Market Shifts: Tech Slows, Small Caps Rise, and Financial Planning Wins

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Good morning everybody. It's Sunday morning, eight o'clock right here on seven ninety

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K and ST It's the Money Matter
Show with Dean Greenberg. We got some

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fun things to talk about. One
of the things we need to talk about

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today and be the theme of the
whole show is what do you doing the

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markets keep going higher? Do you? And how do you take some money

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off the table? How do you
mitigate risk and still make money? One

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of the things are going forward.
The other thing is it's not about market

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timing. It's about things getting over
exaggerated one way or the other. This

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is the Money Matter Show. It
is brought to you by Greenberg Financial Group.

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Greenberg Financier Group is bought the registered
Investment advisor and they broke a dealer.

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They are registered with the SEC.
They have members of FINRA and the

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members of CIPIK. On the show. We talk about different products and different

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strategies. We have our own opinions
or own ideas. Everything we try to

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talk about and discuss has risk.
So understand you risk. Please understand your

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risk. It's very important that you
understand risk and your risk tolerance so you

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can move forward. I know right
now everybody feels great. The market's one

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up again this week, one percent
for the SMP, one point six percent

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for the Dow. The Nazak was
only up point three. Russell though,

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blew the waters off, up six
percent for the week. And finally,

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finally the S and P five hundred
equal rated up three percent for the week.

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So where's up put us for the
year? That was only up six

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percent, The S and P is
up seventeen, the Nazak's up twenty two,

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the Russell's up six percent. So
think about that, this whole week

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is what they made for the whole
year, and equal weighted S and P

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is up six point eight percent.
So that is why you don't try to

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get in and out or market time. You just don't. What you do

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is you set your allocations and every
once in a while you take some money

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off the table when the risk gets
too high. And how do you do

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that, Well, you look around
and you say, okay, my idea

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was, I don't want more than
three percent or five percent in any one

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position, in a stock position,
and that's what you have. So if

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you're up seven, eight, ten
percent, you reduce that stock position back

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down. Maybe you start it with
three and it's at eight, and you

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just reduce it to five. If
it keeps growing great, then you go

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ahead and take off more money.
If it keeps coming down, okay,

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now you buy back in. You
get to your five percent. That gives

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you the automatic of being able to
sell high and buy low, which is

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what you're supposed to do. Everybody
worries about the fear of missing out.

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Everybody worries about I shouldn't have sold
it, and wants so much higher.

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That is good if you're selling something
a part of your position because you made

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money and it went higher, so
be it. Don't get upset about it.

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And I promise you at sometime the
markets will come down, just like

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I promise you that the indexes will
always, at some time in your lifetime,

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will go up and make a new
high. I'm also telling you that

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when you make a new high,
every once in a while, you're going

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to have a drop in the markets. Markets tend to go down three percent,

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five percent, seven even fifteen to
twenty percent. We have a backstop.

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We have the Fed right now until
they lower interest rates. I don't

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believe there's any big moves down more
than maybe three, five or ten percent,

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But if it's in the stocks that
you have that have done so well

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and they fall back down, then
what do you do? And that happened

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on Thursday. The small caps went
up, the mid caps went up,

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the S and P went down,
The S and P went down because they

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are so heavy with the tech stocks
and they all got beat up. So

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if your if your portfolios mostly that, then on Thursday you lost money.

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On Friday made some back. That's
why you take. You don't know where

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the top of me, and if
it started down and continued to go down,

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you don't know where it would come
down. And all I have to

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do is tell you about twenty twenty
two, because in twenty twenty two,

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these tech stacks were doing great.
Amazon, Microsoft, Nvidia, Apple,

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Google, they were flying second part
of the year. They didn't just come

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down, they got crushed. These
stocks were two to three four hundred pounds

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dollars during the pandemic. They came
down to the low one hundreds. N

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Vidio was in the low one hundreds, one fifteen, one twenty somewhere in

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there. They went up to over
one thousand and split ten for one.

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So where they are now one hundred
and twenty five would be about twelve hundred

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and fifty. If you remember,
Apple came all the way down to the

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one thirties or so, nobody wanted
to buy it. Then it came up

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too closer to one and then sat
down and won sixty five one seventy and

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nobody wanted it. And now it's
two hundred and twenty dollars. Amazon got

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down under one hundred, Google got
down into the one tens, and they

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roared back. AI. Artificial intelligence
is what brought them back. Artificial intelligence

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is not going away. It is
going to continue to move forward for the

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next three to five years. We've
been saying this over time. Right now

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that what you're seeing is A is
A is a fundamental change that is going

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to affect the world. It is
no different than when the computer was coming

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up on the rise. It took
three to five seven years for the computer.

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The hardware. Everybody was buying Dell
and IBM and Compact, and those

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stocks were flying well. Eventually they
became a commodity. But what was growing

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after that was the software. Everything
that went in the hip. Cisco was

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doing great. IBM was part of
the software apples. It was having a

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problems because it was hardware into the
nineties, all those stocks, and then

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what happened the big change after that
that changed everything was the smartphone. When

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Apple came up with the smartphone,
and then other people came up with the

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smartphone. Those that were left behind
that weren't part of the smartphone. Everybody

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else that had to go into the
computers that went into the phone. They

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did well and they took off from
there. And now where are we simple?

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Were AI? What is going to
drive AI? What is going to

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make things better? The world would
be better with the right AI. It's

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also going to have their bad actors. We know that there's a lot of

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fraud with articial artificial intelligence, which
means us as humans have to be smarter

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to understand if it looks too good, if it doesn't smell right. Don't

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go down that line, especially with
emails. Don't let yourself get zapped into

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these emails that look great. If
you have a question, you call the

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people. I can't tell you the
type of emails that we get. People

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are asking for money and thinking that
there was a client. We won't do

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it. We call the client,
call the client, Hey, was this

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an email? No, never send
that to you. Well, somebody got

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it to your computer and now they're
sending us emails under your name. It

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happens, but you know what you
deal with it. Be smart, don't

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get scammed. Do not get scammed. There's a lot of scams out there,

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a lot of people that want to
make money the easy way. These

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people are so smart they should just
do it the right way. And if

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they did it the right way,
guess what, it would take longer,

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but they would make money at it. The world where we are, what's

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going on. That's the theme.
But right now, I see the shift.

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Okay, it's not a one day
shift. I see a shift.

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And we've been saying this, we've
been buying into it. Mid Cap small

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cap stocks are going to do as
well, if not better than the S

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and P and all as we go
forward to maybe the next couple of years.

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So that doesn't mean you sell all
your big cap stocks, and it

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doesn't mean you buy small cap stocks
and mid cap stocks. What it means

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is you reduce your position in one
side if it's over invested, and you

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buy into the indexes. It's very
difficult to find small cats MidCap stocks that

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you can buy and hold and think
they're going to be great. If you

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buy the indexes and let the ones
come out of say small cat to midcaptain

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to starting to become large cap,
that's when you buy them. There is

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always time to buy those that are
going to be great stocks. You were

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able to buy Apple ten years ago, five years ago, even able to

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buy Apple two years ago, and
you would have made a lot of money

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out of it. Maybe you didn't
buy it at one dollar and watch it

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go all the way up to to
something. Same thing with Navidia. Okay,

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you were able to buy it at
one hundred. You didn't buy it

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at fifteen. Maybe it did,
who knows, But all of a sudden,

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instead of waiting from twenty fifteen to
twenty twenty two, you're able to

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buy it in twenty twenty two and
still make a lot of money with more

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quality and companies out there. But
in the meantime, that doesn't mean you

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can't buy ETF and electronic traded funds. Those are baskets of the stocks that

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you don't have the or the or. Like if you have the mid cap

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one four hundred, they will have
all the stocks in there, just like

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the S and P five hundred does, and that index sayes, Well,

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it's great, but your allocations are
spread around, your risk is spread around.

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And that's why you can buy a
lot of stocks for less money because

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it's in a basket. Same thing
with small caps. Very difficult to pick

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out which ones are going to be
the next Apple or the next Microsoft.

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I know, you can buy one
hundred of these newsletters. Sometimes they're right.

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Most of the time they're wrong.
All they're doing is picking like everyone

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else trying to do the work.
Why not just buy the indexes and you

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know which ones, if the good
stocks, they will be the ones moving

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the index. And if that's the
case, and you can take the top

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ten, look out of them and
figure out if you want it to take

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more risk and buy those at that
time. Most people don't want that much

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risk. Most people want to be
able to participate when the markets are going

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up and not get killed when the
markets are going down. The one thing

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we've always said, and I'll continue
to say it, is that markets by

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buying indexes one thing you know eventually
you'll always watch it make a new high.

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It just happens because if you take
the if you just take the Dow

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Jones, they got thirty stocks right. When the companies aren't doing well,

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they take them out, and when
the companies are doing well, they put

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them back in new ones, which
means the index by nature will always have

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the best stocks in it that are
doing well, the best companies that are

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doing well, producing, making money, growing, and then guess what it

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will make the index go to new
his and you don't have to worry about

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the ones that didn't do well.
Like Walgreens is out of the Dow Jones.

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It was put in a few years
ago, out of it. You

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don't have to worry about it if
you didn't if you don't own it individually.

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But the Dow Jones will go up
and being a new high without Walgreens

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because they put Amazon in or some
other stock that they put in to replace

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it. But they have other companies
that they put in that are doing well.

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Now they're thinking about making the video
part of it. Doesn't mean it

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does anything because eventually the video will
become a commodity company somewhere down the road

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when they are just like Cisco did, unless they start branching out into other

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areas. The reason Apple and Microsoft
have been so successful for so many years

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is one has products that everybody wants, but it's the software inside of it.

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Apple makes people's lives easier. Microsoft
makes people's lives easier. Apple came

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out with the cool hardware of being
able to have phones and watches and wearables

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and all that makes and makes it
the product you want to buy. Of

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hardware. Microsoft is tried, but
at the end of the day, it's

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what they do on the inside that
makes it great. They're all doing AI,

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everything from Amazon to Google to Apple, and whether they need to be

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AI, they need the video chips
and that's why the video is doing so

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well. So if the markets seemed
confusing to you, they shouldn't, but

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they do, and they're confusing to
me sometimes too, and they can confusing

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to me. When you have inflation
numbers that come out and the Consumer Price

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Index, the CPI comes out on
Thursday and actually is better than expected.

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It shows inflation's coming down. Markets
go up a little bit and then they

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get hurt the rest of the day. The S and P goes down,

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but the small caps go up.
On Friday, we come in PPI number,

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the Producer Price Index, which leads
to the CPI index, is much

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higher than expected, and their revised
number is much higher than expected, and

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the markets went up. Now it's
confusing because at the end of the day,

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are they going to raise interurtrate's or
lower interest rates that everyone keeps saying

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in September, Well, with that
data, I don't see how they lower

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it in September. No vomit December. We've been playing this game for a

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while. As an investor, I
like them playing the game, keep pushing

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it down the road because I know
that every time the markets get hit,

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they'll come up with the idea they're
gonna lower interestrates, and everyone thinks that's

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the end all to end dolls and
they buy the market because it's gonna help.

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Well, they got smart this time
and they started buying into the small

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cap and MidCap thinking that interest rates
eventually will come down. They will come

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down eventually, But if they're gonna
come down is because our economy is weakening.

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I don't know if I even trust
all the numbers out there that are

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now see we see unemployment going up
a little bit more, but the only

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jobs that are really being made are
government jobs. Seventy eight thousand jobs were

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done in the government out of the
two hundred thousand that's a lot of jobs.

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I don't want the government getting bigger. I want the government getting smaller.

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But there are people out there that
think a big government as a way

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to go. Why because they get
handouts to everything, every single thing.

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There are people out there that believe
and support Buiden going ahead and giving breaks

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to people that have their their school
loans. Let's reduce the school loans,

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let's get rid of their school loans. To me, that is the wrong

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message. It goes along with all
the illegal immigrants that come over that we

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start continue to give free stuff,
to credit cards, to money each month.

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Are the idea of debit cards?
Not credit cards, debit cards,

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housing, food, education, well, without even knowing what they could do

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to benefit us. I'm at the
point now after listening to this whole this

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uh this week about NATO and all
the people there, and everyone's just worried

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about is he is by going to
be able to be good with NATO with

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their leaders. We know he's not. They're trying to build it up he

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is, But I'm more concerned about
how they are going ahead and discussing how

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great it is that these other countries
have join NATO, like Finland, Okay,

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nobody asks a question, are they
paying and how much they paying?

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And is it the same as everybody
else as a percentage of their GDP grow

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some mess of product? And if
so, have we gotten a check?

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I care about these things because what
they have done is they blew it totally

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out of proportion. With Trump saying
that he doesn't care about NATO and he

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wants to break up NATO and tells
Putin to do whatever the hell he wants,

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this is what bothers me about,
more politics than anything. Nobody wants

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to tell the truth or understand what
people say when they say it. The

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truth of the matter is, why
are we using our tax dollars to go

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ahead and support NATO? If these
other countries who were defending aren't paying,

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and if we don't make them pay, or if we don't threaten them that

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were not there, which of course
we would be, they don't pay,

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then what happens? They get weakened. So these socialistic countries, and trust

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me when I tell you Finland socialistic, France is socialistic. They're all socialistic.

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Company are countries okay where they believe
that otherbody else should pay for everybody

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else, and their hand is out
France just went left. That means now

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they can retire. They all want
to be able to have mandatory that they

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can all retire at sixty with a
great pension and the pensions never get hurt.

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Who's gonna pay for that? Who
does pay for that? They all

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want more days off, They all
want to work less. We all want

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that and get paid more. Who
doesn't want that. The world doesn't work

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that way, but they think it
does. So they don't think they have

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to pay natal But you know it's
amazing Trump got them to pay because the

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real fear of needing. Everybody comes
together and makes them pay. I am

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tired of paying more taxes and they
keep telling us we got to pay more

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taxes because we're making more our fair
share in taxes so we can give money

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away to the world. Well,
they don't have to pay. Why don't

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we have Is there any contract there? We're giving money to Ukraine. How

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are we going to get money back
from Ukraine. How are the people of

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the United States who are giving money
to their from their taxes to support Ukraine

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and then support Israel and to support
all these other countries around the world.

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How do we get that money back? Because all you keep doing is taking

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money from our pockets. And I'm
not saying I'm a nationalist and it's just

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us. I do believe we come
first. I do believe we shut off

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our borders so our tax money doesn't
have to go to people that don't even

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really care about America, who don't
think America is great. Our approval rating

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around the world has gone down.
We look like a bunch of idiots.

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Guess what. Don't let them in. Approval ratings will go through the roof.

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They all want to come here,
but they all want to crap on

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us. They all want to say
how bad it is. But yet they

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have their hands out. I want
more, Give me food, give me

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this, give me that. How
about changing the mentality of our young people

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to where you work, you get, you earn what you get. That's

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what America was built on, and
we've totally forgot that. People will always

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help others when they really need it. America will help others when they really

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need it. But we don't want
to be used. We don't want to

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be giving away our tax dollars.
You telling us we got to pay more

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taxes, and we do not know
how other people pay. I don't want

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to have to be able to defend
all these other countries that are in Europe

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next to Russia, where any type
of fights can happen, And guess what

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they don't pay you also, granted, I don't mind paying more, we

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have a higher GDP if we all
pay the same percentage, which then brings

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me back to taxes, our fair
share. We all pay the same towards

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NATO and our fair share. Of
course our number is bigger. But then

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when it comes to taxes, they
don't want to go to They don't want

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to pay the same percentage. Oh, that wouldn't be fair, That wouldn't

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be fair to the poor people.
A flat tax is the fairest thing.

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That's why they're doing it with NATO. If we put hundreds of billions dollars

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in the NATO and somebody else puts
ten billion dollars in, it's their percentage

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of their g d P, same
percentage, one and a half percent,

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whatever it is. We don't So
why don't we do the same thing with

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taxes? White doesn't he talk the
same way about taxes? Everybody put up

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the same amount of taxes ten percent, twelve percent, fifteen percent, and

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put it on a usable tax and
national sales or sales tax. You want

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to go buy a yacht for fifty
million dollars, you're gonna pay a hell

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of a lot more in tax than
someone that's gonna go ahead and and not

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buy a boat. If you want
filet moon and somebody else that wants to

279
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buy chicken, you're gonna pay more
for the fole monion and you're gonna pay

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more taxes on it. What's wrong
with that? That way, you're going

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to create more tax revenue through the
fact that people are using spending on what

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they have. When you go the
other way, all you do is complain

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about the people that don't pay their
fair share and billionaires that pay eight percent

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or ten percent in tax. It's
because that is the tax law. And

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every time someone brings us up,
I remind them only our Congress can change

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that. If they change it,
it changes. Then they use the excuse,

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we can't do that that would ruin
a real estate market. Then if

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it's going to ruin a real estate
market, then shut up and stop talking

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about how the rich don't pay their
fair share, or people that have built

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up their companies and they spare and
they've made billions and hundreds of billions of

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dollars because they own stock. That's
long term gains. And when they sell

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it off, all they have to
pay is long term gains. They took

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the risk at the beginning. They
put their blood, sweat, and tears

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into it. And you're only talking
about eighteen hundred billionaires that live in the

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entire United States, and you want
to put some type of wealth tax on

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it. You want to give disincentive
to people that have been successful or families

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over time that have been successful in
doing things. That is so wrong.

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That's jealousy. Turn the culture around
to where you want people to learn how

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to be successful, how to earn
it, how to play hard, work

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hard, get the opportunities and take
advantage, show up to work, stop

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complaining, do what needs to be
done. Take risk on your own.

