Fed Chair Powell Testifies on Capitol Hill. Will Rates Go Higher?

1 00:00:04,759 --> 00:00:07,839 Good morning. It's that time again. It's the Money Matters Show. It's 2 00:00:07,879 --> 00:00:12,039 Sunday morning, June twenty fifth, six months now Christmas time. That's it, 3 00:00:13,400 --> 00:00:16,039 June twenty This is what everyone wants to hear, right six months el 4 00:00:16,160 --> 00:00:20,480 Christmas, although it would be nice to have a little Christmas weather right now. 5 00:00:20,920 --> 00:00:25,679 Yeah, the hot days have finally come, for sure. We kind 6 00:00:25,679 --> 00:00:29,039 of we kind of skated through. I mean, last weekend we'd only had 7 00:00:29,039 --> 00:00:35,079 a seven one hundred degree days. Last year at that period we'd had twenty 8 00:00:35,079 --> 00:00:39,560 two, so we were way behind schedule. But that's changing fast. We're 9 00:00:39,600 --> 00:00:42,759 making up for It looks like it looks like the June that we've all come 10 00:00:42,799 --> 00:00:45,920 to know is here. Yeah. I've had to start waking up real early 11 00:00:45,960 --> 00:00:48,320 to get the workouts in the morning. It's just so hot in the after 12 00:00:48,359 --> 00:00:51,240 it is, and I'm having to go to the gym instead of the river 13 00:00:51,320 --> 00:00:54,799 path because it's just you know, four one, five, one oh eight. 14 00:00:54,960 --> 00:00:57,799 Yeah, it's just a it's just a little too much. Good news 15 00:00:57,840 --> 00:01:00,439 is traffic is lighter. Anyone that can't afford to get out of here is 16 00:01:00,479 --> 00:01:06,159 gone, including Dean. Maybe Tucson can actually find a way to not have 17 00:01:06,280 --> 00:01:08,719 pot holes on a freeway. I would love I would love to see that 18 00:01:08,760 --> 00:01:12,680 happen. The best freeway system in the world is in Los Angeles. How's 19 00:01:12,680 --> 00:01:15,879 that working out? That's that's what they consider the best. Oh yeah, 20 00:01:15,959 --> 00:01:19,400 well it's the most extensive, certainly. Oh yeah, yeah, And how's 21 00:01:19,400 --> 00:01:22,959 that working out? Very well? Yeah, dude? What happens with with 22 00:01:23,040 --> 00:01:26,359 freeways of courses? You funnel everybody onto one road. That's the problem. 23 00:01:26,359 --> 00:01:30,079 Whether you know the nice thing about Tusigon, you think that boy be nice 24 00:01:30,079 --> 00:01:33,120 to have a freeway from the but you know, we've got a little bit 25 00:01:33,159 --> 00:01:34,840 of a mini freeway and that's River Road. And you and I both know 26 00:01:36,200 --> 00:01:40,120 with the office on River Road in the afternoon, it gets to be stopped 27 00:01:40,120 --> 00:01:42,079 and stopping and go. It's I mean, it's it's pretty bad. I 28 00:01:42,079 --> 00:01:47,159 just don't understand Paul. Holes on a freeway. Fix them. Dean is 29 00:01:47,200 --> 00:01:53,200 still on his European adventure, hoppling along on his crutches after his uh we 30 00:01:53,359 --> 00:01:57,799 think acl tear that won't be dealt with until he gets back good. Just 31 00:01:57,799 --> 00:02:00,640 so everyone, I've had a lot of questions about this. Yeah, it's 32 00:02:00,640 --> 00:02:02,480 been a big buzz topic. He is doing all right, all, he's 33 00:02:02,519 --> 00:02:07,680 doing fine. And I'm actually his Medicare agent. Did you know that? 34 00:02:07,760 --> 00:02:09,960 I know. Yeah, he's my only client, probably will only ever be 35 00:02:10,080 --> 00:02:14,800 my only client. I had to do all that stuff just so. But 36 00:02:14,919 --> 00:02:19,280 he has perfect medical insurance for this exact situation. Don't have to worry. 37 00:02:19,560 --> 00:02:22,680 He's taken care of. He did. He did the smart thing. Yeah, 38 00:02:22,719 --> 00:02:25,240 there's a little bit more cautily Medicare plan, which is, uh, 39 00:02:25,800 --> 00:02:31,000 most of us do the Medicare advantage, which is really their cheap, wonderful 40 00:02:31,080 --> 00:02:37,879 coverage, great plan unless you're un international. Yeah, and so, being 41 00:02:37,960 --> 00:02:42,039 knowing that he liked to travel internationally, went with a more expensive plan, 42 00:02:42,080 --> 00:02:45,879 and thankfully he did because great foreshadowing. Yeah, he would be out of 43 00:02:46,240 --> 00:02:47,560 out of pocket. Let me let me read the most exciting part of the 44 00:02:47,599 --> 00:02:52,639 show real quick. There's our disclaimer the show. Well you know, okaye, 45 00:02:53,400 --> 00:02:55,000 The show is sponsored by Greenberg Financial Group. You can listen on seven 46 00:02:55,039 --> 00:03:00,159 ninety k ST or iHeart Radio. The show discusses different investment products and strategies. 47 00:03:00,319 --> 00:03:04,439 Every product in strategy has some type of inherent risk, and we strongly 48 00:03:04,520 --> 00:03:07,879 encourage our listeners to probably understand these risks, risks to determine whether to buy, 49 00:03:07,919 --> 00:03:10,400 sell or hold. The show has been on the air for over thirty 50 00:03:10,479 --> 00:03:15,000 years. Greenberg Finance Groups registered with the SEC and as a member of FINRA 51 00:03:15,199 --> 00:03:19,280 in the SIPC. You can visit our website at Greenberg Financial dot com for 52 00:03:19,479 --> 00:03:23,520 more information. Well done. So we came off a three day weekend last 53 00:03:23,599 --> 00:03:27,719 weekend. Uh not this weekend, just two days, but three days last 54 00:03:27,719 --> 00:03:30,240 weekend, and you went to Mexico with a group of seven other people, 55 00:03:30,240 --> 00:03:34,000 eight of your total. Yeah, there was a lot. You did survive. 56 00:03:34,319 --> 00:03:36,560 We did survive. We have any eight time? Do you have any 57 00:03:36,560 --> 00:03:38,680 stories from Mexico? Do you can tell? Yeah? Yeah, I mean 58 00:03:38,840 --> 00:03:42,919 one broken nose, not me. You actually got a broken nose in your 59 00:03:42,919 --> 00:03:45,560 group. We did to give a broken nose. Banana boats are crazy, 60 00:03:45,759 --> 00:03:50,560 right, Dave? I mean those banana boats. I'm not sure. Okay, 61 00:03:50,599 --> 00:03:53,039 So I don't drink. So is that a drink? No, it's 62 00:03:53,240 --> 00:03:57,240 it's it's okay. So a boat pulls a raft and it looks like a 63 00:03:57,240 --> 00:04:00,280 banana it's and so you you you kind of um straddle it like it's a 64 00:04:00,400 --> 00:04:02,680 like a horse, okay, and on both sides, and it looks like 65 00:04:02,680 --> 00:04:06,120 a banana Okay. So the boat pulls it really fast and you get whipped 66 00:04:06,159 --> 00:04:09,080 around, you fall in the water. It's a great time, right, 67 00:04:09,960 --> 00:04:15,879 But when you row boat, the boat is pulling a raft. The power 68 00:04:15,959 --> 00:04:20,600 boat, yes, the motoring it, that's the one that's pulling. Yeah, 69 00:04:20,639 --> 00:04:26,519 he's not a guy with oars. Okay, raft key with me. 70 00:04:26,920 --> 00:04:30,800 So the banana boat. After when you fall off, everyone hits each other, 71 00:04:30,959 --> 00:04:34,360 right, because they're so compact with another raft. Yeah, there's eight 72 00:04:34,399 --> 00:04:38,120 of us on this raft. Cool. So if we all fall off at 73 00:04:38,120 --> 00:04:40,759 one time, a lot of bodies are going to hit all other bodies, 74 00:04:40,879 --> 00:04:44,680 right, and no one has control over that, and someone gotta you know, 75 00:04:44,959 --> 00:04:48,399 A heel to the nose and a Rocky Point was fun and you got 76 00:04:48,399 --> 00:04:51,120 in the water and the water was comfortable and it wasn't Oh it was so 77 00:04:51,160 --> 00:04:55,839 hot that the water was probably hot. And Rocky Point yeah, the sand 78 00:04:55,879 --> 00:04:59,480 is unbearable. Yeah, the sands rocky. I don't go there for the 79 00:04:59,480 --> 00:05:00,720 beach day, you know. I go there for the fun. It's a 80 00:05:00,720 --> 00:05:05,720 great time. I loved it. Anyway, my weekend was far less fun 81 00:05:05,759 --> 00:05:09,480 than yours. I heard you went through it. I went through it on 82 00:05:09,480 --> 00:05:13,600 on Saturday morning. To start off Saturday morning, I went to Fries and 83 00:05:13,879 --> 00:05:17,000 there was an elderly gal there and there were only two shopping carts available, 84 00:05:17,000 --> 00:05:20,639 and she was trying to get them unstuck, which we've all done. We've 85 00:05:20,639 --> 00:05:25,439 all done that in our life. And there's a real simple solution to unsticking 86 00:05:25,480 --> 00:05:28,560 shopping carts. You just grab one and just give it a good shake and 87 00:05:28,600 --> 00:05:30,439 a rattle and they come apart, right, it's done. In this particular 88 00:05:30,439 --> 00:05:33,839 case, my shoulder came apart and stiff. So that's how that's how I 89 00:05:33,920 --> 00:05:40,120 started off my three day weekend. And so I hobbled home and decided to 90 00:05:40,160 --> 00:05:45,120 do a little trimming in the backyard and ended up falling down and smashing into 91 00:05:45,160 --> 00:05:48,959 a mosquite tree and ripping up my left arm and badly bruising my tailbone. 92 00:05:49,000 --> 00:05:53,879 And there you go. How was your father's day? Not so good? 93 00:05:54,160 --> 00:05:58,079 Not very good. Yeah, don't ask me about my weekend. Yeah. 94 00:05:58,120 --> 00:06:00,920 You know, if you if you've have not listened to the show before, 95 00:06:01,360 --> 00:06:04,399 or if you've listened to the show, or if you just missed Dean's voice, 96 00:06:04,759 --> 00:06:09,040 Yeah, you can go to the iHeart app, the iHeart website, 97 00:06:09,079 --> 00:06:13,199 or just go to our Greenberg Financial dot com and click on the microphone in 98 00:06:13,279 --> 00:06:16,920 the upper left left hand. Corn, I can never remember I've actually looked 99 00:06:16,920 --> 00:06:21,160 at it and all the past shows are there. Yeah, so's it's quite 100 00:06:21,160 --> 00:06:26,279 amazing. And you know, obviously we also have our Saturday radio shows which 101 00:06:26,319 --> 00:06:30,040 is six thirty am, twelve pm and twelve thirty pm on this station seven 102 00:06:30,160 --> 00:06:32,959 nineties as well. Those ones we don't put on the podcast, but if 103 00:06:32,959 --> 00:06:36,240 you wanted to listen more. Dean and Dylan do those TV shows. We 104 00:06:36,279 --> 00:06:42,000 take the audio recordings from the TV shows, so they're not as updated as 105 00:06:42,040 --> 00:06:45,519 these shows are, but they have a lot of good information around financial planning, 106 00:06:45,600 --> 00:06:48,279 mitigating risk, things like that, just good general financial information. And 107 00:06:48,360 --> 00:06:51,519 I think Dean and Dylan have done twelve of them or something like that, 108 00:06:51,879 --> 00:06:56,160 right, and so if you've heard all twelve of them, and yes they 109 00:06:56,199 --> 00:06:59,920 do repeat. Yes, So if you've heard all twelve in one, come 110 00:07:00,120 --> 00:07:04,000 on Twitsch channels, because that's all there are. Big headline this week, 111 00:07:04,079 --> 00:07:09,360 it seemed to dominate the news all week. Was not not financial all but 112 00:07:09,399 --> 00:07:14,399 it was that submersible that that got lost on this way, that the Titanic, 113 00:07:14,399 --> 00:07:16,439 I mean, that was that was the main news story all week, 114 00:07:16,600 --> 00:07:21,560 and sadly, um it didn't work out. But I couldn't turn on any 115 00:07:21,600 --> 00:07:25,759 news channel without that being the lead story. You know, I think that's 116 00:07:25,800 --> 00:07:29,319 gonna be a great movie one day because he could you imagine being in that 117 00:07:29,360 --> 00:07:33,040 boat, no, and like knowing the oxygen's running out? Right? Well, 118 00:07:33,079 --> 00:07:35,560 but I want I don't know that they got to that point. I'm 119 00:07:35,600 --> 00:07:39,240 not gonna beat this to death because y'all have been listening to this all week. 120 00:07:39,480 --> 00:07:44,759 Hopefully it imploded very quick right on the day one, the first hour, 121 00:07:45,240 --> 00:07:47,399 no pain, because I think all of us can imagine being in that 122 00:07:47,519 --> 00:07:53,600 boat, down underwater, running out of oxygen, looking at each other. 123 00:07:53,920 --> 00:07:57,040 I mean, that's just I think that's why it was such a big headline, 124 00:07:57,040 --> 00:08:01,600 because it's so terrifying. Yeah, to think about that market. You 125 00:08:01,600 --> 00:08:05,160 know, we said last week that we thought the holiday shortened week might be 126 00:08:05,199 --> 00:08:11,040 a little difficult to market. Had gone up SMP up six weeks in a 127 00:08:11,120 --> 00:08:16,519 row, NASDAC up eight weeks in a row. Every valuation measured that we 128 00:08:16,600 --> 00:08:20,879 look at was screaming Sala sal sal, And I don't mean, boy, 129 00:08:22,000 --> 00:08:24,879 we're going down. This is it, man. But we had just gotten 130 00:08:24,920 --> 00:08:28,360 too far, too fast. It had been a Goldilock scenario where the Fed's 131 00:08:28,399 --> 00:08:35,519 gonna sto operation interest rates and AI is going to boost corporate profits and we've 132 00:08:35,559 --> 00:08:39,240 avoided the recession and all things are good, right. But the one thing 133 00:08:39,360 --> 00:08:43,279 that kind of put a wrench in that plan was Wednesday and Thursday, Drome 134 00:08:43,320 --> 00:08:46,720 Powell came back online and testified in front of Congress, as he does twice 135 00:08:46,720 --> 00:08:50,759 a year. He has two meetings with Congress where they grill him on his 136 00:08:50,840 --> 00:08:56,480 monetary policy. Why are they doing what they're doing right? And largely he 137 00:08:56,519 --> 00:09:00,240 says, again, most members of the Fed believe there's still possibly two more 138 00:09:00,279 --> 00:09:03,200 rate hikes before the end of the year. When I said last week that 139 00:09:03,519 --> 00:09:07,279 in an environment where all news is good news, that had you had and 140 00:09:07,320 --> 00:09:11,840 he did say exactly that last week, the week before last, that the 141 00:09:13,960 --> 00:09:16,960 market would anticipating that he would come out leave interest rates unchanged, which he 142 00:09:18,039 --> 00:09:22,879 did, and that he would say that they're done because the market actually was 143 00:09:22,919 --> 00:09:26,440 looking for at least two interest rate cuts before the end of the year. 144 00:09:28,039 --> 00:09:31,559 He came out and stopped raising rates and said there's going to be two more 145 00:09:31,600 --> 00:09:35,840 interest rate increases before the end of the year. Now in an environment where 146 00:09:35,039 --> 00:09:39,759 a neutral environment, or where all news is bad news, markets down five, 147 00:09:39,840 --> 00:09:43,440 six, seven hundred points on that. Yeah, this market where all 148 00:09:43,559 --> 00:09:46,799 news is good news. They said, well, they're almost done. Yeah, 149 00:09:46,840 --> 00:09:48,840 you know that's how they that's how they framed it. No, it's 150 00:09:48,840 --> 00:09:50,960 a great way to put it. They almost didn't want to hear it, 151 00:09:50,240 --> 00:09:52,000 right, They're like, oh, but yeah, but he didn't he stopped 152 00:09:52,000 --> 00:09:54,960 breaking rights. So we're just focus on that point. I didn't read it 153 00:09:54,080 --> 00:09:56,279 this time, and you know, Okay, he's gonna raise it two more 154 00:09:56,279 --> 00:10:00,720 time. But they're almost done. Yeah. So that's that's the environment in 155 00:10:00,759 --> 00:10:03,200 which is wonderful. I mean that means the market goes higher. Is there 156 00:10:03,240 --> 00:10:07,919 a pullback from time to time? Yeah? We gave back what ten percent 157 00:10:07,080 --> 00:10:11,440 this past week. We gave back ten percent of what we've gained in the 158 00:10:11,440 --> 00:10:15,120 previous two weeks. Yeah, they deal. I mean the real problem with 159 00:10:15,159 --> 00:10:22,440 all of this is the overwhelmingly bullishness with the VIX. The volatility index at 160 00:10:22,480 --> 00:10:26,360 almost thirteen now, yeah, I mean everyone is too confident. That's really 161 00:10:26,360 --> 00:10:33,240 the problem. And the volatility index is the more the higher that gets, 162 00:10:33,440 --> 00:10:37,639 the better opportunity you have to buy the market because that means everybody is really 163 00:10:37,200 --> 00:10:43,440 overly concerned. Right now, nobody is concerned about anything. The vix is 164 00:10:43,639 --> 00:10:48,240 maybe even at an all time low. I know it's close to it an 165 00:10:48,279 --> 00:10:52,120 all time the fear is at a near an all time low. That's generally 166 00:10:52,159 --> 00:10:56,120 not a good environment because that's an environment where the market is vulnerable to any 167 00:10:56,240 --> 00:11:01,159 kind of odd ball news that comes out. Yeah, anything unexpected can can 168 00:11:01,279 --> 00:11:05,960 create problems for that. And I think you just got to continue listening to 169 00:11:05,960 --> 00:11:11,720 the FED because it doesn't seem like there are any catalysts that are coming up 170 00:11:11,879 --> 00:11:15,759 other than the upcoming earning season, which probably is just going to echo what 171 00:11:15,759 --> 00:11:18,960 we already saw in quarter two. I'm having a hard time thinking of anything 172 00:11:20,000 --> 00:11:24,279 that really spooks the markets other than just drawn pause saying something right. I 173 00:11:24,320 --> 00:11:26,679 mean, unless you have some type of black Swan event or something. Well, 174 00:11:26,720 --> 00:11:30,240 I can say in the forty years have done this. Uh, you 175 00:11:30,279 --> 00:11:33,480 won't see coming what spooks the market. You won't see it countwent happens. 176 00:11:35,159 --> 00:11:37,799 So I don't know what it's going to be. It'll be something, um, 177 00:11:37,120 --> 00:11:41,720 but we have a still market was down this week. The doll was 178 00:11:41,759 --> 00:11:46,919 down five hundred and seventy two points. SMP five hundred was down one hundred 179 00:11:46,919 --> 00:11:50,279 and ninety seven. Assume a down sixty one, NASA down one ninety seven 180 00:11:52,120 --> 00:11:54,360 be awful too. For the week, the doll was down one point seven 181 00:11:54,399 --> 00:11:58,399 for SEN, SMP down one point four, and NASTAC down one point four. 182 00:11:58,799 --> 00:12:01,120 The Russell, which is the or volatile, down three percent. And 183 00:12:01,200 --> 00:12:05,200 here's the key. The equal weighted SMP fi founded down two point eight percent. 