Mullooly Asset Management

Have you ever felt overwhelmed by the world of investments, specifically annuities? You're about to witness a clear, concise breakdown of the complex web of annuities and gain an understanding that could be transformative for your financial future. This episode is packed with insights into the four primary types of annuities - immediate, deferred, fixed deferred, and variable deferred, carefully exploring their role as alternatives to mutual funds, stocks, and bonds. We delve into the significance of proper communication in the annuity industry, and we'll investigate the implications of deferring earnings in a deferred annuity and how it could potentially bite back when withdrawn. You can't afford to miss this episode, especially when we embark on the crucial aspect of investing - understanding the pros and cons. Drawing from my 16 years of experience as a broker, I recount tales of investors who've faced unpleasant surprises due to a lack of knowledge about their investments - things like surrender charges, limited investment options, and large tax bills. We're here to equip you with the information you need to make the best decisions for your financial future. We also scrutinize the 60-40 portfolios and the 4% rule, in the light of a recent industry article that seems to challenge these traditional investment strategies. Whether you're a seasoned investor or a novice, this episode promises a wealth of knowledge. Grab a pen and paper, you'll want to take notes.

The first thing that's often declared when a merger occurs is "Nothing will change!" In our experience, nearly everything will (eventually) change! Ever wonder how big mergers in the financial world can affect you? Buckle up, because we're about to explore the recent TD Ameritrade and Charles Schwab merger, and how it impacts compliance and custody. We shed light on the transition process, the correspondence Schwab sent to its clients, and the enhanced experience the new platform promises to deliver. Plus, we're not just stopping at Schwab; we also introduce you to other giants of the investment advisor space like Fidelity, Pershing, Bank of New York Mellon, and LPL Financial. The introduction of "I-Rebal" trading capabilities is set to streamline operations, but what does that mean for you? This isn't just about mergers, we're also going to take you behind the scenes of how we select a custodian for our clients. We'll unpack our rigorous due diligence process, where factors like reputation, financial strength, service quality, and the range of investment products are assessed. Furthermore, we'll give you an insight into our transparent compensation structure, where our only form of payment comes from client fees. Not a penny more. So, join us as we decode the impact of the TD Ameritrade and Charles Schwab merger on compliance and custody, while offering a glimpse into our world of investment custodians. Trust us, you don't want to miss this!

How safe are your communications in the financial services industry? Hold your breath as we take you through the labyrinth of communication within financial firms, spotlighting the indispensable need for documenting and archiving every single exchange. We don't stop there, we delve into the significance of disclaimers and disclosures, and discuss how the digital revolution has amplified the need for an easily searchable electronic trail and stringent compliance teams. Get ready to be intrigued as we unravel the astounding rise in SEC (Securities and Exchange Commission) fines for slip-ups in messaging practices. We dissect real-life cases of financial firms that suffered penalties for non-compliance, and we shed light on how aged regulations have been contemporized to mirror today's industry landscape. We wrap up the episode with an insightful discourse on how the SEC ensures adherence to standards and the various penalties it imposes for improper messaging practices. Whether you're a novice or a seasoned pro in the financial services industry, this episode serves up a wealth of knowledge on compliance and safe communication practices.

Strap in for a riveting tale of resilience and triumph as my son, Casey, defies the odds. Not only has Casey been battling leukemia with an unshakeable fortitude, but he's also been laser-focused on his studies to become a Certified Financial Planner (CFP). The cherry on top? His leukemia is now undetectable, and we couldn't be happier to share this wonderful news. But our conversation doesn't stop there. We also navigate through the labyrinth that is the CFP exam, dissecting the relevance of its six key areas. We shine a spotlight on the practical application of tax planning and underscore why working with a CFP is beneficial. In the second half of our conversation, we unpack the essence of trust in the advisor-client relationship. Why should you trust a CFP? How does that certification build credibility? As we delve into these questions, we emphasize that out of approximately 1 million people in the industry, only 91,000 hold the coveted CFP designation in the US. Tom and Casey share insights into why this certification is a beacon of trust for clients and how it forms the bedrock for a plan that clients can stick to. So come, join us as we traverse this journey of victory, education, and trust.

