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

100:00:02,319 --> 00:00:06,440Good morning everybody. It's Sunday morning. It's eight o'clock at seven ninety K200:00:06,519 --> 00:00:11,439and is Tea. This is DeanGreenberg and I will be starting off bringing300:00:11,480 --> 00:00:13,759you the Money by the Show withthe rest of the crew. Today,400:00:13,759 --> 00:00:17,160we're going to talk about a lotof things. Pick anything. There's so500:00:17,239 --> 00:00:23,559much going on in the world.There is especially right here affecting us,600:00:23,600 --> 00:00:27,280our money, our economy. Howare we gonna go ahead and do things700:00:27,280 --> 00:00:32,960and go forward? That is aproblem. We've got the government that wants800:00:32,960 --> 00:00:36,920to shut down because they can't cometo an agreement on how to fix the900:00:37,000 --> 00:00:42,759border, stop spending, and alsogo ahead and fun things. Guess what,1000:00:43,039 --> 00:00:47,600it's simple. Shut the border,cut spending, and redo the budgets.1100:00:49,520 --> 00:00:53,439We need it. Everyone talks aboutit. It's not like it's isolated.1200:00:54,159 --> 00:00:57,960But now, let's shut down thegovernment. Let's shut down the government.1300:00:58,200 --> 00:01:02,000Why don't we stop paying them ifthey don't balance the budget, if1400:01:02,000 --> 00:01:07,560they go ahead and keep raising debt, why don't we stop paying them that1500:01:07,719 --> 00:01:11,120ceiling debt ceiling will never be risen, the budget will be resolved. Stop1600:01:11,359 --> 00:01:19,959paying them. Them being Congress,the idiots that won't get along. That1700:01:19,159 --> 00:01:25,400just go ahead like a bunch ofsheep saying I'm doing this for my constituents.1800:01:25,480 --> 00:01:29,280Right, sure, whatever you say. Okay, if it's not the1900:01:29,319 --> 00:01:34,319government shutdown, let's talk about thestrikes. We'll talk about them too.2000:01:34,760 --> 00:01:38,920United Auto Work is wanting thirty toforty percent raises. Well, don't we2100:01:40,000 --> 00:01:45,519all. But while they're doing that, we're all losing money. Markets go2200:01:45,599 --> 00:01:53,640down, inflation goes higher, keeppaying more. They're there for themselves.2300:01:53,680 --> 00:01:59,120Don't you think one second, forone second that they care about anybody else2400:01:59,439 --> 00:02:07,680but them else. We're gonna talkabout why. I think personally, it2500:02:07,840 --> 00:02:15,599was horrible to watch our president orany president stand in line with the picketers2600:02:17,599 --> 00:02:24,680under the cover. I'm here forthe working man. You're there to tell2700:02:24,919 --> 00:02:30,360unions go strike because I am themost pro union president that there is.2800:02:30,919 --> 00:02:36,159But be the most pro union presidentthere is means we're going to have more2900:02:36,199 --> 00:02:43,919inflation. You don't balance it outand tell people, and you don't tell3000:02:43,960 --> 00:02:46,520them the truth. Keep doing it, and guess what. We'll go to3100:02:46,599 --> 00:02:53,800Mexico and start building our plants andbuilding our cause. We'll go overseas,3200:02:53,520 --> 00:02:58,039we'll go other places that we cango ahead and do the things that we3300:02:58,120 --> 00:03:02,599need to do so we can getthe way to the Americans their vehicles at3400:03:02,599 --> 00:03:07,439a pretty down good price. No, what does our government do, Just3500:03:07,520 --> 00:03:12,400keep pushing down electric vehicles, electricvehicles, No oil, no, no3600:03:12,520 --> 00:03:15,280drilling, no nothing. So whatdoes oil do? It gets back to3700:03:15,360 --> 00:03:21,840ninety three dollars a barrel or so. Inflation is sticky. Oil is not3800:03:21,960 --> 00:03:29,599helping. Interest rates the highest they'vebeen in over fifteen years, mortgage rates3900:03:29,680 --> 00:03:36,080highest they've been in over fifteen years. And then we find out the money4000:03:36,159 --> 00:03:39,240that we continue to argue about sendingthe Ukraine or not. It's not just4100:03:39,319 --> 00:03:50,039be using for the war. Theyare subsidizing a whole bunch of things,4200:03:50,080 --> 00:03:53,879including small businesses. Well, Ihave a pretty much small business. I4300:03:53,919 --> 00:03:59,360would love to be subsidized. Youdon't even give me money, give me4400:03:59,400 --> 00:04:08,280tax breaks, help out our ownpeople. Stop giving money to everybody around4500:04:08,319 --> 00:04:14,000the world, but ourselves stop itwith the inflationary stop it going ahead and4600:04:14,120 --> 00:04:18,560opening up these boarders. Stop itright now so we can have a situation4700:04:18,879 --> 00:04:28,800that we can build our economy andstop weakening our entire country and our military.4800:04:29,160 --> 00:04:33,120I just feel like we are stretchingand stretching and stretching and in the4900:04:33,120 --> 00:04:38,120meantime, and I don't know why, but the markets are down again.5000:04:38,160 --> 00:04:44,600In September they closed down the monthfive percent. They closed down on the5100:04:44,720 --> 00:04:47,480SMP, three and a half onthe Dow, almost six percent on the5200:04:47,560 --> 00:04:54,319NASDAC, and the equal weighted wasalso down five and a half. The5300:04:54,480 --> 00:05:00,680equal weighted SMP five hundred is thereal SMP you should be looking out for5400:05:00,759 --> 00:05:05,439most of the time, and they'reusually in steplock with the others SMP five5500:05:05,519 --> 00:05:10,079hundred, and I know they've donesome changes, but the SMP five hundred,5600:05:10,399 --> 00:05:12,639that's up eleven point seven percent.And by the way, that was5700:05:12,720 --> 00:05:16,560up nineteen percent not too long ago. Up eleven point seven percent. Right,5800:05:17,639 --> 00:05:23,680it's been up so much because ofthose text stocks that have the large5900:05:23,720 --> 00:05:29,959tex stock that have rallied one hundredtwo hundred percent. The equal weighted is6000:05:30,160 --> 00:05:32,759every stock in the S ANDP hasthe same waiting how they've done up and6100:05:32,800 --> 00:05:36,120down a price, And that's noteven up a half a percent for the6200:05:36,199 --> 00:05:42,639year, So it distorts returns forpeople. It really does. The dials6300:05:42,720 --> 00:05:46,800up one point one. That's moreof a realistic now is that which was6400:05:46,879 --> 00:05:50,920up almost forty is up twenty sixpercent. So we've had a pullback.6500:05:53,879 --> 00:05:58,560So where do we go from now? Well, before we talk about where6600:05:58,560 --> 00:06:02,040we go from there, I hopeyou've been mitigate risk. We talk about6700:06:02,040 --> 00:06:04,839it all the time. How tomitigate risk? Let me tell you.6800:06:04,839 --> 00:06:08,480If you don't know, come talkto us, Go talk to your advice6900:06:08,519 --> 00:06:11,720and go talk to somebody. They'regoing to help you mitigate risk. And7000:06:11,920 --> 00:06:15,360they don't even understand what that means. Or just tell us you don't worry7100:06:15,399 --> 00:06:18,839about it. Markets go down,they come back on say that's true.7200:06:20,360 --> 00:06:26,000If I was an institution and itdidn't matter because I'm always going to get7300:06:26,000 --> 00:06:28,920more money coming in. So ifthings are lower, I can always buy7400:06:28,959 --> 00:06:35,360lower if I like it. ButI'm an individual and I have risk tolerances7500:06:36,560 --> 00:06:42,720and I have emotions, and whenthe markets go down, it changes the7600:06:42,759 --> 00:06:47,079way I look at my lifestyle andmy life. So I want to be7700:06:47,160 --> 00:06:49,959able to mitigate some of the risk, not all of it, because I7800:06:50,000 --> 00:06:53,079know if I mitigate all of it, I can't make any money on the7900:06:53,160 --> 00:06:56,959upside. So how do I mentigaterisk? And what does that mean?8000:06:58,319 --> 00:07:00,920Well, that means for the withdown five and you're down three, that8100:07:00,959 --> 00:07:05,959you've done a better job than theS and P. Right, that's how8200:07:05,959 --> 00:07:11,079you look at it. Markets aredown ten and you're down five or six,8300:07:11,720 --> 00:07:17,600you're mitigated risk. Mitigated risk couldbe using the inverse funds, buying8400:07:17,959 --> 00:07:23,519insurance, protection puts, selling calls, a whole bunch of different things,8500:07:23,600 --> 00:07:29,959raising cash, put more in fixedincome. Tactical strategy. And people think8600:07:30,000 --> 00:07:32,319if you say tactical strategy, youmean market timing. I do not mean8700:07:32,360 --> 00:07:36,360market timing, because I would neversell everything and then buy everything. I8800:07:36,439 --> 00:07:43,360reduce my allocations when over evaluations arein the marketplace, and right now there8900:07:43,480 --> 00:07:49,160is over evaluations. So if I'dlike to be sixty to seventy percent invested9000:07:49,199 --> 00:07:55,720when fully that's my full investment position, I cut that back to maybe forty9100:07:55,759 --> 00:08:00,800or fifty percent, maybe even sixtyif I'm seventy, but cut back a9200:08:00,800 --> 00:08:05,079little bit. Then you put itin the money markets. Now you can9300:08:05,120 --> 00:08:09,439get over five percent. Government bombs, you can get over five percent.9400:08:09,480 --> 00:08:16,399There's a lot of government bomb ladderswe've been doing. That's called tactical strategy9500:08:16,519 --> 00:08:22,800management of money. Okay. Theothers you know, asset allocation, Sure,9600:08:24,560 --> 00:08:33,039we asset allocation inside our strict aretactical strategies and the reason we do9700:08:33,120 --> 00:08:37,039it it's risk reward. And Idon't hear a lot of people ever really9800:08:37,039 --> 00:08:39,759talk about risk reward, but it'sso important when the risk is greater than9900:08:39,799 --> 00:08:45,799the reward. In our opinion,we reduce risk. If we think the10000:08:46,039 --> 00:08:48,519reward is greater than the risk,we increase. That means you're buying low10100:08:48,559 --> 00:08:54,600selling high. When we saw interestrates coming down, we got out of10200:08:54,639 --> 00:09:01,480long term bonds into short term bonds, into short term maturities. That helped10300:09:01,480 --> 00:09:09,000our portfolio tremendously because we were stillwould interest rates going up. We have10400:09:09,039 --> 00:09:15,039one or two year bonds on maybethree that's it. That means in the10500:09:15,120 --> 00:09:16,120one or two or three years,and we got a bunch that we did10600:09:16,120 --> 00:09:22,600two years AT's starting to mature nowcoming up December twenty twenty four, more10700:09:22,600 --> 00:09:24,600bonds are come and do and thenwe're going to roll them and roll them10800:09:24,639 --> 00:09:37,399higher. Tactical strategy mitigating risk.If you're not getting it and you want10900:09:37,440 --> 00:09:41,360it, think about it, andthe least come and talk to us about11000:09:41,360 --> 00:09:46,120it. Talk to us on howwe would do that in your portfolio.11100:09:46,480 --> 00:09:48,480And it all leads up to theplan. I know everyone's doing financial planning.11200:09:48,480 --> 00:09:52,720We're doing it. It's a it'sa necessary thing to have done.11300:09:52,759 --> 00:09:54,879Now. It's a beautiful picture ofwhere you stand. And you know what11400:09:54,960 --> 00:09:58,600the biggest thing is at the endof the day, you realize, I'm11500:09:58,639 --> 00:10:01,720not gonna run out of money becauseyou set your portfolio up and you're spending11600:10:01,720 --> 00:10:05,279habits. I'm not going to runout of money. And those that do11700:10:05,360 --> 00:10:09,440spend all their money and their portfoliosand they do it not they knew it11800:10:09,440 --> 00:10:11,480ahead of a time, and thenthey have plan bing where they're going to11900:10:11,519 --> 00:10:16,639get other income from. And obviouslyyou're older and everything else. But when12000:10:16,679 --> 00:10:22,720you don't want to do is yousit there and not do something? All12100:10:22,799 --> 00:10:26,000right? This strike is really buggingme, and I really don't like the12200:10:26,000 --> 00:10:31,600way the media frames it. Butthat's not a surprise. It's for the12300:10:31,639 --> 00:10:33,200working man. It's for the workingman. It's for the working man.12400:10:33,279 --> 00:10:39,000We're all working men or women.We all have jobs to go to.12500:10:41,399 --> 00:10:43,080Some make more money than the others. It has nothing to do with the12600:10:43,120 --> 00:10:50,480money. It has everything to dowith the work ethic. People say,12700:10:50,519 --> 00:10:54,879oh, you don't want to you'rejust because you're doing well. You don't12800:10:54,879 --> 00:10:58,480want people to make more money.That's not true. Whatsoever I've had the12900:10:58,559 --> 00:11:01,480industry. I've had businesses that minimumwage was the idea, and I have13000:11:01,919 --> 00:11:07,080investment firms. I have been onboth sides of the spectrum. I talk13100:11:07,159 --> 00:11:11,759to employees. I understand the economyand I understand the way it works.13200:11:13,039 --> 00:11:16,840And since for twelve years, fifteenyears, I've been telling you agust rates,13300:11:16,159 --> 00:11:20,679non agust rates, wages going up, minimum wage going up. It's13400:11:20,759 --> 00:11:26,080fine, except it's going to bringon inflation because then at some time we're13500:11:26,080 --> 00:11:30,879not going to be able to affordthe things we afford now. So corporation,13600:11:30,919 --> 00:11:35,919they're going to spend the money ratherthan going ahead and training and developing.13700:11:35,720 --> 00:11:43,039They're gonna go get robots, artificialintelligence, are going to start making13800:11:43,080 --> 00:11:48,440burghers and French fries. It's allgoing to be done by machine. So13900:11:48,559 --> 00:11:52,159those low paying jobs, which aren'tlow paying anymore. It's fifteen sixteen,14000:11:52,240 --> 00:11:58,879eighteen dollars are going to go away. And if you don't get educated,14100:11:58,639 --> 00:12:03,679you're I'm gonna find yourself having jobsother than manual doing things that you have14200:12:03,759 --> 00:12:09,919to do like clean clean hotels,clean homes, agriculture, being out in14300:12:09,919 --> 00:12:13,559the hot sun all the time.There'll be jobs for you you know might14400:12:13,600 --> 00:12:18,200not like them, but there's noone to blame but yourself that you didn't14500:12:18,200 --> 00:12:22,039want to learn more. To dothe things that will do it, you14600:12:22,080 --> 00:12:24,919have to look at where you wantto be in life and what you want14700:12:24,919 --> 00:12:28,159to do in life. If youwant don't want to work outside, then14800:12:28,399 --> 00:12:31,799you got to figure out how you'regonna get inside. If you want to14900:12:31,799 --> 00:12:37,440work outside, that you got tofigure out how to get outside the type15000:12:37,480 --> 00:12:39,600of jobs you want. You wantto own a business, and you better15100:12:39,639 --> 00:12:46,679become a person that understands risk.You want to work for a corporation,15200:12:46,879 --> 00:12:52,639understand if there's management levels that yougrow with, you're not gonna go from15300:12:52,600 --> 00:12:56,879from level one to level fifteen overnight. You might not ever get to level15400:12:56,919 --> 00:13:03,440fifteen. Everybody can't be the CEO. Everybody can't be to top management.15500:13:03,759 --> 00:13:07,799You earn the right to get thereby the management and the company's trusting you,15600:13:07,720 --> 00:13:09,759and that means you got to doa lot of stuff you don't like.15700:13:11,080 --> 00:13:15,039Very few people do I know,that work for corporation for a long15800:13:15,080 --> 00:13:22,240time actually enjoyed the job until theyhave some independence. Because most corporations tell15900:13:22,279 --> 00:13:26,320you what you can do, howyou can do it, what you could16000:13:26,360 --> 00:13:31,039say, how you cannot say.And human resources just drives people crazy today16100:13:31,080 --> 00:13:35,159because they don't allow anyone to bethemselves. But if that's the job you16200:13:35,320 --> 00:13:39,879choose, then be the best youcan at the job and earn the money16300:13:39,960 --> 00:13:43,519you can and stop striking. Andthen the President of the United States of16400:13:43,559 --> 00:13:50,960America thinks it's okay to go onthe picket line and say I'm here for16500:13:52,000 --> 00:13:56,080the workers. I'm not here.I'm not saying what they should get.16600:13:56,120 --> 00:13:58,039Well, once you put your footdown, and once you're walk in that16700:13:58,159 --> 00:14:01,440line, you say, and Iagree with the United order work is and16800:14:01,440 --> 00:14:07,879they should get a thirty forty percentrace because it's corporate greed in their minds.16900:14:07,279 --> 00:14:16,240Do they forget it's just what maybeten years ago GM went bankrupt and17000:14:16,600 --> 00:14:20,120everybody got hurt. Even if youdidn't own GM, even if you just17100:14:20,159 --> 00:14:22,120thought, oh, this is great, I didn't own a big deal in17200:14:22,159 --> 00:14:28,480the corporation. You have a pensionplan, you have a mutual fund,17300:14:28,519 --> 00:14:33,279you own GM. If you havenone of that, okay, say what17400:14:33,360 --> 00:14:37,440you want, do what you want. I don't care. There's