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Kathy Healy
Hi, I’m Kathy Healy with Healy Wealth Management. We’re about halfway through the year, and at this point, we’re fielding plenty of smart questions from our clients. And while we normally rely on thoughtful analysis, strategic planning, and decades of experience, today we decided to consult an old school advisor. Since the 1950s, generation after generation of children have turned to one object to provide answers to the more burning, yes/no questions of life.
The magic eight ball. Let’s see how its wisdom holds up. Magic eight ball. Are you ready? Eight ball says “Yes. Definitely.” Magic eight ball. Is the stock market going to keep climbing this year? Eight ball says, “Reply hazy. Try again.” Our take is that the economic data has remained surprisingly resilient and markets have responded positively. But as always, we stay away from predicting the future.
That’s why we focus on quality, diversification and staying invested no matter the headlines. Okay, magic eight ball. Is it too late to invest in AI related opportunities? Eight ball says, “Ask again later.” Our take is that while valuations in some areas are stretched, secular trends and AI are real. For investing, we look for quality businesses with durable competitive advantages, some of which may quietly benefit from AI without all the hype.
As fun as it is, your financial future deserves more than guesswork. The 20 possible magic eight ball answers were designed by Doctor Lucien Cohen, a psychology professor at the University of Cincinnati in the 1940s. The possible answers consist of ten yeses, five neutrals and five negatives. For more than a yes or no, or maybe, you might want to check with ChatGPT or other AI.
Let’s see how they stack up. What if this is your question? Should I convert my IRA to a Roth? Let’s see what eight ball says. “Cannot predict now.” ChatGPT can give you a general answer about tax brackets and time horizon, but you’re still left to wonder. But if you ask us, we’ll consider your own personal situation and relevant facts specifically relating to you.
What’s your future income? How close are you to taking your RMDs? What’s your current tax bracket and your future expected tax bracket? Do you have money set aside to pay the taxes generated by the conversion? We would be able to give you a thorough analysis and recommendation unique to you. Here’s another good question. How should I invest after selling my business?
Eight ball says, “Ask again later.” ChatGPT says diversify based on risk tolerance. But if you ask us, we would respond by asking you questions and we would discuss what your life would look like after your liquidity event, what your cash flow needs are to support your lifestyle, do you want to include charitable giving as part of your plan? And based on your specifics, we would make a recommendation suited for you, including strategies for reducing and deferring taxes. A final question for magic eight ball. Will we be okay?
Eight ball says, “Without a doubt.” Our take, when you have a long term plan, a disciplined strategy and the right partner walking alongside you, that answer sounds just about right. But if you’re feeling uncertain or just curious, reach out. We’d love to have a conversation grounded in real strategy, not swirling blue dye. Thanks for watching this video, and don’t forget to hit the like button and subscribe to our channel.