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People that tell us successful take risk
on their own. And all we want

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00:23:10.519 --> 00:23:12.319
to do is say, hey,
don't worry about it. Contracts don't mean

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00:23:12.359 --> 00:23:18.119
anything anymore. Don't worry about it. You got a contract to pay back

305
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for your student loan, don't worry
about it. You have a mortgage,

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00:23:21.559 --> 00:23:23.359
you can't pay it right now,
Hey, don't worry about it. We're

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00:23:23.400 --> 00:23:27.440
not. We'll figure it out.
How about is your ways of doing things

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00:23:27.799 --> 00:23:36.000
that have changed the problem? Okay? Small businesses is the crux of our

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nation. And they are the ones
that take the risk, and those are

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the ones that become very successful,
and they are the ones that get hurt

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the most if we change the We'll
let the Trump tax code expire and do

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00:23:49.480 --> 00:23:53.599
not still keep in that twenty percent
off of small businesses. And that's the

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00:23:53.880 --> 00:23:57.920
LLCs and thees corps, the ones
that get k ones. We are going

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00:23:59.000 --> 00:24:06.559
to be causing a bad, bad
precedent on charging small companies the burden of

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00:24:06.599 --> 00:24:10.680
the taxes that go on. Where
do they go? They will stop hiring,

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00:24:10.839 --> 00:24:15.039
they'll have to do different things,
and that happens, all right,

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so the markets can launch higher,
but be careful. The rest of the

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00:24:18.720 --> 00:24:22.720
show, we're going to talk about
how you be careful. We'll be right

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00:24:22.720 --> 00:24:26.720
back. It's Dean Greenberg and this
is the Money Matter Show. Welcome back,

320
00:24:26.759 --> 00:24:29.920
everybody, It's the Money Matter Show. We got Dylan, Todd and

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00:24:30.000 --> 00:24:37.559
Sebastian today. Davis back east for
a was it he is seeing Oh wait,

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00:24:37.599 --> 00:24:40.759
no, no it's not, No, it's not he's seeing his relatives

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00:24:40.799 --> 00:24:44.519
for probably the last time. He
says, oh, yes, Linda's family

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00:24:44.599 --> 00:24:48.119
is I think. Okay, that's
good. Well, I know, I

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know, I know he wasn't excited
about going, but he had to go.

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That's all I remember to Kentucky.
All right. So markets they keep

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00:24:56.119 --> 00:25:00.799
moving higher, they keep making new
hives. Kind of a weird thing.

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00:25:00.839 --> 00:25:07.400
On Thursday you had the SMP finally
moved down, and the and the Russell

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00:25:07.440 --> 00:25:11.240
two thousand, the small companies,
mid cap companies, they kind of soared

330
00:25:14.359 --> 00:25:17.599
it. You know it. Don't
get too excited. It's like going into

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00:25:17.599 --> 00:25:22.680
a football game and you know the
team. The team scores on the first

332
00:25:22.720 --> 00:25:26.359
series, in the second series,
and you think that's how the game is

333
00:25:26.400 --> 00:25:27.200
going to go, and next thing
you know, they're losing the game in

334
00:25:27.240 --> 00:25:33.279
the fourth period. Okay, but
we've been saying start building a position in

335
00:25:33.359 --> 00:25:37.599
dollar costs average. We've been saying
this now for probably the last month or

336
00:25:37.599 --> 00:25:41.000
so, into the small caps,
into the mid caps. It doesn't mean

337
00:25:41.039 --> 00:25:42.920
you have to have a full position
now, but making sure you have a

338
00:25:42.960 --> 00:25:47.720
position so you can keep adding it
to it over the next six months.

339
00:25:48.200 --> 00:25:49.279
Yeah, it's like you can start
a position too. I mean, just

340
00:25:49.279 --> 00:25:53.480
because small cap went up six percent
last week. Doesn't mean you can't start

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00:25:53.519 --> 00:25:56.440
getting your feet wet in there's now
you don't have to go all in.

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00:25:56.440 --> 00:25:57.960
If you want a five percent position, you don't have to put all five

343
00:25:57.960 --> 00:26:02.559
percent in next week. But maybe
if you want to just start and attached

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00:26:02.559 --> 00:26:04.920
to it more, you put one
percent in setting started dabbling into it.

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00:26:04.960 --> 00:26:08.160
Todd, would you say this was
the best day in the small caps since

346
00:26:08.200 --> 00:26:14.319
what two thousand and one? Thursday's
trading day was Russell's two thousand's best trading

347
00:26:14.359 --> 00:26:18.359
day against the QQQ since two thousand
and one, and that really is showing

348
00:26:18.359 --> 00:26:22.880
you that the small cap stocks in
the two thousand, the Russell two thousand

349
00:26:22.920 --> 00:26:27.440
have done really well in comparison against
the top one hundred Nasdaq stocks. Now

350
00:26:27.480 --> 00:26:30.839
that was only for one day,
and a lot of the times this rotation.

351
00:26:32.000 --> 00:26:34.799
Every day we've seen this happen,
it's just reversed and it did kind

352
00:26:34.839 --> 00:26:40.079
of do just that on Friday as
well. IWM was also up on Friday,

353
00:26:40.119 --> 00:26:41.680
but the rest of the market was
up on Friday as well, so

354
00:26:41.960 --> 00:26:47.200
a continuation of the trend. We
had one day break of just the MAGNIFICENTCE

355
00:26:47.200 --> 00:26:52.119
seven taking over, so we want
to continue to see this trend continue,

356
00:26:52.160 --> 00:26:55.880
because otherwise it's just top ten stocks
driving the market. Yeah, there's four

357
00:26:55.960 --> 00:26:57.599
hundred and ninety other stocks in the
SMP five hundred two. And I mean,

358
00:26:57.640 --> 00:27:00.720
as we saw last week, the
SMP one hundred was up one percent

359
00:27:02.319 --> 00:27:03.880
and that equal weight to SMP was
up three percent. So you're seeing a

360
00:27:03.920 --> 00:27:07.839
lot of the other four hundred and
ninety companies that were doing well last week,

361
00:27:07.079 --> 00:27:10.880
not necessarily just in video, which
is good to see, which makes

362
00:27:10.880 --> 00:27:14.000
it feel like it if it can
continue, it makes it feel like a

363
00:27:14.000 --> 00:27:18.440
stronger market rather than an easy one
to turn over if those seven stocks just

364
00:27:18.680 --> 00:27:22.279
decide to sell out. The one
thing that a lot of people have had

365
00:27:22.319 --> 00:27:26.680
fears about is the Nasdaq being overvalued
some of these high flyers that have come

366
00:27:26.720 --> 00:27:30.079
about in the videos the apples.
The real difference between this era and the

367
00:27:30.119 --> 00:27:34.200
dot com bubble is value is actual
earnings that are coming in the door.

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00:27:34.319 --> 00:27:41.880
So if the comparison between the valuations
and actual earnings, and if you look

369
00:27:41.920 --> 00:27:45.200
at two thousand and one compared to
right now, it's actually we have plenty

370
00:27:45.240 --> 00:27:48.440
of earnings that account for where these
valuations should be. So it's not pieing

371
00:27:48.480 --> 00:27:52.000
the sky stuff. There is earnings
that's backing up. And speaking of earnings,

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00:27:52.000 --> 00:27:56.880
we just started the new earning season
with banks starting here on Friday and

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that will continue into next week.
Yeah, I mean, want to compare

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00:28:00.599 --> 00:28:03.240
something to the dot com bubb of
two thousand, that's more like twenty twenty,

375
00:28:03.720 --> 00:28:08.359
when all those companies that weren't making
money had nowhere needs the spects and

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00:28:08.440 --> 00:28:11.799
he's fact that when public the day
it went up one hundred percent, if

377
00:28:11.839 --> 00:28:15.000
not more, and for no reason, and it was for no reason for

378
00:28:15.039 --> 00:28:19.960
months and then that bubble burst.
That's more similar recent similar comparison to two

379
00:28:19.960 --> 00:28:22.799
thousand and one, rather than what's
going on right now. These are good

380
00:28:22.799 --> 00:28:26.599
companies, it's just very concentrated,
so it makes it's starting to make people

381
00:28:26.640 --> 00:28:33.000
nervous because how long can a concentration
like that last without that without even like

382
00:28:33.039 --> 00:28:37.240
if they just dropped ten percent,
which isn't huge in sense of a bubble,

383
00:28:37.519 --> 00:28:38.680
how much longer can it last if
it drops ten percent? Is that

384
00:28:38.680 --> 00:28:42.000
going to freak more people out and
then start selling take profits? And that's

385
00:28:42.000 --> 00:28:45.000
when you can see the tumble down
the Nasdaq and the S and P five

386
00:28:45.119 --> 00:28:48.119
hundred hit an all time high.
The Rustle of two thousand also hit an

387
00:28:48.119 --> 00:28:51.920
all time high. The Dow Jones
did not. In the equal weight it

388
00:28:51.960 --> 00:28:56.039
is just right under its all time
high. It's interesting that the doll Jones

389
00:28:56.039 --> 00:29:00.519
still hasn't hit it's all time high, as it's been lagging again. That's

390
00:29:00.720 --> 00:29:03.640
what we've seen with when you're just
concentrated in thirty companies, and that's what

391
00:29:03.640 --> 00:29:07.160
the dial Jones is compared to a
Nasdaq or the S and B five hundred,

392
00:29:07.519 --> 00:29:11.759
you just it makes it way harder
on your portfolio or index to be

393
00:29:11.799 --> 00:29:15.039
able to perform and track against these
other ones. So that's what we saw

394
00:29:15.079 --> 00:29:18.200
this week. And also with oil, it was down a dollar went to

395
00:29:18.240 --> 00:29:22.119
eighty two dollars a barrel from eighty
three. Gold was up about twenty five

396
00:29:22.200 --> 00:29:27.000
dollars to twenty four to ten an
ounce. The dollar had an interesting week

397
00:29:27.359 --> 00:29:33.279
on the back of interest rates.
We had the CPI inflation report on Thursday,

398
00:29:33.319 --> 00:29:36.920
which came in much lower than expectations. It actually came in negative,

399
00:29:36.960 --> 00:29:40.680
so we had a negative point one
month over month on the inflation rating,

400
00:29:40.720 --> 00:29:45.880
which is obviously disinflation deflation, so
the opposite of inflation. That's the first

401
00:29:45.880 --> 00:29:49.720
time we've seen that since the pandemic
era, and that led to interest rates

402
00:29:49.720 --> 00:29:53.240
falling drastically. The mortgage rate is
now at six point eight nine percent of

403
00:29:53.319 --> 00:29:57.559
the thirty year FREDDYMAC, and with
the interest rates moving down, the ten

404
00:29:57.680 --> 00:30:03.559
year is now at four point So
across the board, the two year ten

405
00:30:03.640 --> 00:30:07.960
year spread has still kind of been
where it's at. It's still inverted.

406
00:30:07.079 --> 00:30:12.240
There's still potential signs of a recession, and with this first deflation rating on

407
00:30:12.279 --> 00:30:15.920
the CPI, that is kind of
the first sign of a recession coming.

408
00:30:17.720 --> 00:30:21.240
So will it continue, that's the
question. Now. There's a ninety three

409
00:30:21.279 --> 00:30:25.720
percent chance that the Fed will cut
rates for the first time in September's meeting.

410
00:30:26.039 --> 00:30:29.160
There's only a five percent chance in
July, and almost a ninety six

411
00:30:29.200 --> 00:30:32.759
percent chance for the December meeting.
Yeah, and a lot of the time

412
00:30:33.039 --> 00:30:36.240
when they announce it now, it
gets priced in now because the market is

413
00:30:36.279 --> 00:30:41.000
a leading indicator. So if they
do end up actually cutting it in December,

414
00:30:41.240 --> 00:30:44.160
you're not necessarily going to see a
huge market run up because it's already

415
00:30:44.160 --> 00:30:48.279
been priced in. Exactly every market
is trying to think about six months into

416
00:30:48.640 --> 00:30:51.839
the future, and right now,
a lot of people are going to start

417
00:30:51.880 --> 00:30:55.319
thinking about the election. We've talked
about how July is seasonally a really good

418
00:30:55.359 --> 00:30:59.359
year, especially in an election year. As we come through the fruition of

419
00:30:59.440 --> 00:31:02.960
July, that's when we will kind
of start to look to pair back some

420
00:31:03.000 --> 00:31:06.720
of our risk side and be a
little more cautious heading into the election where

421
00:31:06.720 --> 00:31:10.200
we expect some volatility. I mean, there's a good chance though, with

422
00:31:10.279 --> 00:31:14.759
the anticipation of interest rates coming down, that the markets can broaden out,

423
00:31:15.000 --> 00:31:18.960
keep the indexes moving, and we
can go up another double digits from here

424
00:31:19.119 --> 00:31:22.640
between the end of the year,
but there will be a decline in between

425
00:31:22.640 --> 00:31:26.759
now and the end of the year. That's when you jump back on and

426
00:31:26.799 --> 00:31:32.440
say I'm going to ride this.
Let's talk about this whole thing with interest

427
00:31:32.519 --> 00:31:37.200
rates. Why the effect of them
helps a small cap and the MidCap more.

428
00:31:38.200 --> 00:31:42.880
Well, the easy way to put
it is stocks are valued higher when

429
00:31:42.960 --> 00:31:48.960
interest rates are lower because their forward
looking earnings are more valuable because the discount

430
00:31:48.039 --> 00:31:52.720
rate you're discounting on against is lower. So it's just a simple number of

431
00:31:52.880 --> 00:31:56.440
interest rates lower, a stock valuation
can be higher. Yeah, but there's

432
00:31:56.480 --> 00:32:01.039
also another reason. The borrowing weight
is lower. Okay, companies are always

433
00:32:01.079 --> 00:32:06.839
borrowing, are always most of the
most of the borrowing that they do is

434
00:32:06.960 --> 00:32:10.319
variable rates go up and down.
Obviously they do short term lending, and

435
00:32:10.359 --> 00:32:14.759
that lending comes due, then they
have to go and get high lending,

436
00:32:14.799 --> 00:32:16.680
and it goes the opposite way.
So the less they have to pay on

437
00:32:16.759 --> 00:32:22.000
interest, the more they are able
to go forward and also more flexible than

438
00:32:22.359 --> 00:32:28.079
big companies when things are changing.
So that's a big reason why tech.

439
00:32:28.720 --> 00:32:31.200
When you see interest rates drop,
tech companies tend to go up because they're

440
00:32:31.240 --> 00:32:36.559
borrowing more often because they're more in
the growth stages of the cycle, so

441
00:32:36.559 --> 00:32:37.880
they're gonna try and borrow more money
makes it cheaper for them, they want

442
00:32:37.880 --> 00:32:42.200
to go up, and that's why
you see the NASDAC and the tech companies

443
00:32:42.279 --> 00:32:45.319
jump when interest rates drop. So
if interet rates are gonna come down,

444
00:32:45.799 --> 00:32:51.799
obviously money market's gonna come down,
and those short term bonds that are gonna

445
00:32:51.839 --> 00:32:53.519
come due are not gonna be able
to get the same type of interest that

446
00:32:53.559 --> 00:32:59.680
they're getting now. So what's a
game plan going forward from here over the

447
00:32:59.720 --> 00:33:02.039
next five years, How would you
look at it to be able to take

448
00:33:02.079 --> 00:33:07.039
advantage of in your trates coming down
and be able to lock into age today.

449
00:33:07.119 --> 00:33:09.039
Yeah, I mean there's different ideas, and it depends on what route

450
00:33:09.079 --> 00:33:12.680
you want to take. There's always
what we've talked about before is the MIGO,

451
00:33:12.680 --> 00:33:15.440
which is the multi year guaranteed annuity
you can lock in. I mean

452
00:33:15.440 --> 00:33:20.000
that fluctuates best paying high five percents
right now. You can lock that in

453
00:33:20.000 --> 00:33:22.880
for five years. Obviously you lock
it up, that's something you got to

454
00:33:22.920 --> 00:33:24.440
know. You can take out max
ten percent a year. But the idea

455
00:33:24.440 --> 00:33:28.359
with that is that you're putting in
a way as kind of like a CD

456
00:33:28.480 --> 00:33:30.160
back by an insurance company paying a
little higher. So if you want to

457
00:33:30.160 --> 00:33:32.240
lock that in, that's something to
think about for five years. Well,

458
00:33:32.279 --> 00:33:36.240
the other advantage there there's no taxes
too, exactly, it's the third.

459
00:33:36.559 --> 00:33:38.480
I would also point out that with
interest rates going lower, there's a lot

460
00:33:38.480 --> 00:33:43.079
of equity industries that we could look
into at that time. For example,

461
00:33:43.079 --> 00:33:46.359
we've already entertained the solar play.
Solar becomes more attractive when the strates are

462
00:33:46.359 --> 00:33:50.759
lower. We know evs become more
attractive when interstrates are lower because of the

463
00:33:50.839 --> 00:33:52.480
financing side of things, right,
But I was talking more of the fixed

464
00:33:52.559 --> 00:33:55.599
income part of their portfolio. That's
why I want to concentrate on right now,

465
00:33:55.759 --> 00:33:59.519
because a lot of people have fixing
cup and they want to stay with

466
00:33:59.559 --> 00:34:04.279
the fixed fixed income all right,
So simply, what was one of the

467
00:34:04.319 --> 00:34:07.119
things that we did when interst rates
were coming down. We got out of

468
00:34:07.519 --> 00:34:10.400
we got out of the long term
bond fund bond funds, and we got

469
00:34:10.679 --> 00:34:14.400
short term bond funds. Well,
we first went to short term bond funds

470
00:34:14.440 --> 00:34:16.960
and then kept coming down, we
got out of those and started buying individual

471
00:34:17.039 --> 00:34:21.480
bonds. Treasuries were the safest and
those started paying a lot of interest.

472
00:34:21.519 --> 00:34:27.400
So we started buying treasuries, started
buying investment grade corporate income corporate bonds individually,

473
00:34:27.800 --> 00:34:30.639
so then at the maturity date,
you get your principle back with whatever

474
00:34:30.679 --> 00:34:32.840
interest that's paying, so rather than
a bond fund where you could lose principle.

475
00:34:32.840 --> 00:34:36.599
Because if insurt rates kept going up
like they did as we saw in

476
00:34:36.599 --> 00:34:39.039
twenty two as well, that's why
the bond funds went down. The thing

477
00:34:39.079 --> 00:34:42.320
you're thinking about though, I mean, now, if you think instrants are

478
00:34:42.320 --> 00:34:45.239
coming down, bond funds could be
a little more attractive because insustrants go down

479
00:34:45.280 --> 00:34:49.760
bond funds become more valuable, right, so what what what didn't work before

480
00:34:50.119 --> 00:34:53.199
in twenty two and twenty three,
yep, will work now in going back.

