank you so much of your time. I am get your help absolutely and sorry to hear about that, and best of luck as you go through this. And if you do need any you know, assistance to feel free to give our offices a call if you're having trouble as you go through that process. Thank you, Ryan, and thank you for your condolences, and God bless your day. All right, thank you Karen, and thank you for the call. Getner phone lines are open. We're we're getting to the end

of the show, but we still have some time. We got about fifteen minutes one eight hundred talk w g Y. That's one eight hundred eight two

five, five, nine four nine. Then as we share with Karen, I mean, this is something that we work with all the time, and it's not it's not just you know, in in kind of this phase that that Karen is going through as as a beneficiary is even though we do, you know, help a lot of folks, you know, through this transition process and trying to figure out how you know, the the accounts that maybe they're inheriting affects them from a tax perspective, and like I said, there's

all different treatments based on you know, what type of accounts they were, if it's a taxable account versus an IRA type of account and getting a inherited IRA and the new rules that you know, I say new rules although they've probably been around now for for four or five years, but you know the rules where you have to you know, liquidate and inherited IRA within ten years.

And if the you know, the individual who pass was taking rm ds already, then you have to take some rm ds throughout those ten years and and figuring that all out. But you know, part of the work and again this is this is the value we add to our client relationships is how much of this estate planning we do with clients ahead of time? Right, This goes into Right, we do an amazing job with the portfolio management and

the investments, that's a big part of the work we do. But the financial planning, and it's not just retirement planning, right, It's not just hey, I have to get to what's what's the number if I spend X dollars a year, how much do I need to get to for a retirement. It's not that simple, right. It's it's something we do and it's something we work with clients on. But there's so much more that goes into that. It's planning around hey do you have today and what's your goal with

this money long term? And it's not you know, just for you know, twenty or thirty years of retirement, but oftentimes it's multi generational. How can we help that next generation? How can we you know, especially when it comes to taxes and in what you have, it's it's not just how much you make, but it's how much you keep. And that plays a significant role with legacy planning in the state, planning and planning for that next

generation or the generation after. How can we maximize what you have and how can we set it up to maximize it so that you know, we can find ways to create the right types of accounts, the right type of plan so that you know, the next generation can can keep as much as you have earned and how much you've accumulated through the years. And we do significant

planning around that. And like I said, with some of the new changing laws, especially around I raise and how they're distributed, we're doing more and more planning around that. You know, just for an example, Wroth conversions have become much more significant as part of our planning tools because again because of the way that iras are now required to be distributed within ten years, that can create a huge and a pretty significant tax liability for that next generation.

And so for some clients, you know, historically we wouldn't do a lot of wroth conversions for clients, especially retired clients, because you know, there just wasn't as much upside or so much as much to gain from that. But as the laws have changed and how the environment has changed, you know, roth conversions can be a good planning strategy. And again it's hard to quantify actually how much that's going to save. But for the next generation.

If you're in a you know, pretty you know, have a pretty rock solid financial plan and can afford to maybe pay a little bit more taxes today, it can save significantly for that next generation. You know, even going back to Karen's point on you know stocks we we plan for. You know, maybe some older clients who you would think, hey, you know, it probably makes sense to be pretty conservative at your age, you don't you don't need stocks to grow as much at this point, maybe to get you

through the rest of your retirement years. But if we're again we're planning multi generationally for our clients, we're thinking long term all the time, you know, stocks may make more sense, right because you know, maybe we're not just planning for the next ten or fifteen years for you, but we're planning for the next thirty to fifty years for the next generation and with some of

the tax law and you know, a step up and cost basis. Well, if you have significant position, especially significant stocks with huge gains because you've held them for twenty years, well you know there can be some real tax benefits to passing those on to the next generation, and so stocks may make

more sense for you than having to get conservative and holding bonds. And like I said, these are the conversations we're having every day with our clients to add value, to plan for them and make sure that you know, we're planning for their beneficiaryas and for that next generation so that they're in the best position to succeed and understand you know, what's there and the planning opportunities that we have in front of us. And like I said, with the team

that we have in place, we're very, very fortunate to be able to do that type of work for clients and to you know, get them into a good position so that they're comfortable and they know things are taken care of. So again, thank you, Karen, appreciate the call. Appreciate you, you know, sharing some of your situation with us so that we can kind of help talk about it and explain how that can all fit. So again, thank you again. Our phone lines are open. Got about five