very few17500:14:37,600 --> 00:14:41,559people that don't have that have something. And if you're not, and you're17600:14:41,639 --> 00:14:46,480and you're then you're a well being, healthy person that can work, able17700:14:46,559 --> 00:14:52,600body that can work. Then youshould be ashamed of yourself because there's so17800:14:52,639 --> 00:14:56,399many job opportunities out there right now. But the problem is we don't have17900:14:56,440 --> 00:14:58,840people that want to work. Theydon't want to work, they don't want18000:14:58,840 --> 00:15:01,960to get educated, they don't wantto do the things that it matters.18100:15:03,360 --> 00:15:07,519I can't tell you how many peopleI talk to. Let's say half the18200:15:07,720 --> 00:15:11,759time. People don't even show upfor their interviews. It's almost like they're18300:15:11,759 --> 00:15:16,320just getting interviews to tell someone theyhave an interview, whether it's the welfare18400:15:16,440 --> 00:15:20,600or whether it's a job unemployment people, or whether it's their parents family who18500:15:20,600 --> 00:15:28,039knows, and never show up.How do you do that? It means18600:15:28,080 --> 00:15:31,759they don't want choms. So AIrobots will take over. If you think18700:15:33,120 --> 00:15:39,799that you can build a car witha robot, think again, because they're18800:15:39,799 --> 00:15:46,559doing it already. Similar in plants, it's half robots now, putting them18900:15:46,600 --> 00:15:50,279on people, tightening up things,making sure the right What are you're gonna19000:15:50,320 --> 00:15:56,000find is that you're getting people aregonna get raises. The only ones that19100:15:56,080 --> 00:16:00,840are gonna keep those raisors are theones that they don't get rid of.19200:16:02,799 --> 00:16:07,480Every three people will be cut downto two people, and that's how they'll19300:16:07,480 --> 00:16:11,320pay for it. The benefits willgo away. I mean, think about19400:16:11,360 --> 00:16:15,279it. You join a corporation becauseyou want benefits. You get all types19500:16:15,320 --> 00:16:21,679of benefits, all types and thegreat benefits. Now you need to join19600:16:21,840 --> 00:16:25,960and have a work week. Iwant to work four days a week.19700:16:26,399 --> 00:16:29,799Let's work. Let's mount the timeat work. But I want to say19800:16:30,000 --> 00:16:33,200mount to pay, but more,even want more pay, I want more19900:16:33,240 --> 00:16:38,960pay. None of this makes sense. It's unsustainable. And say they give20000:16:40,000 --> 00:16:44,120it to them. That car thatyou might buy a few years ago at20100:16:44,159 --> 00:16:48,559forty thousand, which is now fiftyfive sixty grand, there'll be seventy thousand20200:16:48,600 --> 00:16:56,840dollars. We cannot as a countryafford this. And by raising the prices20300:16:56,600 --> 00:17:00,440on instruments and saying we'll get peoplewith more money, you are separating the20400:17:00,600 --> 00:17:06,759rich from the poor. You're separatingthe classes even more and more and more.20500:17:10,319 --> 00:17:17,319And it's not good for America.And all they talk about is how20600:17:17,359 --> 00:17:19,599we have to do all this stuffthat's going to cost all this money.20700:17:21,079 --> 00:17:29,640Climate change, climate change, climatechange horse manure. You got to get20800:17:29,680 --> 00:17:33,960yourselves going. We have inflation,so we have an administration that won't do20900:17:34,039 --> 00:17:38,119anything to help get inflation down,and we have the Federal Reserve that says21000:17:38,160 --> 00:17:41,720I have to keep raising interest rateslonger for higher higher, for longer.21100:17:44,599 --> 00:17:51,960That is not good. Longer forhigher means it's gonna take much longer for21200:17:52,039 --> 00:17:56,200things to happen, and eventually we'regonna hit that tipping scale. Credit Card21300:17:56,240 --> 00:18:04,000debt is the highest been in years. Trillions of dollars on credit cards,21400:18:04,839 --> 00:18:07,200which you and I both know.If you have it dead on the credit21500:18:07,200 --> 00:18:12,759card, very few people pay itoff. That means it's interest, and21600:18:12,799 --> 00:18:17,480it's not six or seven or eightpercent interest. And most people once they21700:18:17,480 --> 00:18:19,240start putting money on there, it'snot even fourteen or fifteen. They're up21800:18:19,240 --> 00:18:25,319in the twenties. That is amazing. If you have ten thousand dollars ten21900:18:25,519 --> 00:18:29,960thousand dollars on a credit card,you could be paying two to twenty five22000:18:30,039 --> 00:18:36,559hundred dollars a month a year juston that. That's an extra two hundred22100:18:36,599 --> 00:18:40,279dollars a month just to the interest. If you put anything else on there,22200:18:40,319 --> 00:18:44,359how do you pay it down?People don't pay him down, and22300:18:44,400 --> 00:18:48,200then guess what happens down the roadwhen they can't afford anything and their savings22400:18:48,200 --> 00:18:56,839have been depleted. Bankruptcies go up. There's just so much money that can22500:18:56,880 --> 00:19:06,559be spent to keep every thing going. The pandemic obviously got people money.22600:19:06,640 --> 00:19:10,599Got him in the mindset of notworking. People's inherited money. You go22700:19:10,680 --> 00:19:17,880through all that way, they're gonnaget money. It's a big mindset when22800:19:17,880 --> 00:19:22,359you go from retiring and having anincome to not having an that same income22900:19:22,359 --> 00:19:25,960anymore coming in and now all thatmoney you saved now you have to figure23000:19:25,960 --> 00:19:33,119out how to spend it gingerly prudentlyso you don't run out of money.23100:19:33,400 --> 00:19:36,759The problem is, we don't knowwhen we're gonna die. You don't know23200:19:36,759 --> 00:19:38,319if you have five years, tenyears, twenty years, or thirty years.23300:19:40,559 --> 00:19:45,160So you've got a plan on twentyfive, thirty years, you can't23400:19:45,200 --> 00:19:47,279go, well, you know,I figured it out, maybe I only23500:19:47,319 --> 00:19:49,079got five or ten years. I'llspend it all now. Then one happens23600:19:49,079 --> 00:19:56,920when you've got another ten or twentyyears. Yes, I agree that it23700:19:56,960 --> 00:20:03,359is a It is a bell curveof spending. You start retiring and you're23800:20:03,400 --> 00:20:07,200late fifties, see your mid sixties. For one or two years, you23900:20:07,279 --> 00:20:08,920kind of you mightbe do something youwant to do, but you don't spend24000:20:08,920 --> 00:20:12,160so much. You get a feelingnow you know how much you can actually24100:20:12,160 --> 00:20:17,039spend save and how much it's gonnacost. How you start getting a little24200:20:17,039 --> 00:20:19,200bit older and you still have allyour energy in your health, you start24300:20:19,279 --> 00:20:23,480spending more and more and more,probably more into like the mid seventies or24400:20:23,480 --> 00:20:26,400so. Then it starts coming offa little bit. And then once you24500:20:26,480 --> 00:20:30,400hit eighties, I've seen people justsay, hey, enough enough. I24600:20:30,440 --> 00:20:33,519don't want to travel like that,I don't want to spend like that.24700:20:33,599 --> 00:20:37,039I'm tired. I'm happy to beinghome. I go get my four o'clock24800:20:37,039 --> 00:20:41,440cocktail. I'm in bed by seven, and everything's great. And so that's24900:20:41,440 --> 00:20:45,640the bell curve. You start offslower, you start spending money in the25000:20:45,680 --> 00:20:49,359middle, and then you start spendingless later on. It's just natural.25100:20:51,039 --> 00:20:55,799So I always talk to people aboutdon't worry about spending some money between you're25200:20:55,839 --> 00:21:00,839sixty five and eighty years old,but don't overspend end, knowing that down25300:21:00,960 --> 00:21:03,319the road is going to be less. But you have to put a plan25400:21:03,440 --> 00:21:07,359together. You gotta you have toknow how much money you're gonna be getting25500:21:07,920 --> 00:21:11,440or assuming you're gonna get me time, and almost how much it's gonna your25600:21:11,440 --> 00:21:15,359expensives are gonna be. And there'salways something that comes up. Always,25700:21:17,400 --> 00:21:18,920So you look at the world rightnow, you look at the situation,25800:21:19,039 --> 00:21:23,759go, hey, I should bebuying gold. And why did they say25900:21:23,759 --> 00:21:27,799a few months ago all these goldall these gold commercials, all these gold26000:21:27,839 --> 00:21:33,720things, and now Costco is toutingthat they're selling all these gold bars and26100:21:33,759 --> 00:21:41,640they're selling out of them. Okay, gold keeps dropping if we have inflation,26200:21:41,759 --> 00:21:45,920now, why is gold dropping?That's why people usually buy gold.26300:21:47,480 --> 00:21:51,000Okay, so you're gonna buy goldfor safety. The war's gonna go to26400:21:51,400 --> 00:21:52,640hell of the hand basket. Iwant to I want to have gold.26500:21:52,720 --> 00:21:57,400Okay, what are you gonna dowith the gold? I promise you you26600:21:57,440 --> 00:22:02,160can't go to the restaurant I've awsome gold and say hey, thank you26700:22:02,200 --> 00:22:04,559for my sandwich or my steak orwhatever it is. It's not gonna work26800:22:04,599 --> 00:22:10,279it that way. There will besome type of bartying system. We ever26900:22:10,359 --> 00:22:15,359got there, I hope we don't. But we've always said bullets and guns27000:22:17,240 --> 00:22:21,039will be worth more than gold,if that ever got to that point.27100:22:21,759 --> 00:22:27,279Gold does not back anything anymore.It's an emotional asset that bought and sold,27200:22:30,240 --> 00:22:34,400bought and sold, and no strongdollars oil has effect on gold.27300:22:34,440 --> 00:22:41,200I get that. But gold itselfused to back the dollar, okay,27400:22:41,240 --> 00:22:45,039and that's why it was so strongor weak, depending what the dollar was27500:22:45,119 --> 00:22:49,359doing. We do not back todollar, We do not back to Europe,27600:22:49,400 --> 00:22:53,319we do not back to yend.We don't back anything with gold.27700:22:56,079 --> 00:23:00,359Gold is an industrial commodity, butpeople feel they need to have it when27800:23:00,400 --> 00:23:04,880they're scared and there's fear and all, and that's fine, that's fine,27900:23:07,039 --> 00:23:11,759But treat it like every other investment. It goes up and it goes down.28000:23:12,119 --> 00:23:15,480When you have inflation is supposed togo up, then why is it28100:23:15,480 --> 00:23:18,759going down. Maybe we're not gonnahave inflation. Maybe inflation is gonna come28200:23:18,759 --> 00:23:22,799down. A lot of talk aboutsoft landing, straw hard landings. Nobody28300:23:22,880 --> 00:23:26,000knows until it's over. I knowthis. It's been a horrible three months28400:23:27,319 --> 00:23:33,880July August. Since July, we'vebeen down. August in September, October28500:23:33,960 --> 00:23:36,559is usually puts in the bottom.When that happens, in the market's rally28600:23:36,640 --> 00:23:38,559to the end of the year,when we've been up to July, when28700:23:38,559 --> 00:23:44,920we've been up through July and Augustand Septembers are down. The market has28800:23:44,960 --> 00:23:47,799always rallied to the end of theyear, and that doesn't mean it's rallying28900:23:47,920 --> 00:23:51,680from here. Doesn't mean we're notgonna go down first. Remember most of29000:23:51,680 --> 00:23:53,920the major crashes all happened in October. Only one didn't. That was a29100:23:55,039 --> 00:23:59,920pandemic. All the others have.I don't know if we're falling on on29200:24:00,039 --> 00:24:03,119over going up. I know thisrisk evaluations is higher in the market,29300:24:03,440 --> 00:24:08,759so make sure you're mitigating some risk, but you invested so if the markets29400:24:08,759 --> 00:24:14,160do go higher, you will stillbe able to participate. We'll be back29500:24:14,200 --> 00:24:17,759with the whole crew. We doappreciate you, and I certainly appreciate for29600:24:17,799 --> 00:24:21,720the thirty five years of doing this, thirty four years doing this radio show.29700:24:22,119 --> 00:24:27,200All the people that listen, we'llbe right back. Say it's all29800:24:27,400 --> 00:24:33,160a name. Oh, welcome back, everybody. It's Sunday morning. It's29900:24:33,440 --> 00:24:36,920money matter. It's time. Igot Dave, Dylan, Todd and myself30000:24:36,960 --> 00:24:40,519Dean here to talk about all thestuff for this week. Pick a topic30100:24:40,559 --> 00:24:44,119and we can talk about it andhow it's affecting your money. So much30200:24:44,160 --> 00:24:45,720going on this week, you hada lot to talk about on the monologue.30300:24:45,720 --> 00:24:49,160I just still can't get over Bidengoing on the picket line with the30400:24:49,240 --> 00:24:55,519UAW Maine. Isn't he president ofthe United States not president of the workers30500:24:55,519 --> 00:24:59,119administrations? Just about when do youtake but I mean, how do you30600:24:59,160 --> 00:25:02,319take sides? When did when didthat step? Well, here's the worst30700:25:02,319 --> 00:25:06,519part of it, though, Nowevery other union can believe that they can30800:25:06,559 --> 00:25:08,400go on strike and the support ofthe president. Well the president. Yeah,30900:25:08,519 --> 00:25:12,039the day after that, the LasVegas workers can go on strike.31000:25:12,079 --> 00:25:15,720You got well, Hollywood strike wasthe only one that ended the strips.31100:25:15,680 --> 00:25:22,519No, the hospitality workers, thewriter strike over that strikes. There's other31200:25:22,559 --> 00:25:26,920workers in Vegasteine, there's Yeah,the writer strike is over, but it's31300:25:26,960 --> 00:25:30,480for the ones that got done withit first. Are the late night crew,31400:25:30,799 --> 00:25:33,920like the NIT late night shows.Scripted shows might take a little longer.31500:25:34,920 --> 00:25:37,359Nice nice to have the late nightcrew. Bactually, we can hear31600:25:37,559 --> 00:25:40,799all the things that they're wrong withTrump's right, Yeah, pretty much,31700:25:40,880 --> 00:25:42,799yeah, yeah, but they are. I mean, if you're talking about31800:25:42,839 --> 00:25:45,920it though. What they did toois a big issue was the AI generated31900:25:47,680 --> 00:25:51,319scripts. Right, So now thosearen't going to be considered part of it.32000:25:52,039 --> 00:25:53,839They're not going to be considered sourcematerial and can't be used to undermine32100:25:53,839 --> 00:25:56,759writers credit and separated rights. Soit's gonna be a whole different thing.32200:25:56,839 --> 00:26:03,279I was honestly looking forward to itan entire winter of no new shows.32300:26:03,480 --> 00:26:06,680He caught up on all the stuffthat I hadn't seen over the years.32400:26:07,599 --> 00:26:10,240You have to give up, Yeah, I guess so, I guess we're32500:26:10,240 --> 00:26:12,839gonna be be back in that then. Now now the biggest the new strike,32600:26:14,079 --> 00:26:18,319right, the government Congress is onstrike. No, they don't want32700:26:18,319 --> 00:26:22,880to do the job shut out.They canceled their planned recess because of the32800:26:22,519 --> 00:26:26,559lumin shutdown. Yeah, the Loomenshutdown. What do you mean playing they32900:26:27,079 --> 00:26:30,240haven't planned recess always recess. Yeah, yeah, but you got to talk33000:26:30,240 --> 00:26:33,920about as a big thing all thetime. If they do, you want33100:26:33,960 --> 00:26:37,519you're not many times the budget's beenby balanced balanced. Yeah, they were33200:26:37,519 --> 00:26:41,559talking about it the other night.Twice five years or four times, four33300:26:41,599 --> 00:26:45,920times, seven times? Last onewas Clinton? Right, it could be33400:26:45,119 --> 00:26:48,359well, it was the last timewe weren't the deficit, So I don't33500:26:48,400 --> 00:26:51,319know if it's the last time we'rebalanced. But well Clinton Clinton had the33600:26:51,319 --> 00:26:55,400benefit of the dot com the dotcom boom that was Clint. That wasn't33700:26:55,440 --> 00:26:57,680wasn't something that Clinton did because itwas really a day president. Yeah,33800:26:57,720 --> 00:27:02,440I get it, but every presidentsince then has spent so much money because33900:27:02,440 --> 00:27:04,960they knew that was a trick toit. Now increasing as we increase saw34000:27:06,519 --> 00:27:08,640our economy or GDP. I getit, it's a percentage of it.34100:27:10,000 --> 00:27:14,759But when it's not like lately,the GDP wasn't increasing like it was before,34200:27:15,039 --> 00:27:18,440you have to decrease your spending.Yeah, you know. It just34300:27:18,519 --> 00:27:22,200bothers me to watch how everyone said, well, you can't run the government34400:27:22,240 --> 00:27:26,720like a business. Well why not? There's spending was the highest just been34500:27:26,839 --> 00:27:30,440in relation to the GDP since WorldWar Two, and I understand why it34600:27:30,440 --> 00:27:33,920would be accelerated during the World War. Right, that makes sense. Why34700:27:34,000 --> 00:27:37,440is there Why isn't their reasoning thoughyou can't run it like a business.34800:27:37,640 --> 00:27:41,640Do they have any actual reason tosay it or that's just what they hear.34900:27:42,000 --> 00:27:47,079The Devil's advocate point