184 00:12:05,639 --> 00:12:09,279 So the equal weighted SMP five founded, which has all five hundred stocks 185 00:12:09,320 --> 00:12:13,440 get the same weighting when you're looking at that, is up two percent for 186 00:12:13,480 --> 00:12:18,960 the year. Now, interest rates are flat on the year. So if 187 00:12:18,000 --> 00:12:22,080 you have with all of this giddiness going on, and then the NASDAC up 188 00:12:22,120 --> 00:12:26,840 thirty percent, the SMP five hundred up thirteen percent. Realistically, if you 189 00:12:26,960 --> 00:12:33,679 have a professionally managed account, that is a sixty forty sixty percent in stock, 190 00:12:33,720 --> 00:12:37,600 forty percent in bonds Europe, maybe a couple of percent for the year, 191 00:12:37,279 --> 00:12:43,919 which would be real, which would be reasonable if the stocks that people 192 00:12:43,039 --> 00:12:50,080 want to own in conservative accounts, the Merks, the Johnson and Johnson's, 193 00:12:50,399 --> 00:12:56,399 the Procter and Gambles are not working they're just not working. I follow five 194 00:12:56,559 --> 00:13:03,000 different exchange traded funds that invest strictly and dividend related stocks, which are what 195 00:13:03,080 --> 00:13:07,559 we're most interested in, blue chip dividend payers, and I updated it before 196 00:13:07,600 --> 00:13:11,039 the show, and they're all down four or five percent for the year. 197 00:13:13,799 --> 00:13:16,600 So it isn't up, up and away. And boy, I'm looking at 198 00:13:16,600 --> 00:13:20,480 my portfolio and the SMPS up thirteen point three. I expect to be up 199 00:13:20,480 --> 00:13:22,840 at least ten. Yeah, you gotta be. You gotta feel sad for 200 00:13:24,320 --> 00:13:28,639 sorry for those value investors out there, right, because they'd got absolutely pummeled 201 00:13:28,679 --> 00:13:31,200 in twenty twenty with all the you could throw a dart at any stock it 202 00:13:31,279 --> 00:13:35,919 was going up and nothing was based on valuations. And then they had a 203 00:13:35,919 --> 00:13:39,159 better year last year. They did outperform a lot of the growth people because 204 00:13:39,200 --> 00:13:41,320 they did well. In fact, actually it's good I thank for bringing out 205 00:13:41,320 --> 00:13:46,840 the The SMP five hundred last year was down about twenty percent, primarily because 206 00:13:46,879 --> 00:13:50,480 the NASDAC was down thirty percent. But the dividend payers, the blue chip 207 00:13:50,799 --> 00:13:54,600 stocks were for the most part flat top a little bit exactly. Now we're 208 00:13:54,600 --> 00:14:00,799 seeing the opposite, right, they're underperforming again, and realistically in a smart 209 00:14:00,840 --> 00:14:05,600 market, like the value stocks should in the long run not outperformed, but 210 00:14:05,639 --> 00:14:11,679 they shouldn't be always out underperforming, especially in these type of environments. Yeah, 211 00:14:11,679 --> 00:14:15,519 because they last year, okay that Marco was down big last year, 212 00:14:15,759 --> 00:14:18,159 and the value stocks didn't didn't go down, right, and now they should 213 00:14:18,159 --> 00:14:22,279 They're down five So in two in a year and a half, they they 214 00:14:22,279 --> 00:14:24,320 haven't made any money at all, exactly nothing. And you kind of can 215 00:14:24,360 --> 00:14:28,639 see that with some of the biggest value investor we all know, Warren Buffett. 216 00:14:30,039 --> 00:14:33,559 Obviously his best portfolio, his best stock in his portfolio is what not 217 00:14:33,679 --> 00:14:35,759 a value stock and it's an app considerate but it's an Apple, it's a 218 00:14:35,759 --> 00:14:41,159 growth stock. It's not value but his oxy, right, which is that 219 00:14:39,840 --> 00:14:43,600 um that's done not well. And so there's a couple of those big value 220 00:14:43,639 --> 00:14:48,600 investors who are having struggle struggling in this environment here where it's only really seven 221 00:14:48,679 --> 00:14:52,080 or eight stocks leading the way, and it's really not based on a lot 222 00:14:52,120 --> 00:14:56,360 of fundamentals. It's that price, the magic ratio where what could be in 223 00:14:56,399 --> 00:14:58,639 the future. I like the price the matric. That's a that's a nice 224 00:14:58,759 --> 00:15:01,240 term like that. Yeah, I stole it from someone if you look at 225 00:15:01,240 --> 00:15:05,720 your portfolio and and you look at it and say, I'm disappointed in how 226 00:15:05,720 --> 00:15:11,960 it's performing. Before you complain about the manager, look at how you're allocated. 227 00:15:13,039 --> 00:15:16,519 Look at what you've chosen to be allocated. If you've chosen to be 228 00:15:16,120 --> 00:15:22,360 one hundred percent in bonds, you're maybe one percent for the year. The 229 00:15:22,559 --> 00:15:24,600 SMPS up thirteen, Well why am I not up thirteen? Well? Could 230 00:15:24,639 --> 00:15:28,919 you have nothing to do with the SMP. That's what you chose, and 231 00:15:28,919 --> 00:15:33,039 that's based on your risk tolerance, totally total. And we talk about this 232 00:15:33,159 --> 00:15:35,519 a lot on the show, that risk tolerance has changed based on environments. 233 00:15:35,919 --> 00:15:39,519 Right, your risk tolerance before twenty twenty, twenty twenty one, twenty twenty 234 00:15:39,519 --> 00:15:41,960 two, out twenty twenty three, they're all going to be different because all 235 00:15:43,039 --> 00:15:46,879 those environments were different, and so sometimes it didn't make sense to let's do 236 00:15:46,919 --> 00:15:50,200 another risk tolerance, right, And we can do that for free for you 237 00:15:50,279 --> 00:15:54,360 at any single time, client or not. You just send us on contact 238 00:15:54,399 --> 00:15:58,000 to Greenberg Financial dot com, send us an email. We can send you 239 00:15:58,039 --> 00:16:00,000 the link. You can fill it out. It's five or ten minute. 240 00:16:00,000 --> 00:16:02,559 It's gonna let you know where you are. Scale to one to one hundred 241 00:16:02,759 --> 00:16:04,759 and from there, that's really how you should be managing your accounts, if 242 00:16:04,759 --> 00:16:07,639 you're doing it yourself or if money managers should be managing it, based on 243 00:16:07,639 --> 00:16:11,600 your risk tolerance and your goals and objectives. But the first part is you 244 00:16:11,639 --> 00:16:14,799 got to know where your risk is and that will fluctuate. So in these 245 00:16:14,840 --> 00:16:18,879 type of environments where the market runs up and maybe you're feeling more bullish and 246 00:16:18,080 --> 00:16:22,399 more aggressive than normal, take that risk tolerance again to make sure that that's 247 00:16:22,440 --> 00:16:26,559 truly where you are. You're absolutely right that the what the market is doing 248 00:16:26,559 --> 00:16:33,320 at any given point can dramatically impact your risk tolerance. And when the market's 249 00:16:33,399 --> 00:16:36,559 doing really, really well well and doing well like it is this year, 250 00:16:37,000 --> 00:16:40,600 you really are comfortable with the market. And when your market's terrible like last 251 00:16:40,639 --> 00:16:45,039 year, you want out. And that's that's very typical. Economy overall doing 252 00:16:45,080 --> 00:16:48,799 better than expected. Interest rates relatively steady. This week, the Bank of 253 00:16:48,840 --> 00:16:53,480 England did hike to sect yeah, and several of the major banks around the 254 00:16:53,480 --> 00:16:57,559 world have hiked. Are fed decided to pause, that was their choice whatever. 255 00:16:57,720 --> 00:17:00,360 I think there's one thing we got to keep in mind about the Bank 256 00:17:00,399 --> 00:17:03,440 of England is in a lot of those European countries is they had a lot 257 00:17:03,559 --> 00:17:07,200 higher inflation than we did. Yes, right, and they were not as 258 00:17:07,279 --> 00:17:11,599 quick to raise rates as we were, so they were they are kind of 259 00:17:11,680 --> 00:17:15,160 lagging us. So even though it is a surprise, I think more of 260 00:17:15,200 --> 00:17:22,359 that surprise was based on our economic projections compared to what really happened. The 261 00:17:22,599 --> 00:17:25,799 couple of housekeeping things from last week. One of the questions we had last 262 00:17:25,799 --> 00:17:29,839 week that we couldn't answer is can you rent solar? We would talking about 263 00:17:29,920 --> 00:17:33,319 Dylan. Dylan knows about as little about his solar as anybody I've ever known, 264 00:17:33,400 --> 00:17:36,920 but uh, you know, that's what you were going to do, 265 00:17:37,200 --> 00:17:40,559 and I should do you own it or rent it? Yeah? He should? 266 00:17:40,799 --> 00:17:42,440 I don't know, And so we wondered if you could rent it? 267 00:17:42,440 --> 00:17:45,759 And then the answer is yes, you can rent it, but it makes 268 00:17:45,799 --> 00:17:48,519 no economic chanse. No, yeah, makes no And you did your solar 269 00:17:48,559 --> 00:17:52,000 thing and bought your solars and yeah, yeah, renting it makes no economic 270 00:17:52,079 --> 00:17:56,200 chanse. The second thing that the question we couldn't answer is how long does 271 00:17:56,279 --> 00:18:02,839 the state hold unclaim or as cheated That's the word as cheated, and as 272 00:18:02,920 --> 00:18:07,400 cheated means returned to the state or returns actually going back return to the lord 273 00:18:07,039 --> 00:18:11,480 h not the lord above, but the lord of the manor m So how 274 00:18:11,480 --> 00:18:18,839 long can they hold unclaimed property? The answer is forever. They may convert 275 00:18:18,880 --> 00:18:25,119 it to cash. They're not wanting to hold houses and cars and a personal 276 00:18:25,160 --> 00:18:27,640 property and that sort of thing. But um so they would would salad at 277 00:18:27,640 --> 00:18:30,279 auction probably with it. I think they hold it two years and then seal 278 00:18:30,279 --> 00:18:33,440 it at auctions. How did that come up with that cash Well, I'm 279 00:18:33,480 --> 00:18:36,680 trying to think how it came up? Oh were they We were talking with 280 00:18:36,839 --> 00:18:41,720 Jonathan about how you need to explore that unclaimed properties, that somebody may have 281 00:18:41,839 --> 00:18:45,920 unclaimed property. Jonathan had run in our attorney had run into somebody who had 282 00:18:45,960 --> 00:18:49,000 a bunch of unclaim property, and so we started talking about that and it 283 00:18:49,079 --> 00:18:52,759 just kind of came up, well how long do you have and they answered, 284 00:18:52,839 --> 00:18:56,039 you have forever. Essentially, oil down three dollars on the week to 285 00:18:56,160 --> 00:19:02,359 sixty nine dollars. Gasoline prices are still kill us in Tucson versus anywhere else 286 00:19:02,400 --> 00:19:04,559 in the country. Still don't get it. The one thing I wanted to 287 00:19:04,559 --> 00:19:11,079 bring up about the economy is the existing home sales, sales of existing homes 288 00:19:11,160 --> 00:19:15,160 rows point two percent and may not much it slightly above expectations, but year 289 00:19:15,160 --> 00:19:18,640 over year sales are down twenty three percent. The real interesting stat that I 290 00:19:18,680 --> 00:19:25,599 was seeing is the number of homes available for sale. Is that its lowest 291 00:19:25,680 --> 00:19:30,240 since Redfinn began recording that data in twenty twelve. We've talked about this on 292 00:19:30,240 --> 00:19:33,920 the show before. When you have hints a supply and demand thing, right, 293 00:19:33,960 --> 00:19:37,599 I mean, when you don't have a supply and you still have the 294 00:19:37,640 --> 00:19:41,400 same amount of demand, prices are going to stay up or elevated, right. 295 00:19:41,720 --> 00:19:45,920 And that's why we continue to think the housing markets able to stay robust 296 00:19:45,960 --> 00:19:51,240 in this type of mortgage rate environment is because there's just no supply available, 297 00:19:51,759 --> 00:19:53,559 right, and with mortgage RAITs where there are, they're going to be forced 298 00:19:53,559 --> 00:19:57,079 into renting. And so I don't think there's a huge amount of demand, 299 00:19:57,119 --> 00:20:02,680 but the supply is just so little that making up for any lack of demand 300 00:20:02,680 --> 00:20:04,079 that that's out. Yeah, I mean historically is well, I love this 301 00:20:04,119 --> 00:20:07,559 house, I want to live here. I really enjoyed this neighborhood. I 302 00:20:07,200 --> 00:20:10,880 couldn't be happier. Now it's I love this mortgage. I don't want to 303 00:20:10,920 --> 00:20:15,599 get rid of this mortgage. Yeah, it's telling people people are rather than 304 00:20:15,640 --> 00:20:18,519 coveting their houses, they're coveting their mortgages. Yeah, one hundred percent. 305 00:20:18,559 --> 00:20:22,240 It makes sense. I mean everything comes down to a cash flow. And 306 00:20:22,279 --> 00:20:26,759 what's the bigger status symbol right now than having a two percent mortgage? For 307 00:20:26,880 --> 00:20:29,640 sure, it's right out there. Gold was down forty dollars on the week 308 00:20:29,680 --> 00:20:33,079 as interest rates rose. Gold priced in dollars. You know, dollar rises, 309 00:20:33,519 --> 00:20:37,200 gold goes down, So gold down forty bucks to nineteen Now wasn't that 310 00:20:37,240 --> 00:20:41,400 long ago? Gold was two thousand bucks. Now we're tickling nineteen hundred. 311 00:20:41,759 --> 00:20:45,880 I was surprised by how much the dollar increased this week. Yes, ten 312 00:20:45,960 --> 00:20:49,799 year treasury versus the two year treasury. We talk about that the inversion. 313 00:20:51,200 --> 00:20:53,680 You expect the short term rates to be lower than the long term rates. 314 00:20:53,920 --> 00:21:00,920 They're not. When they're not, it typically portends a period of slowing economic 315 00:21:00,960 --> 00:21:06,279 growth. The ten year treasury yield as a Friday three point seven five, 316 00:21:06,599 --> 00:21:11,119 the two year treasury yield four point seven five got back to one to one 317 00:21:11,160 --> 00:21:14,759 hundred basis points. That's the biggest spread we've seen. It has been there 318 00:21:14,799 --> 00:21:18,720 before, but it's the biggest spread we've seen, and it portends a period 319 00:21:18,799 --> 00:21:23,559 of slower growth ahead, and so I think it's certainly We also saw with 320 00:21:23,680 --> 00:21:29,799 the yield curve that the market was expecting at least maybe one rate drop by 321 00:21:29,839 --> 00:21:33,400 the end of this year, one couple next year. They're not projecting any 322 00:21:33,559 --> 00:21:36,799 now for this year, and maybe one or two next year, So the 323 00:21:36,880 --> 00:21:40,559 market is being less optimistic about any rate cuts going forward. The bottom. 324 00:21:40,680 --> 00:21:44,160 If you based it just upon comments from the Federal Reserve, you would expect 325 00:21:44,160 --> 00:21:48,440 the market to be down five to ten percent from here, not not coming 326 00:21:48,519 --> 00:21:52,000 up, but you'd expect it already to have happened. Yeah, and it 327 00:21:52,039 --> 00:21:56,519 hasn't, which is which I think is probably a product of excitement about artificial 328 00:21:56,519 --> 00:22:02,319 intelligence and how far that's going to carry Corporate America and the FOAMO right, 329 00:22:02,359 --> 00:22:04,160 the fear of missing out, and when you have this type of rally. 330 00:22:04,200 --> 00:22:07,440 You saw what Tesla did, we saw when a video did, and we 331 00:22:07,480 --> 00:22:11,160 see what Metas done. When you're not in those stocks you really want to, 332 00:22:11,400 --> 00:22:12,880 you're like, oh, well, this is my one chance. If 333 00:22:12,880 --> 00:22:15,880 I'm not going to get it now, it might you know, sore off 334 00:22:15,920 --> 00:22:18,799 forever. And that's why I think we're continue to see the elevated prices that 335 00:22:18,839 --> 00:22:22,759 we are, we'll have to watch the fear index. Theres the fear index 336 00:22:22,799 --> 00:22:26,680 starts to tick up. That's an indicator that people are finally waking up to 337 00:22:26,720 --> 00:22:30,519 the fact that trees don't grow to the sky. Yeah. And the market 338 00:22:30,640 --> 00:22:34,720 valuation, whether it's the pe ratio or the Bullinger bands or whatever you want 339 00:22:34,720 --> 00:22:40,440 to use, is simply overpriced. It's been parabolic. It's moved from four 340 00:22:40,519 --> 00:22:44,920 thousand to forty four hundred in a straight line. These are kinds. These 341 00:22:44,960 --> 00:22:48,599 are the kinds of moves that do not last. And I'm not again, 342 00:22:48,839 --> 00:22:52,039 we're not suggesting there's a big pube because here's what happens. SMP five hundred 343 00:22:52,039 --> 00:22:59,079 closed on Friday at forty three forty eight. Now the old resistance forty three 344 00:22:59,200 --> 00:23:03,359 twenty five becomes support. Yeah, once you've broken through that long term resistance, 345 00:23:03,400 --> 00:23:07,960 which was forty three twenty five, it becomes support. So now the 346 00:23:07,039 --> 00:23:11,440 market comes down to another twenty five points from here, is getting into that 347 00:23:11,599 --> 00:23:15,599 technical support and does that hold or not? And if that doesn't hold, 348 00:23:15,640 --> 00:23:22,240 then it goes lower. But what once which once was resistance is now support. 