Fiscal Insights: Employee Credits, Fed Policies, and the Art of Money Management

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Good morning everybody. This is Dean
Greenberg. This is Sunday morning, eight

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o'clock and it will be the Money
Matter Show. We're gonna bring to you

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for the next two hours, insight
to what's going on in the markets,

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some ideas, some strategies, and
answer some questions that we got for the

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emails this week. I hope you
enjoy it because we're ready to bring it

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to you Money Matter Show. Here
we go. Hey, this week,

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another flat week in the markets.
Kind of felt a little bit like they

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want to turn over a little bit
right now. The S and P was

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down point one percent and NAZAK was
down a little over half a percent.

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The Rustle the small caps were down
two and a half and the SMP equal

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weighted was down about one percent.
For the month, the s and P

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is still up about a half a
percent and nazac's down about one percent.

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And for the year, s and
P still up seven and Azac's up six,

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and the Dial's only up two and
the wrestle not to russell the SMP

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equal weight it is up about four. So where do we go from here?

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I mean, you get a lot
of questions, a lot of calls.

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I mean, uh, you know, everything from I'm so scared about

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this market too, where's a good
where are we're gonna go? Should we

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be buyers? And everything in between. There's no surprise for us to tell

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you that we've been cautious but obviously
making some money when the market's arising.

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We're in the right areas. We
try to be in the right areas.

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Balance portfolios have good, good bond
ladders right now with government bonds, corp

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good corporate bonds. So the balanced
approach is the best approach right now.

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Do I think there's gonna be a
crash? You know, I don't see

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the signs of it right now,
and you don't ever really see the science

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if you if you really are gonna
be honest, because what happens is a

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black swan event comes and boom,
it's there. But it always happens with

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the federal reserve. The federal reserve
is what creates the money supply that's out

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there. It creates how much liquidity
we have, and we're not. Liquidity

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tightens up. That's when we always
have problems with banks and everything else.

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When we have events that hurt our
economics and our businesses and just the overall

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economy. That's what destroys the liquidity, which then creates a scenario, as

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you know, everyone wants to leave
the party at the same time. I

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don't see that happening this year because
it is a election year. I see

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people like Janet yelling and all trying
to keep the Biden in as president.

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And let's face it, the only
thing he's got going right now is the

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economy moving supposedly the right direaction,
even though it's kind of false pretense,

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but he does have a market making
new all time highs. So people with

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money and people with forward k plans
and people that look towards retire a kind

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of okay with that. What they're
not okay with is prices being as high

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as they are. Inflation was another
problem this week. You saw the CPI

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PPI numbers coming back and telling you
that inflation is more sticky than what they're

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telling us. I've we've on this
show and you can go back and listen.

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I've said I don't see how they
lower interest rates at this time.

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I still don't see how they lower
interest rates in the face of the CPI

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and PPI number. The only way
they're going to lower interest rates on a

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legitimate basis, would be what if
the economy was faltering, if all of

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a sudden we had a liquidity crisis, all of a sudden, there's a

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black Swan event. All of a
sudden, companies aren't making money, are

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being squeezed because we're in a recession
because people aren't spending money. Well,

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that can come. I think it's
next year. I see credit card balances

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increasing, I see delinquencies increasing.
I see interest rates. Higher. Interest

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rates hurt people when they rise.
Most interest rates are adjustable. Not so

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much of mortgages, but those are
high right now. But on credit cards

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and loans, a lot of people
have adjustable mortgages. Businesses are almost always

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adjustable loans. So there's a problem
there. Our own debt that keeps increasing

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is costing us so much more money
right now because of the of inflation.

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And then you and then they just
try to tell us over and over again,

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well, Biden's bringing inflation down,
Biden's increased is increasing wages. Biden

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is going ahead and working on the
border. It's like Hooper leaves this,

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and then I realize a lot of
people, unfortunately, a lot of people

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just listen to the snippets of the
pundits that they want to listen to who

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gave them the news, and all
they have to do is keep lying about

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it. There is no way middle
class law and and and the lower income

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families are not struggling. They are
all struggling because even though their wages might

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have increased, the the the amount
that they have to pay for real items

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has not increased it the same rate. You can. You can have President

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Biden up there all day long telling
you, well, wages have increased more

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than prices. Not for the average
person. They are struggling. And that

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is why savings has decreased. Credit
cards balances have increased because the interest rate

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that they're paying is extremely high.
And I promise you people aren't making twenty

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twenty five thirty percent more on wages
that are paying those credit cards off.

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And that's how much credit cards are
average is about twenty five percent for the

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average American person that doesn't pay it
off month to month, and that eats

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them alive. So we're going to
get into all that today and talk about

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where this is going. In a
second, I gotta go ahead and tell

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you that this show is brought to
you by Greenberg Financial Group. Greenberg Financial

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Group is both a registered investment advisory
and a broken dealer registered with the SEC.

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Members of FINRAM, members of SIPIK. We talk a lot about product

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strategies, ideas, especially ideas.
Everything has a risk. Everything has a

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risk. Please understand what your risk
tolerance is. Understand what the risk of

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the investment is. Understand how much
of that risk you can take, and

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where it fits in with your goals
and your needs. We try to do

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that for everybody. Obviously a lot
of people try to do that for a

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lot of people, but there's a
lot of people out there that just want

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to sell your product. Be careful. I can't emphasize that enough. Be

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careful. You hear it all.
And I'm going to talk about annuities later

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on in the show today. Annuities
are okay in certain situations. They're not

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the end all for everybody. Just
because you're retiring doesn't mean you need to

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put your money in annuities and get
a guaranteed income unless you know every rule,

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every idea. You have to read
that fine print, and you don't

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understand the fine print. Ninety eight
percent of people do not understand the fine

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print and do not understand how annuities
really work. Most people are disappointed.

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Some every once in a while people
are not disappointed. The guaranteed income is

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the one thing that is worth it, but remember that also could hurt your

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principle. A big thing I'm hearing
a lot lately is about the lurps,

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the life insurance policies that you can
take money off and borrow against it tax

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free, and then when you die, the life insurance pays off the loan

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and it's all tax free. And
that's wonderful except for when it doesn't work.

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And you've got to pay attention to
what worst case scenarios are when things

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don't work, because the person that's
going to suffer is you. The big

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commissions on annuities and lups come up
front. The person that suffer is you.

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What you want to do is be
with a financial advisor, somebody that's

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going to do a plan for you, a real plan for you, and

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not just turn around and sell you
a product, an annuity, your life

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insurance policy. There are other ways
you can save on taxes. Because when

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things don't work out, there's a
problem. All right, things are a

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problem. Be careful the way people
advertise. I hear a lot of different

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advertisements out there. I hear a
lot of different guarantees out there. I

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hear a lot of bonuses out there. Be careful of all of that.

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Well, you navigate your own plan. You're smart, you know what common

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sense is, all right, and
if you feel pressure, walk away,

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walk away. This is a relationship
building thing. This is what you're looking

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for, is to build a relationship
with a financial advisor on all aspects of

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your life. You should be able
to go to them and say should I

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at least or buy a car,
even though they don't get paid for it.

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They should be able to try to
help you out with because they have

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that financial plan where it fits in. They should be able to help you

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on what kind offications you can afford, Where do you want to go,

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what do you want to do,
fitting in with the budgets, making sure

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your budgets are there, talking to
you, meeting with you. That's what

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advisors do. We'll financial advisors build
a relationship with their clients. Then they

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either hand off the money or in
our case, we manage it ourselves.

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We choose to do that because we
will be accountable for what we're buying.

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And selling according to what you needs
and what your goals are, and we

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can change quickly and we con mitigate
risk quickly if the need is to do

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that caution. That's where we are
right now, cautious. We have a

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higher amount of money and money markets
right now because they're paying good money.

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Why take the risk when we've rallied
so much, you know, ETFs and

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certain areas cut back, allocate,
and we've had this big run up.

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So now we're readjusting, re trimming
some positions, raising cash and looking for

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opportunities. There's always opportunities. We
talk about that all the time. The

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most recently over the last four months
or so, there was an opportunity in

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Target. I had got down,
you know, between one ten and one

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twenty five is so goodbye. Rallied
all the way up to over one forty

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fifty. Boeing a couple of years
ago is down to around one hundred,

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rallied to two fifty. It's coming
back down again because of problems. That

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could be a possible opportunity down the
road here Disney. Nobody wanted Disney,

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so I got down in the seventies. Not where is it one one oh

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five, one ten somewhere in there. Okay, you've got you got Raython

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right. Our backyard got down to
the low seventies, now it's over ninety.

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Problems arise in good quality companies,
they get there, they fix them,

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and you move forward and then it's
there. So right now, the

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way I look at the markets,
I look for opportunities, but I don't

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mind having a lot of cash.
I don't mind having a little mitigation of

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risk on right now. But the
way I like to do it is to

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be able to have cash right now. We have a little bit of a

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hedge on with the inverse funds,
but other than that cash and getting some

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bonds, I'm very comfortable. I
don't know when the market's going to fall,

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but I don't think it's going to
fall big right now. But even

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if you get a ten or twelve
or fifteen percent moved down between now and

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say the election, probably is going
to be a very good buying opportunity.

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Look for quality stocks that fall back
to support levels, little ones. That

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money will flow back into the fast
money, the strong money, and the

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institutional money will flow back into the
stocks that are good quality stocks. Is

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remember, institutions always have more money
coming to them to four one k plans,

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and all mutual funds have money coming
to them when they have to liquid

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date. That makes the markets go
down fast and furious, and that's why

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once it stops, the sellers are
gone and now people looking to buy.

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That's when you step up and buy
before that way, that avalanche of buying

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comes back in and because when they
stop putting money back in, they have

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to buy again. You have to
have a feel for that. You ever

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notice when the market's fall, they
go quick, but when they go higher,

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once the money stops, it's there
because who's going to keep giving money?

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The first four months of the year
usually good because guess what, it's

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a whole new bunch of new money
coming in from pensions, from four one

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k plans to bonuses, you name
it. It comes back in the markets.

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So there's abundance of cash that looks
to buy, and as the market

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goes higher, people get scared they
want to put more money in. That's

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the scenario we're in. That's what
forced those seven tech stocks up. But

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now we're getting a little bit more
of a broader, broader sense of what's

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going on in the market. More
stocks are doing better, and they look

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like there's opportunities. Companies are coming
around. Old companies are starting to look

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and I see accumulation in them.
Okay, you know, I don't know

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if IBM or Intel fits in with
your portfolio for not managing it, but

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those are good quality companies that haven't
done much over time, but are starting

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to look good again a little bit. You know, look at the financials,

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look at the money accumulations. There's
opportunities to start maybe small positions if

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that's what you're looking for. Or
look for the ets. Okay, that

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those have those kind of stocks into
them, it gives you a little bit

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more allocation and a little bit less
risk. There's a lot of things to

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do, but it has to be
in there. That's why people say,

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Okay, you have this cash,
what are you going to do? I'm

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always looking for things, Okay,
I'm always looking for things. Looks like

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the biotech industry is heating up again. It's done well. That we talked

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about the home builders of a couple
of months ago. They were making all

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time new highs here the ETF.
There's opportunities. So now we're here.

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Caution, whatever that means to you
is what you have to do it.

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Don't go moody what everybody else says. I know what it means to me,

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and I know how to do it
from here. Okay, but you

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need to understand it also. Course, you means having less at risk,

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having more in cash, looking for
opportunities, hedging accounts, selling calls,

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buy and puts, you name it. There's a whole bunch of different ways

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you can do it. If you
don't care about any of that, then

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just going to one of the discount
brokes are and buy index isn't hold them.

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It's gonna go up, it's gonna
go down. I know most people

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don't even want to hear that anymore. Oh, just hold through it.

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I hate that. Why do you
want to pay somebody something if they're just

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gonna say, oh, the markets
go up and then they go down,

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and then they go back up again. You have to take your age into

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consideration. That's easy to say when
you're thirty and forty and even fifty years

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old, but you're start getting in
your sixty seventy eighties. We don't think

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that way anymore. We think our
time frame is less. Yes, we

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want to take advantage of being more
aggressive in our rich side when the markets

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are really going down. But when
the markets are really going up and there's

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a lot of things going on that
you're not happy with, why expose yourself

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to so much risk? And so
when people say, oh, don't worry,

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it's just gonna go down there,
it's gonna come back up, you

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don't want that. How are you
gonna mitigate risk? If you're cautioned?

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What are you gonna do about it? If you're little bit cautious. There's

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a hundred things out there of why
you should be a little bit cautious when

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it does go down, and it
will go down, and we all know

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it's gonna go down it sometimes maybe
it's next year, maybe it's some years

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from none, who knows. Evaluations
mean a lot. And if you can't

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look at that and say this stock
is cheap, or this company that the

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markets are cheap and the good quality
turn companies to tweet are cheap, the

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what are you gonna do? They
keep talking about how the growth of the

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economy, the growth of the economy
right, well, doesn't that mean they

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aren't gonna come down and lower interest
rates Because the faster of the economy,

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the overheated of the economy, the
more inflation we have, they are not

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gonna lower interest rates, and they
do. It's a farce because of all

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they're trying to do is sparked the
spark interest in the markets to make people

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happy so they can go get people
selling, get and get capital gains so

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they have more money to give away
because there's no need to cut interest rates.

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Now. It's no different when the
markets were doing well and they kept

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low in interest rates and we had
nothing on interest rates, We had more

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less than one percent in interest rates, and they wouldn't raise them. They

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wouldn't raise interest rates going in the
election because they did not want to affect

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the election. Well, it's the
same thing. Why would they want to

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stimulate the economy and then hand it
to oos ever in next an economy that's

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overheated, where they had to start
coming back in and cut and raising rates

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again and make the markets go down
again. We hear about normalizing rates,

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but they have to be taken into
context. Normalizing rates, Yeah, we

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might have you know, like mortgages
for forever if you look out of them,

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sixty seven percent in the normal price. Okay, but that was when

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our home prices were like two point
fifty. Now, the average home price

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is what four hundred and let's face
most homes that you that most people want

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to look at and look at a
seven fifty to a million or more.

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That's the sweet spot. So now
that's six and a half or seven percent

240
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you get on a mortgage is so
much more of a payment. And believe

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me, you have not rut your
wages have not gone off that much in

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the last two years to afford the
extra fifteen hundred two thousand dollars it's going

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to cost you in a mortgage.
Rather than having at two and a half

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percent three percent, you have to
pay four percent more on a house that's

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million dollars is now forty thousand dollars
more. Most people have not had a

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forty thousand dollars raise. And even
though they did, that's a break even.

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That's a break even at best.
So when you listen to these pundits

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and they always trying to find out
tell you the reasons why, Wow,

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the market's going up even though interest
rates, even though it sho hot inflation,

250
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Well they're wrong because gets what the
markets turned over right after that?

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Smart money, strong money, institutional
money is selling in to the retail investor.

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They're reducing their positions as the retail
investors want to buy these hot stocks

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and make them go higher. We
have inflation, Our wages have gone up.

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That's not going back. How are
we going to get inflation down to

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two percent? Then they say,
well, having supply chain problems? Whose

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fault is that? Because our Congress
doesn't do anything but man, when they

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want to move, they can move
TikTok. They want to ban cantire,

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they want to get rid of TikTok. Man. That thing is flown through

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are Congress because they think by using
well, China, China, China,

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people are gonna get on board with
that and forget everything else. Yet they

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forget we care about the damn border. And now everyone's caring about the border

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because the border isn't just at the
border anymore. The border is in New

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York, New Jersey, Chicago,
Philadelphia, they've all gone to the Blue

264
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States and they are having a fit
DC. So now the border becomes a

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problem. But the border wasn't a
problem when it was just there. But

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they can't get their act together and
do something that is good for everybody,

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and they blame each other. If
Biden wanted to do something. He should

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have shut down the wall two years
ago. You didn't even have to change

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anything of Trump's ideas proposals right away. Within the first month, they got

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rid of everything Trump did and boom, the board has opened up. And

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now they think they have all these
people that can go vote. And I'll

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tell you right now, with that
said, with the election coming up,

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if the Republicans are not going to
act be smart enough and understand what the

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Democrats are going to do, shame
on them, because you know there's going

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to be somehow, some way they're
going to come up with some idea to

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be able to get voting in They
talk about suppression of voting. The illegal

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immigrants that come across the border that
do not do it legally are not allowed

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to vote period. They're not even
allowed to be here. But in certain

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areas, certain cities, they get
to vote. What is this? Why

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do they get to change the rules
and the laws? Why are they allowed?

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Did not have to stick to it, but boy, when they want

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to stick it to the Republicans,
they'll stick to the laws. We got

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a serious problem that needs to be
fixed. In the meantime, with the

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higher interst rates, where we are. Take advantage of it. It's nice

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to see money markets over five percent. It's nice to see bonds paying over

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five percent. Four and a half
it's a government bonds paying four and a

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00:23:26.440 --> 00:23:32.920
half percent. This is great stuff. Take advantage of it. But somehow,

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some way understand it. Sometime when
interust rates come down, how are

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you going to take advantage of that? You got to be understanding the income

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market, the fixed income market,
along with the equity markets. How the

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allocation process everything. It's a portfolio, it's an allocation. It's a diversified

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scenario. You need people working for
you doing that. There's a lot of

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proper there's a lot of opportunities,
not just now, but over time.