or six more minutes today's show. Love to hear from you. If you have any questions that we can handle in these last few minutes, give me a call. One eight hundred talk WGY. That's one eight hundred eight two five, five, nine, four nine, And again, we love we love the calls. It gets us off on different tangents. It allows us to talk about different topics that maybe we weren't planning to talk about, but you know they're probably important to not only you as a caller, but a

lot of the other listeners. They have a lot of these same concerns and a lot of these same questions. So I think it really helps the overall discourse and conversations. So appreciate those calls. Wasn't really able to talk too much about the jobs number, but you know, why don't we close with that real quickly, just kind of how it fits into what we're seeing in the markets and the economy, and you know what it may mean for the

second half of this year. But we had a pretty good jobs number on Friday, two hundred and seventy thousand jobs we're creative versus about one hundred and ninety expectations. And why it was so important, I think twofold right, we had been getting some weaker than expected data both in the economy but also you know past jobs. The April jobs number wasn't as strong, so you know, Mays was really important, and we saw a little bit of a bounce back, which I think is a good thing. I think this is

what we want for the economy. Even though the markets didn't react, you know, great at first, but I think it's still an overall good thing. We're gonna go to the phone lines quick in these last few minutes. We have Ted and water really Ted, thanks for giving us a call. We don't have a lot of time, so if you have a quick question, let's let's get right to it. Hey, thanks for having me. I'll tell you what, let's skip the question. We have no time.

I'll call it back again. Love your show. You do a fantastic job, and I'm very grateful. Oh, Ted, Well, we appreciate those kind words, and thank you for giving us a call. And thanks for that, and we'll uh, we'll have you back on and in one of our other shows maybe next week then yeah, I'll call back. Thank you for everything, all right, Ted, Well, thank you for the kind words and appreciate the call and just appreciate the hello. So again, thank

you. I will you know, we'll get into a little bit of these these jobs numbers for the last you know, two minutes or so and so, Like I said, April's jobs report was a little weaker. And you know, there's an old Wall Street analogy, especially when it comes to the unemployment rate, right usually comes down as an escalator, so over time, as their strength in the jobs market, you know that unemployment rate will come down, but it can it can rise like a elevator where it can rise

really really quickly. So when we see some headwinds and you know, a weaker jobs market, you know that tends to happen pretty quickly and can be you know, somewhat recessionary in terms of the quences of that. But you know, we had a nice bounce back in May. The unemployment rate did actually tick up a little bit. But you know, we're now at twenty eight straight months I believe it is. It's twenty eight or twenty nine, you know, So sorry if I'm off a month, but twenty eight or

twenty nine months of four percent or lower unemployment rate. We hadn't seen that in since the nineteen fifties, so seventy plus years some of the best jobs market that we've seen. And like I said, you know, I talked about this earlier inflation. Yeah, we don't like that. I know it's hard. Higher rates. We certainly don't like that. If you know, especially in your if you're a business owner trying to expand your business, if you're you know, shopping for a car, if you're trying to purchase a

home, it's it's definitely a tough environment. I don't want to diminish that. But you know, the Fed is doing what they can to stabilize both the economy, right, they have that dual mandate. They want to keep inflation steady and they want to keep unemployment low. And you know, you may agree or disagree, but you know, overall, it feels like we're doing an all right job there. Right. The economy is still growing. We had that great report on Friday, you know. The concern earlier in

the week was what they called the Jolts Report. So that's the Job Openings Report, which had come down a lot more than what was expected, and so there was some you know, nervousness that this this great jobs market was slowing down and maybe the economy was slowing down. But we had that nice bounce back and this was a good thing in those job openings. Job openings

as a percentage of labor force still at four point eight percent. It's higher than it was pre pandemic, and it's much higher than what the average has been over the last twenty years. And these are charts I'm actually putting together for our quarterly webinar at the end of June, so in a couple of weeks, so you know, these are all things that we're watching and like I said, I think it's an overall pretty good thing and it shows that the economy is on solid footing. So we are coming up to the end

of the show. Again. Thank you so much for spending time with us today. Thanks for the calls. We had great discussions today, great topics. You can catch us Saturdays at ten am Sundays at eight am here on eight ten in one O three one WGY. Have a great rest of your weekend, everyone. Thank you for tuning in. Thank you