349 00:23:22,440 --> 00:23:26,440 Yeah. No, I totally agree. Bitcoin had a good week, 350 00:23:26,680 --> 00:23:32,400 more support from traditional financial company schwab In Fidelity starting their own exchange, their 351 00:23:32,440 --> 00:23:36,440 own bitcoin exchange. Uh, okay, hold on, you're talking about Swaban 352 00:23:36,440 --> 00:23:38,839 Fideli or we're gonna talking about black Rock First, No, Swaban Fidelity and 353 00:23:38,839 --> 00:23:41,720 then black Rocks. Well, the big news is black Rock, and um 354 00:23:42,359 --> 00:23:45,640 I want to talk a little bit more after the break about that one. 355 00:23:45,720 --> 00:23:48,519 So okay, I'll be able to get getting close to a break here. 356 00:23:48,519 --> 00:23:52,519 So the regional bank indecks back down again. I didn't see anything. I 357 00:23:52,559 --> 00:23:56,480 didn't see any regional banks under go under. I didn't see any regional banks 358 00:23:57,119 --> 00:24:00,880 even reporting that they're close to going under. But for some reason there was 359 00:24:00,920 --> 00:24:07,119 a fullback in the regional banks this past week. Took the regional bank index, 360 00:24:07,160 --> 00:24:11,359 which had bounced about fifteen percent off of that May lull. It raced 361 00:24:11,400 --> 00:24:14,880 about half of that game. Yeah, over the past week. Pal says 362 00:24:14,920 --> 00:24:17,519 they're well capitalized, right, so he must be right. Well, hope, 363 00:24:17,519 --> 00:24:21,400 So again, we appreciate you joining this on this red hot Sunday, 364 00:24:22,400 --> 00:24:25,000 back in Sunday in June, in the middle of the desert. What do 365 00:24:25,039 --> 00:24:26,920 you want right, We'll be back right after this break. Thanks again for 366 00:24:27,000 --> 00:24:36,160 joining us. Yeah, welcome back to the Money Matters Show. My name 367 00:24:36,200 --> 00:24:40,880 is Todd Luke and I'm here with David Sherwood. Dean still not here in 368 00:24:40,920 --> 00:24:45,279 Europe, having a great time. Dylan out in Illinois, Illinois at a 369 00:24:45,279 --> 00:24:48,759 wedding, at a wedding, Dean and Europe with on crutches with a ACL 370 00:24:48,839 --> 00:24:52,720 issue. But his attitude is good, that's for sure. Now, we 371 00:24:52,720 --> 00:24:56,119 were talking a little bit about bitcoin before the break. It had an incredible 372 00:24:56,160 --> 00:25:00,400 week. It was up seventeen percent on the week, largely to do with 373 00:25:00,559 --> 00:25:07,720 black Rock. They are they put an application into the SEC for the first 374 00:25:07,839 --> 00:25:11,680 ever spot settled bitcoin ETF. Now many people would be like, well, 375 00:25:11,720 --> 00:25:15,200 there's already bitcoin ETFs out there, and there are. However, they invest 376 00:25:15,240 --> 00:25:19,119 in bitcoin in a different way. They've invest in it through futures contracts. 377 00:25:19,519 --> 00:25:22,440 Not going to explain with future collinists gets in the weeds. But essentially you're 378 00:25:22,440 --> 00:25:27,799 not buying the actual physical bitcoin. You're buying just an IOU of it. 379 00:25:27,599 --> 00:25:32,279 In a sense, this one that black Rock would be creating, the ETF 380 00:25:32,319 --> 00:25:37,240 is an actual buying of the bitcoin outright. The reason that SEC was denying 381 00:25:37,279 --> 00:25:41,839 this in the first place was because they had a problem with how they could 382 00:25:41,880 --> 00:25:48,440 actually see which customers owned which bitcoin. They wanted to have a purview, 383 00:25:48,480 --> 00:25:52,559 have at least an insight view on knowing, this customer owns this much bitcoin, 384 00:25:52,799 --> 00:25:56,480 this customer owns that much bitcoin, and black Rock was able to share 385 00:25:56,480 --> 00:26:00,839 that data in a way that suffices the SEC's requirements, and it's it's thought 386 00:26:00,839 --> 00:26:03,359 that this one's actually going to be approved. Also, black Rock being one 387 00:26:03,359 --> 00:26:07,319 of the world's largest hedge funds, this puts a lot of um well, 388 00:26:07,359 --> 00:26:12,640 it brings a lot of excitement to the space. So many Bitcoin has outperformed 389 00:26:12,680 --> 00:26:18,000 almost all the all coins during this period because the focus has been on bitcoins 390 00:26:18,079 --> 00:26:22,480 specifically. Um Also, you brought up and I wasn't even aware of it, 391 00:26:22,519 --> 00:26:26,759 the Fidelity and uh Schuab creating an exchange right for a bitcoin. Is 392 00:26:26,799 --> 00:26:34,759 it just bitcoin or is it affect ones that are not considered securities? Well, 393 00:26:34,799 --> 00:26:37,400 there's not many. I think it's only there's four. There's bitcoin, 394 00:26:37,759 --> 00:26:42,240 Etherium, light coin, or litcoin, and then there's a fourth, fourth 395 00:26:42,240 --> 00:26:45,640 one. I can't think what the fourth one is, but but it would 396 00:26:45,680 --> 00:26:48,880 be just trading those four, okay, and that's the big deal. Because 397 00:26:48,880 --> 00:26:52,759 for example, Ripple it has a lawsuit with sec right now, that's another 398 00:26:52,759 --> 00:26:56,880 all coin, but they're they're trying to see how they're not a security. 399 00:26:56,079 --> 00:26:59,839 Right, many of these all coins are going to be classified as securities. 400 00:27:00,079 --> 00:27:03,359 Says stocks are you have a stock offering, you have to go through sec 401 00:27:03,519 --> 00:27:06,839 you have to go through all that jargon. This is going to be a 402 00:27:06,839 --> 00:27:10,640 lot different. And so that spot ETF is a huge deal. And and 403 00:27:10,880 --> 00:27:15,119 it makes sense why bitcoin's running up here also with twenty twenty four approaching, 404 00:27:15,160 --> 00:27:18,119 that's when the next having of bitcoin happens. That always sparks your raality, 405 00:27:18,319 --> 00:27:22,359 or at least has in previous eras of bitcoins. So it's gonna be interesting. 406 00:27:22,599 --> 00:27:26,960 But I think, like all of risk related assets right now, there's 407 00:27:27,000 --> 00:27:30,920 still a lot of room to go down. Yeah, it's interesting because a 408 00:27:30,960 --> 00:27:34,200 lot of people are interested in it, but almost no one trusted. Yeah, 409 00:27:34,400 --> 00:27:37,880 because it's China. We talked a little bit about China. The economy 410 00:27:37,880 --> 00:27:41,960 there continues to slow down. Central government actually cut rates this past weekend, 411 00:27:42,000 --> 00:27:48,240 which is generally the precursor to some stimulus. Exports have been dropping, with 412 00:27:48,359 --> 00:27:53,640 US companies looking for other places to buy goods and rightfully. So. Also, 413 00:27:53,720 --> 00:27:59,039 the Chinese have a huge real estate bubble, and that real estate bubble 414 00:27:59,319 --> 00:28:03,799 is strange, training and straining, and who knows. It's fascinating why that 415 00:28:03,839 --> 00:28:08,559 bubble is too. If you really dig into the demographics and the cultural it's 416 00:28:10,079 --> 00:28:14,799 it's something that's almost unavoidable. And not to mention their population decreasing, that's 417 00:28:14,799 --> 00:28:19,599 going to continue to increase over the next couple of decades. Their one child 418 00:28:19,640 --> 00:28:25,559 policy really bit them in the bus, and their labor forces dramatically getting hurt 419 00:28:25,640 --> 00:28:29,480 right now, it hurt and also the young Chinese. The unemployment rate amongst 420 00:28:29,519 --> 00:28:33,480 Chinese under twenty years of age is twenty percent, and much of it is 421 00:28:33,519 --> 00:28:36,400 voluntarily. They're just not going to buy it. They're just not going to 422 00:28:37,119 --> 00:28:40,200 put on the gray suit and go to the factory and stand there eight hours 423 00:28:40,200 --> 00:28:41,960 a day, ten hours a day, day after day. So they've got 424 00:28:42,000 --> 00:28:45,400 some cultural changes going on there too. But I said last week, I 425 00:28:45,400 --> 00:28:52,400 think the probably the where they're the most vulnerable is chief labor. And if 426 00:28:52,400 --> 00:28:56,640 you find labor elsewhere, whether it be Vietnam or Laos or Mexico, that 427 00:28:56,640 --> 00:29:02,160 can compete with China, they're very It's funny you bring that up. There's 428 00:29:02,200 --> 00:29:06,119 a company today that I was looking into, PDD, which is Pinduo Duo, 429 00:29:06,480 --> 00:29:08,559 and they had a lassuit, not a lawsuit, but an article come 430 00:29:08,559 --> 00:29:14,079 out against them, claiming that they're using forced labor and UM in China the 431 00:29:14,079 --> 00:29:17,559 same way that Adidas and Nike did UM. If people aren't familiar, in 432 00:29:17,599 --> 00:29:19,720 twenty twenty one, there's an act that was passing, you know, can't 433 00:29:19,759 --> 00:29:22,440 do that. Don't use forced labor. It's it's not a good thing. 434 00:29:22,680 --> 00:29:26,400 And so they were kind of found to be doing that and it's sent the 435 00:29:26,440 --> 00:29:30,880 stock down five percent on the day. So forced labor and the general version 436 00:29:30,880 --> 00:29:34,079 of labor in China two different things. Obviously, I think this might be 437 00:29:34,079 --> 00:29:37,759 a good spot for a fun fact. Okay, you want a fun fact, 438 00:29:37,960 --> 00:29:41,680 sure, Okay, So that's the fortune. Five hundred put out their 439 00:29:41,680 --> 00:29:47,920 list of companies for twenty twenty two finally and what state twenty yeah, twenty 440 00:29:47,920 --> 00:29:51,039 twenty two last year because they did just now at the end of the year. 441 00:29:51,279 --> 00:29:53,440 Uh, they then calculations, no, it's a it's a bit of 442 00:29:53,440 --> 00:29:59,200 a project um and they released it and what state do you think has the 443 00:29:59,279 --> 00:30:03,839 most fortunate in five hundred companies? Uh, Texas, Jolix, You're my 444 00:30:03,839 --> 00:30:04,640 favorite, didn't you? Yeah, yeah, you did. Now, I 445 00:30:04,640 --> 00:30:07,480 would never come up with Texas. I would have never come up with Texas. 446 00:30:07,480 --> 00:30:14,319 I would have California and New York Texas maybe Texas Texas taxes I'm saying, 447 00:30:14,359 --> 00:30:17,720 oh no, but I understand, techa. But Texas is has the 448 00:30:17,720 --> 00:30:22,640 most fortune five hundred companies fifty a state in the United States to put headquarter 449 00:30:22,680 --> 00:30:26,319 your business from a tax point of view, where would you picture? And 450 00:30:26,400 --> 00:30:29,400 that's that's a good point. But for you know, California and New York 451 00:30:29,440 --> 00:30:36,319 typically are the big states where they have the population and the entrepreneurial state Texas, 452 00:30:36,400 --> 00:30:40,319 but Texas is the leader. Now California very close behind them at fifty 453 00:30:40,400 --> 00:30:44,960 three companies out of the out of the five hundred, New York again very 454 00:30:44,960 --> 00:30:48,440 close, fifty companies, and then it drops off pretty quickly Illinois, which 455 00:30:48,519 --> 00:30:52,319 is not a surprise if you thought, Okay, Texas and California and Illinois 456 00:30:52,640 --> 00:30:56,640 and New York are off the table. Who would be fourth? Maybe Florida 457 00:30:56,240 --> 00:31:00,559 Illinois, But no, Florida wasn't even in the top in the list. 458 00:31:00,480 --> 00:31:04,559 Number five tie between Ohio and Virginia. I think Arizona is going to make 459 00:31:06,119 --> 00:31:08,720 make that list in the next decade. We'll have to see it. It's 460 00:31:08,759 --> 00:31:14,000 certainly certainly moving in the right direction. It seems like we have the world's 461 00:31:14,240 --> 00:31:18,279 not the worlds, but the nation's largest foreign investment in the history, largest 462 00:31:18,279 --> 00:31:22,519 ever. Might wake somebody up. But the other side is if we wake 463 00:31:22,599 --> 00:31:26,039 that list, and how many more people are gonna come here and how much 464 00:31:26,079 --> 00:31:27,559 water are we not going to have? Yeah, but we also talked about 465 00:31:27,599 --> 00:31:32,160 like the Mexican labor force is so much better than Chinese in terms of cost 466 00:31:32,279 --> 00:31:36,000 productivity. The only thing that's keeping us from really going over there is the 467 00:31:36,039 --> 00:31:38,400 cost to move the supply chain right, And once we start doing that, 468 00:31:38,440 --> 00:31:44,799 I think there's so many more things that can really make our economy go to 469 00:31:44,799 --> 00:31:48,240 the next level and not be dependent on someone, you know, halfway across 470 00:31:48,279 --> 00:31:49,880 the world. We may not even have to go to Mexico. They seem 471 00:31:49,920 --> 00:31:56,440 to be coming to us student loans, right, do you have any student 472 00:31:56,440 --> 00:31:59,720 loans? Side? I don't have any student loans, But that's gonna be 473 00:31:59,759 --> 00:32:02,079 a fascinating thing when that starts to try you get by with no student loans, 474 00:32:02,079 --> 00:32:07,079 you just really smart and gut scholarships. Yeah, I did get scholarships. 475 00:32:06,960 --> 00:32:10,559 That surprised anyway, student law. It's official after a three year hiatus. 476 00:32:10,680 --> 00:32:15,640 Three years, there hasn't been any interest to cruing. Nobody's been making 477 00:32:15,640 --> 00:32:20,039 any payments. Wow. Yeah. And I mean if you just think about, 478 00:32:20,160 --> 00:32:22,759 like I think I saw this stat eight percent of people's disposal income normally 479 00:32:22,759 --> 00:32:28,359 goes to student loans. Think about that, right, that has not been 480 00:32:28,359 --> 00:32:30,720 around for the last three years. Now you turn that on in a time 481 00:32:30,720 --> 00:32:37,039 where we've just seen that the excess savings from the pandemic is completely gone by 482 00:32:37,039 --> 00:32:38,680 the end of the year. I say, that's what Bank of Americas is 483 00:32:38,720 --> 00:32:42,640 coming out with. And when that excess savings is gone, well, now 484 00:32:42,640 --> 00:32:45,559 we're just back to square one where we were before the pandemic. And we 485 00:32:45,640 --> 00:32:49,599 all knew most people couldn't even afford a four hundred dollars emergency bill before the 486 00:32:49,640 --> 00:32:52,400 pandemic, right. Obviously, when the stimulus came, a lot of people 487 00:32:52,440 --> 00:32:54,720 patted their stats, their savings accounts. I mean, and that helped a 488 00:32:54,759 --> 00:32:58,400 lot of people get by. But that's gone, right, and now you're 489 00:32:58,480 --> 00:33:00,960 increasing your spend with the student loans, right, so you have to come 490 00:33:01,039 --> 00:33:06,279 back somewhere who's getting cut back? Look out for those discretionary stocks, right 491 00:33:06,480 --> 00:33:10,319 right. And we talked about Target being one of the most vulnerable i've last 492 00:33:10,319 --> 00:33:15,079 week. I said, but why would Walmart and Costco not be vulnerable too? 493 00:33:15,079 --> 00:33:21,680 And Dylan explained that people of that demographic are drawn to Target, so 494 00:33:21,839 --> 00:33:28,000 Target is more vulnerable than than a Walmart. Tesla shares up fifty percent in 495 00:33:28,039 --> 00:33:34,119 the last thirty days and that prompted Barclays to downgrade the stock and urge profit 496 00:33:34,160 --> 00:33:38,240 taking. And Morgan Stanley followed the next and said, it's treat to see 497 00:33:38,240 --> 00:33:42,680 too many of those reports. No, that's at least that's a fair analyst. 498 00:33:42,960 --> 00:33:44,920 It is. It's rare to see an analyst come and say, you 499 00:33:44,960 --> 00:33:45,920 know, you need to sell some of this. Yeah, it's ridiculous. 500 00:33:45,960 --> 00:33:50,160 It's very rare. It is rare, especially with the stock as popular as 501 00:33:50,160 --> 00:33:57,240 Tesla. Speaking of what speaking of Tesla electric vehicle installations, of the report 502 00:33:57,279 --> 00:34:02,599 that came out on Friday called the twenty twenty three US Distributed Energy Resource Outlook 503 00:34:02,759 --> 00:34:10,480 right for that, they're saying EV charger installation capacity is going to overtake roughtop 504 00:34:10,519 --> 00:34:16,000 solar this year. There was the amount of energy that's going to be used 505 00:34:16,039 --> 00:34:23,159 for EV chargers is going to be greater than the savings from the solar panels. 506 00:34:23,199 --> 00:34:25,960 All the solar panels in the country if you think about how many solar 507 00:34:27,000 --> 00:34:30,360 panels are in the country versus how many EV chargers there are. Obviously, 508 00:34:30,400 --> 00:34:34,480 the ev charging business is growing by leafs and botts, and I want to 509 00:34:34,480 --> 00:34:37,480 talk about that in the next segment because I've got a piece on that as 510 00:34:37,480 --> 00:34:42,280 really is I find really puzzling, but I think I solve the puzzle, 511 00:34:43,400 --> 00:34:47,960 Dave, I hope you did. But anyway, installation is a big deal. 512 00:34:49,199 --> 00:34:52,440 We talked last week about how everybody's been able to figure out how to 513 00:34:52,440 --> 00:34:55,480 make an electric car. There aren't a lot of companies that don't have an 514 00:34:55,480 --> 00:35:01,159 electric car out there. And the one thing that that they have lagged in 515 00:35:01,559 --> 00:35:07,800 or that nobody thought about or is uh is something that just is an afterthought, 516 00:35:08,079 --> 00:35:12,599 was how do we charge all of these electric vehicles? And so we 517 00:35:12,719 --> 00:35:16,000 talked about that to some extent last week, and how Tesla has really taken 518 00:35:16,039 --> 00:35:21,000 over that market and to the point where they actually had what do they use 519 00:35:21,079 --> 00:35:22,960 you know, Tesla No, I mean that the power of their energy the 520 00:35:23,039 --> 00:35:28,840 power of their Yeah. Yeah, there's three levels of chargers, the Tesla 521 00:35:29,199 --> 00:35:35,440 powering them DC DC instead of AC from where you know, where does the 522 00:35:35,519 --> 00:35:38,559 energy come from from the electric grid? Okay, but that's your good runs 523 00:35:38,559 --> 00:35:43,519 on predominantly fossil fuels. Well, no, I get that. I get 524 00:35:43,559 --> 00:35:46,400 that. And it's less and less fossil fuels each year. We're moving towards 525 00:35:46,400 --> 00:35:50,320 solar, we're moving towards wind. Is that the perfect solution? No? 526 00:35:50,599 --> 00:35:52,880 Is it a part of the solution. Yes. Anyway, Well, we've 527 00:35:52,880 --> 00:35:55,000 got a break coming up. We'll be back right out of this break. 