Mitigating Risk and Finding Support in a Volatile Market

WEBVTT100:00:00.080 --> 00:00:03.560Good morning, everybody. This isthe Money Matter Show. It's Sunday morning,200:00:03.560 --> 00:00:10.320eight o'clock right here on seven ninetyknst. Over the next two hours,300:00:10.359 --> 00:00:13.439we're going to try to bring youour opinions, our ideas. What's400:00:13.480 --> 00:00:18.079going on in the markets and howit's being affected by everything going on.500:00:18.160 --> 00:00:22.480And man, is there a lotgoing on. You try to look at600:00:22.519 --> 00:00:25.800out there and you go wow,no, wonder the markets going down.700:00:26.359 --> 00:00:30.000We had the chairman of the FederalReserve that just wants to break it,800:00:30.600 --> 00:00:37.000break the economy. We've got thewar that keeps getting worse over in the900:00:37.000 --> 00:00:42.320Middle East than they talk about escalation. We got the other war in Ukraine.1000:00:42.560 --> 00:00:49.600We got Russia talking about testing nuclearweapons again, getting rid of the1100:00:49.679 --> 00:00:56.280ban. I mean, it's justa joke. And then we sit here1200:00:57.439 --> 00:01:00.679listening to Biden ask for another onehundred and six billion dollars for aid to1300:01:00.759 --> 00:01:07.879everybody. Meanwhile, we can't affordwhat we're doing here now. I'm not1400:01:07.959 --> 00:01:11.599saying we don't give aid. WhatI'm saying is, let's get her act1500:01:11.599 --> 00:01:19.400together. Guys. Oil got backedover ninety dollars a barrel. The UAW1600:01:19.680 --> 00:01:25.239is still on strike, the pricesof cars are going to go through the1700:01:25.319 --> 00:01:30.040roof. We need to bring downinflation, and we need to all help1800:01:30.120 --> 00:01:37.879bring down inflation, including our damnedgovernment who can't even get the Republican speaker1900:01:38.519 --> 00:01:48.159back in when that is probably thebiggest blunder I have seen in politics for2000:01:48.239 --> 00:01:57.560a long time. And it's notabout Oustingham ousting McCarthy with eight people.2100:01:57.439 --> 00:02:01.840That's not what I'm talking about.The rules, that's the rules. But2200:02:01.920 --> 00:02:07.640we talk about always having a plan, because if you don't have a plan,2300:02:07.759 --> 00:02:13.159you end up looking like idiots.And now they're on the third,2400:02:13.240 --> 00:02:20.000fourth, whatever, fifth vote forJim Jordan. How did they not have2500:02:20.120 --> 00:02:23.280somebody in mind that can get allthe votes when he ousted the one guy2600:02:23.719 --> 00:02:32.000that was in communication of trying toput the deals together. Eight people do2700:02:32.120 --> 00:02:40.240not represent the entire country. TheRepublicans as a group have the power,2800:02:42.479 --> 00:02:46.879but once they fracture, we don'thave the power anymore, which makes us2900:02:46.919 --> 00:02:51.560look bad and people on the otherside saying, Okay, how do we3000:02:51.599 --> 00:02:54.680get some of this power even thoughwe don't have the numbers, Because there's3100:02:54.680 --> 00:03:00.000a lot of moderate Republicans that aresaying this is ridiculous, and it is3200:03:00.240 --> 00:03:04.560ridiculous and it's not ridiculous because theyasked McCarthy to step down and they voted3300:03:04.560 --> 00:03:09.000against it. How to vote ofconfidence against them? What's ridiculous is that3400:03:09.520 --> 00:03:14.080people think that if you don't getwhat you want, you automatically get rid3500:03:14.080 --> 00:03:16.680of somebody without a compromise. There'sone, okay, so you get rid3600:03:16.680 --> 00:03:23.240of them, But you don't havea plan. What was their plan to3700:03:23.319 --> 00:03:29.719put the House speaker in in themidst of everything that's going on. You3800:03:29.800 --> 00:03:34.360need a speaker to be able toput to bring together to the table of3900:03:34.439 --> 00:03:43.840Lord's proposals ideas to be voted on. And we sit here for three weeks4000:03:43.879 --> 00:03:52.800now without somebody holding the gavel.Maybe you don't think it's bad. I4100:03:52.919 --> 00:03:57.039do. If you want to doit, have a plan. I've never4200:03:57.080 --> 00:04:01.719done anything without understanding the consequences ofboth sides of something. Figure it out.4300:04:03.599 --> 00:04:06.800Every time I invest in the market, to have a plan. If4400:04:06.840 --> 00:04:11.159it's going down, what level doI go ahead and reduce my risk?4500:04:11.400 --> 00:04:14.360If it's going up at what leveldo I reduce my risk? I mitigate4600:04:14.439 --> 00:04:16.959risk. When the markets get toohigh, then I start selling off some.4700:04:17.720 --> 00:04:20.560But I never come out of everythingbecause I know I could be wrong,4800:04:21.160 --> 00:04:26.720just like these guys are wrong.They don't have anyone to replace them,4900:04:26.920 --> 00:04:31.959so we go down the road withnothing. What we do is we5000:04:32.639 --> 00:04:40.959want to lax any sanctions we haveon countries already. So this week we5100:04:41.160 --> 00:04:46.959lacks the sanctions we have on Venezuelaoil. Why do we have sanctioned on5200:04:46.000 --> 00:04:49.000them in the first place? Whyare we allowing them to pump more oil5300:04:49.079 --> 00:04:58.240but we won't? How ridiculous commonsense is that that we're trying to do5400:04:58.319 --> 00:05:02.399the carbon deal right clean eze.I want that, but we won't do5500:05:02.439 --> 00:05:10.519it here, but we're gonna letother people do it everywhere else. Start5600:05:10.600 --> 00:05:16.079drilling our damn oil, start reducingthe regulations, relaxing on the regulations,5700:05:16.279 --> 00:05:19.639and they could oil down, soour inflation could come down. So a5800:05:19.720 --> 00:05:27.240fed Champian doesn't have to sit thereon in the island by himself talking about5900:05:27.240 --> 00:05:30.800how he has to keep rates higherfor longer, and now he sees the6000:05:30.879 --> 00:05:33.439risk. We are gonna break thebanks. I am telling you that we're6100:05:33.480 --> 00:05:39.720gonna break these regional and small typebanks. They can't do all loans.6200:05:43.360 --> 00:05:46.879Now, they're gonna start seeing problemsnext year with people with the loans,6300:05:46.959 --> 00:05:53.600especially commercial loans come and do thatwere maybe at five six percent, and6400:05:53.639 --> 00:06:00.680now they're gonna be looking at ninemaybe depending on the on the on the6500:06:00.720 --> 00:06:06.240asset. Consumer loans, personal loans, they're ten to eleven twelve percent.6600:06:06.759 --> 00:06:12.759Mortgages are over eight and a halfpercent. It's one thing. If it6700:06:12.839 --> 00:06:16.040was gradually over five or six orseven years, it's another one. It's6800:06:16.120 --> 00:06:19.800less than two years, less thana year and a half. We're pounding6900:06:19.800 --> 00:06:27.040away at these interest rates. That'sa problem, But yet we don't cut7000:06:27.079 --> 00:06:31.160spending. Every one of you thatare listening to me, understand what I'm7100:06:31.199 --> 00:06:36.160saying right now. If it costsmore money to go to the grocery store,7200:06:36.639 --> 00:06:42.519more money to go to the guestsand fill up your car, more7300:06:42.600 --> 00:06:46.360money to pay for electricity, moremoney to pay for water, more money7400:06:46.360 --> 00:06:54.680to just live, where's it comefrom. Ninety nine points nine percent of7500:06:54.680 --> 00:06:59.680the people must stop spending so much. Cut out some things. And it's7600:06:59.680 --> 00:07:04.920always about entertainment or drinking a partying, or going on trips or doing something7700:07:04.959 --> 00:07:11.839other than your basic living. Andwhen that happens, it brings down the7800:07:11.879 --> 00:07:16.439economy. Because if someone doesn't goon vacation, then that hotel room is7900:07:16.480 --> 00:07:19.600not being filled. That means theydon't need as many workers there. That8000:07:19.680 --> 00:07:24.560means the food people, the truckpeople, the transportation people, you name8100:07:24.600 --> 00:07:28.879it. They all start getting downand then everyone starts laying off people down8200:07:28.920 --> 00:07:34.399the road. Is that what ChairmanPowell wants? Probably not, but he8300:07:34.480 --> 00:07:40.120won't do anything because he cannot doanything without the rest of the government helping8400:07:40.160 --> 00:07:45.759them. This is the Money MatterShow, as you know, and it8500:07:45.800 --> 00:07:48.680is brought to you by Greenberg foran Ancier Group. Greenberg Financier Group is8600:07:48.680 --> 00:07:53.639both the registered investment advisory and hebroke a dealer were registered with the sec8700:07:54.199 --> 00:07:57.240members of Froom, members of SIPICK. We talk about a lot of different8800:07:57.240 --> 00:08:01.279stuff on this show. We talkabout product strategy, these ideas. We8900:08:01.319 --> 00:08:05.759all have our own opinions. Ifyou don't realize that everything everything you do,9000:08:05.839 --> 00:08:13.360we do, anybody does as risk, then you're not listening to what's9100:08:13.399 --> 00:08:18.079out there. Risk is everywhere.Understand the risk, calculate the risk,9200:08:18.319 --> 00:08:22.000and don't be afraid of the riskas long as it's what you can handle.9300:08:22.199 --> 00:08:24.600If you can't handle any risk,you better be in a money market9400:08:24.600 --> 00:08:28.800fund, government securities, and that'sfine. We got people that just buy9500:08:28.839 --> 00:08:33.240government securities now paying us over fivepercent. They're happy. We're happy.9600:08:33.440 --> 00:08:37.639We'll do what your needs are andyour risk tolerance are. But we have9700:08:37.759 --> 00:08:41.480a plan. Our government doesn't havethe plan. The Republicans don't have a9800:08:41.480 --> 00:08:46.200plan. I don't know what aplan is. In Israel, I think9900:08:46.200 --> 00:08:56.440they have a plan. They're supportingthem. It's still just chast me that10000:08:56.559 --> 00:09:01.240our universities, these young people whoare absolutely preserved, don't understand the damn10100:09:01.320 --> 00:09:09.919thing having pro Palestine rallies. Don'tthey understand this is not against the Palestinian10200:09:09.960 --> 00:09:20.200people. Israelis and Palestinian people liveand commingle their lives together. There's not10300:09:20.240 --> 00:09:26.519a wall like there was in Berlin, East Germany and West Germany. Now10400:09:28.360 --> 00:09:35.559there's a war. There's a fencewith openings that people go back and forth.10500:09:35.759 --> 00:09:39.600They have to have permits for workpermits and stuff. Sure, but10600:09:39.720 --> 00:09:48.600they can live together. That's wherethey were going. But Harmas came off10700:09:48.639 --> 00:09:56.000as good Palestinian people, but theywere really wolf. There were sheep and10800:09:56.080 --> 00:10:01.960wolves. There were wolves in sheepclothing. They were the Trojan horse.10900:10:01.639 --> 00:10:11.200They invaded within. So when peoplesay pro Palestine, pro Palestine. This11000:10:11.399 --> 00:10:15.000is great. They're fighting for Palestine. They are not fighting for Palestine.11100:10:16.240 --> 00:10:24.519Has Bola and Hamas are not fightingfor Palestinians. They are fighting for the11200:10:24.519 --> 00:10:30.480cause that Iran tells him the hateIsrael and all these people that are protesting11300:10:30.480 --> 00:10:37.639are the same left liberals that telleveryone they're racist and tear down all the11400:10:37.720 --> 00:10:41.559statues and get rid of everything else. But they won't go ahead and go11500:10:41.600 --> 00:10:52.000against Hamas and Headpola, which meansthe pro Iran and anti Semites. Where's11600:10:52.000 --> 00:10:58.080the hate there. We have veryselective ability to talk to people about what11700:10:58.120 --> 00:11:01.240they want and what they don't want, but you cannot talk to people that11800:11:01.320 --> 00:11:09.799are brain dead that don't understand thedifference between the terrorist groups and the Palestinian11900:11:09.840 --> 00:11:16.360people. And if you do notthink that the Israelis are trying to do12000:11:16.440 --> 00:11:22.399everything not to go ahead and killcivilians, then you're crazy. They have12100:11:22.480 --> 00:11:26.600given them time. It's harmas thatdo not let the Palestinians out of their12200:11:26.600 --> 00:11:33.080own country for safety because they knowdon well the only protection they're going to12300:11:33.159 --> 00:11:39.919get when Israeli comes in and justmows them down will be the world saying,12400:11:39.960 --> 00:11:45.799oh they killed civilians. They're usingthem as human shields. But nobody12500:11:45.960 --> 00:11:50.879talks about Israelis getting slaughtered in theirhomes, in their beds, on the12600:11:50.919 --> 00:11:58.039kibbutzers at a music festival. Wegot a problem. We got a problem12700:11:58.039 --> 00:12:03.200in America. And tell you something. They're infiltrating America, and I believe12800:12:03.240 --> 00:12:11.120that just like they infiltrated our airtrapped our pilots training, and we're able12900:12:11.120 --> 00:12:16.279to get into the seven forty sevensand demolish the World Trade Center and the13000:12:16.360 --> 00:12:24.440Pentagon and then the heroes that broughtthem down in Pennsylvania. Let's face it,13100:12:24.480 --> 00:12:31.279guys, we are blind to anythingbecause we're afraid of something. Saying13200:12:31.399 --> 00:12:35.360something, Looking at something the wrongway. Is somebody trying to cancel somebody13300:12:37.120 --> 00:12:41.799until it happens to you. AndI don't want it to happen to us.13400:12:41.679 --> 00:12:46.679But you know they're coming over theborder. We live here. We13500:12:46.759 --> 00:12:52.320hear about it. I know peopleon the border control patrol they see it,13600:12:52.399 --> 00:12:58.240hear it all the time. Butwe act like, no, I13700:12:58.360 --> 00:13:03.840hate America. I hate Israelies.Then you know what, go