And good morning and welcome. Thank you so much for tuning in. You are listening to Let's Talk Money here on eight ten and one O three one WGY. I'm Ryan Bouche and will be your host for the next hour. Excited to be here and happy to have all of you listeners tuning in as you oftentimes do on Sunday and Saturday morning. So I know we all appreciate it
and love having you part of the show. So if you do want to be part of the show and have questions or have a topic to discuss, again, give me a call one eight hundred Talk WGY.
That's one eight hundred eight two five, five, nine four nine.
I have plenty that we can jump into and discuss, whether it's market related, you know, the economy and the fan and I know that's always been a hot topic over these past few years, and you know, even more so as we kind of enter twenty twenty five with some added uncertainties and you know a number of financial planning topics and things that we've been dealing with, you know, as we work with clients, and you know, oftentimes I think a lot of those situations may mirror some of
the listening audience's situations, right. We we oftentimes see a lot of clients deal with the same challenges or you know, questions and issues as they approach retirement or maybe entering retirement and happy to talk about that. So again, we have a great show today. Thank you for for tuning in. One eight hundred talk WGY. That's one eight hundred eight two five, five, nine, four nine. So we can talk about the market this week. You know, earlier in the week,
a little shortened week. We had Monday off. I am just getting back into it. We had you know, kids school break this past week, so my three kids were running around and.
Enjoying their time and you know, now getting back to it.
So we had a shortened week in the markets with Monday being a holiday and Tuesday Wednesday we saw SMP hitting all time highs and we kind of had to reversal on the back half of the week. We can you know, talk about what's driving that and really what the you know, the motivation or or triggers for that reversal midweek and what we're seeing in the overall market today. You know, I saw a lot of headlines about this.
Maybe maybe you have too, but Warren Buffett having a huge cash position right now and his Berkshire half the Way fund, you know, and I think a lot of maybe misinterpretation there or you know, concerns revolved around that.
We could talk a little bit about.
He just put out his client letter which had some interesting topics within it, so we can we can talk about that.
You know, the FED in the economy.
FED came out with the statement this week not necessarily in a rush to.
Cut rates.
You know, I think the sentiment around the FED has changed pretty dramatically since the second half of last year, and I know the FED gets a lot of criticism and you know, maybe sometimes rightfully so maybe sometimes not so much. It's hard to you know, argue against what
they've been doing over the past few years. You know, when you step back and we're kind of in this relatively strong economy given all the challenges and headwinds that that I think the FED has faced, given the level of inflation and everything else that they've had to deal with.
But you know, we're kind of getting into this period now where you know, maybe a little uncertainty around the economy, maybe some uncertainty around what inflation is going to do next, and so we're certainly seeing a little bit of a different tone in perspective from the Fed and what that will mean, you know, moving forward, whether it's you know,
how it impacts you directly. Maybe you're you know, approaching wanting to buy a house and you're looking at, you know, where mortgage rates are today and the impact that you know, the ten year Treasury has on that. I think that's really kind of the bell weather the benchmark that drives a lot of our consumer lending rates, and so that has a much bigger impact than kind of what we've seen, you know, what the FED does on the short end of the curve and the Federal Fund rates, which is
more of a very short term lending rate. And we've actually you know, seen that reversal really since the FED began cutting rates back in September, and so I don't think a lot of folks were expecting that, and certainly it's had that impact on the overall market because you know, it's the fedest cut rates the longer end of the curve with impacts again most consumers and their and their ability to lend has gone straight up since then, and and we've seen it be pretty volatile over the last
couple of weeks in months, and so we can kind of talk about impact that's having there. You know, a lot of a lot of I don't know, concern is the right word, but definitely getting a lot more questions from you know, either prospective clients or current clients revolving
the administration right now. And I do think, you know, we've seen a lot of headlines and you know, we've we've had a Trump administration in the past, we've had four years of his presidency, uh, you know, prior to President Biden.
But a lot of you know, I think a lot.
