Goodbye September, Will October be Better? - How to Prepare

1 00:00:02,319 --> 00:00:06,440 Good morning everybody. It's Sunday morning. It's eight o'clock at seven ninety K 2 00:00:06,519 --> 00:00:11,439 and is Tea. This is Dean Greenberg and I will be starting off bringing 3 00:00:11,480 --> 00:00:13,759 you the Money by the Show with the rest of the crew. Today, 4 00:00:13,759 --> 00:00:17,160 we're going to talk about a lot of things. Pick anything. There's so 5 00:00:17,239 --> 00:00:23,559 much going on in the world. There is especially right here affecting us, 6 00:00:23,600 --> 00:00:27,280 our money, our economy. How are we gonna go ahead and do things 7 00:00:27,280 --> 00:00:32,960 and go forward? That is a problem. We've got the government that wants 8 00:00:32,960 --> 00:00:36,920 to shut down because they can't come to an agreement on how to fix the 9 00:00:37,000 --> 00:00:42,759 border, stop spending, and also go ahead and fun things. Guess what, 10 00:00:43,039 --> 00:00:47,600 it's simple. Shut the border, cut spending, and redo the budgets. 11 00:00:49,520 --> 00:00:53,439 We need it. Everyone talks about it. It's not like it's isolated. 12 00:00:54,159 --> 00:00:57,960 But now, let's shut down the government. Let's shut down the government. 13 00:00:58,200 --> 00:01:02,000 Why don't we stop paying them if they don't balance the budget, if 14 00:01:02,000 --> 00:01:07,560 they go ahead and keep raising debt, why don't we stop paying them that 15 00:01:07,719 --> 00:01:11,120 ceiling debt ceiling will never be risen, the budget will be resolved. Stop 16 00:01:11,359 --> 00:01:19,959 paying them. Them being Congress, the idiots that won't get along. That 17 00:01:19,159 --> 00:01:25,400 just go ahead like a bunch of sheep saying I'm doing this for my constituents. 18 00:01:25,480 --> 00:01:29,280 Right, sure, whatever you say. Okay, if it's not the 19 00:01:29,319 --> 00:01:34,319 government shutdown, let's talk about the strikes. We'll talk about them too. 20 00:01:34,760 --> 00:01:38,920 United Auto Work is wanting thirty to forty percent raises. Well, don't we 21 00:01:40,000 --> 00:01:45,519 all. But while they're doing that, we're all losing money. Markets go 22 00:01:45,599 --> 00:01:53,640 down, inflation goes higher, keep paying more. They're there for themselves. 23 00:01:53,680 --> 00:01:59,120 Don't you think one second, for one second that they care about anybody else 24 00:01:59,439 --> 00:02:07,680 but them else. We're gonna talk about why. I think personally, it 25 00:02:07,840 --> 00:02:15,599 was horrible to watch our president or any president stand in line with the picketers 26 00:02:17,599 --> 00:02:24,680 under the cover. I'm here for the working man. You're there to tell 27 00:02:24,919 --> 00:02:30,360 unions go strike because I am the most pro union president that there is. 28 00:02:30,919 --> 00:02:36,159 But be the most pro union president there is means we're going to have more 29 00:02:36,199 --> 00:02:43,919 inflation. You don't balance it out and tell people, and you don't tell 30 00:02:43,960 --> 00:02:46,520 them the truth. Keep doing it, and guess what. We'll go to 31 00:02:46,599 --> 00:02:53,800 Mexico and start building our plants and building our cause. We'll go overseas, 32 00:02:53,520 --> 00:02:58,039 we'll go other places that we can go ahead and do the things that we 33 00:02:58,120 --> 00:03:02,599 need to do so we can get the way to the Americans their vehicles at 34 00:03:02,599 --> 00:03:07,439 a pretty down good price. No, what does our government do, Just 35 00:03:07,520 --> 00:03:12,400 keep pushing down electric vehicles, electric vehicles, No oil, no, no 36 00:03:12,520 --> 00:03:15,280 drilling, no nothing. So what does oil do? It gets back to 37 00:03:15,360 --> 00:03:21,840 ninety three dollars a barrel or so. Inflation is sticky. Oil is not 38 00:03:21,960 --> 00:03:29,599 helping. Interest rates the highest they've been in over fifteen years, mortgage rates 39 00:03:29,680 --> 00:03:36,080 highest they've been in over fifteen years. And then we find out the money 40 00:03:36,159 --> 00:03:39,240 that we continue to argue about sending the Ukraine or not. It's not just 41 00:03:39,319 --> 00:03:50,039 be using for the war. They are subsidizing a whole bunch of things, 42 00:03:50,080 --> 00:03:53,879 including small businesses. Well, I have a pretty much small business. I 43 00:03:53,919 --> 00:03:59,360 would love to be subsidized. You don't even give me money, give me 44 00:03:59,400 --> 00:04:08,280 tax breaks, help out our own people. Stop giving money to everybody around 45 00:04:08,319 --> 00:04:14,000 the world, but ourselves stop it with the inflationary stop it going ahead and 46 00:04:14,120 --> 00:04:18,560 opening up these boarders. Stop it right now so we can have a situation 47 00:04:18,879 --> 00:04:28,800 that we can build our economy and stop weakening our entire country and our military. 48 00:04:29,160 --> 00:04:33,120 I just feel like we are stretching and stretching and stretching and in the 49 00:04:33,120 --> 00:04:38,120 meantime, and I don't know why, but the markets are down again. 50 00:04:38,160 --> 00:04:44,600 In September they closed down the month five percent. They closed down on the 51 00:04:44,720 --> 00:04:47,480 SMP, three and a half on the Dow, almost six percent on the 52 00:04:47,560 --> 00:04:54,319 NASDAC, and the equal weighted was also down five and a half. The 53 00:04:54,480 --> 00:05:00,680 equal weighted SMP five hundred is the real SMP you should be looking out for 54 00:05:00,759 --> 00:05:05,439 most of the time, and they're usually in steplock with the others SMP five 55 00:05:05,519 --> 00:05:10,079 hundred, and I know they've done some changes, but the SMP five hundred, 56 00:05:10,399 --> 00:05:12,639 that's up eleven point seven percent. And by the way, that was 57 00:05:12,720 --> 00:05:16,560 up nineteen percent not too long ago. Up eleven point seven percent. Right, 58 00:05:17,639 --> 00:05:23,680 it's been up so much because of those text stocks that have the large 59 00:05:23,720 --> 00:05:29,959 tex stock that have rallied one hundred two hundred percent. The equal weighted is 60 00:05:30,160 --> 00:05:32,759 every stock in the S ANDP has the same waiting how they've done up and 61 00:05:32,800 --> 00:05:36,120 down a price, And that's not even up a half a percent for the 62 00:05:36,199 --> 00:05:42,639 year, So it distorts returns for people. It really does. The dials 63 00:05:42,720 --> 00:05:46,800 up one point one. That's more of a realistic now is that which was 64 00:05:46,879 --> 00:05:50,920 up almost forty is up twenty six percent. So we've had a pullback. 65 00:05:53,879 --> 00:05:58,560 So where do we go from now? Well, before we talk about where 66 00:05:58,560 --> 00:06:02,040 we go from there, I hope you've been mitigate risk. We talk about 67 00:06:02,040 --> 00:06:04,839 it all the time. How to mitigate risk? Let me tell you. 68 00:06:04,839 --> 00:06:08,480 If you don't know, come talk to us, Go talk to your advice 69 00:06:08,519 --> 00:06:11,720 and go talk to somebody. They're going to help you mitigate risk. And 70 00:06:11,920 --> 00:06:15,360 they don't even understand what that means. Or just tell us you don't worry 71 00:06:15,399 --> 00:06:18,839 about it. Markets go down, they come back on say that's true. 72 00:06:20,360 --> 00:06:26,000 If I was an institution and it didn't matter because I'm always going to get 73 00:06:26,000 --> 00:06:28,920 more money coming in. So if things are lower, I can always buy 74 00:06:28,959 --> 00:06:35,360 lower if I like it. But I'm an individual and I have risk tolerances 75 00:06:36,560 --> 00:06:42,720 and I have emotions, and when the markets go down, it changes the 76 00:06:42,759 --> 00:06:47,079 way I look at my lifestyle and my life. So I want to be 77 00:06:47,160 --> 00:06:49,959 able to mitigate some of the risk, not all of it, because I 78 00:06:50,000 --> 00:06:53,079 know if I mitigate all of it, I can't make any money on the 79 00:06:53,160 --> 00:06:56,959 upside. So how do I mentigate risk? And what does that mean? 80 00:06:58,319 --> 00:07:00,920 Well, that means for the with down five and you're down three, that 81 00:07:00,959 --> 00:07:05,959 you've done a better job than the S and P. Right, that's how 82 00:07:05,959 --> 00:07:11,079 you look at it. Markets are down ten and you're down five or six, 83 00:07:11,720 --> 00:07:17,600 you're mitigated risk. Mitigated risk could be using the inverse funds, buying 84 00:07:17,959 --> 00:07:23,519 insurance, protection puts, selling calls, a whole bunch of different things, 85 00:07:23,600 --> 00:07:29,959 raising cash, put more in fixed income. Tactical strategy. And people think 86 00:07:30,000 --> 00:07:32,319 if you say tactical strategy, you mean market timing. I do not mean 87 00:07:32,360 --> 00:07:36,360 market timing, because I would never sell everything and then buy everything. I 88 00:07:36,439 --> 00:07:43,360 reduce my allocations when over evaluations are in the marketplace, and right now there 89 00:07:43,480 --> 00:07:49,160 is over evaluations. So if I'd like to be sixty to seventy percent invested 90 00:07:49,199 --> 00:07:55,720 when fully that's my full investment position, I cut that back to maybe forty 91 00:07:55,759 --> 00:08:00,800 or fifty percent, maybe even sixty if I'm seventy, but cut back a 92 00:08:00,800 --> 00:08:05,079 little bit. Then you put it in the money markets. Now you can 93 00:08:05,120 --> 00:08:09,439 get over five percent. Government bombs, you can get over five percent. 94 00:08:09,480 --> 00:08:16,399 There's a lot of government bomb ladders we've been doing. That's called tactical strategy 95 00:08:16,519 --> 00:08:22,800 management of money. Okay. The others you know, asset allocation, Sure, 96 00:08:24,560 --> 00:08:33,039 we asset allocation inside our strict are tactical strategies and the reason we do 97 00:08:33,120 --> 00:08:37,039 it it's risk reward. And I don't hear a lot of people ever really 98 00:08:37,039 --> 00:08:39,759 talk about risk reward, but it's so important when the risk is greater than 99 00:08:39,799 --> 00:08:45,799 the reward. In our opinion, we reduce risk. If we think the 100 00:08:46,039 --> 00:08:48,519 reward is greater than the risk, we increase. That means you're buying low 101 00:08:48,559 --> 00:08:54,600 selling high. When we saw interest rates coming down, we got out of 102 00:08:54,639 --> 00:09:01,480 long term bonds into short term bonds, into short term maturities. That helped 103 00:09:01,480 --> 00:09:09,000 our portfolio tremendously because we were still would interest rates going up. We have 104 00:09:09,039 --> 00:09:15,039 one or two year bonds on maybe three that's it. That means in the 105 00:09:15,120 --> 00:09:16,120 one or two or three years, and we got a bunch that we did 106 00:09:16,120 --> 00:09:22,600 two years AT's starting to mature now coming up December twenty twenty four, more 107 00:09:22,600 --> 00:09:24,600 bonds are come and do and then we're going to roll them and roll them 108 00:09:24,639 --> 00:09:37,399 higher. Tactical strategy mitigating risk. If you're not getting it and you want 109 00:09:37,440 --> 00:09:41,360 it, think about it, and the least come and talk to us about 110 00:09:41,360 --> 00:09:46,120 it. Talk to us on how we would do that in your portfolio. 111 00:09:46,480 --> 00:09:48,480 And it all leads up to the plan. I know everyone's doing financial planning. 112 00:09:48,480 --> 00:09:52,720 We're doing it. It's a it's a necessary thing to have done. 113 00:09:52,759 --> 00:09:54,879 Now. It's a beautiful picture of where you stand. And you know what 114 00:09:54,960 --> 00:09:58,600 the biggest thing is at the end of the day, you realize, I'm 115 00:09:58,639 --> 00:10:01,720 not gonna run out of money because you set your portfolio up and you're spending 116 00:10:01,720 --> 00:10:05,279 habits. I'm not going to run out of money. And those that do 117 00:10:05,360 --> 00:10:09,440 spend all their money and their portfolios and they do it not they knew it 118 00:10:09,440 --> 00:10:11,480 ahead of a time, and then they have plan bing where they're going to 119 00:10:11,519 --> 00:10:16,639 get other income from. And obviously you're older and everything else. But when 120 00:10:16,679 --> 00:10:22,720 you don't want to do is you sit there and not do something? All 121 00:10:22,799 --> 00:10:26,000 right? This strike is really bugging me, and I really don't like the 122 00:10:26,000 --> 00:10:31,600 way the media frames it. But that's not a surprise. It's for the 123 00:10:31,639 --> 00:10:33,200 working man. It's for the working man. It's for the working man. 124 00:10:33,279 --> 00:10:39,000 We're all working men or women. We all have jobs to go to. 125 00:10:41,399 --> 00:10:43,080 Some make more money than the others. It has nothing to do with the 126 00:10:43,120 --> 00:10:50,480 money. It has everything to do with the work ethic. People say, 127 00:10:50,519 --> 00:10:54,879 oh, you don't want to you're just because you're doing well. You don't 128 00:10:54,879 --> 00:10:58,480 want people to make more money. That's not true. Whatsoever I've had the 129 00:10:58,559 --> 00:11:01,480 industry. I've had businesses that minimum wage was the idea, and I have 130 00:11:01,919 --> 00:11:07,080 investment firms. I have been on both sides of the spectrum. I talk 131 00:11:07,159 --> 00:11:11,759 to employees. I understand the economy and I understand the way it works. 132 00:11:13,039 --> 00:11:16,840 And since for twelve years, fifteen years, I've been telling you agust rates, 133 00:11:16,159 --> 00:11:20,679 non agust rates, wages going up, minimum wage going up. It's 134 00:11:20,759 --> 00:11:26,080 fine, except it's going to bring on inflation because then at some time we're 135 00:11:26,080 --> 00:11:30,879 not going to be able to afford the things we afford now. So corporation, 136 00:11:30,919 --> 00:11:35,919 they're going to spend the money rather than going ahead and training and developing. 137 00:11:35,720 --> 00:11:43,039 They're gonna go get robots, artificial intelligence, are going to start making 138 00:11:43,080 --> 00:11:48,440 burghers and French fries. It's all going to be done by machine. So 139 00:11:48,559 --> 00:11:52,159 those low paying jobs, which aren't low paying anymore. It's fifteen sixteen, 140 00:11:52,240 --> 00:11:58,879 eighteen dollars are going to go away. And if you don't get educated, 141 00:11:58,639 --> 00:12:03,679 you're I'm gonna find yourself having jobs other than manual doing things that you have 142 00:12:03,759 --> 00:12:09,919 to do like clean clean hotels, clean homes, agriculture, being out in 143 00:12:09,919 --> 00:12:13,559 the hot sun all the time. There'll be jobs for you you know might 144 00:12:13,600 --> 00:12:18,200 not like them, but there's no one to blame but yourself that you didn't 145 00:12:18,200 --> 00:12:22,039 want to learn more. To do the things that will do it, you 146 00:12:22,080 --> 00:12:24,919 have to look at where you want to be in life and what you want 147 00:12:24,919 --> 00:12:28,159 to do in life. If you want don't want to work outside, then 148 00:12:28,399 --> 00:12:31,799 you got to figure out how you're gonna get inside. If you want to 149 00:12:31,799 --> 00:12:37,440 work outside, that you got to figure out how to get outside the type 150 00:12:37,480 --> 00:12:39,600 of jobs you want. You want to own a business, and you better 151 00:12:39,639 --> 00:12:46,679 become a person that understands risk. You want to work for a corporation, 152 00:12:46,879 --> 00:12:52,639 understand if there's management levels that you grow with, you're not gonna go from 153 00:12:52,600 --> 00:12:56,879 from level one to level fifteen overnight. You might not ever get to level 154 00:12:56,919 --> 00:13:03,440 fifteen. Everybody can't be the CEO. Everybody can't be to top management. 155 00:13:03,759 --> 00:13:07,799 You earn the right to get there by the management and the company's trusting you, 156 00:13:07,720 --> 00:13:09,759 and that means you got to do a lot of stuff you don't like. 157 00:13:11,080 --> 00:13:15,039 Very few people do I know, that work for corporation for a long 158 00:13:15,080 --> 00:13:22,240 time actually enjoyed the job until they have some independence. Because most corporations tell 159 00:13:22,279 --> 00:13:26,320 you what you can do, how you can do it, what you could 160 00:13:26,360 --> 00:13:31,039 say, how you cannot say. And human resources just drives people crazy today 161 00:13:31,080 --> 00:13:35,159 because they don't allow anyone to be themselves. But if that's the job you 162 00:13:35,320 --> 00:13:39,879 choose, then be the best you can at the job and earn the money 163 00:13:39,960 --> 00:13:43,519 you can and stop striking. And then the President of the United States of 164 00:13:43,559 --> 00:13:50,960 America thinks it's okay to go on the picket line and say I'm here for 165 00:13:52,000 --> 00:13:56,080 the workers. I'm not here. I'm not saying what they should get. 166 00:13:56,120 --> 00:13:58,039 Well, once you put your foot down, and once you're walk in that 167 00:13:58,159 --> 00:14:01,440 line, you say, and I agree with the United order work is and 168 00:14:01,440 --> 00:14:07,879 they should get a thirty forty percent race because it's corporate greed in their minds. 