is when yourun a government like a business,35000:27:47,160 --> 00:27:51,880you start hurting individuals and so youlook at people as dollar signs and not35100:27:52,160 --> 00:27:56,359the potential impacts that the family couldhave, and it goes a little more35200:27:56,359 --> 00:28:00,839emotional than just economic. But Idisagree because now businesses look get through employees35300:28:00,839 --> 00:28:04,759on how they can benefit them andpromote them, and that's where benefits came35400:28:04,799 --> 00:28:08,839from, and holidays and time offand and and recognition. I mean,35500:28:08,880 --> 00:28:14,839there's a lot of psychology, behavioralpsychology that's going to all this stuff we35600:28:14,920 --> 00:28:18,480need at the highest level. Youknow what the problem is, half of35700:28:18,480 --> 00:28:21,519them are over eighty years old,and it's always fascinating that half. But35800:28:21,920 --> 00:28:26,200they'll introduce a regulation that is supposedto help the common person and it ends35900:28:26,240 --> 00:28:29,480up just hurting them, like wesee with this oil and they don't produce36000:28:29,799 --> 00:28:33,079or don't have new projects coming online, we don't have new supply, and36100:28:33,079 --> 00:28:37,559then we see oil surging when inflationis still around. But the presidents are36200:28:37,680 --> 00:28:44,200making decisions based on fifty not fortynine percent. The other forty nine percent36300:28:44,200 --> 00:28:48,200goes to the wayside. Because ifyou ask people, would you be okay36400:28:48,240 --> 00:28:52,519if we were self sustained on energy, I gotta believe eighty percent would say36500:28:52,599 --> 00:28:57,240yes. Eighty percent would say yes, let's become an exporter. But no36600:28:57,279 --> 00:29:02,200one explains it to them. Whyall they explained is oil is bad,36700:29:02,559 --> 00:29:08,279bad is pollution. Pollution is Cobbinsand the common foots and your kids don't36800:29:08,279 --> 00:29:11,759have a place to think. Youright, and you and you're killing and36900:29:11,799 --> 00:29:15,640you're killing your generations down the road, you know. And I so selegate37000:29:15,720 --> 00:29:19,640to to speak to real people thathave done real history on the millions and37100:29:19,680 --> 00:29:23,359millions of years that the earth hasbeen here, and the axises that change37200:29:23,359 --> 00:29:26,759and all this other stuff. Yourrealize that we've had a whole bunch of37300:29:26,759 --> 00:29:30,960ice ages and a whole bunch ofmelting down and everything else. And then37400:29:30,960 --> 00:29:37,160we're just here for a mental sectingof what goes on, the whole evolution37500:29:37,200 --> 00:29:40,759that's been here in the universe formillions of years. The biggest concerned Dean,37600:29:40,799 --> 00:29:42,680when you and I were growing upis the coming ice age. Remember37700:29:42,960 --> 00:29:45,839they were concerned that the earth wasgoing to freeze over because there's been a37800:29:45,839 --> 00:29:49,400period of cooler than expected weather.Did that become a political point too?37900:29:49,680 --> 00:29:52,160Oh? I don't think so.Back then, Dean, I don't they38000:29:52,160 --> 00:29:55,279put. What they did is theywere concerned about it and they put up38100:29:55,279 --> 00:30:00,079satellites are still up there today tomonitor global cooling. The difference between then38200:30:00,200 --> 00:30:03,960and now is the twenty four sevenmedia absolutely right. And if you're just38300:30:04,000 --> 00:30:07,200constantly hearing that the nice age isgonna happen, Nice age is gonna happen,38400:30:07,240 --> 00:30:11,200you're gonna eventually start believing it.If you're susceptible to that type of38500:30:11,240 --> 00:30:14,000stuff. That's all TNN, youknow, which, which was the Turner38600:30:14,039 --> 00:30:17,079News Network now it's the Trump NewsNetwork because that's all they talk about.38700:30:17,920 --> 00:30:21,599You know, it sounded great onpaper, twenty four seven news, but38800:30:21,640 --> 00:30:25,920there's not news twenty four hours aday. And so a couple of housekeeping38900:30:25,960 --> 00:30:27,920things from last weekday that we talkedabout and we didn't quite get answered.39000:30:29,559 --> 00:30:33,720The grocery delivery business. Did alittle research on that. There's a bunch39100:30:33,759 --> 00:30:38,480of different companies that deliver groceries,including the stores themselves. Instacart is the39200:30:38,519 --> 00:30:44,680big eight hundred pound guerilla in thatspace. Instacart had come public last week39300:30:45,200 --> 00:30:48,359a week ago, and we werekind of wondering, why do you even39400:30:48,400 --> 00:30:52,400need these people? Apparently they they'repretty predominant in that space. The other39500:30:52,440 --> 00:30:56,000thing we talked about, which whichI had. I was almost doing it39600:30:56,039 --> 00:31:00,559as a joke. The Amazon's newtechnology that just walk out. And my39700:31:00,680 --> 00:31:03,440response was, hey, they're doingthat all over the country. Just get39800:31:03,440 --> 00:31:07,240your stuff and walk out, right. But but we got more technical and39900:31:07,319 --> 00:31:11,240I didn't have details than I doI have details now, Dean. So40000:31:11,359 --> 00:31:15,359you apologizing, I apologize. Yes, the technology was finally the technology was40100:31:15,400 --> 00:31:19,839developed by Amazon. That just walkout technology was developed by Amazon, and40200:31:21,519 --> 00:31:25,200a store would register for the service, and the startup costs are around a40300:31:25,279 --> 00:31:29,480quarter of million bucks per store.Okay, but then you have no employees40400:31:29,880 --> 00:31:33,920really or very few employees, maybeone to monitor, kind of like the40500:31:33,920 --> 00:31:37,240self check out at the grocery store. I get one person standing. When40600:31:37,240 --> 00:31:41,279you walk in, you scan yourpalm or your credit card, and when40700:31:41,279 --> 00:31:45,279you walk out, whatever you havewith you gets charged today. So let40800:31:45,319 --> 00:31:48,359me ask your question. So you'resaying, I have a choice palm or40900:31:48,400 --> 00:31:51,559credit card, why wouldn't I domy palm? My palm has no way41000:31:51,599 --> 00:31:53,160they can get money off my palmwhatever you want. You know, your41100:31:53,200 --> 00:31:56,519palmer is registered, your prom readyto me into your account. Yeah,41200:31:56,680 --> 00:32:01,359and so you can't get not getinto the store unless you used the technology.41300:32:01,519 --> 00:32:06,400The entire store would would be thisAmazon technology. Okay, so here's41400:32:06,400 --> 00:32:07,960my caveats of that. What happenswhen I'm with my best friend, and41500:32:08,039 --> 00:32:10,920my best friend I put my palmon it and he runs in the door41600:32:10,960 --> 00:32:15,920with me. Has Amazon stop?You know? It's like anything the bells41700:32:15,920 --> 00:32:19,839that go off that. Yeah,it's just like when you're in the store41800:32:19,839 --> 00:32:22,960and you're trying to rip off somedresses or something. Yeah, and they41900:32:22,039 --> 00:32:25,160and they get caught with the sameway of getting into ufa basketball game.42000:32:25,160 --> 00:32:28,240You've got to take a year,buddy, doesn't you both? You know,42100:32:28,279 --> 00:32:30,319he rushes in, I think somebodywould stop him. The same same42200:32:30,319 --> 00:32:32,720thing with the store. There hasto be a monitor or two there.42300:32:34,039 --> 00:32:38,039But the interesting part about this isif this were adopted widely adopted, I42400:32:38,079 --> 00:32:43,240could see it end in shoplifting.And we've got a huge shoplifting problem in42500:32:43,279 --> 00:32:46,960this country, primarily because of what'sgoing on on the Left coast. Yeah,42600:32:47,000 --> 00:32:50,519I mean, especially if you havea store that doesn't allow anyone with42700:32:50,559 --> 00:32:53,759a mask on into the store soyou can visually see it is whoever steals42800:32:53,799 --> 00:32:57,720it, you can then you knowgo after them. Well you have to42900:32:57,759 --> 00:33:00,119do is make sure, if yougo in and steal something, you can43000:33:00,160 --> 00:33:05,160get arrested for it. Not all, you know what, they probably need43100:33:05,160 --> 00:33:08,960it, get all, they're outof work. It's unders in Northern California43200:33:09,000 --> 00:33:13,319where they've decriminalized anything under a thousandbucks. Right, you can go in43300:33:13,359 --> 00:33:15,000there and steal seven eight hundred bucksand it's not a crime. I saw43400:33:15,000 --> 00:33:19,759this guy did that where it wasa thousand dollars and he put everything in43500:33:19,799 --> 00:33:23,400the store was like a thousand dollarsand one a thousand one dollars, all43600:33:23,400 --> 00:33:25,160of that. But then when youwent to go check out, you'd be43700:33:25,160 --> 00:33:29,079a discount for whatever it is,back to like the normal price. So43800:33:29,119 --> 00:33:30,880he got it. So they can'tshoplift. That's funny. It's it's just43900:33:30,920 --> 00:33:36,240insane. And of course what's happeningis companies like Walgreens closed all their San44000:33:36,279 --> 00:33:39,480Francisco stores. Now Targets closing stores. Targets are going to close three stores44100:33:39,480 --> 00:33:44,440in San Francisco, right, twostars in Seattle, three stores in Portland.44200:33:44,559 --> 00:33:46,640What do those have in common thosethree places? You know? I44300:33:46,640 --> 00:33:51,720mean, it's so much crime,so much shoplifting, so much violence.44400:33:52,039 --> 00:33:53,880They're concerned for their employees. Uh, they said, you know what,44500:33:54,039 --> 00:33:57,839here's here's the bottom line, oryou just shut them down. And they44600:33:57,839 --> 00:34:00,640don't. They said, they're notreally concerned about the pros. It's not44700:34:00,680 --> 00:34:04,240like it's a profitability issue. It'spurely a safety. They lost a billion44800:34:04,279 --> 00:34:08,239dollars, lost a billion dollars lastyear due to shoplifting, and now you44900:34:08,239 --> 00:34:12,639have these shoplifting mobs, these slashmobs. Yeah, they get all together45000:34:12,719 --> 00:34:15,840and then they plan it online andthey're able to to you know, it's45100:34:16,039 --> 00:34:21,199it's pretty gross to see that.You know, people are using technology in45200:34:21,239 --> 00:34:22,880that way. You know, youalways know that at the end of the45300:34:22,960 --> 00:34:25,760day, technology is going to beused by the criminals. But it's man,45400:34:25,840 --> 00:34:29,599it sucks when they get going tosend drones in pick up the stuff45500:34:29,639 --> 00:34:31,360and come out. But okay,let's just walk out. Technology. If45600:34:31,360 --> 00:34:35,079it were adopted, widely adopted,that's going to shut it down. It45700:34:35,119 --> 00:34:37,480seems to me. I don't thinkit could. Yeah, I think it45800:34:37,480 --> 00:34:43,239would be a real step in theright direction towards cutting back or maybe even45900:34:43,280 --> 00:34:47,519just eliminating shoplifting all together. Youcan't grab anything if you've identified yourself.46000:34:47,800 --> 00:34:52,599You know, that's all technology,and that's why technology is where we have46100:34:52,639 --> 00:34:54,880to stay to be the leaders inthe world. Yeah, sure, and46200:34:54,920 --> 00:34:58,880we gotta, you know, makesure China is not there and there's nobody46300:34:58,920 --> 00:35:01,760else. But we have to justthe leaders of the world. And that46400:35:01,880 --> 00:35:05,719happens, and it costs money todo that, and people forget. They46500:35:05,719 --> 00:35:09,360all want money in their own pocket. Corporations won't have money to develop and46600:35:09,440 --> 00:35:14,559research if they're just paying out allthese wages all the time. I believe46700:35:14,559 --> 00:35:15,800me. I think everyone needs toget paid what there worth, right,46800:35:16,079 --> 00:35:21,559I do, but not everybody shouldget the same amount of money just because46900:35:21,840 --> 00:35:24,039we're on strike. No, No, couldn't agree with you, Morty.47000:35:24,119 --> 00:35:29,719And I think taking I think thepresident taking sides is dangerous. I think47100:35:29,719 --> 00:35:31,800it's they're very dangerous. But it'swhat they're doing now. It's like,47200:35:31,960 --> 00:35:35,039you know, they think they're gettingvotes out of it. I don't know.47300:35:35,400 --> 00:35:37,639I'm tired of it. I don'tlike it. And at the end47400:35:37,639 --> 00:35:40,800of the day, it hurts usas a country. And Ford's gonna say,47500:35:40,960 --> 00:35:44,199I don't want to school you guys. We're gonna go to Mexico,47600:35:44,880 --> 00:35:46,280all right. They got the money. When I spend a billion dollars in47700:35:46,400 --> 00:35:49,440and spend a billion dead and thenthey don't have to spend it again.47800:35:49,480 --> 00:35:52,079All right, we'll be right back. It is the money amount of show.47900:35:52,360 --> 00:35:55,960We all appreciate you've been listening andworking with us and enjoying the show.48000:35:57,039 --> 00:36:02,920Thank you, it's all welcome back. It's the money amount of show.48100:36:02,960 --> 00:36:07,719Dean Greenberg, Dylan Greenberg, OddGlick, and that man with the48200:36:07,760 --> 00:36:12,480white hair, Dave Sherwood. We'llhere to bring to you. You know,48300:36:13,039 --> 00:36:14,880we've been doing this a long I'vebeen doing a long time. You48400:36:14,920 --> 00:36:16,239guys been doing a long time nowtoo. That I had black hair,48500:36:17,400 --> 00:36:22,679black hair nineteen ninety I started doingthe show. And it's interesting when you're48600:36:22,679 --> 00:36:25,199going around and because it's radio,so people don't know really what you look48700:36:25,280 --> 00:36:29,960like. But probably the most interestingone was the other night. Most of48800:36:29,960 --> 00:36:34,079you guys know, I coach football, and I was on the sidelines and48900:36:34,599 --> 00:36:38,320the ref is on our sidelines andI'm walking out plays or doing something and49000:36:38,360 --> 00:36:43,599he turns around and he says,I know that boy. What's your name?49100:36:44,480 --> 00:36:47,400I go, why you're gonna flagmeate? I helped me because I49200:36:47,920 --> 00:36:51,679say Greenberg. He guys, Iknew it. I love you a radio49300:36:51,800 --> 00:36:55,599show. Good good, don't callany penalties. It's like that funny recognize49400:36:55,639 --> 00:37:00,239your boy, first time that's happened, that a ref that game has actually49500:37:00,800 --> 00:37:05,960heard my voice and didn't then,and that's cool. It's a distinctive voice49600:37:05,960 --> 00:37:09,199for sure. I think you know, the h this past week was as49700:37:09,239 --> 00:37:14,480if it wasn't bad enough, havingSeptember being down every single week, right49800:37:15,199 --> 00:37:17,800seven of the last nine weeks themarket's been down. It gets a little49900:37:17,800 --> 00:37:22,760depressing. We always take steps aheadof that. We saw it coming,50000:37:22,800 --> 00:37:24,880We've talked about it on the show. The market's getting a little ahead of50100:37:24,880 --> 00:37:29,440herself and we've taken some some defensivesteps deeing. But it's kind of like,50200:37:29,639 --> 00:37:30,840you know, an umbrella's good ina in a rain storm, but50300:37:30,880 --> 00:37:35,519when the monsoon's hit, it's notthat great. Yeah, it also depends50400:37:35,519 --> 00:37:37,840what you have in there. Thesame things that made so much money on50500:37:37,880 --> 00:37:40,000the upside, they came down thehottest, so that could have affected a50600:37:40,039 --> 00:37:44,599little bit. But you know what, you got fixed income. We've got50700:37:44,920 --> 00:37:49,000the inverse funds on for most people, correct, you know, some people50800:37:49,000 --> 00:37:52,360having sure it puts. We raiseda bunch of cash. We're not fully50900:37:52,400 --> 00:37:54,320invested, and that's where we stayright now. Yeah, I think we51000:37:54,480 --> 00:37:59,039were down probably half of what themarket was down in most accounts. And51100:37:59,039 --> 00:38:00,440and like I said, the LLAdoes help you when it's raining, but51200:38:00,440 --> 00:38:02,960if it gets going monsoon, you'regonna get wet. But you know,51300:38:04,000 --> 00:38:07,760it's understanding too that people aren't evenhappy when that happens. Okay, because51400:38:07,800 --> 00:38:12,000people I don't think people invest with. Some people don't invest with the idea51500:38:12,039 --> 00:38:15,280that they they say they can handlethe markets going down, but if they51600:38:15,280 --> 00:38:17,480see it go down three or fourpercent, it affects them. It's just51700:38:17,519 --> 00:38:22,599funny that. But you're absolutely right, absolutely right. I mean last year51800:38:22,199 --> 00:38:25,159twenty two was it was a roughyear for the market, and of course51900:38:25,199 --> 00:38:29,800in twenty one we got out ofall long term bonds. Long term bonds52000:38:29,800 --> 00:38:34,920were down over thirty percent last year. No one knows what they didn't lose,52100:38:35,239 --> 00:38:37,800right, you can't. You can'tfind out what you didn't lose.52200:38:37,119 --> 00:38:42,559It would have been a nightmare andwe and we