Of headlines recently have made you know, some folks a little you know, uneasy as to what's next, whether it's geopolitically, whether it's the impact of you know, trade discussions more you know, home and domestically and how that's going to impact you know, both markets, but you know, just the general uh you know, sense of of what's going to happen from here and some of that, you know, again markets and in consumers, you know, individuals like you and me.
You know, no one really likes uncertainty. And I do think some of the headlines have been you know, peaked a little bit more from a uncertainty standpoint, So having a lot of questions about that, if you if you do yourself happy to kind of walk through some of the you know, major topics there and then you know, I said earlier, we can talk you know, some of the conversations we're having with clients.
You know, we we were talking a lot about the four.
You know, the general four percent role, right, that came up with some client conversations, uh this week. And you know how we think about that, right, because we're working with clients all the time. Uh, you know, our our
clients vary in terms of life situations. Some are still uh, you know, high earners building accumulating wealth, Some are entering that phase where they're starting to think about retirement you know, in the next maybe couple of years, and others you know, have been retired and have been doing it for some time. But you know, oftentimes we do talk about, especially with retirement strategies, you know, the four percent role, the old tried and true four percent rule on distributions and and
what that means. And so we had some pretty extensive conversations with clients this week and talking about how we think about it, right, I you know, to me personally, I don't think there's any you know, hard and fast rules around this. I do think you have to you know, I do think it's a you know, a good starting place for a conversation or to be thinking about it,
and maybe just a rule of thumb. But there's just so much more that goes into all of this, you know, not only from you know, the dollars and cents, but again, you know, we talk about this often too, is this psychology around retirement and how much of a change that is for so many people and you know, walking through these conversations and these situations because it is, you know, it is difficult even if you're in a great financial place.
You know, not only the change in your work life and maybe going from you know, working to retiring and all the changes that that brings about, but also the psychology around money and your investments.
Right You've been accumulating, you've been saving.
You've been doing such a great job, and now all of a sudden you have to start pulling from that, and you know that makes it that has a huge impact, I'm folks, and rightfully so, it is a big transition. We were joking, how you know, oftentimes we react as you know client, especially during this time of retirement, you know, as as financial psychologists going through it.
And that's a big part of our job.
Like I said, you know so much on the uh you know, the dollars and and the numbers and making decisions based around that, but there are so many times where we help clients navigate their financial situation and a lot more of emotional senses and topics, and you know, sometimes they can be difficult conversations, but I know how much of an impact that has and how much we can help clients go through that. So again, our phone
lines are open one eight hundred talk WGY. That's one eight hundred, eight two five, five, nine four nine.
We're gonna go to.
The phone lines. We have Nick in Boston. Nick, how are you this morning? Good?
How were you Ryan? First time in a long time.
I'm doing great. Thanks for calling in.
So my question is on the economy what you were just talking about, and really what what what indicators should investors be watching right now? And has the market accounted for some of Trump's policy volatility?
Yeah, it's it's a great question, and this is something like I said, we're talking to clients out often right now. And you know, I think from an economic standpoint, right the one thing that I think drives the economy. And many people think this isn't you know, a one off idea, but I think one of the most important, And we had some readings this week that came out. Driver of the economy right now is going to be the jobs market. Right the labor market is critical to the strength of
the economy. Some folks are worried about, you know, maybe some of these governmental job cuts, but you know, those are those are immaterial when you kind of look at it from a grand scheme of things. This week we had you know, continued unemployment claims number came in below average for the last three to four years. This is again, this is just a sign of strength in the economy in terms of kind of market indicators.
I do think what we're seeing right now.
Is a little bit of a change of pace within this administration.
Right.
We had, you know, if you go back to Trump's first term in office, right, technology stocks did really well, Financials we had super a ton of strength in the US markets versus overseas, and you know, since the inauguration about a month ago, you know, we're kind of seeing a little bit of a shift in the market. Consumer staples, healthcare, some more defensive areas of the market are actually outperforming.
Uh.
This last month, we're actually seeing you know, consumer discretionaries, you know, technologies a little bit flat. We're kind of seeing a reversal of what we saw in his first administration. Doesn't mean it's necessarily a bad thing. You know, we're going to see, you know, shifts in the market. I think some folks were spooped up with you know, some of the tech valuations that we saw some of their investments.