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You have to have a plan.
We have a plan. You need to

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00:24:03.559 --> 00:24:07.759
have a plan. We can help
you with that plan. You don't already

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have a plan. To put it
all together with your feelings, your ideas,

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your risk tolerance of what's going on, and try to merge your plan

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off plan of what's going on,
and we get we help each other.

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We'll be right back. It's the
Money Matter Show. I am so happy

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you're listening. Welcome back, everybody. This is the Money Matter Show with

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Dean Greenberg. We got Todd who's
running a marathon this weekend. Hopefully he's

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doing well today on Sunday, well, hopefully he's done by now or no,

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he probably he's about an hour left. Yeah, he's making his time.

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And then we got Dave going to
birthday parties in California for his grandkids.

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So you've got Sebastian okay, and
Dylan and myself. So let's see

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how good we could do. Guys. Yeah, well, I mean we

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got us, and then we got
Johnson Brothers is coming on, Jonathan Sibilly

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is coming on. So we've got
the whole staff that's coming in, the

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whole team. We'll be talking today. We're gonna talk to you. And

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the reason we're doing this we're getting
a little precursor to our April second event.

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Though you've heard we've been talking about
the radio. We're all three firms

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are gonna be talking. We're gonna
have James D. Harris then now morning

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show hosts on seven ninety. We're
gonna be talking about the current environment of

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the market, our outlook. I'm
gonna be talking about tax planning with the

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00:25:18.440 --> 00:25:22.880
Johnson Brothers. We're gonna be talking
about estate planning with Jonathan and then Jay

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00:25:22.920 --> 00:25:25.799
and Ts Harris is gonna be talking
about politics and now look of his market

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00:25:25.839 --> 00:25:29.240
and his really introducing him too.
He's new. I mean Garrett was at

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00:25:29.240 --> 00:25:32.400
the Helm for what how long?
Oh Garre it's still at the four o'clock

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00:25:32.480 --> 00:25:34.240
hill he is. I'm saying the
morning. Hell, everybody knew hi from

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the morning. Now you got James
D. Harris introduced him. Get everybody,

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and we'll be talking about the market
outlook kind of what we're thinking going

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into the political season. Yeah,
and we're gonna talk about the scenarios also

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who gets in and what can happen
and how you can protect yourself and you

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know, we're gonna talk a lot
about mitigating whisk But the best part is

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00:25:56.000 --> 00:25:57.160
is you're gonna get to answer a
lot of questions. We're gonna have a

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00:25:57.160 --> 00:26:02.960
panel and we can answer your questions
because a lot of people, you know,

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00:26:03.079 --> 00:26:06.839
have questions. And we'll also feed
you some lunch. Yeah. So

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00:26:06.880 --> 00:26:10.279
it's twelve to three, twelve pm
to three pm at Lapoloma Country Club on

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the Gulf Side on April second.
It's fillingdump fast too, so there is

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a limit. We're going to shut
it off at about one hundred and fifty

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people. I think we can get
that many people in there, and we

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00:26:22.119 --> 00:26:25.799
got well over one hundred people right
now. So if you want to get

333
00:26:25.799 --> 00:26:30.119
in, you need to get it
on the website. We'll call us run

334
00:26:30.119 --> 00:26:33.559
over to Greenbrik Financial websites and log
in. It's going to be a set

335
00:26:33.640 --> 00:26:38.720
up through a third party event rights. But yeah, it's pretty self explanatory.

336
00:26:38.839 --> 00:26:41.759
Yep. And I mean, or
you could call us at five two

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00:26:41.839 --> 00:26:45.079
zero five four four four nine zero
nine. But all right, we're back

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00:26:45.079 --> 00:26:48.440
to the markets. Yeah, yeah, flat this week, pretty much flat

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for the month so far. Not
bad for the year, I mean,

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not surprising we had the first two
months. We're pretty good. And now

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we're cautious. We're cautious on the
market. These these seven socks that really

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00:27:02.319 --> 00:27:04.640
weighing up the just struggling a little
bit more right now. I mean the

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00:27:04.720 --> 00:27:08.160
video is pulled back ten percent and
you don't even realize it. Yeah,

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well, because it's still up for
the year. I mean, well,

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00:27:10.839 --> 00:27:12.720
when you're looking at the week,
the equal way to s P five hundred

346
00:27:12.759 --> 00:27:15.319
was down a percent, and that
s P five hundred was down point one,

347
00:27:15.599 --> 00:27:18.960
so as a broad market. They
don't have the greatest week, right

348
00:27:19.200 --> 00:27:22.880
tech socks, I mean in video
kind of had a flat week. It

349
00:27:22.960 --> 00:27:26.160
held them in there even though they
got hit. There's different companies doing well

350
00:27:26.279 --> 00:27:30.960
still yet Tesla just getting destroyed.
Yeah, no, I don't even you

351
00:27:32.000 --> 00:27:34.920
know what Tesla to me was always
I never looked at a magnificent seven.

352
00:27:34.960 --> 00:27:37.759
I don't know what people did.
I like, I like crowdstriking because they

353
00:27:37.799 --> 00:27:41.880
were moving the same way and videos
moving I know, but it was just

354
00:27:41.960 --> 00:27:45.839
like, you know, the writing
was on the wall with EV. The

355
00:27:45.880 --> 00:27:51.240
government's telling the EV, but the
car companies are going, we're pulling back

356
00:27:51.920 --> 00:27:55.119
common sense. I don't think a
lot of people use common sense when they're

357
00:27:55.160 --> 00:27:59.160
looking at stuff and trying to figure
out way to go in the future.

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00:27:59.200 --> 00:28:02.880
The reason Tesla thought of that is
because it's like it's in this comparison in

359
00:28:03.000 --> 00:28:06.759
video, it was buying a far
way ahead of everybody in the EV market.

360
00:28:06.839 --> 00:28:08.240
Now they're not, though, and
that's why they're seeing a pullback.

361
00:28:08.559 --> 00:28:11.319
Same thing can happen to Invidia if
all of a sudden, these companies come

362
00:28:11.359 --> 00:28:15.960
out with the chip that's going to
compete with their best chip, and video

363
00:28:15.039 --> 00:28:18.200
is going to struggle and that will
happen someday. It will. I mean

364
00:28:18.279 --> 00:28:21.720
right now, there's no foreseeable future
for that because the video just keeps coming

365
00:28:21.759 --> 00:28:25.119
out of the chip that's just better
than everybody else's, but it doesn't last

366
00:28:25.160 --> 00:28:27.440
forever. The problem with in the
video right now, people are trying to

367
00:28:27.480 --> 00:28:30.680
say, where is it in two
or three years? The evaluation of the

368
00:28:30.680 --> 00:28:33.799
stock is out two three years from
now. I don't think it is.

369
00:28:33.880 --> 00:28:36.599
I still think it's got upside.
I think it could get two over a

370
00:28:36.680 --> 00:28:40.039
thousand, and if it does a
goodby go to twelve hundred because I think

371
00:28:40.039 --> 00:28:41.359
of what they have in the pipeline
on what's going on. But that could

372
00:28:41.440 --> 00:28:45.440
change at any time with somebody else
coming in. And that is why you

373
00:28:45.519 --> 00:28:51.160
trim back your positions. When it
gets going this fast, that fire and

374
00:28:51.160 --> 00:28:55.160
then if it pulls back, you
can add back to that position, just

375
00:28:55.200 --> 00:28:57.200
like Tesla if it comes back down
into the one twenty five ranges. So

376
00:28:57.599 --> 00:29:02.599
I'd buy Tessel again, yeah,
I mean, that's a better evaluation for

377
00:29:02.640 --> 00:29:04.359
it. We always thought it was
overvalued. I saw I saw some news

378
00:29:04.400 --> 00:29:08.240
come out and Video and Micron are
not merging or anything like that. But

379
00:29:08.240 --> 00:29:12.519
they're gonna start buying stuff from Micron
that could boost the stock up a little

380
00:29:12.519 --> 00:29:15.599
bit. We'll see. I think
that's common. I think a lot of

381
00:29:15.599 --> 00:29:18.839
companies buy certain things from different companies. It's kind of just under the radar.

382
00:29:18.880 --> 00:29:22.119
We don't see it. Yeah,
it's more common than we think.

383
00:29:22.200 --> 00:29:25.599
But AI is what everybody's talking about. And it's kind of taking a pause

384
00:29:25.680 --> 00:29:29.160
right now. I don't know.
I saw this video of open AI there

385
00:29:29.160 --> 00:29:32.039
I'm talking about the AI stocks.
Oh oh yeah, I'm kind of taking

386
00:29:32.079 --> 00:29:34.359
a pause. But I believe AI's
here for the next thwee of five years,

387
00:29:34.839 --> 00:29:37.400
all right, and there's gonna be
new things that come out and different

388
00:29:37.440 --> 00:29:41.599
ideas. So you know, we'll
try to work and try to find some

389
00:29:41.680 --> 00:29:45.920
companies that are pretty much supply is
to these big companies that they need and

390
00:29:47.440 --> 00:29:49.880
all. Yeah, and that's not
easy to do, and and and obviously

391
00:29:49.920 --> 00:29:53.640
a little bit more whisky. But
you know, when these stocks running up

392
00:29:53.680 --> 00:29:56.160
so much, look for the providers. And that was always the case,

393
00:29:56.519 --> 00:30:02.839
like what I remember with the automobile
companies, for GM, who was supplying

394
00:30:02.880 --> 00:30:06.519
them the rebel who was supplying them
the metal, right, so supplying them

395
00:30:06.759 --> 00:30:10.880
the seats and the horns and the
electronics. It's not talked about companies I

396
00:30:10.920 --> 00:30:14.160
would really do well when they start
doing that and go for in video or

397
00:30:14.200 --> 00:30:18.319
in apples ultimately to be vertically integrated. So yeah, find those producers,

398
00:30:18.359 --> 00:30:22.519
find those suppliers, and eventually they
will perform as idea too, like I

399
00:30:22.519 --> 00:30:23.519
mean, Apple does a time because
they have so much cash on hand.

400
00:30:23.599 --> 00:30:27.359
Is you find a company that's supplying
product for Apple that they need to build

401
00:30:27.400 --> 00:30:32.000
ivepon to build the new VR stuff, they'll eventually probably buy them at a

402
00:30:32.039 --> 00:30:33.319
premium. And what's that going to
do. It's just gonna increase their margin

403
00:30:33.359 --> 00:30:37.039
on the products exactly. But it's
going to help you if you're in that

404
00:30:37.079 --> 00:30:38.640
stock. It'll help you because you'll
sell out of premium obviously, or you

405
00:30:38.640 --> 00:30:41.799
buy some Apple stock with it.
And we remember buying individual stocks are always

406
00:30:41.880 --> 00:30:47.960
risky. Buy into an industry like
AI technology is always risky. Everything you

407
00:30:48.039 --> 00:30:51.640
do has the risk. You got
to understand those risks before you even invest

408
00:30:51.720 --> 00:30:53.799
in it. And how are you
going to allocate it? Most people do

409
00:30:53.799 --> 00:30:56.480
not know how to do it.
They love it when things are going up

410
00:30:56.519 --> 00:31:00.880
and they just buy into and it
goes. But selling is very difficult for

411
00:31:00.920 --> 00:31:03.319
people because it's the idea that they
have to sell one hundred percent. We

412
00:31:03.359 --> 00:31:06.680
talk about that all the time,
Like you were just saying, trim back.

413
00:31:07.240 --> 00:31:08.839
If you have a if you want
a five percent position in a video

414
00:31:08.880 --> 00:31:11.759
and it's grown to a fifteen percent
position since you first bought it, sell

415
00:31:11.799 --> 00:31:15.079
ten percent as ten percent profit,
and then you just back to your original

416
00:31:15.119 --> 00:31:18.079
thing and you got ten percent worth
of cash and profit. It's just hard

417
00:31:18.119 --> 00:31:21.960
to because you're thinking, Okay,
what if I sell that it's gonna go

418
00:31:22.440 --> 00:31:23.640
to two thousand and three thousand.
You don't know what it could go to,

419
00:31:25.279 --> 00:31:26.680
but it's not bad to take profit
and then you're at least happy.

420
00:31:27.880 --> 00:31:30.960
You're never gonna be You're never gonna
hit it perfectly. It's just impossible,

421
00:31:32.000 --> 00:31:34.279
all right. So some of the
things that happened this week's CPIPPI numbers,

422
00:31:34.279 --> 00:31:40.440
well, Hi, that means it's
inflation some reason. Somehow they keep talking

423
00:31:40.480 --> 00:31:44.359
about ways lowing interest rates. Don't
understand it, and I don't understand how

424
00:31:44.359 --> 00:31:47.240
they would do it. And if
it doesn't get done before the summer,

425
00:31:47.440 --> 00:31:49.839
which I don't understand how that's gonna
happen. Next week, the Federal Reserve

426
00:31:49.920 --> 00:31:55.440
gets to talk and you know they
have their meeting. They're not gonna lower

427
00:31:55.559 --> 00:31:59.319
rates. They might even say they
might have to put all that on hold.

428
00:32:00.039 --> 00:32:01.720
Will that affect the markets and not? I don't know. What I

429
00:32:01.799 --> 00:32:06.440
do know is earnings in certain companies
have been very good. This will be

430
00:32:06.480 --> 00:32:09.559
a stock pickers type market. We're
going to stall for a little bit.

431
00:32:09.839 --> 00:32:15.960
It just makes sense. On how
fast and how how quickly everything is risen.

432
00:32:15.480 --> 00:32:21.200
You got to be spot you got
to be patient, and you gotta

433
00:32:21.240 --> 00:32:27.440
be okay being cautious until things come
to what I call evaluations that that are

434
00:32:27.480 --> 00:32:30.240
really good. Because if this thing
turns over and goes way down, and

435
00:32:30.279 --> 00:32:34.319
I still think that's more down the
road than it is this year because of

436
00:32:34.319 --> 00:32:37.960
an election, you want cash to
be able to buy. Maybe you have

437
00:32:37.960 --> 00:32:39.440
bold statements, but I would almost
take the other side of the coin and

438
00:32:39.480 --> 00:32:42.720
say the FED could come out and
say they're going to raise rates. So

439
00:32:42.720 --> 00:32:45.640
we got reinflationary pressure all across the
board you have. I was looking at

440
00:32:45.680 --> 00:32:53.160
FCX, which is Freeport mcmooran copper
producer. They're up fifteen in the last

441
00:32:53.559 --> 00:32:57.720
two weeks. It's just insane.
Oil is at what they closed that a

442
00:32:58.480 --> 00:33:01.960
close it above eighty for the first
time since last October. October. Yeah,

443
00:33:02.079 --> 00:33:07.079
I mean to be fair. Pal
has never been that happy about people

444
00:33:07.079 --> 00:33:09.640
saying we're gonna cut right, They're
gonna cut rights. He keeps every time

445
00:33:09.680 --> 00:33:13.079
he talks, he's saying, we
might, we might, We don't know

446
00:33:13.119 --> 00:33:15.920
when when it could be down the
road. He's not as fast as everybody's

447
00:33:15.920 --> 00:33:19.759
saying. Is that the on the
White House is that the pressure from keeping

448
00:33:19.799 --> 00:33:22.119
buyed in? Is that pressure from
the people with the big money that want,

449
00:33:22.160 --> 00:33:24.799
you know, that want the markets
to keep going. That's the thing

450
00:33:24.839 --> 00:33:29.759
we don't know. So you can
only look at money flows, and right

451
00:33:29.799 --> 00:33:35.319
now the money flows are slowing.
And when you have a slowing of money

452
00:33:35.319 --> 00:33:38.279
flows, then there's nobody there to
support the stock price. And then the

453
00:33:38.279 --> 00:33:40.920
people that are buying the stock,
they, you know, they look at

454
00:33:40.920 --> 00:33:44.039
it and go, well, what
do I care? I can if I

455
00:33:44.039 --> 00:33:45.960
can get a stock twenty dollars cheap, I'll just walk and get out of

456
00:33:46.000 --> 00:33:49.160
the way right now. I don't
have to support it. Yeah, the

457
00:33:49.279 --> 00:33:52.359
boom drops and then they buy it. Speaking of my money flows, you're

458
00:33:52.400 --> 00:33:57.640
pretty cool stat here. Active managers
versus us equities active managers increased exposure to

459
00:33:57.799 --> 00:34:01.319
US equities to the highest level since
No Number of twenty twenty one. Is

460
00:34:01.359 --> 00:34:06.880
that money being pulled from the money
market funds? No clue, I mean

461
00:34:06.920 --> 00:34:08.880
it could be, and other people
will start might I mean, we're looking

462
00:34:08.880 --> 00:34:13.079
for opportunities. We found some opportunities
in certain stocks, but also took some

463
00:34:13.079 --> 00:34:20.840
profit from other Say that again one
moment, just say what you said.