avoided that. But nobody52300:38:42,599 --> 00:38:46,440talks about that. It's kind ofinteresting that the market took no prisoners in52400:38:46,519 --> 00:38:51,719the last in the month of Septemberand Video and Lily, two of the52500:38:51,760 --> 00:38:57,000hottest stocks this year. Both havegotten hit more than ten percent, seven52600:38:57,039 --> 00:38:59,639out of last nine weeks. LikeI said, it's down, it's it's52700:38:59,679 --> 00:39:02,480it's discouraging aways like that, Butit's just a It's like a rubber band.52800:39:02,519 --> 00:39:07,880It just keeps getting pulled further andfurther back. Eventually it snaps well52900:39:07,960 --> 00:39:09,599upwards. I don't know if youheard when I said it in a monologue,53000:39:09,599 --> 00:39:14,199but when we're up through the monthof July and then we're down in53100:39:14,239 --> 00:39:22,000August and September, we usually bottomin October and rally into the end of53200:39:22,000 --> 00:39:24,639the year with an average return aboutfour I think it was four point seven53300:39:24,639 --> 00:39:30,840percent, so that's interesting. Thething to remember is November first through January53400:39:30,880 --> 00:39:35,840thirty first. That three month periodis responsible for sixty percent of all games53500:39:35,840 --> 00:39:38,239for the year historically. Now thisis just statistics. It doesn't mean it53600:39:38,280 --> 00:39:43,760always happens, but for some reasonit does happen like September and if you53700:39:43,840 --> 00:39:49,559love but I use it in asense. Okay, we'll overvalued in many53800:39:49,599 --> 00:39:53,280areas, so that there's one checkthe box for risk. We're moving into53900:39:53,320 --> 00:39:58,239the seasons. We rallied for sixmonths more than we thought we would,54000:39:58,519 --> 00:40:00,360so you take it on into asituation say I'm gonna pull back a little54100:40:00,400 --> 00:40:05,760bit now if we fall and nowwe're in that October time frame and it's54200:40:05,800 --> 00:40:07,559stuff like that, and it goesdown a little bit more, but we54300:40:07,679 --> 00:40:12,079have fallen and say, okay,it looks like we can stop moving up.54400:40:13,320 --> 00:40:15,960You do it, But I wouldn'tbe doing it full long term investment54500:40:15,000 --> 00:40:19,559now, I'd be looking for abounce, a trade to the end of54600:40:19,559 --> 00:40:22,639the year or so, or tothe end of the first quarter. Because54700:40:22,719 --> 00:40:27,719eventually, these problems that we aretalking about, they're gonna get resolved.54800:40:27,760 --> 00:40:32,039These are not unresolvable problems. Youaw is going to go ahead and resolve54900:40:32,079 --> 00:40:37,719their their their strike. The governmentis not going to be shut down forever.55000:40:38,360 --> 00:40:43,000They're going to resolve that. Thosetwo things alone probably are worth one55100:40:43,079 --> 00:40:45,679to two percent in the market.And AI is still out there. AI55200:40:45,719 --> 00:40:50,760the thing that drove it higher forfive consecutive months, the excitement that took55300:40:51,039 --> 00:40:53,880stocks to levels that we thought wereridiculous. It's still out there, dude,55400:40:54,280 --> 00:40:57,679It's still out there. Inflation isgoing to get to handle on it55500:40:57,679 --> 00:41:00,880and stuff. What is going tobe the surprise that people is next year55600:41:01,119 --> 00:41:07,320when earnings start even making it moreovervalued on a decline, and people are55700:41:07,360 --> 00:41:09,960gonna say, here it comes.They're going to anticipate. Remember, markets55800:41:10,039 --> 00:41:14,639anticipate what's going to happen. Theydon't do it while you're in it.55900:41:14,719 --> 00:41:17,559Well, that's the thing is thesequarter three earnings reports, I mean quarter56000:41:17,559 --> 00:41:22,639to two earnings reports coming into that'sgonna be really important on valuations and guidance56100:41:22,920 --> 00:41:27,239behind It's more than anything, right, But I mean we are still overvalued56200:41:27,280 --> 00:41:29,719as well though, you know whatI mean, So valuations are going to56300:41:29,800 --> 00:41:31,840have some play into it. Butgoing back on that AI point, a56400:41:31,880 --> 00:41:35,599lot of the things that we've talkedabout in the show before is that there's56500:41:35,639 --> 00:41:39,679really no profitability that's coming from itright now. There is a whole bunch56600:41:39,679 --> 00:41:44,559of costs associated with it right now, and a lot of people don't realize56700:41:44,760 --> 00:41:49,639what is AI caught? What useelectricity, and it's a lot more than56800:41:49,679 --> 00:41:52,159you would think. You know,you hear all these things about bitcoin.56900:41:52,199 --> 00:41:53,519You know it's going to boil theoceans. All the electric that it uses57000:41:53,760 --> 00:41:59,519AI uses is the same type ofelectricity, right It's using really high powered57100:41:59,639 --> 00:42:01,679process chips that takes a lot ofpower to run and They're not just one57200:42:01,719 --> 00:42:05,920company doing a right there's we knowthere's a lot of companies out there.57300:42:06,159 --> 00:42:08,360So for these companies who are spendinga lot of money on this fuel that's57400:42:08,440 --> 00:42:12,920right now bringing them no investment back. If eventually they're not able to find57500:42:12,960 --> 00:42:15,079a way to make it profitable insome type of short run period, they57600:42:15,079 --> 00:42:17,719could be you know, short oncash and may have to give up an57700:42:17,719 --> 00:42:21,840AI project because of it. Rightnow, it's just R and D.57800:42:22,000 --> 00:42:27,000It's very similar to the charging stationsTodd the electric vehicle charging stations, where57900:42:27,239 --> 00:42:30,400you're building this infrastructure, you know, and you're getting revenue, but not58000:42:30,559 --> 00:42:35,480nearly the amount of revenue that you'reputting out. And charge Point is the58100:42:35,679 --> 00:42:39,599number one charging station company. Theyhave more charging stations than anyone else.58200:42:39,800 --> 00:42:45,000Unfortunately, they're primarily level two chargingstations, which don't help you when you're58300:42:45,039 --> 00:42:49,599traveling from point A to point B. They help you when you're in a58400:42:49,679 --> 00:42:54,320hotel. I could see every hotelin the country having some level two chargers,58500:42:54,400 --> 00:42:59,159maybe a dozen or two of them. Ultimately, you know, streaming58600:42:59,199 --> 00:43:02,280is another in the industry that isjust building their infrastructure right. I mean,58700:43:02,480 --> 00:43:06,320Disney says they're not profitable. Theylook to be profitable next year.58800:43:06,840 --> 00:43:09,159There's a lot of streaming services thatyou know, could look in. Another58900:43:09,199 --> 00:43:13,480industry that could be looking to getprofitable is the cannabis industry. If they're59000:43:13,480 --> 00:43:16,960able to get the New Banking Actpassed and they can get that rescheduled from59100:43:16,960 --> 00:43:20,920a Schedule one to a Schedule three, they can then ask the IRS for59200:43:20,960 --> 00:43:23,679tax deductions, which changes the gamecompletely for those stocks. Right. So,59300:43:23,719 --> 00:43:28,119I actually had had a little bitmore on charge Point because they were59400:43:28,199 --> 00:43:30,679upgraded to a buy Well I thoughtwe were going to do is on Evy59500:43:30,679 --> 00:43:32,480garage. No, that Evy garage, a whole nother deal. This is59600:43:32,519 --> 00:43:36,280this is a charge that we're talkingabout charge Point here. This is this59700:43:36,360 --> 00:43:39,119is not the Evy garage. Thisis UBS saying that the recent selling,59800:43:39,400 --> 00:43:43,719which has been massive, right,has gone from twenty dollars down to four59900:43:43,800 --> 00:43:50,360and a half, creation an attractiverisk reward for charge Point. We've been,60000:43:51,199 --> 00:43:53,760We've been, We've been, we'vebeen really. You know, charge60100:43:53,760 --> 00:43:59,000Point was recommended by an analyst wefollow pretty closely into and the more I60200:43:59,079 --> 00:44:02,559thought about it and the more Ilearned about charging, the less I believed60300:44:02,599 --> 00:44:08,440in charge Point and uh, Iguess I should have followed my instincts rather60400:44:08,480 --> 00:44:13,159than the analysts, because I,in this particular case, apparently knew more60500:44:13,159 --> 00:44:15,559about than he did. Ye chargepoint, have any level three chargers?60600:44:15,679 --> 00:44:21,360Sixteen hundred? How many Level twodo they have? They have sixty thousand60700:44:21,480 --> 00:44:27,159chargers? Got so what's that fiftyeighth four? Level two and the level60800:44:27,159 --> 00:44:30,119two chargers have a place. Imean, you're gonna make somebody's gonna make60900:44:30,159 --> 00:44:35,960a lot of money off level twochargers once every hotel in the country adopts61000:44:36,000 --> 00:44:37,800them. So it's not something thatthey can stick with level two and make61100:44:37,840 --> 00:44:40,599money. It's not something that's goingto go by the just get out there.61200:44:40,639 --> 00:44:45,000No, they'll they'll absolutely make money. But the problem is that right61300:44:45,000 --> 00:44:49,079now is all outlay, Like liketabas, it's all outlay, not a61400:44:49,079 --> 00:44:52,199lot of revenue and not a lotof revenue, and the outlay is greater61500:44:52,239 --> 00:44:54,719than the revenue. And of coursethere's always concerned about, well, maybe61600:44:54,760 --> 00:44:58,719they'll run out of money, maybethey can't borrow any more money. I61700:44:58,800 --> 00:45:01,320keep thinking, at some point point, somebody, and I don't know who61800:45:02,719 --> 00:45:07,280is going to buy them. Ijust keep thinking, at some point you've61900:45:07,280 --> 00:45:13,400got sixty thousand level two chargers outthere that have a value. Certainly most62000:45:13,480 --> 00:45:16,760of them at at hotels, hospitals, places where you're going to spend some62100:45:16,800 --> 00:45:22,199time. Because the level two chargerdoes about forty miles an hour of charge.62200:45:22,880 --> 00:45:28,719So if you're Carl do a threethree hundred mile range, it's going62300:45:28,800 --> 00:45:30,079to take you, you know,seven eight hours to charge it up.62400:45:30,079 --> 00:45:34,719Well that you don't, you're notgoing to do that between here and HELI62500:45:34,760 --> 00:45:37,840Ben, you know. That's that'ssomething we're like overnight at a hotel.62600:45:37,920 --> 00:45:42,159The only way that gets bought out, I think is if they're struggling to62700:45:42,199 --> 00:45:45,400pay stuff for the next couple ofyears and then somebody comes in and combining62800:45:45,480 --> 00:45:49,440them. But if they're starting toshow progress, yeah, it should be62900:45:49,480 --> 00:45:52,440fine. I think that's the pointis. And right now they haven't shown63000:45:52,480 --> 00:45:54,960much freskin like raytheon raytheon stock.We're watching it very closely. Uh.63100:45:55,000 --> 00:46:00,760It got down near a three yearlow this week and then on it rallied63200:46:00,800 --> 00:46:02,840on Tuesday and a bad tape itrallied. I thought maybe the bottom,63300:46:02,920 --> 00:46:06,639here's the bottom, and then itsold off a little bit on Wednesday and63400:46:06,639 --> 00:46:10,519Thursday, and then finished the weekkind of up a pointer, So no63500:46:10,599 --> 00:46:15,199indication that's bottomed yet. No analystscoming out and saying, boy, this63600:46:15,280 --> 00:46:17,519is the greatest time ever to buyraytheon stock. No, they're gonna have63700:46:17,519 --> 00:46:22,360to get their act together on theengine, the prep would the engine,63800:46:22,360 --> 00:46:23,559and then once they do, thenthey'll figure out where they're going with I63900:46:23,599 --> 00:46:27,960think the uncertainty dean where we're thinkingfive hundred million dollar problem and then they64000:46:27,960 --> 00:46:30,440took a three billion dollar right off, right. I think that's what's kind64100:46:30,440 --> 00:46:35,079of got people a little shook.All Right, So guys, we talk64200:46:35,159 --> 00:46:39,960a lot about stocks and allocations andrisky awards. Remember that's because of the64300:46:40,000 --> 00:46:43,920way a firm is set up asa well, one big team. We64400:46:44,000 --> 00:46:49,199work together. We do the financialplan first. But what we do that64500:46:49,280 --> 00:46:52,159is different is we also manage themoney. So that's why we're able to64600:46:52,199 --> 00:46:58,519talk to you about the allocations,the evaluations, where we sit, what64700:46:58,599 --> 00:47:01,599we do, how we do it, because the plan all brings us to64800:47:01,679 --> 00:47:05,639that. So you need to havea plan first. We do those for64900:47:05,800 --> 00:47:09,119you. We don't charge you.It's free, complimentary, call it whatever65000:47:09,159 --> 00:47:13,480you want. We do the financialplan. It's the only way we can65100:47:13,559 --> 00:47:16,199set up and see what your stresslevel is, your risk tolerances and everything65200:47:16,199 --> 00:47:21,039else, and from there we're ableto put together everything else. Then we65300:47:21,119 --> 00:47:24,320actually don't just hand it off tosomeone else. We manage it the same65400:47:24,320 --> 00:47:28,239way we're telling you right now,right or wrong, you know where we65500:47:28,320 --> 00:47:34,559stand because we take it into considerationwhat your risk tolerances, and what the65600:47:34,639 --> 00:47:37,800markets are doing, and what wethink it's going to happen. We still65700:47:37,840 --> 00:47:40,679follow what we do to try toover the long haul, do the best65800:47:40,719 --> 00:47:45,800we can under your goals and objectives. We'll be right back. Money bout65900:47:45,880 --> 00:47:58,400a show, Thanks for listening.Say it's all welcome back everybody. Money66000:47:58,440 --> 00:48:00,840by a Show right here Sunday.I hope you having a good day and66100:48:00,960 --> 00:48:06,360enjoying listening to what we have tosay. Dave, Dylan, Todd and66200:48:06,440 --> 00:48:12,400myself. Markets good way into September. No question, No question has a66300:48:12,400 --> 00:48:15,199bad reputation and it's well deserved.Yep, as usual. I mean,66400:48:15,280 --> 00:48:19,360last week the Dow went down onepoint three percent, the SMP five hundred66500:48:19,360 --> 00:48:22,440went down point seven percent, NASDACwas up point one percent, and the66600:48:22,519 --> 00:48:28,039Russell two thousand was completely flat.And then the equal weighted SMP five hundred66700:48:28,079 --> 00:48:30,400was also down point seven percent.So that's the show as the market as66800:48:30,400 --> 00:48:35,400a whole was down. So getthis, the equal weighted is up four66900:48:35,519 --> 00:48:38,320tenths of a percent year to day. The equal weighted SMP five well,67000:48:38,400 --> 00:48:45,079last year it was down thirteen percent. So if you had started an account67100:48:45,960 --> 00:48:51,320December thirty feet of twenty twenty one, you're you're down twelve and a half67200:48:51,320 --> 00:48:54,119percent or twelve point six percent.The other thing people don't realize state if67300:48:54,119 --> 00:48:58,920they didn't come out of their bondfunds were intermediate a long time bond funds67400:48:59,079 --> 00:49:01,719go down another ten in fifteen twentypercent. Long term bond funds just got67500:49:01,719 --> 00:49:07,079obliterated, you know, just obliterated. Unfortunately we had none. They're continuing67600:49:07,079 --> 00:49:09,320to get obliterated. They continue toget obliterated. Yeah, the rates just67700:49:09,440 --> 00:49:13,079continue. You know. I sawa couple of us should say we have67800:49:13,159 --> 00:49:17,079done because we are hedging with TLT. Well that we have added a long67900:49:17,159 --> 00:49:21,760position within the past few weeks,and we do have first time models.68000:49:21,920 --> 00:49:24,159We have models. Rates are notgoing to grow, gonna go to the68100:49:24,239 --> 00:49:29,760sky. It's not We're not We'renot in the Carter era here. Rates68200:49:29,800 --> 00:49:34,119are going to get high enough wherethey slow the economy down. The demand68300:49:34,159 --> 00:49:37,480for money will drop. When thedemand from money drops, the price of68400:49:37,559 --> 00:49:40,679money, interest rates goes down.And the reason you're saying good riddeness in68500:49:40,679 --> 00:49:45,480September because a month did end lastFriday as well, the doll was down68600:49:45,480 --> 00:49:47,400three and a half percent, theSMP five hundred was down five, and68700:49:47,480 --> 00:49:51,679now Zack was down six. TheRussell two thousand was down six point four,68800:49:52,039 --> 00:49:53,760and the equal weighted SMP five hundredwas down five and a half.68900:49:54,360 --> 00:49:59,280So overall, yeah, good riddin September horrible. I talked to make69000:49:59,280 --> 00:50:00,840a bunch of econom numbers. Didyou do something go ahead? While I69100:50:00,880 --> 00:50:06,119was saying twenty five years ago,this week something big happened. It was69200:50:06,119 --> 00:50:09,280the first time you've had the sparkingof the two big to fail, too69300:50:09,280 --> 00:50:13,880big to fail dilemma, and thatwas