169 00:14:07,279 --> 00:14:16,240 Do they forget it's just what maybe ten years ago GM went bankrupt and 170 00:14:16,600 --> 00:14:20,120 everybody got hurt. Even if you didn't own GM, even if you just 171 00:14:20,159 --> 00:14:22,120 thought, oh, this is great, I didn't own a big deal in 172 00:14:22,159 --> 00:14:28,480 the corporation. You have a pension plan, you have a mutual fund, 173 00:14:28,519 --> 00:14:33,279 you own GM. If you have none of that, okay, say what 174 00:14:33,360 --> 00:14:37,440 you want, do what you want. I don't care. There's very few 175 00:14:37,600 --> 00:14:41,559 people that don't have that have something. And if you're not, and you're 176 00:14:41,639 --> 00:14:46,480 and you're then you're a well being, healthy person that can work, able 177 00:14:46,559 --> 00:14:52,600 body that can work. Then you should be ashamed of yourself because there's so 178 00:14:52,639 --> 00:14:56,399 many job opportunities out there right now. But the problem is we don't have 179 00:14:56,440 --> 00:14:58,840 people that want to work. They don't want to work, they don't want 180 00:14:58,840 --> 00:15:01,960 to get educated, they don't want to do the things that it matters. 181 00:15:03,360 --> 00:15:07,519 I can't tell you how many people I talk to. Let's say half the 182 00:15:07,720 --> 00:15:11,759 time. People don't even show up for their interviews. It's almost like they're 183 00:15:11,759 --> 00:15:16,320 just getting interviews to tell someone they have an interview, whether it's the welfare 184 00:15:16,440 --> 00:15:20,600 or whether it's a job unemployment people, or whether it's their parents family who 185 00:15:20,600 --> 00:15:28,039 knows, and never show up. How do you do that? It means 186 00:15:28,080 --> 00:15:31,759 they don't want choms. So AI robots will take over. If you think 187 00:15:33,120 --> 00:15:39,799 that you can build a car with a robot, think again, because they're 188 00:15:39,799 --> 00:15:46,559 doing it already. Similar in plants, it's half robots now, putting them 189 00:15:46,600 --> 00:15:50,279 on people, tightening up things, making sure the right What are you're gonna 190 00:15:50,320 --> 00:15:56,000 find is that you're getting people are gonna get raises. The only ones that 191 00:15:56,080 --> 00:16:00,840 are gonna keep those raisors are the ones that they don't get rid of. 192 00:16:02,799 --> 00:16:07,480 Every three people will be cut down to two people, and that's how they'll 193 00:16:07,480 --> 00:16:11,320 pay for it. The benefits will go away. I mean, think about 194 00:16:11,360 --> 00:16:15,279 it. You join a corporation because you want benefits. You get all types 195 00:16:15,320 --> 00:16:21,679 of benefits, all types and the great benefits. Now you need to join 196 00:16:21,840 --> 00:16:25,960 and have a work week. I want to work four days a week. 197 00:16:26,399 --> 00:16:29,799 Let's work. Let's mount the time at work. But I want to say 198 00:16:30,000 --> 00:16:33,200 mount to pay, but more, even want more pay, I want more 199 00:16:33,240 --> 00:16:38,960 pay. None of this makes sense. It's unsustainable. And say they give 200 00:16:40,000 --> 00:16:44,120 it to them. That car that you might buy a few years ago at 201 00:16:44,159 --> 00:16:48,559 forty thousand, which is now fifty five sixty grand, there'll be seventy thousand 202 00:16:48,600 --> 00:16:56,840 dollars. We cannot as a country afford this. And by raising the prices 203 00:16:56,600 --> 00:17:00,440 on instruments and saying we'll get people with more money, you are separating the 204 00:17:00,600 --> 00:17:06,759 rich from the poor. You're separating the classes even more and more and more. 205 00:17:10,319 --> 00:17:17,319 And it's not good for America. And all they talk about is how 206 00:17:17,359 --> 00:17:19,599 we have to do all this stuff that's going to cost all this money. 207 00:17:21,079 --> 00:17:29,640 Climate change, climate change, climate change horse manure. You got to get 208 00:17:29,680 --> 00:17:33,960 yourselves going. We have inflation, so we have an administration that won't do 209 00:17:34,039 --> 00:17:38,119 anything to help get inflation down, and we have the Federal Reserve that says 210 00:17:38,160 --> 00:17:41,720 I have to keep raising interest rates longer for higher higher, for longer. 211 00:17:44,599 --> 00:17:51,960 That is not good. Longer for higher means it's gonna take much longer for 212 00:17:52,039 --> 00:17:56,200 things to happen, and eventually we're gonna hit that tipping scale. Credit Card 213 00:17:56,240 --> 00:18:04,000 debt is the highest been in years. Trillions of dollars on credit cards, 214 00:18:04,839 --> 00:18:07,200 which you and I both know. If you have it dead on the credit 215 00:18:07,200 --> 00:18:12,759 card, very few people pay it off. That means it's interest, and 216 00:18:12,799 --> 00:18:17,480 it's not six or seven or eight percent interest. And most people once they 217 00:18:17,480 --> 00:18:19,240 start putting money on there, it's not even fourteen or fifteen. They're up 218 00:18:19,240 --> 00:18:25,319 in the twenties. That is amazing. If you have ten thousand dollars ten 219 00:18:25,519 --> 00:18:29,960 thousand dollars on a credit card, you could be paying two to twenty five 220 00:18:30,039 --> 00:18:36,559 hundred dollars a month a year just on that. That's an extra two hundred 221 00:18:36,599 --> 00:18:40,279 dollars a month just to the interest. If you put anything else on there, 222 00:18:40,319 --> 00:18:44,359 how do you pay it down? People don't pay him down, and 223 00:18:44,400 --> 00:18:48,200 then guess what happens down the road when they can't afford anything and their savings 224 00:18:48,200 --> 00:18:56,839 have been depleted. Bankruptcies go up. There's just so much money that can 225 00:18:56,880 --> 00:19:06,559 be spent to keep every thing going. The pandemic obviously got people money. 226 00:19:06,640 --> 00:19:10,599 Got him in the mindset of not working. People's inherited money. You go 227 00:19:10,680 --> 00:19:17,880 through all that way, they're gonna get money. It's a big mindset when 228 00:19:17,880 --> 00:19:22,359 you go from retiring and having an income to not having an that same income 229 00:19:22,359 --> 00:19:25,960 anymore coming in and now all that money you saved now you have to figure 230 00:19:25,960 --> 00:19:33,119 out how to spend it gingerly prudently so you don't run out of money. 231 00:19:33,400 --> 00:19:36,759 The problem is, we don't know when we're gonna die. You don't know 232 00:19:36,759 --> 00:19:38,319 if you have five years, ten years, twenty years, or thirty years. 233 00:19:40,559 --> 00:19:45,160 So you've got a plan on twenty five, thirty years, you can't 234 00:19:45,200 --> 00:19:47,279 go, well, you know, I figured it out, maybe I only 235 00:19:47,319 --> 00:19:49,079 got five or ten years. I'll spend it all now. Then one happens 236 00:19:49,079 --> 00:19:56,920 when you've got another ten or twenty years. Yes, I agree that it 237 00:19:56,960 --> 00:20:03,359 is a It is a bell curve of spending. You start retiring and you're 238 00:20:03,400 --> 00:20:07,200 late fifties, see your mid sixties. For one or two years, you 239 00:20:07,279 --> 00:20:08,920 kind of you mightbe do something you want to do, but you don't spend 240 00:20:08,920 --> 00:20:12,160 so much. You get a feeling now you know how much you can actually 241 00:20:12,160 --> 00:20:17,039 spend save and how much it's gonna cost. How you start getting a little 242 00:20:17,039 --> 00:20:19,200 bit older and you still have all your energy in your health, you start 243 00:20:19,279 --> 00:20:23,480 spending more and more and more, probably more into like the mid seventies or 244 00:20:23,480 --> 00:20:26,400 so. Then it starts coming off a little bit. And then once you 245 00:20:26,480 --> 00:20:30,400 hit eighties, I've seen people just say, hey, enough enough. I 246 00:20:30,440 --> 00:20:33,519 don't want to travel like that, I don't want to spend like that. 247 00:20:33,599 --> 00:20:37,039 I'm tired. I'm happy to being home. I go get my four o'clock 248 00:20:37,039 --> 00:20:41,440 cocktail. I'm in bed by seven, and everything's great. And so that's 249 00:20:41,440 --> 00:20:45,640 the bell curve. You start off slower, you start spending money in the 250 00:20:45,680 --> 00:20:49,359 middle, and then you start spending less later on. It's just natural. 251 00:20:51,039 --> 00:20:55,799 So I always talk to people about don't worry about spending some money between you're 252 00:20:55,839 --> 00:21:00,839 sixty five and eighty years old, but don't overspend end, knowing that down 253 00:21:00,960 --> 00:21:03,319 the road is going to be less. But you have to put a plan 254 00:21:03,440 --> 00:21:07,359 together. You gotta you have to know how much money you're gonna be getting 255 00:21:07,920 --> 00:21:11,440 or assuming you're gonna get me time, and almost how much it's gonna your 256 00:21:11,440 --> 00:21:15,359 expensives are gonna be. And there's always something that comes up. Always, 257 00:21:17,400 --> 00:21:18,920 So you look at the world right now, you look at the situation, 258 00:21:19,039 --> 00:21:23,759 go, hey, I should be buying gold. And why did they say 259 00:21:23,759 --> 00:21:27,799 a few months ago all these gold all these gold commercials, all these gold 260 00:21:27,839 --> 00:21:33,720 things, and now Costco is touting that they're selling all these gold bars and 261 00:21:33,759 --> 00:21:41,640 they're selling out of them. Okay, gold keeps dropping if we have inflation, 262 00:21:41,759 --> 00:21:45,920 now, why is gold dropping? That's why people usually buy gold. 263 00:21:47,480 --> 00:21:51,000 Okay, so you're gonna buy gold for safety. The war's gonna go to 264 00:21:51,400 --> 00:21:52,640 hell of the hand basket. I want to I want to have gold. 265 00:21:52,720 --> 00:21:57,400 Okay, what are you gonna do with the gold? I promise you you 266 00:21:57,440 --> 00:22:02,160 can't go to the restaurant I've aw some gold and say hey, thank you 267 00:22:02,200 --> 00:22:04,559 for my sandwich or my steak or whatever it is. It's not gonna work 268 00:22:04,599 --> 00:22:10,279 it that way. There will be some type of bartying system. We ever 269 00:22:10,359 --> 00:22:15,359 got there, I hope we don't. But we've always said bullets and guns 270 00:22:17,240 --> 00:22:21,039 will be worth more than gold, if that ever got to that point. 271 00:22:21,759 --> 00:22:27,279 Gold does not back anything anymore. It's an emotional asset that bought and sold, 272 00:22:30,240 --> 00:22:34,400 bought and sold, and no strong dollars oil has effect on gold. 273 00:22:34,440 --> 00:22:41,200 I get that. But gold itself used to back the dollar, okay, 274 00:22:41,240 --> 00:22:45,039 and that's why it was so strong or weak, depending what the dollar was 275 00:22:45,119 --> 00:22:49,359 doing. We do not back to dollar, We do not back to Europe, 276 00:22:49,400 --> 00:22:53,319 we do not back to yend. We don't back anything with gold. 277 00:22:56,079 --> 00:23:00,359 Gold is an industrial commodity, but people feel they need to have it when 278 00:23:00,400 --> 00:23:04,880 they're scared and there's fear and all, and that's fine, that's fine, 279 00:23:07,039 --> 00:23:11,759 But treat it like every other investment. It goes up and it goes down. 280 00:23:12,119 --> 00:23:15,480 When you have inflation is supposed to go up, then why is it 281 00:23:15,480 --> 00:23:18,759 going down. Maybe we're not gonna have inflation. Maybe inflation is gonna come 282 00:23:18,759 --> 00:23:22,799 down. A lot of talk about soft landing, straw hard landings. Nobody 283 00:23:22,880 --> 00:23:26,000 knows until it's over. I know this. It's been a horrible three months 284 00:23:27,319 --> 00:23:33,880 July August. Since July, we've been down. August in September, October 285 00:23:33,960 --> 00:23:36,559 is usually puts in the bottom. When that happens, in the market's rally 286 00:23:36,640 --> 00:23:38,559 to the end of the year, when we've been up to July, when 287 00:23:38,559 --> 00:23:44,920 we've been up through July and August and Septembers are down. The market has 288 00:23:44,960 --> 00:23:47,799 always rallied to the end of the year, and that doesn't mean it's rallying 289 00:23:47,920 --> 00:23:51,680 from here. Doesn't mean we're not gonna go down first. Remember most of 290 00:23:51,680 --> 00:23:53,920 the major crashes all happened in October. Only one didn't. That was a 291 00:23:55,039 --> 00:23:59,920 pandemic. All the others have. I don't know if we're falling on on 292 00:24:00,039 --> 00:24:03,119 over going up. I know this risk evaluations is higher in the market, 293 00:24:03,440 --> 00:24:08,759 so make sure you're mitigating some risk, but you invested so if the markets 294 00:24:08,759 --> 00:24:14,160 do go higher, you will still be able to participate. We'll be back 295 00:24:14,200 --> 00:24:17,759 with the whole crew. We do appreciate you, and I certainly appreciate for 296 00:24:17,799 --> 00:24:21,720 the thirty five years of doing this, thirty four years doing this radio show. 297 00:24:22,119 --> 00:24:27,200 All the people that listen, we'll be right back. Say it's all 298 00:24:27,400 --> 00:24:33,160 a name. Oh, welcome back, everybody. It's Sunday morning. It's 299 00:24:33,440 --> 00:24:36,920 money matter. It's time. I got Dave, Dylan, Todd and myself 300 00:24:36,960 --> 00:24:40,519 Dean here to talk about all the stuff for this week. Pick a topic 301 00:24:40,559 --> 00:24:44,119 and we can talk about it and how it's affecting your money. So much 302 00:24:44,160 --> 00:24:45,720 going on this week, you had a lot to talk about on the monologue. 303 00:24:45,720 --> 00:24:49,160 I just still can't get over Biden going on the picket line with the 304 00:24:49,240 --> 00:24:55,519 UAW Maine. Isn't he president of the United States not president of the workers 305 00:24:55,519 --> 00:24:59,119 administrations? Just about when do you take but I mean, how do you 306 00:24:59,160 --> 00:25:02,319 take sides? When did when did that step? Well, here's the worst 307 00:25:02,319 --> 00:25:06,519 part of it, though, Now every other union can believe that they can 308 00:25:06,559 --> 00:25:08,400 go on strike and the support of the president. Well the president. Yeah, 309 00:25:08,519 --> 00:25:12,039 the day after that, the Las Vegas workers can go on strike. 310 00:25:12,079 --> 00:25:15,720 You got well, Hollywood strike was the only one that ended the strips. 311 00:25:15,680 --> 00:25:22,519 No, the hospitality workers, the writer strike over that strikes. There's other 312 00:25:22,559 --> 00:25:26,920 workers in Vegasteine, there's Yeah, the writer strike is over, but it's 313 00:25:26,960 --> 00:25:30,480 for the ones that got done with it first. Are the late night crew, 314 00:25:30,799 --> 00:25:33,920 like the NIT late night shows. Scripted shows might take a little longer. 315 00:25:34,920 --> 00:25:37,359 Nice nice to have the late night crew. Bactually, we can hear 316 00:25:37,559 --> 00:25:40,799 all the things that they're wrong with Trump's right, Yeah, pretty much, 317 00:25:40,880 --> 00:25:42,799 yeah, yeah, but they are. I mean, if you're talking about 318 00:25:42,839 --> 00:25:45,920 it though. What they did too is a big issue was the AI generated 319 00:25:47,680 --> 00:25:51,319 scripts. Right, So now those aren't going to be considered part of it. 320 00:25:52,039 --> 00:25:53,839 They're not going to be considered source material and can't be used to undermine 321 00:25:53,839 --> 00:25:56,759 writers credit and separated rights. So it's gonna be a whole different thing. 322 00:25:56,839 --> 00:26:03,279 I was honestly looking forward to it an entire winter of no new shows. 323 00:26:03,480 --> 00:26:06,680 He caught up on all the stuff that I hadn't seen over the years. 324 00:26:07,599 --> 00:26:10,240 You have to give up, Yeah, I guess so, I guess we're 325 00:26:10,240 --> 00:26:12,839 gonna be be back in that then. Now now the biggest the new strike, 326 00:26:14,079 --> 00:26:18,319 right, the government Congress is on strike. No, they don't want 327 00:26:18,319 --> 00:26:22,880 to do the job shut out. They canceled their planned recess because of the 328 00:26:22,519 --> 00:26:26,559 lumin shutdown. Yeah, the Loomen shutdown. What do you mean playing they 329 00:26:27,079 --> 00:26:30,240 haven't planned recess always recess. Yeah, yeah, but you got to talk 330 00:26:30,240 --> 00:26:33,920 about as a big thing all the time. If they do, you want 331 00:26:33,960 --> 00:26:37,519 you're not many times the budget's been by balanced balanced. Yeah, they were 332 00:26:37,519 --> 00:26:41,559 talking about it the other night. Twice five years or four times, four 333 00:26:41,599 --> 00:26:45,920 times, seven times? Last one was Clinton? Right, it could be 334 00:26:45,119 --> 00:26:48,359 well, it was the last time we weren't the deficit, So I don't 335 00:26:48,400 --> 00:26:51,319 know if it's the last time we're balanced. But well Clinton Clinton had the 336 00:26:51,319 --> 00:26:55,400 benefit of the dot com the dot com boom that was Clint. That wasn't 337 00:26:55,440 --> 00:26:57,680 wasn't something that Clinton did because it was really a day president. Yeah, 338 00:26:57,720 --> 00:27:02,440 I get it, but every president since then has spent so much money because 339 00:27:02,440 --> 00:27:04,960 they knew that was a trick to it. Now increasing as we increase saw 340 00:27:06,519 --> 00:27:08,640 our economy or GDP. I get it, it's a percentage of it. 341 00:27:10,000 --> 00:27:14,759 But when it's not like lately, the GDP wasn't increasing like it was before, 342 00:27:15,039 --> 00:27:18,440 you have to decrease your spending. Yeah, you know. It just 343 00:27:18,519 --> 00:27:22,200 bothers me to watch how everyone said, well, you can't run the government 344 00:27:22,240 --> 00:27:26,720 like a business. Well why not? There's spending was the highest just been 345 00:27:26,839 --> 00:27:30,440 in relation to the GDP since World War Two, and I understand why it 346 00:27:30,440 --> 00:27:33,920 would be accelerated during the World War. Right, that makes sense. Why 347 00:27:34,000 --> 00:27:37,440 is there Why isn't their reasoning though you can't run it like a business. 