464
00:34:21.519 --> 00:34:25.360
Active managers increased exposure to US equities
to the highest level since November of twenty

465
00:34:25.360 --> 00:34:30.920
twenty one. Meaning everybody's pounding the
market. We're investing, Yeah, just

466
00:34:30.039 --> 00:34:34.239
the same way they're investing, right, absolutely, Yeah, it's just saying,

467
00:34:34.280 --> 00:34:37.519
and I mean, what happened in
twenty twenty one. You could hit

468
00:34:37.559 --> 00:34:40.119
any stock and that stock went up, But then twenty twenty two happened and

469
00:34:40.159 --> 00:34:44.039
it dropped fast and it dropped hard. So remember how it works. Though

470
00:34:44.079 --> 00:34:47.440
mutual funds right four one K plans
are usually mutual funds. Money flows into

471
00:34:47.480 --> 00:34:52.440
the mutual funds. Fund managers must
put that most of that money to work.

472
00:34:52.519 --> 00:34:54.320
Even if they want to be cautious, it's very hard for them to

473
00:34:54.360 --> 00:35:00.320
do that because by by perspectives,
they have to be invested of a short

474
00:35:00.360 --> 00:35:01.679
period of time. They can have
cash, but only for a short period

475
00:35:01.719 --> 00:35:06.079
of time, and they have to
invest it. When those investors get scared

476
00:35:06.079 --> 00:35:07.599
and they all want a liquidate,
guess what them fund minders, she has

477
00:35:07.639 --> 00:35:12.960
to do sell. So it helps
move it up and it also helps it

478
00:35:13.079 --> 00:35:19.000
move it down. And you got
to be cognizant of money flows. Yeah,

479
00:35:19.000 --> 00:35:20.920
and we're coming up on a break, but if you want to touch

480
00:35:20.960 --> 00:35:22.920
on that about mutual funds when they
got when the fund manager has to sell

481
00:35:22.920 --> 00:35:27.880
their stuff, that you could come
into with tax issues, that isn't really

482
00:35:27.880 --> 00:35:30.360
talked about. So we'll talk about
that after the break. We got all

483
00:35:30.440 --> 00:35:32.400
right, We'll be right back.
Remember April second. You want more information,

484
00:35:32.519 --> 00:35:36.840
either call us or go to our
website Greenberg Financial dot com. And

485
00:35:36.920 --> 00:35:38.920
if you want to come, you
better get signed up because the seats are

486
00:35:38.960 --> 00:35:43.039
going fast. I know everyone says
that, but I really am telling you

487
00:35:43.079 --> 00:35:45.760
the truth. The seats are going
fast. I'll be back. Thank you

488
00:35:45.800 --> 00:35:50.280
for listening. It's the Money Matter
Show. Welcome back, everybody. It's

489
00:35:50.280 --> 00:35:53.360
the Money About a show. As
you know, we have a April second

490
00:35:53.599 --> 00:35:58.320
symposium coming up, which I know
there's a lot of people that have already

491
00:35:58.360 --> 00:36:02.920
registered, which is great. And
one of our team partners here, mister

492
00:36:04.079 --> 00:36:09.159
Edward of Edward Law from will also
be there and we're going to be talking

493
00:36:09.239 --> 00:36:16.320
on how to do stay planning and
strategies and uh saving on taxes and why

494
00:36:16.360 --> 00:36:21.000
is that important? Well, you
know it's important for everybody. Why because

495
00:36:21.079 --> 00:36:24.920
you know it's it's all encompassing for
your life and after and when things go

496
00:36:25.000 --> 00:36:29.239
to your beneficiarias, how do we
streamline that, how do we save on

497
00:36:29.360 --> 00:36:32.280
taxes? How do we keep the
government out of your hair? Uh,

498
00:36:32.320 --> 00:36:37.280
whether you're living or after you pass. So you know, I want everybody

499
00:36:37.280 --> 00:36:39.960
who's going to be there, and
I hopefully everybody listening will be there.

500
00:36:40.199 --> 00:36:46.039
Well, that's impossible to come with
the questions if you have them, you

501
00:36:46.079 --> 00:36:50.000
know, ask me to my face, you know what, what do you

502
00:36:50.000 --> 00:36:53.679
think about the situation. I can't
technically give you legal advice, but I'll

503
00:36:53.679 --> 00:36:57.800
answer the best I can. You'll
answer the questions. I'll answer the questions.

504
00:36:57.840 --> 00:37:00.480
I'll answer the questions. All right, we'll be a close symposium.

505
00:37:00.599 --> 00:37:05.199
Right it is, you can believe
it or not. Because they are coming,

506
00:37:05.440 --> 00:37:07.760
they're coming that we're allowed to talk
to them. Sure, because they

507
00:37:07.920 --> 00:37:12.920
they have chosen to come to our
place and to ask us questions, and

508
00:37:12.920 --> 00:37:15.519
that's what we're all about. That's
what I don't want anyone on our team

509
00:37:15.519 --> 00:37:20.079
that's not going to be straightforward,
honest and being able to tell people you

510
00:37:20.119 --> 00:37:22.880
know, they have the answer,
they don't have the answer. You know

511
00:37:22.000 --> 00:37:24.880
the answer. We'll find the answer. But you know, in your scenario,

512
00:37:25.519 --> 00:37:28.280
you know why we got together with
you is, you know, we

513
00:37:28.320 --> 00:37:30.320
do the financial plan and stuff like
that, and that's great, that sets

514
00:37:30.320 --> 00:37:35.159
people up, they need to have
it. But part of our financial plan

515
00:37:35.440 --> 00:37:38.159
is an estate plan. Why,
well, things change and there's a very

516
00:37:38.199 --> 00:37:42.840
important change coming down the road here
that people got to be familiar with,

517
00:37:43.119 --> 00:37:46.039
which is the change in taxaws.
Yeah, yeah, well or the sunset

518
00:37:46.079 --> 00:37:50.599
not to change the sunset sunset if
they don't approve it. So if you

519
00:37:50.639 --> 00:37:54.079
know, Trump doesn't get in,
there's a good chance the sunset will set.

520
00:37:54.440 --> 00:38:00.480
There's a possibility. So and you
know we got to be prepare for

521
00:38:00.519 --> 00:38:05.920
that. A lot more people will
be subject to the estate tax if there

522
00:38:06.000 --> 00:38:07.760
is that sunset, and not even
that, not even the estate tax.

523
00:38:07.840 --> 00:38:10.760
But you know, things that touch
me are near and dear to my heart

524
00:38:10.800 --> 00:38:14.679
because I'm a business owner, you
know. I don't know if I brought

525
00:38:14.679 --> 00:38:16.480
it up before, but there's the
one ninety nine eight deduction. As a

526
00:38:16.519 --> 00:38:22.079
business owner, you get a twenty
percent haircut on your net income, you

527
00:38:22.119 --> 00:38:25.239
know, and in twenty twenty six
that's probably gonna go away. Well,

528
00:38:25.400 --> 00:38:30.559
yeah, so talk more about the
sunset for people who are wondering what's going

529
00:38:30.599 --> 00:38:31.679
on. Have a question for you. I think we talked about a little

530
00:38:31.719 --> 00:38:35.679
bit before on the previous show,
but what percentage of people have to worry

531
00:38:35.679 --> 00:38:39.440
about the estate tax? It was
something so minimal. Well, currently it

532
00:38:39.519 --> 00:38:45.480
is point zero zero one percent,
because it's probably twelve million six like twelve

533
00:38:45.519 --> 00:38:47.679
point six million, No, it's
more than that. It's like thirty,

534
00:38:49.000 --> 00:38:52.840
it's in the thirteens. And when
they drop it down, well the talk

535
00:38:52.960 --> 00:38:59.639
is five five. So but whether
or not, you know who's in Congress,

536
00:38:59.800 --> 00:39:02.800
I think that it's gonna probably stick
around. But don't quote me on

537
00:39:02.800 --> 00:39:06.000
that, because we don't know what's
gonna happen. Well, you know,

538
00:39:06.079 --> 00:39:12.760
it's it's whoever's in power. You
know who's looking for votes, right,

539
00:39:13.800 --> 00:39:15.840
you know who's usually what it comes
down to, exactly, you know who's

540
00:39:15.840 --> 00:39:19.760
the biggest donors, right, you
know, the moment does come to and

541
00:39:19.800 --> 00:39:22.679
then when is that sunset again?
Sunsets? Sunsets twenty twenty six, you

542
00:39:22.679 --> 00:39:28.239
know, January first. So basically
what happened was back in twenty ten when

543
00:39:28.239 --> 00:39:31.840
they did all those haircuts, haircuts, tax cuts. Uh, there was

544
00:39:32.039 --> 00:39:37.159
a ten year stat limitation on it. So all of the tax cuts will

545
00:39:37.159 --> 00:39:40.559
go away after ten years. Within
not all the tax cuts, just the

546
00:39:42.000 --> 00:39:45.800
just the ones that will affect everybody
probably listening to this, you know mom

547
00:39:45.840 --> 00:39:49.800
and dad, you know, aunts
and uncles. Uh. The ones that

548
00:39:49.840 --> 00:39:52.840
stayed permanent were the corporate tax cuts. Yeah, so of court, all

549
00:39:52.880 --> 00:39:55.400
right, so then the corporate tax
cuts are going to stay from what happens

550
00:39:55.400 --> 00:39:59.880
if trumps in or they decide their
Congress acides to extend it, they have

551
00:39:59.880 --> 00:40:02.280
to do another ten years or is
it just whatever they decided to do.

552
00:40:02.400 --> 00:40:07.199
It's whatever they do whatever that.
You know, we've seen sunset provisions come

553
00:40:07.239 --> 00:40:12.039
along before and they extended it,
and then we've seen sunset provisions on certain

554
00:40:12.119 --> 00:40:15.639
laws and they just let it lapse
and they go back to normal. I'll

555
00:40:15.639 --> 00:40:17.079
tell you what. It's going to
keep a lot of tax people in business.

556
00:40:17.079 --> 00:40:21.880
If it does change because now we
have it's a complete alteration of the

557
00:40:21.920 --> 00:40:25.039
tax code again and a lot more
work. Things will slow down. Like

558
00:40:25.079 --> 00:40:28.559
I said, I think that they're
going to extend it, but don't quote

559
00:40:28.559 --> 00:40:30.639
me. Yeah you never know.
I mean it's like you said too,

560
00:40:30.639 --> 00:40:32.559
it's all about votes. Whatever they
need to get for votes at that time,

561
00:40:32.880 --> 00:40:36.920
they're going to push through. Well, what else, what's the main

562
00:40:37.000 --> 00:40:38.320
thing that you've been seeing right now
with the state planning? Is there anything

563
00:40:38.360 --> 00:40:43.320
specific going on? Are people a
lot of people thinking about that sunset or

564
00:40:43.360 --> 00:40:45.320
is that more if you tell them, you know, not a lot of

565
00:40:45.320 --> 00:40:49.320
people know about it, which is
something that was built into the tax code.

566
00:40:49.679 --> 00:40:52.440
Like I said, there was a
tenure. We all all the tax

567
00:40:52.480 --> 00:40:55.960
people we knew about it, and
ten years ago we figured it's you know,

568
00:40:57.400 --> 00:40:59.960
it's so far down the road,
let's not worry about it now.

569
00:41:00.639 --> 00:41:04.440
But now it's coming, and it's
coming fast and probably gotta get ready for

570
00:41:04.480 --> 00:41:07.440
it. That'd be definitely got to
be prepared. You know. One of

571
00:41:07.440 --> 00:41:10.760
the things that uh, you know
I'm gonna have to do is, uh

572
00:41:12.039 --> 00:41:15.719
see what exactly that sunset provision covers? Right? Uh, you know,

573
00:41:15.840 --> 00:41:19.480
what exactly is going to go away. We already know, like you said,

574
00:41:19.480 --> 00:41:22.559
the corporate tax cuts, those are
permanent, but which which ones is

575
00:41:22.599 --> 00:41:25.840
it? Everything? Is it piecemealed? You know? I think with the

576
00:41:25.840 --> 00:41:30.719
small business that one ninety nine deduction, which is very beneficial to the small

577
00:41:30.760 --> 00:41:32.760
business owner. I think that they
may extend that because you know, that's

578
00:41:32.800 --> 00:41:37.559
just if you're going to keep corporate
tax cuts permanent, why not make that

579
00:41:37.639 --> 00:41:39.920
permanent as well with the small businesses. You mean for the small businesses correctly,

580
00:41:40.199 --> 00:41:43.280
absolutely, yeah, exactly. I
mean if they're looking out for the

581
00:41:43.320 --> 00:41:45.519
small business like they said they were
in twenty twenty when they shut everybody down

582
00:41:45.599 --> 00:41:49.039
and then got them out at the
corporations for making a bunch of money.

583
00:41:49.159 --> 00:41:52.159
Yeah, well yeah, there's I
think that they still have record profits.

584
00:41:52.360 --> 00:41:58.079
And you know that that twenty percent
that's huge. It is a big Yeah,

585
00:41:58.079 --> 00:42:00.760
that's a huge addstion. It's big, and it doesn't affect everybody.

586
00:42:00.800 --> 00:42:02.519
You know, attorneys, we don't
get the we don't get the best of

587
00:42:02.519 --> 00:42:07.960
the best, where we fall under
a specific category. That that twenty percent

588
00:42:07.079 --> 00:42:10.159
is limited up to a certain amount
of money. Fine, I understand why,

589
00:42:10.679 --> 00:42:15.079
but everybody else it's I think it's
doctors, lawyers, I believe CPAs

590
00:42:15.320 --> 00:42:21.159
engineers, they they don't qualify for
the one ninety nine deduction deduction over a

591
00:42:21.159 --> 00:42:24.559
certain amount. Basically everybody else is
everybody else does every other small business?

592
00:42:24.639 --> 00:42:29.559
Why is it just because they make
more money or I believe it hit Those

593
00:42:29.599 --> 00:42:32.280
types of jobs don't really enable that
multiplier effect that we've talked about as in

594
00:42:34.480 --> 00:42:37.679
job creation elsewhere. Well, the
thought process, if you look at the

595
00:42:37.760 --> 00:42:40.000
legislation behind the one ninety nine eight
deduction, had to do with skilled and

596
00:42:40.079 --> 00:42:46.599
unskilled labor, and they wanted you
to basically hire more unskilled labor. And

597
00:42:46.920 --> 00:42:50.199
there is a formula to it,
right, you know, you have to

598
00:42:50.239 --> 00:42:52.960
have a certain amount of payroll once
you get to a certain amount. But

599
00:42:53.320 --> 00:43:00.679
since lawyers and doctors and engineers tend
to always find jobs and they're considered skilled

600
00:43:00.719 --> 00:43:05.840
labor, that they don't need that
benefit as much, right whereas you know

601
00:43:06.159 --> 00:43:09.400
engineer you know, not engineers.
But let's say construction Now they're hiring guys

602
00:43:09.679 --> 00:43:13.360
you know, helped put up the
walls. Well, obviously we need that,

603
00:43:13.519 --> 00:43:19.559
especially because you know incentive reasoning behind
that. Correct, I'm a lot

604
00:43:19.599 --> 00:43:22.199
more incentivized to go work at construction
job if I'm going to get a twenty

605
00:43:22.239 --> 00:43:29.159
percent tax cuts right rather than become
another exactly, So you know, it's

606
00:43:29.199 --> 00:43:34.119
it's important. It incentivizes people who
who hire unskilled labor to hire more people.

607
00:43:34.719 --> 00:43:37.639
And that's and that's what the one
ninety ninety deduction is. And uh,

608
00:43:37.800 --> 00:43:40.519
you know, call your congressman,
call your local representative, you know,

609
00:43:40.559 --> 00:43:44.559
have them push that through. What
happens when you can't reach them.

610
00:43:44.559 --> 00:43:45.800
I have had a client talk to
me a little bit trying to reach our

611
00:43:45.800 --> 00:43:49.800
congressman. They can't get a hold
of them. You probably won't, Yeah,

612
00:43:49.800 --> 00:43:52.159
you probably wont to, probably stating
the calls or you just email.

613
00:43:52.280 --> 00:43:53.920
Well, I just went to a
benefit a couple of days ago and I

614
00:43:53.960 --> 00:43:58.880
saw ours, our local rep.
Yeah, and uh, you know he's

615
00:43:59.239 --> 00:44:01.079
he's here in two Son quite often
and he's and he tends to go to

616
00:44:01.079 --> 00:44:05.159
a lot of the events. So
maybe you can get his ear there.

617
00:44:05.239 --> 00:44:07.679
And I know that he probably want
to push for it because he is Republican.

618
00:44:08.280 --> 00:44:12.880
So yeah, well that's good.
I mean that's good that he's around

619
00:44:12.920 --> 00:44:15.400
the community too. So I mean, going through right now with taxis and

620
00:44:15.400 --> 00:44:19.559
stuff, you've seen anything specific that
you're trying to get people to finish up

621
00:44:19.599 --> 00:44:23.079
before the before April fifteenth with any
of this, or you just ongoing throughout

622
00:44:23.119 --> 00:44:25.840
the year. You know, I
found that, you know, I know,

623
00:44:25.920 --> 00:44:29.719
there was a big injection of money
into the IRS, and I've found

624
00:44:29.760 --> 00:44:31.800
it's very easy to get ahold of
the IRS nowadays. It really is.