481
00:34:53.239 --> 00:34:58.199
And it's obviously you want to be
with someone that understands these things and

482
00:34:58.320 --> 00:35:00.599
able to capture that. And that's
where right now, what we're doing is

483
00:35:00.719 --> 00:35:05.400
we're doing a bond ladder out five
years. We're going ahead and rolling them,

484
00:35:05.599 --> 00:35:08.480
but we're also putting some money into
the bond funds that are out longer

485
00:35:08.639 --> 00:35:13.320
that if IGIT rates go down,
they're gonna appreciate. Offset what you'll miss

486
00:35:13.360 --> 00:35:15.519
on the other side, gain back
some of the losses that you had before,

487
00:35:15.800 --> 00:35:21.119
and put yourself in a very nice
fixed income position. That's what you're

488
00:35:21.159 --> 00:35:23.280
looking to try to do. Figure, if you don't know what you're doing,

489
00:35:23.519 --> 00:35:28.159
if you haven't heard this, if
it doesn't matter, if someone hasn't

490
00:35:28.159 --> 00:35:30.639
presented this to you, then you
need to come and see us because this

491
00:35:30.760 --> 00:35:35.079
is your fixed income party of portfolio. We're gonna come back. We're going

492
00:35:35.159 --> 00:35:37.599
to talk about your equity and your
wrist side of the portfolio and what to

493
00:35:37.639 --> 00:35:40.800
do in the type of situation we
are now. It's the money about of

494
00:35:40.880 --> 00:35:45.960
show with Dean Greenberg and the rest
of the colleagues here. We'll be right

495
00:35:45.000 --> 00:35:50.599
back. Welcome back, everybody.
It's the money about the show. We

496
00:35:50.679 --> 00:35:53.519
got Sebastian, Dylan, Todd and
myself. Dave's had to go away for

497
00:35:53.559 --> 00:35:58.840
the weekend and hopefully he's enjoying himself, but you know he misses you and

498
00:35:58.880 --> 00:36:01.880
he misses being here. Hey.
So we were talking about markets and and

499
00:36:01.960 --> 00:36:07.599
want to do one of the things
I want to really bring up and distinguish

500
00:36:07.880 --> 00:36:10.599
between what we do and others.
We don't sit there and just say don't

501
00:36:10.599 --> 00:36:14.320
worry about it. When the markets
go down, they'll come back. And

502
00:36:14.360 --> 00:36:16.639
we certainly don't sit there when the
markets just keep going higher. Don't worry

503
00:36:16.679 --> 00:36:22.000
about it. Markets go up and
down, enjoy the ride. We understand

504
00:36:22.039 --> 00:36:28.159
the markets fixed income, We understand
the markets from the from the stock portfolio.

505
00:36:28.480 --> 00:36:31.119
We try to do our best that
helps you. That's why we are

506
00:36:31.559 --> 00:36:37.800
fiduciaries that work on behalf of our
clients. And like all these other people

507
00:36:37.840 --> 00:36:40.599
say, but they don't explain it
exactly. The way we make money is

508
00:36:40.639 --> 00:36:45.199
on a fee based business. When
you do better, our fees go up.

509
00:36:45.440 --> 00:36:47.480
We do better. When you go
down, our fees go down,

510
00:36:47.800 --> 00:36:52.880
and even I'm not talking about the
percentage. I'm just talking about the amount

511
00:36:52.920 --> 00:36:55.280
that goes up and down. And
there's all these people make it sound like,

512
00:36:57.159 --> 00:36:59.719
oh, they when the markets go
down, they don't make money.

513
00:36:59.719 --> 00:37:04.000
That's not true. We have to
make money. Everyone has to make money.

514
00:37:04.199 --> 00:37:06.639
It's a base. So just look
at it this way. You got

515
00:37:06.639 --> 00:37:12.519
five hundred thousand dollars and you're one
percent. How much is that if we

516
00:37:12.599 --> 00:37:16.800
charge one percent, fifty thousan dollars. Okay, if the market goes to

517
00:37:16.880 --> 00:37:22.920
four hundred thousand, it's only four
thousand dollars. And that's how you figure

518
00:37:22.960 --> 00:37:25.840
out up and down it because it's
a six hundred thousand, it's six thousand.

519
00:37:27.119 --> 00:37:30.199
You make a hundred, we make
a thousand more. Yeah, exactly,

520
00:37:30.239 --> 00:37:32.960
So in a sense it stays proportional. Yes, so we're moving up

521
00:37:32.960 --> 00:37:36.599
and down with you. So when
the markets are bad, we're down there

522
00:37:36.639 --> 00:37:39.400
with you. Our whole goal is
to grow accounts with you. We will

523
00:37:39.400 --> 00:37:44.000
not sit there and do nothing.
We don't believe in that. We're also

524
00:37:44.079 --> 00:37:47.639
not going to sell everything and buy
everything. It's allocation process. It's understanding

525
00:37:47.679 --> 00:37:52.840
fixed income, it's understanding inequity.
It's understanding when markets go higher, how

526
00:37:52.840 --> 00:37:55.440
to mitigate risk when markets go lower. Not being afraid to buy, and

527
00:37:55.480 --> 00:37:59.800
with being an independent investment firm,
we have the ability to go into a

528
00:38:00.159 --> 00:38:02.920
different products to mitigate risks, to
try and get a little extra acceleration on

529
00:38:02.960 --> 00:38:07.559
the upside if we think markets a
bottom, different tools, different outlets to

530
00:38:07.800 --> 00:38:12.320
work. We do are not confined
by a certain amount of funds because we

531
00:38:12.360 --> 00:38:15.719
worked for a big wirehouse. So
it's nice that we can check out everything

532
00:38:15.760 --> 00:38:19.599
that's going on through the market and
see what best benefits our clients. A

533
00:38:19.599 --> 00:38:22.760
couple stocks that pointed out to me
on the interest rates play that really benefited

534
00:38:22.760 --> 00:38:27.760
one was ITB. You can also
look at XHB. It's the home builders

535
00:38:28.039 --> 00:38:32.280
construction ETF. The I shares ETF
was up eleven percent this week, eleven

536
00:38:32.280 --> 00:38:37.199
point three percent this week alone.
Really had a huge day, up just

537
00:38:37.679 --> 00:38:40.280
seven percent a loan on Thursday off
the back of that lowes CPI inflation number.

538
00:38:40.360 --> 00:38:45.239
So obviously housing would play really well
with lower interest rates. Another ETF

539
00:38:45.280 --> 00:38:51.360
that had a really big pop was
XBI, the biotech ETF. They saw

540
00:38:51.440 --> 00:38:54.440
a big pop on the back of
the lower interest rates, and so there

541
00:38:54.480 --> 00:38:58.880
are a lot of different equity sides, and like I said before, the

542
00:38:58.920 --> 00:39:01.960
solar side of things, they would
benefit as well as ev side would benefit.

543
00:39:02.000 --> 00:39:08.119
So anything that would be dependent on
retail going out and getting a loan

544
00:39:08.320 --> 00:39:13.599
to buy that product, obviously lower
interest rates benefit really well for those And

545
00:39:13.679 --> 00:39:15.760
ETF is a good way to get
into this sector too. Rather than trying

546
00:39:15.760 --> 00:39:21.679
to find one company within say biotech, you can buy the XBI the Biotech

547
00:39:21.679 --> 00:39:24.119
ETF, which is one hundreds of
biotech companies, so you're gaining exposure to

548
00:39:24.159 --> 00:39:28.800
the sector without trying to pick the
stock that does the best. You're not

549
00:39:28.800 --> 00:39:32.639
going Obviously there's times where the ETF
isn't going to outperform maybe one stock that's

550
00:39:32.639 --> 00:39:37.079
in it because it's more diversified.
But if the biotech sector as a hole

551
00:39:37.119 --> 00:39:42.719
is going up, you're gonna see
gains. Another interesting place that I was

552
00:39:42.760 --> 00:39:46.119
looking at this week is bitcoin.
Bitcoin fell down to fifty four thousand over

553
00:39:46.159 --> 00:39:50.440
the weekend, bounce back up to
fifty eight. Now it's training around fifty

554
00:39:50.559 --> 00:39:53.400
seven to six, and it's built
a nice base here at its Fibonacci level,

555
00:39:53.519 --> 00:39:58.400
so it'd be interesting to see how
it responds off of it and I'd

556
00:39:58.440 --> 00:40:04.599
expect it to go higher back up
sixty did you did you guys see Costco

557
00:40:04.760 --> 00:40:07.679
this week? That was an interesting
play. They raised their membership fees and

558
00:40:07.880 --> 00:40:10.239
after markets they went up about ten
percents. Did not hold it the next

559
00:40:10.320 --> 00:40:14.400
day. That was a quick way
to raise five hundred million dollars though.

560
00:40:15.519 --> 00:40:19.480
Yeah, they increased their membership by
five dollars. Yeah, five dollars,

561
00:40:19.519 --> 00:40:22.280
and then the kind of more advanced
here they raised about ten but yeahnts around

562
00:40:22.559 --> 00:40:27.639
hot dogs the same price as long
as that founders are at Another thing about

563
00:40:27.639 --> 00:40:30.280
the interest rates could have been that
that's why Tesla had such a good week

564
00:40:30.360 --> 00:40:34.239
last week. Now, inter rates
didn't falled that big last week, but

565
00:40:34.320 --> 00:40:37.760
they were up twenty seven percent last
week. This week they held their gains

566
00:40:37.800 --> 00:40:40.880
only down one percent, So it
was interesting that they were able to hold

567
00:40:40.920 --> 00:40:45.199
those gains. Now trades at two
forty eight, Yeah, Tesla's a still

568
00:40:45.199 --> 00:40:46.679
a very viotle stock, and then
it dropped twenty points in one day,

569
00:40:46.719 --> 00:40:51.440
then a gain's it back then gained
fifty points in three days. I think

570
00:40:51.440 --> 00:40:54.719
tos and Tesla did what it did
was because people with short that stock was

571
00:40:54.760 --> 00:40:59.159
a heavily shorted stock, it started
to get away from them. I don't

572
00:40:59.199 --> 00:41:01.679
know why people cantinue to try to
short that stock, because at the end

573
00:41:01.679 --> 00:41:05.679
of the day, they've got their
heads handed to them. Selling a stock

574
00:41:05.760 --> 00:41:08.000
short means you're trying to bet the
stock's going to go down, and at

575
00:41:08.039 --> 00:41:12.599
some time you have to cover that
stock if it's down, which means buy

576
00:41:12.639 --> 00:41:15.559
it after you sold it. And
what it did. It came out with

577
00:41:15.639 --> 00:41:20.840
surprising a news. The news forced
to stock higher. People started buying the

578
00:41:20.880 --> 00:41:23.719
stock. The shorts had to come
in and cover. People started buying the

579
00:41:23.760 --> 00:41:27.119
stock because they were afraid they were
going to miss it. And I'm sure

580
00:41:27.159 --> 00:41:30.199
and everyone's buying the stock's going back
to five hundred. It could go it

581
00:41:30.239 --> 00:41:32.519
again, who knows. But at
the end of the day, short selling

582
00:41:34.519 --> 00:41:39.639
becomes double buying at some time when
people get scared. And nothing's different of

583
00:41:39.960 --> 00:41:43.920
Tesla this week than it was last
week, other than the fact that the

584
00:41:43.960 --> 00:41:46.639
stock is much much higher. Another
thing that we want to talk about is

585
00:41:46.679 --> 00:41:51.280
the risk levels that our clients are
at right now. We're at fifty six

586
00:41:51.920 --> 00:41:54.119
and the S and P five hundred. That was the fifty six hundred year

587
00:41:54.159 --> 00:41:58.559
price target when we came into this
year, so we are already at the

588
00:41:58.639 --> 00:42:01.559
end of your price target obviously readjusted. Now we're thinking about six thousand.

589
00:42:01.800 --> 00:42:06.519
The point of this is that if
you are looking at your portfolio and you're

590
00:42:06.519 --> 00:42:07.920
happy with it, that doesn't mean
you're going to be happy with it in

591
00:42:08.000 --> 00:42:12.800
a year's time or two years time. Just because you're at the risk level

592
00:42:12.840 --> 00:42:15.239
now doesn't mean that's where you're going
to need to be in the next six

593
00:42:15.320 --> 00:42:17.519
months. So come in here.
Let's give you a free risk analyzer.

594
00:42:17.559 --> 00:42:21.920
We can put in your holdings of
your current portfolio, show you how risky

595
00:42:21.960 --> 00:42:24.480
your current porfolio is. That way, you can see your risks at this

596
00:42:24.679 --> 00:42:29.280
level and not at a bottom level
like where most people want to see it.

597
00:42:29.679 --> 00:42:31.559
Right now, it's the more important
time where you actually have made the

598
00:42:31.599 --> 00:42:35.800
money. Now's the time to mitigate
risk, not when it's too late.

599
00:42:36.400 --> 00:42:38.800
You know, I've been thinking about
that a lot. That we are looking

600
00:42:38.800 --> 00:42:45.679
for fifty six hundred plus for the
market to get to and top out,

601
00:42:45.000 --> 00:42:47.559
and it's like, Okay, why
am I still bullish on the market.

602
00:42:47.920 --> 00:42:52.199
Why do I still think you can
go higher? Okay? Simple? They

603
00:42:52.239 --> 00:42:57.639
never lower delingistrates. They kept talking
about lowing them in March, lowing them

604
00:42:57.639 --> 00:43:00.840
in June, lower them in August, September, Well, we haven't gotten

605
00:43:00.880 --> 00:43:04.800
to September yet, and they keep
talking about it. And if it's not

606
00:43:04.880 --> 00:43:08.599
that, it's November. So my
feeling is is that the markets have continued

607
00:43:08.639 --> 00:43:14.480
to come up because the anticipation that
it's going to happen, and it hasn't.

608
00:43:14.559 --> 00:43:16.440
If you go back and look at
history, when they lower ingistrates,

609
00:43:16.440 --> 00:43:21.400
you get a pop, and then
there's a problem because they have to keep

610
00:43:21.440 --> 00:43:27.159
lowering interest rates. What ends up
happening is the economy is not doing as

611
00:43:27.159 --> 00:43:30.800
well. Now. Eventually all these
people that called the recession are going to

612
00:43:30.880 --> 00:43:34.599
say, you see, I told
you a recession. What's coming? It

613
00:43:34.719 --> 00:43:38.599
was also forty percent ago in the
markets, So if you just thought that

614
00:43:38.599 --> 00:43:43.960
that I'm getting out, you gave
up a lot of appreciation to the upside.

615
00:43:44.599 --> 00:43:49.440
Yes, a recession won't come.
So, like Todd just said,

616
00:43:49.719 --> 00:43:55.159
know your risk tolerance, But what
most of you don't know is what your

617
00:43:55.199 --> 00:44:01.360
portfolio risk is. You need to
come in and let us put your portfolio

618
00:44:01.400 --> 00:44:07.280
through the same thing as you would
as a person, and see what your

619
00:44:07.360 --> 00:44:13.079
portfolio is. What is your risk
number on your portfolio right now, I

620
00:44:13.119 --> 00:44:17.480
got people are much there with portfolios, are much riskier than what they really

621
00:44:17.519 --> 00:44:22.599
want to handle. Explain the process
of how that works on the portfolio side.

622
00:44:22.800 --> 00:44:24.800
Yeah, So if you're thinking about
what's a really risky stock Bitcoin for

623
00:44:24.840 --> 00:44:28.639
example, it's a ninety nine on
a risk scale, you're thinking what's the

624
00:44:28.679 --> 00:44:30.800
most least risky stuff it's going to
be in cash, You're gonna have a

625
00:44:30.800 --> 00:44:34.800
one on the risk scale. If
you're on a S and P five hundred

626
00:44:34.800 --> 00:44:37.679
percent of S and P five hundred, your risk score for that stock would

627
00:44:37.679 --> 00:44:42.159
be a seventy seven for example.
Okay, so every single holding has its

628
00:44:42.159 --> 00:44:45.920
own risk ore, and then as
a composite with all those holdings, based

629
00:44:45.920 --> 00:44:49.280
on how much money is in each
holding, you get a composite risk score

630
00:44:49.360 --> 00:44:52.800
for your portfolio. So if your
risk score of your portfolio seventy and you

631
00:44:52.920 --> 00:44:58.000
coming in as fifty on your risk
score on your personal risk score, then

632
00:44:58.039 --> 00:45:01.559
there's a disconnect there. So there's
that's how we can see if you're currently

633
00:45:01.599 --> 00:45:07.000
where you can handle the level of
risk that your portfolio is showing. Right,

634
00:45:07.079 --> 00:45:16.159
So simplifying does your portfolio and you
match up as as risky as you

635
00:45:16.199 --> 00:45:21.199
want to be And the only way
you're going to do it is you actually

636
00:45:21.199 --> 00:45:25.000
spend the time go through I mean
you have So this is where this is

637
00:45:25.039 --> 00:45:30.639
where AI actually helps. Okay,
our programs are all done by algorithms,

638
00:45:30.880 --> 00:45:37.199
all AI stuff in them, and
it's predictive and it will tell you and

639
00:45:37.239 --> 00:45:40.800
it takes. What it takes into
consideration is liquidity. How long you think

640
00:45:40.840 --> 00:45:45.079
you need the markets, how you
feel about the markets, What do you

641
00:45:45.119 --> 00:45:47.039
feel if the markets go down?
How do you feel if you come out

642
00:45:47.039 --> 00:45:52.920
of something and it goes the other
way? Versus actual risk? If you're

643
00:45:53.000 --> 00:45:57.519
just in the SP five hundred,
that's seventy seven. That means, okay,

644
00:45:57.559 --> 00:46:00.840
you're going to do about seventy five
to eighty percent of what market does.

645
00:46:00.320 --> 00:46:04.840
But on the downside, you're gonna
do the same thing. So can

646
00:46:04.880 --> 00:46:08.840
you handle losing fifteen to twenty percent? Most people can't. They can certainly

647
00:46:08.880 --> 00:46:13.159
make it on the upside, but
they can't handle it on the downside.

648
00:46:13.239 --> 00:46:16.880
So right now, make your decision
that you're going to at least do that

649
00:46:16.960 --> 00:46:22.039
over the next thirty days is find
out what your portfolio risk is, what

650
00:46:22.119 --> 00:46:27.320
your personal risk is, and we'll
do it for you. For nothing and

651
00:46:27.480 --> 00:46:30.559
twelve in a financial plan. If
that's what you want, Okay, financial

652
00:46:30.599 --> 00:46:34.880
plan uses the risk. We use
that risk to build your financial plan to

653
00:46:34.880 --> 00:46:37.360
show you what it looks like during
retirement because a lot of the time,

654
00:46:37.760 --> 00:46:40.159
your risk tolerance is going to be
a lot more conservative. Once you hit

655
00:46:40.199 --> 00:46:45.039
retirement and you're not getting in the
paycheck every two weeks or every month.