348 00:27:37,640 --> 00:27:41,640 Do they have any actual reason to say it or that's just what they hear. 349 00:27:42,000 --> 00:27:47,079 The Devil's advocate point is when you run a government like a business, 350 00:27:47,160 --> 00:27:51,880 you start hurting individuals and so you look at people as dollar signs and not 351 00:27:52,160 --> 00:27:56,359 the potential impacts that the family could have, and it goes a little more 352 00:27:56,359 --> 00:28:00,839 emotional than just economic. But I disagree because now businesses look get through employees 353 00:28:00,839 --> 00:28:04,759 on how they can benefit them and promote them, and that's where benefits came 354 00:28:04,799 --> 00:28:08,839 from, and holidays and time off and and and recognition. I mean, 355 00:28:08,880 --> 00:28:14,839 there's a lot of psychology, behavioral psychology that's going to all this stuff we 356 00:28:14,920 --> 00:28:18,480 need at the highest level. You know what the problem is, half of 357 00:28:18,480 --> 00:28:21,519 them are over eighty years old, and it's always fascinating that half. But 358 00:28:21,920 --> 00:28:26,200 they'll introduce a regulation that is supposed to help the common person and it ends 359 00:28:26,240 --> 00:28:29,480 up just hurting them, like we see with this oil and they don't produce 360 00:28:29,799 --> 00:28:33,079 or don't have new projects coming online, we don't have new supply, and 361 00:28:33,079 --> 00:28:37,559 then we see oil surging when inflation is still around. But the presidents are 362 00:28:37,680 --> 00:28:44,200 making decisions based on fifty not forty nine percent. The other forty nine percent 363 00:28:44,200 --> 00:28:48,200 goes to the wayside. Because if you ask people, would you be okay 364 00:28:48,240 --> 00:28:52,519 if we were self sustained on energy, I gotta believe eighty percent would say 365 00:28:52,599 --> 00:28:57,240 yes. Eighty percent would say yes, let's become an exporter. But no 366 00:28:57,279 --> 00:29:02,200 one explains it to them. Why all they explained is oil is bad, 367 00:29:02,559 --> 00:29:08,279 bad is pollution. Pollution is Cobbins and the common foots and your kids don't 368 00:29:08,279 --> 00:29:11,759 have a place to think. You right, and you and you're killing and 369 00:29:11,799 --> 00:29:15,640 you're killing your generations down the road, you know. And I so selegate 370 00:29:15,720 --> 00:29:19,640 to to speak to real people that have done real history on the millions and 371 00:29:19,680 --> 00:29:23,359 millions of years that the earth has been here, and the axises that change 372 00:29:23,359 --> 00:29:26,759 and all this other stuff. Your realize that we've had a whole bunch of 373 00:29:26,759 --> 00:29:30,960 ice ages and a whole bunch of melting down and everything else. And then 374 00:29:30,960 --> 00:29:37,160 we're just here for a mental secting of what goes on, the whole evolution 375 00:29:37,200 --> 00:29:40,759 that's been here in the universe for millions of years. The biggest concerned Dean, 376 00:29:40,799 --> 00:29:42,680 when you and I were growing up is the coming ice age. Remember 377 00:29:42,960 --> 00:29:45,839 they were concerned that the earth was going to freeze over because there's been a 378 00:29:45,839 --> 00:29:49,400 period of cooler than expected weather. Did that become a political point too? 379 00:29:49,680 --> 00:29:52,160 Oh? I don't think so. Back then, Dean, I don't they 380 00:29:52,160 --> 00:29:55,279 put. What they did is they were concerned about it and they put up 381 00:29:55,279 --> 00:30:00,079 satellites are still up there today to monitor global cooling. The difference between then 382 00:30:00,200 --> 00:30:03,960 and now is the twenty four seven media absolutely right. And if you're just 383 00:30:04,000 --> 00:30:07,200 constantly hearing that the nice age is gonna happen, Nice age is gonna happen, 384 00:30:07,240 --> 00:30:11,200 you're gonna eventually start believing it. If you're susceptible to that type of 385 00:30:11,240 --> 00:30:14,000 stuff. That's all TNN, you know, which, which was the Turner 386 00:30:14,039 --> 00:30:17,079 News Network now it's the Trump News Network because that's all they talk about. 387 00:30:17,920 --> 00:30:21,599 You know, it sounded great on paper, twenty four seven news, but 388 00:30:21,640 --> 00:30:25,920 there's not news twenty four hours a day. And so a couple of housekeeping 389 00:30:25,960 --> 00:30:27,920 things from last weekday that we talked about and we didn't quite get answered. 390 00:30:29,559 --> 00:30:33,720 The grocery delivery business. Did a little research on that. There's a bunch 391 00:30:33,759 --> 00:30:38,480 of different companies that deliver groceries, including the stores themselves. Instacart is the 392 00:30:38,519 --> 00:30:44,680 big eight hundred pound guerilla in that space. Instacart had come public last week 393 00:30:45,200 --> 00:30:48,359 a week ago, and we were kind of wondering, why do you even 394 00:30:48,400 --> 00:30:52,400 need these people? Apparently they they're pretty predominant in that space. The other 395 00:30:52,440 --> 00:30:56,000 thing we talked about, which which I had. I was almost doing it 396 00:30:56,039 --> 00:31:00,559 as a joke. The Amazon's new technology that just walk out. And my 397 00:31:00,680 --> 00:31:03,440 response was, hey, they're doing that all over the country. Just get 398 00:31:03,440 --> 00:31:07,240 your stuff and walk out, right. But but we got more technical and 399 00:31:07,319 --> 00:31:11,240 I didn't have details than I do I have details now, Dean. So 400 00:31:11,359 --> 00:31:15,359 you apologizing, I apologize. Yes, the technology was finally the technology was 401 00:31:15,400 --> 00:31:19,839 developed by Amazon. That just walk out technology was developed by Amazon, and 402 00:31:21,519 --> 00:31:25,200 a store would register for the service, and the startup costs are around a 403 00:31:25,279 --> 00:31:29,480 quarter of million bucks per store. Okay, but then you have no employees 404 00:31:29,880 --> 00:31:33,920 really or very few employees, maybe one to monitor, kind of like the 405 00:31:33,920 --> 00:31:37,240 self check out at the grocery store. I get one person standing. When 406 00:31:37,240 --> 00:31:41,279 you walk in, you scan your palm or your credit card, and when 407 00:31:41,279 --> 00:31:45,279 you walk out, whatever you have with you gets charged today. So let 408 00:31:45,319 --> 00:31:48,359 me ask your question. So you're saying, I have a choice palm or 409 00:31:48,400 --> 00:31:51,559 credit card, why wouldn't I do my palm? My palm has no way 410 00:31:51,599 --> 00:31:53,160 they can get money off my palm whatever you want. You know, your 411 00:31:53,200 --> 00:31:56,519 palmer is registered, your prom ready to me into your account. Yeah, 412 00:31:56,680 --> 00:32:01,359 and so you can't get not get into the store unless you used the technology. 413 00:32:01,519 --> 00:32:06,400 The entire store would would be this Amazon technology. Okay, so here's 414 00:32:06,400 --> 00:32:07,960 my caveats of that. What happens when I'm with my best friend, and 415 00:32:08,039 --> 00:32:10,920 my best friend I put my palm on it and he runs in the door 416 00:32:10,960 --> 00:32:15,920 with me. Has Amazon stop? You know? It's like anything the bells 417 00:32:15,920 --> 00:32:19,839 that go off that. Yeah, it's just like when you're in the store 418 00:32:19,839 --> 00:32:22,960 and you're trying to rip off some dresses or something. Yeah, and they 419 00:32:22,039 --> 00:32:25,160 and they get caught with the same way of getting into ufa basketball game. 420 00:32:25,160 --> 00:32:28,240 You've got to take a year, buddy, doesn't you both? You know, 421 00:32:28,279 --> 00:32:30,319 he rushes in, I think somebody would stop him. The same same 422 00:32:30,319 --> 00:32:32,720 thing with the store. There has to be a monitor or two there. 423 00:32:34,039 --> 00:32:38,039 But the interesting part about this is if this were adopted widely adopted, I 424 00:32:38,079 --> 00:32:43,240 could see it end in shoplifting. And we've got a huge shoplifting problem in 425 00:32:43,279 --> 00:32:46,960 this country, primarily because of what's going on on the Left coast. Yeah, 426 00:32:47,000 --> 00:32:50,519 I mean, especially if you have a store that doesn't allow anyone with 427 00:32:50,559 --> 00:32:53,759 a mask on into the store so you can visually see it is whoever steals 428 00:32:53,799 --> 00:32:57,720 it, you can then you know go after them. Well you have to 429 00:32:57,759 --> 00:33:00,119 do is make sure, if you go in and steal something, you can 430 00:33:00,160 --> 00:33:05,160 get arrested for it. Not all, you know what, they probably need 431 00:33:05,160 --> 00:33:08,960 it, get all, they're out of work. It's unders in Northern California 432 00:33:09,000 --> 00:33:13,319 where they've decriminalized anything under a thousand bucks. Right, you can go in 433 00:33:13,359 --> 00:33:15,000 there and steal seven eight hundred bucks and it's not a crime. I saw 434 00:33:15,000 --> 00:33:19,759 this guy did that where it was a thousand dollars and he put everything in 435 00:33:19,799 --> 00:33:23,400 the store was like a thousand dollars and one a thousand one dollars, all 436 00:33:23,400 --> 00:33:25,160 of that. But then when you went to go check out, you'd be 437 00:33:25,160 --> 00:33:29,079 a discount for whatever it is, back to like the normal price. So 438 00:33:29,119 --> 00:33:30,880 he got it. So they can't shoplift. That's funny. It's it's just 439 00:33:30,920 --> 00:33:36,240 insane. And of course what's happening is companies like Walgreens closed all their San 440 00:33:36,279 --> 00:33:39,480 Francisco stores. Now Targets closing stores. Targets are going to close three stores 441 00:33:39,480 --> 00:33:44,440 in San Francisco, right, two stars in Seattle, three stores in Portland. 442 00:33:44,559 --> 00:33:46,640 What do those have in common those three places? You know? I 443 00:33:46,640 --> 00:33:51,720 mean, it's so much crime, so much shoplifting, so much violence. 444 00:33:52,039 --> 00:33:53,880 They're concerned for their employees. Uh, they said, you know what, 445 00:33:54,039 --> 00:33:57,839 here's here's the bottom line, or you just shut them down. And they 446 00:33:57,839 --> 00:34:00,640 don't. They said, they're not really concerned about the pros. It's not 447 00:34:00,680 --> 00:34:04,240 like it's a profitability issue. It's purely a safety. They lost a billion 448 00:34:04,279 --> 00:34:08,239 dollars, lost a billion dollars last year due to shoplifting, and now you 449 00:34:08,239 --> 00:34:12,639 have these shoplifting mobs, these slash mobs. Yeah, they get all together 450 00:34:12,719 --> 00:34:15,840 and then they plan it online and they're able to to you know, it's 451 00:34:16,039 --> 00:34:21,199 it's pretty gross to see that. You know, people are using technology in 452 00:34:21,239 --> 00:34:22,880 that way. You know, you always know that at the end of the 453 00:34:22,960 --> 00:34:25,760 day, technology is going to be used by the criminals. But it's man, 454 00:34:25,840 --> 00:34:29,599 it sucks when they get going to send drones in pick up the stuff 455 00:34:29,639 --> 00:34:31,360 and come out. But okay, let's just walk out. Technology. If 456 00:34:31,360 --> 00:34:35,079 it were adopted, widely adopted, that's going to shut it down. It 457 00:34:35,119 --> 00:34:37,480 seems to me. I don't think it could. Yeah, I think it 458 00:34:37,480 --> 00:34:43,239 would be a real step in the right direction towards cutting back or maybe even 459 00:34:43,280 --> 00:34:47,519 just eliminating shoplifting all together. You can't grab anything if you've identified yourself. 460 00:34:47,800 --> 00:34:52,599 You know, that's all technology, and that's why technology is where we have 461 00:34:52,639 --> 00:34:54,880 to stay to be the leaders in the world. Yeah, sure, and 462 00:34:54,920 --> 00:34:58,880 we gotta, you know, make sure China is not there and there's nobody 463 00:34:58,920 --> 00:35:01,760 else. But we have to just the leaders of the world. And that 464 00:35:01,880 --> 00:35:05,719 happens, and it costs money to do that, and people forget. They 465 00:35:05,719 --> 00:35:09,360 all want money in their own pocket. Corporations won't have money to develop and 466 00:35:09,440 --> 00:35:14,559 research if they're just paying out all these wages all the time. I believe 467 00:35:14,559 --> 00:35:15,800 me. I think everyone needs to get paid what there worth, right, 468 00:35:16,079 --> 00:35:21,559 I do, but not everybody should get the same amount of money just because 469 00:35:21,840 --> 00:35:24,039 we're on strike. No, No, couldn't agree with you, Morty. 470 00:35:24,119 --> 00:35:29,719 And I think taking I think the president taking sides is dangerous. I think 471 00:35:29,719 --> 00:35:31,800 it's they're very dangerous. But it's what they're doing now. It's like, 472 00:35:31,960 --> 00:35:35,039 you know, they think they're getting votes out of it. I don't know. 473 00:35:35,400 --> 00:35:37,639 I'm tired of it. I don't like it. And at the end 474 00:35:37,639 --> 00:35:40,800 of the day, it hurts us as a country. And Ford's gonna say, 475 00:35:40,960 --> 00:35:44,199 I don't want to school you guys. We're gonna go to Mexico, 476 00:35:44,880 --> 00:35:46,280 all right. They got the money. When I spend a billion dollars in 477 00:35:46,400 --> 00:35:49,440 and spend a billion dead and then they don't have to spend it again. 478 00:35:49,480 --> 00:35:52,079 All right, we'll be right back. It is the money amount of show. 479 00:35:52,360 --> 00:35:55,960 We all appreciate you've been listening and working with us and enjoying the show. 480 00:35:57,039 --> 00:36:02,920 Thank you, it's all welcome back. It's the money amount of show. 481 00:36:02,960 --> 00:36:07,719 Dean Greenberg, Dylan Greenberg, Odd Glick, and that man with the 482 00:36:07,760 --> 00:36:12,480 white hair, Dave Sherwood. We'll here to bring to you. You know, 483 00:36:13,039 --> 00:36:14,880 we've been doing this a long I've been doing a long time. You 484 00:36:14,920 --> 00:36:16,239 guys been doing a long time now too. That I had black hair, 485 00:36:17,400 --> 00:36:22,679 black hair nineteen ninety I started doing the show. And it's interesting when you're 486 00:36:22,679 --> 00:36:25,199 going around and because it's radio, so people don't know really what you look 487 00:36:25,280 --> 00:36:29,960 like. But probably the most interesting one was the other night. Most of 488 00:36:29,960 --> 00:36:34,079 you guys know, I coach football, and I was on the sidelines and 489 00:36:34,599 --> 00:36:38,320 the ref is on our sidelines and I'm walking out plays or doing something and 490 00:36:38,360 --> 00:36:43,599 he turns around and he says, I know that boy. What's your name? 491 00:36:44,480 --> 00:36:47,400 I go, why you're gonna flag meate? I helped me because I 492 00:36:47,920 --> 00:36:51,679 say Greenberg. He guys, I knew it. I love you a radio 493 00:36:51,800 --> 00:36:55,599 show. Good good, don't call any penalties. It's like that funny recognize 494 00:36:55,639 --> 00:37:00,239 your boy, first time that's happened, that a ref that game has actually 495 00:37:00,800 --> 00:37:05,960 heard my voice and didn't then, and that's cool. It's a distinctive voice 496 00:37:05,960 --> 00:37:09,199 for sure. I think you know, the h this past week was as 497 00:37:09,239 --> 00:37:14,480 if it wasn't bad enough, having September being down every single week, right 498 00:37:15,199 --> 00:37:17,800 seven of the last nine weeks the market's been down. It gets a little 499 00:37:17,800 --> 00:37:22,760 depressing. We always take steps ahead of that. We saw it coming, 500 00:37:22,800 --> 00:37:24,880 We've talked about it on the show. The market's getting a little ahead of 501 00:37:24,880 --> 00:37:29,440 herself and we've taken some some defensive steps deeing. But it's kind of like, 502 00:37:29,639 --> 00:37:30,840 you know, an umbrella's good in a in a rain storm, but 503 00:37:30,880 --> 00:37:35,519 when the monsoon's hit, it's not that great. Yeah, it also depends 504 00:37:35,519 --> 00:37:37,840 what you have in there. The same things that made so much money on 505 00:37:37,880 --> 00:37:40,000 the upside, they came down the hottest, so that could have affected a 506 00:37:40,039 --> 00:37:44,599 little bit. But you know what, you got fixed income. We've got 507 00:37:44,920 --> 00:37:49,000 the inverse funds on for most people, correct, you know, some people 508 00:37:49,000 --> 00:37:52,360 having sure it puts. We raised a bunch of cash. We're not fully 509 00:37:52,400 --> 00:37:54,320 invested, and that's where we stay right now. Yeah, I think we 510 00:37:54,480 --> 00:37:59,039 were down probably half of what the market was down in most accounts. And 511 00:37:59,039 --> 00:38:00,440 and like I said, the LLA does help you when it's raining, but 512 00:38:00,440 --> 00:38:02,960 if it gets going monsoon, you're gonna get wet. But you know, 513 00:38:04,000 --> 00:38:07,760 it's understanding too that people aren't even happy when that happens. Okay, because 514 00:38:07,800 --> 00:38:12,000 people I don't think people invest with. Some people don't invest with the idea 515 00:38:12,039 --> 00:38:15,280 that they they say they can handle the markets going down, but if they 516 00:38:15,280 --> 00:38:17,480 see it go down three or four percent, it affects them. It's just 517 00:38:17,519 --> 00:38:22,599 funny that. But you're absolutely right, absolutely right. I mean last year 518 00:38:22,199 --> 00:38:25,159 twenty two was it was a rough year for the market, and of course 519 00:38:25,199 --> 00:38:29,800 in twenty one we got out of all long term bonds. Long term bonds 520 00:38:29,800 --> 00:38:34,920 were down over thirty percent last year. No one knows what they didn't lose, 521 00:38:35,239 --> 00:38:37,800 right, you can't. You can't find out what you didn't lose. 522 00:38:37,119 --> 00:38:42,559 It would have been a nightmare and we and we avoided that. But nobody 523 00:38:42,599 --> 00:38:46,440 talks about that. It's kind of interesting that the market took no prisoners in 524 00:38:46,519 --> 00:38:51,719 the last in the month of September and Video and Lily, two of the 525 00:38:51,760 --> 00:38:57,000 hottest stocks this year. Both have gotten hit more than ten percent, seven 526 00:38:57,039 --> 00:38:59,639 out of last nine weeks. Like I said, it's down, it's it's 527 00:38:59,679 --> 00:39:02,480 it's discouraging aways like that, But it's just a It's like a rubber band. 528 00:39:02,519 --> 00:39:07,880 It just keeps getting pulled further and further back. Eventually it snaps well 529 00:39:07,960 --> 00:39:09,599 upwards. I don't know if you heard when I said it in a monologue, 530 00:39:09,599 --> 00:39:14,199 but when we're up through the month of July and then we're down in 531 00:39:14,239 --> 00:39:22,000 August and September, we usually bottom in October and rally into the end of 532 00:39:22,000 --> 00:39:24,639 the year with an average return about four I think it was four point seven 533 00:39:24,639 --> 00:39:30,840 percent, so that's interesting. The thing to remember is November first through January 534 00:39:30,880 --> 00:39:35,840 thirty first. That three month period is responsible for sixty percent of all games 535 00:39:35,840 --> 00:39:38,239 for the year historically. Now this is just statistics. It doesn't mean it 536 00:39:38,280 --> 00:39:43,760 always happens, but for some reason it does happen like September and if you 537 00:39:43,840 --> 00:39:49,559 love but I use it in a sense. Okay, we'll overvalued in many 538 00:39:49,599 --> 00:39:53,280 areas, so that there's one check the box for risk. We're moving into 539 00:39:53,320 --> 00:39:58,239 the seasons. We rallied for six months more than we thought we would, 540 00:39:58,519 --> 00:40:00,360 so you take it on into a situation say I'm gonna pull back a little 541 00:40:00,400 --> 00:40:05,760 bit now if we fall and now we're in that October time frame and it's 542 00:40:05,800 --> 00:40:07,559 stuff like that, and it goes down a little bit more, but we 543 00:40:07,679 --> 00:40:12,079 have fallen and say, okay, it looks like we can stop moving up. 544 00:40:13,320 --> 00:40:15,960 You do it, But I wouldn't be doing it full long term investment 545 00:40:15,000 --> 00:40:19,559 now, I'd be looking for a bounce, a trade to the end of 546 00:40:19,559 --> 00:40:22,639 the year or so, or to the end of the first quarter. Because 547 00:40:22,719 --> 00:40:27,719 eventually, these problems that we are talking about, they're gonna get resolved. 