625
00:44:34.639 --> 00:44:37.960
But I've also seen the caveats for
that where I have a client that,

626
00:44:38.440 --> 00:44:44.079
you know, he he's starting to
get notices for tax efficiencies that he didn't

627
00:44:44.119 --> 00:44:46.800
get, that he never received,
which are about ten years old. Now

628
00:44:49.400 --> 00:44:52.400
I'm starting to understand why I'm talking
about ten years old. How could they

629
00:44:52.440 --> 00:44:54.440
even go back ten years? So
there's a seven year thing we're not allowed

630
00:44:54.480 --> 00:45:01.519
to Okay, so you have three
years if the IRS has three years to

631
00:45:01.639 --> 00:45:07.480
challenge your tax turn after you file
it unless there was a very negligent underreporting

632
00:45:07.480 --> 00:45:12.360
of your income. So what they
did is they gave him a notice back

633
00:45:12.400 --> 00:45:17.039
in twenty thirteen. In twenty sixteen, he received the notice which was about

634
00:45:17.039 --> 00:45:22.400
the benchmark of the statue limitations.
Now he has ten years now, no,

635
00:45:22.480 --> 00:45:24.480
the IRS has ten years to collect
on that debt. Well, we're

636
00:45:24.480 --> 00:45:28.280
coming around to that ten year mark, and that that one hundred and twenty

637
00:45:28.280 --> 00:45:30.079
thousand dollars tax liability is going to
fall off. This guy's just hoping to

638
00:45:30.079 --> 00:45:32.239
god they don't come here in the
next few months. Well, I kind

639
00:45:32.239 --> 00:45:35.440
of joked around. I was like, you're lucky that you know, when

640
00:45:35.480 --> 00:45:38.679
those tax notices came around, there
was Republicans in office because you know,

641
00:45:38.760 --> 00:45:43.159
the IRS is underfunded. They can't
collect the money. And now he's gonna

642
00:45:43.199 --> 00:45:45.639
and now he's going to get away
without having to pay one hundred and twenty

643
00:45:45.679 --> 00:45:49.679
thousand dollars in taxes. He's going
to get away with it, Yeah,

644
00:45:50.440 --> 00:45:53.400
because he's almost tension the IRS.
So he was he actually owed it and

645
00:45:53.480 --> 00:45:58.400
just figured out they wouldn't come after
him. Well exactly, and they have

646
00:45:58.480 --> 00:46:00.559
ten years to collect. They put
a bunch of lean on his house,

647
00:46:00.559 --> 00:46:01.880
and those leans are going to fall
off after a ten year mark. Now

648
00:46:01.920 --> 00:46:06.679
I'm not saying don't pay the I
R S because they will garnish your wages.

649
00:46:06.719 --> 00:46:08.760
But they didn't do it because they
were underfunded. But now they're funded.

650
00:46:08.800 --> 00:46:12.159
He's starting to get notices and that's
why he reached out to me.

651
00:46:12.239 --> 00:46:15.440
Well, and in those scenarios,
that's not fair. If someone knows the

652
00:46:15.440 --> 00:46:19.239
money they and knows they know the
money and just didn't do it. That's

653
00:46:19.280 --> 00:46:22.440
wrong. Well he has multiple well, right, and he has multiple years,

654
00:46:22.840 --> 00:46:25.480
and it's not really his fault.
It is his fault for not reporting

655
00:46:25.519 --> 00:46:29.920
the income. You mean, it's
not his fault. It's the irs fault

656
00:46:29.920 --> 00:46:32.400
for not like you should pay him, you should pay them. I no,

657
00:46:32.719 --> 00:46:36.199
look, I'm not I'm not defending
the guy. He should have paid

658
00:46:36.239 --> 00:46:38.840
his taxes on. Know. What
I was saying is that the i R

659
00:46:39.000 --> 00:46:43.760
S if you, if you underreport
your income, the i R S has

660
00:46:43.840 --> 00:46:45.559
ten years and it's their fault for
not coming off here and in that time.

661
00:46:45.920 --> 00:46:49.199
I agree, But it's his fault
for doing it if he knew it.

662
00:46:49.360 --> 00:46:51.679
If he didn't know it, then
that's a whole different story. But

663
00:46:51.719 --> 00:46:53.119
if he knew it, I don't
like that. Hey, you know what's

664
00:46:53.119 --> 00:46:59.119
good? Everybody here can ask you
questions. On April Street will be that

665
00:46:59.320 --> 00:47:01.239
John will be there and a lot
of your friends will be there, and

666
00:47:01.239 --> 00:47:02.880
a lot of people you don't know
who are going to be there. But

667
00:47:04.039 --> 00:47:07.039
we are Greenberg Financial Group will be
there with their entire team and we hope

668
00:47:07.039 --> 00:47:12.119
that you show up, but you
better getting quick I'm telling you there's not

669
00:47:12.159 --> 00:47:15.000
a lot of spaces left and and
it's, uh, this is the hottest

670
00:47:15.000 --> 00:47:17.480
one we've seen because usually, you
know, maybe it fills up a couple

671
00:47:17.480 --> 00:47:22.679
of days beforehand. This is gonna
fill up two weeks beforehand. Yeah,

672
00:47:22.800 --> 00:47:27.559
I mean it's top of the hour. Thanks for listening, Thank you,

673
00:47:27.639 --> 00:47:30.920
John. Yeah, bye bye,
welcome back. Everybody. Is second hour

674
00:47:31.039 --> 00:47:35.760
of the Money Batter Show. I
hope you enjoying what we're talking about.

675
00:47:35.880 --> 00:47:38.280
It's bringing you some insights to what's
going on in the markets. Uh,

676
00:47:38.320 --> 00:47:42.400
we've been talking about planning. We've
been talking about a lot of different things.

677
00:47:42.800 --> 00:47:46.199
Also talking about our workshop that's coming
up, or symposium, I don't

678
00:47:46.199 --> 00:47:49.519
even know what you really call it. Let's put it this way, our

679
00:47:49.639 --> 00:47:52.480
gathering. Greenberg Financial Group will be
there, and obviously I'll be there.

680
00:47:52.960 --> 00:47:58.199
J T. Harris, who take
over the morning show for from Garrett.

681
00:47:58.199 --> 00:48:01.360
He's going to be coming down introducing
him self to people, and it's gonna

682
00:48:01.400 --> 00:48:06.360
be a good event. April second, twelve o'clock at La Paloma, and

683
00:48:06.480 --> 00:48:09.480
I'm gonna introduce you to our entire
team. Remember I went to a team

684
00:48:09.519 --> 00:48:15.639
concept and the team concept is something
that I believe in. I had to

685
00:48:15.679 --> 00:48:19.559
figure out what I really thought would
be successful going forward, and it is.

686
00:48:19.599 --> 00:48:22.719
And the team is not just Greenberg
Financial Group. You know, you

687
00:48:22.880 --> 00:48:29.840
just heard the estate planner. I
was gonna say the estate planner on there.

688
00:48:30.199 --> 00:48:34.519
And obviously we got the Johnson Accounting
Group. That's also gonna be that.

689
00:48:34.599 --> 00:48:37.639
We partnered up with them a few
months ago, kind of was with

690
00:48:38.159 --> 00:48:42.159
the account before they took over the
firm. We met, we liked each

691
00:48:42.159 --> 00:48:45.559
other, so we moved forward.
Why is it important. It's important because

692
00:48:45.840 --> 00:48:49.559
we can do a financial plan all
day long. We can manage your money

693
00:48:49.599 --> 00:48:52.119
all day long. We know how
to take care of taxes and stuff doing

694
00:48:52.119 --> 00:48:54.840
that way. What's great is having
these other people. They set it up

695
00:48:54.880 --> 00:49:00.159
through the tax laws. Okay,
tax laws are different than just the tax

696
00:49:00.239 --> 00:49:05.679
laws and investments. And that's how
they get creative, that's how they get

697
00:49:05.719 --> 00:49:09.400
the ideas. That's how we go
ahead and work together to be able to

698
00:49:09.639 --> 00:49:15.079
understand the entire picture of a client
on what they need and not need during

699
00:49:15.079 --> 00:49:21.639
the tax process. So we've brought
in Joel Johnson again today and he'll be

700
00:49:22.079 --> 00:49:25.480
obviously he's he's one of our guys, one one of his guys. It's

701
00:49:25.519 --> 00:49:29.440
a good, good way to be
How you doing today, very well,

702
00:49:29.480 --> 00:49:31.320
Dean, thank you kindly. Great
to be back. Yep, all right,

703
00:49:31.360 --> 00:49:34.960
this is the end of March.
Obviously, April fifteen's coming up.

704
00:49:34.960 --> 00:49:37.880
You've been working a lot. Talk
about some of the things you're seeing that

705
00:49:38.239 --> 00:49:43.960
are they are new changes in the
tax cold that have been hurting or helping

706
00:49:44.000 --> 00:49:46.559
people. You bet. The first
thing I wanted to make sure I didn't

707
00:49:46.920 --> 00:49:52.679
fail to mention is a March twenty
second deadline that's coming up. Employer attention

708
00:49:52.760 --> 00:49:58.400
credit for all of our business listeners
out there. The IRS has a voluntary

709
00:49:58.400 --> 00:50:01.920
disclosure program. There was a very
heavy pushed by a number of organizations to

710
00:50:02.119 --> 00:50:06.800
encourage application for the employee retention credit. And I don't know if you've seen

711
00:50:06.800 --> 00:50:08.320
the bugs, Bunny, what about
me? Boss? Or and me boss,

712
00:50:08.400 --> 00:50:14.960
little little clip. I shouldn't say
I'm not on cartoons because I've got

713
00:50:14.960 --> 00:50:17.039
two little grandchildren. Well, dads, it's like blooey, that's what I

714
00:50:17.079 --> 00:50:21.440
have to watch a hundred times now
Bluey and Lion King the new into Lion

715
00:50:21.519 --> 00:50:23.079
King. Now, well, this
one might be worth looking up because for

716
00:50:23.119 --> 00:50:28.000
me, anytime I think of some
of these pandemic incentives. The way that

717
00:50:28.000 --> 00:50:30.000
some of these things played out.
That cartoon is a great example of it.

718
00:50:30.719 --> 00:50:37.480
So the short flavor is there's the
dispensing of money from a deal and

719
00:50:37.599 --> 00:50:40.039
bugs Bunny pops his head up above
the table, having napped under the table,

720
00:50:40.519 --> 00:50:44.079
and he says, well, what's
up, doc with his hand out,

721
00:50:44.119 --> 00:50:46.760
and there you go, and the
dispenser gets he and here's your cut.

722
00:50:46.760 --> 00:50:50.000
And then he's like wait a second, and then he keeps popping up

723
00:50:50.000 --> 00:50:52.840
with different hats and saying what about
me? What about me? So as

724
00:50:52.840 --> 00:50:58.159
we look at this employee retention credits, they put some of these impact mitigations

725
00:50:58.199 --> 00:51:01.400
on the table and said, hey, we realized we told you you can't

726
00:51:01.400 --> 00:51:05.800
make money, so we're putting some
money in your pocket. Employer attention credit

727
00:51:05.800 --> 00:51:09.079
people could get up to seven thousand
dollars per employee per quarter for an almost

728
00:51:09.079 --> 00:51:13.519
two year period. So we're talking
round numbers, flavor of fifty grand plus.

729
00:51:14.119 --> 00:51:15.400
Yeah, some real numbers, right, some real money. And all

730
00:51:15.440 --> 00:51:19.159
you have to do is multiply by
a number of employees and suddenly you know

731
00:51:19.159 --> 00:51:23.639
you have millions of dollars moving hands
fast and effectively. The checks and balances

732
00:51:23.639 --> 00:51:27.760
didn't seem to be approppropriately in place, and the IRS was sitting there at

733
00:51:27.760 --> 00:51:30.559
the dispenser just saying what about me? What about me? And just giving

734
00:51:30.639 --> 00:51:36.039
the money to everybody who asked,
And there was a bunch of folks out

735
00:51:36.039 --> 00:51:40.320
there just encouraging businesses to apply for
it who didn't actually qualify. And then

736
00:51:40.480 --> 00:51:44.920
as the storyline catches up, IRS
says, hey, wait a second,

737
00:51:44.960 --> 00:51:46.519
We've been paying out a whole bunch
of people, and the month of coffers

738
00:51:46.519 --> 00:51:50.440
are low, and they didn't deserve
it. That wasn't their money. They

739
00:51:50.440 --> 00:51:53.960
didn't deserve that cut. And so
they are about to incredibly aggressively. This

740
00:51:54.000 --> 00:51:59.000
is number one on their list for
a number of communications now to go after

741
00:51:59.039 --> 00:52:01.079
this and recover it. And when
IRS comes after you and wants to recover

742
00:52:01.159 --> 00:52:05.119
something, there's all kinds of interesting
fun stories I bet we all have with

743
00:52:05.440 --> 00:52:07.719
you know, dealing with that or
hearing someone dealing with that. You don't

744
00:52:07.719 --> 00:52:12.599
want it, So let's go the
opposite way. Okay, yep, we

745
00:52:12.679 --> 00:52:16.280
did it through a replical so payroll
services they helped us, We pay them

746
00:52:16.719 --> 00:52:22.480
and stuff. We got two quarters
paid back, yep, but for like

747
00:52:22.760 --> 00:52:24.880
nine months we haven't almost yet.
We haven't gotten the other two yep.

748
00:52:25.000 --> 00:52:29.000
Is this why it's been held up? Yes, they basically put a lockdown

749
00:52:29.039 --> 00:52:32.840
on it and just stopped to spend
some money, stopped accepting applications and there's

750
00:52:32.840 --> 00:52:37.159
plenty of qualified folks who should be
getting it. Yeah, so what about

751
00:52:37.159 --> 00:52:39.679
to qualify? We're going to get
interested on the something else? It seems

752
00:52:39.679 --> 00:52:44.159
probable. Typically they will when there's
a delay of some sort, they'll pay

753
00:52:44.159 --> 00:52:46.360
interest. Not the same interest they'll
collect against because they get add penalties to

754
00:52:46.400 --> 00:52:50.760
that, but normally they will add
some interest. So how do you know

755
00:52:50.800 --> 00:52:52.800
if you will qualify it? Not
if you sent it in and they gave

756
00:52:52.840 --> 00:52:57.400
you the money. So there is
a criteria. It is a checklist,

757
00:52:57.440 --> 00:52:59.639
and so if you go through there
and you qualify, and most of it

758
00:52:59.719 --> 00:53:02.000
has a you with did you were
you directly impacted in a certain way and

759
00:53:02.159 --> 00:53:06.920
or did it directly impact your revenues
over a certain percent? And it was

760
00:53:06.920 --> 00:53:09.159
a quarter by quarter assessment, so
you could qualify one quarter, not the

761
00:53:09.159 --> 00:53:15.400
next one, qualify again not the
next so on. So you would have

762
00:53:15.400 --> 00:53:17.199
to go through the criteria and evaluate
it. But if the youth do that,

763
00:53:17.320 --> 00:53:21.119
and you think and you got the
criteria and the people that did it.

764
00:53:21.440 --> 00:53:23.440
So you had the criteria and they
handed in and you get money.

765
00:53:23.760 --> 00:53:28.800
Now you're telling me that the iOS
is saying no, some people aren't qualified

766
00:53:28.800 --> 00:53:30.679
even though you were qualified. That's
what I'm telling you, after you incentivized

767
00:53:30.679 --> 00:53:35.639
me not to work. Well,
let's just so the criteria didn't change.

768
00:53:36.079 --> 00:53:38.840
But some of us, you know, were compelled to rely on experts and

769
00:53:38.880 --> 00:53:45.559
consultants for different types of things.
And the experts and consultants were incorrectly filing

770
00:53:45.559 --> 00:53:49.119
on behalf of others. They were
taking a cut on purpose. They were

771
00:53:49.159 --> 00:53:51.480
taking a cut. They said,
Hey, there's a lot of money on

772
00:53:51.480 --> 00:53:52.679
the table here. We're just going
to take a slice of this thing moving

773
00:53:52.719 --> 00:53:55.920
through. You pay us this percent. This is great when people didn't actually

774
00:53:57.000 --> 00:54:00.440
qualify. And so what IRS has
said is said, wait to set let's

775
00:54:00.480 --> 00:54:05.599
pause this and through Friday March twenty
second, you can voluntarily say hey,

776
00:54:06.519 --> 00:54:08.199
I'm not sure if I qualified or
not, and or figure out that you

777
00:54:08.199 --> 00:54:10.320
did or didn't. And if you
say hey, I you know, you

778
00:54:10.400 --> 00:54:15.599
raise your hand. They'll let you
keep twenty percent and they won't charge you

779
00:54:15.679 --> 00:54:17.719
interest. You won't have to change
other tax returns. There's basically this little

780
00:54:17.719 --> 00:54:22.079
grace nugget that says, all right, maybe you didn't know, come clean,

781
00:54:22.400 --> 00:54:23.760
and you get to keep a slice
of it and we'll all move on

782
00:54:23.800 --> 00:54:27.280
and we won't come after you.
I just think it's crazy that you could

783
00:54:27.280 --> 00:54:30.280
be given money and like not qualify
for it. Like I feel like you

784
00:54:30.280 --> 00:54:34.039
should have to go through protocol for
that. Well you get that there is

785
00:54:34.280 --> 00:54:36.960
in some of that check and balances
on the professional side, quite frankly,

786
00:54:37.039 --> 00:54:40.039
right, So if you come,
let's go Thatah. Because we all had

787
00:54:40.039 --> 00:54:44.039
these calls. I must have had
it, Yeah, three hundred calls from

788
00:54:44.039 --> 00:54:46.280
people. It was intense, Okay. I don't know if they all had

789
00:54:46.280 --> 00:54:50.559
good intentions, you know what I
mean mixed Because what I was finding out

790
00:54:50.599 --> 00:54:52.760
and I always do my homework,
is some people charge you one amount,

791
00:54:52.800 --> 00:54:57.079
another charge you more amount, you
know, and I was like, why

792
00:54:57.159 --> 00:54:59.639
you charge you more? Well,
well we're aggressive, we'll get this stuff.