We can talk about this later into AI which.
I think you know, long term are going to pay dividends, but they're not seeing a lot of the growth on the bottom line quite yet. So valuations are high there. You're seeing a little bit of a rotation into defensive sectors. But you know, I think when you take a step back, you look at the economy, you look at the stock market. You know, we're still in a healthy, you know, bull market, and so I do think, you know, it may help
to have a little bit more diversification. Right We've seen you know, the mag seven drive the market over the last two years, especially this may be an opportunity to just kind of look to rebalance portfolios or take a step back and really see how, you know, understand your risk sentiment and understand kind of where your you know, maybe not have all your eggs in one basket, so to speak. So that's kind of how we're thinking about and what we're looking at right now.
Nick.
That's great, Thank you very much, appreciate the time.
All Right, you have a great day again. Our phone lines are open one eight hundred talk w g Y. That's one eight hundred eight two five five nine four nine. We're going to go back to the phone lines. We have Jim in Rockland County. Jim, how are you this morning?
Pretty good? How are you doing, Ryan.
I'm doing great. Thanks for the call.
One to ask you a question. I guess it really concerns what I would call a prodigal air. We have somebody that were my wife and I plan to leave a chunk of money too, and the person really hasn't demonstrated any ability to handle money. And I know annuities are not big around the Bouchet household, and I was just wondering what would my alternative be so that this person receives an income but doesn't get a whole bunch of money all at once.
Yeah, this is a great question. And you know, to me, Jim, this kind of this falls in line with some of the work.
We do around state planning, and you know, we don't have state lawyers in house, but we work with our clients pretty closely with their lawyers and outside professional to really kind of navigate some of these situations and circumstances.
And you know, in.
Something like that, sometimes one of the best things you can do is come up with, you know, a trust that really lays out and can kind of help you, you know, mitigate some of these financial risks, you know, for your ben for the beneficiary. And that's what we see oftentimes, where it's a situation where you maybe want to have a little bit more control, you know, God forbid anything were to happen to you. But you know, when that time does come, uh to have those protections
in place. Oftentimes we do see it come through the use of a trust and you can, you know, come up with really specific whether it's you know, a certain amount each year or you know, maybe limited access to a certain age where maybe at that particular age you feel more confident that this individ can handle the financial
responsibilities that go into it. And along those lines, you know, finding you know, whether it's someone you know or going more of an independent route, and we help clients do this sometimes where you know, they need, they really want an independent trustee to help manage some particular type of trust for them, just so that there's no ill will or hard feelings with someone that maybe be a family member or a friend of the family and just go to an independent trustee to kind of help manage and
help make those decisions for that individual. But like I said, I mean outside of you know, I think you're probably bringing up the annuity in terms of what pays out on an annual basis and what they can access annually.
That maybe can help control it.
But I think if you have a situation that requires some fine tuning or really you know, some parameters around it, you know, one of the best ways to do it is around a certain type of trust to lay that all out.
Okay, so it would be the responsibility would be the trust see the success or trustee to dole out a certain amount of money each year.
Let's say, yes, so it could be that, but it's also you know, a lot of the parameters can be drawn up by you, right, and so kind of give that framework and you know what, you know, maybe what's allowed to be spent through you know, if it's an annual allotment, whatever that is, how that money can be used,
you know, what it can go towards. And like I said, that way the you know, there's guardrails up there, especially for that uh success or trustee to be able to handle those requests or disbursements throughout you know, whether it's five year period, ten year period, twenty year period, whatever that looks like. But you can you can really kind of be the one to drive what those parameters are and putting those guardrails in place, and like I said, that takes a little bit of the onus off of
the trustee. They'll go, you know, they'll they'll be able to use that document to you know, help make those decisions. But it can be really laid out by you know, the person who's who accumulated that wealth and in your situation, if that's you to to really you know, work within a state attorney to figure out what's most important for that.
Okay, Well, I thank you very much for your help.