548 00:40:27,760 --> 00:40:32,039 These are not unresolvable problems. You aw is going to go ahead and resolve 549 00:40:32,079 --> 00:40:37,719 their their their strike. The government is not going to be shut down forever. 550 00:40:38,360 --> 00:40:43,000 They're going to resolve that. Those two things alone probably are worth one 551 00:40:43,079 --> 00:40:45,679 to two percent in the market. And AI is still out there. AI 552 00:40:45,719 --> 00:40:50,760 the thing that drove it higher for five consecutive months, the excitement that took 553 00:40:51,039 --> 00:40:53,880 stocks to levels that we thought were ridiculous. It's still out there, dude, 554 00:40:54,280 --> 00:40:57,679 It's still out there. Inflation is going to get to handle on it 555 00:40:57,679 --> 00:41:00,880 and stuff. What is going to be the surprise that people is next year 556 00:41:01,119 --> 00:41:07,320 when earnings start even making it more overvalued on a decline, and people are 557 00:41:07,360 --> 00:41:09,960 gonna say, here it comes. They're going to anticipate. Remember, markets 558 00:41:10,039 --> 00:41:14,639 anticipate what's going to happen. They don't do it while you're in it. 559 00:41:14,719 --> 00:41:17,559 Well, that's the thing is these quarter three earnings reports, I mean quarter 560 00:41:17,559 --> 00:41:22,639 to two earnings reports coming into that's gonna be really important on valuations and guidance 561 00:41:22,920 --> 00:41:27,239 behind It's more than anything, right, But I mean we are still overvalued 562 00:41:27,280 --> 00:41:29,719 as well though, you know what I mean, So valuations are going to 563 00:41:29,800 --> 00:41:31,840 have some play into it. But going back on that AI point, a 564 00:41:31,880 --> 00:41:35,599 lot of the things that we've talked about in the show before is that there's 565 00:41:35,639 --> 00:41:39,679 really no profitability that's coming from it right now. There is a whole bunch 566 00:41:39,679 --> 00:41:44,559 of costs associated with it right now, and a lot of people don't realize 567 00:41:44,760 --> 00:41:49,639 what is AI caught? What use electricity, and it's a lot more than 568 00:41:49,679 --> 00:41:52,159 you would think. You know, you hear all these things about bitcoin. 569 00:41:52,199 --> 00:41:53,519 You know it's going to boil the oceans. All the electric that it uses 570 00:41:53,760 --> 00:41:59,519 AI uses is the same type of electricity, right It's using really high powered 571 00:41:59,639 --> 00:42:01,679 process chips that takes a lot of power to run and They're not just one 572 00:42:01,719 --> 00:42:05,920 company doing a right there's we know there's a lot of companies out there. 573 00:42:06,159 --> 00:42:08,360 So for these companies who are spending a lot of money on this fuel that's 574 00:42:08,440 --> 00:42:12,920 right now bringing them no investment back. If eventually they're not able to find 575 00:42:12,960 --> 00:42:15,079 a way to make it profitable in some type of short run period, they 576 00:42:15,079 --> 00:42:17,719 could be you know, short on cash and may have to give up an 577 00:42:17,719 --> 00:42:21,840 AI project because of it. Right now, it's just R and D. 578 00:42:22,000 --> 00:42:27,000 It's very similar to the charging stations Todd the electric vehicle charging stations, where 579 00:42:27,239 --> 00:42:30,400 you're building this infrastructure, you know, and you're getting revenue, but not 580 00:42:30,559 --> 00:42:35,480 nearly the amount of revenue that you're putting out. And charge Point is the 581 00:42:35,679 --> 00:42:39,599 number one charging station company. They have more charging stations than anyone else. 582 00:42:39,800 --> 00:42:45,000 Unfortunately, they're primarily level two charging stations, which don't help you when you're 583 00:42:45,039 --> 00:42:49,599 traveling from point A to point B. They help you when you're in a 584 00:42:49,679 --> 00:42:54,320 hotel. I could see every hotel in the country having some level two chargers, 585 00:42:54,400 --> 00:42:59,159 maybe a dozen or two of them. Ultimately, you know, streaming 586 00:42:59,199 --> 00:43:02,280 is another in the industry that is just building their infrastructure right. I mean, 587 00:43:02,480 --> 00:43:06,320 Disney says they're not profitable. They look to be profitable next year. 588 00:43:06,840 --> 00:43:09,159 There's a lot of streaming services that you know, could look in. Another 589 00:43:09,199 --> 00:43:13,480 industry that could be looking to get profitable is the cannabis industry. If they're 590 00:43:13,480 --> 00:43:16,960 able to get the New Banking Act passed and they can get that rescheduled from 591 00:43:16,960 --> 00:43:20,920 a Schedule one to a Schedule three, they can then ask the IRS for 592 00:43:20,960 --> 00:43:23,679 tax deductions, which changes the game completely for those stocks. Right. So, 593 00:43:23,719 --> 00:43:28,119 I actually had had a little bit more on charge Point because they were 594 00:43:28,199 --> 00:43:30,679 upgraded to a buy Well I thought we were going to do is on Evy 595 00:43:30,679 --> 00:43:32,480 garage. No, that Evy garage, a whole nother deal. This is 596 00:43:32,519 --> 00:43:36,280 this is a charge that we're talking about charge Point here. This is this 597 00:43:36,360 --> 00:43:39,119 is not the Evy garage. This is UBS saying that the recent selling, 598 00:43:39,400 --> 00:43:43,719 which has been massive, right, has gone from twenty dollars down to four 599 00:43:43,800 --> 00:43:50,360 and a half, creation an attractive risk reward for charge Point. We've been, 600 00:43:51,199 --> 00:43:53,760 We've been, We've been, we've been really. You know, charge 601 00:43:53,760 --> 00:43:59,000 Point was recommended by an analyst we follow pretty closely into and the more I 602 00:43:59,079 --> 00:44:02,559 thought about it and the more I learned about charging, the less I believed 603 00:44:02,599 --> 00:44:08,440 in charge Point and uh, I guess I should have followed my instincts rather 604 00:44:08,480 --> 00:44:13,159 than the analysts, because I, in this particular case, apparently knew more 605 00:44:13,159 --> 00:44:15,559 about than he did. Ye charge point, have any level three chargers? 606 00:44:15,679 --> 00:44:21,360 Sixteen hundred? How many Level two do they have? They have sixty thousand 607 00:44:21,480 --> 00:44:27,159 chargers? Got so what's that fifty eighth four? Level two and the level 608 00:44:27,159 --> 00:44:30,119 two chargers have a place. I mean, you're gonna make somebody's gonna make 609 00:44:30,159 --> 00:44:35,960 a lot of money off level two chargers once every hotel in the country adopts 610 00:44:36,000 --> 00:44:37,800 them. So it's not something that they can stick with level two and make 611 00:44:37,840 --> 00:44:40,599 money. It's not something that's going to go by the just get out there. 612 00:44:40,639 --> 00:44:45,000 No, they'll they'll absolutely make money. But the problem is that right 613 00:44:45,000 --> 00:44:49,079 now is all outlay, Like like tabas, it's all outlay, not a 614 00:44:49,079 --> 00:44:52,199 lot of revenue and not a lot of revenue, and the outlay is greater 615 00:44:52,239 --> 00:44:54,719 than the revenue. And of course there's always concerned about, well, maybe 616 00:44:54,760 --> 00:44:58,719 they'll run out of money, maybe they can't borrow any more money. I 617 00:44:58,800 --> 00:45:01,320 keep thinking, at some point point, somebody, and I don't know who 618 00:45:02,719 --> 00:45:07,280 is going to buy them. I just keep thinking, at some point you've 619 00:45:07,280 --> 00:45:13,400 got sixty thousand level two chargers out there that have a value. Certainly most 620 00:45:13,480 --> 00:45:16,760 of them at at hotels, hospitals, places where you're going to spend some 621 00:45:16,800 --> 00:45:22,199 time. Because the level two charger does about forty miles an hour of charge. 622 00:45:22,880 --> 00:45:28,719 So if you're Carl do a three three hundred mile range, it's going 623 00:45:28,800 --> 00:45:30,079 to take you, you know, seven eight hours to charge it up. 624 00:45:30,079 --> 00:45:34,719 Well that you don't, you're not going to do that between here and HELI 625 00:45:34,760 --> 00:45:37,840 Ben, you know. That's that's something we're like overnight at a hotel. 626 00:45:37,920 --> 00:45:42,159 The only way that gets bought out, I think is if they're struggling to 627 00:45:42,199 --> 00:45:45,400 pay stuff for the next couple of years and then somebody comes in and combining 628 00:45:45,480 --> 00:45:49,440 them. But if they're starting to show progress, yeah, it should be 629 00:45:49,480 --> 00:45:52,440 fine. I think that's the point is. And right now they haven't shown 630 00:45:52,480 --> 00:45:54,960 much freskin like raytheon raytheon stock. We're watching it very closely. Uh. 631 00:45:55,000 --> 00:46:00,760 It got down near a three year low this week and then on it rallied 632 00:46:00,800 --> 00:46:02,840 on Tuesday and a bad tape it rallied. I thought maybe the bottom, 633 00:46:02,920 --> 00:46:06,639 here's the bottom, and then it sold off a little bit on Wednesday and 634 00:46:06,639 --> 00:46:10,519 Thursday, and then finished the week kind of up a pointer, So no 635 00:46:10,599 --> 00:46:15,199 indication that's bottomed yet. No analysts coming out and saying, boy, this 636 00:46:15,280 --> 00:46:17,519 is the greatest time ever to buy raytheon stock. No, they're gonna have 637 00:46:17,519 --> 00:46:22,360 to get their act together on the engine, the prep would the engine, 638 00:46:22,360 --> 00:46:23,559 and then once they do, then they'll figure out where they're going with I 639 00:46:23,599 --> 00:46:27,960 think the uncertainty dean where we're thinking five hundred million dollar problem and then they 640 00:46:27,960 --> 00:46:30,440 took a three billion dollar right off, right. I think that's what's kind 641 00:46:30,440 --> 00:46:35,079 of got people a little shook. All Right, So guys, we talk 642 00:46:35,159 --> 00:46:39,960 a lot about stocks and allocations and risky awards. Remember that's because of the 643 00:46:40,000 --> 00:46:43,920 way a firm is set up as a well, one big team. We 644 00:46:44,000 --> 00:46:49,199 work together. We do the financial plan first. But what we do that 645 00:46:49,280 --> 00:46:52,159 is different is we also manage the money. So that's why we're able to 646 00:46:52,199 --> 00:46:58,519 talk to you about the allocations, the evaluations, where we sit, what 647 00:46:58,599 --> 00:47:01,599 we do, how we do it, because the plan all brings us to 648 00:47:01,679 --> 00:47:05,639 that. So you need to have a plan first. We do those for 649 00:47:05,800 --> 00:47:09,119 you. We don't charge you. It's free, complimentary, call it whatever 650 00:47:09,159 --> 00:47:13,480 you want. We do the financial plan. It's the only way we can 651 00:47:13,559 --> 00:47:16,199 set up and see what your stress level is, your risk tolerances and everything 652 00:47:16,199 --> 00:47:21,039 else, and from there we're able to put together everything else. Then we 653 00:47:21,119 --> 00:47:24,320 actually don't just hand it off to someone else. We manage it the same 654 00:47:24,320 --> 00:47:28,239 way we're telling you right now, right or wrong, you know where we 655 00:47:28,320 --> 00:47:34,559 stand because we take it into consideration what your risk tolerances, and what the 656 00:47:34,639 --> 00:47:37,800 markets are doing, and what we think it's going to happen. We still 657 00:47:37,840 --> 00:47:40,679 follow what we do to try to over the long haul, do the best 658 00:47:40,719 --> 00:47:45,800 we can under your goals and objectives. We'll be right back. Money bout 659 00:47:45,880 --> 00:47:58,400 a show, Thanks for listening. Say it's all welcome back everybody. Money 660 00:47:58,440 --> 00:48:00,840 by a Show right here Sunday. I hope you having a good day and 661 00:48:00,960 --> 00:48:06,360 enjoying listening to what we have to say. Dave, Dylan, Todd and 662 00:48:06,440 --> 00:48:12,400 myself. Markets good way into September. No question, No question has a 663 00:48:12,400 --> 00:48:15,199 bad reputation and it's well deserved. Yep, as usual. I mean, 664 00:48:15,280 --> 00:48:19,360 last week the Dow went down one point three percent, the SMP five hundred 665 00:48:19,360 --> 00:48:22,440 went down point seven percent, NASDAC was up point one percent, and the 666 00:48:22,519 --> 00:48:28,039 Russell two thousand was completely flat. And then the equal weighted SMP five hundred 667 00:48:28,079 --> 00:48:30,400 was also down point seven percent. So that's the show as the market as 668 00:48:30,400 --> 00:48:35,400 a whole was down. So get this, the equal weighted is up four 669 00:48:35,519 --> 00:48:38,320 tenths of a percent year to day. The equal weighted SMP five well, 670 00:48:38,400 --> 00:48:45,079 last year it was down thirteen percent. So if you had started an account 671 00:48:45,960 --> 00:48:51,320 December thirty feet of twenty twenty one, you're you're down twelve and a half 672 00:48:51,320 --> 00:48:54,119 percent or twelve point six percent. The other thing people don't realize state if 673 00:48:54,119 --> 00:48:58,920 they didn't come out of their bond funds were intermediate a long time bond funds 674 00:48:59,079 --> 00:49:01,719 go down another ten in fifteen twenty percent. Long term bond funds just got 675 00:49:01,719 --> 00:49:07,079 obliterated, you know, just obliterated. Unfortunately we had none. They're continuing 676 00:49:07,079 --> 00:49:09,320 to get obliterated. They continue to get obliterated. Yeah, the rates just 677 00:49:09,440 --> 00:49:13,079 continue. You know. I saw a couple of us should say we have 678 00:49:13,159 --> 00:49:17,079 done because we are hedging with TLT. Well that we have added a long 679 00:49:17,159 --> 00:49:21,760 position within the past few weeks, and we do have first time models. 680 00:49:21,920 --> 00:49:24,159 We have models. Rates are not going to grow, gonna go to the 681 00:49:24,239 --> 00:49:29,760 sky. It's not We're not We're not in the Carter era here. Rates 682 00:49:29,800 --> 00:49:34,119 are going to get high enough where they slow the economy down. The demand 683 00:49:34,159 --> 00:49:37,480 for money will drop. When the demand from money drops, the price of 684 00:49:37,559 --> 00:49:40,679 money, interest rates goes down. And the reason you're saying good riddeness in 685 00:49:40,679 --> 00:49:45,480 September because a month did end last Friday as well, the doll was down 686 00:49:45,480 --> 00:49:47,400 three and a half percent, the SMP five hundred was down five, and 687 00:49:47,480 --> 00:49:51,679 now Zack was down six. The Russell two thousand was down six point four, 688 00:49:52,039 --> 00:49:53,760 and the equal weighted SMP five hundred was down five and a half. 689 00:49:54,360 --> 00:49:59,280 So overall, yeah, good ridd in September horrible. I talked to make 690 00:49:59,280 --> 00:50:00,840 a bunch of econom numbers. Did you do something go ahead? While I 691 00:50:00,880 --> 00:50:06,119 was saying twenty five years ago, this week something big happened. It was 692 00:50:06,119 --> 00:50:09,280 the first time you've had the sparking of the two big to fail, too 693 00:50:09,280 --> 00:50:13,880 big to fail dilemma, and that was the long term capital management family. 