656
00:46:45.440 --> 00:46:49.480
Right now you're fifty, you might
have a high risk tolerance, a high

657
00:46:49.800 --> 00:46:52.639
aggressive you want to be going because
you're not retiring for ten years, or

658
00:46:52.719 --> 00:46:57.119
you were fifty and now you're sixty
and you're thinking, Okay, it's time

659
00:46:57.119 --> 00:46:59.760
to get a little more conservative.
I don't know how I've been aggressive my

660
00:46:59.800 --> 00:47:02.360
whole life. We can show you
how it would look during retirement to be

661
00:47:02.400 --> 00:47:07.480
more conservative. This analyzer also shows
you your expense ratio that you're paying for

662
00:47:07.519 --> 00:47:09.280
all the holdings in your account,
which really is good to know if you're

663
00:47:09.320 --> 00:47:13.920
overpaying. So go to our website, find a phone number, either contact

664
00:47:14.000 --> 00:47:15.920
us to email or give us a
call, set up an appointment and get

665
00:47:15.920 --> 00:47:19.320
this done. We'll be right back. It's the Money Matter Show. We

666
00:47:19.360 --> 00:47:46.280
have another hour for you to listen
to us and learn more. By one.

667
00:47:47.480 --> 00:47:52.599
Hello and welcome to Money Matters.
I'm Sarah Peterson here with Dean Greenberg

668
00:47:52.760 --> 00:47:58.639
and Dylan Greenberg of Greenberg Financial Group. Good morning. How are you guys

669
00:47:58.639 --> 00:48:02.079
doing. We're good. Every week
we get to see you. Lucky you

670
00:48:02.159 --> 00:48:07.079
know, I'm just kidding. I
love you guys. This is a great

671
00:48:07.079 --> 00:48:10.199
way for people to understand their money
does matter. It doesn't. Money's not

672
00:48:10.239 --> 00:48:15.559
everything. But we are looking at
the way we all approach our financial plan

673
00:48:15.400 --> 00:48:21.119
so that we can retire wonderfully,
beautifully the way we all envisioned and have

674
00:48:21.199 --> 00:48:23.719
peace of mind. And that's what
we're getting. Yeah, I mean,

675
00:48:23.760 --> 00:48:27.679
that's the biggest thing is we want
to have people have their peace of mind

676
00:48:28.039 --> 00:48:30.159
through their retiring years. We don't
want them to stress about where the money's

677
00:48:30.159 --> 00:48:32.039
coming from, how much do they
got to spend. We want to deal

678
00:48:32.079 --> 00:48:37.239
with all that before they retire,
so they know their plan for the golden

679
00:48:37.320 --> 00:48:38.920
years. Quote unquote. People who
are just tuning in and seeing you guys,

680
00:48:38.960 --> 00:48:44.320
they don't really understand how different things
are at Greenberg Financial Group. You

681
00:48:44.360 --> 00:48:49.760
guys are not just a team,
but oh a father and a son.

682
00:48:50.039 --> 00:48:52.880
Yes, you know, any one
thinks you know a lot of people go,

683
00:48:52.960 --> 00:48:57.440
oh, isn't that great? It's
so fantastic. You some wanted to

684
00:48:57.440 --> 00:49:00.519
get into the business and do this
and that, and you know maybe some

685
00:49:00.159 --> 00:49:05.199
parent kids relationship starts up that way
and they always want to do it.

686
00:49:05.239 --> 00:49:08.960
I knew he wanted to be in
financial stuff, but working together was an

687
00:49:09.000 --> 00:49:13.280
idea, but never something that was
like, Okay, we're going to do

688
00:49:13.320 --> 00:49:16.280
it right away. But circumstances,
you know, obviously changing. When I

689
00:49:16.320 --> 00:49:21.280
was looking for that person, you
know, dealers in Minnesota looking for stuff

690
00:49:21.280 --> 00:49:22.920
in New York, and I'm like, what do you want to do?

691
00:49:22.840 --> 00:49:24.480
Do you want to be an institutional
I want to be a financial advisor?

692
00:49:24.679 --> 00:49:28.239
I said, then why are you
going to start off there trying to build

693
00:49:28.719 --> 00:49:31.719
a book for somebody else and not
be back with us? He said,

694
00:49:31.800 --> 00:49:35.880
okay. So I talked to him
into coming back and working with us and

695
00:49:35.880 --> 00:49:39.679
starting with us. And like I
tell everybody, working with me and our

696
00:49:39.760 --> 00:49:44.199
firm, every year is a dog
here. I mean, you're learning seven

697
00:49:44.280 --> 00:49:46.239
years of stuff in one year compared
to what you would learn in a big

698
00:49:46.280 --> 00:49:52.480
company. But it's okay because my
style is real simple. You'll make mistakes,

699
00:49:52.320 --> 00:49:55.639
but that's all right. We'll fix
them. You won't know everything,

700
00:49:55.920 --> 00:50:00.000
but you'll ask questions and you will
learn it, and you'll get so much

701
00:50:00.119 --> 00:50:02.360
much faster and know so much more
from there. I remember the first time

702
00:50:02.360 --> 00:50:05.360
he was on the radio. I
mean he was with us for a week.

703
00:50:05.400 --> 00:50:07.320
I think put him on the radio, he's stumbling and bumbling, and

704
00:50:07.320 --> 00:50:12.599
now he's smooth and does a great
job. But then it came down to

705
00:50:12.639 --> 00:50:16.000
that father son relationship. And I
know it's a little personal, but I'm

706
00:50:16.000 --> 00:50:19.519
going to tell people this because a
lot of people want to be in that

707
00:50:19.559 --> 00:50:23.639
relationship with their kids. It's as
a dad, you expect things to be

708
00:50:23.679 --> 00:50:27.039
a certain way. As a son, you expect things to be a certain

709
00:50:27.079 --> 00:50:31.000
way. And that dynamic isn't as
easy as you think it is. But

710
00:50:31.039 --> 00:50:35.280
the one thing that we agree to
is that we will continue to talk and

711
00:50:35.280 --> 00:50:38.639
communicate until we got the answer.
We weren't going to walk away with each

712
00:50:38.679 --> 00:50:42.039
other. We weren't going to say
no to this and that, but we're

713
00:50:42.039 --> 00:50:45.039
going to be honest and open with
each other. Well, you're both athletes

714
00:50:45.079 --> 00:50:49.559
too, and you both like you
both approach things with a team perspective,

715
00:50:49.599 --> 00:50:52.840
and I think that's something we can
all appreciate that's the easy part. Oh

716
00:50:52.920 --> 00:50:55.280
yeah, that's the easy it's it's
how we interacted with each other. It

717
00:50:55.320 --> 00:50:59.719
was the first couple of years it
was a dynamic between it was being my

718
00:50:59.800 --> 00:51:02.360
dad or my boss and then his
son or employee. So that dynamic until

719
00:51:02.400 --> 00:51:05.960
we figured it out was a rough
couple of years. Well, like you

720
00:51:05.960 --> 00:51:07.920
said, we stick it out.
But I do love to how you have

721
00:51:07.960 --> 00:51:12.400
a different perspective. You're a young
guy. You see, you're kind of

722
00:51:12.400 --> 00:51:15.320
got your finger on the pulse right
now. You're learning so quickly. There's

723
00:51:15.400 --> 00:51:19.440
just so many changes in the financial
world every day, so much to learn.

724
00:51:19.800 --> 00:51:23.960
And it's great that you are so
interested in this long term perspective because

725
00:51:23.960 --> 00:51:28.920
people are coming in. Younger people
people twenties, thirties, forties. They

726
00:51:28.920 --> 00:51:31.719
need to start planning and it's great
to be building their future with you and

727
00:51:31.840 --> 00:51:36.800
know that you can kind of stick. But it's even retired people. They're

728
00:51:36.880 --> 00:51:39.880
happy that I have younger people there
because say, look at man. They

729
00:51:39.880 --> 00:51:43.280
go, okay, tell me the
truth I do. I say, listen,

730
00:51:43.280 --> 00:51:46.599
I don't plan on retiling, but
if I can't mentally handle it,

731
00:51:47.320 --> 00:51:52.199
I will walk away. But I
still got ten twelve, fifteen years more

732
00:51:52.400 --> 00:51:54.320
to go, for sure, But
I don't want to be that guy.

733
00:51:54.440 --> 00:51:59.119
I want the young people over the
next three, five, seven, ten

734
00:51:59.199 --> 00:52:01.760
years to be able to be the
ones. So I give him a lot

735
00:52:01.760 --> 00:52:05.719
of leeway to input and give me
the ideas that they want. If I

736
00:52:05.840 --> 00:52:08.320
like him, we'll try it.
If we don't, I'm not afraid to

737
00:52:08.400 --> 00:52:12.800
give them some things to see how
they work out. But you know,

738
00:52:13.000 --> 00:52:15.119
one of the things with Dylan,
which was tough and different for me,

739
00:52:15.199 --> 00:52:20.000
when I started with nothing in nineteen
eighty eight, I had nothing to lose,

740
00:52:20.440 --> 00:52:22.039
you know, so people were pulling
for me. It was great,

741
00:52:22.079 --> 00:52:24.480
you know what I mean, Hey, you got you're starting your own company.

742
00:52:24.559 --> 00:52:28.400
That's great. I hope that works
for you. And it's a struggle

743
00:52:28.440 --> 00:52:31.079
for fifteen years, you know,
making less than fifty grand a year was

744
00:52:31.119 --> 00:52:35.440
not that great, and then all
the expenses and having kids and doing all

745
00:52:35.440 --> 00:52:37.880
that stuff. You had to build
up from there. But somehow, somewhere

746
00:52:37.920 --> 00:52:42.840
you do it right. And so
like Dylan, always wanted to do it

747
00:52:42.880 --> 00:52:46.960
himself. Even when Dylan was a
sophomore playing football, he didn't want me

748
00:52:47.000 --> 00:52:50.880
to coach him anymore. He wanted
me to go someplace else because he wanted

749
00:52:50.920 --> 00:52:52.599
to do it on his own.
He didn't want anyone to think that he

750
00:52:52.639 --> 00:52:55.880
made varsity because of me or was
a starter because of me. So I

751
00:52:55.920 --> 00:52:59.639
said, fine, I get that. So the same thing with the business.

752
00:52:59.679 --> 00:53:01.599
He thought, but I don't want
to be given anything. I don't

753
00:53:01.599 --> 00:53:04.440
want to do it. I don't
want to do this me alone. Until

754
00:53:04.480 --> 00:53:06.920
I sat him down and go tell
him. You don't understand. Man,

755
00:53:07.280 --> 00:53:10.280
You've got so much more pressure on
you than I ever had on me.

756
00:53:12.119 --> 00:53:15.400
If I'd made this go and I
didn't make it go, people would either

757
00:53:15.400 --> 00:53:19.920
feel great or bad. Okay,
I said, I turned this over to

758
00:53:20.000 --> 00:53:22.360
you. You've got a legacy you
got to hold up. You have an

759
00:53:22.400 --> 00:53:28.840
opportunity. You fail, you're gonna
you're not gonna be a happy camper because

760
00:53:28.840 --> 00:53:32.360
you let something that was successful go
in a different direction. And that,

761
00:53:32.480 --> 00:53:37.159
I said, is more pressure.
So right now, take all that other

762
00:53:37.159 --> 00:53:39.000
stuff out, take the jealousy out, take the haters out of your mind

763
00:53:39.159 --> 00:53:43.880
because if they don't mean anything to
you, and open your mind to how

764
00:53:43.880 --> 00:53:45.400
we're going to make the successful.
And I said, I'm gonna bring other

765
00:53:45.400 --> 00:53:49.000
people in like we did with Todd
and all, who are going to help

766
00:53:49.039 --> 00:53:53.199
you be successful and you're gonna work
together and he goes great, and that's

767
00:53:53.199 --> 00:53:57.519
what changed everything around. Yeah,
I mean, that's really what changes when

768
00:53:57.519 --> 00:54:00.000
we brought other people that had the
same mindset. And now that's why I

769
00:54:00.079 --> 00:54:02.960
like our whole team dynamic has changed
from the first time I was there about

770
00:54:02.960 --> 00:54:07.440
six years ago. It's changed into
we have my dad and Dave Sherwod who

771
00:54:07.480 --> 00:54:10.000
have been in there for forty years, and then they have myself, Todd

772
00:54:10.079 --> 00:54:14.119
and Sebastian who has been in there. I've been there six, Todd's three,

773
00:54:14.119 --> 00:54:16.639
and then Sebastian's new, our new
guy. But them teaching us how

774
00:54:16.679 --> 00:54:21.400
to do these things and showing us
the longevity of this business is something that

775
00:54:21.440 --> 00:54:22.719
you can look forward to. You
want to look forward to, and if

776
00:54:22.719 --> 00:54:27.280
you stick it out in a business
like this, you will be successful in

777
00:54:27.320 --> 00:54:30.000
the long run. But it's really
the first couple of years we're obviously,

778
00:54:30.000 --> 00:54:32.119
like he was explaining, kind of
tough. But now being into it and

779
00:54:32.159 --> 00:54:36.480
being in there for you never see
yourself doing anything else. That's the best

780
00:54:36.480 --> 00:54:38.719
part about it. But the idea
of having the team aspect is my favorite

781
00:54:38.760 --> 00:54:43.119
part. A lot of people are
intimidated to talk about their finances and doing

782
00:54:43.119 --> 00:54:46.199
it with you guys makes it feel
very comfortable in a family atmosphere. I

783
00:54:46.199 --> 00:54:51.000
think this is what people want.
It's such an intimate conversation to be having,

784
00:54:51.480 --> 00:54:53.239
right. We always talk about health
and wealth, and people are not

785
00:54:53.719 --> 00:54:58.840
always willing to bear their financial soul
to a lot of people. So you

786
00:54:58.920 --> 00:55:01.400
need to feel comfortable with that not
only do they have your best interests at

787
00:55:01.440 --> 00:55:05.559
heart, but that they are educated
and that they know what they're talking about.

788
00:55:05.599 --> 00:55:07.840
And you guys have all of those
things, and you educate people.

789
00:55:08.360 --> 00:55:12.599
We do, and I've taught them
how to do that, and they do

790
00:55:12.639 --> 00:55:15.559
a great job at it. One
of the biggest things I picked up was

791
00:55:16.199 --> 00:55:21.039
don't talk to people that like they're
your age or thirty eight forty. Talk

792
00:55:21.079 --> 00:55:25.159
to these people that are retiring.
Put your mind frame as if you're in

793
00:55:25.159 --> 00:55:30.519
my position right now. Think about
paying off debt, think about relieving stress,

794
00:55:30.840 --> 00:55:36.400
thinking about being more conservative. And
they've done a fantastic job doing that.

795
00:55:36.840 --> 00:55:38.599
How does the time just fly by
like this? We have to take

796
00:55:38.599 --> 00:55:42.800
a quick commercial break. That number
at the bottom of the screen is five

797
00:55:42.840 --> 00:55:45.480
two zero five four four four nine
zero nine. I hope you'll stay with

798
00:55:45.559 --> 00:55:50.519
us because we have so much more
to talk about with your money Matters.

799
00:55:50.559 --> 00:55:55.960
We'll see you in a few Hello, and welcome back to money Matters.

800
00:55:57.000 --> 00:56:00.400
I'm Sarah Peterson here with Dean Greenberg
and Dylan Greenberg of Greenberg Financial Group,

801
00:56:00.480 --> 00:56:04.760
and we're getting into it today.
First, we learned a lot about you

802
00:56:04.800 --> 00:56:07.679
guys, and I love the family
atmosphere. I love the fact that you

803
00:56:07.760 --> 00:56:14.239
have generations of people now working and
you're so young to be dealing with the

804
00:56:14.280 --> 00:56:16.880
retirement phase. But this is going
to change your perspective too on how you

805
00:56:16.880 --> 00:56:20.519
live your own life. It is, I mean, makes me want to

806
00:56:21.039 --> 00:56:24.039
say for retirement, makes me know
all about what could happen when I'm sixty

807
00:56:24.039 --> 00:56:27.400
and like all the good things that
can happen with the two when you're retired.

808
00:56:27.440 --> 00:56:31.199
It shows what you think about when
you're twenty nine in reality, because

809
00:56:31.199 --> 00:56:35.719
they're sixty seventy fifty five getting ready
to retire, they are retired, they're

810
00:56:35.800 --> 00:56:37.760
eighty five. They've seen the world, and that's what their perspective now is.

811
00:56:38.000 --> 00:56:40.440
I'm done. I just want to
hang out with my family in town.

812
00:56:40.639 --> 00:56:43.320
I don't want to go to Europe
anymore. I've done it. This

813
00:56:43.559 --> 00:56:45.800
different all different paths. But it's
like the idea of what you think about

814
00:56:45.840 --> 00:56:49.199
what is your life going to look
like in forty years. It's kind of

815
00:56:49.239 --> 00:56:52.800
showing you right across the table what
it is, what it could be.

816
00:56:52.800 --> 00:56:57.800
Well, I think that looking at
life in segments. You know, people

817
00:56:57.920 --> 00:57:00.920
think that they have a financial plan
if they're working with an advisor and they're

818
00:57:00.960 --> 00:57:04.519
investing, right, But that's not
the kind of plan that we're talking about.

819
00:57:04.960 --> 00:57:06.960
That's just one aspect of it.
Right. You take your four on

820
00:57:07.000 --> 00:57:08.480
O K and that's just one aspect
of investing it. But the other aspect

821
00:57:08.519 --> 00:57:13.559
of social security. Do you need
life insurance? Do you have a pension

822
00:57:13.599 --> 00:57:15.719
that you used to have were you
in the military. Like we talked about

823
00:57:15.800 --> 00:57:19.320
on another show, was the federal
employees they still get their pensions. Do

824
00:57:19.360 --> 00:57:22.599
they have pensions, Do they have
health insurance? Do they have all that

825
00:57:22.639 --> 00:57:24.360
different things they go into it?
Do they want long term care? All

826
00:57:24.400 --> 00:57:28.280
those create the plan. And then
a big thing with the plan too,

827
00:57:28.360 --> 00:57:31.360
is your expenses, your budget during
retirement. That is a big thing that

828
00:57:31.360 --> 00:57:37.079
people don't what we see that's the
hardest part for them to find is what

829
00:57:37.119 --> 00:57:39.199
do they spent on a monthly basis
because they're just like, I don't know.