Ever felt your heart flutter at the mere mention of market volatility? We're here to change that! We'll debunk the common myths surrounding volatility, and reveal why it isn't the beast it's often made out to be. We will take you on a thrilling ride through the peaks and valleys of the stock market, centering on the often misunderstood VIX index. We'll show you how it's not just a "fear gauge" but a weather vane signaling when the storm might be about to pass. Switching lanes, we'll explore the varying return rates of cash, bonds, and stocks, demonstrating why a long-range perspective is vital when playing the investment game. We'll spotlight the Fed's endeavor to whittle inflation down to 2%, and the potential hiccups that might come along. More importantly, we'll emphasize why patience is key in the market, and how it can turn into your greatest asset. Whether you're an investment veteran or a rookie, this episode promises a wealth of insights to shape your investment strategy. So, strap in, and let's take this ride together!

Ever wondered how the intricate world of financial planning truly operates? Tom shares some insight into this world, as a financial planner who's been in the trenches for four decades. In this episode, we journey through my 40-year career in financial planning. From my beginnings as a young college graduate (age 20!) through my start with EF Hutton, where I gained in-depth knowledge in investments, taxes, insurance, pensions, and more. The art of financial planning is delicate and often misunderstood. That's why Tom sheds light on the importance of tailoring a financial plan to each client's specific needs instead of opting for a one-size-fits-all approach. Tom shares why your financial plan can become fragile -- as we move further into the future. And how making projections beyond three to seven years can be counterproductive. Tom reveals how keeping expenses low and remaining focused on the big picture can yield more significant financial success. Along the way, Tom also recommends a captivating podcast, The Founders, which provides fascinating insights into the lives of business owners and entrepreneurs. Tom also shares a personal story about a Navy buddy, demonstrating the impact of disciplined saving and making small deposits over time. Tom discusses the importance of staying invested in the stock market, despite its volatile nature. And how this has paid off - for so many - over the past 40 years. An advisor's role in helping clients avoid major mistakes and stay focused on their financial goals is also emphasized. This episode is packed with financial wisdom derived from decades in the industry. We hope it can help you on your financial journey.

When most folks think of "consumer discretionary" companies, the names they might think of are names you "could live without." And if we entered into an economic slowdown, you might "pass" on shopping with some of these companies. But when look under the hood, what the market considers to be consumer discretionary stocks might surprise you! As we begin the podcast episode, we start with a question. Could 6-7% mortgage rates become the new normal? And what kind of impact could higher mortgage costs have on how consumers choose to spend their money, and the impact on consumer discretionary areas of the economy. Join Tim and Tom as we explore this intriguing possibility in our discussion on the current state of mortgage rates, based on an insightful article by Bill McBride. We examine how Bill has become the yardstick for what's going on in the real estate industry and how his headlines have evolved over the years. Additionally, we compare the current situation to what happened in 1994 and the idea that history often rhymes, sharing our thoughts on the potential for refinancing mortgages in the future and how it depends on the economy. In the second half of our episode, we dive into the world of stock forecasting and market sectors, taking a close look at consumer discretionary stocks and how they are affected by changes in mortgage rates. Using examples of consumer discretionary companies like Tiffany's and American Express, we discuss how people might make cutbacks in their spending if their mortgage payments increased. We also explore the top 10 positions in the Vanguard, iShares, and SPDR Consumer Discretionary ETFs, to help you better understand what Mr. Market considers discretionary. Don't miss this informative and engaging episode!