694 00:50:14,079 --> 00:50:17,159 Yeah, and I think it's it was just an anniversary thing. I saw 695 00:50:17,239 --> 00:50:22,159 him on my news that popped up and it really kind of surprised me. 696 00:50:22,239 --> 00:50:24,679 That was the first big one twenty five years ago. Yep, that is 697 00:50:24,719 --> 00:50:29,880 amazing. A bunch of economy numbers this past week, credit Card losses Todd. 698 00:50:29,880 --> 00:50:31,880 You've mentioned this before, but they're growing at the fastest pace in thirty 699 00:50:31,960 --> 00:50:37,960 years. They're now three point six percent. Goldmu Sachs believes they'll continue to 700 00:50:37,079 --> 00:50:43,440 rise to five percent. That's super unusual outside of an economic downturn. I 701 00:50:43,519 --> 00:50:46,760 mean, we still are in an economic expansion. For credit card debt to 702 00:50:46,800 --> 00:50:51,960 be rising, excuse me, for credit card delinquency to be rising at this 703 00:50:52,079 --> 00:50:59,639 pace in an expanding economy is unprecedented. It's just it's unprecedented. The Fed 704 00:51:00,000 --> 00:51:06,679 watch the pc right, the Personal Consumption Expenditure Index, that's their favorite thing 705 00:51:06,719 --> 00:51:09,960 to watch, and it was reported Friday, without food and energy, it 706 00:51:10,079 --> 00:51:15,159 increased one tenth of one percent for the month, which was half of always 707 00:51:15,199 --> 00:51:17,400 expected. So that's good. On a twelve month basis, the index lied 708 00:51:17,480 --> 00:51:22,239 up three point nine percent, which is pretty much what was expected. Consumer 709 00:51:22,320 --> 00:51:24,760 spending up four tenths of a percent on a dollar basis, So consumer spending 710 00:51:24,800 --> 00:51:30,280 continues to expand as those credit card debt, which kind of tells you where 711 00:51:30,320 --> 00:51:36,880 that money's coming from. Of course, the will say that the consumer spending 712 00:51:37,079 --> 00:51:40,039 a four tenths of her percent was down from nine tenths of her percent in 713 00:51:40,119 --> 00:51:45,000 July. She can say it was cutting half. The rate of change is 714 00:51:45,320 --> 00:51:49,239 going down, right. Sebastian has joined the Sebastian Borsini. What's happening, 715 00:51:49,280 --> 00:51:52,840 Hi, buddy, So what's your deal? Well, I'm gonna we got 716 00:51:52,880 --> 00:51:58,559 a couple of questions emailed into us from radio listeners. How would they do 717 00:51:58,599 --> 00:52:02,960 that? Well, they can email us on constant contact information on contact at 718 00:52:02,960 --> 00:52:07,440 Greenberg Financial dot com. Contact at Greenberg Financial dot com. We'll go to 719 00:52:07,480 --> 00:52:13,000 our website. You can always see Collins. Hey, you talk about my 720 00:52:13,079 --> 00:52:15,960 question on the radio, No kidding, totally got this week. So for 721 00:52:16,000 --> 00:52:20,159 the first question, we have some a radio listener by the name of Susan. 722 00:52:20,239 --> 00:52:23,239 She writes, are we fiduciaries? And what does that mean? Yes, 723 00:52:23,320 --> 00:52:27,960 we are fiduciaries, And a fiduciary means that you put the client's best 724 00:52:28,039 --> 00:52:31,559 interests first at all times. And that's something that's that's simple. That's simple. 725 00:52:32,320 --> 00:52:36,480 They've got it like it's an NBA or something like a doctorate degree. 726 00:52:36,480 --> 00:52:39,480 It's it's just simply putting the client's interest first. This firm has been a 727 00:52:39,480 --> 00:52:44,639 fiduciary since the beginning, and the reason that's becoming popular now is because there 728 00:52:44,719 --> 00:52:45,760 used to be a commission business, Dave. I know you've been in the 729 00:52:45,760 --> 00:52:51,119 business when it was it was more cutthroat and more the advisor was looking out 730 00:52:51,119 --> 00:52:52,599 for himself, trying to make quotas rather than looking out for the client. 731 00:52:52,639 --> 00:52:55,599 He's you could just buy and sell stocks, you could convince him. You 732 00:52:55,639 --> 00:52:59,599 just weren't looking out for the best instance of the client's money. Now, 733 00:52:59,599 --> 00:53:01,679 being a duciary, you gotta look out for the client's best interests, and 734 00:53:01,679 --> 00:53:06,559 that's what that is. Shockingly, I think probably and Dean would know better 735 00:53:06,599 --> 00:53:12,239 of I think probably at least fifty percent of advisors are still commissioned have not 736 00:53:12,400 --> 00:53:17,920 gone to the something yeah I member, and it's it's I didn't. I 737 00:53:17,920 --> 00:53:22,400 don't know how you can do business with all of the I like to say, 738 00:53:22,480 --> 00:53:24,840 all of the stuff that's around it, all of the negative vibes around 739 00:53:24,880 --> 00:53:30,360 it, Like how can you still be a commission firm where you're you're paying 740 00:53:30,400 --> 00:53:34,000 per transaction? You know? Although I will say there are clients who don't 741 00:53:34,079 --> 00:53:36,880 do a lot of trading and I like to do it themselves. What's they 742 00:53:36,920 --> 00:53:38,719 mean by annuities? Unlet's that's what they're talking about. What do you mean 743 00:53:39,239 --> 00:53:44,920 because they get a commission through an annuity. The are you talking about stock 744 00:53:44,960 --> 00:53:46,880 commissions? Yeah, yeah, that's what I absolutely stoped say. Maybe the 745 00:53:46,920 --> 00:53:51,679 firm is like selling the nuities. A nuities is a nuties is a great 746 00:53:51,679 --> 00:53:53,960 gig if you if you don't have a we don't. We don't play that 747 00:53:54,039 --> 00:53:58,320 game, but you can. You can buy a twelve or sell a client 748 00:53:58,360 --> 00:54:00,320 at twelve or fourteen year annuity. May it's not like it's the greatest thing 749 00:54:00,360 --> 00:54:04,280 ever. Get a ten percent commission and then to go on to the next 750 00:54:04,280 --> 00:54:07,039 one. And there's a lot of that going on out there. You hear 751 00:54:07,079 --> 00:54:12,639 the advertisements. That's not who we are. You know, we do have 752 00:54:12,679 --> 00:54:15,920 a god you you kind of spearheaded the myga. Yeah, I'll talk a 753 00:54:15,960 --> 00:54:21,440 little bit about that. Just MIGA rates contending to increase. All the carriers 754 00:54:21,480 --> 00:54:24,199 come out with a on a really on a biweekly basis right now because the 755 00:54:24,280 --> 00:54:28,360 rates are just moving so much. But the one that we like most is 756 00:54:28,400 --> 00:54:30,679 with a theme the migas. Again, for people who aren't aware, a 757 00:54:30,800 --> 00:54:35,800 mega is a multi year guaranteed annuity. Right now, we've been mostly looking 758 00:54:35,840 --> 00:54:38,000 at the five year product, the five year products at five point four percent 759 00:54:38,119 --> 00:54:45,039 right now, it's a compounded rate as well, and it's a really great 760 00:54:45,079 --> 00:54:47,559 place for people who have those safe dollars and want the guarantee. You can 761 00:54:47,559 --> 00:54:51,440 still take money out the interests each year if you wanted to, but you 762 00:54:51,480 --> 00:54:54,039 probably don't because you still get that compounding effect. Right, So my guarantee 763 00:54:54,079 --> 00:54:58,360 work comes from the insurance company as long as they're in business, they're forced 764 00:54:58,360 --> 00:55:01,159 to pay you or someone talk about the the idea that you know, an 765 00:55:01,159 --> 00:55:05,559 annuity company, you have to trust the insurance company that has the annuity. 766 00:55:05,840 --> 00:55:07,920 And it's the same thing you have to trust the bank if you have a 767 00:55:07,960 --> 00:55:10,280 CD right, So I think when people also have to realize, you know, 768 00:55:10,440 --> 00:55:14,760 well banks have an FDIC, annuity companies don't. Well, there is 769 00:55:14,800 --> 00:55:19,280 a state guarantee fund, and majority of the time it never really comes into 770 00:55:19,440 --> 00:55:22,840 use because in insurance companies going out of business, another insurance company is just 771 00:55:22,840 --> 00:55:25,960 going to buy them, especially if you're a B rated B plus or more 772 00:55:27,079 --> 00:55:29,519 rated. I mean, if you're dealing with some of the you know, 773 00:55:29,639 --> 00:55:31,960 the B minus rated annuity companies, yeah, maybe no one wants to buy 774 00:55:32,000 --> 00:55:36,320 that that company. But for the most part, if you're staying with the 775 00:55:36,360 --> 00:55:39,119 A plus, A minus and plus rated companies, you're going to be fine, 776 00:55:39,440 --> 00:55:42,920 and the likelihood that they're going out of business is very, very low. 777 00:55:43,239 --> 00:55:45,920 I had to I was in the business back in the eighties when one 778 00:55:45,960 --> 00:55:51,880 of the biggest annuity companies in the country, Executive Life, highly respected company, 779 00:55:52,400 --> 00:55:55,760 makes some bad decisions one under nobody lost a penny. There are annuities. 780 00:55:55,760 --> 00:56:00,360 We are all transferred to other insurance companies and they picked up right where 781 00:56:00,360 --> 00:56:02,480 they left off and where you go. There was a period of about I 782 00:56:02,519 --> 00:56:06,320 want to say, six to nine months where there was it was kind of 783 00:56:06,360 --> 00:56:09,760 in u There was an uncertainty as they as they try, as the regulators 784 00:56:09,800 --> 00:56:15,000 tried to put this together with another insurance company. But it is think of 785 00:56:15,039 --> 00:56:20,800 it in terms of a MAGA, the multi year guarantee insurance or multi year 786 00:56:20,880 --> 00:56:24,920 guarantee annuity. Think of it as a certificate of deposit with the insurance company. 787 00:56:25,119 --> 00:56:28,800 And no, it's not unsure by the federal government. It's it's guarantee 788 00:56:28,800 --> 00:56:31,119 by the insurance company. But it's a nice product if you don't like the 789 00:56:31,199 --> 00:56:35,880 volatility of the market and would like to get And the beauty of it is 790 00:56:35,880 --> 00:56:38,400 it's tax deferred until you start to tell you take it, so you do 791 00:56:38,480 --> 00:56:42,800 have some flexibility there. So yeah, I also think you know, the 792 00:56:42,800 --> 00:56:46,599 treasury ladder is a great idea for people who want more liquidity available to them. 793 00:56:46,639 --> 00:56:50,280 So you're not going to get a higher rate, a higher rate than 794 00:56:50,320 --> 00:56:52,480 the MIGA because you have more liquidity available to you. You're probably going to 795 00:56:52,519 --> 00:57:00,320 average around five percent on a on a treasure ladder before fees. But because 796 00:57:00,360 --> 00:57:01,559 of that, you have the access to pull all the money out and not 797 00:57:01,599 --> 00:57:06,960 be penalized where the nuity it's not totally liquid, so you give and take 798 00:57:07,039 --> 00:57:09,480 on that. But for people who have saved dollars, it's never been better 799 00:57:09,599 --> 00:57:13,159 for them. I mean, you can go out in the marketplace and there's 800 00:57:13,239 --> 00:57:15,920 many products where the interest is just nothing. You've seen in the last twenty 801 00:57:15,960 --> 00:57:21,280 It was a long answer to to what should have been. Yes, Dylan 802 00:57:21,360 --> 00:57:24,360 answered it. Yes, that was the right answer. So you're going to 803 00:57:24,400 --> 00:57:28,400 talk about long answers when you have an evy garage every single week? Huh? 804 00:57:28,719 --> 00:57:31,400 All right, so let's keep on going. That's yes, sir. 805 00:57:31,719 --> 00:57:35,480 Wait a second, I do have one more question. What's the other question? 806 00:57:35,519 --> 00:57:37,440 This one's written in from Roberts he asked, can you explain the difference 807 00:57:37,480 --> 00:57:43,880 between a mutual fund and an exchange traded fund ETF and simple terms, go 808 00:57:44,039 --> 00:57:49,639 Dave. The difference is a mutual fund is priced once a day at the 809 00:57:49,639 --> 00:57:53,360 close of the market. An ETF is traded throughout the day, So the 810 00:57:53,400 --> 00:57:59,760 ETF does give you a more flexibility. And the management fees and an ETF 811 00:58:00,000 --> 00:58:04,760 because it is a portfolio of equities, the management fees in an ETF are 812 00:58:04,800 --> 00:58:09,239 typically lower than they are most mutual funds. So it's a nice tool to 813 00:58:09,360 --> 00:58:13,400 use if you like to. Let's see, they're wanting to move in and 814 00:58:13,400 --> 00:58:16,079 out of the market. You can do that intra day with an ETF. 815 00:58:16,079 --> 00:58:19,639 You cannot do that with a mutual fund. Yeah. And also it's a 816 00:58:19,679 --> 00:58:23,000 little more tax efficient in ETFs than mutual funds, especially if the mutual fund 817 00:58:23,079 --> 00:58:28,039 person is doing a lot of active trading. It could be more tax efficient 818 00:58:28,079 --> 00:58:30,320 to have an ETF. Something that no one ever talks about, and that 819 00:58:30,519 --> 00:58:36,719 is coming in the next four to six weeks to a theater near you are 820 00:58:36,840 --> 00:58:42,599 capital gains distributions from every mutual fund, particularly the growth oriented ones, and 821 00:58:42,639 --> 00:58:45,960 they can be huge yea. And you can be sitting there looking like, 822 00:58:45,000 --> 00:58:49,039 okay, we're good on taxes, and all of a sudden cut, bang, 823 00:58:49,519 --> 00:58:53,320 here's a ten percent capital long term capital gain or short term capital gain 824 00:58:53,599 --> 00:58:58,480 that you weren't expecting from the mutual fund. And there's no way to predict 825 00:58:58,519 --> 00:59:00,159 those things. And don't know what happened to you last year, right, 826 00:59:00,199 --> 00:59:05,000 I mean the fund was down on the year and you ended up getting still 827 00:59:05,000 --> 00:59:07,039 got a capital game, yeah, because they still distributed the capital gains. 828 00:59:07,320 --> 00:59:09,599 Well, yeah, yeah, because I mean they still buy and sell during 829 00:59:09,639 --> 00:59:15,239 the year. So let's say you bought Apple at twenty five dollars and Apple 830 00:59:15,280 --> 00:59:19,280 goes up to two hundred and now it comes down to one fifty. You 831 00:59:19,400 --> 00:59:22,679 lost money, but if you sell it, you've got one hundred and twenty 832 00:59:22,679 --> 00:59:24,599 five dollars gain. They have to pay tax on. That's what happens with 833 00:59:24,639 --> 00:59:29,360 the mutual fund companies. They're trading throughout the year, and even in a 834 00:59:29,400 --> 00:59:32,079 down year, they might even be a little bit more aggressive in a down 835 00:59:32,159 --> 00:59:37,719 year selling some highly appreciated securities they get transferred to through to you. Yeah, 836 00:59:37,760 --> 00:59:40,199 and I mean the mutual ones have done right, can be you know 837 00:59:40,360 --> 00:59:45,559 good. Well, they're the tools they're great tools. We like ETFs better. 838 00:59:45,679 --> 00:59:49,400 The Greenberg financial deals with mostly ETFs. You want to take a stript 839 00:59:49,400 --> 00:59:52,400 to the EV garage, let's do it the you know. And unless you're 840 00:59:52,440 --> 00:59:57,480 an AM talk show host, I'm not sure why you would be adamantly against 841 00:59:57,559 --> 01:00:00,000 electric cars. What difference does it make? Don't buy one, right, 842 01:00:00,719 --> 01:00:04,360 you don't have to buy when no one's forcing you to buy one. And 843 01:00:04,400 --> 01:00:07,239 I say an AM talk show because the electric cars don't pick up AM radio. 844 01:00:07,320 --> 01:00:12,320 So if you have a if you're an AM talk show host, you're 845 01:00:12,800 --> 01:00:15,559 animately against electric cars. But I just I don't, I don't get it. 846 01:00:16,559 --> 01:00:22,199 So what you hear these people say is and again I don't understand why 847 01:00:22,239 --> 01:00:25,960 someone would be so animately opposed to new technology. You don't have to do 848 01:00:27,000 --> 01:00:29,840 it, you know. It's like being animally opposed to a cell phone. 849 01:00:29,960 --> 01:00:34,639 You don't have to have one, but it's a great technology. And yet 850 01:00:34,679 --> 01:00:37,639 you hear the here people saying, well, yeah, they're piled up like 851 01:00:37,719 --> 01:00:44,400 mad at the dealerships because nobody wants to damn things, you know, could 852 01:00:44,519 --> 01:00:47,400 nothing could be further from the truth. Demand for electric cars is booming. 