the long term capital management family.69400:50:14,079 --> 00:50:17,159Yeah, and I think it's itwas just an anniversary thing. I saw69500:50:17,239 --> 00:50:22,159him on my news that popped upand it really kind of surprised me.69600:50:22,239 --> 00:50:24,679That was the first big one twentyfive years ago. Yep, that is69700:50:24,719 --> 00:50:29,880amazing. A bunch of economy numbersthis past week, credit Card losses Todd.69800:50:29,880 --> 00:50:31,880You've mentioned this before, but they'regrowing at the fastest pace in thirty69900:50:31,960 --> 00:50:37,960years. They're now three point sixpercent. Goldmu Sachs believes they'll continue to70000:50:37,079 --> 00:50:43,440rise to five percent. That's superunusual outside of an economic downturn. I70100:50:43,519 --> 00:50:46,760mean, we still are in aneconomic expansion. For credit card debt to70200:50:46,800 --> 00:50:51,960be rising, excuse me, forcredit card delinquency to be rising at this70300:50:52,079 --> 00:50:59,639pace in an expanding economy is unprecedented. It's just it's unprecedented. The Fed70400:51:00,000 --> 00:51:06,679watch the pc right, the PersonalConsumption Expenditure Index, that's their favorite thing70500:51:06,719 --> 00:51:09,960to watch, and it was reportedFriday, without food and energy, it70600:51:10,079 --> 00:51:15,159increased one tenth of one percent forthe month, which was half of always70700:51:15,199 --> 00:51:17,400expected. So that's good. Ona twelve month basis, the index lied70800:51:17,480 --> 00:51:22,239up three point nine percent, whichis pretty much what was expected. Consumer70900:51:22,320 --> 00:51:24,760spending up four tenths of a percenton a dollar basis, So consumer spending71000:51:24,800 --> 00:51:30,280continues to expand as those credit carddebt, which kind of tells you where71100:51:30,320 --> 00:51:36,880that money's coming from. Of course, the will say that the consumer spending71200:51:37,079 --> 00:51:40,039a four tenths of her percent wasdown from nine tenths of her percent in71300:51:40,119 --> 00:51:45,000July. She can say it wascutting half. The rate of change is71400:51:45,320 --> 00:51:49,239going down, right. Sebastian hasjoined the Sebastian Borsini. What's happening,71500:51:49,280 --> 00:51:52,840Hi, buddy, So what's yourdeal? Well, I'm gonna we got71600:51:52,880 --> 00:51:58,559a couple of questions emailed into usfrom radio listeners. How would they do71700:51:58,599 --> 00:52:02,960that? Well, they can emailus on constant contact information on contact at71800:52:02,960 --> 00:52:07,440Greenberg Financial dot com. Contact atGreenberg Financial dot com. We'll go to71900:52:07,480 --> 00:52:13,000our website. You can always seeCollins. Hey, you talk about my72000:52:13,079 --> 00:52:15,960question on the radio, No kidding, totally got this week. So for72100:52:16,000 --> 00:52:20,159the first question, we have somea radio listener by the name of Susan.72200:52:20,239 --> 00:52:23,239She writes, are we fiduciaries?And what does that mean? Yes,72300:52:23,320 --> 00:52:27,960we are fiduciaries, And a fiduciarymeans that you put the client's best72400:52:28,039 --> 00:52:31,559interests first at all times. Andthat's something that's that's simple. That's simple.72500:52:32,320 --> 00:52:36,480They've got it like it's an NBAor something like a doctorate degree.72600:52:36,480 --> 00:52:39,480It's it's just simply putting the client'sinterest first. This firm has been a72700:52:39,480 --> 00:52:44,639fiduciary since the beginning, and thereason that's becoming popular now is because there72800:52:44,719 --> 00:52:45,760used to be a commission business,Dave. I know you've been in the72900:52:45,760 --> 00:52:51,119business when it was it was morecutthroat and more the advisor was looking out73000:52:51,119 --> 00:52:52,599for himself, trying to make quotasrather than looking out for the client.73100:52:52,639 --> 00:52:55,599He's you could just buy and sellstocks, you could convince him. You73200:52:55,639 --> 00:52:59,599just weren't looking out for the bestinstance of the client's money. Now,73300:52:59,599 --> 00:53:01,679being a duciary, you gotta lookout for the client's best interests, and73400:53:01,679 --> 00:53:06,559that's what that is. Shockingly,I think probably and Dean would know better73500:53:06,599 --> 00:53:12,239of I think probably at least fiftypercent of advisors are still commissioned have not73600:53:12,400 --> 00:53:17,920gone to the something yeah I member, and it's it's I didn't. I73700:53:17,920 --> 00:53:22,400don't know how you can do businesswith all of the I like to say,73800:53:22,480 --> 00:53:24,840all of the stuff that's around it, all of the negative vibes around73900:53:24,880 --> 00:53:30,360it, Like how can you stillbe a commission firm where you're you're paying74000:53:30,400 --> 00:53:34,000per transaction? You know? AlthoughI will say there are clients who don't74100:53:34,079 --> 00:53:36,880do a lot of trading and Ilike to do it themselves. What's they74200:53:36,920 --> 00:53:38,719mean by annuities? Unlet's that's whatthey're talking about. What do you mean74300:53:39,239 --> 00:53:44,920because they get a commission through anannuity. The are you talking about stock74400:53:44,960 --> 00:53:46,880commissions? Yeah, yeah, that'swhat I absolutely stoped say. Maybe the74500:53:46,920 --> 00:53:51,679firm is like selling the nuities.A nuities is a nuties is a great74600:53:51,679 --> 00:53:53,960gig if you if you don't havea we don't. We don't play that74700:53:54,039 --> 00:53:58,320game, but you can. Youcan buy a twelve or sell a client74800:53:58,360 --> 00:54:00,320at twelve or fourteen year annuity.May it's not like it's the greatest thing74900:54:00,360 --> 00:54:04,280ever. Get a ten percent commissionand then to go on to the next75000:54:04,280 --> 00:54:07,039one. And there's a lot ofthat going on out there. You hear75100:54:07,079 --> 00:54:12,639the advertisements. That's not who weare. You know, we do have75200:54:12,679 --> 00:54:15,920a god you you kind of spearheadedthe myga. Yeah, I'll talk a75300:54:15,960 --> 00:54:21,440little bit about that. Just MIGArates contending to increase. All the carriers75400:54:21,480 --> 00:54:24,199come out with a on a reallyon a biweekly basis right now because the75500:54:24,280 --> 00:54:28,360rates are just moving so much.But the one that we like most is75600:54:28,400 --> 00:54:30,679with a theme the migas. Again, for people who aren't aware, a75700:54:30,800 --> 00:54:35,800mega is a multi year guaranteed annuity. Right now, we've been mostly looking75800:54:35,840 --> 00:54:38,000at the five year product, thefive year products at five point four percent75900:54:38,119 --> 00:54:45,039right now, it's a compounded rateas well, and it's a really great76000:54:45,079 --> 00:54:47,559place for people who have those safedollars and want the guarantee. You can76100:54:47,559 --> 00:54:51,440still take money out the interests eachyear if you wanted to, but you76200:54:51,480 --> 00:54:54,039probably don't because you still get thatcompounding effect. Right, So my guarantee76300:54:54,079 --> 00:54:58,360work comes from the insurance company aslong as they're in business, they're forced76400:54:58,360 --> 00:55:01,159to pay you or someone talk aboutthe the idea that you know, an76500:55:01,159 --> 00:55:05,559annuity company, you have to trustthe insurance company that has the annuity.76600:55:05,840 --> 00:55:07,920And it's the same thing you haveto trust the bank if you have a76700:55:07,960 --> 00:55:10,280CD right, So I think whenpeople also have to realize, you know,76800:55:10,440 --> 00:55:14,760well banks have an FDIC, annuitycompanies don't. Well, there is76900:55:14,800 --> 00:55:19,280a state guarantee fund, and majorityof the time it never really comes into77000:55:19,440 --> 00:55:22,840use because in insurance companies going outof business, another insurance company is just77100:55:22,840 --> 00:55:25,960going to buy them, especially ifyou're a B rated B plus or more77200:55:27,079 --> 00:55:29,519rated. I mean, if you'redealing with some of the you know,77300:55:29,639 --> 00:55:31,960the B minus rated annuity companies,yeah, maybe no one wants to buy77400:55:32,000 --> 00:55:36,320that that company. But for themost part, if you're staying with the77500:55:36,360 --> 00:55:39,119A plus, A minus and plusrated companies, you're going to be fine,77600:55:39,440 --> 00:55:42,920and the likelihood that they're going outof business is very, very low.77700:55:43,239 --> 00:55:45,920I had to I was in thebusiness back in the eighties when one77800:55:45,960 --> 00:55:51,880of the biggest annuity companies in thecountry, Executive Life, highly respected company,77900:55:52,400 --> 00:55:55,760makes some bad decisions one under nobodylost a penny. There are annuities.78000:55:55,760 --> 00:56:00,360We are all transferred to other insurancecompanies and they picked up right where78100:56:00,360 --> 00:56:02,480they left off and where you go. There was a period of about I78200:56:02,519 --> 00:56:06,320want to say, six to ninemonths where there was it was kind of78300:56:06,360 --> 00:56:09,760in u There was an uncertainty asthey as they try, as the regulators78400:56:09,800 --> 00:56:15,000tried to put this together with anotherinsurance company. But it is think of78500:56:15,039 --> 00:56:20,800it in terms of a MAGA,the multi year guarantee insurance or multi year78600:56:20,880 --> 00:56:24,920guarantee annuity. Think of it asa certificate of deposit with the insurance company.78700:56:25,119 --> 00:56:28,800And no, it's not unsure bythe federal government. It's it's guarantee78800:56:28,800 --> 00:56:31,119by the insurance company. But it'sa nice product if you don't like the78900:56:31,199 --> 00:56:35,880volatility of the market and would liketo get And the beauty of it is79000:56:35,880 --> 00:56:38,400it's tax deferred until you start totell you take it, so you do79100:56:38,480 --> 00:56:42,800have some flexibility there. So yeah, I also think you know, the79200:56:42,800 --> 00:56:46,599treasury ladder is a great idea forpeople who want more liquidity available to them.79300:56:46,639 --> 00:56:50,280So you're not going to get ahigher rate, a higher rate than79400:56:50,320 --> 00:56:52,480the MIGA because you have more liquidityavailable to you. You're probably going to79500:56:52,519 --> 00:57:00,320average around five percent on a ona treasure ladder before fees. But because79600:57:00,360 --> 00:57:01,559of that, you have the accessto pull all the money out and not79700:57:01,599 --> 00:57:06,960be penalized where the nuity it's nottotally liquid, so you give and take79800:57:07,039 --> 00:57:09,480on that. But for people whohave saved dollars, it's never been better79900:57:09,599 --> 00:57:13,159for them. I mean, youcan go out in the marketplace and there's80000:57:13,239 --> 00:57:15,920many products where the interest is justnothing. You've seen in the last twenty80100:57:15,960 --> 00:57:21,280It was a long answer to towhat should have been. Yes, Dylan80200:57:21,360 --> 00:57:24,360answered it. Yes, that wasthe right answer. So you're going to80300:57:24,400 --> 00:57:28,400talk about long answers when you havean evy garage every single week? Huh?80400:57:28,719 --> 00:57:31,400All right, so let's keep ongoing. That's yes, sir.80500:57:31,719 --> 00:57:35,480Wait a second, I do haveone more question. What's the other question?80600:57:35,519 --> 00:57:37,440This one's written in from Roberts heasked, can you explain the difference80700:57:37,480 --> 00:57:43,880between a mutual fund and an exchangetraded fund ETF and simple terms, go80800:57:44,039 --> 00:57:49,639Dave. The difference is a mutualfund is priced once a day at the80900:57:49,639 --> 00:57:53,360close of the market. An ETFis traded throughout the day, So the81000:57:53,400 --> 00:57:59,760ETF does give you a more flexibility. And the management fees and an ETF81100:58:00,000 --> 00:58:04,760because it is a portfolio of equities, the management fees in an ETF are81200:58:04,800 --> 00:58:09,239typically lower than they are most mutualfunds. So it's a nice tool to81300:58:09,360 --> 00:58:13,400use if you like to. Let'ssee, they're wanting to move in and81400:58:13,400 --> 00:58:16,079out of the market. You cando that intra day with an ETF.81500:58:16,079 --> 00:58:19,639You cannot do that with a mutualfund. Yeah. And also it's a81600:58:19,679 --> 00:58:23,000little more tax efficient in ETFs thanmutual funds, especially if the mutual fund81700:58:23,079 --> 00:58:28,039person is doing a lot of activetrading. It could be more tax efficient81800:58:28,079 --> 00:58:30,320to have an ETF. Something thatno one ever talks about, and that81900:58:30,519 --> 00:58:36,719is coming in the next four tosix weeks to a theater near you are82000:58:36,840 --> 00:58:42,599capital gains distributions from every mutual fund, particularly the growth oriented ones, and82100:58:42,639 --> 00:58:45,960they can be huge yea. Andyou can be sitting there looking like,82200:58:45,000 --> 00:58:49,039okay, we're good on taxes,and all of a sudden cut, bang,82300:58:49,519 --> 00:58:53,320here's a ten percent capital long termcapital gain or short term capital gain82400:58:53,599 --> 00:58:58,480that you weren't expecting from the mutualfund. And there's no way to predict82500:58:58,519 --> 00:59:00,159those things. And don't know whathappened to you last year, right,82600:59:00,199 --> 00:59:05,000I mean the fund was down onthe year and you ended up getting still82700:59:05,000 --> 00:59:07,039got a capital game, yeah,because they still distributed the capital gains.82800:59:07,320 --> 00:59:09,599Well, yeah, yeah, becauseI mean they still buy and sell during82900:59:09,639 --> 00:59:15,239the year. So let's say youbought Apple at twenty five dollars and Apple83000:59:15,280 --> 00:59:19,280goes up to two hundred and nowit comes down to one fifty. You83100:59:19,400 --> 00:59:22,679lost money, but if you sellit, you've got one hundred and twenty83200:59:22,679 --> 00:59:24,599five dollars gain. They have topay tax on. That's what happens with83300:59:24,639 --> 00:59:29,360the mutual fund companies. They're tradingthroughout the year, and even in a83400:59:29,400 --> 00:59:32,079down year, they might even bea little bit more aggressive in a down83500:59:32,159 --> 00:59:37,719year selling some highly appreciated securities theyget transferred to through to you. Yeah,83600:59:37,760 --> 00:59:40,199and I mean the mutual ones havedone right, can be you know83700:59:40,360 --> 00:59:45,559good. Well, they're the toolsthey're great tools. We like ETFs better.83800:59:45,679 --> 00:59:49,400The Greenberg financial deals with mostly ETFs. You want to take a stript83900:59:49,400 --> 00:59:52,400to the EV garage, let's doit the you know. And unless you're84000:59:52,440 --> 00:59:57,480an AM talk show host, I'mnot sure why you would be adamantly against84100:59:57,559 --> 01:00:00,000electric cars. What difference does itmake? Don't buy one, right,84201:00:00,719 --> 01:00:04,360you don't have to buy when noone's forcing you to buy one. And84301:00:04,400 --> 01:00:07,239I say an AM talk show becausethe electric cars don't pick up AM radio.84401:00:07,320 --> 01:00:12,320So if you have a if you'rean AM talk show host, you're84501:00:12,800 --> 01:00:15,559animately against electric cars. But Ijust I don't, I don't get it.84601:00:16,559 --> 01:00:22,199So what you hear these people sayis and again I don't understand why84701:00:22,239 --> 01:00:25,960someone would be so animately opposed tonew technology. You don't have to do84801:00:27,000 --> 01:00:29,840it, you know. It's likebeing animally opposed to a cell phone.84901:00:29,960 --> 01:00:34,639You don't have to have one,but it's a great technology. And yet85001:00:34,679 --> 01:00:37,639you hear the here people saying,well, yeah, they're piled up like85101:00:37,719 --> 01:00:44,400mad at the dealerships because nobody wantsto damn things, you know, could85201:00:44,519 --> 01:00:47,400nothing could be further from the truth. Demand for electric cars is booming.85301:00:49,400 --> 01:00:53,000Sales are expected to leave thirty fivepercent this year from last year. Last85401:00:53,039 --> 01:00:58,559year was a record Todd warnauf tonearly ten percent of all car sold are85501:00:58,599 --> 01:01:04,039electric versus percent two years ago.Business is booming. With that said,85601:01:04,079 --> 01:01:08,119manufacturers are producing electrics at a muchmore aggressive pace, and not all evs85701:01:08,159 --> 01:01:13,760are in demand. Price is theprimary thing that's going to stop people because85801:01:13,800 --> 01:01:16,039they're expensive. Still, we stillstill having gotten down to where the average85901:01:16,079 --> 01:01:20,800person can handle it. The waytime for a Tesla still thirty to sixty86001:01:20,880 --> 01:01:23,920days. You want a Mustang mockE three to six months. Don't tell86101:01:23,960 --> 01:01:28,840me they're piling up at the dealershipbecause nobody wants them. The demand is86201:01:28,920 --> 01:01:32,840going off the charts. With thatsaid, electric vehicles like he Is,86301:01:34,599 --> 01:01:39,000Volkswagens, Hiend's, Nissans and othersthat don't get the tax credit are selling86401:01:39,039 --> 01:01:43,639slowly, no question about it.But