Late Boomers (1956-1964) appear to be the LEAST prepared for retirement. Why is that? In podcast episode #445, Tim and Tom break down SOME of the reasons why late boomers might be poorly-prepared for retirement, compared to other generations. The guys however (first) discuss down-and-sideways markets, like we have seen over the past eighteen months (January 2022-May 2023). They reference an article written by (friend of the podcast) Nick Maggiulli of Ritholtz Wealth and go on to discuss why sideways markets are often great opportunities, in disguise. Tim and Tom move onto an article found in Markewtwatch discussing why "Late Boomers" may be ill-prepared for retirement. Not mentioned in the episode is how this generation is facing two explosions: the exponentially rising costs of caring for their parents and the ever-escalating cost of college for their own children. Correction: Tom also mentioned the tax act in 1986 as "TEFRA" when it was the Tax Reform Act (TRA). Time Stamps: 01:08 - What happened over the past 18 months 02:00 - Down, then sideways markets = bullish? 04:15 - Digestion periods 05:30 - "Your patience will be rewarded" 08:25 - Do you "change the channel?" 11:05 - "Late Boomers" 14:07 - Defined benefit plans vs. defined contribution plans 15:15 - First generation with a 401k through their entire working career 17:00 - "Retirement" often comes before "I'll get to save for retirement someday" 18:45 - Tax Reform Act (TRA) of 1986 (note: NOT TEFRA!) 21:40 - One impact of the "great" recession

Financial Planning Software Tools Used by Our Advisors What are the financial planning tools used by the advisors at Mullooly Asset Management? As we discuss in episode #444 of the podcast, there are several widely-used financial planning software tools used by the largest firms in the industry. So you may be surprised - we swipe a little from ALL of them! Over time, we have found that there is no one perfect software tool. So we have constructed our own, and kept it flexible. This way, we can tweak it as needed, to customize a solution for your situation. We have also learned that relying heavily on one software almost keeps us married to their modeling. And when their models change - your plan can break! Or things simply will not work. We would prefer not to be beholden to one (or even two) hard-wired financial planning software tools. Listen in for 28 minutes about the financial planning tools used by us! Time Stamps for "Financial Planning Tools Used by Our Advisors" 1:10 - Wide proliferation / wide adoption of similar financial planning software tools 2:55 - Gauging compounded inflation rates 4:29 - A relevant question from the CFP exam! 7:12 - Pro's / Con's of wide adoption of financial planning software tools 12:11 - How we treat projections, and "plan" (the noun) vs "planning" (the verb) 14:45 - Recent financial planning software developments, and some industry backlash 16:50 - Planning software can often be internally hard-wired & more "one size fits all" 17:45 - Sometimes advisors need to "trick the software" to get the desired options. 20:30 - How "data accuracy" is crucial to developing plans 23:29 - Gaining "awareness" through the plan process, better planning for "the gaps"

Focus on these 10 things you can control about Investing In this podcast (episode #443), Tim and Tom run through an excellent list compiled by a fellow planner, Max Pashman, CFP® which separates things you can't control versus ten things you can control. It's one thing to think you have all the answers when it comes to financial planning and investing. It can be very frustrating at times - it seems like nothing seems in your power to control with investing. And, are you happy - and at peace with how you go about investing? Where is your focus? Even WE get hung up from time to time stressing over topics clearly out of our control. And we're in the business! It is not worth your time or worry to focus on things you have absolutely no way of changing! We field LOTS of calls from folks who get hung up worrying about topics like the debt ceiling, tax law changes, which political party is in control, how to stop rising prices. These things are out of our hands. Let's focus our energy on things we can control. Again, many thanks to our friend Max Pashman, CFP of Los Angeles, CA for the great inspiration. You can follow Max on Twitter: https://twitter.com/maxpashman Timestamps for "Focus on 10 Things Can Control" Episode #443 1:18 - Rates of return 3:53 - Tax Laws 6:00 - Interest rates 9:49 - Asset Risk 12:28 - Emergencies 13:39 - College Prices 17:27 - Social Security 20:39 - Inflation 23:59 - Death Thanks for listening to this episode! You can catch all of the Mullooly Asset podcast episodes here.