Yeah, no, thanks for the question. And like I said, this is something we've dealt with in the past, and you know, sometimes these are could be challenging conversations, right, you know, especially if there's a situation where you know, the beneficiar maybe either on the younger side or you know,
maybe it's just a large amount of wealth. And you know, we see that, right, I mean, it can it can be overwhelming to maybe go from you know, nothing or or not as much money and then come into this, you know, kind of sudden, you know, if you're a beneficiary of an estate whatever it may be, but that financial burden and responsibility can be quite quite dramatic and overwhelming, and you know, and sometimes those protections need to be put in place, and like I said, one of the
tools and approaches that we see oftentimes is using a trust right to help set those parameters and guidelines put them into place to really help manage that on an ongoing basis. You know, if someone were to pass and having it with your beneficiary's one of the things that we do too oftentimes. And maybe not a situation like that right where we have to necessarily, you know, try
to protect or use a trust for those guardrails. But when we were working with clients, you know, we stress the fact that hey, let's let's build a relationship with the rest of your family as well. Let's have these conversations. Let's figure out what types of conversations are appropriate, you know today, and and you know how much to share.
Because not maybe not everyone.
And there was actually it's funny because there was an interesting article in bear it was in Baron's this weekend talking about the different generations where you know, maybe that boomer generation is more worried because you know, they came from maybe their parents grew up during the Great Depression. They kind of have more of a mentality around money
that there's just such a fear of running out. So they have a different approach to managing their wealth or managing their assets versus some of the younger generations, who you know, want to do more for their kids maybe or do more sooner for their kids. And that's what
the article is talking a lot about. And I think that's generational for for a lot of different reasons, right, But you know, sometimes it's hard having those conversations and sometimes you know, folks who have accumulated wealth and maybe are retired, you know, they want to keep things a
little closer to the vest. But you know, having these conversations, bringing the family into a conversation can do tremendous amount of you know help and you know, put them in a position that you know they can better maybe better handle this wealth, better handle you know, if especially if it's multi generational wealth, being in that position to handle that understanding, you know, tax impact understanding, you know, maybe what was important from a value standpoint from the parents
who accumulated that wealth. In having those conversations can go such a long way and better being able to better manage that for that next generation.
It's so important.
So there's so many different ways to to kind of go about that.
But it's a great question, Jim, and I really.
Appreciate you calling in and you know, sharing your thoughts and you know, thinking that through. But yeah, no, that's something that we deal with often and something that is a you know, sometimes can be difficult conversations. But I think get done in the right way and really done with professionals and thinking through what's important and you know that message you want to share, it can be done.
It can certainly be done. So I hope you know, wish you all the best of luck and the approach that you take, and I'm sure you'll find the right approach that works for you and your family. We are nearing our news break. I do have we have David and Amsterdam. David, maybe I can go to you quick, you can ask the question you have and then I'll I'll jump back into it after the news break, but we'll get you.
And we got a little bit more than a minute. So how are you. Good morning, David, Good morning Ryan.
This is the you said, David. I'm almost sixty. I'll be retiring in the next six to nine months. I have I was convinced that every years ago to buy a whole life policy. What are your thoughts about surrendering that and using cash value to purchase a term policy instead.
All right, yeah, that's a great question, David.
You know, like I said, we're approaching the news so I will get into that a little bit more after the news break, but it it's a great topic, and especially you know, if you're six to nine months from retirement.
I mean, to me, and we had this conversation with clients on Friday, actually, you know, to me, life insurance is all about income replacement, right, It's it's risk management, and it's risk management to be an income replacement tool for clients that are, you know, at retirement age or very close to retirement age.
There tends to be a lack of a need for life insurance, right.
I mean, you know, as long as you know you've accumulated, well, you're in a position to retire, oftentimes you don't need that income replacement at that time, unless maybe there's a pension, you know, something along those lines where you know, maybe there's some different planning needs. So, David, it's a great point. I'm going to come back to this when we get back from the news. So I appreciate you calling in and thank you so much. Yeah, so we got we'll
be heading to the news break. When we come back, we talk more about the markets. We'll get into this conversation about life insurance. I think it's an important one. And uh yeah, we'll have the second half of the show. You're listening to Let's Talk Money here on eight pen in one o three one w g Y. And welcome back to Let's Talk Money here in eight ten in one o three one w g Y. I'm your host today, Ryan Bouschet. Appreciate all the listeners out there tuning in
and calling into the show. We had a great start to the show first half. We're on the back half now we get another thirty minutes or so. So if you do have any questions, want to reach out, give me a call one eight hundred Talk WGY. That is one eight hundred eight two five, five, nine, four nine.