528 00:35:55,079 --> 00:35:58,559 I want to talk a little bit more about this. Thanks for listening, 529 00:36:06,159 --> 00:36:08,239 Welcome back. This is the Money Matters Show. You've got Todd good Jr. 530 00:36:08,320 --> 00:36:13,239 You've got Dave Sherwood. The Greenbergs are out having fun. And we 531 00:36:13,320 --> 00:36:17,920 talked in the last segment about the increase in charging stations for electric vehicles, 532 00:36:17,960 --> 00:36:23,079 which is natural. And there's a lot of analysts who decided a couple of 533 00:36:23,159 --> 00:36:29,039 years ago, being very having a lot of foresight, that boy, a 534 00:36:29,119 --> 00:36:32,440 place to have money is going to be in these companies that are putting up 535 00:36:32,480 --> 00:36:37,760 all of these charging stations. And I thought the same thing, and charge 536 00:36:37,760 --> 00:36:43,360 Point is the biggest ev GOO as another big one. And these stocks now 537 00:36:43,360 --> 00:36:47,639 that electric vehicles in twenty twenty todd were four percent of all sales. Last 538 00:36:47,679 --> 00:36:51,800 year, they were fourteen percent of all sales. This year is going to 539 00:36:51,840 --> 00:36:57,000 be eighteen percent, projected to be twenty five percent next year of all sales. 540 00:36:57,480 --> 00:37:00,960 The charger charging companies What a place to have money, right, these 541 00:37:01,000 --> 00:37:07,079 two companies, the two largest charging companies, hitting new all time lows this 542 00:37:07,199 --> 00:37:13,960 last week. Why why were they betting all time lows when the electric vehicle 543 00:37:13,960 --> 00:37:20,320 market is exploding? Got a couple of answers. Number One, they are 544 00:37:20,320 --> 00:37:22,599 in the buildout phase. And when you're in the buildout phase, you're spending 545 00:37:22,639 --> 00:37:25,880 a lot of money to add these charging stations, and they're not cheap, 546 00:37:27,320 --> 00:37:32,159 and you're not getting much revenue from the charging stations. I think probably the 547 00:37:32,239 --> 00:37:37,400 second reason, and something that a lot of these analysts didn't think about going 548 00:37:37,480 --> 00:37:43,360 in, was that most of these stations are level two chargers. Now level 549 00:37:43,400 --> 00:37:45,760 two charge. There's three levels of charging. Number one, plug it into 550 00:37:45,800 --> 00:37:52,000 the wall. Number two, have a charger that will get you ten, 551 00:37:52,159 --> 00:37:55,639 ten, fifteen miles an hour more charge Level three, which is the Tesla. 552 00:37:55,760 --> 00:37:59,920 They can charge the whole thing in fifteen minutes. So Level two is 553 00:38:00,079 --> 00:38:02,239 what you would have in your home. It would charge your car overnight if 554 00:38:02,239 --> 00:38:07,159 you had a three USA three hundred mile capacity and you got I'm trying to 555 00:38:07,159 --> 00:38:08,920 think what the numbers about twenty five miles for every hour it's plugged in. 556 00:38:09,119 --> 00:38:13,119 Twenty five to forty, I believe is the number. So you plug in 557 00:38:13,199 --> 00:38:15,119 overnight and you wake up in the morning, your car's one hundred percent charge 558 00:38:16,559 --> 00:38:20,079 Level three, which is what you want to have if you're out on the 559 00:38:20,159 --> 00:38:23,440 road. So these two charging companies, charge Points and ev Go are putting 560 00:38:23,519 --> 00:38:28,840 up primarily level two chargers, and I want to thank Ron Lance for pointing 561 00:38:28,920 --> 00:38:32,159 this out to me. And when you're out on the road traveling from Tusson 562 00:38:32,239 --> 00:38:36,599 to San Diego, let's say, or Tusson to Albuquerque, a level two 563 00:38:36,679 --> 00:38:39,519 charger doesn't do you any good. It's worthless. You don't have that kind 564 00:38:39,519 --> 00:38:44,159 of time. You don't have three or four or five hours to set there. 565 00:38:44,840 --> 00:38:47,960 So a level two charger is used in your home. Now, you're 566 00:38:49,000 --> 00:38:51,920 not going to go to charge Point or evy Go to get a level two 567 00:38:51,960 --> 00:38:57,079 charger for your home. So where are these people where are these companies going 568 00:38:57,159 --> 00:39:04,639 to get revenue? And I think the answer is banks of chargers at let's 569 00:39:04,639 --> 00:39:10,480 say, car dealerships, hospitals, schools, places of work. I think 570 00:39:10,559 --> 00:39:15,519 primarily is where they'll be used. But most people are going to charge at 571 00:39:15,559 --> 00:39:22,440 home. So having charging stations around town at these various locations I don't see 572 00:39:22,440 --> 00:39:28,320 as that meaningful. Frankly, where you want the charging presence is out on 573 00:39:28,360 --> 00:39:31,719 the freeway and the only people that have that are Tesla. They're the only 574 00:39:31,800 --> 00:39:38,480 people to have that. So that may explain why a last quarter, Ford 575 00:39:38,599 --> 00:39:45,360 sold one hundred and eighty thousand electric vehicles and Tesla sold ten times that. 576 00:39:45,639 --> 00:39:52,159 Because if you're going to use your car electric car in town, strictly in 577 00:39:52,199 --> 00:39:54,519 town, any electric car will do. You'll be fine. You're charging in 578 00:39:54,519 --> 00:39:58,760 your garage, it doesn't matter, right, But if you're going to take 579 00:39:58,760 --> 00:40:01,400 your car out on the high way, even to Phoenix. If you if 580 00:40:01,400 --> 00:40:07,599 you took a car to Phoenix that's not compatible with the Tesla charger, you're 581 00:40:07,639 --> 00:40:10,480 going to set in Phoenix for three, four or five hours to recharge that 582 00:40:10,559 --> 00:40:15,800 car to get back to Tucson. It's insane that these companies have all figured 583 00:40:15,840 --> 00:40:21,280 out how to make these electric car companies, but nobody's given much thought to 584 00:40:21,360 --> 00:40:25,159 how you're going to charge the darn things. So I'm having a hard time 585 00:40:25,239 --> 00:40:30,039 figuring out how charge Point an ev go are gonna be big companies. And 586 00:40:30,400 --> 00:40:35,280 we do see analysts recommending them. A number of analysts have recommending them, 587 00:40:35,320 --> 00:40:39,320 and I wonder if they really know what's going on out there. Yeah, 588 00:40:39,400 --> 00:40:44,400 and I continue to say, as much as evs are really cool and I 589 00:40:44,440 --> 00:40:49,400 do think they're the future, right now, predominantly they're still supplied with fossil 590 00:40:49,440 --> 00:40:53,280 fuels. Just because you charge it with electronic charger doesn't mean that electronic charger 591 00:40:53,280 --> 00:40:59,280 isn't powered by a grid that is powered by fossil fuels. So we still 592 00:40:59,320 --> 00:41:01,400 a long way to go to actually make a difference. Um, I think 593 00:41:01,400 --> 00:41:05,199 a lot of this is just making us feel good about ourselves. Well, 594 00:41:05,239 --> 00:41:09,800 but but let me be a devil's advocate here. Is you're absolutely right the 595 00:41:09,840 --> 00:41:15,400 electric power is by the fossil fuels, But is it is it then better 596 00:41:15,480 --> 00:41:21,440 to have the car that's being receiving the electricity which is out there anyway, 597 00:41:21,480 --> 00:41:23,119 the fossil fuels are going to be burning. The electricity is out there, 598 00:41:23,159 --> 00:41:27,519 whether someone uses it or not, it's still is still there. Uh. 599 00:41:28,119 --> 00:41:31,599 Is it better to have someone use it to then decrease the carbon emissions from 600 00:41:31,679 --> 00:41:36,119 vehicles? The moth is a bad thing. I don't think we're going to 601 00:41:36,199 --> 00:41:38,599 get to fifty percent of all cars. Problem with that too is you also 602 00:41:38,639 --> 00:41:44,679 think, Okay, well, there's lithium mining being done to make these ev 603 00:41:44,840 --> 00:41:46,440 cars. How good is that for the environment. Oh, no question, 604 00:41:46,599 --> 00:41:50,800 you know there's supply chains being done to make these evs. How it's good 605 00:41:50,840 --> 00:41:52,840 that for an environment. It's not. It's not. It's not an end 606 00:41:52,880 --> 00:41:57,280 all and end all be all right, But I think it's just I just 607 00:41:57,280 --> 00:42:00,360 think it's really easy to not think about those things and only think about the 608 00:42:00,400 --> 00:42:06,079 holy Grail, which is I hope it gets to one day. I'm totally 609 00:42:06,079 --> 00:42:08,920 here for a planet that isn't dependent on strictly fossil fields, right, Sure, 610 00:42:09,039 --> 00:42:13,559 but it needs to be something that is actually feasible. Yeah. No, 611 00:42:13,800 --> 00:42:15,000 I think I know you made good points, and there are all points 612 00:42:15,039 --> 00:42:19,360 we've made on this show. And it's not a it's not a right wing 613 00:42:19,400 --> 00:42:22,360 issue. It's not a left wing issue. It's it's it's an economic It's 614 00:42:22,360 --> 00:42:25,320 an economic issue, and I think where where one of the things that people 615 00:42:25,320 --> 00:42:29,880 who look at electric vehicles don't think about is the economics of it. I 616 00:42:29,920 --> 00:42:34,519 was looking at the other day and UM, a new uh Tesla Y model, 617 00:42:34,559 --> 00:42:38,400 which is the suv versus a let's say, a Portione, a Porsche 618 00:42:38,480 --> 00:42:44,480 Econ, which is a small Porsche suv. A Porsche is probably seven and 619 00:42:44,599 --> 00:42:49,199 eight thousand dollars more expensive. Um, that Tesla gets a seventy five hundred 620 00:42:49,199 --> 00:42:52,719 dollars tax credit, and then you save twenty five hundred dollars a year in 621 00:42:52,760 --> 00:42:55,760 gas and oil changes. Yeah. So if you don't think about if you 622 00:42:55,840 --> 00:43:00,000 if you think about it as an economic decision, it really becomes a whole 623 00:43:00,000 --> 00:43:04,519 different story. Yeah, it really did. Um I wanted too. So 624 00:43:04,719 --> 00:43:07,039 you have a Tesla. Pardon as long as you have a Tesla right now, 625 00:43:07,440 --> 00:43:09,639 right now, if you're if you're you know, if you're gonna be 626 00:43:09,639 --> 00:43:15,000 around town and not leave town, it doesn't matter. Yeah, it doesn't 627 00:43:15,000 --> 00:43:17,119 matter. But but for now, and and we said, well, Ford 628 00:43:17,159 --> 00:43:22,360 ink to deal with Tesla. Ford and GM and al Rivian and who else 629 00:43:22,440 --> 00:43:25,000 is coming on? I think there will be others everybody wants to use the 630 00:43:25,039 --> 00:43:30,239 Tesla charging stations, and maybe that's why Tesla stock has been so strong, 631 00:43:30,280 --> 00:43:34,320 because maybe there's a gas station of the future. Imagine if every electric car 632 00:43:34,360 --> 00:43:39,639 company uses just Tesla chargers, that's got to be really a positive revenue stream 633 00:43:39,719 --> 00:43:44,679 for Tesla. You said it was twenty five percent of sales by Win Dick 634 00:43:44,760 --> 00:43:47,679 year. So even with that, I mean, you're gonna eventually you have 635 00:43:47,719 --> 00:43:51,760 to get to one hundred percent of sales being ev right, you don't think 636 00:43:51,760 --> 00:43:54,360 that will ever happen, but you have to catch up to as many of 637 00:43:54,639 --> 00:43:57,880 gas vehicles that are out there, right, I mean, if you took 638 00:43:57,920 --> 00:44:01,639 the actual right now, the current how many electric cars are out there compared 639 00:44:01,679 --> 00:44:06,639 to gas because gas has been doing for what sure? Right? Sure, 640 00:44:06,679 --> 00:44:09,559 I mean it's probably one two, right, And I think you have to 641 00:44:09,719 --> 00:44:15,599 you have to answer the question, is it is it better to have twenty 642 00:44:15,639 --> 00:44:19,280 percent of the cars be electric or is it better to have no cars be 643 00:44:19,320 --> 00:44:22,320 electric? If you if you we're gonna have we're gonna have twenty percent. 644 00:44:22,360 --> 00:44:25,719 To get to twenty percent, you got to sell a lot more electric vehicles. 645 00:44:27,199 --> 00:44:30,119 No, but they're gonna be at twenty percent next year. No, 646 00:44:30,199 --> 00:44:34,639 that'll be of that year's sales though, Dave, I'm saying the actual les 647 00:44:34,760 --> 00:44:37,079 in the world. Oh yeah, that's what I get it. I get 648 00:44:37,119 --> 00:44:40,760 No, I get one hund percent. But and and Biden's idea that we'll 649 00:44:40,800 --> 00:44:45,000 have fifty percent by twenty thirty, that's not gonna happen. Um. I 650 00:44:45,119 --> 00:44:47,559 say you have sales, they say, with some comp maybe maybe of sale, 651 00:44:47,800 --> 00:44:52,239 not overall. Yeah, it's possible. But and I've said before on 652 00:44:52,239 --> 00:44:54,760 the show, eventually we're gonna get to a point where everybody that wants and 653 00:44:54,920 --> 00:44:59,480 can afford an electric vehicle as one. That's a great point too. I 654 00:44:59,519 --> 00:45:00,679 mean, you know, there's a lot of people out there they want to 655 00:45:00,679 --> 00:45:02,639 buy a house right now, right, Dave, Right, and they can't 656 00:45:02,679 --> 00:45:06,119 afford it and afford it, you know. And there's there's a lot of 657 00:45:06,119 --> 00:45:07,840 people that would like to have an electric car that can't even begin to think 658 00:45:07,840 --> 00:45:12,320 about it right because it's just too costly. Or we're gonna get to a 659 00:45:12,320 --> 00:45:17,039 point where I noticed Toyota signed on to an agreement last week to do more 660 00:45:17,119 --> 00:45:21,119 electric. They've been kind of holding out, thinking that hybrid is the way 661 00:45:21,119 --> 00:45:23,280 to go. They signed I love their Prius commercial. Have you seen it? 662 00:45:23,599 --> 00:45:28,519 I know they have a black Prius driving against a crowd of sheep and 663 00:45:28,559 --> 00:45:30,320 all the sheep are going, oh yeah, yeah, yeah, yeah, 664 00:45:30,519 --> 00:45:36,360 the Prius. It's it's rebellious now like Freeze used to be the echo and 665 00:45:36,440 --> 00:45:38,239 the yeah, you know, the green car, and now it's hybrid, 666 00:45:38,360 --> 00:45:43,760 so it's not really it's not really cool anymore. And then that there are 667 00:45:43,760 --> 00:45:47,880 political ramifications to any of this is just hilarious surprising to me. I had 668 00:45:47,920 --> 00:45:51,760 someone the other day I was talking about, oh, are you gonna get 669 00:45:51,760 --> 00:45:53,199 electric car? And I said, I said, why? Said? I 670 00:45:53,239 --> 00:45:57,239 didn't really like you were a lefty, right, I mean, come on, 671 00:45:57,360 --> 00:46:02,000 I mean there is no associated with there shouldn't be at least I mean, 672 00:46:02,320 --> 00:46:05,440 put your money with your mouth is. Don't get me wrong, you 673 00:46:05,440 --> 00:46:07,119 know what I mean. We saw what happened with bud Light, We're seeing 674 00:46:07,119 --> 00:46:10,800 what happened is happening with Target. I mean, if a certain company rubs 675 00:46:10,840 --> 00:46:15,800 you the wrong way, sure boycott them. And now Starbucks. You're just 676 00:46:15,800 --> 00:46:20,119 seeing Friday where Starbucks is going to have a strike that's going to close down 677 00:46:20,239 --> 00:46:25,440 union the hundreds of stores because they won't allow the employees to decorate for for 678 00:46:25,559 --> 00:46:30,800 gay Pride. But also heard Pritarbucks doesn't get to decide what happens in each 679 00:46:30,840 --> 00:46:34,000 one of their stores. It's like a fan franchise e thing. So each 680 00:46:34,039 --> 00:46:36,639 general manager gets to decide what happens in each one of them. I mean 681 00:46:36,639 --> 00:46:42,719 Target gets boycotted because they decorate for Gay month or Pride month more than that. 682 00:46:43,000 --> 00:46:45,760 Yeah, well, no, it's the same though they've got it's not. 683 00:46:45,159 --> 00:46:49,039 It's not like Starbucks is coming out with a gay pride coffee. Okay, 684 00:46:49,199 --> 00:46:54,039 now, it came out with a product that was designed for transsexuals and 685 00:46:54,079 --> 00:46:58,960 homosexuals, as did Macy's, as just coals, as have others and white 686 00:46:59,000 --> 00:47:02,119 Target and if you and now, if you don't celebrate it, you're gonna 687 00:47:02,119 --> 00:47:06,880 get blaycotted. Is like half of us are gonna be unhappy about whatever they 688 00:47:06,920 --> 00:47:07,760 do. Well, at the end of the day, you should put your 689 00:47:07,800 --> 00:47:10,039 money with your mouth because I'm a full supporter. And if you don't believe 690 00:47:10,079 --> 00:47:13,519 in something, don't put your money there. And all Targets try how you 691 00:47:13,599 --> 00:47:16,199 vote and what so Starbrooks saying is hey, we just don't get involved, 692 00:47:16,239 --> 00:47:20,239 and there's it's not acceptable leader, you know, it's like, Wow, 693 00:47:21,000 --> 00:47:22,960 at the end of the day, you gotta put your money where where you 694 00:47:22,960 --> 00:47:25,840 believe your values are. Yeah, right, well that's a that's a trick 695 00:47:25,840 --> 00:47:29,519 fil A does, and everybody loved them, and now they've got a diversity 696 00:47:29,559 --> 00:47:31,960 department. They're getting hit up for that. We'll be back after this break. 697 00:47:32,039 --> 00:47:36,559 Lead that break coming up. We appreciate you being with us on this 698 00:47:36,719 --> 00:47:38,719 hot it's gonna be hot. One hundred, eight hundred and ten, one 699 00:47:38,760 --> 00:47:43,000 hundred eleven. Yeah, well we've been uh you know it's not Phoenix Ode. 700 00:47:43,039 --> 00:47:45,159 That's the good news. Uh, take it where you can get it. 701 00:47:45,199 --> 00:47:47,800 We'll thank you for us. Then we'll be back right after this break. 702 00:47:53,760 --> 00:47:57,320 Welcome back to the Money Matters Show. My name is Todd Click, 703 00:47:57,400 --> 00:48:00,760 I'm here with Dave Sherwood and another fun week in the markets. Unfortunately it 704 00:48:00,800 --> 00:48:06,119 wasn't up though. We snapped a five week winning streak for the SMP five 705 00:48:06,239 --> 00:48:09,760 hundred and nine weeks for the NASDACS nine weeks. Yeah, finally had a 706 00:48:09,800 --> 00:48:13,800 down week. DAW was down one point seven percent on the week, SMP 707 00:48:14,039 --> 00:48:16,920 one point four, NASDAC was down one point four as well. Russell two 708 00:48:16,960 --> 00:48:21,880 thousand down three percent, and the equal weighted down two point eight percent. 