let me give you an example of86501:01:43,679 --> 01:01:49,199how how electrics being adopted. Todd, The number one selling pick up in86601:01:49,239 --> 01:01:53,480the country over the last forty yearsis forty one fifty. Right, the86701:01:53,559 --> 01:01:58,480fort f one fifty has been numberone for forty years. In twenty twenty86801:01:58,519 --> 01:02:02,440three, they're going to sell twohundred and thirty f one fifties. To86901:02:02,599 --> 01:02:06,840excuse me, two hundred and thirtythousand, two hundred and thirty thousand,87001:02:06,880 --> 01:02:09,280f one fifties are going to besold in this country. Number one selling87101:02:09,320 --> 01:02:14,320truck in the country, Tesla isgonna sell eight times at eight times that,87201:02:15,079 --> 01:02:20,000So they're not piloting up people.How how is that possible? Then,87301:02:21,079 --> 01:02:23,719Tesla's more than eight times tess Teslais gonna sell their entire time,87401:02:23,760 --> 01:02:28,400the entire fleet. Yeah, theTesla is Tesla compared to be more than87501:02:28,440 --> 01:02:31,800eight times of the forty I'm justsimply using it as an example as the87601:02:31,840 --> 01:02:34,800forty one. I was just thinking, well, if that's the case,87701:02:34,840 --> 01:02:38,239the Tesla's the newest most popular car, but no one type of car.87801:02:38,280 --> 01:02:43,559And in fairness, it's not afair comparison. I'm comparing the But I'm87901:02:43,599 --> 01:02:45,719what I'm saying is the number oneselling pickup in the United States over the88001:02:45,800 --> 01:02:52,000last forty years is gonna sell twelvepercent as many vehicles as Testa's gonna sell.88101:02:52,599 --> 01:02:55,280So it's okay, It's gonna beokay. And again, there's no88201:02:55,360 --> 01:02:59,920reason to be animally opposed to it. If you don't like it, buy88301:03:00,079 --> 01:03:02,960it. You don't need to beYou don't need to be badmouth. It's88401:03:04,119 --> 01:03:07,199ridiculous. I hate these people,and it's not political. I have an88501:03:07,239 --> 01:03:10,800awfully a lot of Republican friends thathave electric vehicles. Okay, let's nobody's88601:03:10,840 --> 01:03:14,920fortunated to buy a nlecry vehicle.Well, something I think is political,88701:03:15,000 --> 01:03:20,000and that is the nuclear the wholenuclear thing I mean, and this is88801:03:21,719 --> 01:03:24,639specifically for nuclear energy, Okay,I think this is something that our country88901:03:24,719 --> 01:03:30,840is just not spending enough money on. From nineteen seventy to nineteen ninety,89001:03:30,880 --> 01:03:35,000we did a lot and we producedand constructed a lot of these nuclear reactors,89101:03:35,199 --> 01:03:38,280and right now they're approximately eighteen percentof the electricity we use and it89201:03:38,320 --> 01:03:43,320comes from those nuclear reactors. Thosenuclear reactors are coming offline right They only89301:03:43,360 --> 01:03:45,679have about a thirty to forty yearshelf life before you have to start shutting89401:03:45,719 --> 01:03:50,599them down. And what we're notdoing is creating new nuclear reactors. And89501:03:50,639 --> 01:03:53,000to me, it's just it's dumbfounding. Where we're not producing new oil,89601:03:53,039 --> 01:03:55,880we're not producing new nuclear reactors,but somehow we're going to have to have89701:03:55,920 --> 01:04:00,400all this energy that we have toyou know, we're taking fossil fuels away89801:04:00,440 --> 01:04:05,159and we're not adding new energy back, so you are eventually leading to only89901:04:05,159 --> 01:04:09,440one thing can happen, meaning peopleuse less energy. Well, if people90001:04:09,480 --> 01:04:13,039use less energy, that means standardof living goes down. So that's that's90101:04:13,079 --> 01:04:16,159where we're headed if we don't makea serious change in our energy policy,90201:04:16,320 --> 01:04:21,320either by producing more fossil fuels orfinding more energy efficient vehicles to get us90301:04:21,360 --> 01:04:26,480there. And when I mean vehicles, I mean either make solar better,90401:04:26,679 --> 01:04:29,840make win better. But really Ihaven't seen it where you're able to scale90501:04:29,880 --> 01:04:31,239it. The only one that youcan really see that can scale are these90601:04:31,320 --> 01:04:38,280nuclear fission and open AI CEO SamAltman, he's the guy who is with90701:04:38,559 --> 01:04:42,559Microsoft. There have to a powerpurchase agreement with a company called Hellion,90801:04:43,400 --> 01:04:47,119and they're working on producing nuclear reactorsby twenty twenty eight. Another man,90901:04:47,320 --> 01:04:53,039Bill Gates, he owns a companywhen he left Microsoft because he wants to91001:04:53,039 --> 01:04:59,119start nuclear fission reactors. Those arewhere the lucrativeness and it's it's to me,91101:04:59,199 --> 01:05:01,760I'm very excited that the rich peopleare at least doing it because our91201:05:01,760 --> 01:05:05,079government's not doing it. We needa lot of energy, and all this91301:05:05,199 --> 01:05:10,639AI that continues to come online,we don't have less energy being used online.91401:05:10,679 --> 01:05:13,639We have more energy and we havemore people, which means we need91501:05:13,719 --> 01:05:16,199more energy. We have to continueto produce, not take away from the91601:05:16,199 --> 01:05:19,599grid. I think one of theone of the biggest problems we have in91701:05:19,599 --> 01:05:25,639this country is our unwillingness to talkabout nuclear power. It seems like it's91801:05:25,719 --> 01:05:29,199just a piranha, right that noone wants to discuss, and it's just91901:05:29,480 --> 01:05:33,079unfortunate because it is clean. Itis an example. Look at the three92001:05:33,119 --> 01:05:39,719reactors up at Palaverti. They've developedwalk away technology pump out electricity for years92101:05:39,760 --> 01:05:42,519and years and years. Well,they always said what happens when all humans92201:05:42,519 --> 01:05:45,519go away, what happens to thenuclear Well they have walk away technology now92301:05:45,519 --> 01:05:47,719that it works the exact opposite.You need heat to heat it up,92401:05:48,079 --> 01:05:51,639so when there's no energy, there'sno it's done, so there's no more92501:05:51,719 --> 01:05:56,000threats that they used that you hearall on the talking points, and so92601:05:56,599 --> 01:05:59,280that's where the focus needs to be. I agree. I think it is92701:05:59,280 --> 01:06:02,480a France gets most of their energyfrom nuclear, the world leader right now92801:06:02,519 --> 01:06:08,159in nuclear Yeah, we're really behind, and China's the world leader on producing92901:06:08,239 --> 01:06:13,719new nuclear plants for their country alsothe world later and building new coal powered93001:06:13,719 --> 01:06:15,880plans for their country. But they'reat least looking at the fact that they93101:06:15,880 --> 01:06:18,880aren't going to need more energy,so we need to add to energy grid.93201:06:19,079 --> 01:06:21,719That's their Chinese thought, right.I just don't know why are we93301:06:21,800 --> 01:06:26,079not thinking like that after three milesoutland. I just don't know how we're93401:06:26,079 --> 01:06:29,800ever going to get changed to thinking. It's not it's it's thinking out of93501:06:29,800 --> 01:06:32,559ignorance. It's it's opposition. It'skind of like electric cars, just opposition93601:06:32,599 --> 01:06:35,039out of ignorance. Yeah, youknow, just what is the point?93701:06:35,199 --> 01:06:40,679Just look at this. It's reallysomething that needs to be needs to be93801:06:40,719 --> 01:06:43,519looked at. Gebashian, did youhave another one for us? Or with93901:06:43,559 --> 01:06:45,840that? It another question? Yeah? Yeah, I think I did.94001:06:45,920 --> 01:06:47,920I think you had? I thinkyou had Did we have two? We94101:06:47,960 --> 01:06:51,119had three? Actually that wrote inthis week comes in from Roger and he94201:06:51,159 --> 01:06:56,320actually wrote, how do interest ratesaffect the Market's kind of a simpler question,94301:06:56,400 --> 01:06:59,719but oh, I have a greatpoint on this, baby. Interest94401:06:59,840 --> 01:07:03,639rates are very They definitely can impact. To me, the biggest impact is94501:07:03,679 --> 01:07:06,920valuations, because when you're looking atthe value of a stock, you have94601:07:06,960 --> 01:07:11,599to put it in the ten yearinterest rate because you're discounting the free cash94701:07:11,599 --> 01:07:14,159flow. And so when interest ratesare higher, the ten year interest rates94801:07:14,199 --> 01:07:16,840higher, your free cash flow thatyou're discounting is not doesn't it's not worth94901:07:16,880 --> 01:07:20,159as much, so your stock's less. So that's one thing. Obviously,95001:07:20,280 --> 01:07:25,960the Feds, the the what doyou say, the dog that weighs the95101:07:26,000 --> 01:07:30,920tail, tail wag, tail wagsthe dog. Yeah, yeah, there95201:07:30,920 --> 01:07:34,159we go. Yeah. Well,I saw an interesting stat that said a95301:07:34,239 --> 01:07:38,920ten basis point rise in the thirtyyear yield is about ten to twelve times95401:07:38,920 --> 01:07:42,960more powerful than the same increase inthe two year yield. And it makes95501:07:43,000 --> 01:07:46,000sense, you know. I mean, obviously we know longer dated fixing fix95601:07:46,159 --> 01:07:50,119dated debt, when that interest ratesgo up more, they lose more value95701:07:50,159 --> 01:07:55,360than the shorter term beca're more volatile. So when what we saw this last95801:07:55,360 --> 01:08:00,599week with the ten year in thethirty year reaching multidecade, eyes right,95901:08:00,920 --> 01:08:04,119I mean that had a huge impacton valuation, had a huge pack and96001:08:04,119 --> 01:08:09,360on stocks, and that's why we'reseeing some pullback here. And when you96101:08:09,440 --> 01:08:12,239see a huge increase in the twoyear, stocks might not react the same96201:08:12,239 --> 01:08:14,760way that they see a huge increasein attainment. Well, we just see96301:08:14,800 --> 01:08:23,239those a dramatic narrowing of the spread, uh to the four point five seven96401:08:23,399 --> 01:08:27,680the two years five point zero fivefifty business points. That's half of what96501:08:27,760 --> 01:08:31,560has been it's been a full percentagepoint. So that that is a move96601:08:31,640 --> 01:08:36,840toward normalcy. That's a move towardslanding the plane without crashing the plane.96701:08:36,840 --> 01:08:40,640I have a question for you,because you're you were alive at the time96801:08:41,319 --> 01:08:48,479when we were going into from prefacingwhere we were, it seems like what96901:08:48,520 --> 01:08:53,760we're headed into now with this bearsteepening is somewhat similar to the early eighties97001:08:53,760 --> 01:08:57,479and then what ended up being adecade long high interest rate environment. Do97101:08:57,560 --> 01:09:00,439you see any similarities of the eightiesand what we're going into now. A97201:09:00,439 --> 01:09:05,760big difference between the early eighties,the Carter era and now is monetary policy.97301:09:05,920 --> 01:09:12,000It's totally different now than it wasthen. There was really no reactive,97401:09:12,560 --> 01:09:17,279reactive policy. Now we will driveour economy into recession before we'll accept97501:09:17,359 --> 01:09:21,600high interest rates. We'll drive itinto recession. So no, I don't97601:09:21,600 --> 01:09:26,159see any similarity at all. AndI keep hearing that, oh, maybe97701:09:26,159 --> 01:09:29,239we're gonna go about the quarter yearswe're gonna be able to get a seventeen97801:09:29,279 --> 01:09:32,199and a half percent of cd No, I'm not gonna that's not gonna happen,97901:09:32,279 --> 01:09:35,800not with the monetary policy we haveright now, where the Federal Reserve98001:09:35,880 --> 01:09:39,680is willing to shut things down beforeit gets to that left. Don't you98101:09:39,760 --> 01:09:42,159also think there's so much more debtin the world than we're in the eighties?98201:09:42,239 --> 01:09:44,960Oh gonna, yes, I meanyeah, could you imagine? I98301:09:44,960 --> 01:09:46,439mean, it's just the pipes aregoing to burst at some point right now.98401:09:46,840 --> 01:09:53,319It's Yeah, we were talking earlierabout our debt to GDP had gotten98501:09:53,359 --> 01:09:56,039to a level that we hadn't seensince World War Two. Well we've now98601:09:56,079 --> 01:10:00,439exceeded that. Yeah, we're nowabove the debt equity ratio we had in98701:10:00,479 --> 01:10:04,960World War Two. It's ridiculous.It's absolutely ridiculous that we cannot get spending98801:10:05,039 --> 01:10:09,479under control. And I think that'spart of what what the five or six98901:10:09,640 --> 01:10:15,640Republican Congress people are trying to say. It's stop, it stops now,99001:10:15,720 --> 01:10:20,359it stops here right now. Wellokay, uh, you know, but99101:10:20,479 --> 01:10:28,159at some point somebody has to stepup and be uh physically responsible. Right99201:10:28,159 --> 01:10:32,359now, they're putting it all onJerome Poll's shoulders and Jerry, good luck.99301:10:33,039 --> 01:10:38,079You know you have our blessing.Uh we we we hope you can99401:10:38,119 --> 01:10:42,000get this under control, and we'regonna go on vacation. It's very it's99501:10:42,079 --> 01:10:46,399very frustrating. He's getting little orno help out of Congress, and it's99601:10:46,720 --> 01:10:51,479you have Elizabeth Warren yell at himabout the unemployment rate going up and the99701:10:51,479 --> 01:10:55,319possibility all these people are gonna losetheir jobs if you keep raising it straight.99801:10:55,359 --> 01:10:57,000It's like, what do you wanthim to do? I guess they99901:10:57,000 --> 01:11:01,840can quit complain about Diane Feinstein retiringright She passed away Thursday, I think100001:11:01,880 --> 01:11:06,079Thursday evening. Yeah, ninety yearsold, wouldn't just wouldn't leave. So,100101:11:06,279 --> 01:11:09,319you know, I still think that'scrazy that she was able to be100201:11:09,359 --> 01:11:13,520in Congress at ninety but she makeher decisions, but she had a power100301:11:13,520 --> 01:11:15,960of attorney making her personal decisions.Yes, yeah, how was that possible?100401:11:16,159 --> 01:11:20,920It's and h In the congressional meetings, there was a young person sitting100501:11:20,960 --> 01:11:25,560nextra whispering in her ear. Idon't know what, but I'm thinking what100601:11:25,680 --> 01:11:27,880to say? Going on? Yeah, yeah, what's going on? It100701:11:27,960 --> 01:11:30,720is ridiculous. It's too bad.That and term limits would be would be100801:11:30,760 --> 01:11:35,199wonderful. I don't know how weget term limits when that happened, but100901:11:35,359 --> 01:11:40,520yeah, when you have to Okay, imagine any of us voting to have101001:11:40,680 --> 01:11:44,800a limited time that we can doour job and you can only have this101101:11:44,920 --> 01:11:47,720job for you know, eight yearsor whatever. Anyway, we appreciate you101201:11:47,840 --> 01:11:51,840joining us on this Sunday morning.Uh, we love bringing you the show.101301:11:53,239 --> 01:11:56,039We'll be back. We got JonathanSavillia, our attorney, with us101401:11:56,079 --> 01:12:00,600again today. Uh, Todd andSebastian have some things just day and we'll101501:12:00,640 --> 01:12:03,520talk a little bit more about financialplanning and what you're doing there. We've101601:12:03,560 --> 01:12:09,640got some corporate news that will passalong if you didn't have a chance to101701:12:09,680 --> 01:12:14,600see it. But yeah, thanksagain for joining us on this windy Sunday101801:12:14,600 --> 01:12:30,560morning. We'll right back. Let'ssay it's all a fab Welcome back to101901:12:30,600 --> 01:12:33,119the Money Matters Show. My nameis Todd Glick. I'm here with Dylan102001:12:33,159 --> 01:12:40,439Greenberg, Sebastian Borcini, and DaveSherwood. Yeah. Now, financial planning,102101:12:40,439 --> 01:12:43,399obviously is something that we really believein here because at the end of102201:12:43,399 --> 01:12:45,680the day, everything we do asmoney managers is based on your risk tolerance102301:12:45,720 --> 01:12:50,439and goals and objectives of your plan. One of the most fascinating things I102401:12:50,479 --> 01:12:56,359had during one of these meetings thislast week was going through all the inputs,102501:12:56,359 --> 01:12:59,319and we go through what's your pensionfigures? Right? What are your102601:12:59,319 --> 01:13:01,840Social secure your figures at? Andit was the social security that caught my102701:13:01,880 --> 01:13:08,319eye because the spouse had roughly,let's say, twenty thousand and benefits yearly,102801:13:09,960 --> 01:13:14,239and then the other spouse had onlyfive thousand dollars. And I was102901:13:14,239 --> 01:13:17,000wondering, I'm well, you're supposedto be getting half of your spouse's benefit,103001:13:17,239 --> 01:13:20,119right, And so I'll ask inim said, when did you guys103101:13:20,159 --> 01:13:26,359get married? They got married twoyears ago, they filed. The woman's103201:13:26,359 --> 01:13:31,359spouse filed ten years ago on hersoul Security, right, so she was103301:13:31,399 --> 01:13:36,159getting her old Social Security and shedid not ever repply. And it says103401:13:36,279 --> 01:13:40,199on the SOLI security website that aslong as you're