Mullooly Asset Management

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. 

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