853 01:00:49,400 --> 01:00:53,000 Sales are expected to leave thirty five percent this year from last year. Last 854 01:00:53,039 --> 01:00:58,559 year was a record Todd warnauf to nearly ten percent of all car sold are 855 01:00:58,599 --> 01:01:04,039 electric versus percent two years ago. Business is booming. With that said, 856 01:01:04,079 --> 01:01:08,119 manufacturers are producing electrics at a much more aggressive pace, and not all evs 857 01:01:08,159 --> 01:01:13,760 are in demand. Price is the primary thing that's going to stop people because 858 01:01:13,800 --> 01:01:16,039 they're expensive. Still, we still still having gotten down to where the average 859 01:01:16,079 --> 01:01:20,800 person can handle it. The way time for a Tesla still thirty to sixty 860 01:01:20,880 --> 01:01:23,920 days. You want a Mustang mock E three to six months. Don't tell 861 01:01:23,960 --> 01:01:28,840 me they're piling up at the dealership because nobody wants them. The demand is 862 01:01:28,920 --> 01:01:32,840 going off the charts. With that said, electric vehicles like he Is, 863 01:01:34,599 --> 01:01:39,000 Volkswagens, Hiend's, Nissans and others that don't get the tax credit are selling 864 01:01:39,039 --> 01:01:43,639 slowly, no question about it. But let me give you an example of 865 01:01:43,679 --> 01:01:49,199 how how electrics being adopted. Todd, The number one selling pick up in 866 01:01:49,239 --> 01:01:53,480 the country over the last forty years is forty one fifty. Right, the 867 01:01:53,559 --> 01:01:58,480 fort f one fifty has been number one for forty years. In twenty twenty 868 01:01:58,519 --> 01:02:02,440 three, they're going to sell two hundred and thirty f one fifties. To 869 01:02:02,599 --> 01:02:06,840 excuse me, two hundred and thirty thousand, two hundred and thirty thousand, 870 01:02:06,880 --> 01:02:09,280 f one fifties are going to be sold in this country. Number one selling 871 01:02:09,320 --> 01:02:14,320 truck in the country, Tesla is gonna sell eight times at eight times that, 872 01:02:15,079 --> 01:02:20,000 So they're not piloting up people. How how is that possible? Then, 873 01:02:21,079 --> 01:02:23,719 Tesla's more than eight times tess Tesla is gonna sell their entire time, 874 01:02:23,760 --> 01:02:28,400 the entire fleet. Yeah, the Tesla is Tesla compared to be more than 875 01:02:28,440 --> 01:02:31,800 eight times of the forty I'm just simply using it as an example as the 876 01:02:31,840 --> 01:02:34,800 forty one. I was just thinking, well, if that's the case, 877 01:02:34,840 --> 01:02:38,239 the Tesla's the newest most popular car, but no one type of car. 878 01:02:38,280 --> 01:02:43,559 And in fairness, it's not a fair comparison. I'm comparing the But I'm 879 01:02:43,599 --> 01:02:45,719 what I'm saying is the number one selling pickup in the United States over the 880 01:02:45,800 --> 01:02:52,000 last forty years is gonna sell twelve percent as many vehicles as Testa's gonna sell. 881 01:02:52,599 --> 01:02:55,280 So it's okay, It's gonna be okay. And again, there's no 882 01:02:55,360 --> 01:02:59,920 reason to be animally opposed to it. If you don't like it, buy 883 01:03:00,079 --> 01:03:02,960 it. You don't need to be You don't need to be badmouth. It's 884 01:03:04,119 --> 01:03:07,199 ridiculous. I hate these people, and it's not political. I have an 885 01:03:07,239 --> 01:03:10,800 awfully a lot of Republican friends that have electric vehicles. Okay, let's nobody's 886 01:03:10,840 --> 01:03:14,920 fortunated to buy a nlecry vehicle. Well, something I think is political, 887 01:03:15,000 --> 01:03:20,000 and that is the nuclear the whole nuclear thing I mean, and this is 888 01:03:21,719 --> 01:03:24,639 specifically for nuclear energy, Okay, I think this is something that our country 889 01:03:24,719 --> 01:03:30,840 is just not spending enough money on. From nineteen seventy to nineteen ninety, 890 01:03:30,880 --> 01:03:35,000 we did a lot and we produced and constructed a lot of these nuclear reactors, 891 01:03:35,199 --> 01:03:38,280 and right now they're approximately eighteen percent of the electricity we use and it 892 01:03:38,320 --> 01:03:43,320 comes from those nuclear reactors. Those nuclear reactors are coming offline right They only 893 01:03:43,360 --> 01:03:45,679 have about a thirty to forty year shelf life before you have to start shutting 894 01:03:45,719 --> 01:03:50,599 them down. And what we're not doing is creating new nuclear reactors. And 895 01:03:50,639 --> 01:03:53,000 to me, it's just it's dumbfounding. Where we're not producing new oil, 896 01:03:53,039 --> 01:03:55,880 we're not producing new nuclear reactors, but somehow we're going to have to have 897 01:03:55,920 --> 01:04:00,400 all this energy that we have to you know, we're taking fossil fuels away 898 01:04:00,440 --> 01:04:05,159 and we're not adding new energy back, so you are eventually leading to only 899 01:04:05,159 --> 01:04:09,440 one thing can happen, meaning people use less energy. Well, if people 900 01:04:09,480 --> 01:04:13,039 use less energy, that means standard of living goes down. So that's that's 901 01:04:13,079 --> 01:04:16,159 where we're headed if we don't make a serious change in our energy policy, 902 01:04:16,320 --> 01:04:21,320 either by producing more fossil fuels or finding more energy efficient vehicles to get us 903 01:04:21,360 --> 01:04:26,480 there. And when I mean vehicles, I mean either make solar better, 904 01:04:26,679 --> 01:04:29,840 make win better. But really I haven't seen it where you're able to scale 905 01:04:29,880 --> 01:04:31,239 it. The only one that you can really see that can scale are these 906 01:04:31,320 --> 01:04:38,280 nuclear fission and open AI CEO Sam Altman, he's the guy who is with 907 01:04:38,559 --> 01:04:42,559 Microsoft. There have to a power purchase agreement with a company called Hellion, 908 01:04:43,400 --> 01:04:47,119 and they're working on producing nuclear reactors by twenty twenty eight. Another man, 909 01:04:47,320 --> 01:04:53,039 Bill Gates, he owns a company when he left Microsoft because he wants to 910 01:04:53,039 --> 01:04:59,119 start nuclear fission reactors. Those are where the lucrativeness and it's it's to me, 911 01:04:59,199 --> 01:05:01,760 I'm very excited that the rich people are at least doing it because our 912 01:05:01,760 --> 01:05:05,079 government's not doing it. We need a lot of energy, and all this 913 01:05:05,199 --> 01:05:10,639 AI that continues to come online, we don't have less energy being used online. 914 01:05:10,679 --> 01:05:13,639 We have more energy and we have more people, which means we need 915 01:05:13,719 --> 01:05:16,199 more energy. We have to continue to produce, not take away from the 916 01:05:16,199 --> 01:05:19,599 grid. I think one of the one of the biggest problems we have in 917 01:05:19,599 --> 01:05:25,639 this country is our unwillingness to talk about nuclear power. It seems like it's 918 01:05:25,719 --> 01:05:29,199 just a piranha, right that no one wants to discuss, and it's just 919 01:05:29,480 --> 01:05:33,079 unfortunate because it is clean. It is an example. Look at the three 920 01:05:33,119 --> 01:05:39,719 reactors up at Palaverti. They've developed walk away technology pump out electricity for years 921 01:05:39,760 --> 01:05:42,519 and years and years. Well, they always said what happens when all humans 922 01:05:42,519 --> 01:05:45,519 go away, what happens to the nuclear Well they have walk away technology now 923 01:05:45,519 --> 01:05:47,719 that it works the exact opposite. You need heat to heat it up, 924 01:05:48,079 --> 01:05:51,639 so when there's no energy, there's no it's done, so there's no more 925 01:05:51,719 --> 01:05:56,000 threats that they used that you hear all on the talking points, and so 926 01:05:56,599 --> 01:05:59,280 that's where the focus needs to be. I agree. I think it is 927 01:05:59,280 --> 01:06:02,480 a France gets most of their energy from nuclear, the world leader right now 928 01:06:02,519 --> 01:06:08,159 in nuclear Yeah, we're really behind, and China's the world leader on producing 929 01:06:08,239 --> 01:06:13,719 new nuclear plants for their country also the world later and building new coal powered 930 01:06:13,719 --> 01:06:15,880 plans for their country. But they're at least looking at the fact that they 931 01:06:15,880 --> 01:06:18,880 aren't going to need more energy, so we need to add to energy grid. 932 01:06:19,079 --> 01:06:21,719 That's their Chinese thought, right. I just don't know why are we 933 01:06:21,800 --> 01:06:26,079 not thinking like that after three miles outland. I just don't know how we're 934 01:06:26,079 --> 01:06:29,800 ever going to get changed to thinking. It's not it's it's thinking out of 935 01:06:29,800 --> 01:06:32,559 ignorance. It's it's opposition. It's kind of like electric cars, just opposition 936 01:06:32,599 --> 01:06:35,039 out of ignorance. Yeah, you know, just what is the point? 937 01:06:35,199 --> 01:06:40,679 Just look at this. It's really something that needs to be needs to be 938 01:06:40,719 --> 01:06:43,519 looked at. Gebashian, did you have another one for us? Or with 939 01:06:43,559 --> 01:06:45,840 that? It another question? Yeah? Yeah, I think I did. 940 01:06:45,920 --> 01:06:47,920 I think you had? I think you had Did we have two? We 941 01:06:47,960 --> 01:06:51,119 had three? Actually that wrote in this week comes in from Roger and he 942 01:06:51,159 --> 01:06:56,320 actually wrote, how do interest rates affect the Market's kind of a simpler question, 943 01:06:56,400 --> 01:06:59,719 but oh, I have a great point on this, baby. Interest 944 01:06:59,840 --> 01:07:03,639 rates are very They definitely can impact. To me, the biggest impact is 945 01:07:03,679 --> 01:07:06,920 valuations, because when you're looking at the value of a stock, you have 946 01:07:06,960 --> 01:07:11,599 to put it in the ten year interest rate because you're discounting the free cash 947 01:07:11,599 --> 01:07:14,159 flow. And so when interest rates are higher, the ten year interest rates 948 01:07:14,199 --> 01:07:16,840 higher, your free cash flow that you're discounting is not doesn't it's not worth 949 01:07:16,880 --> 01:07:20,159 as much, so your stock's less. So that's one thing. Obviously, 950 01:07:20,280 --> 01:07:25,960 the Feds, the the what do you say, the dog that weighs the 951 01:07:26,000 --> 01:07:30,920 tail, tail wag, tail wags the dog. Yeah, yeah, there 952 01:07:30,920 --> 01:07:34,159 we go. Yeah. Well, I saw an interesting stat that said a 953 01:07:34,239 --> 01:07:38,920 ten basis point rise in the thirty year yield is about ten to twelve times 954 01:07:38,920 --> 01:07:42,960 more powerful than the same increase in the two year yield. And it makes 955 01:07:43,000 --> 01:07:46,000 sense, you know. I mean, obviously we know longer dated fixing fix 956 01:07:46,159 --> 01:07:50,119 dated debt, when that interest rates go up more, they lose more value 957 01:07:50,159 --> 01:07:55,360 than the shorter term beca're more volatile. So when what we saw this last 958 01:07:55,360 --> 01:08:00,599 week with the ten year in the thirty year reaching multidecade, eyes right, 959 01:08:00,920 --> 01:08:04,119 I mean that had a huge impact on valuation, had a huge pack and 960 01:08:04,119 --> 01:08:09,360 on stocks, and that's why we're seeing some pullback here. And when you 961 01:08:09,440 --> 01:08:12,239 see a huge increase in the two year, stocks might not react the same 962 01:08:12,239 --> 01:08:14,760 way that they see a huge increase in attainment. Well, we just see 963 01:08:14,800 --> 01:08:23,239 those a dramatic narrowing of the spread, uh to the four point five seven 964 01:08:23,399 --> 01:08:27,680 the two years five point zero five fifty business points. That's half of what 965 01:08:27,760 --> 01:08:31,560 has been it's been a full percentage point. So that that is a move 966 01:08:31,640 --> 01:08:36,840 toward normalcy. That's a move towards landing the plane without crashing the plane. 967 01:08:36,840 --> 01:08:40,640 I have a question for you, because you're you were alive at the time 968 01:08:41,319 --> 01:08:48,479 when we were going into from prefacing where we were, it seems like what 969 01:08:48,520 --> 01:08:53,760 we're headed into now with this bear steepening is somewhat similar to the early eighties 970 01:08:53,760 --> 01:08:57,479 and then what ended up being a decade long high interest rate environment. Do 971 01:08:57,560 --> 01:09:00,439 you see any similarities of the eighties and what we're going into now. A 972 01:09:00,439 --> 01:09:05,760 big difference between the early eighties, the Carter era and now is monetary policy. 973 01:09:05,920 --> 01:09:12,000 It's totally different now than it was then. There was really no reactive, 974 01:09:12,560 --> 01:09:17,279 reactive policy. Now we will drive our economy into recession before we'll accept 975 01:09:17,359 --> 01:09:21,600 high interest rates. We'll drive it into recession. So no, I don't 976 01:09:21,600 --> 01:09:26,159 see any similarity at all. And I keep hearing that, oh, maybe 977 01:09:26,159 --> 01:09:29,239 we're gonna go about the quarter years we're gonna be able to get a seventeen 978 01:09:29,279 --> 01:09:32,199 and a half percent of cd No, I'm not gonna that's not gonna happen, 979 01:09:32,279 --> 01:09:35,800 not with the monetary policy we have right now, where the Federal Reserve 980 01:09:35,880 --> 01:09:39,680 is willing to shut things down before it gets to that left. Don't you 981 01:09:39,760 --> 01:09:42,159 also think there's so much more debt in the world than we're in the eighties? 982 01:09:42,239 --> 01:09:44,960 Oh gonna, yes, I mean yeah, could you imagine? I 983 01:09:44,960 --> 01:09:46,439 mean, it's just the pipes are going to burst at some point right now. 984 01:09:46,840 --> 01:09:53,319 It's Yeah, we were talking earlier about our debt to GDP had gotten 985 01:09:53,359 --> 01:09:56,039 to a level that we hadn't seen since World War Two. Well we've now 986 01:09:56,079 --> 01:10:00,439 exceeded that. Yeah, we're now above the debt equity ratio we had in 987 01:10:00,479 --> 01:10:04,960 World War Two. It's ridiculous. It's absolutely ridiculous that we cannot get spending 988 01:10:05,039 --> 01:10:09,479 under control. And I think that's part of what what the five or six 989 01:10:09,640 --> 01:10:15,640 Republican Congress people are trying to say. It's stop, it stops now, 990 01:10:15,720 --> 01:10:20,359 it stops here right now. Well okay, uh, you know, but 991 01:10:20,479 --> 01:10:28,159 at some point somebody has to step up and be uh physically responsible. Right 992 01:10:28,159 --> 01:10:32,359 now, they're putting it all on Jerome Poll's shoulders and Jerry, good luck. 993 01:10:33,039 --> 01:10:38,079 You know you have our blessing. Uh we we we hope you can 994 01:10:38,119 --> 01:10:42,000 get this under control, and we're gonna go on vacation. It's very it's 995 01:10:42,079 --> 01:10:46,399 very frustrating. He's getting little or no help out of Congress, and it's 996 01:10:46,720 --> 01:10:51,479 you have Elizabeth Warren yell at him about the unemployment rate going up and the 997 01:10:51,479 --> 01:10:55,319 possibility all these people are gonna lose their jobs if you keep raising it straight. 998 01:10:55,359 --> 01:10:57,000 It's like, what do you want him to do? I guess they 999 01:10:57,000 --> 01:11:01,840 can quit complain about Diane Feinstein retiring right She passed away Thursday, I think 1000 01:11:01,880 --> 01:11:06,079 Thursday evening. Yeah, ninety years old, wouldn't just wouldn't leave. So, 1001 01:11:06,279 --> 01:11:09,319 you know, I still think that's crazy that she was able to be 1002 01:11:09,359 --> 01:11:13,520 in Congress at ninety but she make her decisions, but she had a power 1003 01:11:13,520 --> 01:11:15,960 of attorney making her personal decisions. Yes, yeah, how was that possible? 1004 01:11:16,159 --> 01:11:20,920 It's and h In the congressional meetings, there was a young person sitting 1005 01:11:20,960 --> 01:11:25,560 nextra whispering in her ear. I don't know what, but I'm thinking what 1006 01:11:25,680 --> 01:11:27,880 to say? Going on? Yeah, yeah, what's going on? It 1007 01:11:27,960 --> 01:11:30,720 is ridiculous. It's too bad. That and term limits would be would be 1008 01:11:30,760 --> 01:11:35,199 wonderful. I don't know how we get term limits when that happened, but 1009 01:11:35,359 --> 01:11:40,520 yeah, when you have to Okay, imagine any of us voting to have 1010 01:11:40,680 --> 01:11:44,800 a limited time that we can do our job and you can only have this 1011 01:11:44,920 --> 01:11:47,720 job for you know, eight years or whatever. Anyway, we appreciate you 1012 01:11:47,840 --> 01:11:51,840 joining us on this Sunday morning. Uh, we love bringing you the show. 1013 01:11:53,239 --> 01:11:56,039 We'll be back. We got Jonathan Savillia, our attorney, with us 1014 01:11:56,079 --> 01:12:00,600 again today. Uh, Todd and Sebastian have some things just day and we'll 1015 01:12:00,640 --> 01:12:03,520 talk a little bit more about financial planning and what you're doing there. We've 1016 01:12:03,560 --> 01:12:09,640 got some corporate news that will pass along if you didn't have a chance to 1017 01:12:09,680 --> 01:12:14,600 see it. But yeah, thanks again for joining us on this windy Sunday 1018 01:12:14,600 --> 01:12:30,560 morning. We'll right back. Let's say it's all a fab Welcome back to 1019 01:12:30,600 --> 01:12:33,119 the Money Matters Show. My name is Todd Glick. I'm here with Dylan 1020 01:12:33,159 --> 01:12:40,439 Greenberg, Sebastian Borcini, and Dave Sherwood. Yeah. Now, financial planning, 1021 01:12:40,439 --> 01:12:43,399 obviously is something that we really believe in here because at the end of 1022 01:12:43,399 --> 01:12:45,680 the day, everything we do as money managers is based on your risk tolerance 1023 01:12:45,720 --> 01:12:50,439 and goals and objectives of your plan. One of the most fascinating things I 1024 01:12:50,479 --> 01:12:56,359 had during one of these meetings this last week was going through all the inputs, 1025 01:12:56,359 --> 01:12:59,319 and we go through what's your pension figures? Right? What are your 1026 01:12:59,319 --> 01:13:01,840 Social secure your figures at? And it was the social security that caught my 1027 01:13:01,880 --> 01:13:08,319 eye because the spouse had roughly, let's say, twenty thousand and benefits yearly, 1028 01:13:09,960 --> 01:13:14,239 and then the other spouse had only five thousand dollars. And I was 1029 01:13:14,239 --> 01:13:17,000 wondering, I'm well, you're supposed to be getting half of your spouse's benefit, 1030 01:13:17,239 --> 01:13:20,119 right, And so I'll ask in im said, when did you guys 1031 01:13:20,159 --> 01:13:26,359 get married? They got married two years ago, they filed. The woman's 1032 01:13:26,359 --> 01:13:31,359 spouse filed ten years ago on her soul Security, right, so she was 1033 01:13:31,399 --> 01:13:36,159 getting her old Social Security and she did not ever repply. And it says 1034 01:13:36,279 --> 01:13:40,199 on the SOLI security website that as long as you're married for one year or 1035 01:13:40,239 --> 01:13:45,199 more than, you're eligible for your spouse's benefit continuously. Yeah. Right, 1036 01:13:45,239 --> 01:13:49,119 And so we realize she's not getting the spousal benefits that she should be getting 1037 01:13:49,199 --> 01:13:53,239 right now, right, so then she's able to go out and talk about 1038 01:13:53,279 --> 01:13:56,199 Those are the type of things that you're able to uncover when you really bring 1039 01:13:56,279 --> 01:13:59,880 everything into one picture. Right, when you're able to bring in the soul 1040 01:14:00,159 --> 01:14:03,359 securities, the investment assets, the home purchases, the annuities, all things 1041 01:14:03,399 --> 01:14:08,039 that come into one little picture, then can we can see is there something 1042 01:14:08,079 --> 01:14:11,439 that fell through the cracks? And it can be simple things the state planning, 1043 01:14:11,640 --> 01:14:15,359 social security numbers, not maximizing your pension, not understanding your risk. 1044 01:14:15,880 --> 01:14:19,000 Right. We see it all the time where people are worried about their investment 1045 01:14:19,039 --> 01:14:24,560 returns and we see their portfolio and it's a really risky portfolio, and then 1046 01:14:24,600 --> 01:14:27,479 we ask them how risky they are as people, and they won't even go 1047 01:14:27,479 --> 01:14:31,239 above the speed limit. Right, So if you're not, it's it has 1048 01:14:31,279 --> 01:14:35,079 to be an intertwined plan. If you have a money manager, great, 1049 01:14:35,119 --> 01:14:38,560 If you have an annuity salesman, great, If you have an insurance salesman 1050 01:14:38,640 --> 01:14:41,800 great. But if they're not all talking to each other, you don't have 1051 01:14:41,880 --> 01:14:46,600 a true fiduciary planner. You're having pieces kind. Everyone has a questionnaire, 1052 01:14:46,760 --> 01:14:50,319 right, did you fill out a risk profile questionnaire? Every firm has one 1053 01:14:50,359 --> 01:14:55,359 of those. But how many places to ask you if you parachute, if 1054 01:14:55,359 --> 01:14:58,199 you skydive, how many places to ask you if you ride a motorcycle? 