709 00:48:22,480 --> 00:48:27,960 We talked about early in the show, largely due to some comments by Federal 710 00:48:28,760 --> 00:48:34,079 Federal Reserve Chairman Jerome Powis he testified to Congress on Wednesday and Thursday. The 711 00:48:34,159 --> 00:48:37,119 market really probably was just looking for a reason to take some profits, and 712 00:48:37,280 --> 00:48:40,920 they did just that. But I have a really interesting little tidbit about food, 713 00:48:42,119 --> 00:48:45,840 because we all know that there's a lot of people on this earth, 714 00:48:45,000 --> 00:48:50,639 right seven point five billion according to the US Census in twenty nineteen. The 715 00:48:50,840 --> 00:48:54,800 projections, their projections forecast nine point seven billion on the planet by year twenty 716 00:48:54,840 --> 00:48:59,639 fifty, not increasing at the same rate, not at all, but nine 717 00:48:59,639 --> 00:49:01,800 points it's a lot of people. That means thirty eight percent more people will 718 00:49:01,800 --> 00:49:05,119 need to be fed off the same amount of land than we currently have. 719 00:49:05,199 --> 00:49:08,400 Why because, Dave, if we the land isn't not more land getting created 720 00:49:08,480 --> 00:49:12,480 right now? No, I don't know if you noticed, Hai and in 721 00:49:12,480 --> 00:49:15,800 Hawaii, well maybe the it's not farm volcanoes. Yeah, it's not farmland. 722 00:49:16,079 --> 00:49:19,679 So to meet the increase in demand, the food production will need to 723 00:49:19,679 --> 00:49:23,280 be sixty percent higher by twenty fifty. The average American eats I want gonna 724 00:49:23,320 --> 00:49:27,440 let you guess this one. How many pounds does the average American eat of 725 00:49:27,440 --> 00:49:30,400 food each year? How many pounds of food each year is the average American 726 00:49:30,400 --> 00:49:35,400 eats? The average American eight and you're figuring three meals a day. You're 727 00:49:35,400 --> 00:49:37,719 gonna try to map this one out. Yeah, I'm gonna stay a thousand 728 00:49:37,760 --> 00:49:40,360 pounds pretty close. Two thousand pounds. Whoa, that's not even to half. 729 00:49:40,719 --> 00:49:45,400 Well that's not called that was terrible. Yeah, well, I'll give 730 00:49:45,400 --> 00:49:47,280 you a wow. Two thousand pounds, one thousand pounds. And you know 731 00:49:47,360 --> 00:49:52,679 what's even crazier. The United States throws out nearly forty million tons of food 732 00:49:52,920 --> 00:49:58,199 per year. The food waste is estimated to be between thirty to forty percent 733 00:49:58,280 --> 00:50:00,760 of the food supply. Say I've been, I've been. Our waste could 734 00:50:00,800 --> 00:50:05,679 feed the rest of the world. They are so fortunate to be in this 735 00:50:05,719 --> 00:50:08,559 country, and everyone says Canadians are so nice. They're right there with us. 736 00:50:08,559 --> 00:50:14,920 They throughout thirty five million metric Now, why do I bring this up? 737 00:50:15,320 --> 00:50:20,679 Fertilizer represents the biggest expense farmers have. The reason is they found that 738 00:50:20,800 --> 00:50:24,000 just using one hundred and seventy six pounds of nitrogen based fertilizer per acre has 739 00:50:24,039 --> 00:50:29,519 been shown to increase yields by three hundred and forty two percent. That's a 740 00:50:29,599 --> 00:50:32,360 huge increase of yield for a farmer. And where does a lot of um 741 00:50:32,760 --> 00:50:37,000 fertilizer come out of. Well, we learned from the Ukraine and Russia War 742 00:50:37,079 --> 00:50:39,719 a lot comes out of Ukraine. So it makes sense why that's such a 743 00:50:39,719 --> 00:50:44,599 hot spot. And there's so many countries worried about that. Forty eight percent 744 00:50:44,599 --> 00:50:49,679 of the world's population is dependent on nitrogen based fertilizers for access to food. 745 00:50:50,000 --> 00:50:53,800 Obviously that's going to increase by twenty fifty and that's why it could definitely be 746 00:50:53,840 --> 00:50:58,559 a crisis in the making. What's happening out there in Eastern Europe right now. 747 00:50:58,880 --> 00:51:01,159 Um, it's something that needs to be thought about as well as the 748 00:51:00,960 --> 00:51:07,639 other fertilization producers throughout the world, because I mean, really, I mean 749 00:51:07,719 --> 00:51:10,039 we kind of take for granted how much food we produce each year, how 750 00:51:10,119 --> 00:51:14,119 much food we consume, how many people they are out there in the world, 751 00:51:14,920 --> 00:51:17,960 and if you can't feed them, that's where society breaks down, right, 752 00:51:19,119 --> 00:51:22,119 that's actually makes really are scary. So I just thought that was interesting 753 00:51:22,119 --> 00:51:24,280 to thank you you guys, you and Dylan have been seeing a lot of 754 00:51:24,280 --> 00:51:28,440 people. They've been coming and doing the financial plans, doing the reviews. 755 00:51:29,599 --> 00:51:32,679 Kind of brought to mind yesterday. I had a meeting yesterday on Friday. 756 00:51:32,880 --> 00:51:38,920 I'm sorry with a prospective client of Listener and U. And if you're going 757 00:51:38,960 --> 00:51:42,639 to recognize who you are, and I'm not using your name or anything so 758 00:51:42,719 --> 00:51:46,079 no one can get to you, son't be embarrassed. This particular person was 759 00:51:46,119 --> 00:51:50,400 at a point of trends. And the only reason I'm going into this is 760 00:51:50,440 --> 00:51:54,079 because we talk all the time about how we're really not salespeople here. We're 761 00:51:54,079 --> 00:51:59,760 really here to help in any way we can. This particular individual is is 762 00:51:59,800 --> 00:52:04,679 that transition point in his life. He has left his previous job. He's 763 00:52:04,719 --> 00:52:07,360 in his early sixties. He's not old enough to get Social Security yet, 764 00:52:07,400 --> 00:52:12,119 unless he wants to close the door on other employment. Right, if you 765 00:52:12,199 --> 00:52:15,599 go to the sixty three, then you're you can't make over twenty around twenty 766 00:52:15,599 --> 00:52:17,639 grand is it? You can start at sixty tea. So if you but 767 00:52:19,079 --> 00:52:23,280 and he's transitioning to another job, he has some money he's inherited from his 768 00:52:23,400 --> 00:52:30,119 mom. He has a couple of of retirement accounts, and he was talking 769 00:52:30,159 --> 00:52:35,719 about advice he had gotten from other another financial advisors here in town, and 770 00:52:36,239 --> 00:52:42,639 that that advice was to put the whole thing into this immediate annuity, which 771 00:52:42,760 --> 00:52:49,480 essentially pays out the highest possible rate of interest you can receive is an immediate 772 00:52:49,519 --> 00:52:55,159 annuity, because you are giving the principle to the insurance company period you're done 773 00:52:55,880 --> 00:53:00,519 so and I thought to myself, this is interesting, and I said to 774 00:53:00,599 --> 00:53:04,440 him, I said, that's a long term solution, and you may end 775 00:53:04,519 --> 00:53:07,079 up going down that road at some point, but you're in a period of 776 00:53:07,119 --> 00:53:12,760 transition right now where you have no idea what the next three four five years 777 00:53:12,800 --> 00:53:15,519 are going to look like, and not even the next three to six months 778 00:53:15,559 --> 00:53:20,119 are going to look like. You need to have all of the capital that 779 00:53:20,199 --> 00:53:23,880 you have available in the world liquid right now. You're not in a position 780 00:53:23,920 --> 00:53:28,440 where you can take a ten, fifteen, twenty percent hit in the stock 781 00:53:28,480 --> 00:53:31,039 market. You're not in a position where you want to be locking everything up. 782 00:53:31,679 --> 00:53:37,400 You're in a position where you should have one hundred percent of the money 783 00:53:37,519 --> 00:53:42,159 your mom's inheritance is in I think, he said, wells Fargo camp paying 784 00:53:42,199 --> 00:53:45,679 three and a half percent that's fine. That's fine. You want to move 785 00:53:45,679 --> 00:53:49,119 it to vanguardy that they're paying five on their money market fund, it's fine, 786 00:53:49,280 --> 00:53:54,440 but don't put that into an immediate annuity. Don't solve a long term 787 00:53:54,480 --> 00:53:59,320 a short term problem with a long term solution. And my answer to him 788 00:53:59,440 --> 00:54:05,480 is is do nothing. Leave it like it is, get through your period 789 00:54:05,519 --> 00:54:09,639 of transition, come in two to three years and see me again. And 790 00:54:09,719 --> 00:54:15,480 he was absolutely shocked that I was not going to sell him anything. I 791 00:54:15,519 --> 00:54:19,480 remember a guy from came down from Phoenix, so listen to the show. 792 00:54:20,360 --> 00:54:24,400 He had a managed to count in Phoenix that was worth somewhere in the mid 793 00:54:24,800 --> 00:54:30,519 seven figures, and he wanted a second opinion, and so he dropped all 794 00:54:30,519 --> 00:54:32,559 the statements off. And I spent some time with them over the next few 795 00:54:32,639 --> 00:54:37,960 days, and we got together the next the following week, and I said, 796 00:54:37,079 --> 00:54:40,880 I've looked at everything that you've been doing with the people in Phoenix, 797 00:54:42,239 --> 00:54:45,880 and I would do nothing different. They're doing a great job. He goes 798 00:54:45,960 --> 00:54:51,239 what what I said. He yearned me, I can't do anything. I 799 00:54:51,239 --> 00:54:54,400 can't do any better. I can't help you. They're doing everything that I 800 00:54:54,480 --> 00:55:00,679 would do, so I can't help you. Thank them for the they're doing 801 00:55:00,840 --> 00:55:04,920 and stay with it. And that's the same with this guy met with last 802 00:55:04,960 --> 00:55:07,960 week. Is I can't help you. If I can't help you, why 803 00:55:08,159 --> 00:55:15,079 could I find some product that I could dazzle you with? Absolutely sure, 804 00:55:15,320 --> 00:55:17,400 of course I could. I've been doing this forty years. I could find 805 00:55:17,400 --> 00:55:20,800 something that would just make all the bells and whistles go off. It's not 806 00:55:20,840 --> 00:55:22,639 the right thing to do right now. You're in a period of transition. 807 00:55:22,679 --> 00:55:28,679 You need liquidity because you don't know what's coming. There will be a period 808 00:55:28,719 --> 00:55:34,519 of stability down the road somewhere. We can help. We can absolutely help, 809 00:55:34,920 --> 00:55:38,400 but I don't want to give you long term solutions to a short term 810 00:55:38,400 --> 00:55:43,960 problem. And it's very easy to dazzle people with these certain annuities because they 811 00:55:44,320 --> 00:55:46,960 have so many bells and whistles, right, And it's so easy to get 812 00:55:46,960 --> 00:55:50,559 confused with all the bells and whistles and just say, hey, this must 813 00:55:50,559 --> 00:55:52,119 be so good. I just need to have trust in him. And I 814 00:55:52,119 --> 00:55:54,800 think that's so important because we see a lot of people come in with plans 815 00:55:55,000 --> 00:56:00,159 and they'll have a couple of annuities and they just seem almost like, what 816 00:56:00,320 --> 00:56:02,679 was the plan here? Right, like, was this going to be with 817 00:56:02,679 --> 00:56:06,880 this? And it's like, they take one hundred thousand, and I'm going 818 00:56:06,960 --> 00:56:09,440 to use this for income, and there's really no plan on how you're going 819 00:56:09,480 --> 00:56:14,119 to get the rest of your income in retirement. There's it's just okay, 820 00:56:14,199 --> 00:56:16,119 I need some safety here and I want to get into it right away. 821 00:56:16,519 --> 00:56:21,920 And then and then the thing that so many people fail to realize is the 822 00:56:21,960 --> 00:56:25,159 surrender schedule. Sure, you're getting locked in. Once you make that decision, 823 00:56:25,920 --> 00:56:29,800 you don't get to make another one for a while. This guy was 824 00:56:29,840 --> 00:56:34,960 smart enough to know that to read the paperwork thoroughly enough that there's a nine 825 00:56:34,960 --> 00:56:38,119 percent commission paid to the broker on this immediate annuity, so two hundred thousand 826 00:56:38,119 --> 00:56:40,880 and nine percent eighteen grand. And he said, no, he gets an 827 00:56:40,880 --> 00:56:45,280 eighteen grand. And then what's his incentive to pay any attention to me? 828 00:56:45,559 --> 00:56:51,679 And the answer is none, there's zero. It's over. So be careful 829 00:56:51,679 --> 00:56:54,159 out there. One of the things that then this just kind of ties into 830 00:56:54,199 --> 00:56:58,000 this time, and I was leading into it, and I wanted to talk 831 00:56:58,039 --> 00:57:00,400 a little bit about it because again, it came up this week with a 832 00:57:00,519 --> 00:57:06,440 prospect I was meeting with, and that's those annuity bonuses that you hear advertised 833 00:57:06,440 --> 00:57:08,920 a lot. This is not something that I ever had to deal with in 834 00:57:09,000 --> 00:57:13,159 my career. I've been doing this for forty years, and it's just been 835 00:57:13,239 --> 00:57:15,920 the last half a dozen years this has started to pop up where you're hearing 836 00:57:16,239 --> 00:57:21,400 commercials where you can get an annuity. If you buy this annuity, you 837 00:57:21,440 --> 00:57:24,239 get a ten percent bonus, a twenty percent bonus, a thirty percent bonus. 838 00:57:24,800 --> 00:57:28,719 And to an individual, what's a bonus. A bonus is money in 839 00:57:28,760 --> 00:57:32,760 your pocket. But in this particular case where you're talking about annuities, this 840 00:57:32,840 --> 00:57:36,760 is not money in your pocket. I had a guy in a couple of 841 00:57:36,760 --> 00:57:40,159 weeks ago and put one hundred thousand dollars into this annuity with a twenty percent 842 00:57:40,159 --> 00:57:43,159 bonus, and he goes, when do I get in my twenty grand? 843 00:57:44,000 --> 00:57:47,000 I said, never is when you get your twenty grand. It's not real 844 00:57:47,159 --> 00:57:52,639 money. It is a bonus on the income side of the annuity. It 845 00:57:52,840 --> 00:57:58,320 is only used to calculate how much income they're willing to pay you. And 846 00:57:58,559 --> 00:58:01,360 much of the income they're willing to pay you is your own money coming back 847 00:58:01,400 --> 00:58:05,480 to you. Yeah. I mean if you started an annuity with one hundred 848 00:58:05,519 --> 00:58:08,480 thousand dollars. Your income base is one hundred thousand dollars. Right, But 849 00:58:08,559 --> 00:58:14,239 let's say you get an income bonus of ten percent. Well, now your 850 00:58:14,280 --> 00:58:16,840 account still out one hundred thousand dollars, but your income base will be at 851 00:58:16,880 --> 00:58:20,760 one hundred and ten thousand, right, ten percent of one hundred thousand. 852 00:58:21,519 --> 00:58:23,440 That's your calculation. Now. So if you're saying, okay, I want 853 00:58:23,440 --> 00:58:28,880 to turn on my income and say your income factor is six percents, you're 854 00:58:28,880 --> 00:58:32,039 getting six percent off whatever the value of the income base is. You're not 855 00:58:32,079 --> 00:58:35,719 getting six percent of one hundred thousand. You're getting six percent of one hundred 856 00:58:35,760 --> 00:58:38,000 and ten. And that's an annual thing, right, It's coming off of 857 00:58:38,079 --> 00:58:43,440 your hundred, and that's deducting your principle of the hundred. You never once 858 00:58:43,480 --> 00:58:45,880 got that bonus. On the actual account value side, there's two columns in 859 00:58:45,920 --> 00:58:50,800 that annuity. When you have that income bonus, you have the income base 860 00:58:50,880 --> 00:58:53,559 and you have the account value. The account values your real money. The 861 00:58:53,639 --> 00:58:59,719 income base is a calculation that the annuity company uses to factor how much they're 862 00:58:59,760 --> 00:59:02,639 going to Hey, you annually are monthly guaranteed for life. We use the 863 00:59:02,760 --> 00:59:08,039 term funny money somewhat derogatorily, but it really does describe what it is because 864 00:59:08,039 --> 00:59:13,760 it's it's monopoly money. It's it's not money you can go spend if you 865 00:59:13,840 --> 00:59:15,880 get a twenty or thirty percent bonus. Let's say you put in one hundred 866 00:59:15,920 --> 00:59:19,559 thousand and you get a twenty percent bonus, you are never going to get 867 00:59:19,559 --> 00:59:22,400 the twenty thousand. I mean, essentially, what these annuity companies are trying 868 00:59:22,440 --> 00:59:25,079 to do is just put a whole bunch of makeup on an immediate annuity. 869 00:59:25,239 --> 00:59:30,239 Yeah, you know, because they really want you to give up full control 870 00:59:30,239 --> 00:59:35,400 of your money eventually. It's just taking them longer to obtain all the money 871 00:59:35,559 --> 00:59:38,239 using this type of product compared to just the immediate annuity if you do giving 872 00:59:38,239 --> 00:59:42,679 it up right away. Right. The other thing I ran into this past 873 00:59:42,719 --> 00:59:46,480 weekend meeting with a couple of people, a couple of prospects, is I 874 00:59:46,599 --> 00:59:52,280 was reminded how little people know about what is in their four oh one k, 875 00:59:52,559 --> 00:59:55,360 how it's invested you. And I would tell you now, if you're 876 00:59:55,400 --> 01:00:00,480 listening to this radio show and you have a four oh one K, please 877 01:00:00,639 --> 01:00:05,239 look at the four oh one k, Please see what it has invested in 878 01:00:05,960 --> 01:00:10,159 please understand what it's invested in. It may or may not be appropriate. 