married for one year or103501:13:40,239 --> 01:13:45,199more than, you're eligible for yourspouse's benefit continuously. Yeah. Right,103601:13:45,239 --> 01:13:49,119And so we realize she's not gettingthe spousal benefits that she should be getting103701:13:49,199 --> 01:13:53,239right now, right, so thenshe's able to go out and talk about103801:13:53,279 --> 01:13:56,199Those are the type of things thatyou're able to uncover when you really bring103901:13:56,279 --> 01:13:59,880everything into one picture. Right,when you're able to bring in the soul104001:14:00,159 --> 01:14:03,359securities, the investment assets, thehome purchases, the annuities, all things104101:14:03,399 --> 01:14:08,039that come into one little picture,then can we can see is there something104201:14:08,079 --> 01:14:11,439that fell through the cracks? Andit can be simple things the state planning,104301:14:11,640 --> 01:14:15,359social security numbers, not maximizing yourpension, not understanding your risk.104401:14:15,880 --> 01:14:19,000Right. We see it all thetime where people are worried about their investment104501:14:19,039 --> 01:14:24,560returns and we see their portfolio andit's a really risky portfolio, and then104601:14:24,600 --> 01:14:27,479we ask them how risky they areas people, and they won't even go104701:14:27,479 --> 01:14:31,239above the speed limit. Right,So if you're not, it's it has104801:14:31,279 --> 01:14:35,079to be an intertwined plan. Ifyou have a money manager, great,104901:14:35,119 --> 01:14:38,560If you have an annuity salesman,great, If you have an insurance salesman105001:14:38,640 --> 01:14:41,800great. But if they're not alltalking to each other, you don't have105101:14:41,880 --> 01:14:46,600a true fiduciary planner. You're havingpieces kind. Everyone has a questionnaire,105201:14:46,760 --> 01:14:50,319right, did you fill out arisk profile questionnaire? Every firm has one105301:14:50,359 --> 01:14:55,359of those. But how many placesto ask you if you parachute, if105401:14:55,359 --> 01:14:58,199you skydive, how many places toask you if you ride a motorcycle?105501:14:58,439 --> 01:15:00,000How many places to ask you?How fast you driving you go to Phoenix?105601:15:00,159 --> 01:15:04,520These are all things to talk about. What's your risk profile really is?105701:15:05,000 --> 01:15:08,960How about looking at the portfolio you'vehad, how about looking at your105801:15:09,000 --> 01:15:11,760four one K plane? How doyou have that allocated? Those are all105901:15:11,760 --> 01:15:15,800the and the social security thing ishuge because social Security is never going to106001:15:15,840 --> 01:15:17,319call you and say, oh,by the way, you're screwing yourself.106101:15:17,399 --> 01:15:20,800Yeah. Right, They're never gonnacall It's not gonna happen. I had106201:15:20,840 --> 01:15:25,840a galwalk in years ago, seventyfive years old, and I said,106301:15:25,880 --> 01:15:29,680how much are you getting from socialSecurity? She goes, oh, I'm106401:15:29,680 --> 01:15:34,840not taking it. I'm still working. Whoa stop. Social Security goes to106501:15:34,920 --> 01:15:39,640seventy. That's the it. Itdoesn't get any bigger after seventy. It106601:15:39,680 --> 01:15:42,880doesn't matter that you're working full time. You could be warm Buffett. I106701:15:42,920 --> 01:15:45,920bet warm Buffett gets social security right. Seventy years old. That's it.106801:15:46,239 --> 01:15:50,720If you're seventy five years old andyou've never taken social Security, you've got106901:15:50,760 --> 01:15:55,359four and a half years worth ofSocial Security that's gone forever. They'll give107001:15:55,399 --> 01:15:58,039you six months of it. Youcome in at seventy five and say,107101:15:58,039 --> 01:16:00,279hey, by the way, i'venever taken any Well, they'll give you107201:16:00,399 --> 01:16:03,039six months, but that's it andthen you're then you go from there.107301:16:03,279 --> 01:16:08,319But it isn't going to get anybigger waiting until seventy five and you don't107401:16:08,359 --> 01:16:12,600have to be done working there,And again they're not gonna call. Do107501:16:12,680 --> 01:16:15,119they give you that six months asa lump sum or yeah, yeah,107601:16:15,239 --> 01:16:17,760yeah they do, but you're outfour and a half years. So how107701:16:17,760 --> 01:16:20,760about you, I'd really have thefive years worth of benefits and forget the107801:16:20,800 --> 01:16:26,359lump Start at seventy. Yeah,start at seventy and I know later than107901:16:26,399 --> 01:16:28,960seventy. In fact, if youwait, this is interesting. If you108001:16:29,039 --> 01:16:33,079wait until seventy, you have tolive to be changed now a little bit,108101:16:33,119 --> 01:16:39,119but it's probably at least eighty eightythree. Eighty four was what it108201:16:39,199 --> 01:16:41,199used to be Todd. I thinkit might be a little bit less than108301:16:41,239 --> 01:16:45,119now. But essentially, if youtake it at sixty six, you have108401:16:45,199 --> 01:16:48,960to lift into your early eighties tobreak even. Well, that's again the108501:16:49,000 --> 01:16:54,560financial plan tool we have has anactual social security tool that shows you your108601:16:54,560 --> 01:16:57,680exact break even day. And that'swhy I said eighty three eighty four is108701:16:57,720 --> 01:17:00,159what I normally see on this optimizedtools. Yeah, because it will give108801:17:00,199 --> 01:17:02,720you all the strategies that kills you. What would look like if you take108901:17:02,760 --> 01:17:06,399a sixty two versus sixty five,sixty seven, seventy, all the way109001:17:06,800 --> 01:17:10,960you can customize it however you wouldlike, and it shows you break even109101:17:10,960 --> 01:17:14,680for each option. Yeah. Italso shows if taking it at say sixty109201:17:14,720 --> 01:17:17,359five, would hurt the confidence andhow your plan would be throughout retirement or109301:17:17,399 --> 01:17:21,159maybe wait till seventy What would thatdo to the confidence of your plan working109401:17:21,239 --> 01:17:24,479through retirement? Yeah, because it'sall a cash flow thing. If you109501:17:24,479 --> 01:17:27,439retire in sixty five, but youwait till sixty seven to turn on your109601:17:27,439 --> 01:17:29,800solo security, if you don't havethose two years of income gap, then109701:17:29,840 --> 01:17:30,760you can't do that. Right.So I had a client I met with109801:17:30,960 --> 01:17:38,680that was taking ten percent more oftheir principle than they then the principle could109901:17:38,760 --> 01:17:45,119support waiting for social security to goup by eight percent per year. This110001:17:44,960 --> 01:17:47,880is this makes those sense, right, You're going backwards by ten percent waiting110101:17:47,880 --> 01:17:51,600for social security to go up byeight percent. You know, so that110201:17:51,680 --> 01:17:55,119those are all things that come outin the finance he would have to live110301:17:55,159 --> 01:17:57,560the probably ninety for that to break. Even things you don't know, I110401:17:57,560 --> 01:18:00,600mean things you just don't know.Yeah, that will come up in a110501:18:00,600 --> 01:18:05,560financial plan questions and you'll be askedthat you maybe have never even considered exactly.110601:18:06,319 --> 01:18:10,079Yeah. It's a great conversation andit gets really into the depth.110701:18:10,119 --> 01:18:14,479And what it does really too isbring everything to one picture. You guys110801:18:14,520 --> 01:18:16,880do a great job, and thedemand for it is off the charts,110901:18:16,920 --> 01:18:20,760and give us a call. We'llfind a spot for you. And you111001:18:20,800 --> 01:18:27,319guys typically meet with people, youdo the financial plan while they're sitting there,111101:18:27,960 --> 01:18:30,439You print it out and then youemail it to them. And what111201:18:30,479 --> 01:18:33,720they do with that from that pointon, we hope that they become clients111301:18:33,720 --> 01:18:36,800of ours and allow us to whatthey do from that point on. They111401:18:36,800 --> 01:18:41,920need simple We send the risk tolerancequestionnaire because once we get that risk tolerance,111501:18:42,560 --> 01:18:45,199like in the first meeting, we'renot telling you what we think you111601:18:45,199 --> 01:18:48,199should do. We're getting information,we're understanding, we're listening, and then111701:18:48,279 --> 01:18:51,880we send you the risk tolerance questionnaireto get the idea of exactly what your111801:18:51,960 --> 01:18:56,800risk is, then we can makesuggestions. If you have someone who's making111901:18:56,880 --> 01:19:00,560a lot of suggestions in a firstmeeting and they haven't actually known your risk112001:19:00,600 --> 01:19:02,720and your goals and objectives, theydon't, they're not really doing what's best112101:19:02,720 --> 01:19:05,560for you. They're doing what's bestfor their pocket, right, and so112201:19:05,560 --> 01:19:09,880that's why it's really important to knowthat. In that second meeting, that's112301:19:09,880 --> 01:19:13,319when we're really giving proposals. Wegive you an actual packet and show you112401:19:13,399 --> 01:19:15,880where the account's going to be,how it's going to be allocated, what112501:19:15,960 --> 01:19:17,840you should expect, where the cashflow is going to come from, the112601:19:17,880 --> 01:19:21,960sources of that cash flow, what'sthe portfolio projection looks like over a twenty112701:19:23,000 --> 01:19:28,399thirty year period. That's really thethe ribbon on, you know, the112801:19:28,439 --> 01:19:30,720present, that's that wraps it allup together. The financial plan, that's112901:19:30,760 --> 01:19:34,319just the starting point. You know, it's nice, it's a nice snapshot,113001:19:34,359 --> 01:19:38,199but it doesn't really tell you whatto do next. Now, that's113101:19:38,199 --> 01:19:41,479really a great point. If yousit down with someone to do a financial113201:19:41,520 --> 01:19:45,439plan and five minutes into it,he's pointing you to a particular annuity,113301:19:45,199 --> 01:19:49,640that's a that's a red fight.I mean that person is there for their113401:19:49,640 --> 01:19:55,199own income, their own pocket andnot your pocket. Yeah, because it113501:19:55,199 --> 01:19:58,680takes time to build the portfolio basedoff your risk tolerans and you're wanting your113601:19:58,680 --> 01:20:02,239goals and your retirement plan. Ittakes time to build a portfolio list tailor113701:20:02,279 --> 01:20:05,600towards you. Yeah, do thatright during the first meeting. Right the113801:20:05,680 --> 01:20:10,560time it takes to understand you.Yeah, that's the most part to know.113901:20:10,720 --> 01:20:13,479You get to know who you are. We know how to manage money.114001:20:13,520 --> 01:20:15,840That's not the hard part for us. It's knowing. It's the hard114101:20:15,840 --> 01:20:18,159part is understanding who you are asan individual. I mean, you sit114201:20:18,239 --> 01:20:21,439down with someone in the in thefirst conversation. I had some new clients114301:20:21,439 --> 01:20:25,479on Tuesday, and the first thingwe talked about is, Okay, where114401:20:25,479 --> 01:20:27,960are you from, Where did yougrow up? How many children do you114501:20:27,960 --> 01:20:30,119have, What did you do fora living? What do you what are114601:20:30,119 --> 01:20:33,640your hobbies? What you getting toknow these people as opposed to oh,114701:20:33,720 --> 01:20:38,119yeah, you've got one hundred grandand I've got this annuity over here that114801:20:38,199 --> 01:20:40,840it will do this and this andthis and and I'm pushing in it for114901:20:40,880 --> 01:20:43,840fourteen years. And you know,I get my ten grand and everybody goes115001:20:43,840 --> 01:20:47,720home. It's just not the waythat you want to do it, and115101:20:47,840 --> 01:20:50,600it should be. It should bea red flag. Like like Todd and115201:20:50,680 --> 01:20:55,920Dale and Booth just said, ifyou sat down with someone and products come115301:20:56,000 --> 01:21:00,039up in the first ten minutes,something's wrong. Specific products, specific products115401:21:00,159 --> 01:21:03,640don't They're like, I got thetI know exactly what products you need the115501:21:03,640 --> 01:21:06,840first ten minutes, twenty minutes ofa meeting. They already thought about it115601:21:06,880 --> 01:21:10,079before you got in there. I'vebeen doing this for a year and a115701:21:10,119 --> 01:21:12,880half now I've got a good handleon this, and here's what you need.115801:21:13,039 --> 01:21:15,119Yeah, trust me, it's it'sa guaranteed win. All you're you're115901:21:15,119 --> 01:21:18,520gonna get twenty five percent bonus,the first twenty five percent bonus, ten116001:21:18,560 --> 01:21:24,680percent guaranteed grow. Yeah. Reallythat's all sarcasm. Yeah know that.116101:21:24,840 --> 01:21:28,359When you hear a twenty five percentbonus, ask us if it's real.116201:21:28,399 --> 01:21:30,279First, don't believe it's real.And it's not real money. It's not116301:21:30,359 --> 01:21:34,880real money. It's it's a factorthat they used to calculate how much of116401:21:34,920 --> 01:21:39,479your money they're gonna send you back. But it's not like you put one116501:21:39,520 --> 01:21:42,840hundred thousand dollars into a nudy andthen five years later you take it out116601:21:42,920 --> 01:21:45,239and Marcus just went down. It'snot like you're gonna get one hundred and116701:21:45,279 --> 01:21:48,039twenty five thousand dollars, No,in cash. They're willing to pay you116801:21:48,279 --> 01:21:53,159six percent income on your und onone hundred and twenty five, but it116901:21:53,159 --> 01:21:57,920comes out of your principle, outof your original hundred thousands. It's very117001:21:58,000 --> 01:22:03,319it's very misleading. It's a oneof the relatively new marketing tools that annuity117101:22:03,319 --> 01:22:09,640companies have come up with to getmore business. And honestly, it's it's117201:22:10,399 --> 01:22:16,600it bothers us to hear because somany people believe that that really is a117301:22:16,680 --> 01:22:20,199twenty five percent cash bonus. Theybring in one hundred grand, they're gonna117401:22:20,199 --> 01:22:25,079get twenty five dollars extra, andmost of the time that bonus is locked117501:22:25,119 --> 01:22:28,840up in a ten or fourteen yearproduct. And I mean that the person117601:22:28,840 --> 01:22:35,680who's providing that that annuity UH maydisclose may do a decent job of disclosing117701:22:35,720 --> 01:22:42,039that that's not cash, but mostpeople that we've run into really think it117801:22:42,119 --> 01:22:45,000is and they're waiting for it,and it's never gonna come. It's never117901:22:45,039 --> 01:22:49,439gonna come right right. So Peloton, one of our favorite stocks to hate118001:22:50,159 --> 01:22:56,319ninety seven percent it's value. Thelost ninety seven percent its value, and118101:22:56,439 --> 01:23:01,520on Thursday they open higher because theyannounced to five your strategic partnership with Lulu118201:23:01,640 --> 01:23:08,800Lemon. Oh yeah right, Pelotonwill be featured in Lulu ads and Lulu118301:23:08,840 --> 01:23:13,239will become Peloton's primary apparel supplier.You know, twenty twenty was an example118401:23:13,279 --> 01:23:16,680of this people having rash decisions becauseduring twenty twenty, when the movie theaters118501:23:16,680 --> 01:23:19,600were shut down, jims were shutdown. All of a sudden, you118601:23:19,760 --> 01:23:23,239thought the streaming is gonna be theonly thing. Movie theaters were never going118701:23:23,279 --> 01:23:26,199to come back. You thought gymswere never gonna come back because of things118801:23:26,199 --> 01:23:30,239like Peloton, and they all skyrocketall the stocks skyrocketed, and now we're118901:23:30,239 --> 01:23:31,399back to normal. We've been backto normal for a couple of years.119001:23:31,560 --> 01:23:34,399People love going to the gyms,and people love going to the movie theaters.119101:23:34,640 --> 01:23:38,279Those didn't go out of business likeeverybody thought they would. But they're119201:23:38,319 --> 01:23:40,760so hell bent on saying that they'regoing to go out of business back in119301:23:40,760 --> 01:23:43,279twenty twenty, and they're never gonnaopen again. They're never gonna make money.119401:23:43,399 --> 01:23:46,119And that was just not true.I have a hearing issues, as119501:23:46,199 --> 01:23:50,159do many people of older age,and I was concerned about going to the119601:23:50,159 --> 01:23:53,680movie. Haven't been to a moviesince the pandemic. Right, yeah.119701:23:53,720 --> 01:23:57,039I took my grandkids to The LittleMermaid, and I said to my wife,119801:23:57,079 --> 01:23:58,760I set up. I don't careif I can hear it or not.119901:23:58,920 --> 01:24:00,800What do I care? It's alittle right. I went into the120001:24:00,800 --> 01:24:04,399movie theater. They start the movieand it's blurring, so lord, I120101:24:04,479 --> 01:24:09,279had to take my hearing aids out. It was it was too darn loud.120201:24:09,520 --> 01:24:12,319So I don't have to be tooconcerned about going to the movies and120301:24:12,399 --> 01:24:15,319not hearing the experience. It's fun, Oppenheimer at the Imax one, it120401:24:15,359 --> 01:24:17,920was fun time, I understand.But a friend of mine who wears hearing120501:24:17,960 --> 