830
00:57:39.320 --> 00:57:42.519
I just see there's enough money in
account. I don't really care.

831
00:57:42.920 --> 00:57:45.039
But then when we say, like
we sit down, they see that is

832
00:57:45.159 --> 00:57:49.639
sometimes more than they think. It's
actually something that we talk about. I

833
00:57:49.639 --> 00:57:52.840
mean I personally talk about at home. We don't live like that either.

834
00:57:52.960 --> 00:57:54.840
We don't say we have X amount
to spend and you just say, oh,

835
00:57:54.920 --> 00:57:58.519
the kid needs this or that,
and you're ordering an Amazon has just

836
00:57:58.599 --> 00:58:00.719
changed everything. You just click a
button and then you don't realize everything.

837
00:58:00.760 --> 00:58:05.719
Well, those are like this is
coming in every single day. I don't

838
00:58:05.800 --> 00:58:09.559
understand it. Sometimes their necessities,
their necessity. The necessity is fine,

839
00:58:09.840 --> 00:58:14.800
the addictive, being addicted to having
it. Do that, it's so easy.

840
00:58:15.159 --> 00:58:17.480
I have your wife's back. I'm
sure those are all things he needs

841
00:58:17.480 --> 00:58:21.320
for you. Yeah you met my
wife. Yeah I have her back.

842
00:58:21.800 --> 00:58:24.239
But no, I think this is
the day and age of like instant gratification

843
00:58:24.800 --> 00:58:29.199
and so that we're not aware on
a constant basis, almost like we need

844
00:58:29.199 --> 00:58:30.840
to take our credit cards away for
a month and pay for everything in cash

845
00:58:30.880 --> 00:58:35.280
and then you're really aware. You
know, you were talking about that earlier.

846
00:58:35.320 --> 00:58:38.360
The biggest thing he's learned this bad
debt, good debt. Pay those

847
00:58:38.360 --> 00:58:43.400
credit cards off every month. It's
such a good feeling. Yeah, Todd,

848
00:58:43.400 --> 00:58:45.320
who's been on the other shows,
he said he just found a new

849
00:58:45.320 --> 00:58:47.960
credit card thirty percent interest. Right, it's ridiculous what they are going up

850
00:58:49.000 --> 00:58:51.320
to, and like, well it
benefits of four years ago it was like

851
00:58:51.360 --> 00:58:54.480
eighteen percent. I think to be
offering something amazing, but that's just where

852
00:58:54.480 --> 00:58:57.480
it's going. And then if you
don't pay it, that's how it can

853
00:58:57.519 --> 00:59:00.880
get racked up so quickly. Good
debt is the mortgage thirty percent. It's

854
00:59:00.960 --> 00:59:06.039
ridiculous, that is, and they
just keep going up, and they say

855
00:59:06.039 --> 00:59:08.239
that this is the highest rate of
credit card debt they have ever seen history

856
00:59:08.280 --> 00:59:13.199
and credit card delinquency, so people
aren't budgeting very well. And then what

857
00:59:13.519 --> 00:59:16.039
we talk about too is the idea
that student loans payments were started in October

858
00:59:16.440 --> 00:59:19.760
and they already had these They had
three years of not worrying about it.

859
00:59:19.840 --> 00:59:22.480
So now these people are going to
start having to pay those debts back or

860
00:59:22.519 --> 00:59:23.480
not. Then it's going to hit
their credit. Then they're gonna have to

861
00:59:23.480 --> 00:59:25.960
pay the credit cards back that they
didn't account for, having to pay five

862
00:59:27.039 --> 00:59:29.840
hundred dollars towards student loans. There's
all these different aspects that are coming into

863
00:59:29.920 --> 00:59:32.119
it that aren't thought about all the
time. If you don't have your budget

864
00:59:32.119 --> 00:59:36.519
and check well, and I mean
a lot of that falls on the conversations

865
00:59:36.559 --> 00:59:38.599
we had previously about planning for college. Like I have a family member who's

866
00:59:38.599 --> 00:59:43.280
dealing with massive student loans and he's
really he's got a good job, he's

867
00:59:43.280 --> 00:59:45.880
trying to get ahead, but it's
it's really hard when you've got that,

868
00:59:45.559 --> 00:59:50.800
you know, that lead thing sitting
on your shoulder like that. So it

869
00:59:50.840 --> 00:59:53.400
would have been nice if the previous
generation can plan for those things, help

870
00:59:53.400 --> 00:59:57.280
well plan before that. Yeah,
you don't want those student loans, you

871
00:59:57.280 --> 00:59:59.719
know what you need to do.
Parents need to make sure the kids have

872
00:59:59.760 --> 01:00:04.320
good rates because in the state of
Arizona and the and the schools that all

873
01:00:04.320 --> 01:00:07.559
have this reference back and forth for
the same tuition. If you have good

874
01:00:07.559 --> 01:00:10.760
grades three, five and above,
you get a lot of your college paid

875
01:00:10.760 --> 01:00:15.559
for. Okay, if you are
good at something, whether it's musician,

876
01:00:15.880 --> 01:00:20.760
whether it's the band, whether it's
soccer, whether it's football, basketball,

877
01:00:20.800 --> 01:00:22.599
you name it, be an athlete, you get your foot you get school

878
01:00:22.599 --> 01:00:27.960
paid for. But it all starts
with grades, and people don't get that.

879
01:00:28.079 --> 01:00:30.280
I deal with that with the freshman
parents that come in. I talk

880
01:00:30.360 --> 01:00:32.760
to him, you want your kid
to get a scholarship. Make sure he's

881
01:00:32.800 --> 01:00:36.679
got good grades. If he turns
out to be six four, three hundred

882
01:00:36.679 --> 01:00:37.960
pounds, we'll do something for him. If he turns out to be,

883
01:00:38.639 --> 01:00:42.519
you know, a great running back, that's fine. D one will find

884
01:00:42.519 --> 01:00:45.599
you. If not, you better
have good grades because you can go if

885
01:00:45.599 --> 01:00:47.079
you want to play sports and college
because we coach football, so like that's

886
01:00:47.119 --> 01:00:50.840
what we do with a lot of
the time. A running back with you're

887
01:00:50.840 --> 01:00:52.639
a little undersize, you can go
play in D three, D two and

888
01:00:52.679 --> 01:00:55.760
get your school paid for if you
have good high school grades. If you

889
01:00:55.840 --> 01:01:00.519
kind of just just don't do well
in high school, she's like, Ah,

890
01:01:00.519 --> 01:01:01.199
it doesn't matter. I'm going to
go. Do you want to get

891
01:01:01.239 --> 01:01:05.280
a scholarship? Gray still matter?
Gray still matter for D one. Any

892
01:01:05.480 --> 01:01:07.480
if you're trying to play sports and
calls, they matter. Okay, your

893
01:01:07.480 --> 01:01:12.960
parents don't have money, you get
pelgrants if you have good grades. It

894
01:01:13.000 --> 01:01:15.639
all goes down to the grapes,
and the grades are telling you that you

895
01:01:15.840 --> 01:01:20.760
cared enough to study and do what
you're supposed to to get those grades.

896
01:01:20.800 --> 01:01:22.800
Because I'll tell you right now,
high school, public high school in Arizona

897
01:01:23.079 --> 01:01:25.440
is not tough. What you need
to do is put the effort in.

898
01:01:27.800 --> 01:01:30.360
No I mean, and there are
so many options you're correct in Arizona for

899
01:01:30.400 --> 01:01:35.639
these kids that it really does make
me very encouraged for my children to stay

900
01:01:35.639 --> 01:01:39.280
here. I do want to talk
to you somewhat about some of our viewer

901
01:01:39.400 --> 01:01:44.840
questions, but before I do that, let's talk about what options there are

902
01:01:44.880 --> 01:01:47.559
for us. When we're looking at
all of these things, all of these

903
01:01:47.760 --> 01:01:52.880
buckets that we have, how do
we know how to plan properly with our

904
01:01:52.920 --> 01:01:57.400
taxes? We're not talking about tax
preparation, but we're talking about how to

905
01:01:57.480 --> 01:02:00.840
strategize. We all need to pay
taxes. Were very lucky to be American

906
01:02:00.880 --> 01:02:02.039
citizens, but we don't want to
pay too much. And I feel like

907
01:02:02.079 --> 01:02:06.639
there are so many tools available to
us. How do we know where to

908
01:02:06.679 --> 01:02:09.039
start? Well, Mainland, that's
why we started teaming up with Yeah,

909
01:02:09.039 --> 01:02:14.440
that's the financial plan, but also
with our holistic plan of approach is we

910
01:02:14.480 --> 01:02:16.599
teamed up with an accounting firm,
be teamed up with an a state planning

911
01:02:16.599 --> 01:02:20.880
firm, so we can work all
together to get your financial plan in every

912
01:02:20.880 --> 01:02:22.800
which way, so they can help
in the nitty gritty part of it.

913
01:02:22.880 --> 01:02:27.239
What we can help with on the
tax side is just which investment account do

914
01:02:27.239 --> 01:02:28.800
you want to take it out of? Do you want it You don't want

915
01:02:28.840 --> 01:02:30.239
to take that out of the regular
brokerage because you don't want to do with

916
01:02:30.239 --> 01:02:34.199
capital gains. You don't want to
take it out of the traditional iray because

917
01:02:34.320 --> 01:02:36.400
or your four own kay, because
you got to deal with taxes, which

918
01:02:36.440 --> 01:02:39.719
will be whatever you take out will
be out of your income tax. And

919
01:02:39.719 --> 01:02:42.960
then so maybe you want to take
the money out of your oth iray depending

920
01:02:43.000 --> 01:02:46.400
on your thing. Obviously everything is
specialized and unique to your situation. But

921
01:02:46.400 --> 01:02:50.360
that's the avenues that we take and
we look at to see where should you

922
01:02:50.400 --> 01:02:53.039
get the money. Business owner is
a more complicated, right, That's why

923
01:02:53.039 --> 01:02:55.440
we use the estate plan or in
the accounting firm. But the good thing

924
01:02:55.519 --> 01:03:00.320
is well with them, we can
tell them what he's looking at for what

925
01:03:00.360 --> 01:03:02.840
he's doing. He could tell them
too, but we understand from the perspective

926
01:03:02.880 --> 01:03:07.480
of the investments too, of what
he has and what we're trying to accomplish,

927
01:03:07.679 --> 01:03:10.320
so we all work together and that's
why we're under one roof. This

928
01:03:10.400 --> 01:03:14.079
is what I'm talking about. It's
kind of one step shop and it's amazing

929
01:03:14.119 --> 01:03:16.639
because I feel like we all have
all these questions and we don't want to

930
01:03:16.639 --> 01:03:21.119
be sent out to hear Sally,
Joe and Bob. It's really nice to

931
01:03:21.159 --> 01:03:23.199
know everybody's in one place you can
convert with each other. For me,

932
01:03:23.360 --> 01:03:25.800
this is just a second opinion,
just like we do with our doctors,

933
01:03:25.800 --> 01:03:30.400
we go get a second opinion.
If you have a financial advisor that you're

934
01:03:30.440 --> 01:03:35.159
working with and these are not conversations
that you've had you are approaching retirement,

935
01:03:35.599 --> 01:03:38.920
please give us a call five two
zero five four four four nine zero nine,

936
01:03:39.079 --> 01:03:42.320
or you can scan the QR code
at the bottom of the screen.

937
01:03:42.639 --> 01:03:46.039
But this is something that we offer
complimentary for the viewers. Other advisors charge

938
01:03:46.039 --> 01:03:49.559
thousands of dollars of war. You're
so kind to do this as a gift

939
01:03:49.760 --> 01:03:52.760
to the viewers for spending time with
us. But this is our gift to

940
01:03:52.800 --> 01:03:57.039
you for spending time and learning along
with us, so that you can find

941
01:03:57.039 --> 01:04:00.199
out if you're on the road to
a retirement, the road that you you

942
01:04:00.440 --> 01:04:02.559
want to be on because your Money
Matters. We're going to take quick commercial

943
01:04:02.559 --> 01:04:08.199
break and we'll come back and talk
more about your amazing viewer questions. Stay

944
01:04:08.199 --> 01:04:12.440
with us. Hello, and welcome
back to Money Matters. I'm Sarah Peterson

945
01:04:12.480 --> 01:04:15.519
here with Dean Breenberg and Dylan Greenberg
of Greenberg Financial Group, and we are

946
01:04:15.519 --> 01:04:19.199
getting into the viewer questions. They're
my favorite. I know you always get

947
01:04:19.199 --> 01:04:23.599
a love it. Well. I
mean, these are things that everybody has

948
01:04:23.599 --> 01:04:26.840
on their mind, and the things
I had excite you're the questions and budgets.

949
01:04:27.679 --> 01:04:30.360
The B word does not excite me, okay unless it says I know,

950
01:04:30.440 --> 01:04:32.960
well if you guys not giving me
that information yet, if you give

951
01:04:33.000 --> 01:04:36.280
me that information, I will see
you later. I don't think anyone's ever

952
01:04:36.320 --> 01:04:40.000
going to tell me I can spend
more, but I can dream, can

953
01:04:40.119 --> 01:04:43.960
I? Okay? I thought this
was a great question. Uh. This

954
01:04:44.000 --> 01:04:46.519
is from Jessica. She asks an
Ira, I'm inheriting an Ira. If

955
01:04:46.519 --> 01:04:50.480
I inherit it before the age of
fifty nine point five, can I have

956
01:04:50.559 --> 01:04:55.719
it sent directly to my own ira? And what are the tax implications?

957
01:04:56.199 --> 01:04:59.360
So there's a couple of different things
that you got to think about when talk

958
01:04:59.400 --> 01:05:01.159
to you when that happens is if
you inherit, So say Jessica inherited the

959
01:05:01.199 --> 01:05:04.320
ira, but it's your husband that
passed away that can go straight into her

960
01:05:04.360 --> 01:05:08.599
ira, and it's called the spousal
inheritance. And it goes into her ira,

961
01:05:08.880 --> 01:05:11.760
then it's just her. She has
no timeline of taking it out.

962
01:05:11.800 --> 01:05:15.199
You have. But say it's her
grandma that passed away and she inherits that

963
01:05:15.199 --> 01:05:17.000
that has to be opened in a
deceit in ira, which is completely different

964
01:05:17.000 --> 01:05:21.679
from her ira, and then she
has ten years to distribute that. But

965
01:05:21.880 --> 01:05:25.519
either way, if it's a roth
iray or a traditional ra, she has

966
01:05:25.559 --> 01:05:28.159
to distribute that. She has to
take the money out in a ten year

967
01:05:28.199 --> 01:05:30.639
period. Traditionals, you'll have to
pay the taxes roth ira. You could

968
01:05:30.679 --> 01:05:33.440
just obviously won't stay any taxes,
but you have to take the money to

969
01:05:33.559 --> 01:05:36.880
close the account. They started these
rules. Irs put these rules in the

970
01:05:36.880 --> 01:05:40.679
place a couple of years ago because
they don't want somebody who in erit's an

971
01:05:40.719 --> 01:05:43.840
ira to just never touch it,
and another generation never touched it, and

972
01:05:43.880 --> 01:05:46.800
so on until it's like ten billion
dollars and then that generation just sounds great.

973
01:05:47.199 --> 01:05:50.599
That's why the irs stop doing it. But if it's your spouse that

974
01:05:50.719 --> 01:05:54.559
passes away, you can move it
straight into your IRA. But obviously if

975
01:05:54.599 --> 01:05:57.840
you're under fifty nine and a half, can't touch it. Otherwise you're gonna

976
01:05:57.840 --> 01:06:00.800
be penalized, especially if it's a
traditional IRA. If it's rough iray,

977
01:06:00.800 --> 01:06:04.920
you can take the contributions out at
any point. I love it, okay,

978
01:06:05.079 --> 01:06:09.440
my spouse and I, oh,
this is already. My spouse and

979
01:06:09.480 --> 01:06:13.760
I are seventy and sixty seven years
old and retired. We have a fixed

980
01:06:13.760 --> 01:06:16.679
and variable annuity. Is this a
good investment for monthly income? We sometimes

981
01:06:16.719 --> 01:06:23.519
need extra income for home maintenance.
Is it a good investment for a monthly

982
01:06:23.559 --> 01:06:26.719
income only if you change it into
a monthly income? You know, the

983
01:06:26.760 --> 01:06:32.320
fix indextinuity can be changed into an
income stream by innuitizing it. They have

984
01:06:32.400 --> 01:06:34.920
to, you know, obviously,
look at all the details of it,

985
01:06:35.079 --> 01:06:39.360
because you don't know how much you'll
pay, and if it's pass through,

986
01:06:39.360 --> 01:06:42.000
when it's not going to pay you
enough, depending on how long it is

987
01:06:42.039 --> 01:06:45.039
and what to pass surrenda, you
can always move it into a different one

988
01:06:45.039 --> 01:06:48.840
that will pay you more. Now
because interistrates are higher, the variable annuity

989
01:06:49.280 --> 01:06:54.360
kind of the same thing, depending
what it is, what you can convert

990
01:06:54.360 --> 01:06:57.719
it to or not, what the
income stream is. But you would have

991
01:06:57.760 --> 01:07:01.239
to look at what the annuity is, the company, the details behind it,

992
01:07:01.280 --> 01:07:04.599
and figure out is it best to
a new attize that one or to

993
01:07:04.599 --> 01:07:10.360
move it to another one exchange it? You guys ready for another question?