879 01:00:10,360 --> 01:00:15,880 It may have been appropriate twenty years ago, is not now. But so 880 01:00:16,000 --> 01:00:20,880 often when I asked a question, what should invested in? Oh, I 881 01:00:20,880 --> 01:00:23,679 think it stocks. I think it's bonds. I think you know. A 882 01:00:23,760 --> 01:00:28,440 guy came in the last week and I said, what do they have this 883 01:00:28,480 --> 01:00:30,280 account invested in? He goes, Oh, it's real conservative, and I 884 01:00:30,280 --> 01:00:34,880 looked at him. Was a bunch of international ETFs. I mean, there's 885 01:00:34,920 --> 01:00:38,679 nothing conservative about that, right. The majority of people they get in there's 886 01:00:38,719 --> 01:00:43,039 called a default investment, which means if you started a four oh one K, 887 01:00:43,199 --> 01:00:45,599 you're going to automatically be put into a certain type of fund. That 888 01:00:45,639 --> 01:00:51,039 fund is normally a target date fund. A target date fund is kind of 889 01:00:51,039 --> 01:00:53,639 what it sounds like, it's your retirement target date. So you know, 890 01:00:53,760 --> 01:01:00,199 someone like me, they're going to have a twenty sixty five target date fund, 891 01:01:00,519 --> 01:01:04,559 right, because that's kind of where I would retire. Twenty sixty five 892 01:01:04,679 --> 01:01:07,679 is going to have a very aggressive makeup, right, meaning it's going to 893 01:01:07,760 --> 01:01:09,960 be predominantly stocks because it's for the long run, Right, I got a 894 01:01:09,960 --> 01:01:14,599 long time till retirement. They don't care if someone like my parents are going 895 01:01:14,639 --> 01:01:16,880 to have something like a twenty forty target day fund, right, so they're 896 01:01:16,880 --> 01:01:21,480 gonna have a little more bonds. They might have thirty percent bonds and seventy 897 01:01:21,480 --> 01:01:24,039 percent stock. And then the people who are retiring very soon, like those 898 01:01:24,039 --> 01:01:29,280 twenty twenty five target day funds, those are going to be predominantly bonds, 899 01:01:29,639 --> 01:01:34,320 right, maybe sixty percent bonds forty percent stock. And so what you your 900 01:01:34,440 --> 01:01:37,840 default investment majority of the time in these four one case, are these target 901 01:01:37,920 --> 01:01:43,199 day funds, and they are rebalanced as you go throughout life. So my 902 01:01:43,400 --> 01:01:46,800 twenty sixty five really aggressive in twenty years would be a little less aggressive, 903 01:01:46,800 --> 01:01:51,239 and I wouldn't necessarily have to go in and change anything. But you should 904 01:01:51,239 --> 01:01:53,320 still know what you're in, right, You should still go in and also 905 01:01:53,440 --> 01:01:57,719 that target day fund, what's invested in that target day fund, what kind 906 01:01:57,719 --> 01:02:00,280 of stocks are in that fund? What kind of bonds are in the fund? 907 01:02:00,360 --> 01:02:02,719 Is it bond funds or actual bonds? And you can find that out 908 01:02:02,840 --> 01:02:07,960 using something called morning Star. There's other services out there where you just type 909 01:02:07,960 --> 01:02:09,960 in the fund that you're invested in, and that will show you the holdings 910 01:02:10,000 --> 01:02:15,239 of that fund, the target date funds are very popular. And just to 911 01:02:15,280 --> 01:02:21,480 clarify it, the further you are from retirements, the more equity exposure you 912 01:02:21,519 --> 01:02:24,599 would have, and then as you thank you and as your near retirement, 913 01:02:24,599 --> 01:02:30,400 it would become more bonds. So Todd at age twenty two has you know, 914 01:02:30,840 --> 01:02:35,719 fifty years to retirement, so he's one hundred percent equities, hope not, 915 01:02:36,039 --> 01:02:42,360 whereas Dave, who's five years past retirement. Probably, So you're five 916 01:02:42,440 --> 01:02:45,679 years passed, but I'm fifty years. That means I'm gonna be seventy two 917 01:02:45,719 --> 01:02:51,400 when I retire. I'm seventy three. There you go, I guess I'm 918 01:02:51,400 --> 01:02:52,920 not retiring. Hey, you want proof, look in front of you. 919 01:02:53,079 --> 01:02:58,280 Yeah, you got proof. But that is a good point. But it's 920 01:02:58,320 --> 01:03:00,880 so often we don't know what we have, and it's so often a one 921 01:03:00,920 --> 01:03:06,079 decision type of thing, and you have forgotten what decision that was, and 922 01:03:06,159 --> 01:03:08,519 you're also paying money for that fund. Yes, there ain't no free lunch 923 01:03:08,519 --> 01:03:12,599 in this business, right, so you have to go that morning Star or 924 01:03:12,639 --> 01:03:15,840 other services will show you what you're paying for. And the thing you need 925 01:03:15,880 --> 01:03:19,719 to be looking for is something called an expense ratio. It's just like an 926 01:03:19,719 --> 01:03:22,079 aum F and ass under management fee. It's what you're getting charged to be 927 01:03:22,119 --> 01:03:27,840 invested in that fund per year. One thing we've discovered over the years the 928 01:03:28,000 --> 01:03:35,360 target date funds tend to become too conservative too early. That's been my experience 929 01:03:35,599 --> 01:03:37,199 because they don't want to probably be live, they don't want to liability right. 930 01:03:37,320 --> 01:03:40,320 Right, So if you're thinking I'm going to retire in twenty forty, 931 01:03:40,599 --> 01:03:45,800 then you probably need a twenty fifty or twenty sixty target date funds. That 932 01:03:45,840 --> 01:03:49,719 doesn't mean it has to stay there till then, it's just you don't want 933 01:03:49,800 --> 01:03:54,360 you don't want to get so conservative so early because bonds will underperform stocks over 934 01:03:54,679 --> 01:03:58,440 almost any period of time you want to pick. And we tell people this 935 01:03:58,559 --> 01:04:00,679 all the time when they're thinking about moving from the four one K to an 936 01:04:00,679 --> 01:04:05,000 IRA, maybe an in service rollover the retiring and deciding should I keep my 937 01:04:05,039 --> 01:04:10,280 four one k my old job or moving into an IRA. There are different 938 01:04:10,280 --> 01:04:13,559 costs, right, Like the four O one K, it will be cheaper 939 01:04:14,119 --> 01:04:19,320 overall to keep your money there on an annual basis compared to going with an 940 01:04:19,360 --> 01:04:25,599 average money manager. Right, However, you're gonna you're comparing apples the largest 941 01:04:26,039 --> 01:04:30,119 right because in foural one K you have very select options and you have to 942 01:04:30,159 --> 01:04:34,719 really make the decisions a money manager. You're paying them to make the decisions 943 01:04:34,800 --> 01:04:39,800 so you don't have to have the stress. And the money manager has the 944 01:04:39,840 --> 01:04:44,400 world of investments available to him. So that is you just can't compare the 945 01:04:44,440 --> 01:04:47,079 two. And that's why the IRA side it will be more money. But 946 01:04:47,159 --> 01:04:50,559 that's also because you're expecting a little bit of return. Whether you get it 947 01:04:50,679 --> 01:04:54,639 or not, that's you know, who knows. But that's the reason that 948 01:04:54,719 --> 01:04:59,159 the relationship with the advisor, the ongoing advice with the advisor, the stress 949 01:04:59,159 --> 01:05:00,880 and knowing that I don't have to worry about it every single day, that's 950 01:05:00,880 --> 01:05:05,519 what you're paying little extra for. So I always try to make people realize 951 01:05:05,679 --> 01:05:10,760 four one ks are very cheap to keep your money there. Right, normally 952 01:05:10,960 --> 01:05:15,079 I will say absolutely. However, they're cheap for a reason sure, and 953 01:05:15,119 --> 01:05:16,920 by their very nature, they have to have a limited number of choices. 954 01:05:17,519 --> 01:05:24,039 The company doesn't want to people to be confused by too many choices. They 955 01:05:24,039 --> 01:05:27,199 don't want to have to make too many choices themselves. This is why the 956 01:05:27,679 --> 01:05:30,920 target date funds have become so popular. Yeah, because the companies are basically 957 01:05:31,000 --> 01:05:32,639 liable at the end of the day. Yeah, I mean you could. 958 01:05:32,880 --> 01:05:36,079 As a company, you can throw in ten different choices and then thirty target 959 01:05:36,159 --> 01:05:40,599 date funds and you're good. Yeah. Right, You've given everybody a plethora 960 01:05:40,599 --> 01:05:44,280 of things to choose from. Did you see Amazon shares have just been on 961 01:05:44,320 --> 01:05:46,320 a chair lately? Yeah? They were up like what three percent this week? 962 01:05:46,400 --> 01:05:48,760 Yeah, I have twenty seven percent in the last ninety days. And 963 01:05:48,800 --> 01:05:54,199 that's where Bank of America decided this is a good time to put it on 964 01:05:54,440 --> 01:06:00,800 our US number one list after US gone up twenty seven percent in ninety days. 965 01:06:00,400 --> 01:06:05,400 I'm always amazed at that, is that stocks down fifty percent and you 966 01:06:05,480 --> 01:06:09,000 decide, okay, I'm gonna I think I'm gonna change it to a cell 967 01:06:09,519 --> 01:06:12,280 Right Where were you? Where were you all those points ago? Well, 968 01:06:12,280 --> 01:06:15,719 since we just talked about four oh one k's, I had an interesting stat 969 01:06:15,760 --> 01:06:18,760 from Vanguard in twenty twenty two. The total average contribution rate to four one 970 01:06:18,840 --> 01:06:25,800 K plans was eleven point three percent of pay. That's including any company match. 971 01:06:26,159 --> 01:06:30,840 That's just shy of the twelve to fifteen percent of Vanguard recommends workers suck 972 01:06:30,840 --> 01:06:32,400 away for retirements. So there you go. Pretty good. Warding the vanguard, 973 01:06:32,400 --> 01:06:36,760 you should do twelve to fifteen percent including the employer's match. Yeah, 974 01:06:36,880 --> 01:06:41,199 that's pretty good. Yeah, it's not bad, however, Well not however. 975 01:06:41,280 --> 01:06:45,800 But continuing, the interesting thing is this auto escalation feature, and that's 976 01:06:45,840 --> 01:06:49,639 why they say a lot of these workers are putting more away into their four 977 01:06:49,760 --> 01:06:54,320 one K. Now is these plans have this auto escalation feature. And what 978 01:06:54,360 --> 01:06:57,880 it is essentially is say you start your four one K contribution rate at three 979 01:06:57,880 --> 01:07:00,559 percent of pay. Automatically, next year it's going to increase to four and 980 01:07:00,599 --> 01:07:03,880 then five and then six, and then it might you know, stop increasing 981 01:07:03,880 --> 01:07:06,920 after you hit ten percent, and each year it increases one percent. It's 982 01:07:06,960 --> 01:07:11,400 it's designed to in a way that they don't want it to make it noticeable 983 01:07:11,599 --> 01:07:15,039 for the worker, while still increasing their savings rate for the worker. And 984 01:07:15,079 --> 01:07:18,400 it is a good thing because people have a hard time being disciplined, right, 985 01:07:18,400 --> 01:07:21,719 People have a hard time holding themselves accountable, and during working years, 986 01:07:21,719 --> 01:07:25,920 those are when you need to be salking that way money away. And I 987 01:07:25,920 --> 01:07:29,000 don't have a huge problem behind it. However, now it's going to be 988 01:07:29,039 --> 01:07:31,360 mandated, right because the secure We've talked about this before, but the secure 989 01:07:31,400 --> 01:07:35,079 two point o law that passed in December will require that new FOM one K 990 01:07:35,199 --> 01:07:41,079 plans will now have to include that new feature starting in twenty twenty four. 991 01:07:41,199 --> 01:07:45,400 So that's going to be a really interesting thing to just keep aware, well 992 01:07:45,400 --> 01:07:47,679 as actually starts in twenty twenty five. Excuse me, but that's gonna be 993 01:07:47,719 --> 01:07:53,719 a really interesting thing to see how much the American savings rate increases going forward. 994 01:07:53,920 --> 01:07:57,079 Now. And yeah, if you don't know, I don't need to 995 01:07:57,079 --> 01:08:01,719 get you in a box here, But it's just new plans, new plans 996 01:08:01,719 --> 01:08:06,639 for grandfather three exactly the period fathered after before twenty twenty three. Your grandfathered 997 01:08:08,239 --> 01:08:13,280 you said, auto right, auto escalation. Speaking of autos, there we 998 01:08:13,320 --> 01:08:18,560 go. Carmacks stock, up nearly thirty percent this year, added another nine 999 01:08:18,600 --> 01:08:23,680 percent at the open on Friday. Company reported earnings for the most recent quarter 1000 01:08:23,800 --> 01:08:28,600 that were nearly double expectations. And I don't know if you have any dealings 1001 01:08:28,640 --> 01:08:30,159 with Carmack Carmacks, but they're good. It's a good it's a good company. 1002 01:08:30,159 --> 01:08:33,319 I've had a few dealings with them, and uh, they're they're straight 1003 01:08:33,359 --> 01:08:39,079 shooters, they're honest. Hum, I had a card that I needed to 1004 01:08:39,079 --> 01:08:42,800 sell and uh, I took it to them for a bid and they came 1005 01:08:42,880 --> 01:08:46,960 in um a good three or four percent above CarMax and everybody else. I 1006 01:08:47,000 --> 01:08:49,159 didn't you know, you saw it in the open market, put in the 1007 01:08:49,159 --> 01:08:53,600 newspaper, whatever, Craigslist, whatever, and do better, no question. 1008 01:08:54,159 --> 01:08:57,600 But it was it was a reasonable offer. It was low retail. Oh 1009 01:08:57,960 --> 01:09:01,119 that's okay. Uh die Therapeutics. She had never heard of the company. 1010 01:09:01,600 --> 01:09:04,840 The shares of the biopharma company jumped to a new all time high. That 1011 01:09:04,920 --> 01:09:10,800 was on Monday of last week. Eli Lily acquired a company for two point 1012 01:09:10,840 --> 01:09:17,319 four billion in cash, Eli Lily and Nonvovo and I believe that other. 1013 01:09:17,479 --> 01:09:20,079 I can't think of the other company, but apparently they have some type of 1014 01:09:20,079 --> 01:09:26,560 conference all over the weekend talking about some phase studies that are coming out for 1015 01:09:26,560 --> 01:09:30,880 the first time about their ozempic drugs and all these weight loss one yeah, 1016 01:09:30,880 --> 01:09:34,319 the weight loss ones. So to see how those new phase studies continue to 1017 01:09:34,319 --> 01:09:38,399 come out, that's gonna be really interesting to see if it can finally be 1018 01:09:38,439 --> 01:09:42,720 classified as a weight loss drug and not just diabetes drug, because that has 1019 01:09:42,760 --> 01:09:45,479 a lot of ramifications. And again the FDA has been hesitant to do that 1020 01:09:45,520 --> 01:09:50,239 because of the health effects. Two health effects that I'm aware of. One 1021 01:09:50,359 --> 01:09:54,720 is that we saw a study a couple weeks ago. Thirty percent of the 1022 01:09:54,840 --> 01:09:58,920 of the lost weight is muscle and bone. You know what I learned yesterday 1023 01:09:59,319 --> 01:10:03,439 is that? And I think nineteen eighty nine or ninety one, there was 1024 01:10:03,479 --> 01:10:10,119 an act pass that made any vaccine maker can never be sued or help liable 1025 01:10:10,159 --> 01:10:15,279 for any damages from any vaccine they created. Isn't that incredible? And I 1026 01:10:15,319 --> 01:10:17,520 guess it's, uh, yeah, it is. Yes. The answer is 1027 01:10:17,600 --> 01:10:21,600 day Yes, that's incredible. I was just I was floored by the Yeah, 1028 01:10:23,039 --> 01:10:25,920 and we know that the around thirty percent again of that of the weight 1029 01:10:25,960 --> 01:10:30,079 loss is bone and muscle, and so will the FDA approve that for weight 1030 01:10:30,159 --> 01:10:34,239 loss? With those kinds of things going on? Hard to say, yeah, 1031 01:10:34,399 --> 01:10:39,000 hard to say. And also I was listening to a doctor the on 1032 01:10:39,159 --> 01:10:44,159 CBS Morning the Sunday Morning, uh, the other day, and he uh, 1033 01:10:44,760 --> 01:10:48,760 he said that once you stop taking the drugs, all the way comes 1034 01:10:48,760 --> 01:10:53,239 back. So you do you lose bone? How did the bone come back? 1035 01:10:53,520 --> 01:10:56,239 Yeah? Exactly, the bone is not going to come back. But 1036 01:10:56,560 --> 01:10:59,960 you most actually didn't say all they should most most of the weight, will 1037 01:11:00,159 --> 01:11:01,720 Karen, which is on which is typical of a diet, right, you 1038 01:11:01,760 --> 01:11:04,720 go on a diet, Well that makes sense. Yeah, I mean, 1039 01:11:04,760 --> 01:11:09,119 I don't know what's going on with the throat here. Um, I mean 1040 01:11:09,199 --> 01:11:11,960 the more you yeah, I mean, at the end of the day, 1041 01:11:12,000 --> 01:11:15,800 we all know how to continue to keep off weight. There's there's certain way 1042 01:11:15,000 --> 01:11:18,159 things you need to do, and if you stop using the one thing that 1043 01:11:18,199 --> 01:11:21,119 has help you reducing the way it's going to come back. It's yeah, 1044 01:11:21,199 --> 01:11:25,760 yeah, so we get to back to the old DNA diet and exercise. 1045 01:11:27,199 --> 01:11:33,359 You know that Lily's a Lily's drug or Nova's drug is a short term fix 1046 01:11:33,720 --> 01:11:39,199 and if it can get you started down the right road and yeah, but 1047 01:11:39,479 --> 01:11:45,760 uh, there's an awfully lot of evidence that it's it's not going to get 1048 01:11:45,800 --> 01:11:49,600 you down the right roads to temporary fix and um oh, Dave, we're 1049 01:11:49,600 --> 01:11:54,439 a country of temporary I don't think that would be a problem. No, 1050 01:11:55,680 --> 01:12:00,640 absolutely right. They will still sell as many as they can, absolutely right. 1051 01:12:00,640 --> 01:12:02,880 Well, we're coming to the end of the first hour, excuse me. 1052 01:12:02,960 --> 01:12:08,039 The first segment of the second hour, we'll have Jonathan Sivilia, our 1053 01:12:08,119 --> 01:12:11,960 attorney, back with us and the next segment and look forward to see what 1054 01:12:12,079 --> 01:12:15,279 Jonathan has to talk about this week. Thanks again for joining us. Stay 1055 01:12:15,279 --> 01:12:28,119 cool out there, we'll be back back then. Good morning again, Welcome 1056 01:12:28,119 --> 01:12:30,760 back to the Money Matters Show. We're looking for Jonathan Civilia, our attorney, 1057 01:12:30,960 --> 01:12:34,279 and he's running late, so we're gonna kick off this segment Todd. 1058 01:12:34,319 --> 01:12:39,880 We're gonna do our thing and when Jonathan shows up, we'll get him on 1059 01:12:39,880 --> 01:12:43,920 the air. The one thing that I saw this week is Ford laying awesome 1060 01:12:43,920 --> 01:12:46,560 employees. Yeah, see that as well. I did. Now job has 1061 01:12:46,560 --> 01:12:51,039 claims they didn't really they were kind of unchanged week over week, So obviously 1062 01:12:51,199 --> 01:12:56,439 they haven't laid him off yet. But obviously we gotta keep keeping an eye 1063 01:12:56,479 --> 01:12:59,920 on that because that's the only thing I can see really happening to the ECONO. 