fight for13800:13:03.919 --> 00:13:11.679Hamas or has Bola or some otherplace, but get the hell out of13900:13:11.720 --> 00:13:16.320here. I'm tired of it.I'm tired of watching education go down the14000:13:16.399 --> 00:13:22.200drain. I'm tired of listening tokids that don't know what is going on14100:13:22.279 --> 00:13:28.879and they think it's cool to protestagainst anything that makes sense. But we14200:13:28.960 --> 00:13:33.360have to have it because it's freespeech. But when we have free speech,14300:13:33.120 --> 00:13:39.559we get centured. When we wantto be pro life and there's violence,14400:13:39.600 --> 00:13:46.879we get sentient. How many peoplegot arrested at the Capitol when they14500:13:46.919 --> 00:13:52.399went in there with their sit downand started protesting, telling you that they14600:13:52.480 --> 00:13:56.559want to cease fire and Israel andeverything else, basically blame in Israel pro14700:13:56.600 --> 00:14:05.440Palestidians. How many people got arrested? I thought you weren't allowed in the14800:14:05.480 --> 00:14:11.279capitol to be protesting inside the capitol, or you get arrested or is it14900:14:11.440 --> 00:14:16.080just that the people on the rightside get arrested? And I understand it15000:14:16.159 --> 00:14:22.960wasn't the same level that happened onJanuary sixth. I get that. You15100:14:22.960 --> 00:14:26.240don't have to tell me that.I get that, But you know what,15200:14:28.000 --> 00:14:35.559they always make excuses because I rememberthe Summer of Love in Seattle not15300:14:35.600 --> 00:14:41.039too long ago, blowing up policestations, setting everything on fire, demolishing15400:14:41.120 --> 00:14:46.240property, federal property. Oh,it's a summer of love. We can't15500:14:46.279 --> 00:14:52.159do anything to them. But ifthe right does anything steps out of line,15600:14:52.480 --> 00:14:54.559and they can go ahead and dosomething, they do. They arrest15700:14:54.639 --> 00:15:01.519people left and right and throw awayto keep pretty much. They come up15800:15:01.519 --> 00:15:05.240with ideas, they come up withways to hurt their opponents. I mean,15900:15:05.279 --> 00:15:09.240look what Trump is going through.Come on like him or not like16000:15:09.320 --> 00:15:16.480him. What he's going through isinsane, insane. Anybody that's in the16100:15:16.559 --> 00:15:22.080real estate business has tell you rightnow, they put down what they a16200:15:22.639 --> 00:15:30.080price on their buildings. If there'snobody going out there and doing an estimate,16300:15:30.840 --> 00:15:35.120they're estimating. And if the benksdon't like it, they'll come back16400:15:35.159 --> 00:15:39.480and tell you, I think that'shigh. They'll get an appraisal, and16500:15:39.559 --> 00:15:41.840every once in a while they dodo an appraisal, so can't go that16600:15:41.879 --> 00:15:48.919many years without it. But theyexaggerate. The media exaggerates because everyone wants16700:15:48.919 --> 00:15:52.399you to think that Trump did allthese illegal things and there's no way should16800:15:52.399 --> 00:15:58.240be president. Take it all away. But think about what they did with16900:15:58.279 --> 00:16:04.320Trump. They lied about him withRussia, lied lied about him with Ukraine,17000:16:04.679 --> 00:16:10.120lied about him with China. Butwhat did he accomplish Look what he17100:16:10.200 --> 00:16:15.840did in the Middle East. Hecame with the Abraham Peace Accord. He17200:16:15.960 --> 00:16:22.960was just getting the Arabs and theJews to start talking and agreeing to some17300:16:23.000 --> 00:16:30.799type of piece of working together.And what did we get. As soon17400:16:30.840 --> 00:16:36.679as Biden came in, what didhe do? He broke that up.17500:16:36.720 --> 00:16:41.559He got rid of it because hedecided to take the sanctions off Iran.17600:16:44.399 --> 00:16:48.440Iran was being squeezed. That's whythe Middle the countries in the Middle East17700:16:48.480 --> 00:16:55.399started to talk with Israel. Israelisbecause Iran was economically not able to do17800:16:55.440 --> 00:17:03.200what they needed them to do.What happens Nukid, everybody was worried,17900:17:03.240 --> 00:17:07.079we're going to go to war withRussia or China. Well guess what happened18000:17:07.079 --> 00:17:15.920on the Biden Now we're talking aboutnuclear testing again. But no, it18100:17:15.960 --> 00:17:18.119was everybody else. Tony of theTrump sits there with the red button at18200:17:18.200 --> 00:17:22.920night, and what if he justdecides to push it? Just stupid,18300:17:23.359 --> 00:17:30.680stupid images that the media put out. It's Biden's group that's getting us there.18400:17:30.599 --> 00:17:34.640It's this left that allows everyone todo what they want to do and18500:17:34.759 --> 00:17:41.480keeps agreeing with them, and theywon't compromise. It's the regulations that we18600:17:41.599 --> 00:17:49.079put on oil, and we gofrom being absolutely independent energy independent to have18700:17:49.119 --> 00:17:53.359an export again. But the craziestthing is what did they say to us18800:17:53.359 --> 00:18:03.440when they started going into our reservesor oil preserves, that we'll buy back18900:18:03.559 --> 00:18:06.200oil when it gets down to theseventies. We're gonna bring the price of19000:18:06.240 --> 00:18:07.759oil down. Yeah, they wrotethose coat tails all the way down to19100:18:07.799 --> 00:18:11.359seventy. In fact, they gotto sixty one. And you heard on19200:18:11.400 --> 00:18:18.599our show, we kept saying,has anybody heard about us replenishing the spr19300:18:19.519 --> 00:18:23.480No, we didn't because they didn't. But this week I heard they're gonna19400:18:23.480 --> 00:18:30.000stop buying like four or six millionbarrels back into the reserve. They're gonna19500:18:30.000 --> 00:18:41.640stop buying oil back and increasing oilreserves this week at ninety dollars. But19600:18:41.680 --> 00:18:47.680no one makes a big deal.No one questions them. They need to19700:18:47.680 --> 00:18:52.319be questioned on their economic fiscal ideasof what they're doing. They are going19800:18:52.359 --> 00:18:56.200to bankrupt the hell out of thiscountry. We cannot keep giving hundreds of19900:18:56.200 --> 00:19:00.119billions of dollars away when we can'teven go ahead live here. Interest rates20000:19:00.160 --> 00:19:03.480are so high right now, you'regonna see at default rate that's gonna go20100:19:03.559 --> 00:19:07.519through the roof next year. Ifthese rates don't come down, people are20200:19:07.599 --> 00:19:11.880using their savings to be able topay for things. They're gonna stop paying20300:19:11.920 --> 00:19:14.680on credit cards. The credit cardsare gonna get maxed up. People are20400:19:14.680 --> 00:19:18.480gonna say, well on credits ruinedalready. I'm just gonna wait this out.20500:19:18.960 --> 00:19:21.680Hopefully the government will go ahead andmake a deal. They did with20600:19:22.519 --> 00:19:25.799what they were trying to do ongovernment loans, and it comes over the20700:19:25.839 --> 00:19:29.480idea, oh, well, youknow these government loans, these school loans20800:19:29.680 --> 00:19:32.880that these kids have, we'll paythem off. Because in that way of20900:19:32.880 --> 00:19:36.640the help with retirement, I promiseyou they were putting no money away for21000:19:36.759 --> 00:19:42.720retirement while they were not having topay those loans. If they were doing21100:19:42.759 --> 00:19:45.440it, they didn't increase it.If they weren't doing it, they didn't21200:19:45.480 --> 00:19:55.319add to it. Kids don't dothat unless they have people that they respect21300:19:55.559 --> 00:19:57.160that can show them what to doand have them help them do it.21400:20:00.119 --> 00:20:08.160Everything in this world right now justseems like seated the pants decisions. I21500:20:08.200 --> 00:20:15.880don't see anyone strategically enough making aplan that could even project that plan.21600:20:17.279 --> 00:20:22.039So it makes sense to us,the American people, the Republicans make no21700:20:22.119 --> 00:20:26.240sense. The border makes no sense, the wars make no sense. Giving21800:20:26.279 --> 00:20:33.359away money indiscriminately and not nowhere itgoes makes no sense. Putting everything down21900:20:33.680 --> 00:20:41.440as we need this for climate climatechange money. Otherwise the world won't be22000:20:41.480 --> 00:20:47.119here in fifteen years hogwash and hearit forever. And you know what.22100:20:47.359 --> 00:20:51.960In fact, I was watching aspecial going back millions of years and they22200:20:51.960 --> 00:20:56.160were talking about the two or threeice ages we've gone through and the animals22300:20:56.200 --> 00:21:00.000that were on the planet and howthey're then when they melted and the continent22400:21:00.160 --> 00:21:02.640came together, and that's how animalswent from one side to the other.22500:21:03.319 --> 00:21:07.160You know, they were talking aboutclimate changes when there was no talk about22600:21:07.160 --> 00:21:14.559climate change because there was nobody talking. So what's the difference between millions of22700:21:14.640 --> 00:21:19.799years and thousands of years ago thanto where it is today? Just different22800:21:19.839 --> 00:21:26.160causes, I guess over a periodof time, this is the things that22900:21:26.240 --> 00:21:32.759happened, and you adapt as asociety or you don't. You're adapt as23000:21:32.799 --> 00:21:40.039animals or you don't, and thenit evolves back. So when you look23100:21:40.079 --> 00:21:42.559at all this, why are wefighting, why are people dying? Why23200:21:42.599 --> 00:21:45.000are these things going on? Becausewe're here for such a short period of23300:21:45.000 --> 00:21:51.200time. Think about that. Theyneed to all get their act together.23400:21:52.519 --> 00:21:57.000They all need to start working together. We as the United States need to23500:21:57.000 --> 00:22:03.200get strong again. He needs toget strong. Watching the markets go down23600:22:03.079 --> 00:22:07.680two and a half percent for thedial for the S and P this week,23700:22:07.960 --> 00:22:14.160another three percent for the Nasdaq,I mean, the everything's down except23800:22:14.160 --> 00:22:18.640the S and P and the Nasdaqthat had those magnificent seven stocks. We'll23900:22:18.640 --> 00:22:22.400be talking about some of them later, like Netflix and all two, but24000:22:22.440 --> 00:22:26.319the rest of two thousands down downfour and a half percent year to date,24100:22:27.240 --> 00:22:30.759and the equal weighted S and Pfive hundred, which is where people24200:22:30.839 --> 00:22:38.480diversifying their mutual funds, is downthree percent for the year. Bonds,24300:22:38.519 --> 00:22:45.960intermediate long term bonds are getting killed. They're down over twenty percent again this24400:22:45.079 --> 00:22:55.839year because interestrates keep going higher,causing effect risk. You need a plan24500:22:56.519 --> 00:23:00.119on how to mitigate your risk,and the only way you get that is24600:23:00.119 --> 00:23:04.240to a financial plan, retirement plan. You have to know everything you got.24700:23:04.400 --> 00:23:08.079We do a great job doing thatbecause it's not just putting in numbers,24800:23:08.319 --> 00:23:14.519it's understanding the person. It's theirlife, what they're trying to achieve,24900:23:15.440 --> 00:23:17.359and how long they want to achieveit, and what they want to25000:23:17.400 --> 00:23:21.640do when they get to retirement.The plan is always about the retirement because25100:23:21.680 --> 00:23:25.279that's when your income drives out.So retirement maybe it's not. It's about25200:23:25.279 --> 00:23:27.599when you don't have a job anymore, whether it's because you're retiring or you25300:23:27.599 --> 00:23:32.640get laid off. You gotta havesome type of plan. And if your25400:23:32.680 --> 00:23:34.920plan is I'm gonna live off thegovernment, well go ahead and do it,25500:23:36.839 --> 00:23:37.839because one day you're gonna wake upand they're gonna say, hey,25600:23:37.839 --> 00:23:41.720I got cut I gotta cut Medicare, I gotta cut Social Security, and25700:23:41.759 --> 00:23:44.039they're gonna have to do that oneday if we don't get a hands around25800:23:44.079 --> 00:23:47.759it, because there's people are livinglonger and there's not enough people in the25900:23:47.839 --> 00:23:51.519work force that are gonna want tokeep seeing their taxes raised to pay for26000:23:51.559 --> 00:23:56.680the older people. And I don'tblame them. After all these years,26100:23:56.720 --> 00:24:00.880you would think somebody, some smartperson would come up with a different idea26200:24:00.200 --> 00:24:04.960on how to make it all work. But no, they don't. They26300:24:06.000 --> 00:24:07.759just keep poking, kicking the candown the road, and then they get26400:24:07.759 --> 00:24:11.759eighty ninety years old they die.In the next group that was fifty and26500:24:11.799 --> 00:24:15.960now seventy they keep doing the samething. We need changes, real changes26600:24:17.400 --> 00:24:22.440for the people of America before we'rethe ones that become instinct. We'll be26700:24:22.519 --> 00:24:29.799back with everybody. I do appreciateeverybody listening to the Money Matter Show.26800:24:33.279 --> 00:24:37.640Welcome back everybody. This is theMoney Matter Show. This is Dean Greenberg,26900:24:37.680 --> 00:24:42.000I got Dave Show with Dylan Greenbergand of course Todd Glick. We27000:24:42.119 --> 00:24:45.960are going to bring you a lotof information today, so stay through the27100:24:45.960 --> 00:24:49.680whole time because there was a lotof stuff going on. But to start27200:24:49.720 --> 00:24:55.400off, the market's were all downagain this week and they're kind of getting27300:24:55.400 --> 00:24:59.319scary. I'm not going to denyit, but that's when you got to27400:24:59.359 --> 00:25:03.480be looking the well. There's agood support at forty forty two hundred on27500:25:03.519 --> 00:25:06.640the S and P five hundred.Right. We've been going down there twice27600:25:06.640 --> 00:25:10.200now and bounced off of it.We closed it forty two to twenty four.27700:25:11.480 --> 00:25:15.240I'm thinking we probably go open downon Monday and maybe get a bounce27800:25:15.279 --> 00:25:18.400on Tuesday, hopefully. The problemI have I looked at the technicals on27900:25:18.440 --> 00:25:23.200it under forty two hundred. There'sreally no real support levels unless you go28000:25:23.240 --> 00:25:29.240way back and the idea is youwant to try to find some some some28100:25:29.400 --> 00:25:33.839channels on it. So when youhave that situation, the risk get higher.28200:25:34.680 --> 00:25:37.920So that's why you don't want tobuy right away, because this market28300:25:38.160 --> 00:25:42.319could even if it turns around,which just like you're saying, it's probably28400:25:42.359 --> 00:25:45.519going to make a lower high andit come down again, and then you28500:25:45.640 --> 00:25:48.400usually see it just bounce around alittle bit in a week or two,28600:25:48.799 --> 00:25:52.160back and forth, back and forth, and that puts the bottom in and28700:25:52.160 --> 00:25:56.440then you start because it doesn't gofrom decline to up right away. Decline,28800:25:56.519 --> 00:26:00.000of course, up a little bit, coming down a little bit.28900:26:00.079 --> 00:26:03.319It bounces around the bottom, backand forth, back and forth, starts29000:26:03.359 --> 00:26:06.599taking off, gets higher than thatlast high that they had, and then29100:26:06.640 --> 00:26:10.319it all breaks out. And youknow, you got between now and the29200:26:10.400 --> 00:26:12.720end of the year that we couldhave a decent move up if some of29300:26:12.759 --> 00:26:18.000these things start getting a hands aroundthem, any of these things, rising29400:26:18.000 --> 00:26:22.200interest rates, rising oil prices,the war in Ukraine, the war in29500:26:22.519 --> 00:26:25.920Israel, anything gets better. Hthis market is ready to go. And29600:26:26.279 --> 00:26:30.440we have to keep in mind firstof November to the end of January responsible29700:26:30.519 --> 00:26:37.039for sixty percent of all gains historically, So we're entering a very strong period29800:26:37.319 --> 00:26:41.160for the market historically, Yeah,I mean right now for this year historically29900:26:41.359 --> 00:26:44.759is September was bad, August wasbad, which usually is beginning in the30000:26:44.759 --> 00:26:47.680middle of October's bad, and thenwe do see a run up to the30100:26:47.759 --> 00:26:48.839end of the year. So ifhistorically, I mean, it's showing a30200:26:48.880 --> 00:26:52.279normal year, right, it reallyis. It is a script in a30300:26:52.359 --> 00:26:55.119sense, it's showing the normal scripts, kind of the normal script. Yeah.30400:26:55.160 --> 00:26:57.359So we'll see obviously how it ends. But in your career, how30500:26:57.400 --> 00:27:03.559many times have we seen the bottomscariest heck in October? Yeah? Often,30600:27:03.759 --> 00:27:06.279and then the bottom's in and thennext thing you know, we're looking30700:27:06.279 --> 00:27:08.039at Wow, we just rallied fivepercent to the end of the year.30800:27:08.160 --> 00:27:11.519More right, And when it does, when it does reverse, reverses so30900:27:11.720 --> 00:27:15.519violently and so quickly that Thursday youcan't get out and then get back in.31000:27:15.960 --> 00:27:19.880That's just simply not going to happen. But more importantly, how appropriate31100:27:19.960 --> 00:27:26.000is it, guys, that wewould end the hottest summer in history with31200:27:26.200 --> 00:27:32.559the hottest October, the latest hundreddegree day ever, Yeah, Friday in31300:27:32.799 --> 00:27:37.119history, Yep, Friday. Itwas actually Thursday, and then Friday,31400:27:37.200 --> 00:27:41.240so both days never had one hundreddegree day this late in the month of31500:27:41.279 --> 00:27:45.440October. Ever, the good newsis winter is coming next week. Yeah,31600:27:45.480 --> 00:27:48.920we're I'm looking at temperatures in thelow seventies for a high, which31700:27:48.960 --> 00:27:52.000means the overnight lows are in thelow fifties. I just need to figure31800:27:52.039 --> 00:27:56.079out what goes through your brain.We're talking about the markets and everything,31900:27:56.279 --> 00:28:02.000and somehow you start talking about theweather. I don't understand how that happens.32000:28:02.119 --> 00:28:06.519We're talking about now history, We'retalking about historical trends, right,32100:28:06.920 --> 00:28:10.279so we've got a new historical trendhere. We're hotter. Now, Okay,32200:28:11.240 --> 00:28:14.559I'm like, okay, you see, I want to talk about the32300:28:14.559 --> 00:28:17.160markets. How about it? Peoplewant to listen to the markets, and32400:28:17.200 --> 00:28:21.440somehow you got to put in theweather. About interestration, that's why interestration32500:28:21.559 --> 00:28:23.240new sixteen year high there, Imean that's yeah. The ten year hit32600:28:23.319 --> 00:28:26.400over five percent on Wednesday night forthe first time since two thousand and sevens32700:28:26.559 --> 00:28:30.079you Drake's over eight for the firsttime in twenty three years. Yeah,32800:28:30.119 --> 00:28:34.519it's all yeah, uh trying hisGDPs cranking along. Huh? What about32900:28:34.559 --> 00:28:37.720just a personal loan? Now?It's ten eleven twelve percent. Raise it33000:28:37.759 --> 00:28:41.000for a personal loan. Yeah,for most people think about credit cards.33100:28:41.200 --> 00:28:44.759What do you think? But youdon't think they've been raising the interest rates33200:28:44.759 --> 00:28:48.480on everyone that hasn't been paying offthey were They are called every month.33300:28:48.519 --> 00:28:52.279You know, we commonly say twentypercent, but it's probably much above that33400:28:52.359 --> 00:28:55.799now. Huh. It's usually aroundtwenty three twenty four percent I've seen.33500:28:55.839 --> 00:28:59.640Yeah, how do you pay itoff? That's crazy, that's crazy.33600:29:00.480 --> 00:29:03.519That means if you have one thousanddollars on there, you got two hundred33700:29:03.519 --> 00:29:07.839and forty dollars of interest each year. Yeah, I mean, how do33800:29:07.880 --> 00:29:11.400you ever catch up? Oil?Touch ninety Deen, I think you mentioned33900:29:11.440 --> 00:29:15.319in your monologue finished the week ateighty eight seventy five, up a buck34000:29:15.359 --> 00:29:19.119on the week. Gold continues tojust soar and has nothing. And we've34100:29:19.160 --> 00:29:25.599talked a nauseum about the gold beingtied to the dollar. Gold moves inversely34200:29:25.880 --> 00:29:29.920to the dollar. This move offof eighteen hundred to nineteen eighty two,34300:29:29.960 --> 00:29:34.039almost almost more than a ten percentmove, has been strictly based upon the34400:29:34.119 --> 00:29:41.000war. The dollar has not budged, so it's got Cosco costco, costco34500:29:41.119 --> 00:29:44.200can't buy enough gold to sell itout to their customers. You want to34600:29:44.200 --> 00:29:48.079hear an interesting Costco story? Thisis really cool. They've got a new34700:29:48.119 --> 00:29:52.880CEO and it was expected. It's, you know, the chain of everybody's34800:29:52.119 --> 00:29:56.599moving along. Ron Vaccarus, Ibelieve it is fifty eight years old.34900:29:57.039 --> 00:30:03.119He's been with Costco for forty year. He's the new CEO. Guess what35000:30:03.200 --> 00:30:07.440his first job was to Costco?Forklift driver. He started at Costco as35100:30:07.440 --> 00:30:11.599a forklift driver and he's now theCEO. I've heard them both. I've35200:30:11.599 --> 00:30:15.440heard those stories before that it's great. Yeah, talking about like just business35300:30:15.440 --> 00:30:22.119and stuff. It's like, whatis the UAW doing? I Farley,35400:30:22.240 --> 00:30:26.519the head of Ford, thinks thatthe new UAW head is a little bit35500:30:26.559 --> 00:30:30.880wacko. Well, he doesn't wantto make a deal because it's about him,35600:30:30.960 --> 00:30:33.759doesn't he want to make a dealat all? Right? Then over35700:30:33.799 --> 00:30:37.640a month and in this economy andwhat's going on, how does he think35800:30:37.680 --> 00:30:41.759it's going to benefit not only hisown people, which is only cares about35900:30:41.759 --> 00:30:45.200getting more money, but they're gonnaget laid off, Dave. If people36000:30:45.240 --> 00:30:48.160don't have the money to buy thecause because they're too expensive, start shutting36100:30:48.200 --> 00:30:52.519him down. Yeah right, becauseremember what they do when we get a36200:30:52.519 --> 00:30:59.480recession, they shut down plants fora period of time to catch up with36300:30:59.519 --> 00:31:03.119the demand. Sure, and thatmeans when you shut down a plant,36400:31:03.519 --> 00:31:07.319you can't pay people, so theygo on. That's all he's doing.36500:31:07.559 --> 00:31:12.240He's sending these people like slaughtered Lambto eventually be on the unemployment line.36600:31:12.359 --> 00:31:15.880Well and at the very least,at the very best, maybe they break36700:31:15.920 --> 00:31:19.599even four or five years down theroad financially, and in the meantime,36800:31:19.640 --> 00:31:25.519he's building a name for himself.It just does seem misguided at this point,36900:31:25.559 --> 00:31:27.240not even close. This is whatI'm talking about. In today's world.37000:31:27.279 --> 00:31:30.400No one knows how to compromise.They don't want to make deals.37100:31:30.640 --> 00:31:36.720They want to keep dividing. Andthe people are following him out of getting37200:31:36.759 --> 00:31:40.079more and more pissed off because theylike, wait a second, this wasn't37300:31:40.079 --> 00:31:42.000supposed to be this long. Therewas supposed to be this, We're supposed37400:31:42.000 --> 00:31:47.079to get this big raise. Everybodywas compromising, and now I can't feed37500:31:47.079 --> 00:31:49.880my family. Yeah. Absolutely,they're going to run out of guess what37600:31:51.519 --> 00:31:56.440union benefits. Speaking of lack ofcompromise, the chaos continues in Congress,37700:31:56.519 --> 00:32:00.480right, I know what. JimJordan lost three votes. He's not on37800:32:00.519 --> 00:32:02.519it anymore because he can't get themajority vote. And then they just got37900:32:02.599 --> 00:32:07.000no plan there. I gotta tellyou, as I watched this, they38000:32:07.039 --> 00:32:10.799are giving clowns a bad name.That's what's happening. Yeah, they're giving38100:32:10.799 --> 00:32:15.079clowns a bad name. It's it'sdisgusting that they didn't have a plan,38200:32:15.519 --> 00:32:16.400and I don't know what it is. How do you how do you at38300:32:16.400 --> 00:32:22.440that level decides to basically get ridof somebody, fire somebody because you can38400:32:22.480 --> 00:32:24.440have one vote and vote against him. You fire them, and you don't38500:32:24.440 --> 00:32:29.000have enough votes your person, whoeverthat person is, to get in.38600:32:29.759 --> 00:32:35.240And what's just due to the Republican'schances going forward? It's just it's troubling38700:32:35.480 --> 00:32:37.519to me. A chance to ajoke. How do you have to pop38800:32:37.680 --> 00:32:42.680like you've got a party you can'tgovern? Yeah, it took McCarthy long38900:32:42.799 --> 00:32:45.599enough to get voted in anyways,and then now Jim Jordan canon, who39000:32:45.599 --> 00:32:47.240else? Who are they going toput up next? Like Max mac Gates,39100:32:47.519 --> 00:32:50.799he's not going to get the majorityeither. I don't understand what they're39200:32:50.839 --> 00:32:55.839doing. We pay these guys towork for US US as cumulative, which39300:32:55.880 --> 00:33:00.960means on the right side, yougot conservatives, ultra can conservatives, and39400:33:00.039 --> 00:33:05.319minor conservatives, which means we haveto all compromise. Yeah, okay,39500:33:05.880 --> 00:33:09.240and we don't. I just thinkit's it's really as all. I'm a39600:33:09.240 --> 00:33:14.200lifelong Republicans, just a stain onthe party that that we can't. I'm39700:33:14.240 --> 00:33:16.640saying, I'm politics politics, okay, because I think it's terrible. On39800:33:16.640 --> 00:33:22.160the other side, how the Democratsall get in line and have no opinions39900:33:22.160 --> 00:33:23.599on their own. Yeah, likewhen they were saying, just vote yes40000:33:23.599 --> 00:33:27.359on the Act and we'll read itlater. They have no opinion at all.40100:33:27.519 --> 00:33:30.599Yeah, except here's what they do. They haven't. They all get40200:33:30.640 --> 00:33:32.960in line and have an agenda,and the agenda gets passed because they all40300:33:34.039 --> 00:33:37.480are in line right where the Republicansare are a bunch of cats trying to40400:33:37.519 --> 00:33:42.559you know, everybody's got don't havea problem with with with with uh discussing40500:33:42.599 --> 00:33:47.160things having opposite opinions, But Idon't. I don't. I dislike when40600:33:47.279 --> 00:33:52.680human beings in that powered position can'tcome up with a compromise. If they40700:33:52.720 --> 00:33:55.720can't compromise their agenda is going tobe thrown. If you have five things40800:33:55.759 --> 00:33:59.240you want, and you got fivethings you want, I have five things40900:33:59.240 --> 00:34:01.440I want. Let's all put onething on the table that we have to41000:34:01.559 --> 00:34:06.279have. Boom, let's put asecond thing on the table. That's it.41100:34:06.400 --> 00:34:07.960We got the six things. Maybeyou don't get three. You don't41200:34:07.960 --> 00:34:10.440get three, I don't get three, but we all get we get a41300:34:10.480 --> 00:34:15.760couple of things that we wanted.The back to the market. The difference41400:34:15.760 --> 00:34:20.360between the ten year and the twoyear dean is narrowed to seventeen basis point.41500:34:20.400 --> 00:34:22.639We're going to flat line. Sowe're gonna flat line very soon.41600:34:22.679 --> 00:34:27.280And we were we were one hundredbasis points difference between those two inverted just41700:34:27.480 --> 00:34:30.159two months ago. So what doesthat mean when it's flat lines good,41800:34:30.199 --> 00:34:32.320that's good. That's a very goodthing. Uh. Normal yield curve is41900:34:32.320 --> 00:34:36.239supposed to be good, and weare working our well, well, that's42000:34:36.239 --> 00:34:38.679not a normal yield curve. Butflat line is not the normal. That's42100:34:38.679 --> 00:34:43.000step one. That's step one.I mean, you gotta go flat line.42200:34:43.199 --> 00:34:46.039If you're inverted one one hundred basispoints, you gotta go flat line.42300:34:46.320 --> 00:34:51.920A normal, normal yield curve iswhen the short rates are lower than42400:34:51.960 --> 00:34:54.000long term rate normal and you getand you get paid more of for holding42500:34:54.000 --> 00:34:58.880onto the security. Correct, correct, and then that's where it appears.42600:34:58.920 --> 00:35:00.960That's where we're working towards. Andthat's a good thing. That's a good42700:35:01.000 --> 00:35:05.280thing for the credit markets. That'sa good thing for the economy. And42800:35:05.599 --> 00:35:07.119you would think a good thing forthe markets, Yeah, you would think.42900:35:07.159 --> 00:35:10.840So bitcoin had a great week,up ten percent. It's at the43000:35:10.880 --> 00:35:15.119highest level since early August. Yeah, people use it as a fight to43100:35:15.199 --> 00:35:16.480safety. Now. I think you'retalking about it. That's what's happening.43200:35:16.480 --> 00:35:20.440I think it's like the digital goal. It's how I slicked that it again,43300:35:20.880 --> 00:35:24.000even though it's vautile as it's reallyvolatile, it always is, always43400:35:24.039 --> 00:35:27.719has been, it always has been. It's not for the fainthearted, that's43500:35:27.719 --> 00:35:31.079for sure. You think people reallybelieve that, or they get the media43600:35:31.119 --> 00:35:35.679gets it out there, the bitcoinmedia gets it out there. Oh this43700:35:35.719 --> 00:35:37.039is the safe thing, get ontothis. The dollars going down, this43800:35:37.119 --> 00:35:40.239is you know, and all thisother stuff. I think that the propaganda43900:35:40.280 --> 00:35:44.679that's out there people believe because theywant to believe it. Well, the44000:35:44.719 --> 00:35:47.039primary reason you buy something is becauseyou think it's going to become more valuable44100:35:47.039 --> 00:35:51.199in the future. All right,we got we got to take a break.44200:35:51.239 --> 00:35:53.599We'll be right back. We doall appreciate that you do. Listen44300:35:53.880 --> 00:36:10.559to All Money Matter show. Thankyou say. It's only welcome back everybody.44400:36:10.639 --> 00:36:14.440It's the money about the show.We got Todd Gleke, Dylan Greenberg,44500:36:15.159 --> 00:36:20.519Dave Sherwood and myself Dean Greenberg bringingyou our opinions, our ideas and44600:36:20.559 --> 00:36:23.760the facts of what's going on inthis country and the markets. They're talking44700:36:23.760 --> 00:36:28.400about Congress and we were in thelast segment you want a fun fact?44800:36:29.159 --> 00:36:34.480Yeah, what's the fun You're afun fact. So why are Republicans elephants44900:36:34.880 --> 00:36:38.880and Democrats donkeys? I don't knowwhat you ever thought about that. In45000:36:39.000 --> 00:36:45.000eighteen seventy nine, get this.Eighteen seventy nine, the most influential political45100:36:45.039 --> 00:36:47.440cartoonist was a guy named Thomas Nast, and he worked for Harper's Weekly.45200:36:49.280 --> 00:36:54.760He published a series of cartoons thatdepicted Republicans as a big, lumbering creature45300:36:54.880 --> 00:37:00.679with no direction. He drew anelephant, and he depicted the Democrats as45400:37:00.760 --> 00:37:05.760cantankerous, stubborn group. And hedrew a donkey. Even though both of45500:37:05.800 --> 00:37:13.199these depictions of the parties are derogatory, they've stuck. Though it was actually45600:37:13.199 --> 00:37:15.679a political cartoonist who was making funof them, they came up with the45700:37:15.679 --> 00:37:20.239elephant and the donkey, and theystick to this day. That's pretty funny.45800:37:20.360 --> 00:37:22.639You want a not so fun fact? Yeah, you know, the45900:37:22.800 --> 00:37:28.159US has four percent of the world'spopulation and seventy five percent of the world's46000:37:28.199 --> 00:37:32.280lawyers. How scary is that.That's why get this dean. Ninety four46100:37:32.360 --> 00:37:37.320percent of all lawsuits filed in theworld are filed in the United States.46200:37:37.760 --> 00:37:42.360People are trying to sue for anything, anything because all yours are all looking46300:37:42.360 --> 00:37:49.199for work. Wait, way toomany retigious society and regulatory It's just gotten46400:37:49.239 --> 00:37:53.880horrible litigious country because we have toomany lawyers, well society because people always46500:37:53.880 --> 00:37:58.800are looking anything happens. Ooh didyou sue? Oo? Did you sue?46600:37:59.039 --> 00:38:02.480Yeah? Default, isn't it.You know, I've never started a46700:38:02.519 --> 00:38:07.679lawsuit in my life. I've hadto defend some, but I've never started46800:38:07.679 --> 00:38:10.159one. I've never seen and Ialways have won everyone I've been in I've46900:38:10.159 --> 00:38:14.679won. Yeah, because if you'refighting back, it's because you believe you're47000:38:14.760 --> 00:38:16.800right. Well, sure, andif you're right, it's going to prevail.47100:38:17.400 --> 00:38:22.679And people usually sue because they thinkthey have the advantage. And we've47200:38:22.679 --> 00:38:27.599been watching raytheon stock pretty closely andit did edge up a little bit last47300:38:27.599 --> 00:38:30.719week despite the weak market, butnot what you'd expect. With the UH47400:38:30.880 --> 00:38:36.599Patriot missile rebuilding cycle that they're entering. They're going to be building, you47500:38:36.639 --> 00:38:40.320know, thousands and thousands of Patriotmissiles that they would not otherwise have been47600:38:40.360 --> 00:38:44.840building. It can't be a badthing. So the iron dome, I47700:38:44.880 --> 00:38:45.920don't know if you know this,the iron dome in Israel, right,47800:38:46.000 --> 00:38:51.559correct, when they say they haveto replenish it, they just have to47900:38:51.559 --> 00:38:54.320replenish it with missiles. I don'tunderstand they have an iron dome because of48000:38:54.360 --> 00:38:58.360the Patriot missile. Right. Butit's not like at first they make it48100:38:58.360 --> 00:39:00.159sound like you got this dome that'sover that like it, you know,48200:39:00.199 --> 00:39:05.239it's like the biasphere, you getthe dome that comes down. No,48300:39:05.320 --> 00:39:07.960it's not like that. That'd bea big dome attact anything coming in.48400:39:07.039 --> 00:39:10.159So it's just the missiles shoot offwhatever they're in. And they saw you48500:39:10.480 --> 00:39:13.920said that, I think you saidthree thousand right the first day, and48600:39:13.960 --> 00:39:17.199then tens of thousands of thousands ofthem. And each time they shoot one48700:39:17.239 --> 00:39:21.719off, a Patriot missile has toget shot at it to bring it down.48800:39:22.000 --> 00:39:23.960But and I guess I guess thatprobably automatic. Right, they detect48900:39:23.960 --> 00:39:28.440them and go yeah they yeah,the heat the heat seekers and and they're49000:39:28.440 --> 00:39:31.039about ninety seven percent accurate. Sosome missiles do get through, but very49100:39:31.039 --> 00:39:36.400few. But all of those thousandsand thousands of Patriot missiles that have been49200:39:36.400 --> 00:39:39.800shot to protect Israel have to bereplaced exactly if you're going to have the49300:39:39.840 --> 00:39:43.840Iron Dome. Yeah, if wewere in different week where the markets weren't49400:39:43.840 --> 00:39:45.199bad as a whole, I'm sureRathiel would have gone up a little more.49500:39:45.519 --> 00:39:49.880Seems like it everything was as downas best sentiment around the markets and49600:39:49.880 --> 00:39:52.559everything like that, so people weren'tjumping in. But no, that didn't49700:39:52.559 --> 00:39:58.760go up. That don't see.It didn't go up. And the Iron49800:39:58.840 --> 00:40:01.239Dome, that's why we're talking about, right, right, didn't do any49900:40:01.400 --> 00:40:05.599hockey. Martin didn't much. No, you're absolutely right. That whole area.50000:40:05.679 --> 00:40:07.559You would think it would be reallyflying, but it hasn't been.50100:40:07.639 --> 00:40:12.280I'll tell you The one area that'sreally getting trashed is is solar stocks.50200:40:12.840 --> 00:40:15.119Yeah, they got hammered last Itwas Friday, really Friday, was it50300:40:15.280 --> 00:40:19.159was the big the big Yeah.The et F T A N dropped a50400:40:19.440 --> 00:40:22.280roughly seven percent as a whole,right, but I mean you had one50500:40:22.320 --> 00:40:24.760it's called solar Edge dropped over thirtypercent. YEP. It is because they50600:40:24.760 --> 00:40:28.639had this terrible revenue for the thirdquarter, gross margins, operating, the50700:40:28.639 --> 00:40:31.559income all below expectations. And thenthe CEO comes out and says fourth quarter50800:40:31.639 --> 00:40:35.119is going to be even worse.And I think a lot of that hill50900:40:35.159 --> 00:40:38.599and too, is coming from Europe. It is. So it's unexpected cancelations51000:40:38.679 --> 00:40:45.039and push outs, sudden unexpected cancelations, sudden substantial yep, pushouts of existing51100:40:45.079 --> 00:40:52.000backlogs from the company's European distributors.And guess what what is that telling you?51200:40:52.159 --> 00:40:55.400Okay, people are saying, hey, this whole thing with you know,51300:40:55.519 --> 00:41:00.480with with alternate power, great,but right now that's on the back51400:41:00.519 --> 00:41:02.639burner. What I need to paythe bills. It's also the issue is51500:41:02.800 --> 00:41:06.679it's slow installation rates. Was theproblem. So these people are like,51600:41:06.719 --> 00:41:08.119screwt, We're not doing it's takingtoo long, We're just gonna get out51700:41:08.280 --> 00:41:13.360well in interest rates so high,the numbers aren't working exactly like they used51800:41:13.360 --> 00:41:15.119to work on interest rates. We'rehalf of That's what Zach was saying.51900:41:15.159 --> 00:41:20.440The one the guy that we havesolar, he said, the the the52000:41:20.039 --> 00:41:22.880the rates to that people were borrowingwith so much lower, so it made52100:41:22.880 --> 00:41:27.119so much sense. So the costof money is so much higher. Yes,52200:41:27.320 --> 00:41:31.920unless you're putting the whole thing outin cash. It's it's it takes52300:41:31.960 --> 00:41:36.760you takes more to get your returnon your equity, on your investment.52400:41:36.960 --> 00:41:40.239I want to spend a minute Deantalking about customer service. We we don't52500:41:40.280 --> 00:41:46.320talk about it much. We believeour customer services is as good as anyone's52600:41:46.360 --> 00:41:50.719in the country. I can't reallysay that it's better than anybody else because52700:41:50.800 --> 00:41:53.639there are other people with good service. But this past week I had occasion52800:41:54.000 --> 00:41:59.440to deal with a national bank herein Tucson. I have a ninety year52900:41:59.480 --> 00:42:02.000old client with an eighty four yearold wife. They don't have a cell53000:42:02.000 --> 00:42:07.159phone, they don't have a computer. They have set up some of their53100:42:07.159 --> 00:42:10.000payments on automatic payments, some oftheir utilities and things. I helped him53200:42:10.039 --> 00:42:15.920do that now they can't see who'sgetting paid what. Long story short,53300:42:16.199 --> 00:42:20.760the world's kind of passing them by, if you will. And so they53400:42:20.760 --> 00:42:24.880needed to get an appointment with thisbank and to get some they couldn't get53500:42:24.880 --> 00:42:30.800anyone to return their calls. Ifinally took it upon myself to get them53600:42:30.800 --> 00:42:34.480an appointment. I got a holdof someone at this bank, the manager53700:42:34.519 --> 00:42:37.760of the branch actually, and hesaid he would call them that day.53800:42:37.079 --> 00:42:39.760The next day, I called myclient to see if he had called.53900:42:39.880 --> 00:42:44.320He had not called, so Icalled again. He said, yeah,54000:42:44.400 --> 00:42:47.840yeah, I got tied up withsomebody. Finally, three days later he54100:42:47.880 --> 00:42:51.599did call them and set an appointmentfor them to come in next week.54200:42:51.639 --> 00:42:54.119But I mean, that's no wayto run a business. You can't get54300:42:54.159 --> 00:42:58.119a hold of the people in charge. I have left messages for him for54400:42:58.480 --> 00:43:01.559two consecutive days. Uh, It'sit's ridiculous, it is. I mean,54500:43:01.920 --> 00:43:05.840I always tell people if you emailme and I don't respond, the54600:43:05.880 --> 00:43:10.559same day, I've died. It'sthat simple. If I don't respond,54700:43:10.840 --> 00:43:14.760should say that, because it couldbe on the weekend and maybe your phone54800:43:15.400 --> 00:43:19.599wasn't working or something. I don'tthink even on a weekend that I wouldn't54900:43:19.599 --> 00:43:22.559respond to anything. We all tryto respond. Don't want to watch in55000:43:22.559 --> 00:43:25.079the NFL. If I get anemail from somebody, oh absolutely, I55100:43:25.480 --> 00:43:28.960respond to say, even if it'sabout Hey, I'll have somebody get in55200:43:28.960 --> 00:43:31.679touch with you on Monday. Thanksfor the like, thanks for the no.55300:43:31.719 --> 00:43:35.239I mean, this customer service it'sa it's a lost hour, it55400:43:35.360 --> 00:43:37.920isn't it. And it's so frustratingwhen you get involved with customer service.55500:43:37.960 --> 00:43:43.800It's so poor. And on theon the phone message