1055 01:14:58,439 --> 01:15:00,000 How many places to ask you? How fast you driving you go to Phoenix? 1056 01:15:00,159 --> 01:15:04,520 These are all things to talk about. What's your risk profile really is? 1057 01:15:05,000 --> 01:15:08,960 How about looking at the portfolio you've had, how about looking at your 1058 01:15:09,000 --> 01:15:11,760 four one K plane? How do you have that allocated? Those are all 1059 01:15:11,760 --> 01:15:15,800 the and the social security thing is huge because social Security is never going to 1060 01:15:15,840 --> 01:15:17,319 call you and say, oh, by the way, you're screwing yourself. 1061 01:15:17,399 --> 01:15:20,800 Yeah. Right, They're never gonna call It's not gonna happen. I had 1062 01:15:20,840 --> 01:15:25,840 a galwalk in years ago, seventy five years old, and I said, 1063 01:15:25,880 --> 01:15:29,680 how much are you getting from social Security? She goes, oh, I'm 1064 01:15:29,680 --> 01:15:34,840 not taking it. I'm still working. Whoa stop. Social Security goes to 1065 01:15:34,920 --> 01:15:39,640 seventy. That's the it. It doesn't get any bigger after seventy. It 1066 01:15:39,680 --> 01:15:42,880 doesn't matter that you're working full time. You could be warm Buffett. I 1067 01:15:42,920 --> 01:15:45,920 bet warm Buffett gets social security right. Seventy years old. That's it. 1068 01:15:46,239 --> 01:15:50,720 If you're seventy five years old and you've never taken social Security, you've got 1069 01:15:50,760 --> 01:15:55,359 four and a half years worth of Social Security that's gone forever. They'll give 1070 01:15:55,399 --> 01:15:58,039 you six months of it. You come in at seventy five and say, 1071 01:15:58,039 --> 01:16:00,279 hey, by the way, i've never taken any Well, they'll give you 1072 01:16:00,399 --> 01:16:03,039 six months, but that's it and then you're then you go from there. 1073 01:16:03,279 --> 01:16:08,319 But it isn't going to get any bigger waiting until seventy five and you don't 1074 01:16:08,359 --> 01:16:12,600 have to be done working there, And again they're not gonna call. Do 1075 01:16:12,680 --> 01:16:15,119 they give you that six months as a lump sum or yeah, yeah, 1076 01:16:15,239 --> 01:16:17,760 yeah they do, but you're out four and a half years. So how 1077 01:16:17,760 --> 01:16:20,760 about you, I'd really have the five years worth of benefits and forget the 1078 01:16:20,800 --> 01:16:26,359 lump Start at seventy. Yeah, start at seventy and I know later than 1079 01:16:26,399 --> 01:16:28,960 seventy. In fact, if you wait, this is interesting. If you 1080 01:16:29,039 --> 01:16:33,079 wait until seventy, you have to live to be changed now a little bit, 1081 01:16:33,119 --> 01:16:39,119 but it's probably at least eighty eighty three. Eighty four was what it 1082 01:16:39,199 --> 01:16:41,199 used to be Todd. I think it might be a little bit less than 1083 01:16:41,239 --> 01:16:45,119 now. But essentially, if you take it at sixty six, you have 1084 01:16:45,199 --> 01:16:48,960 to lift into your early eighties to break even. Well, that's again the 1085 01:16:49,000 --> 01:16:54,560 financial plan tool we have has an actual social security tool that shows you your 1086 01:16:54,560 --> 01:16:57,680 exact break even day. And that's why I said eighty three eighty four is 1087 01:16:57,720 --> 01:17:00,159 what I normally see on this optimized tools. Yeah, because it will give 1088 01:17:00,199 --> 01:17:02,720 you all the strategies that kills you. What would look like if you take 1089 01:17:02,760 --> 01:17:06,399 a sixty two versus sixty five, sixty seven, seventy, all the way 1090 01:17:06,800 --> 01:17:10,960 you can customize it however you would like, and it shows you break even 1091 01:17:10,960 --> 01:17:14,680 for each option. Yeah. It also shows if taking it at say sixty 1092 01:17:14,720 --> 01:17:17,359 five, would hurt the confidence and how your plan would be throughout retirement or 1093 01:17:17,399 --> 01:17:21,159 maybe wait till seventy What would that do to the confidence of your plan working 1094 01:17:21,239 --> 01:17:24,479 through retirement? Yeah, because it's all a cash flow thing. If you 1095 01:17:24,479 --> 01:17:27,439 retire in sixty five, but you wait till sixty seven to turn on your 1096 01:17:27,439 --> 01:17:29,800 solo security, if you don't have those two years of income gap, then 1097 01:17:29,840 --> 01:17:30,760 you can't do that. Right. So I had a client I met with 1098 01:17:30,960 --> 01:17:38,680 that was taking ten percent more of their principle than they then the principle could 1099 01:17:38,760 --> 01:17:45,119 support waiting for social security to go up by eight percent per year. This 1100 01:17:44,960 --> 01:17:47,880 is this makes those sense, right, You're going backwards by ten percent waiting 1101 01:17:47,880 --> 01:17:51,600 for social security to go up by eight percent. You know, so that 1102 01:17:51,680 --> 01:17:55,119 those are all things that come out in the finance he would have to live 1103 01:17:55,159 --> 01:17:57,560 the probably ninety for that to break. Even things you don't know, I 1104 01:17:57,560 --> 01:18:00,600 mean things you just don't know. Yeah, that will come up in a 1105 01:18:00,600 --> 01:18:05,560 financial plan questions and you'll be asked that you maybe have never even considered exactly. 1106 01:18:06,319 --> 01:18:10,079 Yeah. It's a great conversation and it gets really into the depth. 1107 01:18:10,119 --> 01:18:14,479 And what it does really too is bring everything to one picture. You guys 1108 01:18:14,520 --> 01:18:16,880 do a great job, and the demand for it is off the charts, 1109 01:18:16,920 --> 01:18:20,760 and give us a call. We'll find a spot for you. And you 1110 01:18:20,800 --> 01:18:27,319 guys typically meet with people, you do the financial plan while they're sitting there, 1111 01:18:27,960 --> 01:18:30,439 You print it out and then you email it to them. And what 1112 01:18:30,479 --> 01:18:33,720 they do with that from that point on, we hope that they become clients 1113 01:18:33,720 --> 01:18:36,800 of ours and allow us to what they do from that point on. They 1114 01:18:36,800 --> 01:18:41,920 need simple We send the risk tolerance questionnaire because once we get that risk tolerance, 1115 01:18:42,560 --> 01:18:45,199 like in the first meeting, we're not telling you what we think you 1116 01:18:45,199 --> 01:18:48,199 should do. We're getting information, we're understanding, we're listening, and then 1117 01:18:48,279 --> 01:18:51,880 we send you the risk tolerance questionnaire to get the idea of exactly what your 1118 01:18:51,960 --> 01:18:56,800 risk is, then we can make suggestions. If you have someone who's making 1119 01:18:56,880 --> 01:19:00,560 a lot of suggestions in a first meeting and they haven't actually known your risk 1120 01:19:00,600 --> 01:19:02,720 and your goals and objectives, they don't, they're not really doing what's best 1121 01:19:02,720 --> 01:19:05,560 for you. They're doing what's best for their pocket, right, and so 1122 01:19:05,560 --> 01:19:09,880 that's why it's really important to know that. In that second meeting, that's 1123 01:19:09,880 --> 01:19:13,319 when we're really giving proposals. We give you an actual packet and show you 1124 01:19:13,399 --> 01:19:15,880 where the account's going to be, how it's going to be allocated, what 1125 01:19:15,960 --> 01:19:17,840 you should expect, where the cash flow is going to come from, the 1126 01:19:17,880 --> 01:19:21,960 sources of that cash flow, what's the portfolio projection looks like over a twenty 1127 01:19:23,000 --> 01:19:28,399 thirty year period. That's really the the ribbon on, you know, the 1128 01:19:28,439 --> 01:19:30,720 present, that's that wraps it all up together. The financial plan, that's 1129 01:19:30,760 --> 01:19:34,319 just the starting point. You know, it's nice, it's a nice snapshot, 1130 01:19:34,359 --> 01:19:38,199 but it doesn't really tell you what to do next. Now, that's 1131 01:19:38,199 --> 01:19:41,479 really a great point. If you sit down with someone to do a financial 1132 01:19:41,520 --> 01:19:45,439 plan and five minutes into it, he's pointing you to a particular annuity, 1133 01:19:45,199 --> 01:19:49,640 that's a that's a red fight. I mean that person is there for their 1134 01:19:49,640 --> 01:19:55,199 own income, their own pocket and not your pocket. Yeah, because it 1135 01:19:55,199 --> 01:19:58,680 takes time to build the portfolio based off your risk tolerans and you're wanting your 1136 01:19:58,680 --> 01:20:02,239 goals and your retirement plan. It takes time to build a portfolio list tailor 1137 01:20:02,279 --> 01:20:05,600 towards you. Yeah, do that right during the first meeting. Right the 1138 01:20:05,680 --> 01:20:10,560 time it takes to understand you. Yeah, that's the most part to know. 1139 01:20:10,720 --> 01:20:13,479 You get to know who you are. We know how to manage money. 1140 01:20:13,520 --> 01:20:15,840 That's not the hard part for us. It's knowing. It's the hard 1141 01:20:15,840 --> 01:20:18,159 part is understanding who you are as an individual. I mean, you sit 1142 01:20:18,239 --> 01:20:21,439 down with someone in the in the first conversation. I had some new clients 1143 01:20:21,439 --> 01:20:25,479 on Tuesday, and the first thing we talked about is, Okay, where 1144 01:20:25,479 --> 01:20:27,960 are you from, Where did you grow up? How many children do you 1145 01:20:27,960 --> 01:20:30,119 have, What did you do for a living? What do you what are 1146 01:20:30,119 --> 01:20:33,640 your hobbies? What you getting to know these people as opposed to oh, 1147 01:20:33,720 --> 01:20:38,119 yeah, you've got one hundred grand and I've got this annuity over here that 1148 01:20:38,199 --> 01:20:40,840 it will do this and this and this and and I'm pushing in it for 1149 01:20:40,880 --> 01:20:43,840 fourteen years. And you know, I get my ten grand and everybody goes 1150 01:20:43,840 --> 01:20:47,720 home. It's just not the way that you want to do it, and 1151 01:20:47,840 --> 01:20:50,600 it should be. It should be a red flag. Like like Todd and 1152 01:20:50,680 --> 01:20:55,920 Dale and Booth just said, if you sat down with someone and products come 1153 01:20:56,000 --> 01:21:00,039 up in the first ten minutes, something's wrong. Specific products, specific products 1154 01:21:00,159 --> 01:21:03,640 don't They're like, I got thet I know exactly what products you need the 1155 01:21:03,640 --> 01:21:06,840 first ten minutes, twenty minutes of a meeting. They already thought about it 1156 01:21:06,880 --> 01:21:10,079 before you got in there. I've been doing this for a year and a 1157 01:21:10,119 --> 01:21:12,880 half now I've got a good handle on this, and here's what you need. 1158 01:21:13,039 --> 01:21:15,119 Yeah, trust me, it's it's a guaranteed win. All you're you're 1159 01:21:15,119 --> 01:21:18,520 gonna get twenty five percent bonus, the first twenty five percent bonus, ten 1160 01:21:18,560 --> 01:21:24,680 percent guaranteed grow. Yeah. Really that's all sarcasm. Yeah know that. 1161 01:21:24,840 --> 01:21:28,359 When you hear a twenty five percent bonus, ask us if it's real. 1162 01:21:28,399 --> 01:21:30,279 First, don't believe it's real. And it's not real money. It's not 1163 01:21:30,359 --> 01:21:34,880 real money. It's it's a factor that they used to calculate how much of 1164 01:21:34,920 --> 01:21:39,479 your money they're gonna send you back. But it's not like you put one 1165 01:21:39,520 --> 01:21:42,840 hundred thousand dollars into a nudy and then five years later you take it out 1166 01:21:42,920 --> 01:21:45,239 and Marcus just went down. It's not like you're gonna get one hundred and 1167 01:21:45,279 --> 01:21:48,039 twenty five thousand dollars, No, in cash. They're willing to pay you 1168 01:21:48,279 --> 01:21:53,159 six percent income on your und on one hundred and twenty five, but it 1169 01:21:53,159 --> 01:21:57,920 comes out of your principle, out of your original hundred thousands. It's very 1170 01:21:58,000 --> 01:22:03,319 it's very misleading. It's a one of the relatively new marketing tools that annuity 1171 01:22:03,319 --> 01:22:09,640 companies have come up with to get more business. And honestly, it's it's 1172 01:22:10,399 --> 01:22:16,600 it bothers us to hear because so many people believe that that really is a 1173 01:22:16,680 --> 01:22:20,199 twenty five percent cash bonus. They bring in one hundred grand, they're gonna 1174 01:22:20,199 --> 01:22:25,079 get twenty five dollars extra, and most of the time that bonus is locked 1175 01:22:25,119 --> 01:22:28,840 up in a ten or fourteen year product. And I mean that the person 1176 01:22:28,840 --> 01:22:35,680 who's providing that that annuity UH may disclose may do a decent job of disclosing 1177 01:22:35,720 --> 01:22:42,039 that that's not cash, but most people that we've run into really think it 1178 01:22:42,119 --> 01:22:45,000 is and they're waiting for it, and it's never gonna come. It's never 1179 01:22:45,039 --> 01:22:49,439 gonna come right right. So Peloton, one of our favorite stocks to hate 1180 01:22:50,159 --> 01:22:56,319 ninety seven percent it's value. The lost ninety seven percent its value, and 1181 01:22:56,439 --> 01:23:01,520 on Thursday they open higher because they announced to five your strategic partnership with Lulu 1182 01:23:01,640 --> 01:23:08,800 Lemon. Oh yeah right, Peloton will be featured in Lulu ads and Lulu 1183 01:23:08,840 --> 01:23:13,239 will become Peloton's primary apparel supplier. You know, twenty twenty was an example 1184 01:23:13,279 --> 01:23:16,680 of this people having rash decisions because during twenty twenty, when the movie theaters 1185 01:23:16,680 --> 01:23:19,600 were shut down, jims were shut down. All of a sudden, you 1186 01:23:19,760 --> 01:23:23,239 thought the streaming is gonna be the only thing. Movie theaters were never going 1187 01:23:23,279 --> 01:23:26,199 to come back. You thought gyms were never gonna come back because of things 1188 01:23:26,199 --> 01:23:30,239 like Peloton, and they all skyrocket all the stocks skyrocketed, and now we're 1189 01:23:30,239 --> 01:23:31,399 back to normal. We've been back to normal for a couple of years. 1190 01:23:31,560 --> 01:23:34,399 People love going to the gyms, and people love going to the movie theaters. 1191 01:23:34,640 --> 01:23:38,279 Those didn't go out of business like everybody thought they would. But they're 1192 01:23:38,319 --> 01:23:40,760 so hell bent on saying that they're going to go out of business back in 1193 01:23:40,760 --> 01:23:43,279 twenty twenty, and they're never gonna open again. They're never gonna make money. 1194 01:23:43,399 --> 01:23:46,119 And that was just not true. I have a hearing issues, as 1195 01:23:46,199 --> 01:23:50,159 do many people of older age, and I was concerned about going to the 1196 01:23:50,159 --> 01:23:53,680 movie. Haven't been to a movie since the pandemic. Right, yeah. 1197 01:23:53,720 --> 01:23:57,039 I took my grandkids to The Little Mermaid, and I said to my wife, 1198 01:23:57,079 --> 01:23:58,760 I set up. I don't care if I can hear it or not. 1199 01:23:58,920 --> 01:24:00,800 What do I care? It's a little right. I went into the 1200 01:24:00,800 --> 01:24:04,399 movie theater. They start the movie and it's blurring, so lord, I 1201 01:24:04,479 --> 01:24:09,279 had to take my hearing aids out. It was it was too darn loud. 1202 01:24:09,520 --> 01:24:12,319 So I don't have to be too concerned about going to the movies and 1203 01:24:12,399 --> 01:24:15,319 not hearing the experience. It's fun, Oppenheimer at the Imax one, it 1204 01:24:15,359 --> 01:24:17,920 was fun time, I understand. But a friend of mine who wears hearing 1205 01:24:17,960 --> 01:24:20,479 aids, he goes, ma'am in the bomb was office like definiely, Oh, 1206 01:24:20,520 --> 01:24:25,359 I can imagine. It was really bad. We appreciate you joining us. 1207 01:24:25,359 --> 01:24:28,840 We got one have one more segment. I got one more segment. 