793
00:54:59.679 --> 00:55:01.920
Those are the ones you probably had
to worry about. Yep, So

794
00:55:02.000 --> 00:55:07.679
tell me, you know. So
there's some business people that are listening the

795
00:55:07.719 --> 00:55:10.039
type of people that are dealing with
that, maybe they should look back into

796
00:55:10.079 --> 00:55:15.199
it again. Maybe it wasn't they
were non qualified even though they thought they

797
00:55:15.199 --> 00:55:22.400
were qualified by the person that told
them they were so. Short version is,

798
00:55:22.440 --> 00:55:24.760
if you got the money, make
sure you look up the criteria and

799
00:55:24.960 --> 00:55:29.480
get that sanity to check yourself or
reach out to your CPA or someone else

800
00:55:29.519 --> 00:55:32.239
and CPAs might be a little busy
right now, but nevertheless, get someone

801
00:55:32.280 --> 00:55:37.639
independent. So who do you think
was if you got it done by lack

802
00:55:37.960 --> 00:55:39.960
a corporation, your payroll service or
something like that. Yep, do you

803
00:55:39.960 --> 00:55:45.599
think you have to worry about that? If you had an established relationship with

804
00:55:45.679 --> 00:55:50.639
a reputable payroll service. My guess
is you probably are good, right because

805
00:55:50.639 --> 00:55:52.559
for them to sustain and retain the
relationship with IRS, et cetera, et

806
00:55:52.599 --> 00:55:55.920
cetera, they need to be honorable. But it's mostly a lot of new

807
00:55:57.000 --> 00:55:59.679
organizations that popped up and said,
hey, I am X y Z,

808
00:55:59.760 --> 00:56:04.000
get you your ERC money back.
Certain way said they're not going to be

809
00:56:04.039 --> 00:56:06.360
the ones that are held liable either. Right, Well, that's sort of

810
00:56:06.360 --> 00:56:09.119
the gotcha. Right on the tax
side of it, there's you as a

811
00:56:09.159 --> 00:56:13.719
tax payer. You as the business
owner, are the ones responsible for what's

812
00:56:13.800 --> 00:56:16.360
filing under your name under your business. Now, that doesn't mean there isn't

813
00:56:16.360 --> 00:56:20.480
culpability, right, it's crazy.
So yeah, so there is reach back.

814
00:56:20.480 --> 00:56:22.039
But at the end of the day, you know, as you're doing

815
00:56:22.039 --> 00:56:23.360
your tax turns and everything else,
at the end, I r S will

816
00:56:23.400 --> 00:56:29.039
hold the filer responsible, and how
you can hold the preparer if it's not

817
00:56:29.159 --> 00:56:31.039
you and so forth as a is
a further conversation. But I r S

818
00:56:31.159 --> 00:56:35.760
is the filer of the entity.
Well, I'm glad I went with who

819
00:56:35.840 --> 00:56:37.679
we went with. Then there you
go. Yeah, because I didn't even

820
00:56:37.679 --> 00:56:39.599
know that. I mean, they
just kept calling it, said I'm good,

821
00:56:39.639 --> 00:56:43.559
I'm good. Ye, you know, I already got to take care

822
00:56:43.599 --> 00:56:45.440
of but man, they kept hitting
it on hard. They did absolutely.

823
00:56:45.440 --> 00:56:47.800
And I had people who come came
to me, for example, and said,

824
00:56:47.800 --> 00:56:51.000
hey, you know, I hear
there's this credit out here. I

825
00:56:51.039 --> 00:56:52.840
want to get it. And I
would look at it and say, you

826
00:56:52.840 --> 00:56:53.920
know, I'd love to tell you
you can, but I can't file this

827
00:56:53.960 --> 00:56:57.280
because it's not right right, And
then I would hear, oh no,

828
00:56:57.360 --> 00:56:59.559
I went to this group in California. They filed for me, and I

829
00:56:59.559 --> 00:57:00.440
got the xmount of money. I'm
like, hey, you need to know

830
00:57:00.480 --> 00:57:04.679
that you don't Yeah, yeah,
that's what you have to worry about.

831
00:57:04.719 --> 00:57:07.119
You can still keep twenty if you
tell them, hey, what's okay?

832
00:57:07.199 --> 00:57:09.440
My bad? Uh, you can
keep twenty percent. But otherwise you're going

833
00:57:09.480 --> 00:57:14.519
to pay all of it plus penalties
plus interest, plus aggressive irs, plus

834
00:57:14.599 --> 00:57:17.440
nuisance plus plus plus you don't Yeah
you want to do with that? Find

835
00:57:17.440 --> 00:57:22.960
out maybe, but yeah it won't
be fun. Nope. All right,

836
00:57:22.000 --> 00:57:25.199
So what else we got to worry
about? Oh? Help, Well,

837
00:57:25.320 --> 00:57:29.000
well we'll do to worry in first
and we'll get to that thoughts. That's

838
00:57:29.000 --> 00:57:35.519
helping us. So the on the
worrying side outside of that is just deadlines.

839
00:57:35.679 --> 00:57:37.480
One of the big things with I
R S and with compliance and so

840
00:57:37.519 --> 00:57:40.480
forth is if you have letters,
if you don't have letters, if you

841
00:57:40.480 --> 00:57:46.000
have filing deadlines and whatnot, keep
those deadlines, honor those those commitments as

842
00:57:46.039 --> 00:57:50.840
you can. We heard, you
know, the prior segment about statutory time

843
00:57:50.920 --> 00:57:55.159
limitations and so forth. All those
types of things are relevant, and so

844
00:57:55.599 --> 00:58:00.480
stay on that side of it.
So, you know, obviously a lot

845
00:58:00.519 --> 00:58:05.239
of people pay a lot of taxes, but then sometimes they kind of look

846
00:58:05.280 --> 00:58:08.039
at and estimate and they you know, they get an extension and then they

847
00:58:08.079 --> 00:58:13.519
owe money later. Yep. So
what do you suggest to them, try

848
00:58:13.559 --> 00:58:15.239
to figure out about what you might
owe and then put some money in.

849
00:58:15.920 --> 00:58:20.039
Great, that's so it saves you
down the road. Great question, spot

850
00:58:20.079 --> 00:58:22.880
on there. So, yes,
you through April fifteenth, as long as

851
00:58:22.880 --> 00:58:29.239
you have fulfilled the obligation within a
certain within a one thousand dollars, then

852
00:58:29.320 --> 00:58:31.159
you won't have penalties and interest after
that. So if you think you know

853
00:58:31.239 --> 00:58:34.920
them more than a grand, you
want to get them a payment by April

854
00:58:34.960 --> 00:58:38.639
fifteenth, if you choose to go
under extension, and there's lots of scenarios

855
00:58:38.639 --> 00:58:44.559
where that's a good idea to do
extension. But okay, so what happens

856
00:58:44.559 --> 00:58:49.440
if you give them fifty grand and
you owed seventy grand, then they're gonna

857
00:58:49.559 --> 00:58:52.920
treat that extra twenty as if it
was a loan, and you'll pay interest

858
00:58:52.920 --> 00:58:55.480
in penalties. They call it penalties
because there's limitations on what kind of interest

859
00:58:55.519 --> 00:59:00.000
they can charge, and so penalties
in that context is just simply a mechanism

860
00:59:00.039 --> 00:59:02.199
to charge higher interest. How do
they choose the interest rate? It is

861
00:59:04.519 --> 00:59:07.800
dictated there is a quarterly interest rate
amount that goes out in a specific penalty

862
00:59:07.800 --> 00:59:13.800
amount depending on what the dynamic is
and it's assessed and changed quarter by quarter,

863
00:59:14.719 --> 00:59:17.960
variable interest rate through the treasury and
so forth. Yeah, yeah,

864
00:59:19.239 --> 00:59:21.960
wonderful. Yeah, it used to
be super cheap money, and it would

865
00:59:21.960 --> 00:59:25.280
be a strategy, financial strategy to
let the government carry the loan for you.

866
00:59:25.800 --> 00:59:28.880
And then they realized they didn't really
want it to be that way,

867
00:59:28.920 --> 00:59:31.079
and so then they added penalties and
other things like that to try to discourage

868
00:59:31.119 --> 00:59:37.239
that behavior. Yeah, what else
you got for us? So as far

869
00:59:37.320 --> 00:59:44.559
as the negative side and avoidance.
The other thing that I would just put

870
00:59:44.599 --> 00:59:47.599
out there is right now, I
call them AI letters. I rs IS

871
00:59:49.119 --> 00:59:53.800
reopened their printing press with regards to
sending out notices and they implemented AI and

872
00:59:53.880 --> 00:59:59.840
change systems in the background in the
interlude, And so there is a plethora

873
01:00:00.079 --> 01:00:02.159
of notices and letters coming out from
I r S that say all kinds of

874
01:00:02.480 --> 01:00:06.679
things about how much, how you
owe them money and so forth. Some

875
01:00:06.760 --> 01:00:08.159
of them are true, and a
lot of them aren't. It's a it's

876
01:00:08.199 --> 01:00:12.679
a real mess. So they're coming
from the I r S. So though

877
01:00:12.679 --> 01:00:15.400
it's not like legitimate, Yeah,
legitimate letters from the I R S.

878
01:00:16.400 --> 01:00:21.599
What in the world? So the
IRS will not call you? So not

879
01:00:22.920 --> 01:00:27.440
they will but not directly unless there's
a communication in writing. You have to

880
01:00:27.440 --> 01:00:29.519
have a writing from I R S. First. If someone calls I'm from

881
01:00:29.519 --> 01:00:30.519
the I R S and you haven't
seen a letter or anything from them,

882
01:00:30.559 --> 01:00:34.880
that is that not the I R
S. Yes, yes, yeah,

883
01:00:34.960 --> 01:00:37.400
not an email. Yes, please
please please do not click the button that

884
01:00:37.400 --> 01:00:40.519
says I'm the I R S and
please click here, so that you know

885
01:00:42.039 --> 01:00:52.440
whatever nasty things it's do not do
not. So those are the those are

886
01:00:52.440 --> 01:00:57.719
the things got to look out for. Let's talk about so maybe some new

887
01:00:57.800 --> 01:01:01.000
laws that they people might not be
aware of that they can get tax benefits.

888
01:01:01.960 --> 01:01:06.480
So on the tax benefit side,
energy efficiency, there's a whole bunch

889
01:01:06.519 --> 01:01:08.159
of credits and things in that regard
if you had to replace a heat pump

890
01:01:08.280 --> 01:01:12.440
type of system in your home.
H fact, those system water heater,

891
01:01:12.760 --> 01:01:16.000
water heater, there's some for certain
types of water heaters. Energy audits you

892
01:01:16.119 --> 01:01:19.280
just go through and say, hey, look at my house. Whereas their

893
01:01:19.320 --> 01:01:23.480
opportunity installation windows, doors. There's
a whole plethora of new credits that emerged

894
01:01:23.519 --> 01:01:27.920
in twenty three. They've been playing
around with that storyline for a long time,

895
01:01:27.960 --> 01:01:30.840
and I mean, you know,
if people knew that they would be

896
01:01:30.880 --> 01:01:34.920
incentitized and maybe do some stuff.
I didn't get a one A and I

897
01:01:34.920 --> 01:01:37.480
didn't even know it. Yeah,
a lot of these things we don't know

898
01:01:37.519 --> 01:01:40.440
and lot Yeah, and a lot
of these things change on the regular right

899
01:01:40.519 --> 01:01:46.559
balance budget acts and related things.
There's perpetual motion on the tax storylines,

900
01:01:46.719 --> 01:01:51.199
the incentives and whatnot. What I'm
telling you today might be different tomorrow.

901
01:01:51.519 --> 01:01:52.920
What I'm telling you is true today, they might change tomorrow and make it

902
01:01:52.960 --> 01:01:59.920
retroactive to yesterday. So there's all
kinds of perpetual uncertainties that are emerging in

903
01:02:00.039 --> 01:02:04.119
attack side of the storyline. So
use an account. How do you keep

904
01:02:04.199 --> 01:02:07.519
up with all this? Just out
of curiosity? If it's an everyday changing

905
01:02:07.559 --> 01:02:08.840
thing, do you have? What
do you do? You bet? So,

906
01:02:08.880 --> 01:02:14.719
I would give you a two Part
One is there's mandatory continuing education that

907
01:02:14.760 --> 01:02:17.159
we have to do. So there's
I don't know, I think you put

908
01:02:17.199 --> 01:02:21.639
in a couple hundred hours continuing education
in the last year and a half or

909
01:02:21.679 --> 01:02:25.119
so. And then the other part
is software. So it's a combination of

910
01:02:25.159 --> 01:02:30.079
being of knowing what these things are
and should be and knowing where to look

911
01:02:30.239 --> 01:02:32.760
and then leveraging some of the infrastructures
such as software to make sure that we

912
01:02:32.800 --> 01:02:36.719
get it right. Gotcha, yep, So that pulled some of those things

913
01:02:36.719 --> 01:02:39.719
forward. The other thing I would
tell people is as prepared as you can

914
01:02:39.800 --> 01:02:45.719
be coming to someone, coming to
a CPA or prepare is almost always incredibly

915
01:02:45.719 --> 01:02:49.639
the difference you might experience. Right, So things like I have no idea

916
01:02:49.719 --> 01:02:51.880
for hot water heater accounts. But
if you come and you say, hey,

917
01:02:51.920 --> 01:02:53.559
here's all the stuff that sort of
went down, Or if you have

918
01:02:53.960 --> 01:02:58.480
a good financial plan and these things
are perturbations to your plan, you know,

919
01:02:58.519 --> 01:03:01.800
you come in and you just have
some of these data points they that

920
01:03:01.880 --> 01:03:05.960
will bring right, it makes your
life a little bit easier to help you

921
01:03:06.000 --> 01:03:08.000
find somewhere that you could help thement
right exactly right. It's sort of that

922
01:03:08.039 --> 01:03:12.039
synergy where if I don't know what
did or didn't happen to you, you

923
01:03:12.119 --> 01:03:13.679
know, you go into the doctor
and say, hey, how do I

924
01:03:13.719 --> 01:03:15.599
stay healthier? Hey? You know
what do I need to do in this

925
01:03:15.679 --> 01:03:16.920
way? Well, I don't know
what you have going on. You know,

926
01:03:16.960 --> 01:03:21.519
that list goes on for you know, weeks of conversation. But if

927
01:03:21.559 --> 01:03:23.400
it's hey, here's the different things
I dealt with last year. You know,

928
01:03:23.480 --> 01:03:27.280
if you get an organized or questionnaire
like you typically get from a CPA,

929
01:03:27.360 --> 01:03:29.639
those things are all designed to just
call out, hey, here's these

930
01:03:29.679 --> 01:03:32.760
new things. So if you don't
have that, you might consider it's just

931
01:03:32.760 --> 01:03:36.960
solid data gathering. At that point. It is it's like our financial plan

932
01:03:37.119 --> 01:03:39.280
there. It is so I how
this financial planning and tax planning will go

933
01:03:39.360 --> 01:03:45.480
together. They are absolutely to me, they are in lockstep with each other.

934
01:03:45.960 --> 01:03:47.679
So kind of like he just said, you know, if somebody comes

935
01:03:47.679 --> 01:03:52.360
in sorry go ahead, yeah no, absolutely, yeah, no, fully

936
01:03:52.360 --> 01:03:57.679
lockstep with each other. So taxes, first of all, the number and

937
01:03:57.760 --> 01:04:00.039
volume of taxes there are or pages
and pages and listen list of taxes that

938
01:04:00.079 --> 01:04:03.599
we pay right so right now,
most of the conversations center around the income

939
01:04:03.639 --> 01:04:10.679
tax piece of the story. So
anytime you generate income, there's government infrastructure

940
01:04:10.679 --> 01:04:13.199
generally wants to have the slice of
it. How big this liighte. That's

941
01:04:13.320 --> 01:04:16.639
one of the lot of things we
deal with. So it's planning and having

942
01:04:16.639 --> 01:04:21.119
that financial strategy to understand what the
tax exposure is is critical to understanding the

943
01:04:21.119 --> 01:04:27.239
broader story of what you're trying to
achieve and where does tax and the opportunity

944
01:04:27.280 --> 01:04:30.000
to mitigate or capture some of the
incentives that you're are allowed under the code,

945
01:04:30.679 --> 01:04:34.280
it becomes quite notable. And if
you think forward and you actually take

946
01:04:34.320 --> 01:04:38.119
the time to plan, you can
also plan the overlay of how you can

947
01:04:38.199 --> 01:04:43.159
benefit from some of the tax incentives. Okay, this sort of goes with

948
01:04:43.159 --> 01:04:47.760
a hand in hand with estate planning
and stuff. Somebody passes they got a

949
01:04:47.760 --> 01:04:53.400
big full one K planky, what
do you do from the full wing K

950
01:04:53.559 --> 01:04:58.559
plan to get to the beneficiaries?
And then how does that get taxed?