You know, we can get into a little bit of more of the market situation.
Talked a little bit about kind of this rotation we're seeing within the market, something that actually you know, started a little bit second half of last year. I think there is more enthusiasm within markets when Trump was elected back in November. We saw that both you know, in business sentiment surveys, we saw that in consumer surveys. We
and then we saw it in the market. Right it was you know, we had a pretty good pop, you know, with some of the you know, financials peck US equities leading the way, which it kind of goes into that original playbook. We talked about the Trump two point zero playbook in terms of what it means to the market.
Those are a lot of the the strength in areas of the market that did well during his first administration, and you know, if we have similar policies or approach to UH that administration, you know, you may see some
similarities into what's going to happen in today's market. But we are seeing a little bit of ah, you know, change in UH those leaders over the last month, and I think there's been a little bit of uncertainty within the market given you know, a lot of the headlines, whether it's been tariff related, which you know goes into
inflation and what higher rates could mean. And we were kind of in this you know situation where we thought rates were going to come down at the end of the year, and so the conversation sort of shifted and sentiments shifted there. You know, they they kind of reverse course on some of the initial talks of terrorists. But
you know, it's still a concern in inflation. You know, I would say is one of the biggest impact to consumer sentiment that we've ever you know, that we could see when you when you have times of high inflation, you you know, whether it's the you know, administration that's
in office and you know, being voted out. I think that played a big role in in November's election, But also you know, just kind of future expectations of what we're going to see in the strength of the economy and people's perception of it.
Uh.
You know, inflation is a big headwind and so still on the table, I think, and I think folks are still you know, a little nervous about that. We had some headlines about you know, Russia or Ukraine, and you know, these things may play out well, but you know, there's still geopolitical concerns out there and that can always have an impact on market. So again, I think you're seeing a little bit of a shift to uh more defensive areas of the market over the last month. But we've
seen this in the past. We've seen this over the last two years even and you know, those defensive sectors. If we truly are in this kind of mid cycle bull market, you know we'll we'll do well in certain environments, will do well maybe short periods of time, but it may not be uh, you know, a long term thing.
But you know, as I.
Said earlier, I think you know, in especially as we hit all time highs, right, it's a good time to just take a quick step back, take a look at you know, your portfolio and are you you know, is your portfolio aligned with what your financial goals are? Doesn't make sense? Are you you know, maybe things have gotten a little you know, out of top out of your risk tolerance, or you know, out of you know, what your your.
Target allocation may be. And that's okay.
You know that's going to happen, you you we want to ride that momentum, right, you know, we we talk a lot about I had these conversation, I talk about it on the radio oftentimes too. Is you know, sometimes people get scared of the market when we hit all time highs and history will show you, research will will back it up. Is that, you know, believe it or not investing at all time highs is the best thing that you can do over time.
It's actually better than not.
Investing at all time highs over the course of the market history. And the reason being is that you know, when we're hitting all time highs oftentimes there's a lot of momentum in the market. You know, all time highs create new all time highs, and that's a good thing. That's a good thing in bull markets. We know the market's up more than it's down historically, and so you
know that momentum can be a good thing. But if you know you're feeling, you know, some of that uncertainty, if some of the headlines are you know, have you a little bit nervous, You know, it's always a good time to just reassess where you're at, take a step back, look at your portfolio.
You know, are you allocated the way you should be?
And you know there's no you know, there's no formula for that, there's no right or wrong answer for that.
It was just talking to a client.
Uh, I think on Thursday about this or maybe Friday actually, but you know, we got to do sometimes that makes the most sense for your situation. And hey, maybe maybe certain decisions you know, may cost you a few dollars long term, and you know, if that works for you and it's okay, hey go with it. Right.