1208 01:24:28,880 --> 01:24:32,079 We have one more segment. Dino join us. Jonathan Sibelia is in the 1209 01:24:32,079 --> 01:24:38,239 house, and we look forward to to bringing you more of the money Matter 1210 01:24:38,319 --> 01:24:41,600 show. When it's supposed to be hollowing today, so we'll see what goes 1211 01:24:41,640 --> 01:24:46,760 on there. Right, we'll be back. We might have to break say 1212 01:24:46,840 --> 01:24:59,439 it's only a baby. Welcome back, everybody. This is our last segment 1213 01:24:59,439 --> 01:25:01,680 we do appre you're listening. Remember all you have to do his costs to 1214 01:25:01,720 --> 01:25:04,520 get together with us. We'll glad to sit down. Give me a free 1215 01:25:04,800 --> 01:25:09,680 financial plan, risk analysis, whatever you need, show you how to mitigate 1216 01:25:09,800 --> 01:25:13,600 risk. Listen, we know where we're at. Everything has a risk and 1217 01:25:13,600 --> 01:25:17,560 everything has a chance of things happening, So understand those before you before we 1218 01:25:17,600 --> 01:25:23,920 invest. All right, we got im stay tourney today. Hey Jonathan, 1219 01:25:24,079 --> 01:25:26,560 Hey, guys doing well? Good? How are you? I'm pretty good, 1220 01:25:26,560 --> 01:25:30,600 happy Sunday. Yeah, and beyond the Mike buddy till you can hear 1221 01:25:30,640 --> 01:25:32,199 you, I'm sorry if I'm a little low. So I'll get a little 1222 01:25:32,199 --> 01:25:35,920 bit closer for you, guys. Gy'd you know Jonathan houses with us here. 1223 01:25:35,960 --> 01:25:40,199 He has his own stay planning for him. He's an attorney, but 1224 01:25:40,279 --> 01:25:45,119 he also has a counting background and that it's very very helpful in what we 1225 01:25:45,199 --> 01:25:47,680 do. We all work together, we all help out each other, and 1226 01:25:47,720 --> 01:25:50,359 he's just part of our team and We're happy to have him. Well, 1227 01:25:50,439 --> 01:25:55,520 thank you guys. First off, I want to say, if anyone that's 1228 01:25:55,600 --> 01:25:58,279 listening has a topic that they want me to talk about on the air, 1229 01:25:58,399 --> 01:26:00,239 feel free to reach out to me. Day walked by my office. What 1230 01:26:00,279 --> 01:26:03,159 do you got? What do you have? What do you have? And 1231 01:26:03,479 --> 01:26:09,399 I basically go through real life things that I go that I hear each week 1232 01:26:09,439 --> 01:26:12,560 and I explain it to you guys, and hopefully hopefully it processes. But 1233 01:26:12,560 --> 01:26:15,239 if you have something going on, just give me, send me an email 1234 01:26:15,119 --> 01:26:18,039 and asked say, hey, can you talk about this? Maybe? And 1235 01:26:18,119 --> 01:26:23,039 I won't give you a direct legal advice, but maybe I'll talk about the 1236 01:26:23,079 --> 01:26:27,520 situation and uh and hit the wave tops from fifty foot fifty thousand feet. 1237 01:26:28,079 --> 01:26:30,279 You know, I got a bit. You've gotten so much better on the 1238 01:26:30,359 --> 01:26:33,600 radio too, and much run into family. Yeah. Absolutely. You can 1239 01:26:33,720 --> 01:26:40,760 email Dean at Greenberg Financial dot com or or Toddy at Greenberg Financial dot com 1240 01:26:40,880 --> 01:26:43,960 or Dylan at Greenberg Financial dot com or call us. We'll contact whatever. 1241 01:26:44,039 --> 01:26:45,920 Just get in touch with us. You have any questions for John, get 1242 01:26:45,920 --> 01:26:49,640 in touch with us. Yeah, what's our topic today? Well? What 1243 01:26:49,800 --> 01:26:55,079 I do? Your story? What's my story? So actually, it was 1244 01:26:55,119 --> 01:26:58,359 one of one of the listeners. They may not be here and listening today, 1245 01:26:58,399 --> 01:27:01,119 who knows, but it's so I won't say any names. But they 1246 01:27:01,159 --> 01:27:05,199 had a situation where mom's trust, mom and dad's trust were prepared back in 1247 01:27:05,239 --> 01:27:09,159 the nineties. And Dave, one of the first things we spoke about when 1248 01:27:09,239 --> 01:27:13,960 we first met was back then everything was a B trust. Now they have 1249 01:27:14,000 --> 01:27:17,319 a piece of property because dad died. And the way an a B trust 1250 01:27:17,439 --> 01:27:21,000 works is that after the first spouse passes, the estate splits in two. 1251 01:27:21,720 --> 01:27:26,920 Half goes into a survivor's trust, the other half goes into an irrevocable trust 1252 01:27:26,920 --> 01:27:30,520 where the assets are basically locked in. And these were very popular back in 1253 01:27:30,560 --> 01:27:34,199 the nineties. And if you don't review your trust, you could get caught 1254 01:27:34,239 --> 01:27:40,640 into a situation where a client right now, their vacation home is stuck in 1255 01:27:40,680 --> 01:27:43,760 this B trust, okay, and they're trying to get it out. They 1256 01:27:43,800 --> 01:27:47,520 can't. This might have been good planning. You're trying to get it out 1257 01:27:47,600 --> 01:27:53,960 though. Well, basically they wanted so there was three beneficiaries, three children. 1258 01:27:54,600 --> 01:27:58,319 Now the mom, the surviving spouse, she wants to give the house 1259 01:27:58,359 --> 01:28:01,239 to the one child, and you know compensate to the other children with cash, 1260 01:28:01,319 --> 01:28:04,880 but they can't do that according to the terms of the trust because things 1261 01:28:04,920 --> 01:28:08,960 were locked in. So it's always good to review your trust, don't sit 1262 01:28:09,039 --> 01:28:12,119 on it for thirty years, because we could be in this situation. So 1263 01:28:12,119 --> 01:28:13,880 how do you go about it? Are you able to get it out or 1264 01:28:13,960 --> 01:28:15,319 is it locked in there forever? Well, I mean, it all depends. 1265 01:28:16,119 --> 01:28:23,279 There are some strategies that but they're expensive. You know, if we 1266 01:28:23,359 --> 01:28:28,239 have an irrevocable trust, we possibly can do a non judicial family settlement agreement, 1267 01:28:28,439 --> 01:28:30,800 but you know that gets more attorneys involved, and that could get very 1268 01:28:30,800 --> 01:28:35,920 expensive. There's some decanting things that you can do here in Arizona that's allowed 1269 01:28:36,279 --> 01:28:41,119 under certain circumstances, and you know, the rules change, but you might 1270 01:28:41,159 --> 01:28:45,119 not be able to pull an asset out with a decanting feature. The biggest 1271 01:28:45,159 --> 01:28:47,720 problem is getting the asset out and getting it to where you want it to 1272 01:28:47,760 --> 01:28:55,239 be without tax, right, without capital gains tax exactly because I think that 1273 01:28:55,319 --> 01:28:58,880 I know the people you're talking about. The home may have been purchased for 1274 01:28:59,720 --> 01:29:01,880 less in one hundred grand. Well, and even then, even if you 1275 01:29:02,000 --> 01:29:05,840 do want it to go into the b trust, there's ways ways that so 1276 01:29:06,000 --> 01:29:11,640 back that I'm assuming the way the B trust was set up, where after 1277 01:29:11,680 --> 01:29:15,479 the second spouse passes, there's no second step up in basis. You could 1278 01:29:15,520 --> 01:29:23,640 review that and really and possibly reward that trust if you catch it in time. 1279 01:29:23,800 --> 01:29:28,319 Where after the second spouse passes, there'll be another step up in basis, 1280 01:29:28,319 --> 01:29:31,399 so the kids will get maximum tax benefit. But it's unusual, isn't 1281 01:29:31,439 --> 01:29:35,000 it. Normally you get a step up in basis when the first spouse dies 1282 01:29:35,479 --> 01:29:40,520 and then when the second spouse. Now it's not splits into two trust again 1283 01:29:40,600 --> 01:29:44,319 back in the day, I don't see that so much anymore. But uh, 1284 01:29:44,359 --> 01:29:46,880 there is no step up in basis for the irrevocable trust. But it 1285 01:29:46,960 --> 01:29:53,680 got splipped acause the un you got taxed on in your state was much less 1286 01:29:53,720 --> 01:29:57,000 correct. That's fine, it was six hundred thousand. That's it now Now 1287 01:29:57,840 --> 01:30:00,399 knock, I have an A B trust. I probably need you to take 1288 01:30:00,439 --> 01:30:02,399 a look at it. Yeah, I know. Our mind was formed at 1289 01:30:02,399 --> 01:30:05,600 the same time, being back in the eighties because Seconder the thousand was the 1290 01:30:05,680 --> 01:30:10,680 maximum of state tax exemption, and by doing an living trust you could bring 1291 01:30:10,720 --> 01:30:14,319 that to one point two million when US twelve and a half millions, and 1292 01:30:14,399 --> 01:30:16,079 back then we said one point two million would be so happy to be there. 1293 01:30:16,279 --> 01:30:20,079 Yes, and and well, what's new is that back in Durney Obama 1294 01:30:20,079 --> 01:30:27,079 administration they set up the portability and portability basically allows you to use that exemption 1295 01:30:27,119 --> 01:30:30,680 without having to create a second trust before. You can only do it when 1296 01:30:30,800 --> 01:30:34,840 you split the estate. So portability election is you know, right now we 1297 01:30:34,920 --> 01:30:39,560 have twelve point nine million dollars an exemption per person, but if you don't 1298 01:30:39,560 --> 01:30:44,479 elect portability, you lose it. Or back then if whatever that amount was 1299 01:30:44,800 --> 01:30:49,800 portability portability. Okay, So with an exemption, every person gets twelve point 1300 01:30:49,880 --> 01:30:54,760 nine million dollars, all right, and when the first when somebody passes away, 1301 01:30:55,199 --> 01:31:00,720 when the first bout passes, that twelve point nine is law unless you 1302 01:31:00,800 --> 01:31:09,920 elect portability on your seven h six and by doing that can utilize seven six. 1303 01:31:10,760 --> 01:31:16,199 Excuse me. Okay. The seven H six is the deceased tax returns, 1304 01:31:16,279 --> 01:31:20,520 so the estate tax returns I r U S Form seven h six. 1305 01:31:20,520 --> 01:31:25,239 Excuse me. Sometimes I feel like I'm talking to my colleagues when I forget 1306 01:31:25,319 --> 01:31:28,439 that, you know, I'm talking to people who it's the problem. You 1307 01:31:28,479 --> 01:31:31,720 guys have written all these laws, so guys like us don't even know what's 1308 01:31:31,720 --> 01:31:35,199 going on and have to come to you. Well, that might, but 1309 01:31:35,560 --> 01:31:39,199 that's the thing. That's what an initial consultation is. That's what a free 1310 01:31:39,239 --> 01:31:42,720 consultation is. You come in and I can explain it a little bit better. 1311 01:31:42,880 --> 01:31:45,039 I you know, I'm not on a limited you know, five ten 1312 01:31:45,119 --> 01:31:47,479 minutes. Here, we can sit down for thirty minutes to an hour and 1313 01:31:47,520 --> 01:31:53,960 I can explain everything in more detail, and something that's a little bit uh 1314 01:31:54,279 --> 01:31:57,960 may come down to more of a layman's term good. And we find when 1315 01:31:58,000 --> 01:32:01,600 you go through the financial planning process with Dylan and Todd often that leads to 1316 01:32:01,920 --> 01:32:08,159 a visit with Jonathan. And like with Todd and Dylan, the consultation is 1317 01:32:08,199 --> 01:32:12,600 free. There is no charge to get a financial plan from Todd and Dylon. 1318 01:32:12,760 --> 01:32:15,399 We must be crazy. We give away the financial plan, which leads 1319 01:32:15,399 --> 01:32:21,800 into the free estate plan and well consultation, I should say, And then 1320 01:32:21,840 --> 01:32:26,119 we hope that they do business with us. Yeah, somehow we're doing pretty 1321 01:32:26,159 --> 01:32:28,840 well though, I guess we're doing. It's all about building a relationship, 1322 01:32:28,880 --> 01:32:31,640 not necessarily just selling something well put well put, yeah, well put, 1323 01:32:31,880 --> 01:32:36,199 and John and being right here in the office. There are things that happened 1324 01:32:36,279 --> 01:32:42,359 throughout the day, uh, in our business that have we bring John in 1325 01:32:42,479 --> 01:32:45,600 right right there, And there's things that happen in John's business where he brings 1326 01:32:45,680 --> 01:32:49,720 us in right there because you're you're physically here in the office. But that 1327 01:32:49,960 --> 01:32:56,439 combination of Dylan and Todd and John is a great combination. I mean, 1328 01:32:56,640 --> 01:33:00,159 they're they're really and when you get done with that, then you get Dean 1329 01:33:00,239 --> 01:33:02,399 and I you know, I mean, it was not the like write Dean, 1330 01:33:02,920 --> 01:33:05,520 was not the like. No, it's a team appro I got a 1331 01:33:05,560 --> 01:33:11,199 letter the other day too from one of our clients talking about how like a 1332 01:33:11,319 --> 01:33:15,520 team approach that how much they love it, and and they and the referrals 1333 01:33:15,560 --> 01:33:19,840 that they've given us have enjoyed it because it's a family atmosphere, true family 1334 01:33:19,880 --> 01:33:25,079 atmosphere, they said, with the ability to be a team approached and not 1335 01:33:25,199 --> 01:33:29,720 a sterile financial institution that's so many places off. Someone asked me the other 1336 01:33:30,039 --> 01:33:32,119 took the time to write me a letter and thank us. Someone asked me 1337 01:33:32,159 --> 01:33:35,840 the other day, do we do we really get along? Like it sounds 1338 01:33:35,920 --> 01:33:40,239 like we get along. It's not. It sounds like you're all buddies you'd 1339 01:33:40,279 --> 01:33:43,079 really get along that well work Well, let's see, one is my son, 1340 01:33:43,239 --> 01:33:45,680 the other I coached you. Yeah, we never get invited to your 1341 01:33:45,680 --> 01:33:48,560 house, so that that works out. So the answer is, no, 1342 01:33:49,720 --> 01:33:53,680 we're not friends. We don't get along. We really hate We do have 1343 01:33:53,760 --> 01:33:59,159 some fun company outings though we we do get along with the great work environment 1344 01:33:59,640 --> 01:34:02,439 every but he is part of the team. Nobody's trying to one up anybody 1345 01:34:02,439 --> 01:34:06,880 else. And uh, I like it. And John, you've been a 1346 01:34:06,880 --> 01:34:13,720 great addition with the back to the trust. Uh. There are a lot 1347 01:34:13,840 --> 01:34:18,039 of moving parts in a trust, sure, and you've trust is one of 1348 01:34:18,079 --> 01:34:21,399 those things that I set mine up in eighty three. You put it up, 1349 01:34:21,439 --> 01:34:26,560 You get the binder right from the attorney, and you put the binder 1350 01:34:26,640 --> 01:34:29,880 in your office and go, Okay, I've done what I need to do. 1351 01:34:30,359 --> 01:34:32,239 And then you look at it ten years later and go what it was 1352 01:34:32,319 --> 01:34:38,399 I thinking? You know, and people you put as successor trustees are dead 1353 01:34:38,520 --> 01:34:41,520 or you don't talk to him. And somebody that was put in charge of 1354 01:34:41,560 --> 01:34:45,239 Jeanie, your kids or my child, you know they're they're not my child's 1355 01:34:45,279 --> 01:34:49,159 enough almost forty Uh, you know, I don't need him to be monitoring 1356 01:34:49,239 --> 01:34:54,640 her assets anymore. All of those things need to be looked at, along 1357 01:34:54,640 --> 01:34:58,520 with beneficiaries on retirement accounts, things like that that we've we've talked about a 1358 01:34:58,520 --> 01:35:00,960 lot on the show, but I think the living trust is probably one of 1359 01:35:01,000 --> 01:35:06,640 those things that's ignored more than almost anything, right, Yeah, and it's 1360 01:35:06,760 --> 01:35:12,439 it's great because of the capacity purposes. I have another client that is actually 1361 01:35:12,479 --> 01:35:16,159 a listener here that well, we haven't engaged yet, however, we were 1362 01:35:16,199 --> 01:35:24,119 considering doing a beneficiary deed. However, he is looking to give extended family 1363 01:35:24,159 --> 01:35:27,680 members some assets, and I think the best way to do it is not 1364 01:35:27,720 --> 01:35:31,640 through a beneficiary deed but through a trust because it's a lot easier and it 1365 01:35:31,760 --> 01:35:36,560 will spout. It basically will hold the trustees feet to the fire. There 1366 01:35:36,960 --> 01:35:41,319 are so many things you can do when it comes down to gifting things and 1367 01:35:41,479 --> 01:35:45,800 and people inheriting things. And you have to be so careful about capital gains. 1368 01:35:45,840 --> 01:35:48,000 And we've talked about this before. You can't give your kid your house 1369 01:35:48,079 --> 01:35:54,039 now when you're ninety years old, because you know you got this giant capital 1370 01:35:54,079 --> 01:35:59,720 gain. It's gonna disappear in a relatively short period of time. No, 1371 01:36:00,359 --> 01:36:04,000 Ye, Any last things you want to say, uh no, Happy Sunday 1372 01:36:04,079 --> 01:36:09,359 everybody, and I'll see you next Sunday. All right, listen, another 1373 01:36:09,359 --> 01:36:13,640 great show. Thanks everybody for coming, listening and being part of what we 1374 01:36:13,800 --> 01:36:15,840 do. We appreciate it. This is why we'd like to give back to 1375 01:36:15,920 --> 01:36:18,960 you. You need some more help, call us. You got to stay 1376 01:36:18,960 --> 01:36:23,239 planning, financial planning, money management. You name it will help you with 1377 01:36:23,279 --> 01:36:27,720 it. We'll be back next week. We're your money matters. Be happy, 1378 01:36:28,000 --> 01:36:38,880 be healthy, and let's all be profitable. Let's say it's all a name