01:24:20,479aids, he goes, ma'am inthe bomb was office like definiely, Oh,120601:24:20,520 --> 01:24:25,359I can imagine. It was reallybad. We appreciate you joining us.120701:24:25,359 --> 01:24:28,840We got one have one more segment. I got one more segment.120801:24:28,880 --> 01:24:32,079We have one more segment. Dinojoin us. Jonathan Sibelia is in the120901:24:32,079 --> 01:24:38,239house, and we look forward toto bringing you more of the money Matter121001:24:38,319 --> 01:24:41,600show. When it's supposed to behollowing today, so we'll see what goes121101:24:41,640 --> 01:24:46,760on there. Right, we'll beback. We might have to break say121201:24:46,840 --> 01:24:59,439it's only a baby. Welcome back, everybody. This is our last segment121301:24:59,439 --> 01:25:01,680we do appre you're listening. Rememberall you have to do his costs to121401:25:01,720 --> 01:25:04,520get together with us. We'll gladto sit down. Give me a free121501:25:04,800 --> 01:25:09,680financial plan, risk analysis, whateveryou need, show you how to mitigate121601:25:09,800 --> 01:25:13,600risk. Listen, we know wherewe're at. Everything has a risk and121701:25:13,600 --> 01:25:17,560everything has a chance of things happening, So understand those before you before we121801:25:17,600 --> 01:25:23,920invest. All right, we gotim stay tourney today. Hey Jonathan,121901:25:24,079 --> 01:25:26,560Hey, guys doing well? Good? How are you? I'm pretty good,122001:25:26,560 --> 01:25:30,600happy Sunday. Yeah, and beyondthe Mike buddy till you can hear122101:25:30,640 --> 01:25:32,199you, I'm sorry if I'm alittle low. So I'll get a little122201:25:32,199 --> 01:25:35,920bit closer for you, guys.Gy'd you know Jonathan houses with us here.122301:25:35,960 --> 01:25:40,199He has his own stay planning forhim. He's an attorney, but122401:25:40,279 --> 01:25:45,119he also has a counting background andthat it's very very helpful in what we122501:25:45,199 --> 01:25:47,680do. We all work together,we all help out each other, and122601:25:47,720 --> 01:25:50,359he's just part of our team andWe're happy to have him. Well,122701:25:50,439 --> 01:25:55,520thank you guys. First off,I want to say, if anyone that's122801:25:55,600 --> 01:25:58,279listening has a topic that they wantme to talk about on the air,122901:25:58,399 --> 01:26:00,239feel free to reach out to me. Day walked by my office. What123001:26:00,279 --> 01:26:03,159do you got? What do youhave? What do you have? And123101:26:03,479 --> 01:26:09,399I basically go through real life thingsthat I go that I hear each week123201:26:09,439 --> 01:26:12,560and I explain it to you guys, and hopefully hopefully it processes. But123301:26:12,560 --> 01:26:15,239if you have something going on,just give me, send me an email123401:26:15,119 --> 01:26:18,039and asked say, hey, canyou talk about this? Maybe? And123501:26:18,119 --> 01:26:23,039I won't give you a direct legaladvice, but maybe I'll talk about the123601:26:23,079 --> 01:26:27,520situation and uh and hit the wavetops from fifty foot fifty thousand feet.123701:26:28,079 --> 01:26:30,279You know, I got a bit. You've gotten so much better on the123801:26:30,359 --> 01:26:33,600radio too, and much run intofamily. Yeah. Absolutely. You can123901:26:33,720 --> 01:26:40,760email Dean at Greenberg Financial dot comor or Toddy at Greenberg Financial dot com124001:26:40,880 --> 01:26:43,960or Dylan at Greenberg Financial dot comor call us. We'll contact whatever.124101:26:44,039 --> 01:26:45,920Just get in touch with us.You have any questions for John, get124201:26:45,920 --> 01:26:49,640in touch with us. Yeah,what's our topic today? Well? What124301:26:49,800 --> 01:26:55,079I do? Your story? What'smy story? So actually, it was124401:26:55,119 --> 01:26:58,359one of one of the listeners.They may not be here and listening today,124501:26:58,399 --> 01:27:01,119who knows, but it's so Iwon't say any names. But they124601:27:01,159 --> 01:27:05,199had a situation where mom's trust,mom and dad's trust were prepared back in124701:27:05,239 --> 01:27:09,159the nineties. And Dave, oneof the first things we spoke about when124801:27:09,239 --> 01:27:13,960we first met was back then everythingwas a B trust. Now they have124901:27:14,000 --> 01:27:17,319a piece of property because dad died. And the way an a B trust125001:27:17,439 --> 01:27:21,000works is that after the first spousepasses, the estate splits in two.125101:27:21,720 --> 01:27:26,920Half goes into a survivor's trust,the other half goes into an irrevocable trust125201:27:26,920 --> 01:27:30,520where the assets are basically locked in. And these were very popular back in125301:27:30,560 --> 01:27:34,199the nineties. And if you don'treview your trust, you could get caught125401:27:34,239 --> 01:27:40,640into a situation where a client rightnow, their vacation home is stuck in125501:27:40,680 --> 01:27:43,760this B trust, okay, andthey're trying to get it out. They125601:27:43,800 --> 01:27:47,520can't. This might have been goodplanning. You're trying to get it out125701:27:47,600 --> 01:27:53,960though. Well, basically they wantedso there was three beneficiaries, three children.125801:27:54,600 --> 01:27:58,319Now the mom, the surviving spouse, she wants to give the house125901:27:58,359 --> 01:28:01,239to the one child, and youknow compensate to the other children with cash,126001:28:01,319 --> 01:28:04,880but they can't do that according tothe terms of the trust because things126101:28:04,920 --> 01:28:08,960were locked in. So it's alwaysgood to review your trust, don't sit126201:28:09,039 --> 01:28:12,119on it for thirty years, becausewe could be in this situation. So126301:28:12,119 --> 01:28:13,880how do you go about it?Are you able to get it out or126401:28:13,960 --> 01:28:15,319is it locked in there forever?Well, I mean, it all depends.126501:28:16,119 --> 01:28:23,279There are some strategies that but they'reexpensive. You know, if we126601:28:23,359 --> 01:28:28,239have an irrevocable trust, we possiblycan do a non judicial family settlement agreement,126701:28:28,439 --> 01:28:30,800but you know that gets more attorneysinvolved, and that could get very126801:28:30,800 --> 01:28:35,920expensive. There's some decanting things thatyou can do here in Arizona that's allowed126901:28:36,279 --> 01:28:41,119under certain circumstances, and you know, the rules change, but you might127001:28:41,159 --> 01:28:45,119not be able to pull an assetout with a decanting feature. The biggest127101:28:45,159 --> 01:28:47,720problem is getting the asset out andgetting it to where you want it to127201:28:47,760 --> 01:28:55,239be without tax, right, withoutcapital gains tax exactly because I think that127301:28:55,319 --> 01:28:58,880I know the people you're talking about. The home may have been purchased for127401:28:59,720 --> 01:29:01,880less in one hundred grand. Well, and even then, even if you127501:29:02,000 --> 01:29:05,840do want it to go into theb trust, there's ways ways that so127601:29:06,000 --> 01:29:11,640back that I'm assuming the way theB trust was set up, where after127701:29:11,680 --> 01:29:15,479the second spouse passes, there's nosecond step up in basis. You could127801:29:15,520 --> 01:29:23,640review that and really and possibly rewardthat trust if you catch it in time.127901:29:23,800 --> 01:29:28,319Where after the second spouse passes,there'll be another step up in basis,128001:29:28,319 --> 01:29:31,399so the kids will get maximum taxbenefit. But it's unusual, isn't128101:29:31,439 --> 01:29:35,000it. Normally you get a stepup in basis when the first spouse dies128201:29:35,479 --> 01:29:40,520and then when the second spouse.Now it's not splits into two trust again128301:29:40,600 --> 01:29:44,319back in the day, I don'tsee that so much anymore. But uh,128401:29:44,359 --> 01:29:46,880there is no step up in basisfor the irrevocable trust. But it128501:29:46,960 --> 01:29:53,680got splipped acause the un you gottaxed on in your state was much less128601:29:53,720 --> 01:29:57,000correct. That's fine, it wassix hundred thousand. That's it now Now128701:29:57,840 --> 01:30:00,399knock, I have an A Btrust. I probably need you to take128801:30:00,439 --> 01:30:02,399a look at it. Yeah,I know. Our mind was formed at128901:30:02,399 --> 01:30:05,600the same time, being back inthe eighties because Seconder the thousand was the129001:30:05,680 --> 01:30:10,680maximum of state tax exemption, andby doing an living trust you could bring129101:30:10,720 --> 01:30:14,319that to one point two million whenUS twelve and a half millions, and129201:30:14,399 --> 01:30:16,079back then we said one point twomillion would be so happy to be there.129301:30:16,279 --> 01:30:20,079Yes, and and well, what'snew is that back in Durney Obama129401:30:20,079 --> 01:30:27,079administration they set up the portability andportability basically allows you to use that exemption129501:30:27,119 --> 01:30:30,680without having to create a second trustbefore. You can only do it when129601:30:30,800 --> 01:30:34,840you split the estate. So portabilityelection is you know, right now we129701:30:34,920 --> 01:30:39,560have twelve point nine million dollars anexemption per person, but if you don't129801:30:39,560 --> 01:30:44,479elect portability, you lose it.Or back then if whatever that amount was129901:30:44,800 --> 01:30:49,800portability portability. Okay, So withan exemption, every person gets twelve point130001:30:49,880 --> 01:30:54,760nine million dollars, all right,and when the first when somebody passes away,130101:30:55,199 --> 01:31:00,720when the first bout passes, thattwelve point nine is law unless you130201:31:00,800 --> 01:31:09,920elect portability on your seven h sixand by doing that can utilize seven six.130301:31:10,760 --> 01:31:16,199Excuse me. Okay. The sevenH six is the deceased tax returns,130401:31:16,279 --> 01:31:20,520so the estate tax returns I rU S Form seven h six.130501:31:20,520 --> 01:31:25,239Excuse me. Sometimes I feel likeI'm talking to my colleagues when I forget130601:31:25,319 --> 01:31:28,439that, you know, I'm talkingto people who it's the problem. You130701:31:28,479 --> 01:31:31,720guys have written all these laws,so guys like us don't even know what's130801:31:31,720 --> 01:31:35,199going on and have to come toyou. Well, that might, but130901:31:35,560 --> 01:31:39,199that's the thing. That's what aninitial consultation is. That's what a free131001:31:39,239 --> 01:31:42,720consultation is. You come in andI can explain it a little bit better.131101:31:42,880 --> 01:31:45,039I you know, I'm not ona limited you know, five ten131201:31:45,119 --> 01:31:47,479minutes. Here, we can sitdown for thirty minutes to an hour and131301:31:47,520 --> 01:31:53,960I can explain everything in more detail, and something that's a little bit uh131401:31:54,279 --> 01:31:57,960may come down to more of alayman's term good. And we find when131501:31:58,000 --> 01:32:01,600you go through the financial planning processwith Dylan and Todd often that leads to131601:32:01,920 --> 01:32:08,159a visit with Jonathan. And likewith Todd and Dylan, the consultation is131701:32:08,199 --> 01:32:12,600free. There is no charge toget a financial plan from Todd and Dylon.131801:32:12,760 --> 01:32:15,399We must be crazy. We giveaway the financial plan, which leads131901:32:15,399 --> 01:32:21,800into the free estate plan and wellconsultation, I should say, And then132001:32:21,840 --> 01:32:26,119we hope that they do business withus. Yeah, somehow we're doing pretty132101:32:26,159 --> 01:32:28,840well though, I guess we're doing. It's all about building a relationship,132201:32:28,880 --> 01:32:31,640not necessarily just selling something well putwell put, yeah, well put,132301:32:31,880 --> 01:32:36,199and John and being right here inthe office. There are things that happened132401:32:36,279 --> 01:32:42,359throughout the day, uh, inour business that have we bring John in132501:32:42,479 --> 01:32:45,600right right there, And there's thingsthat happen in John's business where he brings132601:32:45,680 --> 01:32:49,720us in right there because you're you'rephysically here in the office. But that132701:32:49,960 --> 01:32:56,439combination of Dylan and Todd and Johnis a great combination. I mean,132801:32:56,640 --> 01:33:00,159they're they're really and when you getdone with that, then you get Dean132901:33:00,239 --> 01:33:02,399and I you know, I mean, it was not the like write Dean,133001:33:02,920 --> 01:33:05,520was not the like. No,it's a team appro I got a133101:33:05,560 --> 01:33:11,199letter the other day too from oneof our clients talking about how like a133201:33:11,319 --> 01:33:15,520team approach that how much they loveit, and and they and the referrals133301:33:15,560 --> 01:33:19,840that they've given us have enjoyed itbecause it's a family atmosphere, true family133401:33:19,880 --> 01:33:25,079atmosphere, they said, with theability to be a team approached and not133501:33:25,199 --> 01:33:29,720a sterile financial institution that's so manyplaces off. Someone asked me the other133601:33:30,039 --> 01:33:32,119took the time to write me aletter and thank us. Someone asked me133701:33:32,159 --> 01:33:35,840the other day, do we dowe really get along? Like it sounds133801:33:35,920 --> 01:33:40,239like we get along. It's not. It sounds like you're all buddies you'd133901:33:40,279 --> 01:33:43,079really get along that well work Well, let's see, one is my son,134001:33:43,239 --> 01:33:45,680the other I coached you. Yeah, we never get invited to your134101:33:45,680 --> 01:33:48,560house, so that that works out. So the answer is, no,134201:33:49,720 --> 01:33:53,680we're not friends. We don't getalong. We really hate We do have134301:33:53,760 --> 01:33:59,159some fun company outings though we wedo get along with the great work environment134401:33:59,640 --> 01:34:02,439every but he is part of theteam. Nobody's trying to one up anybody134501:34:02,439 --> 01:34:06,880else. And uh, I likeit. And John, you've been a134601:34:06,880 --> 01:34:13,720great addition with the back to thetrust. Uh. There are a lot134701:34:13,840 --> 01:34:18,039of moving parts in a trust,sure, and you've trust is one of134801:34:18,079 --> 01:34:21,399those things that I set mine upin eighty three. You put it up,134901:34:21,439 --> 01:34:26,560You get the binder right from theattorney, and you put the binder135001:34:26,640 --> 01:34:29,880in your office and go, Okay, I've done what I need to do.135101:34:30,359 --> 01:34:32,239And then you look at it tenyears later and go what it was135201:34:32,319 --> 01:34:38,399I thinking? You know, andpeople you put as successor trustees are dead135301:34:38,520 --> 01:34:41,520or you don't talk to him.And somebody that was put in charge of135401:34:41,560 --> 01:34:45,239Jeanie, your kids or my child, you know they're they're not my child's135501:34:45,279 --> 01:34:49,159enough almost forty Uh, you know, I don't need him to be monitoring135601:34:49,239 --> 01:34:54,640her assets anymore. All of thosethings need to be looked at, along135701:34:54,640 --> 01:34:58,520with beneficiaries on retirement accounts, thingslike that that we've we've talked about a135801:34:58,520 --> 01:35:00,960lot on the show, but Ithink the living trust is probably one of135901:35:01,000 --> 01:35:06,640those things that's ignored more than almostanything, right, Yeah, and it's136001:35:06,760 --> 01:35:12,439it's great because of the capacity purposes. I have another client that is actually136101:35:12,479 --> 01:35:16,159a listener here that well, wehaven't engaged yet, however, we were136201:35:16,199 --> 01:35:24,119considering doing a beneficiary deed. However, he is looking to give extended family136301:35:24,159 --> 01:35:27,680members some assets, and I thinkthe best way to do it is not136401:35:27,720 --> 01:35:31,640through a beneficiary deed but through atrust because it's a lot easier and it136501:35:31,760 --> 01:35:36,560will spout. It basically will holdthe trustees feet to the fire. There136601:35:36,960 --> 01:35:41,319are so many things you can dowhen it comes down to gifting things and136701:35:41,479 --> 01:35:45,800and people inheriting things. And youhave to be so careful about capital gains.136801:35:45,840 --> 01:35:48,000And we've talked about this before.You can't give your kid your house136901:35:48,079 --> 01:35:54,039now when you're ninety years old,because you know you got this giant capital137001:35:54,079 --> 01:35:59,720gain. It's gonna disappear in arelatively short period of time. No,137101:36:00,359 --> 01:36:04,000Ye, Any last things you wantto say, uh no, Happy Sunday137201:36:04,079 --> 01:36:09,359everybody, and I'll see you nextSunday. All right, listen, another137301:36:09,359 --> 01:36:13,640great show. Thanks everybody for coming, listening and being part of what we137401:36:13,800 --> 01:36:15,840do. We appreciate it. Thisis why we'd like to give back to137501:36:15,920 --> 01:36:18,960you. You need some more help, call us. You got to stay137601:36:18,960 --> 01:36:23,239planning, financial planning, money management. You name it will help you with137701:36:23,279 --> 01:36:27,720it. We'll be back next week. We're your money matters. Be happy,137801:36:28,000 --> 01:36:38,880be healthy, and let's all beprofitable. Let's say it's all a name