994
01:07:10.679 --> 01:07:15.800
Yeah, okay, this is a
hefty one. I was advised to roll

995
01:07:15.800 --> 01:07:18.159
my four to one K plan from
a previous employer into a traditional IRA,

996
01:07:18.360 --> 01:07:21.960
which I did. I haven't made
any contributions to it since rolling it over,

997
01:07:23.280 --> 01:07:25.760
and it's grown very little. I
have a four oh one K with

998
01:07:25.760 --> 01:07:29.039
my new employer. Should I roll
my traditional IRA into my new four to

999
01:07:29.119 --> 01:07:31.440
one K? I think if I
combine them, my money will grow the

1000
01:07:31.480 --> 01:07:35.239
most. I was advised to leave
my traditional IRA at the company that it's

1001
01:07:35.360 --> 01:07:39.480
at, so I'm not sure what
the best option is. There's so many

1002
01:07:40.400 --> 01:07:43.400
to ask about that question. What
did you roll it into? Did you

1003
01:07:43.480 --> 01:07:45.599
roll it to a bank, did
you roll it in a CD with one

1004
01:07:45.639 --> 01:07:47.440
percent? Did you roll it into
the stock market? What? What are

1005
01:07:47.480 --> 01:07:51.800
your allocations? You know? So
it's it's absolutely amazing how many people don't

1006
01:07:51.840 --> 01:07:56.079
know the difference between you know,
oh I got I got an IRA,

1007
01:07:56.280 --> 01:07:59.679
Well, what's in your IRA?
The IRA is a bucket that protects you

1008
01:07:59.679 --> 01:08:02.039
from how to pay taxes. So
you take the money out and there's so

1009
01:08:02.039 --> 01:08:05.079
many different investments. So people just
roll into the IRA and sometimes they leave

1010
01:08:05.079 --> 01:08:08.559
it in the money market and they
just trates, won't paying you want anything

1011
01:08:08.559 --> 01:08:11.480
for this? So long they go, it's only made any money. And

1012
01:08:11.760 --> 01:08:15.599
that's where you have to get in
and build a relationship and talk to the

1013
01:08:15.639 --> 01:08:17.560
person. Let me see it,
let me look at the stuff. What

1014
01:08:17.600 --> 01:08:21.079
were you trying to do, and
then explain to them all their other options.

1015
01:08:21.399 --> 01:08:27.439
Usually on the surface, the IORA
will give you many more options than

1016
01:08:27.439 --> 01:08:30.960
a four one K, But the
biggest thing in IORA will do is give

1017
01:08:30.000 --> 01:08:32.640
you the ability to mitigate risk,
which you cannot do in a four one

1018
01:08:32.720 --> 01:08:36.479
K plan. Nice we talked about
the four O one k's before, but

1019
01:08:36.520 --> 01:08:40.479
I feel like it's a terrifying thing
because they just hand it to you.

1020
01:08:40.560 --> 01:08:43.920
Nobody's really looking out for you.
It's the company. They just it's a

1021
01:08:43.920 --> 01:08:45.359
great benefit. But if you don't
know what you're doing with it, well

1022
01:08:45.359 --> 01:08:47.880
that's why there's limited options. And
mostly you can go into a fund you

1023
01:08:47.920 --> 01:08:51.079
can said, do you want to
be really aggressive, moderately aggressive, conservative,

1024
01:08:51.159 --> 01:08:54.800
or just cash? So they give
you those options. But that's why

1025
01:08:54.800 --> 01:08:57.840
he was saying, there's many more
options in an iray that you can do

1026
01:08:58.279 --> 01:09:00.359
than a four oh one K.
But that's mainly the reason, and is

1027
01:09:00.359 --> 01:09:02.960
they throw you on your own.
They can't really the company that's holding they

1028
01:09:02.960 --> 01:09:06.640
can't really tell you much about other
than what's in the fund. So it's

1029
01:09:06.720 --> 01:09:11.720
up to you to educate yourself.
Or we can help too in different ways.

1030
01:09:11.720 --> 01:09:13.960
We can talk to you about what's
going on with it. And the

1031
01:09:14.000 --> 01:09:16.159
employers are not allowed to tell you
what to do. I mean, they're

1032
01:09:16.199 --> 01:09:23.199
not advisors, and the DOL rules
and Department of Label rules make it difficult

1033
01:09:23.199 --> 01:09:27.800
for people and make it very very
restrictive for advisors to tell people what to

1034
01:09:27.840 --> 01:09:30.680
do. But like I said,
odd job is to advise. I'm not

1035
01:09:30.720 --> 01:09:34.319
afraid of advising someone if you do
all the right things. First, what's

1036
01:09:34.319 --> 01:09:38.399
your rich tolerance? How do you
want to be allocated? What's your time

1037
01:09:38.439 --> 01:09:42.279
frame? Can you handle this risk? Can you handle this reward? How

1038
01:09:42.279 --> 01:09:44.680
do you feel a tomorrow if it
goes down this much? How do you

1039
01:09:44.680 --> 01:09:46.359
feel if it goes up this much
and be honest with them, you know

1040
01:09:46.399 --> 01:09:49.560
what I mean. The most common
one we see with the problem with this

1041
01:09:49.680 --> 01:09:53.960
is the TSP, which is a
federal retirement plan, which is like therefore

1042
01:09:54.039 --> 01:09:57.319
one k is because there's about six
funds and then they have the target funds.

1043
01:09:57.479 --> 01:10:00.000
But you call TSP, they have
a tough time getting hold of it

1044
01:10:00.039 --> 01:10:02.439
anybody. They're usually talking to a
chatbot, and then they don't even they're

1045
01:10:02.479 --> 01:10:06.520
not legally able to help you with
anything going on, your allocation anything.

1046
01:10:06.760 --> 01:10:10.159
They can just tell you what the
fund is, what it's called, what

1047
01:10:10.199 --> 01:10:13.079
the ideas of it, and that's
it. So it's up to you.

1048
01:10:13.119 --> 01:10:16.000
And that's why a lot of people
they are timid with the TSP and put

1049
01:10:16.039 --> 01:10:17.640
a lot of it in cash,
and that missed out a lot of market

1050
01:10:17.680 --> 01:10:20.880
games throughout the years because they don't
know what's going on and nobody there can

1051
01:10:20.920 --> 01:10:24.760
help them. We have roughly a
minute left, and we always run out

1052
01:10:24.800 --> 01:10:28.760
of time, but I really would
like you to quickly tell us about this

1053
01:10:28.880 --> 01:10:32.159
process. When people call, what
happens to get them on the road to

1054
01:10:32.399 --> 01:10:34.960
creating this plan. It's a simple
process. You call, we'll set up

1055
01:10:35.000 --> 01:10:38.880
a meeting. The first meeting is
the financial planning meeting where we gather.

1056
01:10:38.920 --> 01:10:42.520
It's information gathering, so we get
all your expenses, your maybe, your

1057
01:10:42.560 --> 01:10:45.159
pensions, your investments, life insurance, mortgages, all that different stuff goes

1058
01:10:45.159 --> 01:10:48.399
into that first plan give you go
through a Monte Carlo simulation which gives you

1059
01:10:48.399 --> 01:10:54.000
a thousand different scenarios of different returns
on where your investments, and that gives

1060
01:10:54.000 --> 01:10:57.840
you a chance with like a shows
a success rate. Then from there we'll

1061
01:10:57.840 --> 01:11:00.720
get your risk Hollerance questionnaire, which
will give you a risk based on one

1062
01:11:00.760 --> 01:11:02.640
of ninety nine. And then from
there we'll build the proposal, which will

1063
01:11:02.640 --> 01:11:05.640
show you our suggestions and how we
would invest your money and how we would

1064
01:11:05.640 --> 01:11:09.479
create your entire financial plan based off
where we're doing, where we would get

1065
01:11:09.479 --> 01:11:12.359
your money from, what we would
invest you in, all those different things.

1066
01:11:12.479 --> 01:11:15.720
It's a three or four meeting process
and a conversation that goes on and

1067
01:11:15.760 --> 01:11:18.319
then and then it goes back and
forth, and then at the end they

1068
01:11:18.359 --> 01:11:21.560
either decide to do business or not
do business, or do partial business or

1069
01:11:21.560 --> 01:11:25.840
not. You know, and we
don't push anybody. You know. They

1070
01:11:25.880 --> 01:11:29.079
say no, they say no,
that's fine, there's coffee, right,

1071
01:11:29.199 --> 01:11:31.079
They say yes, they say yes
coffee. We wouldn't be in business if

1072
01:11:31.560 --> 01:11:38.119
too many people said no. Who
can say no to that base? Listen,

1073
01:11:38.319 --> 01:11:41.319
there is so little risk and make
this call. You will not be

1074
01:11:41.439 --> 01:11:44.000
sorry. Your money matters and this
has been so much fun. Thank you

1075
01:11:44.000 --> 01:11:47.399
for spending time with us. Five
two zero five before four nine zero nights.

1076
01:11:55.880 --> 01:11:59.640
Hello and welcome to Money Matters.
I'm Sarah Peterson here with Dean Greenberg

1077
01:11:59.760 --> 01:12:02.560
and Todd Glick of Greenberg Financial Group. Good morning, gentlemen, Good morning.

1078
01:12:02.640 --> 01:12:06.279
How are you today? We're good, fabulous, fabulous and good all

1079
01:12:06.319 --> 01:12:09.199
good things. Well, we have
so much to talk about. We're going

1080
01:12:09.239 --> 01:12:13.520
to dive right in. Todd is
one of the newer members to your team.

1081
01:12:13.600 --> 01:12:15.239
Right, we've got him before,
he's been there while now, Yeah,

1082
01:12:15.319 --> 01:12:16.840
I mean we love it. We
talk about the team, but we

1083
01:12:16.880 --> 01:12:20.079
have to talk about the all the
players, right and Todd, he knows

1084
01:12:20.119 --> 01:12:23.560
his stuff. So we with Todd, we can get into it, right.

1085
01:12:24.000 --> 01:12:26.159
Yes, we'll get the nitty gritty. We're going to get into the

1086
01:12:26.199 --> 01:12:29.960
nitty gritty. So today we want
to talk about shift in the tax and

1087
01:12:30.000 --> 01:12:31.760
real estate codes, which is something
I know very little about and you know

1088
01:12:31.800 --> 01:12:35.199
a lot about so we're going to
get in this conversation. These are things

1089
01:12:35.199 --> 01:12:38.640
that a lot of people don't know. We've talked about it before, Dean

1090
01:12:38.680 --> 01:12:42.279
and I how this conversation we're having
is not something that most people get at

1091
01:12:42.279 --> 01:12:45.359
home. You don't get this in
school. This is something that people don't

1092
01:12:45.359 --> 01:12:47.479
even know where to start with questions
because they don't know what questions to ask.

1093
01:12:47.960 --> 01:12:50.319
I mean, what we first,
what we know is at the end

1094
01:12:50.319 --> 01:12:54.439
of twenty twenty five, a tax
law that Trump put into act in twenty

1095
01:12:54.479 --> 01:12:57.840
seventeen, which is the Jobs and
Tax Cut Act, that goes away at

1096
01:12:57.840 --> 01:13:00.159
the end of twenty twenty five.
So starting in twenty twenty six, it

1097
01:13:00.159 --> 01:13:03.760
gets reverted back unless the new president
who gets elected or the current one keeps

1098
01:13:03.760 --> 01:13:08.319
it the same. It really depends
on which party gets into office, right,

1099
01:13:08.319 --> 01:13:10.880
and so that's what is really going
to come down to it at the

1100
01:13:10.960 --> 01:13:13.319
end of the day. What's going
to happen in twenty twenty six is the

1101
01:13:13.399 --> 01:13:16.680
state planning gets cut down potentially from
thirteen million where it is currently for a

1102
01:13:16.720 --> 01:13:20.279
couple down to around six and a
half. Okay, so anyone with assets

1103
01:13:20.479 --> 01:13:24.239
net worth more than six and a
half million would have to pay the estate

1104
01:13:24.279 --> 01:13:27.800
tax on top of it, which
is around a bill forty percent, and

1105
01:13:27.800 --> 01:13:30.359
that's right off the top to the
government. And that's just talk about a

1106
01:13:30.399 --> 01:13:32.399
million. Well, yeah, it's
even if they just reverted back to the

1107
01:13:32.600 --> 01:13:35.960
million. Anyone who's net worth is
more than a million, if you try

1108
01:13:36.000 --> 01:13:40.199
to transfer that to your next generation
or your heirs, if it's more than

1109
01:13:40.239 --> 01:13:42.319
a million, you have to pay
forty Your heirs will have to pay forty

1110
01:13:42.319 --> 01:13:44.600
percent. I mean Todays day and
age. A million is like saying,

1111
01:13:45.039 --> 01:13:47.640
you know, a dollar is like
right, which is why when when Trump

1112
01:13:47.680 --> 01:13:50.600
did this, lat he increased the
estate tax from six and a half to

1113
01:13:50.640 --> 01:13:54.279
twelve and a half. Now it's
around thirteen because of inflated adjusted numbers.

1114
01:13:54.479 --> 01:13:58.319
But again it's it's already in the
code to revert back automatically in the start

1115
01:13:58.319 --> 01:14:00.920
of twenty twenty six, start of
twenty twenty six, So people who are

1116
01:14:00.920 --> 01:14:03.760
even thinking about this have an opportunity
between now and then. Yes, and

1117
01:14:03.800 --> 01:14:06.800
that's again what we talk about the
team approach here at Greenberg Financial is we're

1118
01:14:06.800 --> 01:14:11.079
obviously financial advisors, we're not estate
planning attorneys, so we cannot give you

1119
01:14:11.079 --> 01:14:14.199
recommendations or strategies what you should be
doing in those fields. But what we

1120
01:14:14.279 --> 01:14:17.039
can do is work with an estate
planning attorney that has those strategies, has

1121
01:14:17.039 --> 01:14:20.399
the expertise in that field, and
coupled with our financial planning see what's the

1122
01:14:20.399 --> 01:14:24.239
most efficient route for you to take. And that's really what comes down to

1123
01:14:24.239 --> 01:14:27.199
the estate planning side, because then
there's another side of things called a taxes,

1124
01:14:27.359 --> 01:14:29.960
and that's just the day to day
taxes, because what we're talking about

1125
01:14:30.000 --> 01:14:33.439
here is across the board two percent
increase on tax brackets. When twenty twenty

1126
01:14:33.439 --> 01:14:38.399
six starts, it's already just built
into the code. So again who what

1127
01:14:38.560 --> 01:14:42.840
president gets elected in November will obviously
have the decision on what's going to happen

1128
01:14:42.880 --> 01:14:45.600
in this next turn. These are
things that you need to be thinking about

1129
01:14:45.720 --> 01:14:48.279
now because you can do things about
them now until they're too late, right,

1130
01:14:48.319 --> 01:14:50.199
And so those are the type of
things that we want to talk about

1131
01:14:50.199 --> 01:14:55.600
with people because our financial planning tool
actually is able to implement those strategies hypothetically

1132
01:14:55.640 --> 01:14:57.920
and see if it will works,
see if it's efficient, and we can

1133
01:14:57.960 --> 01:15:00.199
play with what happens if tax brackets
increase two percent? What happens if the

1134
01:15:00.279 --> 01:15:04.039
estate tax law gets decreased our financial
planning, so offerre is able for us

1135
01:15:04.039 --> 01:15:08.079
to put in those different variables and
see how it would work out, which

1136
01:15:08.079 --> 01:15:10.520
is incredible. We were just talking, you know, before the show,

1137
01:15:10.520 --> 01:15:14.399
about AI and all these things that
we can do that it's just projecting what

1138
01:15:14.479 --> 01:15:17.039
our lives could be and how they
are, and it's just starting, right.

1139
01:15:17.079 --> 01:15:18.600
I mean, you know a lot
of people say, well, can

1140
01:15:18.600 --> 01:15:21.560
this markets keep going? Can we
still do this? The whole idea is

1141
01:15:21.560 --> 01:15:28.000
I'm looking at AI right now as
being the same thing that computers did back

1142
01:15:28.039 --> 01:15:30.600
in the nineties. I'm not talking
about the eighties and stuff in the seventies

1143
01:15:30.640 --> 01:15:33.000
when we had those big punch cards. I'm talking about the eighties when we

1144
01:15:33.039 --> 01:15:36.680
started getting those personal computers. And
then what was the next thing that happened,

1145
01:15:38.199 --> 01:15:42.920
the iPhone. We all have everything
that we want on our phones,

1146
01:15:42.960 --> 01:15:45.319
so you could operate almost anything you
want from your phone. Do you know

1147
01:15:45.399 --> 01:15:49.199
my daughter writes papers for school on
her phone. Considers that to be a

1148
01:15:49.239 --> 01:15:53.479
computer, right, I think it's
horrible. I'm like, you're gonna hurt

1149
01:15:53.520 --> 01:15:56.279
your eyes, you need to sit
and tight or something. I really feel

1150
01:15:56.319 --> 01:16:00.000
like there's something about the connection between
your brain and your fingertips. That happened.

1151
01:16:00.560 --> 01:16:02.119
We're rushing everything too much. Well, there is something about that connection

1152
01:16:02.159 --> 01:16:05.119
piece, and I think that's why
robo advisors kind of was a fad a

1153
01:16:05.159 --> 01:16:08.119
couple of years ago, and you
don't hear muchbout them anymore, right,

1154
01:16:08.159 --> 01:16:11.359
because people do have that connection to
human to human that they want with an

1155
01:16:11.359 --> 01:16:13.920
advisor. Because what is this whole
industry about at the end of the day,

1156
01:16:14.000 --> 01:16:16.520
it's trust and relationships. So having
that trust and knowing that the person

1157
01:16:16.520 --> 01:16:19.119
acrossing the table is communicating to you
in a way that you can understand.

1158
01:16:19.119 --> 01:16:23.000
It means a lot more to you
than having computer tell you what the most

1159
01:16:23.039 --> 01:16:25.640
optimal outcome is. How does that
make you feel like, Yeah, that's

1160
01:16:25.640 --> 01:16:28.640
what I need to be doing.
The computer doesn't know your kids' names necessarily

1161
01:16:28.720 --> 01:16:30.880
right, what they're into, or
their values, your visions. They don't

1162
01:16:30.920 --> 01:16:33.119
know who you are. Yeah,
if you don't ask questions after a question,

1163
01:16:33.199 --> 01:16:35.479
you never get deep enough of you. We talked about layers all the

1164
01:16:35.520 --> 01:16:40.319
time. Okay, most people are
surface. We go deeper. We want

1165
01:16:40.359 --> 01:16:44.439
those roots in there so we can
grow a relationship together. But the going

1166
01:16:44.479 --> 01:16:47.439
back to what I was saying about
the iPhone and the computer. AI is

1167
01:16:47.520 --> 01:16:49.560
just starting. This is not a
one or two or three year deal.