for this national bank55600:43:43.920 --> 00:43:46.239and I'm not going to name whowas, it says, are we are55700:43:46.280 --> 00:43:51.920so proud of our excellent customer service? Are you serious? You have no55800:43:52.000 --> 00:43:54.280customers. Maybe it's against their peers. Yeah, like the other national banks55900:43:54.280 --> 00:43:57.800that have the big call centers andeverything. But I mean that's common.56000:43:57.840 --> 00:44:00.159The clients hate the call centers.I mean I hate call centers. When56100:44:00.159 --> 00:44:01.960I have to call AT and Tor something like that, you just get56200:44:02.000 --> 00:44:05.880bounced around until hopefully somebody knows whatthey're talking about. I wanted to talk56300:44:05.920 --> 00:44:09.639to you can understand them. Yeah, okay. I there's nothing more frustrating56400:44:10.119 --> 00:44:13.559than when you try to call upsomething and don't even know what you're really56500:44:13.599 --> 00:44:17.119trying to get and it goes outand next thing, GE's somebody from India56600:44:19.280 --> 00:44:22.880or Asia or something. And Itry to be very polite, I say,56700:44:22.920 --> 00:44:27.719I'm sorry, I'm having trouble understandingyou can we slow this down or56800:44:27.760 --> 00:44:30.639is there somebody else I can speakto? You know, so we get56900:44:30.679 --> 00:44:32.039this right, I mean, youknow, and they're very good about it,57000:44:32.360 --> 00:44:37.079but it's frustrating. But that's theother thing that bothers me is those57100:44:37.119 --> 00:44:42.119computerized answering service. Oh my god, as long as I'm at charge here,57200:44:42.719 --> 00:44:47.599I will never have a computerized answeringservice, okay, because there's nothing57300:44:47.599 --> 00:44:52.000more frustrating, especially when you're involvedwith your money, all right, getting57400:44:52.039 --> 00:44:58.679sent to someone and then not evenhaving then and then having a go through57500:44:58.719 --> 00:45:01.280this whole thing. What's your extension, what's this? Hit this? Put57600:45:01.280 --> 00:45:04.599the name in, and then itgoes look through all that, and then57700:45:04.639 --> 00:45:07.320you finally give a message, andlike you say, sometimes they don't even57800:45:07.400 --> 00:45:10.599call you back for a couple ofdays. Yeah. Yeah, it's just57900:45:10.639 --> 00:45:15.400it's very frustrating. Customer services arelost. Art At Greenberg Financial, we58000:45:15.559 --> 00:45:19.800promise you great customer service, periodand if not, you tell me.58100:45:19.960 --> 00:45:22.599Yeah, absolutely, you won't.It won't. You won't be talenting anything58200:45:22.639 --> 00:45:28.960because we have all of us concentrateon the customer service. Things slip through58300:45:29.239 --> 00:45:30.679once in a blue mood. We'renot letting things. We fix it.58400:45:32.800 --> 00:45:36.920We don't want to allow things toslip through. All right. So that58500:45:37.159 --> 00:45:45.639new lows pandemic post pandemic lows forPfizer and modernas as this COVID thing is58600:45:45.719 --> 00:45:49.800just not really getting much traction,They're back to being the stagnant or pfiserly58700:45:49.880 --> 00:45:52.079is back to being the stagnant valuestock. Yeah, c DC said.58800:45:52.360 --> 00:45:54.480You know, when it was inthe fifties, we were saying on this58900:45:54.599 --> 00:46:00.559radio show, sell that stock valuesocks are down this year. Okay,59000:46:00.800 --> 00:46:04.159a lot of them will even gettingkilled, all right. I mean we59100:46:04.239 --> 00:46:06.920need to keep these tech stocks up. They have to have good earnings and59200:46:06.960 --> 00:46:10.119move higher if we want any chanceof this market staying Up's going to lead59300:46:10.119 --> 00:46:13.599the way for sure. If itdoesn't lead the way, we're in trouble59400:46:13.639 --> 00:46:16.199this last quarter. Busy week nextweek for earning to Microsoft, Google,59500:46:16.559 --> 00:46:21.480Amazon, Meta all next week yep. So that's gonna go along. Video59600:46:21.559 --> 00:46:25.360it comes out afterwards after the bigone, right, that's usually about last.59700:46:25.519 --> 00:46:30.360Yeah, we're gonna get a let'stalk about in video because it's taken59800:46:30.400 --> 00:46:36.320a big wash here because of theof the White House obviously not allowing certain59900:46:36.360 --> 00:46:39.760ships now to be able to besold to China because they don't want their60000:46:39.800 --> 00:46:44.960military to have the artificial intelligence ofwhat our military is. And I think60100:46:44.960 --> 00:46:46.280we're all in on that. Yeah, I don't have a problem with that.60200:46:46.679 --> 00:46:51.800But what people don't realize is thatin the video also knows this,60300:46:52.639 --> 00:46:57.239and it won't take them very longto find the chip that meets the the60400:46:57.239 --> 00:47:00.880the the the level that will letthem sell it to China. Not only60500:47:00.880 --> 00:47:04.559that, but in the short termthey have so much demand they can't even60600:47:04.599 --> 00:47:07.920know around the world, everybody elsearound the world, whatever was going to60700:47:07.000 --> 00:47:09.840China, everybody else is doing it. The demand is off the charts right60800:47:09.840 --> 00:47:15.760now until twenty twenty five, theyare going to keep beating. Earnings dropped60900:47:15.760 --> 00:47:17.960from four hundred five hundred down tofour hundred, right close to four hundreds.61000:47:19.079 --> 00:47:21.880And the people that were at sevenfifty, so they went to six61100:47:21.960 --> 00:47:24.199seventy five on the price, andthey went from six fifty to six twenty61200:47:24.199 --> 00:47:28.199five. They went the lowest Isaw with City Bank said, oh I61300:47:28.199 --> 00:47:30.639think that I don't think we canhit over six hundred. So my estimate61400:47:30.679 --> 00:47:35.320now is five seventy five. Yeah, and it's currently four ten. Yeah.61500:47:35.480 --> 00:47:38.239There you go. That's that's thelowest lowest one out there. Right,61600:47:38.880 --> 00:47:40.880all right, we got to takea short break, will be right61700:47:40.880 --> 00:47:53.480back. Thank you for listening.Say it's only a name. Welcome back61800:47:53.480 --> 00:47:58.280everybody for the second now with theMoney Matter Show, we got Dylan,61900:47:58.440 --> 00:48:01.440Todd, Dave, and myself,and then we also have a guest on62000:48:02.159 --> 00:48:07.719that is going to talk about thefederal employee program that we're doing and the62100:48:07.719 --> 00:48:12.199workshop very very important. Dylan,you can give a little bit more.62200:48:12.320 --> 00:48:15.280Yeah, So this next segment afterthis one, it's gonna be Sean McCoy62300:48:15.320 --> 00:48:17.719from Federal Employee Benefit Advocates is goingto come on and we're going to talk62400:48:17.760 --> 00:48:22.280to him about the upcoming workshop thatwe're hosting on December thirteenth over at the62500:48:22.320 --> 00:48:27.880Tucson Association Realtors. It's for federalemployees, whether they're getting ready to retire62600:48:27.880 --> 00:48:30.719in the next year, ten years, or they're starting trying to get interested62700:48:30.760 --> 00:48:35.039in what's going on with their retirementplan because I mean, if you're a62800:48:35.079 --> 00:48:37.960federal employee, you know that you'rehaving a unique retirement plan, whether it's62900:48:37.960 --> 00:48:42.639the pension, the FACILLY, theFEHB, all of that different stuff goes63000:48:42.639 --> 00:48:46.559into us. So that's why wehold a special seminar workshop for federal employees63100:48:46.599 --> 00:48:49.840because we know there's a lot thatgoes into it and we want you to63200:48:49.920 --> 00:48:52.840be ready for retirement. So it'sfree to go. You can actually probably63300:48:52.880 --> 00:48:57.000get a pay day off for mostdepartments. I think there's only been one63400:48:57.039 --> 00:49:00.920I remember that didn't allow us thatform S F one eighty two. If63500:49:00.960 --> 00:49:04.840your department offers it, then you'llget to pay a day off. So63600:49:04.880 --> 00:49:07.280if you're interested in your federal employee, give us a call at five two63700:49:07.360 --> 00:49:10.280zero five four four four nine zeronine and we'll be happy to sign you63800:49:10.400 --> 00:49:14.920up for it. Like I said, it's free. It's just an educational63900:49:15.000 --> 00:49:16.519workshop, will provide launch everything likethat. It's a great day, a64000:49:16.519 --> 00:49:20.960lot of information to learn. ButSean McCoy will be going into more depth64100:49:21.280 --> 00:49:24.000this next segment about what we're goingto go over that day. So what64200:49:24.079 --> 00:49:29.079a great, great opportunity. Yeah, he's been doing it for years.64300:49:29.320 --> 00:49:30.320Obviously he'll go more into it.But he's been doing it for years.64400:49:30.320 --> 00:49:34.679He's helped thousands of different federal employeesdone this all over the country. It's64500:49:34.719 --> 00:49:37.519a great thing to do. Butsince we're starting the next hour, I64600:49:37.519 --> 00:49:38.760want to go back to the markets. We got the dial that was down64700:49:38.760 --> 00:49:42.360one and a half percent for theweek. The S and P five hundred64800:49:42.400 --> 00:49:45.840was down two point four for theweek, NASDAK was down three point two64900:49:45.840 --> 00:49:49.760percent, and then Russell two thousandwas down two point two percent. Interestingly65000:49:49.880 --> 00:49:52.320enough, the equal weighted SMP fivehundred, which we've been harping on a65100:49:52.320 --> 00:49:55.400lot more this year, was downexactly two point four percent as well.65200:49:55.519 --> 00:49:59.880And definitely five hundreds is down.Dollar is down for the year, the65300:50:00.159 --> 00:50:02.400equalated S and P five hundred isdown for the three percent for the year.65400:50:02.880 --> 00:50:06.159Russell two thousands down the most forthe year, which is down four65500:50:06.159 --> 00:50:07.840and a half percent. I mean, the Nasdaq's twelve percent off the high65600:50:07.840 --> 00:50:12.079of the year was but still attwenty four percent because tech has been riding65700:50:12.119 --> 00:50:15.760it. We said during the firsthour it's not unusual for September and October65800:50:15.760 --> 00:50:19.840to be week yep in November,December, January to be the strongest three65900:50:19.880 --> 00:50:22.400months of the year. Uh,there have been times when December has been66000:50:22.440 --> 00:50:27.280a nightmare, but generally it's agood month. November is generally a good66100:50:27.320 --> 00:50:31.559month. And so hopefully we canget through the next what seven business days66200:50:31.599 --> 00:50:36.320I think it is, or eightseven or eight business days and in October66300:50:36.360 --> 00:50:38.519without any kind of major problem whereyou geteah, pretty much like a full66400:50:38.559 --> 00:50:42.440week next week or this coming week, and then we got like one day,66500:50:42.679 --> 00:50:44.559well I think it's a couple ofdays, yeah, two days,66600:50:44.599 --> 00:50:47.960yeah, and the next week andI don't know the Christmas high y'all noticed,66700:50:49.480 --> 00:50:52.559But we had an interesting bitcoin rallythis week. We talked about We66800:50:52.599 --> 00:50:54.400talked about that earlier. Yeah,did did you have any insight into that?66900:50:54.559 --> 00:51:00.599Well, I think the the buzz, the hype around next year having67000:51:00.639 --> 00:51:02.599which I've talked about before. Iwon't go into detail, but the havening67100:51:02.639 --> 00:51:07.239of twenty four I think it's startingto get real. Not only you have67200:51:07.280 --> 00:51:09.719the spot ETF, the whispers.There was this fake article that happened on67300:51:09.800 --> 00:51:14.159Monday that said black Rock was approvedby the SEC for the spot ETF.67400:51:14.199 --> 00:51:17.320It turned out to be complete bogus, but bitcoin had a surge to twenty67500:51:17.320 --> 00:51:22.239eight thousand, gave it all backup in ten minutes, but then that67600:51:22.239 --> 00:51:24.039started the rally for the week,and now we're back up to thirty thousand.67700:51:24.119 --> 00:51:28.440So I do think there's some hypebeing built in there. And when67800:51:28.480 --> 00:51:31.760you see bitcoin up nine percent ona week when the markets NASDAK itself was67900:51:31.800 --> 00:51:36.320down three percent. Bitcoin's the riskyasset. It shouldn't be up that,68000:51:36.480 --> 00:51:39.199but they're calling it. On Friday, there's even a headline that said they're68100:51:39.199 --> 00:51:42.639going for the safety of it,and I was like, I don't think68200:51:42.639 --> 00:51:45.079bitcoin's got safety. Yeah, Ithink those are talking heads. That's what68300:51:45.079 --> 00:51:47.840we talked about. Yeah, maybethey're just a bitcoin media coming out and68400:51:47.880 --> 00:51:52.199saying it's a safe haven like gold, like digital gold. Right it's just68500:51:52.320 --> 00:51:53.920well, I think obviously not.We see that with gold right now.68600:51:53.960 --> 00:51:58.039I mean gold had the last twoweeks, it's just taken off and everyone68700:51:58.119 --> 00:52:00.599has the idea of it's a safehaven. But at the end of the68800:52:00.679 --> 00:52:02.440day, I mean, how safeis it. We've seen the performance,68900:52:02.480 --> 00:52:07.760we know the actual So I meanwe know talking heads they love to find69000:52:07.800 --> 00:52:12.320reasons that aren't really the reason.Yeah, we do get questions sent to69100:52:12.400 --> 00:52:15.119us at contact at Greenberg Financial dotcom. We do, and Sebastian has69200:52:15.159 --> 00:52:19.760those questions, what do you goon to I got a couple this week?69300:52:19.800 --> 00:52:22.920How are we doing? Guys doingwell? You don't care give us69400:52:22.920 --> 00:52:25.800a question. That's your answer everytime, Dave, it's just call me69500:52:25.880 --> 