You want to you want to be able to sleep well at night.
You want to be able to make decisions that you are financially confident and comfortable, and you know it aligns with what you're trying to get out of your financial situation. And so you know, having walking through these conversations, going through these discussions, like I said, there's there's sometimes there's
there's maybe not a right or wrong answer. Sometimes there is, but oftentimes there's there's a lot of nuance, there's a lot of gray area, and uh, you know, working with an advisor and going through these conversations, like I said at the start of the show, out sometimes acting as a financial psychologist for a financial therapist for clients and families is part of our job versus you know, just coming up with the numbers aspect of it. So good stuff there, and uh, you know it's uh, you know,
they're important conversations. And again I'll just go back to uh, you know, earlier we had David Colin had a good question about life insurance. I'll give our phone lines out one eight hundred talk w G Y that's one eight hundred eighty two, five, five, nine or nine. If you do have questions or if anything I've gone over has sparked a new topic, give me a call one hundred again one hundred eight two, five, five, nine or nine.
But to David's point, so sounded like David is approaching.
Retirement, maybe six to nine months from retirement, and he's got a whole life insurance policy and he asked, you know what it makes sense to you know, get the cash value out, maybe put it into a term insurance policy. And so you know, without fully understanding or knowing what that whole life policy looks like, what the cash value is,
you know what it was intended for. It's hard to give an exact answer, but I will kind of talk about the framework of how we think about insurance and what the needs are as I shared just before break you know, life insurance to me, and you know, I think how we talk about it as a firm again, it's really meant to be income replacement, right. You know, maybe you're going through a situation where you have younger kids and you know you want to make sure you're
saving for college for them. Maybe you have a situation where you still have a mortgage on your home and you want to make sure if anything were to happen to you, you want that paid off, and obviously you want an income replacement. So you know, we'll kind of look at, you know, thresholds and what makes the most sense. And in a client's personal situation, is it you know, maybe one person working in one of the person's home
with the kids, maybe both spouses are working. How do we you know, fit the framework of that income that needs to be replaced. As you get closer to retirement, you know, to me, there becomes less of a need for insurance. Historically, with the state planning rules, you know, that's where we saw the use of whole life insurance as a wave for an estate planning tool. Because the thresholds are so high today, it's less so. The other time that I could see insurance being used, you know,
through retirement is if it's a situation where it makes sense. Right, You've got to go through the numbers on this, But maybe someone has a pension and rather than you know, opt for some sort of spousal benefit upon death, they look to purchase a life insurance policy instead to keep a higher you know, pension payout, an annual monthly payout, whatever that may be, and buy a life insurance policy to help supplement that should anything happen because they chose
not to do a spousal benefit. You know, oftentimes we do recommend the spousal benefit, but if it makes sense from a dollar standpoint to not have that and to supplement it with insurance, that may be a good way to go about that, you know, David, in your situation if you're six to nine months out for retirement, if you don't have a need for insurance, and like I said, I don't know the exacts of your whole policy, but it may be worthwhile to you know, look to cash
out and maybe you don't need life insurance. Again, if you're at retirement age, we tend to not see a strong need for most.
Of our clients to have insurance.
So again, without knowing your full situation, maybe that doesn't pertain to you.
Maybe there's a reason why you do need insurance.
But again just in terms of a general framework of how we think about it, those are a lot of the conversations that we have have and like I said, oftentimes, especially with the cost of whole life policy as you your retirement, that really may not be needed. We're huge fans of term insurance. We think that's really the best in terms of cost and what it gives you and
gives you the flexibility around it. And you know, we also say, you know, insurance really shouldn't be a substitute for like an investment.
Right, A lot of.
Times these whole life policies are are sold as a investment where you know, again, insurance is a risk mitigation tool. Life insurance in particular is a income replacement tool. You know, we don't view it as something that should be, you know, an investment for you because there's there's a lot of parameters, there's a lot of costs that you know, it doesn't always necessarily line up.
So appreciate the call.
If you have any other specific questions or something that I can go off of from that, you know, feel free to give us a call out the office, would you know, be glad to help you as you go through that decision making process. Again, our phone lines are open one hundred talk WGY. That's one eight hundred eighty two five five nine four nine. We have Pat in Albany pack in morning.