1064 01:13:00,119 --> 01:13:04,600 Mean, that could actually send us lower. It's it's interesting Ford. 1065 01:13:04,600 --> 01:13:09,439 It's an interesting company. They've been Uh, they're all in on the electric 1066 01:13:09,479 --> 01:13:12,600 vehicle thing. Uh. And yet if you want to get an electric vehicle 1067 01:13:12,640 --> 01:13:15,680 from Ford to take six to twelve months, good luck? Right, Yeah, 1068 01:13:15,720 --> 01:13:18,439 and there they're working. Uh. I think Jim Kramer was just back 1069 01:13:18,479 --> 01:13:25,239 in uh in Dearborn last week. And he said they're they're working one shift 1070 01:13:26,159 --> 01:13:30,600 at the electric plant, the electric assembly line. Jim goes, you gotta 1071 01:13:30,640 --> 01:13:34,600 be doing twenty four seven. You've got tremendous demand right now, demand you 1072 01:13:34,720 --> 01:13:40,079 cannot meet. That's insane, isn't that something if if you have one shift, 1073 01:13:40,199 --> 01:13:44,239 if you're if you're running a business. I think he said one shift. 1074 01:13:44,279 --> 01:13:45,640 It seems like it would be at least two, but maybe it's maybe 1075 01:13:45,680 --> 01:13:49,159 it's two instead of three. But the bottom line is they're not getting the 1076 01:13:49,399 --> 01:13:58,199 product out there. They've got a very popular Ford Lightning pick up the I'm 1077 01:13:58,239 --> 01:14:02,319 not a pick up lightning the lightning yeah for Lance was one fifty. Yeah, 1078 01:14:02,479 --> 01:14:05,520 I think it's one fifty for lightning. The electric fix. Of a 1079 01:14:05,560 --> 01:14:11,600 lot of demand for that. There are new Mock two Mustang Mock two electric 1080 01:14:11,600 --> 01:14:15,159 car is really a nice looking car like that one. Well, I think 1081 01:14:15,239 --> 01:14:18,399 a lot of people like it because I've been asking around and it seems like 1082 01:14:18,439 --> 01:14:25,760 it's one of the more popular looking electric car car right And yet so they've 1083 01:14:25,760 --> 01:14:29,960 got a lot of demand for their product, so they've got to find a 1084 01:14:30,000 --> 01:14:34,239 way to get the product out there. Um. I was in my exploration 1085 01:14:34,279 --> 01:14:39,880 of electric vehicles I was talking to a guy for it. If you wanted 1086 01:14:39,960 --> 01:14:45,239 a mock two Mustang mock to electric car, what's the lead time? Six 1087 01:14:45,319 --> 01:14:48,239 to twelve months? Six to twelve months? I mean I could be dead. 1088 01:14:49,279 --> 01:14:54,319 Yeah, I got aways six to twelve months for a stupid car. 1089 01:14:55,000 --> 01:15:00,680 Uh. The at Tesla two to four weeks, big difference, that's it. 1090 01:15:00,800 --> 01:15:03,640 I only two to four weeks. But that again, that's the you've 1091 01:15:03,680 --> 01:15:08,199 got to get yourself geared. Of course, you could always go to Lucid 1092 01:15:08,560 --> 01:15:12,720 or the Rivian because they're making more cars than they can sell. Problem is 1093 01:15:12,760 --> 01:15:15,159 you've got to have a lot of money if you're gonna go there. Yeah, 1094 01:15:15,159 --> 01:15:16,760 and you've said it a couple of times. We happens if those companies 1095 01:15:16,760 --> 01:15:19,800 go out of business, right, I find that a problem. I mean, 1096 01:15:19,840 --> 01:15:23,960 if you purchased an electric car and then the company goes out of business, 1097 01:15:24,000 --> 01:15:27,640 I think that's a fairly significant problem, especially if you're a Lucid one 1098 01:15:27,680 --> 01:15:30,960 that has all that Saudi Arabian money behind them. Is that Lucid I believe? 1099 01:15:30,960 --> 01:15:33,520 So? Yeah, Belie is heither can't imagine set to Lucid or Rivian, 1100 01:15:33,600 --> 01:15:36,520 So it's probably Lucid, I don't I don't think they're gonna be losing 1101 01:15:36,520 --> 01:15:40,600 any and Lucien to the one in Castle Grand right. Yeah, So well, 1102 01:15:40,640 --> 01:15:43,760 I'm just saying like, I don't think they're gonna They're not gonna you 1103 01:15:43,800 --> 01:15:45,760 know, that's a big investment for it, I get it. But if 1104 01:15:45,800 --> 01:15:47,880 they the other thing is, I don't know that I would buy an electric 1105 01:15:48,039 --> 01:15:50,279 vehicle. I think if I were to get when, I would lease it 1106 01:15:50,680 --> 01:15:57,119 because the technology is changing so rapidly that if you were to buy an electric 1107 01:15:57,239 --> 01:16:00,000 vehicle, I could see myself getting stuck with a three year old self. 1108 01:16:00,159 --> 01:16:01,359 I don't know why you buy any new car. What's the three year old 1109 01:16:01,399 --> 01:16:05,000 cell phone worth? Personally a new new cell phone? No, it's what's 1110 01:16:05,000 --> 01:16:10,920 the three year old cell phone worth? Not much? I don't know, 1111 01:16:11,039 --> 01:16:14,560 Damn No. I'm just saying with the technological change is taking place in the 1112 01:16:14,560 --> 01:16:17,159 electric car, because the phones are weird because you have the contracts and they 1113 01:16:17,199 --> 01:16:20,239 make them like you're paying a price, but you're not really paying it. 1114 01:16:20,239 --> 01:16:24,319 It's like a monthly fee. I mean, you could actually find yourself three 1115 01:16:24,399 --> 01:16:30,640 years down the road with an entirely different battery technology. So that's why I'm 1116 01:16:30,640 --> 01:16:33,399 staying that I don't know if I if I buy not me, but if 1117 01:16:33,479 --> 01:16:39,840 if a person were to buy a fifty sixty seventy thousand dollars electric car and 1118 01:16:40,000 --> 01:16:44,279 three years down the road the battery technology has changed because somebody came up with 1119 01:16:44,359 --> 01:16:46,479 us. Well, let's just take twenty thirteen, how many electrical vehicles did 1120 01:16:46,479 --> 01:16:51,039 we talk about? None? Right? Yeah, ten years later, it's 1121 01:16:51,079 --> 01:16:55,319 all we can talk about. Sure. I just that's gonna happen in twenty 1122 01:16:55,399 --> 01:16:58,640 thirty three, right, I just think the technology is that um, you 1123 01:16:58,680 --> 01:17:02,479 know Amazon, which talked about them the stock done well. They announced last 1124 01:17:02,479 --> 01:17:08,720 week they're going to invest one hundred million dollars in an AI fentner to keep 1125 01:17:08,800 --> 01:17:13,319 up with Google and Microsoft. Yeah. I mean they got to be using 1126 01:17:13,359 --> 01:17:16,239 that chat GBT somehow. The kind of money that's going into this AI, 1127 01:17:16,319 --> 01:17:23,640 I just I'm I just can't wait. I can't I probably can't wait because 1128 01:17:23,760 --> 01:17:26,119 we don't know. Sounds good, some bad, right, But it's gonna 1129 01:17:26,119 --> 01:17:31,800 be fascinating to see how our world changes over the next five years. Yeah. 1130 01:17:31,840 --> 01:17:35,399 I think it's gonna be pretty significant. Oh, absolutely. And I 1131 01:17:35,399 --> 01:17:40,399 think predominantly technology is going to continue to do what it has done. It 1132 01:17:40,479 --> 01:17:46,680 has taken mundane tasks away from us, and we've reallocated that time to things 1133 01:17:46,720 --> 01:17:50,680 that we care about more, some good, some bad. At the end 1134 01:17:50,720 --> 01:17:55,720 of the day, you free up time from mundane tasks. That's what technology 1135 01:17:55,800 --> 01:17:58,479 is designed to do. I'm just thinking how much less traffic there's going to 1136 01:17:58,560 --> 01:18:01,159 be and how much more real there's gonna be on the hiking trails with everybody 1137 01:18:01,239 --> 01:18:04,840 sitting in front of their TV with their goggles on. Well, then you're 1138 01:18:04,880 --> 01:18:10,680 gonna be mad because everyone's gonna be flying around and their electric vehicle car passing 1139 01:18:10,800 --> 01:18:14,960 up. Oh yeah, like the Jetsons right right, and that's gonna either 1140 01:18:14,960 --> 01:18:16,319 probably don't even know who the Jetsins are. Yeah, it's probably an old 1141 01:18:16,319 --> 01:18:21,079 TV show. Yeah. The spr you know, the Strategic Petroleum Reserve. 1142 01:18:21,439 --> 01:18:27,319 Despite ongoing chatter by the Biden administration to refill it, um, it has 1143 01:18:27,359 --> 01:18:30,520 been drained for the twelfth straight week. Yeah. They just say a lot 1144 01:18:30,520 --> 01:18:33,520 of that's because of the mandated thing in twenty fifteen. But again, I 1145 01:18:33,520 --> 01:18:39,079 mean, um, they can't, um they well they can't. They just 1146 01:18:39,239 --> 01:18:42,840 like the energy, you can't sell what you're buying. I mean, you 1147 01:18:42,880 --> 01:18:46,960 know, they're they're mandated to sell per Congress since twenty fifteen. Um, 1148 01:18:47,039 --> 01:18:50,079 so they're having to sell oil out of the well. You start to really 1149 01:18:50,119 --> 01:18:54,119 realize the way he came out in November or whatever it was, that he 1150 01:18:54,239 --> 01:18:58,119 was gonna buy oil back, he never really was because he knew he had 1151 01:18:58,159 --> 01:19:01,560 that mandate a politician line or no, God, please don't do that. 1152 01:19:02,119 --> 01:19:04,520 Hey, I want to talk a little bit about a stop loss order. 1153 01:19:04,720 --> 01:19:11,039 One of the things that we hear about when the market is extended like it 1154 01:19:11,119 --> 01:19:15,880 is right now, is our stop loss orders. This would be on individual 1155 01:19:15,920 --> 01:19:20,399 stocks, and of course ets would qualify. Let's say you purchased a stock 1156 01:19:20,479 --> 01:19:26,159 at sixty and it's now a hundred, and you don't want to give all 1157 01:19:26,199 --> 01:19:29,840 of that gain back. We've seen that happen before, so you put in 1158 01:19:29,880 --> 01:19:34,720 a stop loss order. Stop loss order says that if that stock were to 1159 01:19:34,760 --> 01:19:42,159 trade at or below your price, then you get executed. So let's say, 1160 01:19:42,159 --> 01:19:44,920 in the case the example I use, you went from sixty two hundred. 1161 01:19:44,960 --> 01:19:47,439 Let's say you don't want it to go below ninety, so you put 1162 01:19:47,520 --> 01:19:53,079 in a stop loss order at ninety. Stock trades ninety or below, you're 1163 01:19:53,119 --> 01:19:57,760 out now on a regular stop order. Here's what happens. Let's say the 1164 01:19:57,800 --> 01:20:02,439 stock closes at ninety one, and that night they report earnings and the earnings 1165 01:20:02,439 --> 01:20:09,760 are not good, and the stock opens at eighty two. That trade, 1166 01:20:09,800 --> 01:20:14,119 that's the next trade, ninety one to eighty two. Okay, you've said 1167 01:20:14,279 --> 01:20:17,600 if the stock trades at or below ninety, I want out. You just 1168 01:20:17,640 --> 01:20:23,920 sold it eighty two because it traded at or below ninety. The way you 1169 01:20:23,960 --> 01:20:29,600 get around that is a stop limit order, and a stop limit orders the 1170 01:20:29,640 --> 01:20:32,760 exact same thing where you put it in at ninety, but to avoid that 1171 01:20:32,840 --> 01:20:38,279 happening, you say my limit is eighty nine. In other words, I 1172 01:20:38,800 --> 01:20:42,239 want if the stock trades ninety or below, I want out, but I 1173 01:20:42,319 --> 01:20:45,039 won't take less than eighty nine. That way, if it opens at eighty 1174 01:20:45,039 --> 01:20:49,319 two, you're not a seller because you said I won't take less than eighty 1175 01:20:49,399 --> 01:20:54,560 nine. So be careful with stop orders. There are a couple kinds of 1176 01:20:54,560 --> 01:20:58,119 stop orders if you have questions about how to put those in. If you're 1177 01:20:58,119 --> 01:21:01,920 a home gamer and you're doing this on your computer or with your mare trade 1178 01:21:01,960 --> 01:21:05,439 or each trade, whatever, and you've got a question about how to enter 1179 01:21:05,479 --> 01:21:10,760 a stop order, you can also enter a buy stop where you said, 1180 01:21:10,800 --> 01:21:13,840 you know this stock, well, it's like the SMP five hundred, the 1181 01:21:14,000 --> 01:21:17,720 SMP five hundred head resistance at forty three twenty five. We knew that if 1182 01:21:17,760 --> 01:21:23,119 it moved above that forty three twenty five at the close, that there was 1183 01:21:23,119 --> 01:21:26,159 a good chance that was going to run higher all around, all the way 1184 01:21:26,199 --> 01:21:29,319 to forty four to twenty five. So what you would do in that case, 1185 01:21:29,479 --> 01:21:31,439 and you can't really buy it, I'm just using the sp as an 1186 01:21:31,439 --> 01:21:38,000 example, what you have done in that case is put a stop buy order 1187 01:21:38,279 --> 01:21:43,920 in at forty three thirty, so the stock goes above that forty three twenty 1188 01:21:43,960 --> 01:21:47,479 five decisively. You're a buyer. You bought a forty three thirty random forty 1189 01:21:47,520 --> 01:21:54,640 four to quarter. You did great buy stop stop loss. All kinds of 1190 01:21:54,680 --> 01:21:58,560 different things you can do, all kinds of different orders. You can enter 1191 01:21:59,039 --> 01:22:03,199 to protect yourself and to play that's played too smart. So if you are 1192 01:22:03,199 --> 01:22:06,600 a home gamer and doing it yourself and just would like to ask us a 1193 01:22:06,680 --> 01:22:10,800 question, we have no problem answering those questions. We do it all the 1194 01:22:10,840 --> 01:22:14,439 time. Yeah, it helps reduce the emotional side of things if you do 1195 01:22:14,479 --> 01:22:18,399 it properly. However, it also is very confusing and it gets the best 1196 01:22:18,479 --> 01:22:21,000 of us. Sometimes you have to, you know, look it up, 1197 01:22:21,079 --> 01:22:25,920 make sure you're picking the right one and things like that, because it stop, 1198 01:22:25,960 --> 01:22:28,840 stop, limit, The words can easily get jumbled in your heads, 1199 01:22:28,880 --> 01:22:31,119 so make sure you know what you're doing, what order you're putting in. 1200 01:22:31,800 --> 01:22:33,800 Yeah, if you started, people said, well, I don't want to 1201 01:22:33,800 --> 01:22:35,520 go below a nine. Dy on my example, I don't want to go 1202 01:22:35,520 --> 01:22:38,920 below a nineties. I'm gonna put a stop. And that does not protect 1203 01:22:39,000 --> 01:22:43,199 you necessarily. And the example I use you sold at eighty two. It's 1204 01:22:43,239 --> 01:22:46,920 so funny. The you know, the efficient market hypothosis says stocks move in 1205 01:22:47,039 --> 01:22:50,720 a very gradual way, they don't jump up and down, which we all 1206 01:22:50,720 --> 01:22:56,279 know, which is absolutely not true, right, absolutely not true. You 1207 01:22:56,319 --> 01:23:00,439 know Abu's budget, you know the rental car company. I thought that Uber 1208 01:23:00,439 --> 01:23:02,199 and Lyft we're going to put them out of business. I honestly did. 1209 01:23:02,640 --> 01:23:05,760 I thought Uber and Left were going to be the end of Avis and budget 1210 01:23:05,800 --> 01:23:10,760 and rental cars. And why would anyone rent a car when they've got all 1211 01:23:10,760 --> 01:23:14,399 the Well, apparently people like to have their own means of transportation. Yeah, 1212 01:23:15,439 --> 01:23:17,880 it could be less costly, depending on how many trips you have to 1213 01:23:17,920 --> 01:23:20,800 make. I think it's a flexibility issue. Just you've got your own car, 1214 01:23:20,920 --> 01:23:24,840 you know. And the stock is up twenty seven percent this year, 1215 01:23:24,960 --> 01:23:29,960 jumped another eight percent on Monday after Morgan Stanley upgraded the stock to a buy 1216 01:23:30,359 --> 01:23:32,560 now. I told you back in twenty twenty, I figured it was over 1217 01:23:32,640 --> 01:23:36,920 for them. Stock since then, Todd, since the twenty twenty low, 1218 01:23:38,439 --> 01:23:45,000 has only risen seven hundred percent. So seven times your money in three years, 1219 01:23:45,359 --> 01:23:48,640 and that's what that's. That's for a company that I frankly didn't think 1220 01:23:48,680 --> 01:23:53,279 would would be here. Who would have thought that one? Yeah, seven 1221 01:23:53,560 --> 01:23:57,239 hundred percent. It's kind of like the home builders. You go back a 1222 01:23:57,319 --> 01:24:00,319 year, year and a half, you couldn't give the home builders away about 1223 01:24:00,319 --> 01:24:02,840 to bring up. Homebuilders and semiconductors both hitting new highs. Yeah, it 1224 01:24:02,880 --> 01:24:06,399 doesn't happen in bear markets. They say, no, it's happening now. 1225 01:24:06,479 --> 01:24:09,880 We don't have a bear market right now, we have a ball market. 1226 01:24:10,159 --> 01:24:14,640 And we're yeah, because we're you know, it's the highest if we can't 1227 01:24:14,640 --> 01:24:18,680 consider it a bear market anymore. But it is the highest rally off of 1228 01:24:18,720 --> 01:24:23,199 a bear market so far that we've seen. So it's it's quite impressive this 1229 01:24:23,319 --> 01:24:27,720 rally. But again we've talked about it's seven stocks, the magnificent seven driving 1230 01:24:27,760 --> 01:24:30,000 the driving the market to level we haven't seen in a couple of years. 