1168
01:16:50.000 --> 01:16:53.880
Where are we going to be with
AI in ten years? And that's where

1169
01:16:53.880 --> 01:16:57.399
the money's going to be made,
the relationships to the AI of what's going

1170
01:16:57.439 --> 01:17:00.520
on. But with that, I
also want to give caution to everything out

1171
01:17:00.520 --> 01:17:02.680
there that has AI attached. Doesn't
mean you're going to make money all right,

1172
01:17:02.920 --> 01:17:08.399
Stay to the quality, good companies
that have the money to keep going

1173
01:17:08.439 --> 01:17:12.439
forward and keep innovating. All these
little companies, let somebody buy them out.

1174
01:17:12.640 --> 01:17:14.840
Let somebody else pick them up,
because if you have one hundred of

1175
01:17:14.880 --> 01:17:17.279
them, three of them are going
to be great. And at the end

1176
01:17:17.319 --> 01:17:19.760
of the day, if you try
to start making money off all these little

1177
01:17:19.760 --> 01:17:23.800
companies, it's the greatest idea.
Everybody calls you and tries to sell you

1178
01:17:23.840 --> 01:17:27.760
something, you're going to maybe be
lucky enough to win, but you're probably

1179
01:17:27.800 --> 01:17:30.800
going to end up losing. Just
like dot Com. Everything was dot com

1180
01:17:30.840 --> 01:17:32.399
dot com dot com. It all
went up there for a while, and

1181
01:17:32.439 --> 01:17:35.520
then what happened. A lot of
them got beat up and got crushed.

1182
01:17:35.800 --> 01:17:40.880
So be careful with the AI market
right now. Thank you for that.

1183
01:17:41.479 --> 01:17:44.239
I didn't think that's where we were
heading out. There's also a really cool

1184
01:17:44.239 --> 01:17:46.520
AI tool in the financial planning software
we use called Supersolve, And so if

1185
01:17:46.520 --> 01:17:49.640
we have a plan that doesn't work
on surface value, it would actually change

1186
01:17:49.680 --> 01:17:51.880
all kinds of different variables. Do
we need to spend less, do we

1187
01:17:51.880 --> 01:17:55.520
need to get more aggressive, do
we need to do some strategies. It

1188
01:17:55.560 --> 01:17:59.239
will basically create a simulation of what
you what it thinks you should do.

1189
01:17:59.359 --> 01:18:00.479
And for advice, it's really just
a tool, right, so Okay,

1190
01:18:00.479 --> 01:18:02.640
this is what it thinks it should
do. Maybe that's not what we're actually

1191
01:18:02.640 --> 01:18:05.199
going to do, but it gives
us ideas and instead of because at the

1192
01:18:05.239 --> 01:18:06.800
end of the day, you just
have a human brain, right, you

1193
01:18:06.840 --> 01:18:10.439
can only think about what you're thinking
about. But with the tools of AI

1194
01:18:10.760 --> 01:18:14.319
coupled with the human brain, right, having the emotional side coupled with the

1195
01:18:14.399 --> 01:18:18.039
informational data side of things really brings
everything into one beautiful picture. And now

1196
01:18:18.039 --> 01:18:23.039
you know why I have young guys
bottom team say that I'm seeing the big

1197
01:18:23.079 --> 01:18:25.880
picture here. We always run out
of time. We are already ready for

1198
01:18:25.920 --> 01:18:27.880
our first commercial break. So I
want to give you that phone number.

1199
01:18:27.880 --> 01:18:30.319
It's five two zero five four four
four nine zero nine. And speaking of

1200
01:18:30.359 --> 01:18:32.800
technology, we have a lovely QR
code at the bottom of the screen.

1201
01:18:32.840 --> 01:18:35.800
You can scan that. I'll take
you right to Greenberg Money Matters and you

1202
01:18:35.840 --> 01:18:40.000
can fill out the form to get
in here and get your financial plan that

1203
01:18:40.079 --> 01:18:43.119
is going to tell you whether or
not you're on the right path to the

1204
01:18:43.159 --> 01:18:45.680
retirement of your dreams or whether you
need to make some changes. Now is

1205
01:18:45.680 --> 01:18:47.840
the time when the sun is shining. Stay with us. We're going to

1206
01:18:47.880 --> 01:18:50.760
take a quick break. We'll come
back talk more about all the changes in

1207
01:18:51.159 --> 01:18:57.520
the financial industry and how we're going
to help you prepare for them. Hello,

1208
01:18:57.600 --> 01:19:00.159
and welcome back to Money Matters.
I'm Sarah Peterson here with a dynamic

1209
01:19:00.279 --> 01:19:04.199
duo Dean Greenberg and tuglic of Greenberg
Financial Group, and we are getting into

1210
01:19:04.199 --> 01:19:08.439
it. I love how you guys
have such a different take. It's so

1211
01:19:08.520 --> 01:19:10.760
awesome to see this yin and yang
and this is what we need, this

1212
01:19:10.960 --> 01:19:15.319
next generation that has a super interest
in how technology plays a part in the

1213
01:19:15.399 --> 01:19:16.000
FEA And to me, the way
you're going to get it this is if

1214
01:19:16.000 --> 01:19:19.159
you get young, small people with
you, you know, and that's part

1215
01:19:19.199 --> 01:19:23.279
of the team you're building a team. I put the right players in place.

1216
01:19:23.319 --> 01:19:26.680
That's what I keep telling everyone that
keeps saying that to them, And

1217
01:19:26.720 --> 01:19:29.439
I keep getting the feedback from the
people that come in to do a financial

1218
01:19:29.439 --> 01:19:30.960
plan. They're like, Wow,
I can't believe how great this is.

1219
01:19:31.680 --> 01:19:34.359
You know, I've always sid I
don't think it's ever you're ever too young

1220
01:19:34.760 --> 01:19:38.359
to start planning. But I can
also see how people will you know,

1221
01:19:38.399 --> 01:19:40.560
approach you in a different way too. I'm sure that you can connect with

1222
01:19:40.760 --> 01:19:44.239
younger people and help them to understand
that what you do now can impact your

1223
01:19:44.319 --> 01:19:47.079
financial future. It's really cool that
we have all these tools in our toolbox.

1224
01:19:47.079 --> 01:19:49.239
We just need to learn how to
use them. So before break we

1225
01:19:49.239 --> 01:19:53.600
were talking about potential changes. We
don't have a crystal ball, but we

1226
01:19:53.640 --> 01:19:56.760
do know that there will be changes
in the text code that is the plan

1227
01:19:56.920 --> 01:20:00.119
at least, well, no changes, we hope exactly. So in the

1228
01:20:00.159 --> 01:20:03.319
event of these changes or you know, if not, we still need to

1229
01:20:03.359 --> 01:20:06.840
make plans and we have a lot
of tools at our disposal. Yeah,

1230
01:20:06.880 --> 01:20:10.720
so let's talk about a first couple. One that comes to mind is so

1231
01:20:10.800 --> 01:20:13.359
something everyone likes to talk about roth
conversions. Right, when does it make

1232
01:20:13.399 --> 01:20:15.800
sense, is really what it comes
down to. And that's why financial plan

1233
01:20:15.880 --> 01:20:17.920
where we bring it back to,
because this financial planning software has a tax

1234
01:20:17.960 --> 01:20:20.920
planning tool where we can actually put
in roth conversions. Say we do twenty

1235
01:20:20.920 --> 01:20:24.079
thousand for the first year, or
we do it for five years, and

1236
01:20:24.119 --> 01:20:27.000
we can see how much you We
can project how much taxes you'll pay on

1237
01:20:27.000 --> 01:20:29.720
a rock conversion, how much taxes
it will save you in lifetime taxes in

1238
01:20:29.800 --> 01:20:31.600
terms of tax free growth, or
whether or not we're paying taxes at a

1239
01:20:31.640 --> 01:20:34.720
smaller rate. Right, like I
said before the break, if taxes brackets

1240
01:20:34.720 --> 01:20:38.199
all increase across the board by two
percent, well then you're talking at least

1241
01:20:38.199 --> 01:20:40.720
two percent savings right off the bat
if you did a roth conversion before they

1242
01:20:40.800 --> 01:20:43.840
change those tax brackets. So potentially
there's one right there. But again,

1243
01:20:43.920 --> 01:20:47.920
roth conversions can just be a beneficial
strategy without any tax changes in the horizon.

1244
01:20:48.119 --> 01:20:51.319
And that's all can be seen with
the financial plan because the Noto Carlo

1245
01:20:51.399 --> 01:20:55.920
simulation that we use takes a thousand
simulation of market returns good and bad and

1246
01:20:55.960 --> 01:20:59.279
can see does that tax free growth
actually lead to more tax savings than it

1247
01:20:59.279 --> 01:21:01.159
does from just pay the taxes up
front. And that's another thing about people

1248
01:21:01.319 --> 01:21:04.520
don't you know, really consider with
rock conversions, is when you do a

1249
01:21:04.600 --> 01:21:08.680
rock conversion and it gets added to
your adjusted gross income, your tax will

1250
01:21:08.720 --> 01:21:12.119
income. What does that effect Medicare
premiums? And then that light bulb goes

1251
01:21:12.119 --> 01:21:14.960
off, Oh snap, i might
be paying three hundred dollars more a month

1252
01:21:15.079 --> 01:21:16.720
because I'm showing up more income on
my bracket because it's a two year look

1253
01:21:16.760 --> 01:21:19.319
black. That's how medicare, you
know, works. So the minute they

1254
01:21:19.359 --> 01:21:21.840
looked at two years and see that
rock conversion and you're one twenty thousand,

1255
01:21:21.840 --> 01:21:25.359
all of a sudden with the two
forty you're in a different Medicare bracket.

1256
01:21:25.359 --> 01:21:27.640
Now you're paying more for those premiums. So how much did that tax savings

1257
01:21:27.720 --> 01:21:30.279
really give you in terms of the
extra cost and of Medicare On the other

1258
01:21:30.319 --> 01:21:31.640
side, we can play those numbers
and actually look at it. And so

1259
01:21:31.640 --> 01:21:33.960
those are a couple of things that
you know, just because the rock conversion

1260
01:21:33.960 --> 01:21:36.560
sounds good on paper doesn't mean it
always is. Right. There's people that

1261
01:21:36.760 --> 01:21:40.319
start rm d's and they're trying to
do rock conversions. How are you gonna

1262
01:21:40.359 --> 01:21:43.159
do it right? You're showing too
much income, there's not gonna be savings.

1263
01:21:43.239 --> 01:21:45.920
But if certain circumstances, and this
is really the bread and butter for

1264
01:21:45.000 --> 01:21:48.039
rock versions. I think if you
are in your sixties, you've retired,

1265
01:21:48.279 --> 01:21:51.199
you're not showing a lot of income
because you haven't started Social Security, right,

1266
01:21:51.359 --> 01:21:54.720
don't. You don't have any real
other income coming in. That's where

1267
01:21:54.720 --> 01:21:56.920
you have a lot of room to
be able to do rock conversions and get

1268
01:21:56.960 --> 01:22:00.359
around those pesky r and ds which
people don't know about their required minimum distributions,

1269
01:22:00.359 --> 01:22:02.479
and they're coming for you. Most
of us it's around seventy five,

1270
01:22:02.520 --> 01:22:05.000
but it can be seventy three to
seventy five. It's based on your age,

1271
01:22:05.039 --> 01:22:08.199
but for most of us it's gonna
happen at seventy five. Right,

1272
01:22:08.199 --> 01:22:10.439
and you have no choice. You're
taking about three or four percent out each

1273
01:22:10.479 --> 01:22:13.319
year. Di I arrest mandates it, so instead of paying taxes. Then

1274
01:22:13.479 --> 01:22:15.119
when you don't have a choice,
it could be potentially beneficial for you to

1275
01:22:15.159 --> 01:22:17.960
do it. Now, you know
it's so much if it's about timing,

1276
01:22:18.000 --> 01:22:21.399
it's not how much you have,
but it's where it is and when you

1277
01:22:21.520 --> 01:22:25.159
utilize it. So this is why
it's so important. To have a professional

1278
01:22:25.279 --> 01:22:29.560
I got a question, really statement, A lot of people can't do loss.

1279
01:22:29.960 --> 01:22:31.600
They make too much money. Okay, you make what one hundred and

1280
01:22:31.640 --> 01:22:34.720
forty four thousand or something like that. Single? Yeah, yeah, joint

1281
01:22:34.720 --> 01:22:38.319
it's about two twenty. You know, you make more than that, you

1282
01:22:38.319 --> 01:22:42.199
can't do a loth. However,
there is a loophole. It's called a

1283
01:22:42.239 --> 01:22:44.479
back door wroth, and we've been
doing more and more of these, and

1284
01:22:44.520 --> 01:22:47.880
the reason being is if you believe
like we do, there's a great chance

1285
01:22:48.119 --> 01:22:50.359
the only way we're paying for a
lot of this debt and everything else we

1286
01:22:50.439 --> 01:22:54.760
got going on is because they're gonna
have to weigh saxes. There's nothing better

1287
01:22:54.960 --> 01:22:58.560
than to pay the taxes now on
the money you have and do this back

1288
01:22:58.600 --> 01:23:01.640
door loth where you could stop putting
money in that every penny you earn for

1289
01:23:01.680 --> 01:23:03.239
the rest of your life, and
then when you take it out, you'll

1290
01:23:03.279 --> 01:23:06.560
never have to pay taxes. Yeah, I mean, the conventional idea of

1291
01:23:06.600 --> 01:23:09.800
these things is, you know,
I'm going to put money into a traditional

1292
01:23:09.880 --> 01:23:11.720
ira and then when I retire,
I'm going to take it out at a

1293
01:23:11.760 --> 01:23:14.840
lower tax bracket. But what people
don't understand is inflation is when you are

1294
01:23:14.880 --> 01:23:16.439
retiring and you're probably taking out just
them ount the same. So, like

1295
01:23:16.479 --> 01:23:19.399
Dean said, doing that WROTH is
so beneficial because of the tax free growth

1296
01:23:19.439 --> 01:23:23.239
you get with it. And what
he's talking about is for those higher income

1297
01:23:23.239 --> 01:23:26.640
earners, you can still contribute to
an IRA. A regular non deductible IRA

1298
01:23:26.760 --> 01:23:28.760
is actually what they call it,
because once you get over a certain income

1299
01:23:28.800 --> 01:23:32.239
threshold, you cannot actually deduct your
IRA contribution from your taxes, which means

1300
01:23:32.239 --> 01:23:34.920
it's not a pre tax contribution.
It's actually an after tax contribution. But

1301
01:23:34.960 --> 01:23:38.640
it still goes into the traditional IRA
if you do it in the same year.

1302
01:23:38.680 --> 01:23:41.880
What we can do is do a
backdoor WROTH. IRS knows about it.

1303
01:23:41.880 --> 01:23:44.319
They're completely cool with it as long
as you follow all the rules.

1304
01:23:44.399 --> 01:23:46.239
You're doing a ROTH conversion, right, So you put in the limit of

1305
01:23:46.319 --> 01:23:48.319
you know, I think of this
year, it's around seven thousand. You

1306
01:23:48.359 --> 01:23:51.640
put seven thousand into a non deductible
IRA. It doesn't get deducted off your

1307
01:23:51.640 --> 01:23:55.319
taxes, it's just sitting in there. And then you take that seven thousand,

1308
01:23:55.359 --> 01:23:57.840
put it into a WROTH the same
year, and then that grows tax

1309
01:23:57.880 --> 01:24:00.039
free for the rest of your life. So for the people that think that

1310
01:24:00.039 --> 01:24:02.640
they're not eligible. We're going to
take a quick commercial break because we always

1311
01:24:02.680 --> 01:24:04.720
run out of time. I want
to make sure we can get to all

1312
01:24:04.720 --> 01:24:10.039
your viewer questions that numbers five two
zero five four four four nine zero nine.

1313
01:24:10.159 --> 01:24:13.319
Give us a call and we can
get you on the path to retirement.

1314
01:24:13.319 --> 01:24:15.760
There is literally no risk, and
I hope you'll stay with us because

1315
01:24:15.760 --> 01:24:25.920
we're going to get to some of
the nitty gritty questions. Hello, and

1316
01:24:25.960 --> 01:24:30.279
welcome back to Money Matters. I'm
Sarah Peterson here with Dean Greenberg and Todd

1317
01:24:30.279 --> 01:24:34.039
Glick of Greenberg Financial Group, and
we are just talking about all the tools

1318
01:24:34.039 --> 01:24:38.800
in the toolbox to get us to
where we need to be for financial planning

1319
01:24:38.800 --> 01:24:43.079
for a retirement. We talked about
roth conversions, we talked about backdoor rods.

1320
01:24:43.319 --> 01:24:45.520
Is there anything else that we are
missing out on that you know is

1321
01:24:45.520 --> 01:24:48.239
a newer tool. It's not a
newer tool. It's been around for a

1322
01:24:48.279 --> 01:24:51.680
long time. But it's just called
a qualified charitable distribution for the people that

1323
01:24:51.720 --> 01:24:55.520
are more charitably inclined. If they
don't want to take the R and D

1324
01:24:55.640 --> 01:24:58.760
to show up on their tax bil
income, they can simply donate their R

1325
01:24:58.800 --> 01:25:01.079
and D to a charity. The
charity doesn't have to pay taxes. You

1326
01:25:01.119 --> 01:25:03.439
don't have to pay taxes. You
don't get the money, but the charity

1327
01:25:03.479 --> 01:25:08.600
gets it and it makes you feel
good and it maybe doesn't impact your medicare

1328
01:25:08.680 --> 01:25:11.560
premiums. If you're really close to
the next bracket or something and you don't

1329
01:25:11.560 --> 01:25:15.319
want to take on that extra income, you can do a qualified charitable distribution.

1330
01:25:15.920 --> 01:25:18.680
Let's talk about annuities too, because
a lot of people talk about annuities

1331
01:25:19.920 --> 01:25:27.039
when it comes to saving on taxes. Annuities in the right situation are good,

1332
01:25:28.279 --> 01:25:31.560
especially when you need to fill in
your income gap. That's probably the

1333
01:25:31.600 --> 01:25:38.319
most important thing. What gets me
about annuities is when people are trying to

1334
01:25:38.359 --> 01:25:42.800
talk about because if you're afraid of
the market, you won't lose any money.

1335
01:25:43.239 --> 01:25:45.840
You won't make any money, all
right, So, especially in an

1336
01:25:45.840 --> 01:25:50.319
IOA, putting an annuity in an
iora to not make anything more on the

1337
01:25:50.359 --> 01:25:54.880
average than you can make in government
bonds right now makes no sense to me.