Hi, good morning. I am one of three individuals who are beneficiaries of an irrevocable trust. Each one of us is getting a different percentage. The trust is made up mostly of stocks, some mutual funds, some cash. I have three questions, what is the best or is there a better way than not in taking the inheritance, whether it be in kind transfer or cash before it's distributed. Number two, do we each have to take it the same way?
And Number three, what kind of professional should I be speaking with to consult with for additional questions.
Yeah, no, Pat, I appreciate the call.
And you know, if you're coming into this, I'm sorry for the circumstances that maybe you are. You're coming to this, you know, as we think about this, Yeah, there there's you know, I would say probably not one rule in terms of the approach to it, you know a lot oftentimes too, it can be you know, it may be written into the trust in terms of if there's any stipulations or restrictions.
In terms of the professionals working.
With and we see this and we've been dealing with, you know, with this a lot lately. Is you know, usually it's a it's a you know, team of three, I would say, right, because I think there's three big
elements that are usually being considered under these circumstances. One, there's a state planning attorneys if if they help you know, draft the trust or we're part of the estate, you know, knowing what the you know, ramifications, stipulations, if there's any again you know, guardrails around accessing the funds and what the trust lays out, they can be a huge and
very valuable resource. Having a CPA and someone who understands the tax implications is critical, especially if there's some complexities there. We oftentimes will you know, whether it's in house with with our tax CPAs or external CPAs working through this, but understanding the tax situation is really critical.
And then you know, I would say.
Third, and a firm like ours, right, a financial advisor wealth management firm maybe is helping manage the the funds or need help managing the funds and making sure that the management of those accounts is really aligning to what's stipulated within the trust, you know, accounting for if there's particulars from a tax situation in terms of you know, maybe certain income needs to be paid out versus you know, being able to dip into principle or whatever is being
laid out and uh put into that trust in terms of the access to those funds is really really important.
So having all three, I think working together and really coming up with the solid plan it is really important.
And like I said, that's something that we've been working with clients a lot lately. It seems like because you know, there there can be some complexities with this and inheriting, especially with the you know underlying wishes of the trust and how it's laid out. There can be very kind of unique factors and circumstances surrounding that. So that's that's I think historically how we see, you know, the best way to kind.
Of approach it.
Okay, that sounds great, thank you.
Yeah, hopefully that helps answer.
I know, I'm sure there's a lot of unique circumstances surrounding that and hard to get into, you know, every bit of it, but you know, kind of from a high level, that's that's how i'd be thinking about it and oftentimes what we come across when we're working in that type of situation.
All right, well, thanks so much, Ryan, I appreciate it.
Have a great day you as well.
I thank you for the call, and it was really good topic and like I said, one that can be rather complex depending on the situation.
So thank you for calling. Impact.
We have about ten minutes left. I'm going to go and take a quick commercial break, but when we come back, well the last piece of the show, you can give me a call.
One eight hundred talk WGY.
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Here on eight ten in one O three one WGY and welcome back to Let's Talk Money here on eight ten and one O three one w g Y. I'm Ryan Bouchet and I am your host today. Thank you so much to all the listeners tuning in. Thank you to the callers who called in some great questions so far today, we still have another seven or eight minutes. If you do have any questions or want to be part of the show, give me a call one eight hundred talk w g Y. That's one eight hundred eight, two, five, five,
nine or nine. We talked a lot about some planning topics today, and I think that's appropriate given you know, the work that we do as a firm, and I can tell you just how important that financial planning aspect
can be. And you know it goes to that concept and you know there's probably different ways to discuss it or talk about it, but you know, especially in how we're meeting with clients, right, there's maybe that difference of like IQ and EQ, right, the emotional intelligence versus you know, I Q intelligence if you will, And I think you know that goes into not only you know, how you meet communicate with folks, but you know how we think
about planning as well. Right, there's there's kind of like the hard number objective part to planning, but then there's a huge element of the subjective, right, that emotional aspect where you know, again maybe based on the numbers, a certain decision you could argue makes more sense, but emotionally, you know what's the right thing for your situation, what's the right thing for your circumstances, And so much of the planning is part of that, right having you know,
having these deep conversations, understanding what's going on in our client's lives, Understanding what's important, Understanding you know where their values lie, where you know they are most comfortable, because you know, at the end of the day, right you you know, your money, what you've accumulated, is there to support your wants, your desires, your financial needs.