951
01:04:59.519 --> 01:05:02.480
So on the front end on the
estate side of it, as we look

952
01:05:02.519 --> 01:05:09.519
at demographics, there's a huge volume
of a generation that's starting to move into

953
01:05:09.519 --> 01:05:15.000
this estate planning storyline. Overlaying your
financial plan and integrating estate planning. I

954
01:05:15.039 --> 01:05:20.840
can't overemphasize how significant a difference that
could make if you are proactive about it

955
01:05:20.840 --> 01:05:25.000
and look forward. So having that
altogether in that broader plan to include the

956
01:05:25.079 --> 01:05:30.840
estate consideration is in. I can't
emphasize the recommendation to do so enough.

957
01:05:30.199 --> 01:05:33.199
The way it overlaps. And this
is another big question on the horizon for

958
01:05:33.239 --> 01:05:36.320
the tax side of it, is
how are they going to tax a state?

959
01:05:36.519 --> 01:05:39.639
Right we've had rhetoric that say,
hey, you don't get a step

960
01:05:39.679 --> 01:05:42.760
up in basis anymore, we're going
to take half of the change in value

961
01:05:42.800 --> 01:05:46.880
from whatever you know, the person
who passed bought it for. So you

962
01:05:46.880 --> 01:05:48.960
know I bought that house for one
hundred grand's worth of million. Now,

963
01:05:49.000 --> 01:05:53.559
well guess what that's what half of
that nine hundred grand difference and then it

964
01:05:53.559 --> 01:05:57.119
goes to the estate. Well,
see, that's the classic is we get

965
01:05:57.119 --> 01:06:00.000
the step up on basis, And
so that was one of the strategies sometimes

966
01:06:00.119 --> 01:06:02.599
is to plan maybe they need resources
of money, so you take a mortgage

967
01:06:02.639 --> 01:06:05.440
out or do something to get you
the cash flow without triggering all the taxes

968
01:06:05.440 --> 01:06:09.159
because you can get the step up
on basis downstream. Well, if they

969
01:06:09.199 --> 01:06:11.880
take the step up and basis away, now you have a new dynamic and

970
01:06:11.880 --> 01:06:14.679
wrinkle to the planning. So let's
say they don't take the step up on

971
01:06:14.760 --> 01:06:17.719
basis, then they too try to
get you on the back end. Now

972
01:06:17.760 --> 01:06:21.480
there's an exemption, and that number
is subject to change. Lots of rhetoric

973
01:06:21.559 --> 01:06:27.119
in that regard as well. Currently
round numbers about thirteen million, but that

974
01:06:27.400 --> 01:06:30.599
they have rhetoric talks about dropping that
to five six. There's other rhetoric that

975
01:06:30.599 --> 01:06:32.239
says, top drop it down to
a million or less. There's a rhetoric

976
01:06:32.280 --> 01:06:34.960
that says, hey, let's tax
half, no step up on basis,

977
01:06:34.960 --> 01:06:39.599
tax half there plus everything, we'll
get to get forty percent. Round numbers

978
01:06:39.599 --> 01:06:42.960
for the estate tax you should think
of for the amount after that. So

979
01:06:42.960 --> 01:06:45.280
they're gonna take half in my scenario
of that nine hundred k gain on the

980
01:06:45.280 --> 01:06:47.920
house, and then now it's in
the estate whatever balance is left, and

981
01:06:47.920 --> 01:06:50.239
then they want forty percent of anything
over a million. When you put all

982
01:06:50.360 --> 01:06:55.159
jewels and everything else together on top
of that, that can't pitch. So

983
01:06:55.320 --> 01:06:59.960
it hasn't exactly, but that's the
rhetoric. They're talking that kind of extreme.

984
01:07:00.199 --> 01:07:03.199
On the same token, they won't
change any tax laws to have your

985
01:07:03.239 --> 01:07:06.840
fair share. They just want to
blame billionaires from making so much money,

986
01:07:08.079 --> 01:07:11.960
but they won't go and change the
tax code or the tax law to be

987
01:07:11.960 --> 01:07:15.519
able to make them pay taxes.
So if you think that's going through,

988
01:07:15.679 --> 01:07:20.599
you're out of your mind. It'll
be interesting to see. I think this

989
01:07:20.719 --> 01:07:24.159
is going back to four one k. What do they do then they put

990
01:07:24.199 --> 01:07:29.440
into an IRA to send into ir
So one of the things that's commonly misunderstood

991
01:07:29.480 --> 01:07:32.960
is the treatment of retirement plans relative
to a state, because typically they move

992
01:07:33.079 --> 01:07:38.960
outside of the estate. They go
directly to the name beneficiary and sometimes you

993
01:07:39.000 --> 01:07:42.920
name the state of beneficiary, and
that's the conversation for a state planner an

994
01:07:42.920 --> 01:07:48.079
attorney. But that aside. Nominally, if you know a child or someone

995
01:07:48.119 --> 01:07:53.639
like that is named beneficiary, the
rules are completely different and move outside of

996
01:07:53.639 --> 01:08:00.119
the estate storyline for a retirement count. Okay, so you're joining us as

997
01:08:00.159 --> 01:08:04.159
part of a team on April second, uh, doing this symposium. I'm

998
01:08:04.199 --> 01:08:08.719
excited. Some of the things we
want to talk about will be you know

999
01:08:09.920 --> 01:08:12.800
think. So what I'm gonna want
to ask you and I want you to

1000
01:08:12.800 --> 01:08:15.560
prepare? Okay, how do you
how do you how do you make the

1001
01:08:15.640 --> 01:08:19.800
tax code fair for people? In
your opinion? Obviously we can have opinions.

1002
01:08:19.840 --> 01:08:23.560
Doesn't work, but I want to
know and what you think about flat

1003
01:08:23.600 --> 01:08:26.880
taxes and how you're gonna we're gonna
get that to be able to perform.

1004
01:08:27.159 --> 01:08:30.319
I've been a proponent of that forever. I know it's never gonna happen because

1005
01:08:30.319 --> 01:08:35.760
it is fair. But I do
know, h I do know that if

1006
01:08:35.760 --> 01:08:41.840
we all pay the same percentage.
That's what's fair. I don't understand why

1007
01:08:41.880 --> 01:08:45.119
it's always fair with a certain amount
of people paying for everything. I also

1008
01:08:45.159 --> 01:08:51.159
want to talk about these people that
getting these uh these school loans paid for

1009
01:08:51.760 --> 01:08:57.479
okay, the forgiving loans. Are
they paying the taxes on that forgiveness,

1010
01:08:58.079 --> 01:09:01.800
just like we have to every time
I get if I had anything forgiving or

1011
01:09:01.800 --> 01:09:05.439
whatever, you have to you have
to pay for it. You know,

1012
01:09:05.560 --> 01:09:10.520
you have one hundred thousand dollars they
compromise with you tell you fifty and then

1013
01:09:10.560 --> 01:09:13.560
next thing, you know, you
still your taxes on the other fifty.

1014
01:09:13.840 --> 01:09:17.920
You know, I just don't get
how our mentality is at the point now

1015
01:09:18.640 --> 01:09:24.600
that we just give everything away to
able body people. I'll get it.

1016
01:09:24.600 --> 01:09:29.880
It's completely incentivizing. Yeah, it
is the Yeah, I don't think that

1017
01:09:30.359 --> 01:09:32.319
you ask ten different people what they
think is fairy, will probably get ten

1018
01:09:32.359 --> 01:09:35.520
different answers. Right. Well,
I think ten people will tell you you're

1019
01:09:35.600 --> 01:09:40.279
right. If they're able body,
they don't get a break. If they

1020
01:09:40.359 --> 01:09:43.359
made a contract, they don't get
a break. If they're not here legally,

1021
01:09:43.399 --> 01:09:46.119
they don't belong here. These are
the things that people will tell you.

1022
01:09:46.680 --> 01:09:50.000
Okay, that's where it is.
The media won't tell us that now,

1023
01:09:50.520 --> 01:09:54.920
but that's what people will tell us. They don't they're tiet of giving

1024
01:09:54.960 --> 01:09:58.479
it. Every liberal person I know
does not want to give free money away

1025
01:09:58.520 --> 01:10:00.600
to people that don't want to work. That's the one thing we agree on.

1026
01:10:01.640 --> 01:10:05.680
I said, okay, then put
in Trump. I hate rob They

1027
01:10:05.680 --> 01:10:10.399
go nuts, all right, but
at the end of the day, they

1028
01:10:10.439 --> 01:10:14.319
believe that people shouldn't get free stuff
unless they need it, and we got

1029
01:10:14.319 --> 01:10:17.119
to change that. The rhetoric is
that we want to talk from the tax

1030
01:10:17.159 --> 01:10:20.640
site, so be prepared for these
things. Absolutely fun, It'll be fun,

1031
01:10:20.680 --> 01:10:25.199
It'll be it'll be entertaining. I
think people get to know you guys.

1032
01:10:25.199 --> 01:10:29.279
They're gonna get to know that Jonathan
guy that's the essay planner. They're

1033
01:10:29.279 --> 01:10:31.880
gonna get to know Greenberg Financial Group, even though a lot of people know

1034
01:10:31.920 --> 01:10:36.159
it's already. It's gonna be fun
to hang out and get some some good

1035
01:10:36.159 --> 01:10:40.720
information. And the biggest thing is
is how do we plan the strategy?

1036
01:10:40.800 --> 01:10:43.960
We talk about planning all the time. What tax strategy, what a state

1037
01:10:44.000 --> 01:10:46.840
towner? What financial plan strategy are
we going to have before the election,

1038
01:10:47.359 --> 01:10:50.520
after the election of turning how it
turns out, and where will it take

1039
01:10:50.600 --> 01:10:55.439
us from there? Yep. And
our planning is gonna save you days of

1040
01:10:55.920 --> 01:10:58.239
trying to figure something out on the
back end. Yeah. Well, I'm

1041
01:10:58.239 --> 01:11:01.159
gonna tell you something, Joe.
Well, you're pretty small on what you're

1042
01:11:01.159 --> 01:11:03.920
doing. I like you. I
like the way you handle yourself. I

1043
01:11:04.000 --> 01:11:06.880
like the way you talk about stuff. You're very well versed. You're not

1044
01:11:08.000 --> 01:11:11.640
just here with you know. Uh, this is the taxes just the way

1045
01:11:11.680 --> 01:11:14.960
it is. You've got other things, other ideas. That's good. You're

1046
01:11:14.960 --> 01:11:17.680
going to fit in perfectly with us. I look forward to us growing this

1047
01:11:17.720 --> 01:11:24.239
thing and making everybody happy and saving
on taxes for people, absolutely happy to

1048
01:11:24.239 --> 01:11:27.840
be a part of the story.
Okay, all right, so everybody once

1049
01:11:27.880 --> 01:11:32.319
again, if you want to come, get on your computer. You'll see

1050
01:11:32.319 --> 01:11:39.600
the pig pop up. Fill it
out and you'll deserve your spot. If

1051
01:11:39.640 --> 01:11:44.199
you don't, I promise you you're
going to be left out. We get

1052
01:11:44.199 --> 01:11:47.760
too many, we'll figure out to
do another one somehow, some way.

1053
01:11:48.000 --> 01:11:50.640
I don't want to leave anybody out. I just want to make sure it

1054
01:11:50.640 --> 01:11:54.640
gets done right. Thank you for
listening. We'll be right back. This

1055
01:11:54.720 --> 01:11:58.319
has been the Money Matter Show.
Welcome back to everybody. We got a

1056
01:11:58.319 --> 01:12:00.359
couple more sessions left of the Money
Bout Show. It's been a good one.

1057
01:12:00.399 --> 01:12:04.000
We've learned a lot about taxes and
the state planning because we're all going

1058
01:12:04.079 --> 01:12:08.920
to be there to try to help
you guys out on April second. Yeah,

1059
01:12:08.960 --> 01:12:12.439
exactly. We're saying in the first
segment is gonna be very informative symposium

1060
01:12:12.479 --> 01:12:15.000
and it's kind of a little precursor
right there for off the show. It's

1061
01:12:15.039 --> 01:12:17.680
great, it's gonna be a good
one. Three hours are gonna go fast,

1062
01:12:17.680 --> 01:12:21.159
all right, So federal employees,
we haven't talked about that in a

1063
01:12:21.199 --> 01:12:24.520
while. We deal with a lot
of federal employees, right, and if

1064
01:12:24.520 --> 01:12:28.279
you're a federal employee, you know
your retirement is unique to just regular worker.

1065
01:12:28.319 --> 01:12:30.800
With the four um kanal. You
have your TSP, you have your

1066
01:12:30.840 --> 01:12:33.760
pension, you have your vaguely your
FEHB, all those different things that go

1067
01:12:33.880 --> 01:12:39.800
into your retirement plan. And the
biggest thing that we see is that people

1068
01:12:39.800 --> 01:12:41.840
don't know if they're going to be
ready to retire because I don't know if

1069
01:12:41.840 --> 01:12:43.880
they're going to be able to have
the if the pencil is going to be

1070
01:12:44.000 --> 01:12:47.479
enough for their expenses, is their
TSP gonna be able to supplement that bridge

1071
01:12:47.479 --> 01:12:51.439
that gap that might they might have
from income to expenses during retirement. And

1072
01:12:51.479 --> 01:12:56.199
that's what we find is most beneficial
from doing our financial plan with these federal

1073
01:12:56.239 --> 01:13:00.680
retirement employees is that what we can
do with the financial plan is see do

1074
01:13:00.760 --> 01:13:06.239
you need to supplement income? Will
your pension cover your retirement needs? And

1075
01:13:06.239 --> 01:13:11.159
if it doesn't, how can we
bridge that gap? And it's definitely a

1076
01:13:11.279 --> 01:13:16.199
unique to federal employees. And we
can see do you even need Feglee?

1077
01:13:16.199 --> 01:13:20.119
Fegley's premiums go up so much during
retirement that it's not even really worth it

1078
01:13:20.159 --> 01:13:24.199
to keep. But do you need
life insurance on your own side? Do

1079
01:13:24.239 --> 01:13:26.520
you might? You might not.
It might just be something for when your

1080
01:13:26.600 --> 01:13:29.760
kids were young and you don't need
it anymore. The health benefits tend to

1081
01:13:29.760 --> 01:13:30.520
be good, so it's something that
you want to keep. But this is

1082
01:13:30.920 --> 01:13:33.680
stuff that we go over through the
whole meeting, and we go through everything,

1083
01:13:34.000 --> 01:13:36.520
what pensions you have, if you
were active military, you might have

1084
01:13:36.560 --> 01:13:41.760
one of those pensions, all of
that different things, and it's really found

1085
01:13:41.800 --> 01:13:45.279
that it's very good thing to do
with the financial plan if you're a federal

1086
01:13:45.279 --> 01:13:48.039
employer out there, just and you're
interested in seeing what's going on, just

1087
01:13:48.039 --> 01:13:49.840
give us a call. We'd be
happy to help. Obviously, that for

1088
01:13:49.960 --> 01:13:54.319
financial plan is free and we just
want to help. And a couple of

1089
01:13:54.359 --> 01:13:58.359
niches federal federal employees is a unique
ditch and we deal with a lot of

1090
01:13:58.399 --> 01:14:00.920
federal employees. So the other thing
that we deal with a lot of ethe

1091
01:14:00.000 --> 01:14:04.680
on them uh retires a lot of
aratheon tires, which is which is great.

1092
01:14:04.760 --> 01:14:10.159
I mean they have a little unique
different situation going on how long they

1093
01:14:10.159 --> 01:14:12.560
were there with the company. But
if they're a huge legacy, they got

1094
01:14:12.560 --> 01:14:15.479
a better retirement plan than a lot
of people. Right, But I mean

1095
01:14:15.479 --> 01:14:18.039
even if you were there, Raytheon
has a good retirement plan. But it's

1096
01:14:18.039 --> 01:14:23.399
more normal in that sense huge was
it something different backway thirty years ago?

1097
01:14:23.479 --> 01:14:26.319
Roughly? Yeah, but they seem
to be taken care of pretty well.

1098
01:14:26.640 --> 01:14:29.399
Yeah, they have a good retirement
plan, that's for sure. All Right,

1099
01:14:29.399 --> 01:14:31.279
So let's talk about the markets.
Okay. You know, if you

1100
01:14:31.279 --> 01:14:34.840
didn't hear my monologue at the beginning, I talked about you know right now

1101
01:14:34.960 --> 01:14:39.560
is time to be very cautious.
Uh, We've been cautious. We've been

1102
01:14:39.600 --> 01:14:43.920
trimming back. I think right now
the market's kind of heavy. I don't

1103
01:14:43.920 --> 01:14:46.439
know what's going to make it go
higher. I don't see a huge downturn.