"My Home Was The Best Investment I Ever Made" Episode 442 of the Mullooly Asset podcast starts with: We've lost count of the times we have heard "my home was the best investment I ever made." But is it really? It might be because your home may be the ONLY investment you have held for thirty years. When you go through the math, as Tim and Tom do in episode 342, you learn that people often overlook the cost of affording the home (mortgage costs - especially compound interest!), property taxes, the maintenance, any improvements. You get the idea. And while you cannot "sleep in your S&P 500 index fund," you also have very little in terms of additional costs in investments like exchange-traded funds once the initial investment is made. In episode 442, Tom and Tim also talk about the projected 2024 increase in the cost-of-living adjustment for social security recipients. Here's a hint: it's *projected* to be way less than 2023!

We cover 13 Questions about Social Security And we have learned you may not know the answers! On a survey shared with 55 to 65 year old folks, 69% of respondents either failed the test - or barely passed! Since Social Security often becomes a sizable chunk of income in retirement, it's somewhat astonishing that folks in this age group - approaching retirement -- are not up-to-speed on these 13 questions about social security. Get with your financial planner if you struggled with these topics or questions! Listen in for 25 minutes of putting your questions about social security to bed! Time Stamps for "13 Questions About Social Security" 5:37 - Question 1 - taking social security early 6:45 - Question 2 - are my benefits reduced if I continue working? 9:16 - Question 3 - what about my spouse? 11:45 - Question 4 - same-sex marriage benefits? 12:15 - Question 5 - spousal death benefits? 13:38 - Question 6 - my specific social security account? 14:45 - Question 7 - what if I have young children? 15:58 - Question 8- what if I am divorced? 16:48 - Question 9 - Reduce social security by 20%? 19:06 - Question 10 - full retirement age is? 19:37 - Question 11 - what if I delay past age 70? 20:22 - Question 12 - taxes on Social Security? 22:16 - Question 13 - Citizenship and social security? Links for "13 Questions About Social Security" https://www.cnbc.com/2023/05/02/69percent-of-people-either-failed-or-barely-passed-this-social-security-quiz.html

You Are The Economy 71% of the US Economy is you – the consumer. Did you know that? And the US consumer has provided a backbone to this economy stronger than anyone has ever predicted. We sure DO know how to spend money! Never forget, you ARE the economy! In Episode #440 of the Mullooly […]

Is a 60 40 portfolio still good? This question has been coming up frequently. All throughout 2022, people were told by the financial media that the old 60/40 approach to investing was dead. Is it dead – or did it simply have a a bad year? After all, this is historically how many large pension […]

Must-knows About Retirement Spending Here’s something different – what are the must-knows about retirement spending? Spending? Don’t we mean saving? While our industry in general spends an enormous amount of time preaching about saving for retirement, little ink gets spilled discussing the must-knows of retirement spending. Why is that? Part of the answer stems […]

Where Are You Going On A Trip This Year? When we are mentally pulling together a budget in our heads, it is easy to add up mortgage, insurance, groceries, gas money, etc. But when you are trying to gauge your cash flow, do you think about where you are going on a trip this year? […]

Trying to make sense from markets, and the news, will make you crazy. In Podcast Episode 436, “Stop Making Sense of Markets,” Casey and Tom refer to the old stock market adage, “buy the rumor, sell the news;” and what to do when the news doesn’t add up to what the market is doing. We […]

FDIC Coverage Limits are a significant part of the discussion Casey & Tom have in Episode 435 of the Podcast. We also discuss what happens if you have more than $250,000 in the bank? While the wreckage from the collapse of Silicon Valley Bank is still being parsed out, more questions are beginning to bubble […]

What are the "worst" investments during periods of inflation? There has been a rush to create many inflation-related products on Wall Street.

Spending money in retirement is OK, you have our permission! We see folks we know deciding to retire every week here at Mullooly Asset Management. Some folks have been great savers throughout their careers. Sometimes these very same people have problems “being okay” with spending money in retirement. Especially because they do not see a […]