And that's going to be different for everybody.
You know, everyone's going to have different priorities, you know, things that they value most, especially financially, and being able to walk through that having those conversations and you know, part of the retirement process, as I said, and I was working with a number of clients this week that it pertained to is right you want to know if you want to see the numbers, right, you want to see, hey, I've accumulated X. Can I live off of why for
the next thirty years or whatever it may be. And you know, you can show that and it can be a high uh probability of success. Right, And that's fine and well, and that's great, and you kind of see it, you know what, you understand it. But there is a there's a q emotional toll that folks go through as they retire that you know, you're going from a point
again of accumulation. You've you've worked for you know, forty plus years oftentimes you've accumulated all this wealth and you've done a great job, you know, saving hard, you know, finding ways to you know, extra pennies, dollars, putting into a savings.
Account so you can, you know, get to that next phase of life.
You can get to that retirement phase and be comfortable and be set.
But there's a there's a big switch.
It's hard to turn that switch on where again you go from that accumulation to now of a sudden you're withdrawing from that wealth, right, You're trying to preserve that wealth, and it's not easy, right and rightfully. So it's it's a huge shift. Not only that, but you know, your life changes a little bit. You think maybe going to work every day and now you have to find, you know, something to you you know, fill that void if you will, and and that can be difficult in of itself.
So there's a lot that goes into that process.
And uh, sometimes we've had clients that even joke about that, they're like, oh my god, this this did this felt like a you know, therapy session, like are.
We are we alone in this?
Like you probably don't deal with that often, and we say, you know, believe it or not, we really do during this phase because it is.
It is difficult. It's hard, and you want to you know, you want to be making the right decisions.
You want to be you know, having that partner with you, you know, not just your spousal partner, but you know, financial partner being able to be there, you know, give you that guidance, give you that help and support that you need as you go through these you know difficult not that it's you know.
Oftentimes it's it's a great time.
Right, You've you've gotten to that point where you can actually you know, retire and do it. Yeah, yeah, there's retirement parties, right, it's a time for celebrating, but there is a there is an emotional you know, change and toll that that can bring on to and and working with an advisor, working with someone who you trust and can give you that guidance, can can make a huge difference.
And I do think you know, through the planning phases and you know, a lot of the questions that we had today about planning for a beneficiary or maybe inheriting a trust, you know, thinking about life insurance as you near retirement. I mean, these are all topics of planning need and you know, it's.
It's so important.
It's so important to you know, figure out, have a game plan, know what you're doing, and it makes going through more difficult times, whether it's market difficulty, you know, maybe something in your own personal life. Having that framework, having that plan in place, makes going through that all
the much easier. It's you know, and maybe not everything is going to be easy, but you know, having that plan to fall back on, knowing that your financial affairs are in order, knowing that you have something to fall back on, and having that plan in place, and then you know on top of that, having the trust and guidance of a professional walking you through that or working with you is you're making those decisions can make a
huge difference. So, you know, that's a lot of the work that we do here at Bouchet, and you know, I think it's what really sets us apart in our relationships and in all the work that we do with our clients. And we're so fortunate that they trust in us to be part of that because they're you know, they're very personal matters. I mean, finance is so personal.
Until you know, have the benefit and be able to, you know, help our clients through these decisions and these phases of their life is such an honor and we we certainly don't take it for granted, and it's such a great part of our job. So I will leave it at that for today. We got about twenty seconds left in today's show. Thank you so much for everyone tuning in. You can catch us on Saturdays at ten am and Sundays at eight am. So for the callers listeners, again,
thank you. I hope everyone has a great rest of your weekend. You're listening to Let's Talk Money here on a ten one oh three one WGY.
We'll see you next weekend.