1104
01:14:46.880 --> 01:14:50.359
I just see a little stall here, maybe maybe a pullback. We

1105
01:14:50.399 --> 01:14:56.479
can go back down five seven of
something and then and then and then maybe

1106
01:14:56.560 --> 01:14:59.960
rally again. But at the end
of the day, you have to understand

1107
01:15:00.119 --> 01:15:04.279
mitigating risk, because if you don't
mitigate risk, you're just gonna write it

1108
01:15:04.319 --> 01:15:06.600
up, write it down, write
it up, write it down. And

1109
01:15:06.680 --> 01:15:12.000
at the end of the day,
that puts stress on you because when it's

1110
01:15:12.000 --> 01:15:15.920
going down, you get scared it
goes more. When it's going up,

1111
01:15:15.319 --> 01:15:20.199
you get scared that it's going to
turn down. Greed and fear drive the

1112
01:15:20.199 --> 01:15:25.239
markets. Yeah, and I agree
with that that the markets could easily stall

1113
01:15:25.319 --> 01:15:28.600
because what's been driving it is these
big tech companies, especially in video,

1114
01:15:28.640 --> 01:15:30.600
and I mean they already reported earnings
a couple of weeks ago and that just

1115
01:15:30.720 --> 01:15:34.439
exploded the market. So you're not
going to see much of that until midway

1116
01:15:34.439 --> 01:15:39.680
through the next quarter. So it
could just stall out. He could see

1117
01:15:39.680 --> 01:15:42.039
the pull back easy because those really
I mean, those companies have had to

1118
01:15:42.079 --> 01:15:45.119
pull back and if those aren't running
the ones I usually run the market like

1119
01:15:45.239 --> 01:15:48.520
in the recent is you can see
that go down a little bit, which

1120
01:15:48.560 --> 01:15:51.239
is good. You kind of need
that because people get a little too greedy

1121
01:15:51.239 --> 01:15:57.119
and you need a little wake up
call. The other greedy scale this week

1122
01:15:57.600 --> 01:16:01.119
was bitcoin got to add seven twenty
two seventy three thousand, and then now

1123
01:16:01.159 --> 01:16:03.880
I'll pull back a little bit.
How about those bitcoin miners. Those are

1124
01:16:04.000 --> 01:16:09.000
just getting destroyed right now? All
bitcoin? Yeah, I mean bitcoin it

1125
01:16:09.079 --> 01:16:13.359
drops seven percent obviously a trays twenty
four seven, but the ETFs that came

1126
01:16:13.399 --> 01:16:17.199
out, they dropped seven percent about
because bitcoin hits seventy two thousand dollars a

1127
01:16:17.239 --> 01:16:20.680
coin, which is all time high, and then it ended the weekend sixty

1128
01:16:20.680 --> 01:16:24.520
seven thousand dollars. So, I
mean, you know, we've talked about

1129
01:16:24.520 --> 01:16:29.039
these bitcoin miners before, and the
happening that's gonna happen, the idea of

1130
01:16:29.079 --> 01:16:31.000
behind this happening is gonna make it. You know, it's gonna cut that

1131
01:16:31.039 --> 01:16:34.399
margin for these miners a little bit. So I'm I'm personally thinking that that's

1132
01:16:34.439 --> 01:16:36.960
why we're starting to see these miners
drop a little bit, and at the

1133
01:16:38.000 --> 01:16:41.159
same time you're seeing bitcoin rise to
an all time high. Well was it

1134
01:16:41.199 --> 01:16:45.079
at seventy two seventy five thousand this
week? So what does that do for

1135
01:16:45.239 --> 01:16:47.920
a bitcoin minor? It makes it
harder to actually mine that bitcoin. It

1136
01:16:48.119 --> 01:16:54.479
decreases your margin. So it's a
weird kind of a push pull supply and

1137
01:16:54.520 --> 01:16:59.640
demand type of deal. That's you
know, you have conflicting factors on both

1138
01:16:59.760 --> 01:17:02.399
ends. So just because bitcoin is
running does not mean that these miners are

1139
01:17:02.439 --> 01:17:06.479
going to run. Yeah, exactly. And it was a little a lot

1140
01:17:06.520 --> 01:17:11.760
of talk about that happening was really
what got it going. And then well

1141
01:17:11.800 --> 01:17:13.680
we were talking about earlier in the
week. We just thought it was a

1142
01:17:13.680 --> 01:17:15.800
little too little, too much.
But it's amazing. How pund so I'll

1143
01:17:15.840 --> 01:17:19.560
start talking about bitcoin, Well,
it's a it's a it's it's a hedge

1144
01:17:19.600 --> 01:17:24.159
for inflation. Well, well it's
not. I do not believe it's has

1145
01:17:24.159 --> 01:17:29.279
for inflation before. When that or
what about Well, I like the one

1146
01:17:29.279 --> 01:17:31.079
that's like it's a store of value. Okay, well your store of value

1147
01:17:31.079 --> 01:17:34.000
fluctuated ten percent today? How about
that? Yes? Well, the idea

1148
01:17:34.000 --> 01:17:36.920
is that they're saying it's the new
age gold and that gold is a hedge

1149
01:17:36.960 --> 01:17:42.000
for inflation and all that and they're
saying gold and bitcoin, but I mean

1150
01:17:42.000 --> 01:17:44.840
bitcoin is volatile. Another thing you
could not look at it the same way

1151
01:17:44.840 --> 01:17:48.199
as Another thing that we're really seeing
the market is the volatility starting to increase,

1152
01:17:48.239 --> 01:17:51.119
and I personally think that we're going
to start to see that increase more

1153
01:17:51.159 --> 01:17:56.640
and more into this political election.
You have options volume versus share volume for

1154
01:17:56.680 --> 01:18:00.359
the first time since twenty twenty one. Once again, options volume now pass

1155
01:18:00.520 --> 01:18:04.800
shares volume in US single stocks.
You're starting to see just huge fluctuations of

1156
01:18:04.880 --> 01:18:10.199
price in the last hour of trading
days. You guys are both familiar with

1157
01:18:10.199 --> 01:18:14.399
it, but we remember the individual
options now being played by the institutions.

1158
01:18:14.720 --> 01:18:16.560
No, totally so, but that
way they don't have to get out of

1159
01:18:16.560 --> 01:18:19.000
the hedge funds and stuff. They
don't have to come out of the stock.

1160
01:18:19.079 --> 01:18:21.800
They can use the options to hedge
themselves, right, And so to

1161
01:18:21.920 --> 01:18:28.680
that point, gamma squeeze right when
market gamma squeeze is essentially when market makers

1162
01:18:28.680 --> 01:18:33.000
buy or sell out of their positions
that caused the surgeon price underlying contracts.

1163
01:18:34.279 --> 01:18:39.840
The last Thursday, you had a
bunch of zero dated options and you could

1164
01:18:39.840 --> 01:18:42.680
have bought an option for about fifty
dollars and you could have ended up with

1165
01:18:42.720 --> 01:18:45.560
twelve hundred. You could have taken
it the other way. Right after that

1166
01:18:45.600 --> 01:18:49.439
twelve hundred, hit bought fifty dollars
worth made another twelve hundred. This isn't

1167
01:18:49.439 --> 01:18:54.680
typical with the zero dated options.
You're seeing more of these. You know,

1168
01:18:54.760 --> 01:18:58.720
big players use them and speculatives and
stuff, but a lot of the

1169
01:18:58.760 --> 01:19:01.479
options are used for hedging and by
institutions, and that's why the volume has

1170
01:19:01.520 --> 01:19:04.680
increased so much. Would you say
that zero The people that have taken to

1171
01:19:04.720 --> 01:19:10.239
being taken advantage of are the people
that are doing it yourselves and and and

1172
01:19:10.960 --> 01:19:15.319
using the discount brokerage firms, the
fidelities, the vanguards, the you know

1173
01:19:15.399 --> 01:19:19.520
and stuff. And I think they
know what's going on, but they don't

1174
01:19:19.520 --> 01:19:24.199
because they haven't been in the business
to see the flows of the of the

1175
01:19:24.199 --> 01:19:28.039
strong money. It was so obvious
on Friday, you know, everything was

1176
01:19:28.079 --> 01:19:30.159
going down a little bit, but
the video was up, you know,

1177
01:19:30.319 --> 01:19:34.640
actually about fifteen points at one time
and finished down two because it was day

1178
01:19:34.680 --> 01:19:38.920
trading. Money was every other money
going into it. And then then the

1179
01:19:38.960 --> 01:19:43.479
other guys that want to trim their
positions, the institutions, they started selling

1180
01:19:43.479 --> 01:19:47.119
it coult and and and drove the
price right back down. Yeah, And

1181
01:19:47.199 --> 01:19:50.560
I mean it's just increased volatility is
not going to be a good thing going

1182
01:19:50.560 --> 01:19:56.000
forward either. So especially with people
who just do it like on their phone,

1183
01:19:56.079 --> 01:19:58.359
trade on their phone and stuff like
that. Well, that's why people

1184
01:19:58.399 --> 01:20:01.760
have to understand how to mitigate risk
and have a plan and put the plan

1185
01:20:01.840 --> 01:20:06.079
in place. It shouldn't even matter
to most people what happens on an everyday

1186
01:20:06.079 --> 01:20:09.720
basis in the market, and the
markets might go high from here, we

1187
01:20:09.760 --> 01:20:12.079
don't know. But also it's not
a bad idea to put on some hedge

1188
01:20:12.079 --> 01:20:15.479
and put some mitigate your risk,
take some profits. It's a smart plan

1189
01:20:15.600 --> 01:20:19.479
right now. The worst thing I
hate to hear from people is, oh,

1190
01:20:19.520 --> 01:20:21.840
don't worry about it. When the
markets go down, don't worry about

1191
01:20:21.840 --> 01:20:26.359
it. It'll come back. Yes, over time, it'll come back.

1192
01:20:26.600 --> 01:20:29.720
And it's fine if you're twenty and
thirty and forty and fifty years old,

1193
01:20:30.000 --> 01:20:32.800
But if you're in your sixties seventy
eighties and you're retired, you don't look

1194
01:20:32.840 --> 01:20:39.000
at it that way, and it
increases the stress on you. Don't be

1195
01:20:39.159 --> 01:20:43.840
that naive to just oh, it'll
come back. Understand the ebbs and the

1196
01:20:43.880 --> 01:20:47.680
flows. Mitigate your risk as it
goes higher by reducing your risk by reducing

1197
01:20:47.720 --> 01:20:51.800
positions, strimming positions, hedging.
Buy as it comes down, and don't

1198
01:20:51.800 --> 01:20:56.319
be afraid to do it, because
when the markets are going down, it's

1199
01:20:56.319 --> 01:20:59.279
inevitable that everyone's going to say,
oh, it's going to go lower,

1200
01:20:59.319 --> 01:21:00.359
it's going to go low, it's
gonna go all, and it might go

1201
01:21:00.479 --> 01:21:04.159
lower. I remember in two thousand
and eight, we couldn't. We bought

1202
01:21:04.159 --> 01:21:09.119
it when the S and P was
coming down at one thousand, after it

1203
01:21:09.279 --> 01:21:11.920
was a two thousand, we bought
it at eight hundred. I bought it

1204
01:21:11.920 --> 01:21:15.600
at seven hundred, and I bought
it at six point fifty or so or

1205
01:21:15.640 --> 01:21:19.279
six sixty six is the last time. And then then it turned all right.

1206
01:21:19.600 --> 01:21:25.920
You average down as the markets are
going down into good quality or or

1207
01:21:26.359 --> 01:21:30.880
or a few or indexes, and
then it rallies and you don't know what

1208
01:21:30.960 --> 01:21:34.640
it's going to happen. But remember
the United States of America is the number

1209
01:21:34.680 --> 01:21:40.199
one economy. Remember we have the
tools to be able to go ahead and

1210
01:21:40.239 --> 01:21:45.159
support the markets when they need it
by adding liquidity to the markets. That's

1211
01:21:45.199 --> 01:21:48.279
why we had this bull run right. Now, we've squeezed that liquidity out,

1212
01:21:48.640 --> 01:21:53.079
but we haven't seen the markets really
get hit by it yet because we

1213
01:21:53.199 --> 01:21:57.880
still have the overhang from the pandemic. Money that's there that is now drying

1214
01:21:57.960 --> 01:22:01.279
up in bank accounts. And you
can see that by seeing the credit cards

1215
01:22:01.359 --> 01:22:08.479
balances increasing along with interest making you
make higher payments. Mortgages are higher.

1216
01:22:09.159 --> 01:22:13.880
There's a problem. Recognize it.
It doesn't happen overnight. It's like the

1217
01:22:13.920 --> 01:22:17.560
Titanic trying to make a turn.
It just doesn't do a U turn like

1218
01:22:17.600 --> 01:22:25.239
you can in a Volkswagen. Okay. It takes time to go around and

1219
01:22:25.399 --> 01:22:29.800
turn around. And that's the scenario
that we're in. Yeah, exactly,

1220
01:22:29.880 --> 01:22:33.279
And I mean, okay, we
are well. I was just sorry.

1221
01:22:33.319 --> 01:22:36.399
I just lost my strength. Thought, all right, don't go buy fear.

1222
01:22:36.640 --> 01:22:40.880
Okay. I listened to so many
people talk about all the fear that's

1223
01:22:40.920 --> 01:22:43.720
out there. They tell you to
fear this, They tell you to fear

1224
01:22:43.760 --> 01:22:45.199
that. That's why you have to
do this. That's why you got to

1225
01:22:45.199 --> 01:22:48.840
buy annuities because of fear. Fear
of fear. If someone's selling you,

1226
01:22:49.039 --> 01:22:54.279
fear, run away. If somebody's
selling you just one product, like just

1227
01:22:54.359 --> 01:22:57.800
one annuity. They're not saying anything
about other options or other routes you could

1228
01:22:57.800 --> 01:23:00.479
take. You gotta be skeptical about
that because there's probably trying to make a

1229
01:23:00.520 --> 01:23:03.840
commission and not really trying to help
you and your retirement plan. But sometimes

1230
01:23:03.880 --> 01:23:06.960
the nudies are good for certain situations
and it's not a bad thing, but

1231
01:23:08.079 --> 01:23:10.960
it is also something you got to
look at as just part of your plan,

1232
01:23:11.079 --> 01:23:14.560
not your entire plan. Don't fall
into a traffic you saying I'm going

1233
01:23:14.600 --> 01:23:18.239
to lock up my entire retirement into
one product, because then five years down

1234
01:23:18.239 --> 01:23:20.479
the line you might need some money
it's locked up. Then you have to

1235
01:23:20.520 --> 01:23:23.359
go through all these hoops, and
you might have to pay taxes, might

1236
01:23:23.439 --> 01:23:27.399
have to pay surrender charges, penalties, all of these different things. Be

1237
01:23:27.520 --> 01:23:30.159
careful with the nudies. They can
be helpful in your retirement plan, but

1238
01:23:30.760 --> 01:23:33.119
you gotta be sure that it is
the right route that you got to take.

1239
01:23:33.119 --> 01:23:36.159
And the way to do that is
to look at your holistic financial plan

1240
01:23:36.279 --> 01:23:40.079
going into retirement, and that's where
we come to help. It's and it's

1241
01:23:40.119 --> 01:23:44.840
pretty simple if you just look at
what common sense annuity salesman can sell you

1242
01:23:44.960 --> 01:23:47.319
an annuity and they're gonna make five, six, seven, ten percent up

1243
01:23:47.399 --> 01:23:50.840
front. So if you do five
hundred thousand, it takes seven percent.

1244
01:23:51.159 --> 01:23:57.560
That's thirty five grand in the pocket. Most people like sells that manage the

1245
01:23:57.640 --> 01:24:00.560
money. You get one percent.
How long will to take to get there?

1246
01:24:01.079 --> 01:24:04.239
Seven years, So we do seven
years of work that they can do

1247
01:24:04.800 --> 01:24:10.359
in one in one sales. Think
about that. Think about that. We

1248
01:24:10.479 --> 01:24:14.479
build relationships, We don't sell your
products. We'll be back. You're listening

1249
01:24:14.479 --> 01:24:17.319
to the Money Matter Show, and
we couldn't be happy. All right,

1250
01:24:17.359 --> 01:24:21.600
everyone, and welcome back. Last
segment. Been a lot of information tonight,

1251
01:24:23.159 --> 01:24:26.520
well today on this morning. Where
am I? All right? So

1252
01:24:29.000 --> 01:24:31.279
what do you want to talk about? We can talk about some stock news

1253
01:24:31.399 --> 01:24:34.159
from the last week. I mean, you know, Budweiser, which is

1254
01:24:34.239 --> 01:24:39.079
Vanheuser Busch. They've been having a
lot of issues from their controversy and all

1255
01:24:39.119 --> 01:24:45.039
that, and Way has kind has
slowly been coming back. But what happened

1256
01:24:45.079 --> 01:24:49.800
on what happened on last week was
that Altria came out and said that they're

1257
01:24:49.840 --> 01:24:53.760
going to sell ten percent of their
steak, which is roughly thirty five million

1258
01:24:53.840 --> 01:24:57.880
shares, and bud stock just tanked
and the mean they're redoing that because Altrio

1259
01:24:57.880 --> 01:25:00.319
wants to buy back some of their
stock now Bud saying that theyre going to

1260
01:25:00.319 --> 01:25:02.960
buy back some of their stock.
But it dropped like about sixty dollars a

1261
01:25:02.960 --> 01:25:05.720
shares dropped them their sixty for the
first time since that whole news came out.