1338
01:25:55.560 --> 01:26:02.199
None. However, there are things
called mygas that are basically like annuity

1339
01:26:02.199 --> 01:26:08.079
CD that pays you and guaranteed by
the insurance company. What about five point

1340
01:26:08.159 --> 01:26:12.039
two five point five percent right now, and the five years seven years longer,

1341
01:26:12.760 --> 01:26:15.640
those we don't have a problem with
because they will be tax deferred,

1342
01:26:15.720 --> 01:26:18.560
especially outside there, and you don't
have to pay taxes and grow and then

1343
01:26:18.560 --> 01:26:20.960
you can use it for your emergency
money. You can always take out ten

1344
01:26:20.960 --> 01:26:28.159
percent if you need it. But
these the fixed index annuities. If you're

1345
01:26:28.199 --> 01:26:31.239
taking money from the fixed income side, okay, But if you're taking it

1346
01:26:31.319 --> 01:26:36.880
from your growth side because you're so
afraid of the market and you're not going

1347
01:26:36.960 --> 01:26:40.479
to make anything even though they try
to tell you you can make four or

1348
01:26:40.479 --> 01:26:45.239
six percent, very rarely will you
because this at the end, and the

1349
01:26:45.319 --> 01:26:48.600
only thing I'm going to agree with
like Fisher Investments and those guys that talk

1350
01:26:48.760 --> 01:26:53.479
so bad about annuities, is that
if you don't read the fine print,

1351
01:26:53.880 --> 01:26:58.479
you don't understand the annuity. And
maybe two percent of people actually understand the

1352
01:26:58.560 --> 01:27:04.159
fine print when there's so many restrictions, and then and the annuity companies can

1353
01:27:04.199 --> 01:27:09.239
slide the interest rates up and down. As interestrates go up and down,

1354
01:27:10.159 --> 01:27:14.399
that is everything against the customer.
That probably bothers me the most. But

1355
01:27:14.439 --> 01:27:16.960
if you're getting into a fix indexinuity
with the idea that you can make some

1356
01:27:17.079 --> 01:27:21.840
money, but really for the guaranteed
income, whether it's three years, five

1357
01:27:21.920 --> 01:27:25.960
years, ten years, whatever you
need it for, then I'm all about

1358
01:27:26.000 --> 01:27:30.439
that. And because they will give
you that income stream that you need for

1359
01:27:30.479 --> 01:27:32.239
the rest of your life, no
matter if you run through all your principle

1360
01:27:32.319 --> 01:27:36.000
or not, they will always give
you that. And that's good. But

1361
01:27:36.079 --> 01:27:40.079
when you're trying to get it for
because of protection, there's so many other

1362
01:27:40.119 --> 01:27:44.079
ways you can protect and mitigate risk
and get the upside when you can do

1363
01:27:44.119 --> 01:27:47.119
You think annuities have just gotten a
bad reputation because people don't understand them.

1364
01:27:47.800 --> 01:27:51.039
Well, I think the nwity's got
a bad reputation because they made it a

1365
01:27:51.039 --> 01:27:55.800
bad reputation. A lot of them, aren't. You know. You got

1366
01:27:55.800 --> 01:28:00.319
a lot of lower level annuities promising
you all this stuff and can for fill

1367
01:28:00.319 --> 01:28:04.079
it because it's not even an index. All right, they say we're matching

1368
01:28:04.119 --> 01:28:08.239
the index and you'll get sixty percent
of the S and P five hundred.

1369
01:28:09.079 --> 01:28:12.840
But then they can change that as
interstrates go up and down. They can

1370
01:28:12.880 --> 01:28:15.880
move it from sixty to forty,
or they can move it up. If

1371
01:28:15.880 --> 01:28:17.920
interistrates go higher, you make more. If interistrates go lower. Do it?

1372
01:28:17.920 --> 01:28:20.640
So, if you think the market's
going to go down, interstrates will

1373
01:28:20.680 --> 01:28:24.800
probably go down because then they have
to lower interest rates because we're in a

1374
01:28:24.800 --> 01:28:28.640
bad scenario. Then your annuity isn't
doing what you expected it to do.

1375
01:28:29.880 --> 01:28:33.479
Yes, you don't lose money if
that's the only thing you're looking at by

1376
01:28:33.600 --> 01:28:38.319
government bonds. You don't have to
pay state tax on it anyway. All

1377
01:28:38.399 --> 01:28:42.279
right, it's better than a CD. There's other ways to do things than

1378
01:28:42.359 --> 01:28:45.439
to be able to do that.
Do it roth? All right? I

1379
01:28:45.520 --> 01:28:49.600
mean there's other ways than just buying
those. Do I think annuities are good

1380
01:28:49.600 --> 01:28:54.000
in certain places? Absolutely? Do? I think there's some good annuities out

1381
01:28:54.039 --> 01:28:57.359
there. Yet, Do I think
the annuities are better today than they want?

1382
01:28:57.479 --> 01:28:59.880
Yes? And there are people that
come in and say, listen,

1383
01:29:00.439 --> 01:29:03.479
I don't want anything to do with
the market, but I want an annuity.

1384
01:29:03.840 --> 01:29:08.279
We'll find the best annuity for them. That's how it works. Well,

1385
01:29:08.319 --> 01:29:10.840
I was going to ask you if
you were a question, but let's

1386
01:29:10.880 --> 01:29:13.880
just try to get to this one. I love this question because I feel

1387
01:29:13.920 --> 01:29:16.600
like this is on a lot of
people's minds. I'm exactly five years away

1388
01:29:16.640 --> 01:29:20.079
from retirement and do not have a
plan in place. Is it too late

1389
01:29:20.119 --> 01:29:25.359
for me? Absolutely not. I
mean that's probably the most people that walk

1390
01:29:25.399 --> 01:29:28.680
in our door are probably around five
years away from retirement. And the reason

1391
01:29:28.720 --> 01:29:30.479
being is because, I mean,
you don't want to really think about something

1392
01:29:30.560 --> 01:29:34.000
until it's kind of close to it. If you think about retirement fifteen years

1393
01:29:34.039 --> 01:29:38.399
out, eventually you realize it's still
fifteen years out, and you get kind

1394
01:29:38.399 --> 01:29:42.119
of sad. Right, So most
people they honestly start thinking about retirement five

1395
01:29:42.159 --> 01:29:44.560
years out and that there's plenty of
time to think about it. Right.

1396
01:29:44.560 --> 01:29:46.760
You still have a long runway of
four to one K contributions coming in the

1397
01:29:46.760 --> 01:29:50.119
door. We can change those contribution
percentages if we need to to up them,

1398
01:29:50.159 --> 01:29:53.840
whatever we need to do. But
it actually is perfect because we can

1399
01:29:53.960 --> 01:29:57.159
then lay out a strategy and make
changes if we need to. Instead of

1400
01:29:57.159 --> 01:30:00.880
you coming one year in front before
retirement. The only reason somebody won't come

1401
01:30:00.920 --> 01:30:03.920
to us or anybody else for a
financial plan with five years ago. They're

1402
01:30:03.920 --> 01:30:08.600
afraid to know the truth. They're
afraid to know if they can retire or

1403
01:30:08.640 --> 01:30:11.119
not. And to me, I
say, that's ridiculous. Your might as

1404
01:30:11.119 --> 01:30:14.720
well know where you're at beforehand.
That means you've got to work two or

1405
01:30:14.720 --> 01:30:17.800
three more years to get to the
goals you want. Fine, If that

1406
01:30:17.840 --> 01:30:19.960
means you might not ever get there, then we have to come up with

1407
01:30:20.000 --> 01:30:25.520
a plan on how you're going to
retire and spend, you know, because

1408
01:30:25.600 --> 01:30:29.479
the idea is if you're going to
go into debt when you're retired, it's

1409
01:30:29.479 --> 01:30:32.079
going to snowball and the stress level
is going to be off the charts.

1410
01:30:32.159 --> 01:30:35.039
Yeah, ignorance is bliss, but
if you fail to plan, you plan

1411
01:30:35.079 --> 01:30:43.640
to fail, so to to He's
so wise and so young. Just love

1412
01:30:43.680 --> 01:30:46.560
it. I actually love that there
is this. You have such a great

1413
01:30:46.640 --> 01:30:49.640
grasp of this at such a young
age because I think that you know,

1414
01:30:49.680 --> 01:30:54.159
I'm trying to teach my children.
I would like them to know from now,

1415
01:30:54.359 --> 01:30:57.920
you know, they buy something,
I want them to understand what taxes

1416
01:30:57.920 --> 01:31:00.199
are. I want them to understand
there's always implications to the money you earn

1417
01:31:00.199 --> 01:31:02.880
and the money you spend. And
my Todd for dinner, he'll teach your

1418
01:31:02.960 --> 01:31:08.720
kids. Yeah, he doesn't look
like he hates that much, So I

1419
01:31:08.840 --> 01:31:13.840
think I can afford its marathons.
I love it well. And then he

1420
01:31:13.880 --> 01:31:17.039
could teach them some discipline too.
One thing that I think we get from

1421
01:31:17.079 --> 01:31:21.359
you guys is there is a real
family aspect of this business and a real

1422
01:31:21.399 --> 01:31:25.720
team effort, and you really get
to know your clients. It's so important.

1423
01:31:25.760 --> 01:31:27.920
I know for me, I would
really want to know that somebody had

1424
01:31:27.920 --> 01:31:30.520
my best interest at heart when it
comes to my finances, and no computer

1425
01:31:30.600 --> 01:31:33.560
can really do that, right,
So that's what it's only your best interest.

1426
01:31:33.640 --> 01:31:38.000
We love that we know what we're
doing. My young guys know what

1427
01:31:38.000 --> 01:31:42.039
they're doing. They read, they
learn, they study, they ask questions.

1428
01:31:42.079 --> 01:31:45.319
It's very important. Absolutely. Well, you know what that phone number

1429
01:31:45.319 --> 01:31:47.640
has been at the bottom of the
screen and I haven't addressed it. It

1430
01:31:47.720 --> 01:31:51.840
is five two zero five four four
four nine zero nine. We also have

1431
01:31:51.920 --> 01:31:55.039
a QR code at the bottom of
the screen. You can scan that.

1432
01:31:55.399 --> 01:31:58.840
It will take you to Greenberg moneymatters
dot com. It will help you get

1433
01:31:59.000 --> 01:32:01.399
right on the road to figuring out
if you are where you need to be

1434
01:32:01.720 --> 01:32:05.800
and what we're offering. Other people
charge thousands of dollars or more for And

1435
01:32:05.880 --> 01:32:09.600
you guys give this as a gift
to the people who watch the show for

1436
01:32:09.680 --> 01:32:13.000
taking the time to educate yourself with
us. So Thank you for spending the

1437
01:32:13.039 --> 01:32:15.720
time, and we hope that you'll
join us on the next show. Enjoy

1438
01:32:15.800 --> 01:32:49.439
your road to retirement. We'll see
you soon. Hello, and welcome back

1439
01:32:49.439 --> 01:32:54.720
to Money Matters. I'm Sarah Peterson
here with a dynamic duo Dean Greenberg and

1440
01:32:54.840 --> 01:32:57.800
Toddle of Greenberg Financial Group, and
we are getting into it. I love

1441
01:32:58.279 --> 01:33:00.399
how you guys have such a different
take. It's so awesome to see this

1442
01:33:00.479 --> 01:33:02.880
yin and yang, and this is
what we need, this next generation that

1443
01:33:02.920 --> 01:33:08.079
has a super interest in how technology
plays a part in theater. And to

1444
01:33:08.119 --> 01:33:09.399
me, the only way you're going
to get it this is if you get

1445
01:33:09.439 --> 01:33:12.520
young, smack people with you,
you know, and that's part of the

1446
01:33:12.520 --> 01:33:15.479
team. You're building a team.
I put the right plays in place.

1447
01:33:15.479 --> 01:33:17.960
That's what I keep telling everyone that
keeps saying that to them, and I

1448
01:33:18.039 --> 01:33:20.760
keep getting the feedback from the people
that come in to do a financial plan.

1449
01:33:20.800 --> 01:33:24.920
They're like, Wow, I can't
believe how great is this. You

1450
01:33:24.960 --> 01:33:28.000
know, I've always said I don't
think it's ever you're ever too young to

1451
01:33:28.039 --> 01:33:30.880
start planning. But I can also
see how people will you know, approach

1452
01:33:30.920 --> 01:33:32.239
you in a different way too.
I'm sure that you can connect with younger

1453
01:33:32.239 --> 01:33:35.920
people and help them to understand that
what you do now can impact your financial

1454
01:33:35.920 --> 01:33:40.239
future. It's really cool that we
have all these tools in our toolbox.

1455
01:33:40.279 --> 01:33:42.560
We just need to learn how to
use them. So before break we were

1456
01:33:42.560 --> 01:33:45.920
talking about potential changes. We don't
have a crystal ball, but we do

1457
01:33:45.960 --> 01:33:47.960
know that there will be changes in
the text code. That is the plan

1458
01:33:48.079 --> 01:33:53.199
at least, well, no changes, we hope exactly. So in the

1459
01:33:53.319 --> 01:33:56.479
event of these changes or you know, if not, we still need to

1460
01:33:56.520 --> 01:34:00.359
make plans and we have a lot
of tools at our disposal. So let's

1461
01:34:00.359 --> 01:34:02.159
talk about a first couple of one
that comes to mind. Is so something

1462
01:34:02.199 --> 01:34:04.560
oh, everyone likes to talk about
Roth conversions, right when does it make

1463
01:34:04.600 --> 01:34:06.960
sense? Is really what it comes
down to. And that's why financial plan

1464
01:34:08.039 --> 01:34:11.119
where you bring it back to,
because this financial planning software has a tax

1465
01:34:11.119 --> 01:34:14.079
planning tool where we can actually put
in roth conversions. Say we do twenty

1466
01:34:14.079 --> 01:34:15.239
thousand for the first year, or
we do it for five years, and

1467
01:34:15.279 --> 01:34:18.159
we can see how much you We
can project how much taxes you'll pay on

1468
01:34:18.199 --> 01:34:20.920
a Roth conversion, how much taxes
it will save you in lifetime taxes in

1469
01:34:20.960 --> 01:34:24.800
terms of tax free growth, or
whether or not we're paying taxes at a

1470
01:34:24.800 --> 01:34:27.880
smaller rate. Right, like I
said before the break, if taxes brackets

1471
01:34:27.880 --> 01:34:30.359
all increase across the board by two
percent, well then you're talking at least

1472
01:34:30.359 --> 01:34:31.920
two percent savings right off the bat
if you did a Roth conversion before they

1473
01:34:31.960 --> 01:34:35.039
change those tax brackets. So potentially
there's one right there. But again,

1474
01:34:35.119 --> 01:34:41.119
roth conversions can just be a beneficial
strategy without any tax changes in the horizon.

1475
01:34:41.279 --> 01:34:44.520
And that's all can be seen with
the financial plan because the Motho Carlo

1476
01:34:44.560 --> 01:34:47.079
simulation that we use takes a thousand
simulation of market returns good and bad and

1477
01:34:47.159 --> 01:34:50.439
can see does that tax free growth
actually lead to more tax savings than it

1478
01:34:50.479 --> 01:34:54.399
does from just paying the taxes upfront? And that's another thing about people,

1479
01:34:54.479 --> 01:34:57.920
don't you know, really consider with
Roth conversions is when you do a rock

1480
01:34:57.960 --> 01:35:00.159
conversion and it gets added to your
adjusted growth income, your taxable income,

1481
01:35:00.199 --> 01:35:03.439
what does that effect medicare premiums?
And then that light bulb goes off,

1482
01:35:03.479 --> 01:35:06.640
Oh snap, i might be paying
three hundred dollars more a month because I'm

1483
01:35:06.640 --> 01:35:10.079
showing up more income on my bracket
because it's a two year look back.

1484
01:35:10.119 --> 01:35:12.800
That's how medicare, you know,
works. So the minute they looked at

1485
01:35:12.800 --> 01:35:15.159
two years and see that rock conversion, and your one twenty thousand all of

1486
01:35:15.199 --> 01:35:16.640
a sudden went to two forty.
You're in a different medicare bracket. Now

1487
01:35:16.640 --> 01:35:19.039
you're paying more for those premiums.
So how much did that tax savings really

1488
01:35:19.119 --> 01:35:21.880
give you in terms of the extra
cost and of medicare On the other side,

1489
01:35:23.000 --> 01:35:24.960
we can play those numbers and actually
look at it. And so those

1490
01:35:24.960 --> 01:35:27.359
are a couple of things that you
know, just because the rock conversion sounds

1491
01:35:27.399 --> 01:35:30.159
good on paper doesn't mean it always
is. Right. There's people that start

1492
01:35:30.239 --> 01:35:31.600
rm d's and they're trying to do
rock conversions. How are you gonna do

1493
01:35:31.600 --> 01:35:34.359
it right? You're showing too much
income, there's not gonna be savings.

1494
01:35:34.399 --> 01:35:38.720
But if certain circumstances, this is
really the bread and butter for rock versions.

1495
01:35:38.760 --> 01:35:41.720
I think if you are in your
sixties, you've retired, you're not

1496
01:35:41.720 --> 01:35:44.720
showing a lot of income because you
haven't started solid security, right, don't

1497
01:35:44.720 --> 01:35:46.199
You don't have any real other income
coming in. That's where you have a

1498
01:35:46.199 --> 01:35:48.920
lot of room to be able to
do rock conversions and get around those pesky

1499
01:35:49.159 --> 01:35:53.520
r and ds which people don't know
about. They're called required minimum distributions,

1500
01:35:53.520 --> 01:35:55.760
and they're coming for you. Most
of us it's around seventy five, but

1501
01:35:55.800 --> 01:35:58.199
it can be seventy three to seventy
five. It's based on your age,

1502
01:35:58.199 --> 01:36:00.800
but for most of us it's gonna
happen at seventy five and you have no

1503
01:36:00.880 --> 01:36:02.319
choice. You're taking about three to
four percent out each year that I arrest

1504
01:36:02.359 --> 01:36:05.560
mandates it, so instead of paying
taxes then when you don't have a choice,

1505
01:36:05.640 --> 01:36:08.800
it could be potentially beneficial for you
to do it now.