1231 01:24:30,000 --> 01:24:34,199 So we'll be back. We appreciate your listening to the show. We enjoy 1232 01:24:34,279 --> 01:24:36,960 bringing it to you. We've got a little bit more information. If we 1233 01:24:38,000 --> 01:24:40,920 can shake Jonathan, we'll see what we can do. We can do, 1234 01:24:41,199 --> 01:24:44,560 no promises here, but we'll certainly see what we can do. And again, 1235 01:24:44,600 --> 01:24:49,680 thanks for listening. We'll be back right after this break. Welcome back 1236 01:24:49,680 --> 01:24:53,960 to the Money Matters Show. This is our last segment of the day. 1237 01:24:54,199 --> 01:24:57,319 My name is Todd Blick. I'm here with David Sherwood. We will have 1238 01:24:57,399 --> 01:25:00,520 Dylan back, but he not back next week, Dying Dyalan next week in 1239 01:25:00,600 --> 01:25:03,479 Dean for a few more weeks. It's a few more weeks having a good 1240 01:25:03,520 --> 01:25:08,800 time in Europe. But our our man Dylan will be back. Um I 1241 01:25:08,840 --> 01:25:12,159 think sure, Yeah, I think so, Dean said. Dean said, 1242 01:25:12,479 --> 01:25:15,600 if I'm gonna go that far, we're gonna spend some time. Uh yeah, 1243 01:25:15,880 --> 01:25:18,720 And I'm all in on that. That's a long flight, it's along, 1244 01:25:18,920 --> 01:25:23,479 a lot of planning involved, and I hope they have a good time. 1245 01:25:23,600 --> 01:25:28,600 You know, PayPal stock has been languishing about eighty percent off the all 1246 01:25:28,640 --> 01:25:32,760 time high. Stock just got blasted and it's just laying there just like a 1247 01:25:32,840 --> 01:25:36,239 dead fish. Uh. It got a little bit of a boost on Monday 1248 01:25:36,800 --> 01:25:42,039 on news that they're going to spend one billion dollars to buy back more shares, 1249 01:25:42,039 --> 01:25:46,279 and it crossed my mind somebody has to certainly, isn't a lot of 1250 01:25:46,319 --> 01:25:50,640 interest from the public. Yeah, we got on the video and videos again. 1251 01:25:51,159 --> 01:25:57,800 You know, investors cannot get enough in video and rightfully, so AI 1252 01:25:57,960 --> 01:26:01,600 is all the rage. Everybody's talking about AI, artificial intelligence, how that's 1253 01:26:01,600 --> 01:26:04,239 going to change the world and all of the things it's going to do in 1254 01:26:04,279 --> 01:26:09,760 all of these different areas that you really even never even thought about until now. 1255 01:26:10,359 --> 01:26:15,920 M And Nvidia has the big chip. They have the most powerful chip. 1256 01:26:16,319 --> 01:26:20,159 Uh AMD has a chip that's that's trying to rival it, trying to 1257 01:26:20,279 --> 01:26:25,439 rival it, but it's not it's not anywhere near as powerful as in Vidia. 1258 01:26:25,479 --> 01:26:29,880 So they have the fuel that's it's kind of like kind of like Tesla 1259 01:26:29,960 --> 01:26:32,560 with the charging station. I'm sure Google Bird which is their chat GBT, 1260 01:26:32,720 --> 01:26:38,359 which I heard is in my opinion's gonna overtake chat GBT by far. Yeah. 1261 01:26:38,399 --> 01:26:43,279 I mean if you can incorporate the Google Bird with everything that Google already 1262 01:26:43,279 --> 01:26:45,720 offers, right, Like we're talking YouTube, Google Docs, Google spreadsheets, 1263 01:26:45,720 --> 01:26:51,560 I mean they are Microsoft already. They have all those services, and I 1264 01:26:51,600 --> 01:26:55,920 grew up using those. That's what people don't understand. Google was really smart. 1265 01:26:55,960 --> 01:26:59,319 They gave really cheap chromebooks to these schools. I grew up using a 1266 01:26:59,399 --> 01:27:02,079 chromebook. Everything I did was a Google Dot, Google spreadsheet, a Google 1267 01:27:02,119 --> 01:27:06,239 presentation. I didn't use Office at all. Right, so a lot of 1268 01:27:06,239 --> 01:27:12,239 these kids growing up using chromebooks, they are very accustomed to Google services. 1269 01:27:13,680 --> 01:27:16,560 Add that on top, right, you chat GB not chat Google Bard on 1270 01:27:16,600 --> 01:27:20,319 top of that, and the endless you know, possibilities really start to open 1271 01:27:20,359 --> 01:27:26,239 the door. So you know, obviously Microsoft's already is also doing this with 1272 01:27:26,319 --> 01:27:30,199 their Office Suite as well, but just something to continue to watch out for. 1273 01:27:30,239 --> 01:27:33,359 And I think Google will continue to reign supreme because of that. I 1274 01:27:33,399 --> 01:27:40,359 think most of us don't don't have any idea of how deep this AI is 1275 01:27:40,439 --> 01:27:44,079 going to go into, how many areas is going to pop up, and 1276 01:27:44,079 --> 01:27:46,680 we're going to see it and say gosh, it's involved there. It's like 1277 01:27:46,720 --> 01:27:51,720 trying to calculate exponential numbers where our brain just doesn't compute it, right, 1278 01:27:53,159 --> 01:27:55,920 our brain just doesn't have the ability to compute it. Yeah, I don't. 1279 01:27:55,920 --> 01:27:59,279 I don't think. Yeah, I think unless you're in that tech world, 1280 01:28:00,439 --> 01:28:02,600 I don't think you would have any idea of even how it would apply. 1281 01:28:03,199 --> 01:28:08,720 But it's gonna pop up in areas with our attorney friend Johnathan Stabilia has 1282 01:28:08,800 --> 01:28:13,520 joined us this morning. Hi Johnny, what's happening guys? Sorry, I'm 1283 01:28:13,520 --> 01:28:17,680 a little late. That had a you know, your service clients whenever you 1284 01:28:17,760 --> 01:28:21,159 can and whenever they need it. Oh, absolutely, but thank you for 1285 01:28:21,199 --> 01:28:26,039 having me on. That's what's going on in your world? Nothing much, 1286 01:28:26,159 --> 01:28:30,600 just a long day and it's uh that's that's how it works. So, 1287 01:28:30,840 --> 01:28:34,000 uh, the life of a working man. Yeah, book, you got 1288 01:28:34,000 --> 01:28:40,760 there? H So this is probably a uh the most if you're ever want 1289 01:28:40,760 --> 01:28:45,199 to get into retirement, learn retirement and taxes and trust and a state planning. 1290 01:28:45,239 --> 01:28:48,239 Even on your guys, Natalie be choked, all right, how do 1291 01:28:48,239 --> 01:28:53,000 you spell that? See her last name is c. H o At. 1292 01:28:53,279 --> 01:28:56,520 You're holding a book, holding a book, right, and think she's got 1293 01:28:56,520 --> 01:29:00,319 a bunch of written by Natalie be choked. All right, Every attorney I 1294 01:29:00,399 --> 01:29:05,319 know and every CPA should have this. Uh it goes she is the gold 1295 01:29:05,479 --> 01:29:12,399 standard of retirement, all right. And choke is like, choke your attorney. 1296 01:29:12,399 --> 01:29:15,520 What's that choke like? Choke your attorney? Pretty much? No chok 1297 01:29:16,479 --> 01:29:20,760 h O A C h O A t E. Al Right, Okay, 1298 01:29:20,880 --> 01:29:24,920 got it, got it choked. And so she wrote a book. She 1299 01:29:24,960 --> 01:29:28,319 wrote a very a book on how to retire. What is it? She 1300 01:29:28,399 --> 01:29:32,079 basically talks about taxation planning. Um, you know, it goes through every 1301 01:29:32,079 --> 01:29:38,199 single it's retirement vehicle you can have, and uh, what is you know? 1302 01:29:38,439 --> 01:29:42,479 She talks about different ways to strategize your retirement. And it's an area 1303 01:29:42,520 --> 01:29:46,199 that I'm really interested in and I'm trying to learn more about because it's an 1304 01:29:46,199 --> 01:29:49,000 area that a lot of state planners don't really think about. You know, 1305 01:29:49,039 --> 01:29:53,720 I had a client meeting yesterday and we talked about this this week, me 1306 01:29:53,720 --> 01:29:57,800 and you John. The Christmas tree is a great analogy when you talk about 1307 01:29:57,840 --> 01:30:00,680 the trust, right, because so many times when someone needs to get an 1308 01:30:00,760 --> 01:30:04,000 updated trust, they believe, you know, they go into an estate planner. 1309 01:30:04,119 --> 01:30:05,920 I just need to change a couple of things. I got a couple 1310 01:30:05,920 --> 01:30:11,600 of assets that changed here, and then the estate planner does the incomplete wrong 1311 01:30:11,680 --> 01:30:15,640 thing and does the whole new trust right changes the tree, and you you 1312 01:30:15,720 --> 01:30:18,439 kind of help me understand this. An analogy is the original trust is your 1313 01:30:18,439 --> 01:30:23,640 original tree, like a Christmas tree, and the assets are the ornaments, 1314 01:30:23,680 --> 01:30:26,560 and they're gonna go on, They're gonna go off, and assets are gonna 1315 01:30:26,640 --> 01:30:28,640 change. But you don't need to change the tree. The tree is fine. 1316 01:30:28,680 --> 01:30:30,479 You just need to change some wording here and there. Right. And 1317 01:30:30,520 --> 01:30:33,119 I had a client who was talking with me and it's like, I think 1318 01:30:33,159 --> 01:30:36,720 I need a new asset, new estate plan, or I need to review 1319 01:30:36,760 --> 01:30:39,880 my estate plan, but every time I get it reviewed, someone tries to 1320 01:30:39,880 --> 01:30:41,920 give me a new estate plan, right right, So I think that's a 1321 01:30:42,000 --> 01:30:44,880 very important thing at least bring up and talk a little bit about right now. 1322 01:30:45,159 --> 01:30:47,760 Yes, So, one of my biggest pet peeves with some attorneys is 1323 01:30:47,800 --> 01:30:51,800 they hard code everything in So you say, twenty years ago you had one 1324 01:30:51,840 --> 01:30:56,800 house, and you set up in a state plan with an attorney, and 1325 01:30:56,840 --> 01:31:00,520 there's a schedule in the back that has the one house, but it's hard 1326 01:31:00,520 --> 01:31:06,079 coded, you know, typed into the trust, and that schedule should be 1327 01:31:06,079 --> 01:31:11,319 able to be changed at a moment's notice. It shouldn't be hard coded. 1328 01:31:11,319 --> 01:31:15,840 You should write it in as you bring in assets, and you should cross 1329 01:31:15,880 --> 01:31:19,119 off the assets as you go through life. All right, So an attorney 1330 01:31:19,159 --> 01:31:23,640 that hard codes an in I think it's dirty pool because every time you get 1331 01:31:23,640 --> 01:31:25,840 a new asset, or if you want to remove an asset, you have 1332 01:31:25,880 --> 01:31:29,079 to go to him to make an alteration. I don't think you need to 1333 01:31:29,079 --> 01:31:30,840 do that. The only time you should be updating your trust as if you're 1334 01:31:30,880 --> 01:31:35,880 making if you have major life changing issues. You know, you got married, 1335 01:31:36,479 --> 01:31:41,880 had some kids, you want to disinherit some kids you want to disinherit 1336 01:31:41,920 --> 01:31:45,159 somebody, you want to change your trustees. But if you're adding and subtracting 1337 01:31:45,159 --> 01:31:48,319 assets, there's no reason to make alterations to the trust unless you specifically wanted 1338 01:31:48,399 --> 01:31:53,720 to go somewhere so you know you'll have an attorney that and if you do 1339 01:31:53,800 --> 01:31:57,039 get to stay planned and not with my firm, but you go somewhere and 1340 01:31:57,159 --> 01:31:59,439 they ask you what your assets are, and then they give you a schedule 1341 01:31:59,520 --> 01:32:02,600 typed out and they ask you to attach it to your trust. I don't. 1342 01:32:02,640 --> 01:32:05,319 I don't believe in that. I don't think that's a right way of 1343 01:32:05,399 --> 01:32:09,640 preparing an a state plan. It's uh, like I said, I'm not 1344 01:32:09,720 --> 01:32:12,680 here to squeeze you out of every dime. I'm here to make sure you 1345 01:32:12,720 --> 01:32:16,439 have something and to see me as little as possible. Yeah, it makes 1346 01:32:16,439 --> 01:32:19,640 no sense, the whole schedule thing. It makes no sense that your life 1347 01:32:19,720 --> 01:32:25,279 changes so dramatically. My wife and I put our living trust together in nineteen 1348 01:32:25,319 --> 01:32:29,079 eighty two, it's forty one years ago. And then they had there been 1349 01:32:29,119 --> 01:32:31,520 a list of things. They're all gone. I mean, it's for ever 1350 01:32:31,600 --> 01:32:34,520 on a totally different life. Yeah, it's I don't. I don't get 1351 01:32:34,560 --> 01:32:39,920 it. It's why and I will see trust like that. And so you 1352 01:32:39,960 --> 01:32:45,079 think that those are put together primarily so the attorney can get to review it 1353 01:32:45,079 --> 01:32:47,279 from time to time or doing amendment. I shouldn't check it. I'm making 1354 01:32:47,279 --> 01:32:51,760 it. Talk bad about your profession. But that's interesting, But it's true. 1355 01:32:51,800 --> 01:32:56,199 So many people are worried about, you know, updating trust or doing 1356 01:32:56,239 --> 01:32:58,520 certain things that they should be doing, just because they feel like they're going 1357 01:32:58,560 --> 01:33:01,000 to get nickel and dimed all the way. And that's why anyone listening should 1358 01:33:01,000 --> 01:33:04,640 take advantage of that free consultation with you, because you will just tell them 1359 01:33:04,680 --> 01:33:06,760 straight up what do they need to do, why they need to do it, 1360 01:33:06,800 --> 01:33:09,520 and then you would give them the price. Right, Yeah, and 1361 01:33:09,720 --> 01:33:14,000 in that in that document exactly in that document at the back. You know, 1362 01:33:14,159 --> 01:33:15,880 it doesn't need to be updated all the time. It's just there for 1363 01:33:16,039 --> 01:33:20,159 I believe, for inventory purposes only. So if you have a couple of 1364 01:33:20,199 --> 01:33:24,840 houses that are not on there, or there's assets that are inside the trust 1365 01:33:24,880 --> 01:33:28,560 that are not on there, doesn't preclude it from the trust as long as 1366 01:33:28,560 --> 01:33:30,479 it's titled inside the trust. The ornaments. You put the ornaments on, 1367 01:33:30,720 --> 01:33:34,640 all right, and you take them off as you go. So, UM, 1368 01:33:34,800 --> 01:33:38,399 don't feel you need to reach out to an attorney, and maybe they 1369 01:33:38,439 --> 01:33:42,079 have a great reason to doing I you know, I've never understood it, 1370 01:33:42,159 --> 01:33:44,439 but you know, hopefully an attorney you can reach out to me and tell 1371 01:33:44,479 --> 01:33:46,840 me why and maybe cuss me out and let me know there is a legitimate 1372 01:33:46,880 --> 01:33:51,079 reason. And I'm willing to listen. But you know, personally, as 1373 01:33:51,119 --> 01:33:56,039 an attorney, my decision would not be to do it that way. At 1374 01:33:57,479 --> 01:34:00,600 them. Anything creative to happen this week you're always he always said, he's 1375 01:34:00,600 --> 01:34:04,560 fascinating. Well, we know one thing was the wills. I know we 1376 01:34:04,680 --> 01:34:09,880 got more work on it. But how does someone go about just creating will 1377 01:34:09,960 --> 01:34:14,239 with you? What does that look like? Very very simple? You know, 1378 01:34:14,359 --> 01:34:16,319 we sit down, Uh, you know, we'll do a little intake, 1379 01:34:16,920 --> 01:34:24,640 we'll figure out what you have. UM, you know, will take 1380 01:34:24,680 --> 01:34:28,479 a look at you know where things are to go. We'll take a look 1381 01:34:28,520 --> 01:34:32,319 at um you know you know where you know, if you're married. Do 1382 01:34:32,359 --> 01:34:35,960 we need to create two wills? Um? Do we need to you know, 1383 01:34:36,079 --> 01:34:39,800 discuss personal representatives? Who? Who? Who do you think is responsible 1384 01:34:39,880 --> 01:34:44,239 enough to go to court and then minister these assets? Um? I do 1385 01:34:44,279 --> 01:34:46,279 get a lot of personal representatives that are not my clients that call me up 1386 01:34:46,319 --> 01:34:48,840 and say, you know, do I really need to contact this person? 1387 01:34:48,840 --> 01:34:51,720 They're written out of the will, uh, you know, and ask me 1388 01:34:51,760 --> 01:34:56,039 certain questions. And I think some of them have bad intentions. You know, 1389 01:34:56,079 --> 01:34:58,800 you don't want to put a person in there with bad intentions. You 1390 01:34:58,800 --> 01:35:00,520 know, you want to put in somewhere there's to do right by your beneficiaries. 1391 01:35:01,239 --> 01:35:08,199 Right at the we talked about the four o one cage and how you 1392 01:35:08,199 --> 01:35:10,840 need to look at that, and I would say that with all of your 1393 01:35:10,920 --> 01:35:14,239 legal documents as well. It doesn't are. From time to time we tend 1394 01:35:14,279 --> 01:35:18,239 to to draft those and then forget about them, we yeah, and also 1395 01:35:18,439 --> 01:35:21,039 forget about the beneficiaries of the four old Yeah, I mean, okay, 1396 01:35:21,119 --> 01:35:26,880 that's all done, you know, but my trust from nineteen eighty you look 1397 01:35:26,920 --> 01:35:29,239 back on that. I didn't even have a child of that. But real 1398 01:35:29,319 --> 01:35:31,159 quick, I mean on the four one k normally you should have the primary 1399 01:35:31,159 --> 01:35:34,399 of your spouse as the beneficiary and then a contingent if you have a trust 1400 01:35:34,439 --> 01:35:41,399 to trust exactly right, exactly, and um that that's ideal and right, 1401 01:35:41,439 --> 01:35:44,760 and that's why I have this book. All right? Have you read the 1402 01:35:44,800 --> 01:35:48,399 book? I've read. It is very thick. I'm getting through it. 1403 01:35:48,520 --> 01:35:51,239 I was very impressed that you might have read it. I've read. I've 1404 01:35:51,279 --> 01:35:55,399 read the first couple of chapters, and it's really interesting because it talks about 1405 01:35:55,399 --> 01:36:00,479 how to save on taxes. Uh, let's say, all you have us 1406 01:36:00,960 --> 01:36:03,439 one kid that's a one kid that's a doctor. One kid that doesn't make 1407 01:36:03,439 --> 01:36:08,960 a lot of money, you know, do you want to give the retirement 1408 01:36:09,039 --> 01:36:13,800 to the child that isn't a higher income tax bracket and then or do you 1409 01:36:13,800 --> 01:36:15,199 want to give or give it to the one that's in a lower income tax 1410 01:36:15,199 --> 01:36:19,640 bracket and then give the child the house that has a step up in basis 1411 01:36:20,039 --> 01:36:23,159 right, And you can say I kind of want to play around with that 1412 01:36:23,199 --> 01:36:26,399 and think about those kind of things when you are administering your assets. Give 1413 01:36:26,520 --> 01:36:29,199 Jonathan a call. He can help you out with Right here at five two 1414 01:36:29,439 --> 01:36:31,399 or five four four four nine o nine, we thank you. They're joining 1415 01:36:31,479 --> 01:36:34,239 us to come into an end. We all want to be happy, yes 1416 01:36:34,279 --> 01:36:36,800 we do. We all want to be healthy, of course, but at 1417 01:36:36,840 --> 01:36:40,239 the end of the day, we're trying to be profitable.