1262
01:25:05.920 --> 01:25:09.960
So it's still that company. Even
though Bill Gates bout ninety five million

1263
01:25:09.960 --> 01:25:14.560
shares or something ninety million dollars worth
of shares last year, it's still struggling.

1264
01:25:15.840 --> 01:25:19.000
He got under Armoured stock. That's
the he's back and the whole thing

1265
01:25:19.079 --> 01:25:21.600
with it, And the reason investors
don't like it is that they took the

1266
01:25:21.720 --> 01:25:30.319
route of taking over that. She
was the vice president of it was Lennard's

1267
01:25:30.520 --> 01:25:33.600
was hired out to Marryott. She
helped build that whole bonvoy program, digital

1268
01:25:33.680 --> 01:25:39.760
sales and everything like that, so
they hired her as the CEO of under

1269
01:25:39.880 --> 01:25:44.199
Armour. For after a year,
it's fired her because it didn't really work.

1270
01:25:44.319 --> 01:25:45.479
And that's what investors are saying.
They tried to take a shot in

1271
01:25:45.520 --> 01:25:47.800
the dark, saying, okay,
she built that, she can build our

1272
01:25:47.840 --> 01:25:53.239
online presence better in some loyalty program
didn't work. Investors don't like the outlook

1273
01:25:53.279 --> 01:25:57.359
of the company now that Kevin Plank's
back, even though he's been gone for

1274
01:25:57.439 --> 01:26:00.520
two years, so it is not
really happy about it. And that's stock

1275
01:26:00.479 --> 01:26:04.720
thank Yeah. Well, you know, sometimes it works when you bring back

1276
01:26:04.760 --> 01:26:09.439
people. The thing is does he
want to be back? Sometimes they come

1277
01:26:09.520 --> 01:26:12.520
back because they want to, you
know, say, save their own butt

1278
01:26:12.560 --> 01:26:15.880
because they have all their their network
tied up in the company. Well it's

1279
01:26:15.960 --> 01:26:17.439
thattters, I mean it's his company
built it. He's like, yeah,

1280
01:26:17.760 --> 01:26:21.560
but if he sold off all stock, you know, he's gone. Most

1281
01:26:21.560 --> 01:26:26.119
of these guys don't sell off they
that's you know, they they they take

1282
01:26:26.199 --> 01:26:29.680
stuff, but it's there, it's
their life. But if the guy stop

1283
01:26:29.800 --> 01:26:32.000
Botch doesn't want to come back,
well he already did once. Yeah,

1284
01:26:32.039 --> 01:26:34.520
he already left and came back.
And that's probably what happened. Bob Iger

1285
01:26:34.560 --> 01:26:38.600
then too with Disney, he saw
a traffick wasn't bringing to where he thought

1286
01:26:38.600 --> 01:26:41.720
he would. I'm coming back.
They won't he my net worth. I'm

1287
01:26:41.720 --> 01:26:45.720
going back here. Yeah, I'm
coming back. Speaking of new Hires,

1288
01:26:45.800 --> 01:26:48.880
three m Hires, William Brown is
their new CEO. Stock rally ten percent

1289
01:26:48.920 --> 01:26:51.720
off. That is who's that?
I don't really know. He's just a

1290
01:26:51.800 --> 01:26:54.680
new CEO. Come up with a
name. You don't know who it is.

1291
01:26:54.800 --> 01:26:58.119
He's a new face in there.
Okay, it used to be.

1292
01:26:58.760 --> 01:27:00.680
The point. The point is that
that's threem has a new CEO, and

1293
01:27:00.960 --> 01:27:03.960
hopefully they take them in a different
direction, because that stock's not been doing

1294
01:27:04.000 --> 01:27:08.119
anything. We used to be such
a great company and it will be again,

1295
01:27:08.560 --> 01:27:10.760
and that's something you might look at
as an opportunity. It's been looking

1296
01:27:11.079 --> 01:27:14.520
GE got killed. Yes, nobody
wanted GE. Nobody wanted GE, and

1297
01:27:14.600 --> 01:27:16.600
I know they did some reverse stock
blits and stuff. But at the end

1298
01:27:16.640 --> 01:27:21.840
of the day, guess what GE
is humming again? Three m pandemic low

1299
01:27:23.000 --> 01:27:26.720
and a six percent dividend right now
looking pretty attractive. That's pretty good value

1300
01:27:26.720 --> 01:27:29.359
stock if you're looking for individual stock. But like we always talk about,

1301
01:27:29.720 --> 01:27:31.960
picking individual stocks, especially for the
value, comes with a lot of risk

1302
01:27:32.359 --> 01:27:36.960
because what happens if it hits lower
it drops twenty percent this year you're six

1303
01:27:38.000 --> 01:27:41.399
percent dividing you get doesn't really make
back the principal loss, so you lose

1304
01:27:41.479 --> 01:27:45.239
net fourteen percent on the stock.
ETFs tend to be more diversified, safer

1305
01:27:45.279 --> 01:27:48.760
way in a sense. I mean
this sell obviously risk, but for values

1306
01:27:48.800 --> 01:27:51.840
you get about five percent in these
ones, and you can look to be

1307
01:27:51.880 --> 01:27:57.039
a little more stable in that sense. But sometimes if you want individual stocks,

1308
01:27:57.079 --> 01:27:59.159
three M looks like a buy an
opportunity. I know Dave's not here,

1309
01:27:59.199 --> 01:28:01.640
but let's talk about EV for a
second. Right at the end of

1310
01:28:01.680 --> 01:28:09.039
the what's going on right now,
guys, open your eyes. The people

1311
01:28:09.600 --> 01:28:13.039
do not want to buy EV as
much as they did before. Those that

1312
01:28:13.159 --> 01:28:17.680
wanted EV vehicles they've been bought.
You hear the FORARD, you hear GM.

1313
01:28:17.800 --> 01:28:21.159
You hear a lot of these companies
talking about how they have to cut

1314
01:28:21.279 --> 01:28:30.039
back because it's not productive. Corporations
have one job that's to make their shareholders

1315
01:28:30.119 --> 01:28:39.720
money and do it in the right
manner that they're also a corporate sensitive to

1316
01:28:39.800 --> 01:28:43.680
the environment and all this stuff,
but their job is to make money.

1317
01:28:44.159 --> 01:28:47.560
So when they're not making money,
they're not going to hold onto things just

1318
01:28:47.640 --> 01:28:51.359
because the government tells them or does
this or does that, unless it's law.

1319
01:28:51.600 --> 01:28:55.279
They're going to make a change.
They're going to pivot, and a

1320
01:28:55.359 --> 01:28:59.199
lot of them are pivoting right now
because they see the market saturated and they

1321
01:28:59.239 --> 01:29:01.520
put billions of dollars into it and
then not seeing to return on it.

1322
01:29:02.319 --> 01:29:05.960
So it's gonna be interesting to see
what comes down the road for the next

1323
01:29:06.000 --> 01:29:10.880
three or five years, because it
takes about that long to make the pivot

1324
01:29:10.920 --> 01:29:15.199
wark. They're pausing, like we
called it. They're pausing their ev productions

1325
01:29:15.199 --> 01:29:16.119
because it's not making the money,
like you're saying. At one point,

1326
01:29:16.159 --> 01:29:19.680
they got to save their own butt. Otherwise they're getting ousted by the shareholders.

1327
01:29:19.960 --> 01:29:23.720
Shareholders don't care. I think that's
a great thing for a company like

1328
01:29:23.800 --> 01:29:27.039
Tesla that's been front running this whole
thing. Allows them to take back some

1329
01:29:27.159 --> 01:29:30.479
of that market share, and they
will. That is true. Well,

1330
01:29:30.600 --> 01:29:33.560
but remember they're more than just the
car company. But I do have to

1331
01:29:33.600 --> 01:29:36.600
tell the story. Dave and I
were both up in Phoenix. He wanted

1332
01:29:36.640 --> 01:29:44.439
to take its Tesla. I took
my gas compunction contaneous combustion engines, and

1333
01:29:45.560 --> 01:29:49.199
we both left right. He left
a little bit before me and was ahead

1334
01:29:49.239 --> 01:29:54.640
of me by I don't know,
ten minutes, and I'm talking to him

1335
01:29:55.279 --> 01:30:00.880
and he has to stop and get
electricity. I filled up like tank before

1336
01:30:00.920 --> 01:30:04.399
I left here, up and back. He had to stop and get done.

1337
01:30:04.479 --> 01:30:10.000
I was home an hour before him. How does that make sense that

1338
01:30:10.079 --> 01:30:12.760
that's what I want to do?
Why do I want to have to if

1339
01:30:12.760 --> 01:30:16.119
I can fill up my tank and
go to Phoenix and back and still have

1340
01:30:16.239 --> 01:30:20.239
guests left over. By the way, nobody wants that is people just trying

1341
01:30:20.279 --> 01:30:24.279
to make excuses as to why EV
is way better, and we're trying to

1342
01:30:24.319 --> 01:30:27.560
make the point that, Okay,
maybe in the future it will be once

1343
01:30:27.680 --> 01:30:30.920
you can have five hundred miles on
his charge and it takes ten minutes of

1344
01:30:30.000 --> 01:30:32.079
charge, like it takes ten minutes
Phil Gas, But for right now,

1345
01:30:32.479 --> 01:30:36.199
it sucks. He was so excited
because he got off the road somewhere I

1346
01:30:36.199 --> 01:30:39.920
don't know, outside of Casta Graham
some place, and he goes, oh

1347
01:30:40.000 --> 01:30:45.239
my god, all these TV charges. This is beautiful because Loucid's out there.

1348
01:30:45.560 --> 01:30:47.680
I see you. I see you
now later at home. No,

1349
01:30:47.800 --> 01:30:50.119
yeah, I was talking to somebody
in California and they're just making all these

1350
01:30:50.159 --> 01:30:56.239
excuses about how good EV is,
and we were saying it could be in

1351
01:30:56.359 --> 01:30:59.920
the future, but the infrastructure is
not there for it to be as good

1352
01:31:00.039 --> 01:31:01.079
as you wanted to be in high
as you're trying to make it out to

1353
01:31:01.119 --> 01:31:04.560
be right now, and That's what
doesn't make sense to me. You build

1354
01:31:04.600 --> 01:31:13.159
a business by building the infrastructure first
and then advancing and going now and always

1355
01:31:13.199 --> 01:31:16.520
being ahead with the infrastructure as you're
building your company. The company who figures

1356
01:31:16.520 --> 01:31:19.520
out how to charge your car in
ten minutes full like a gas station is

1357
01:31:19.600 --> 01:31:23.760
gonna win. I just don't know
the company yet. And you don't have

1358
01:31:23.840 --> 01:31:28.279
to do it every half hour or
whatever every few hours. Yeah, the

1359
01:31:28.680 --> 01:31:34.039
battery length and charging time are the
biggest we'll figure that out. That's because

1360
01:31:34.039 --> 01:31:36.880
of the oldest companies different than the
phone. Remember the computers. No,

1361
01:31:38.000 --> 01:31:41.319
you guys don't remember that. I
mean I remember going in college. I

1362
01:31:41.399 --> 01:31:44.560
had to leave. We had to
go down to the computer building with a

1363
01:31:44.680 --> 01:31:50.399
punch cards to do some incredible calculations
two plus two plus five times this okay,

1364
01:31:53.039 --> 01:31:56.279
it was showing us computer science.
So we got that. Then they

1365
01:31:56.359 --> 01:32:00.479
got smaller, Then we got the
PCs, then we got then then everything

1366
01:32:00.520 --> 01:32:04.119
got into what the phone. People
live on their phone. They don't need

1367
01:32:04.159 --> 01:32:09.439
anything else. I personally can't because
I don't know how to use the phone

1368
01:32:09.520 --> 01:32:13.960
well enough to do all those things. But there's no doubt everything gets smaller.

1369
01:32:14.000 --> 01:32:17.199
The batteries will get smaller, the
batteries will get longer, and the

1370
01:32:17.319 --> 01:32:20.640
things that we need will do it
and at that time it'll be a great

1371
01:32:20.760 --> 01:32:24.920
thing. But make it sound if
everyone had to go electricity. We were

1372
01:32:24.960 --> 01:32:29.039
always talking about how you're gonna have
enough electricity to do it. The price

1373
01:32:29.119 --> 01:32:31.800
of electricity will go up. It
makes sense. The more you use electricity,

1374
01:32:32.680 --> 01:32:35.840
the more it's gonna cost. Well, how are you gonna create electricity

1375
01:32:36.079 --> 01:32:40.479
right now? We're using fossil fuel? What are they gonna change to that.

1376
01:32:40.840 --> 01:32:44.279
We're gonna We're gonna look like the
Netherlands and have, uh, those

1377
01:32:44.319 --> 01:32:46.800
windmills all over the place. Don't
worry five million people in the whole country

1378
01:32:46.880 --> 01:32:50.399
like we have in Phoenix, that
their whole country looks like driving to California

1379
01:32:50.439 --> 01:32:55.399
for us, And it's who's like, what's gonna happen. What needs to

1380
01:32:55.439 --> 01:32:57.520
happen is the batteries need to get
lighter, like you're saying, it's small

1381
01:32:57.520 --> 01:33:00.640
and lighter, and then then to
me to be able to put solar panels

1382
01:33:00.680 --> 01:33:02.640
on top of the car so then
you can just keep charging while you drive.

1383
01:33:02.800 --> 01:33:08.720
It seems like Tesla is perfectly integrated
for that. Yeah, it's just

1384
01:33:08.800 --> 01:33:11.560
too heavy, right, now,
all right, So guys here it comes

1385
01:33:11.640 --> 01:33:17.279
up next week, very important week. Why Federal Reserve is meeting, two

1386
01:33:17.359 --> 01:33:23.680
day meeting, and then they come
out and talk. I believe they're going

1387
01:33:23.720 --> 01:33:26.960
to be very careful in what they
say because they don't want to destroy the

1388
01:33:27.079 --> 01:33:30.319
markets. But I think you're going
to see a little bit of the red

1389
01:33:30.359 --> 01:33:33.439
of a change on how quickly they're
going to lower interest rates. They're going

1390
01:33:33.520 --> 01:33:36.640
to say when the time is right, the lower interest rates, but they

1391
01:33:36.680 --> 01:33:44.600
have concerns about the inflation. What
will just weak havoc in the markets would

1392
01:33:44.640 --> 01:33:47.560
be thou if they're considering the raise
rates again, which I don't believe they

1393
01:33:47.600 --> 01:33:51.600
will actually come out of their mouths
right now. I don't think so either.

1394
01:33:51.640 --> 01:33:54.920
I think that would have to be
like two or three months on the

1395
01:33:54.960 --> 01:33:58.039
line of positive inflation right now.
I think they're just going to posit it

1396
01:33:58.159 --> 01:34:01.279
soil sometime in the summer, which
now you can back off all the realtors

1397
01:34:01.279 --> 01:34:03.239
who were saying we're gonna have six
rate cuts this year. All right,

1398
01:34:03.319 --> 01:34:06.600
and so we're going into this,
think about where we are in the markets.

1399
01:34:06.600 --> 01:34:11.640
Okay, we're at fifty one and
change on the S and P five

1400
01:34:11.760 --> 01:34:15.159
hundred. We've gotten up to fifty
two or so and change right. So

1401
01:34:15.399 --> 01:34:18.399
if everything comes out and great and
everybody wants to be a buyer, you

1402
01:34:18.520 --> 01:34:21.920
got two or three percent to the
upside. But if it's not good,

1403
01:34:23.359 --> 01:34:26.079
if they don't like it, and
everybody wants to leave the party at the

1404
01:34:26.119 --> 01:34:30.319
same time, what's our downside?
Is it three percent, five percent,

1405
01:34:30.640 --> 01:34:33.319
ten percent? You can easily see
a seven to twelve percent moved down.

1406
01:34:34.039 --> 01:34:39.840
So going into that, why be
aggressive If you haven't mitigated risk, use

1407
01:34:39.920 --> 01:34:44.479
Monday Tuesday to mitigate some risk,
raise a little cash, trim a few

1408
01:34:44.520 --> 01:34:47.279
positions so you don't get blasted.
If it goes up, you're still gonna

1409
01:34:47.319 --> 01:34:51.439
make money, but if it goes
down, you're gonna have cash to rebuy

1410
01:34:51.560 --> 01:34:57.840
back in with some opportunities. If
you don't know what I'm saying, if

1411
01:34:57.840 --> 01:35:00.520
you don't understand it, then come
on and talk to us. We do

1412
01:35:00.640 --> 01:35:05.640
the financial plan and we do the
money management in house. We want you

1413
01:35:05.800 --> 01:35:11.039
to know. We want you to
be educated. We want you to understand

1414
01:35:11.119 --> 01:35:15.399
what we do. The more you
understand, the easier users for us for

1415
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you to understand what we're thinking.
That's why we send out a monthly newsletter.

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That's why we do these radio shows, this is why we do the

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TV shows, and that's why everything's
on our website. You can go back

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and see how many times we're right
and wrong. Good news is, we're

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right more than we're wrong, by
a lot, and that's because of experience.

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There is no substitute for experience.
It's that simple. You get a

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feel for it, you understand it. Yes, you're going to be wrong

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once in a while, but allocations
keep you out of trouble. We'll be

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back next week where your money matters. Be happy, be healthy, and

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we all strive to be profitable.