00:52:29.480courtesy to ask. You could justbe nice, you know what, You're69600:52:29.559 --> 00:52:31.599right, I don't care. Here'sthe question. Somebody told me last year69700:52:31.599 --> 00:52:34.440would have given up for lent,and I said, I'm giving up being69800:52:34.519 --> 00:52:37.480nice. Get to work now.It's been three hundred and sixty five days.69900:52:37.920 --> 00:52:40.639I'm gonna give it up again.You liked it so much that he70000:52:40.679 --> 00:52:44.599just gave it up. Yeah,I gat get over it all right.70100:52:44.639 --> 00:52:46.320So a little bit of a longerquestion this time around. This one comes70200:52:46.320 --> 00:52:50.559in from Carl. He says,good morning. I often hear you refer70300:52:50.639 --> 00:52:52.519to the S and P five hundredas an indicator of what's going on in70400:52:52.559 --> 00:52:57.199the market, while I always havebeen leaning towards the Dow, which do70500:52:57.239 --> 00:53:00.039you think is more of a morerealistic indocation of what is going on in70600:53:00.079 --> 00:53:04.840the marketplace? So go ahead,dot Yeah, I mean so the Dow70700:53:04.960 --> 00:53:07.480is always the most talked about one. It's the biggest number. It seems70800:53:07.519 --> 00:53:09.119like it's always the big number onthe TV shows that you're the oldest,70900:53:09.400 --> 00:53:14.199it's the oldest as well. Really, what the Dow is is thirty stocks71000:53:14.599 --> 00:53:17.480that a committee picks and they waitedso if they don't think like and they71100:53:17.480 --> 00:53:20.800can switch it out whenever they want, Like they just switched out what was71200:53:20.840 --> 00:53:24.920it they switched out something for WalgoGreens got the company that kicked out maybe71300:53:25.320 --> 00:53:29.400it was g And they do thatperiodically every few years. They kick them71400:53:29.440 --> 00:53:30.960out and then because they're not performing, and if they kick them out,71500:53:30.960 --> 00:53:34.880they tend to do better after.That's truly, if you get it and71600:53:35.599 --> 00:53:37.920it's short the newest stock that's beenadded, you generally do. Really it's71700:53:37.960 --> 00:53:40.800really interesting. Yeah, but soit's only thirty stocks and it's picked by71800:53:40.840 --> 00:53:44.519a committee. It's not market cap, it's not how big the company is,71900:53:44.559 --> 00:53:46.920how well the company it does.The S and P five hundred is72000:53:47.280 --> 00:53:52.039five hundred company, five hundred andfour companies. Yeah, they're exactly.72100:53:52.079 --> 00:53:54.679Yeah, there's some stocks have twoclasses. Yeah, but it's like Google72200:53:54.679 --> 00:53:59.760Google. Yeah, so it's fivehundred companies of the largest companies in the72300:54:00.159 --> 00:54:02.320in the world that trade on theNew York Socks, Chans and all that,72400:54:04.000 --> 00:54:07.400and that's how it's weighted, Soit's five hundred largest companies, and72500:54:07.400 --> 00:54:13.519it's a bigger diversification and adds morereal life aspect of what's going on,72600:54:13.599 --> 00:54:16.280not just thirty stocks that somebody's picking. And it is market cap weighted,72700:54:16.360 --> 00:54:21.400however, so you can get itcan get skewed like it is this year72800:54:21.440 --> 00:54:25.719where you have seven stocks, thenotorious ones we've always talked about, the72900:54:25.760 --> 00:54:30.039Metas and the Amazons and the Applesof the world that are skewing the index.73000:54:30.400 --> 00:54:35.599And probably if you're wanting to seehow the market is doing, how73100:54:35.679 --> 00:54:42.800your portfolio is doing, that equalweighted SMP five hundred symbol RSP is probably73200:54:42.880 --> 00:54:46.679the best single indicator of how theoverall market is doing. And that's why73300:54:46.719 --> 00:54:52.320this year seems it's just fabricated becauseSMP five hundred is up ten percent,73400:54:52.920 --> 00:54:57.239the RSP is down three percent.But what you see on CNBC and Fox73500:54:57.280 --> 00:55:00.599News and CNN, whatever you're watchingis the S and P five hundred.73600:55:00.679 --> 00:55:04.599So you're looking at your account saying, why am I not up ten percent?73700:55:04.960 --> 00:55:07.440But most of the time you're noteven one hundred percent In equities,73800:55:07.480 --> 00:55:09.760which is you'd have to be tobe an SMP five ten percent. But73900:55:09.800 --> 00:55:13.440also I mean equal way, it'sdown three percent of most companies unless you74000:55:13.480 --> 00:55:15.599pick those seven companies, not gonnabe up. I left a little bit74100:55:15.599 --> 00:55:19.199of Carl's question now I want togive them some credit, because he was74200:55:19.440 --> 00:55:22.360onto something here. He says,I've noticed the regardless of which index I74300:55:22.440 --> 00:55:24.840choose, it seems the most mostof the movements is always based on some74400:55:25.599 --> 00:55:30.320on the same alphabet Tesla Meta,those types of companies. So in my74500:55:30.440 --> 00:55:32.480view, he says, this isa bad thing. More so since those74600:55:32.519 --> 00:55:36.280big four are in many ways amonopoly. I would think that a true74700:55:36.320 --> 00:55:39.320bull market would be driven by smallcap outfits, as they would reflect a74800:55:39.360 --> 00:55:44.880more consistent consumer based growth pattern.This is what made me wonder just how74900:55:45.079 --> 00:55:49.360the real economy is portrayed within thesemarkets. I think the RSP that they75000:55:49.440 --> 00:55:52.239equal, waited s and P fivehundred is where you want to look.75100:55:52.480 --> 00:55:55.239The real economy is not going tobe the small cap stocks. Those are75200:55:55.280 --> 00:55:59.880the emerging markets, those are thenew companies. That's not the real economy.75300:56:00.159 --> 00:56:05.960The real economy are the five hundredlargest stocks in this country equally waited.75400:56:06.400 --> 00:56:08.920Okay. Also, there's some funfacts about the Dow Jones that was75500:56:08.960 --> 00:56:15.079created by Charles Dwell who was ajournalist and he started was one of the75600:56:15.079 --> 00:56:17.800ones that created the Wall Street Journal. And it started with twelve stocks.75700:56:19.079 --> 00:56:22.800That was it twelve initially it wasinitially twelve. Can you guess the year75800:56:23.079 --> 00:56:29.360nineteen twenty six? No, nineteenthirty one? Wrong, forty three wrong?75900:56:29.440 --> 00:56:34.840Centuries eighteen hundreds, wow, eighteenninety six containing twelve stocks, expanded76000:56:34.840 --> 00:56:37.320in thirty stocks in nineteen twenty eight, and that's the numbers still making take76100:56:37.480 --> 00:56:43.679a day. But the oldest dallastockever and it's no longer in it.76200:56:45.280 --> 00:56:51.519Oh this mean how the oldest stockthat was in the Dow Ge Yeah.76300:56:51.679 --> 00:56:53.599GE started in eighteen ninety six,ended in twenty eighteen. Yeah, that76400:56:53.679 --> 00:56:57.320was amazing. When they removed G, that was like a heck of a76500:56:57.400 --> 00:57:00.320day for those of us who havebeen around a while, like really taking76600:57:00.400 --> 00:57:04.360GE the down court. Since then, G's taken off and they replaced it76700:57:04.400 --> 00:57:06.880with Walgreens, which is falling apart. That was one of the things I76800:57:07.039 --> 00:57:10.360was shocked by was GE's top fiveperformer sh it up with Meta in the76900:57:10.400 --> 00:57:14.639video. I'm just like, becausethey broke off their companies and they started,77000:57:14.639 --> 00:57:16.360they did a lot better with thatthey did, but they also reverse77100:57:16.440 --> 00:57:22.599split, and generally reverse split isa kiss. When a stock reverse splits,77200:57:22.719 --> 00:57:28.239you want out fast. And whenGe reverse split, I sold all77300:57:28.239 --> 00:57:31.320of our GE and it promptly wentdown about twenty percent, and I felt77400:57:31.360 --> 00:57:35.480like a genius. And now it'sdoubled. That seems like one of the77500:57:35.519 --> 00:57:38.679only instances that happened. It isit's so rarely, so rare reverse split77600:57:38.760 --> 00:57:40.880is because it's for a reason.Yeah, I was feeling pretty good there77700:57:40.960 --> 00:57:45.960for a while. Hey, yougot another question for us? I do77800:57:45.039 --> 00:57:47.639have another one that came in fromWayne, he asked. He says,77900:57:47.639 --> 00:57:51.599Hello, I have two children headedoff to college within the next five years.78000:57:52.079 --> 00:57:54.760I'm ready to start saving for theireducation. What are some effective investment78100:57:54.800 --> 00:57:59.840options to help cover their tuition costs. I'm not really sure if he's referring78200:57:59.880 --> 00:58:05.440to investment vehicles or what type ofplan I suppose, but yeah, I78300:58:05.440 --> 00:58:08.679mean it's a it's a loaded questionbecause it comes down to your preferences as78400:58:08.719 --> 00:58:12.360a parent. I mean, ifyou have something where you're you want a78500:58:12.400 --> 00:58:15.639lot of control, you have.You have a lot of options. You78600:58:15.679 --> 00:58:17.079have utmas, you have ugmas,you have five twenty nine plans, you78700:58:17.079 --> 00:58:21.800have corvidels to essays, and thenyou can just do individual accounts. You78800:58:21.800 --> 00:58:24.199can open up a roth IRA.Right. There's so many points, and78900:58:24.280 --> 00:58:28.559that's why I won't even start totry to answer that question. It comes79000:58:28.559 --> 00:58:30.719down to the financial plan. Imean, if you're going to be doing79100:58:30.800 --> 00:58:35.079something on a multi year basis ofpaying out money and draining assets, it79200:58:35.119 --> 00:58:39.400needs to be done with a financialplan, or you're really just I mean,79300:58:39.400 --> 00:58:44.239I don't know what the word is. I think that's a good answer,79400:58:44.280 --> 00:58:49.280Todd. It really is individualized.If you wanted to give the child79500:58:49.320 --> 00:58:52.280a large sum of money, you'dhave to go five twenty nine. Right.79600:58:52.559 --> 00:58:54.960If you want to give the childa custodial account where they're going to79700:58:54.960 --> 00:58:59.480pay all the taxes, you douniform trust to minors. If you would79800:58:59.519 --> 00:59:04.119like to have total control over itin case your child doesn't turn out to79900:59:04.119 --> 00:59:07.199be, you know, the nextrocket scientist, then you would do a80000:59:07.280 --> 00:59:12.199joint account, just title a collegeaccount, or ROTH in your own name.80100:59:12.239 --> 00:59:14.039You could do a ROTH in yourown name. Sure, So there's80200:59:14.119 --> 00:59:17.000lots of options. And that's wherethe financial plan comes in to play.80300:59:17.119 --> 00:59:21.400Hey, uh, Tesla, whata week for Tesla? Right? I80400:59:21.480 --> 00:59:27.800was I was hiking on a weekago yesterday and the guy asked me what80500:59:27.840 --> 00:59:31.599I thought about Tesla and I saidthe car because I was wearing a Tesla80600:59:31.639 --> 00:59:35.159T shirt. And I said youmean the car and he goes, no,80700:59:35.239 --> 00:59:37.639it's dock. I said, sellit. I'm feeling pretty good about80800:59:37.679 --> 00:59:40.920that advice right now, and I'mthinking that when I go to Tomamark the80900:59:40.960 --> 00:59:44.239next time, if I see him, he'll be wanting to know what else81000:59:44.280 --> 00:59:45.639I like. Well, you feltpretty good about G two, So that's81100:59:45.679 --> 00:59:49.519any indication? Good point, gottto go buy points. Tesla did tank81200:59:49.679 --> 00:59:53.199last week. It tanks ten percentlower on Thursday morning after reporting the disappointing81300:59:53.280 --> 00:59:58.559quarter. This is the interesting part. At ten percent decline in operating margins81400:59:58.960 --> 01:00:04.559and very cautious. Elon Musk wasconcerned about the economy. He's saying that81501:00:04.599 --> 01:00:07.920the cyber truck will probably take ayear to eighteen months to become profitable.81601:00:08.360 --> 01:00:15.079If ever, you know the he'slowering prices because he's concerned about affordability.81701:00:15.760 --> 01:00:19.360They're losing market share, which iswhich you expect right. For a long81801:00:19.400 --> 01:00:22.920time, they were the only horsein the race. Now there's a lot81901:00:22.960 --> 01:00:25.360of them. You drive around townand look at the Cloud license plates.82001:00:25.400 --> 01:00:30.679They're not all Tesla's. There's asI saw BMW the other day and it82101:00:30.760 --> 01:00:37.000wasn't that that little BMW came outwith an electric vehicle a few years back.82201:00:37.079 --> 01:00:39.079That's kind of a funky looking thing. It's kind of almost square,82301:00:39.519 --> 01:00:45.199doesn't really look like a BMW.This was actually a BMW looking BMW Loo82401:00:45.440 --> 01:00:50.400look good and had the Cloud licenseplate on it. I did see Elucid82501:00:50.480 --> 01:00:53.079car last weekend. Lucid. Yeah, it was actually a cooler looking than82601:00:53.119 --> 01:00:55.559the original one. I don't knowif it's because it was just all white,82701:00:55.599 --> 01:00:58.719but it looked a lot better thanthe original one we talked about.82801:00:58.960 --> 01:01:01.599Yeah, the ones i've seen arekind of in a gold or a brown.82901:01:01.679 --> 01:01:06.320Is that weyan They only have acouple of colors. It actually pretty83001:01:06.320 --> 01:01:07.599cool and it was white. Itwas all white. Yeah. I think83101:01:07.599 --> 01:01:12.960it's time for a trip to theEV Garage and the EV Garage. The83201:01:12.960 --> 01:01:15.320EV Garage, that's a good segue, right, the EV Garage. This83301:01:15.360 --> 01:01:20.719week we're going to talk about theBig Lie what's that. The real big83401:01:20.760 --> 01:01:25.400lie, The real big lie isrange range numbers. They represent the range83501:01:25.440 --> 01:01:29.599you can get. When you seean advertised range on an electric vehicle,83601:01:29.960 --> 01:01:32.760you're seeing the range that you getin the perfect world in which none of83701:01:32.840 --> 01:01:38.320us live. And lithium ion batteryappears to have a maximum range of about83801:01:38.320 --> 01:01:43.000three hundred miles in that perfect world. And by perfect world, I mean83901:01:43.119 --> 01:01:46.119flat ground, seventy degree weather,sixty five miles. Nobody drives like that,84001:01:46.199 --> 01:01:51.039nobody. The largest car company inthe world is Toyota, and they've84101:01:51.039 --> 01:01:53.559been focusing on the hybrid. Butback in April, a new CEO took84201:01:53.559 --> 01:02:00.480the range range and changed the directionof Toyota to electric. About ten days84301:02:00.480 --> 01:02:05.880ago, toyotastruck a deal with Japaneseoil company and I'm going to murder this.84401:02:06.480 --> 01:02:15.519I demutsu Kosin to mass produce ultrahigh range electric vehicle solid state batteries.84501:02:15.519 --> 01:02:19.199Now, let them them solid statebatteries that have a range of nearly84601:02:19.280 --> 01:02:24.760one thousand miles and can charge inten minutes. The technology has been in84701:02:24.840 --> 01:02:28.920development with at this oil company sincetwo thousand and one. Because they could84801:02:28.920 --> 01:02:31.519see the riding on the wall.There's going to be decreasing demand for oil.84901:02:31.800 --> 01:02:36.119So how about we get involved inthe battery business that helps to offset85001:02:36.159 --> 01:02:38.199the oil. That doesn't make anysense. What you mean, how could85101:02:38.199 --> 01:02:40.960you be in two thousand and onethinking we're going to be using decreasing demand85201:02:42.119 --> 01:02:45.960of oil when population is increasing.No, two thousand and one being the85301:02:45.400 --> 01:02:50.400increase in the in electric vehicles.They can see the electric vehicles were good,85401:02:50.440 --> 01:02:52.400but not that we're going to useless oil. No, we will85501:02:52.519 --> 01:02:57.079use less oil. That's how wewant it. We have a larger population85601:02:57.119 --> 01:02:59.559than we did in two thousand andone. If you if you were to85701:02:59.599 --> 01:03:02.719have a fifteen or twenty million electricvehicles, you're going to use less oil85801:03:04.519 --> 01:03:07.199in maybe just America, we're talkingabout the world. Yeah, I'm talking85901:03:07.320 --> 01:03:09.639exactly no, because the people inthe world are going to use actual oil86001:03:09.679 --> 01:03:14.960now. Anyway, this if youcan get a electric vehicle that can go86101:03:15.000 --> 01:03:20.679one thousand miles and charge in tenminutes, you'd there'd never be a reason86201:03:20.679 --> 01:03:23.159to own a gasoline powered car againin your life. As a game changer.86301:03:23.320 --> 01:03:29.519Here's the problem. The mass productionis hard with solid state batteries.86401:03:29.960 --> 01:03:32.239They think they've got it figured out, but it's probably not going to be86501:03:32.239 --> 01:03:37.159available for retail clients for five years. Do you know if graph fight goes86601:03:37.159 --> 01:03:39.320into those solid state batteries, Idon't. I know lithium does. Okay.86701:03:39.320 --> 01:03:42.840The only reason I ask is becauseI saw a report today that said86801:03:43.079 --> 01:03:45.599China has released plans to restrict theseexports of graph Fight, a crucial mineral86901:03:45.599 --> 01:03:51.960for the manufacturing process of these batterieswithin these electric vehicles. This came in87001:03:52.000 --> 01:03:55.400just a few days after United Statesimposed additional limits on the kinds of semiconductors87101:03:57.440 --> 01:04:01.480that American companies can sell to theseChinese two interesting. Yeah, but at87201:04:01.480 --> 01:04:04.079the end of the day, Imean CNBC talked about it too. House87301:04:04.159 --> 01:04:08.840China going to enforce that. There'sa lot of people that they don't really87401:04:08.840 --> 01:04:14.679know how they could. So it'smade just for enforce the restrictions I mean87501:04:15.719 --> 01:04:18.000graphite, Yeah, I mean justbecause you say you're not supposed to.87601:04:18.159 --> 01:04:20.679We know what, China will saya lot of things and never actually do87701:04:20.760 --> 01:04:24.960it. So it might just bea tip for tap on a you know,87801:04:24.960 --> 01:04:28.239because all they care about is,you know, perception. So if87901:04:28.280 --> 01:04:30.840it's on their China state media thatwe're fighting back, you know, I88001:04:30.239 --> 01:04:34.039mean, they they're coming after USon our chips, so the US Chip88101:04:34.039 --> 01:04:39.280Act, which we talked about thisweek, we did, But again,88201:04:39.440 --> 01:04:42.559I think it's it's one of thosethings that the China's all about perception,88301:04:44.119 --> 01:04:47.960the like the four point nine percentGDP growth, not only that, or88401:04:48.000 --> 01:04:50.400like the twelve hundred people that gotCOVID out of the two billion that live88501:04:50.440 --> 01:04:56.559there. Yes, yes, andagain we've got Moderna and Fighter hitting new88601:04:56.599 --> 01:05:02.360fifty or new post pandemic lows becauseof the lack of a demand at this88701:05:02.400 --> 01:05:06.199point. Now it is mid October, right, so it's not we're not88801:05:06.280 --> 01:05:11.880yet into the season where you'd expectit to really ramp up. But Pfizer88901:05:12.000 --> 01:05:16.440was saying they expect twenty five percentof American people to get the new vaccine,89001:05:16.920 --> 01:05:21.079and I'm not seeing that happening,and apparently others aren't either, which89101:05:21.159 --> 01:05:28.480is why the stock of Walgreens,CBS, Moderna, Pfizer are all tanking.89201:05:28.760 --> 01:05:30.480Yeah. No, there's no waythat twenty five percent. You just89301:05:30.480 --> 01:05:33.280can't imagine. It's hard. It'shard to make, especially when I hear89401:05:33.280 --> 01:05:36.400the people who have had the fivevaccines and they're saying, how many vaccines89501:05:36.400 --> 01:05:40.400do I need? When those peoplestart saying that, I mean, how89601:05:40.639 --> 01:05:43.960how much demand is there left?Well, I think you know I have89701:05:44.159 --> 01:05:46.280I've had three vaccines. I thinkthere's been that, there's been four,89801:05:46.280 --> 01:05:49.440and now a fifth one. Ilost track. I don't know. I89901:05:49.840 --> 01:05:53.800know I know people who have hadfive. Yeah, I think you forget90001:05:54.320 --> 01:05:57.199one guy in India. Member hehad thirty. The one guy in India90101:05:57.199 --> 01:06:01.840had thirty and has never felt betterand his back pain has gone away.90201:06:02.320 --> 01:06:08.840Really Okay, so this is thenew uh uh no placebo effect? Yeah,90301:06:08.960 --> 01:06:12.880I did that. That couldn't possibleto lose weight too. Yeah,90401:06:12.920 --> 01:06:15.440I'm thinking at this point, Iknow, I know I've had three vaccines.90501:06:15.480 --> 01:06:18.800I know I've had COVID twice,probably had it four or five times,90601:06:19.039 --> 01:06:23.639right, And along with three vaccines, I'm thinking I kind of probably90701:06:23.679 --> 01:06:27.039built up some kind of an immunityhere. Nope, you know, I90801:06:27.039 --> 01:06:30.239think it's important though. Let's let'stalk about China again though, because what90901:06:30.599 --> 01:06:33.480what's going on in Macau is reallyinteresting. They said that the traffic is91001:06:33.559 --> 01:06:39.039just about normal for for domestic traffic, and they're they're still down about twenty91101:06:39.039 --> 01:06:44.800five percent from visitors from pre pandemiclevels. But if that gets back.91201:06:44.880 --> 01:06:47.639I mean, you're going to seepeople like I believe when it has a91301:06:47.679 --> 01:06:55.039lot of exposure, right, andthen Las Vegas Sands that company, so91401:06:55.280 --> 01:06:58.519that's an interesting thing. We seeNike getting a bid over the last couple91501:06:58.559 --> 01:07:01.280of weeks, which there's n aboutthem, as well as Starbucks having a91601:07:01.280 --> 01:07:04.800lot of their business in China andthat was kind of weighing on those stocks.91701:07:04.800 --> 01:07:08.079And now we've seen a little bitof a change there. So we're91801:07:08.079 --> 01:07:12.039seeing some better sentiment coming out ofChina. And with their rate cuts,91901:07:12.079 --> 01:07:15.519they actually they did not rate cutjust over the over last night. They92001:07:15.599 --> 01:07:19.679could have, but they didn't,so it's showing some you know, robustness92101:07:19.679 --> 01:07:26.360there. Las Vegas Sands reported goodresults last week and good results in Vegas92201:07:26.360 --> 01:07:30.679and good results in Macau which helpedboost WIN a little bit. But Win92301:07:30.800 --> 01:07:32.480is way down. It is downagain. It was over one hundred again92401:07:32.480 --> 01:07:34.519and now it's back to eighty seven. It was over one hundred and ten.92501:07:34.920 --> 01:07:39.159Yeah, over one hundred and tenlevel. Now it's down what ninety92601:07:39.280 --> 01:07:43.159is in the eighties. Eight inthe eighties now, I mean, and92701:07:43.239 --> 01:07:48.000going back to that, if Macaucan get his normal traffic, Las Vegas92801:07:48.000 --> 01:07:51.719sands Win. The other six casinosthat are in there, they have a92901:07:51.719 --> 01:07:55.639stronghold on that area. They're notallowed. No other casinos allowed to go93001:07:55.679 --> 01:07:59.000in there for another seven eight years. Yeah, so you can just get93101:07:59.039 --> 01:08:01.960back to normal, it'll help wina lot. Yeah. I wonder if93201:08:02.039 --> 01:08:06.119MGM has any exposure to China.They do. Yeah, I think it's93301:08:06.199 --> 01:08:11.840three, three or four US companieshave exposure there and then a couple of93401:08:11.880 --> 01:08:15.960Chinese ones. We talked about howWalgreens and CBS have been struggling to right93501:08:16.039 --> 01:08:19.800aid, which is along struggling pharmacychain. I went ahead and filed for93601:08:19.880 --> 01:08:27.920bankruptcy Sunday because of guess what flowingCOVID demand, rising debt, and lowsuits93701:08:27.960 --> 01:08:31.439related to the opioid crisis. That'sa deadly combination, isn't it. Yeah.93801:08:31.720 --> 01:08:34.880I mean, have you talked aboutNetflix and we did not? Let's93901:08:34.880 --> 01:08:39.000go ahead and talk. I mean, Netflix was an incredible earnings report.94001:08:39.399 --> 01:08:43.119It was just doing terrible as astock leading up to earnings, and I94101:08:43.119 --> 01:08:45.199couldn't figure out why it just keptselling off and selling off, and then94201:08:45.319 --> 01:08:49.319boom, earnings come out and Ithink it was up fifteen percent the next94301:08:49.399 --> 01:08:53.920day, held on Friday, evenwhen the markets were down at Held and94401:08:53.960 --> 01:08:58.479it wasn't really the earnings report somuch as the subscriber number. The password94501:08:58.520 --> 01:09:01.960crackdown, right, and that's thethey are attributing that to the password crackdown,94601:09:02.000 --> 01:09:05.279which started just a few months ago. Right, yeah, I'm like,94701:09:05.319 --> 01:09:09.239and now they're back to growth.I think it was a year ago94801:09:09.239 --> 01:09:12.399they were saying they lost two hundredthousand subscribers, which actually turned out to94901:09:12.399 --> 01:09:15.279be a million subscribers. So they'reon the decline because the market's getting more95001:09:15.319 --> 01:09:18.399saturated and they stop growing as much. But now they're looking at as more95101:09:18.399 --> 01:09:23.079growth. Also, they're looking intogetting to live sports. Yeah, that'd95201:09:23.119 --> 01:09:26.600be very interesting. They're starting withgolf and they're looking to do that,95301:09:26.760 --> 01:09:28.880so it's going to be open upa whole new thing. I know they've95401:09:28.880 --> 01:09:30.279been trying to get into gaming aswell. I don't know where they stand95501:09:30.279 --> 01:09:33.520on it, but they're trying toget into different avenues because they know their95601:09:33.520 --> 01:09:38.279content can only be so much theirbusiness when every other company is doing the95701:09:38.279 --> 01:09:41.800same. It's like anything in thisstreaming world, it's all about subscriber growth,95801:09:41.800 --> 01:09:45.600and subscriber growth that's a good thing, right, Hey, lithium stocks95901:09:45.880 --> 01:09:49.159plunged on Wednesday. We've got aclient that was wanting to buy lithium stocks96001:09:49.159 --> 01:09:53.640when we're looking at it. Bankof America downgraded the group on Wednesday,96101:09:53.680 --> 01:10:00.239saying increased production of lithium has broughtthe market from shortages to sufficient supplies and96201:10:00.279 --> 01:10:03.399predicts it in twenty twenty four andtwenty twenty five there's going to be oversupply96301:10:03.920 --> 01:10:09.760more lithium then we can possibly useagain, not due to a decrease in96401:10:09.840 --> 01:10:15.399demand for lithium, but an increasein supply. Now do you look at96501:10:15.439 --> 01:10:17.520me quizically, Yeah, because Ijust don't understand how. I mean,96601:10:17.520 --> 01:10:20.399if you have all these evs gettingbuilt out, how do you not have96701:10:20.479 --> 01:10:27.199the demand No to the demand forlithium, the production the production is now96801:10:27.279 --> 01:10:31.199paced to demand. So we're producingmore of something more more lithium than we96901:10:31.279 --> 01:10:34.479need, more lithium than we need, kind of like because the vacue,97001:10:34.560 --> 01:10:38.880right, Because I mean, lithiumhas such a big CO two penalty to97101:10:38.960 --> 01:10:41.840mine that out of the ground.So if we're just doing it for no97201:10:41.920 --> 01:10:45.439reason, I mean, that's that'sreason. No. Yeah, he's saying97301:10:45.479 --> 01:10:47.359because with all the Coe two ittakes to mine it. If you're over97401:10:47.439 --> 01:10:49.920mining, why do you need tokeep over mining? No, No,97501:10:50.119 --> 01:10:53.880that's what that's why the price isplumbing. And of course what will happen97601:10:53.880 --> 01:10:57.720when the price plumbers is you'll stopmining. They'll pull back. They just97701:10:58.079 --> 01:11:00.800have to the part of it.Airline kinds they at Airline ETF hit a97801:11:00.800 --> 01:11:06.039new fifty two weeks low after disappointingquarterly results from United in American and we97901:11:06.039 --> 01:11:09.880can all guess what that is,right, higher oil prices. Yeah,98001:11:10.000 --> 01:11:14.279that's it doesn't take a genius.That one doesn't take a genius to figure98101:11:14.279 --> 01:11:17.600out. It's a it's a difficulttime to be trying to run an airline.98201:11:18.119 --> 01:11:23.119Uh, if you've got a travelstarting to taper off a bit,98301:11:23.760 --> 01:11:29.000not only because the seasonality, butbecause of the of everyone's been everywhere they98401:11:29.039 --> 01:11:31.319want to go, right and sincethe pandemic. But then you put oil98501:11:31.359 --> 01:11:34.079prices into that. We are goinginto the holiday season, though, and98601:11:34.079 --> 01:11:36.840people are going to travel regardless ofprices. It will because they want to98701:11:36.960 --> 01:11:42.079in a sense they will. Sofirst quarter next the should have better results.98801:11:42.119 --> 01:11:45.359You think Peloton down fifty percent inthe last ninety days, So guess98901:11:45.359 --> 01:11:49.319what bank of America decided this isa good place to downgrade the stock.99001:11:50.159 --> 01:11:54.880Funny how they are. I waslike, are you kidding me? You99101:11:54.960 --> 01:11:57.880had me in this stock and I'velost fifty percent of my money and I99201:11:57.960 --> 01:12:01.199saying, you know what, getout out. It's not good. Anyway,99301:12:01.279 --> 01:12:04.199we appreciate your joining us on thisSunday morning. We have fun bringing99401:12:04.279 --> 01:12:09.840you to the show. We willbe back with the next segment is the99501:12:10.640 --> 01:12:14.520Fed correct We got We got SeanMcCoy on, and then we'll have John,99601:12:14.600 --> 01:12:26.199our lawyer in and we'll talk toyou right after Spreak says welcome back.99701:12:26.239 --> 01:12:28.840You're listening to the Money Matter Show. I'm Dylan Greenberg. I'm here99801:12:28.840 --> 01:12:30.800with Todd Glick and we have aspecial guest on the radio show today.99901:12:31.359 --> 01:12:36.600As you might know out here,we are hosting a Federal Retirement Benefit Seminar100001:12:36.720 --> 01:12:41.960workshop on December thirteenth O. We'reat the Tucson Association Realtors and we have100101:12:42.000 --> 01:12:45.520a special speaker that's coming out actuallythat day to host the entire Seminar's name100201:12:45.560 --> 01:12:49.880is Sean McCoy. He is withFederal Employee Benefit Advocates and they'll be flying100301:12:49.920 --> 01:12:55.720in that day talking everything retirement forfederals. We all know that it's very100401:12:55.760 --> 01:12:59.279specialized, very unique. So he'sbeen doing it for years, He's talked100501:12:59.319 --> 01:13:01.319thousands of different and federal employees throughoutthe years. I'm going to let him100601:13:01.359 --> 01:13:03.920go into more detail about what he'sdone, how long has he been in100701:13:03.960 --> 01:13:08.520it. So welcome Sean, thankyou for coming on our show. Well,100801:13:08.520 --> 01:13:10.800thanks Gas, I'm glad to behere. Looking forward to making the100901:13:10.840 --> 01:13:15.119trip out to Tucson here in December. The weather hopefully will be nice and101001:13:15.479 --> 01:13:19.359we'll have a good interaction with thefolks that attend. Yeah, we're really101101:13:19.359 --> 01:13:23.399looking forward to it. The thingsthat we find so much is that the101201:13:23.960 --> 01:13:30.600unique and complex factors that come intoplay for a federal employee's retirement is almost101301:13:30.760 --> 01:13:34.720it's not talked about enough. Andthat's where people like you come in because101401:13:34.720 --> 01:13:39.319you're really the expert. So talka little bit about how you've gotten that101501:13:39.399 --> 01:13:43.159expert status through the years, howyou know everything you know about the retirement101601:13:43.159 --> 01:13:45.359benefits, because it's such a complexspace to talk about. How you got101701:13:45.399 --> 01:13:51.039into the business too and why andyou're reasoning behind everything absolutely well, guys,101801:13:50.600 --> 01:13:57.199as you alluded to the federal spacefor employee benefits is very different than101901:13:57.199 --> 01:14:02.039what you see in ARISKA base plans, which the non federal space. And102001:14:02.359 --> 01:14:08.479the biggest challenge that I found whenI first got into it was that there's102101:14:08.600 --> 01:14:12.439just not a lot of information outthere generally that's in a comprehensive situation.102201:14:12.560 --> 01:14:15.600Now, my background is I've gotabout thirty six years of experience in and102301:14:15.640 --> 01:14:21.199around the financial services industry, andfor the last fourteen years I've been doing102401:14:21.239 --> 01:14:27.199federal employee benefit briefings. I probablyspoke to around thirty five thousand suberal employees102501:14:27.239 --> 01:14:31.560and probably delivered somewhere in the excessof about fourteen hundred total employee benefits seminars.102601:14:31.560 --> 01:14:34.920So over the years, what I'vebeen able to do is compile information102701:14:35.039 --> 01:14:39.960through a variety of sources and putthem into a format I think is easy102801:14:40.000 --> 01:14:44.840to understand and it helps people toidentify certain key points that they need to102901:14:44.840 --> 01:14:47.600pay attention to based on whether they'rein the early, mid or late career.103001:14:48.199 --> 01:14:53.159I was a former securities registered representative. I gave all those licenses up103101:14:53.199 --> 01:14:57.079when I started doing that, andso now my company, Federal Employee Benefits103201:14:57.079 --> 01:15:00.319Advocates. We are an educational company. And we are advocates for federal employees103301:15:00.359 --> 01:15:04.039to make sure that they have theknowledge that they need and the tools and103401:15:04.079 --> 01:15:09.560the resources available to help them planfor their family while they're working and then103501:15:09.600 --> 01:15:13.680also to plan hopefully to have acomfortable retirement. Yeah, and we're super103601:15:13.680 --> 01:15:17.840excited to have you, like wesaid on December thirteenth, because by working103701:15:17.880 --> 01:15:24.439together, you have a very uniqueFederal Workshop booklet that you actually take each103801:15:24.640 --> 01:15:28.880attendee through and so maybe spend alittle bit of time of what kind of103901:15:29.039 --> 01:15:33.199lady expectations for what to expect atthe seminar, what are the things that104001:15:33.399 --> 01:15:36.920they're going to be supplied, andhow it's going to help them prepare for104101:15:36.960 --> 01:15:43.439retirement. Well, the way thatthe briefing is designed is it's designed to104201:15:43.520 --> 01:15:48.880address first the issues regarding retirement andso for the first employees as well as104301:15:48.880 --> 01:15:54.119the csrs, if any of thoseattend. If any of those employees attend,104401:15:54.680 --> 01:15:59.840primarily for the FIRS, you havethree different sources of income coming in104501:16:00.119 --> 01:16:03.119your retirement. Which is your retirementannuity that the federal government provides to you104601:16:03.159 --> 01:16:09.079if you meet the criteria, SocialSecurity, which is the benefit that all104701:16:09.119 --> 01:16:12.640Americans are available to if they payinto the system and have enough orders to104801:16:12.720 --> 01:16:15.319qualify. And then the final thing, which is the Thrift Savings Plan,104901:16:15.319 --> 01:16:20.880which is kind of a unique definedcontribution program in the various investment options that105001:16:20.920 --> 01:16:25.439it has. And there's been alot of exciting things that have happened with105101:16:25.560 --> 01:16:29.840the TSP in the last several years. But we'll go through those retirement benefits105201:16:29.880 --> 01:16:32.000first, and then we'll go intowhat we call the risk management, which105301:16:32.000 --> 01:16:38.399we think such as your federal employeesthrough life insurance, health insurance, the105401:16:38.720 --> 01:16:42.399long term care. We won't gointo that a lot, we'll talk about105501:16:42.399 --> 01:16:45.640it, and then we'll talk aboutthe various disability benefits. So each participant105601:16:45.720 --> 01:16:50.880will receive a high quality workbook.There'll be some exercises that we take people105701:16:50.960 --> 01:16:56.319through to help them kind of navigatewhere their benefits are and some things that105801:16:56.359 --> 01:17:00.600they can expect. And then wewill have ample time for questions for the105901:17:00.600 --> 01:17:03.760individuals as well, as I believeyou gentlemen, will be offering a chance106001:17:03.800 --> 01:17:09.319to have the folks sit down withyou afterwards and answer some individual questions.106101:17:09.359 --> 01:17:12.640So that's what they can expect fromthe program. And as I said,106201:17:12.640 --> 01:17:15.800each participant will get a booklet that'llhelp them follow along with a copy of106301:17:15.800 --> 01:17:19.760the slide that will go through.Yeah, we will definitely do that if106401:17:20.039 --> 01:17:24.960an attendee is interested in sitting down. After that's we compile it all together.106501:17:25.000 --> 01:17:27.319We do the financial plan. Wehave the federal side as well,106601:17:27.520 --> 01:17:30.319and we help them look at whattheir retirement could look like as a federal106701:17:30.319 --> 01:17:33.960employee with their pension and the TSPand life insurance, anything they might need106801:17:34.039 --> 01:17:38.840during retirement. That's what we doafter the fact of the seminar after all106901:17:38.840 --> 01:17:43.760that. Yeah, and the purposeof the financial plan for a lot of107001:17:43.800 --> 01:17:48.279people is seeing the current snapshot oftheir financial life right now, and then107101:17:48.520 --> 01:17:54.840we can project out and model basedon a whole array of different variables that107201:17:54.880 --> 01:17:58.880can come into play. We canmodel how that plan will work depending on107301:17:58.960 --> 01:18:02.680different variations factors coming into play.So that's where the peace of mind comes107401:18:02.720 --> 01:18:05.720in for a lot of these people. When you understand your benefits and then107501:18:05.760 --> 01:18:09.359you understand how those benefits are goingto work for you into the future,107601:18:09.560 --> 01:18:14.239you can actually sleep at night knowingthat you are maximizing your retirement pension as107701:18:14.239 --> 01:18:17.880well as maximizing the other benefits thatcome with a federal so sean based on107801:18:17.880 --> 01:18:23.279your interactions and experience, what aresome unique challenges or opportunities that federal employees107901:18:23.319 --> 01:18:27.039may face in the retirement planning comparedto other sectors and how can they best108001:18:27.039 --> 01:18:31.079address them? Well, first off, I think it's important that no matter108101:18:31.079 --> 01:18:35.079where you are in your career,your early, middle, or late career,108201:18:35.680 --> 01:18:41.640you're going to benefit from coming tothis particular briefing because the things that108301:18:41.720 --> 01:18:45.840we'll talk about will be covering allof the different issues that you face at108401:18:45.880 --> 01:18:49.079different points in time in your career. But one of the unique challenges that108501:18:49.119 --> 01:18:57.520federal employees have that other people don'thave is the ability to retire much earlier108601:18:57.520 --> 01:19:00.359than most Americans. You can retireas ear is fifty seven if you have108701:19:00.439 --> 01:19:04.359thirty years of service, and indoing so, that means that you've got108801:19:04.399 --> 01:19:10.079a unique challenge in terms of thelongevity because most Americans don't retire until they're108901:19:10.119 --> 01:19:14.119sixty seven, So that means that'san additional ten years of planning. And109001:19:14.159 --> 01:19:17.520that's where the TSP comes in.It's the singular most important part of the109101:19:17.560 --> 01:19:21.720retirement and it's the only ones thatthe employees can control. Some other things109201:19:21.720 --> 01:19:27.000that they face that are unique inthat first, classified federal employees don't get109301:19:27.000 --> 01:19:30.119a cost of living adjustment until theyreach sixty two, and so that can109401:19:30.199 --> 01:19:34.960create a challenge in them in termsof planning and projecting. So the important109501:19:34.960 --> 01:19:39.399part of that is to make surethat they're utilizing the benefits while they're employed109601:19:39.680 --> 01:19:43.840and that they're prepared for the differentthings that happened after they are employed in109701:19:43.960 --> 01:19:48.319going into retirement. Yeah, exactly, and that is very unique in the109801:19:48.359 --> 01:19:51.920sense of that they retire fifty seven. There's also and then's obviously there's different109901:19:53.439 --> 01:19:56.840parameters that they can get. Theycan have the supplemental Social Security and different110001:19:56.880 --> 01:20:00.560things like that, which are detailsthat you will go into during the presentation110101:20:00.640 --> 01:20:03.920during their workshop on December thirteenth.But it's that idea that we just know110201:20:04.000 --> 01:20:09.720that it's unique and everything like that. So I mean also in that sense,110301:20:09.760 --> 01:20:12.840what are some of the most commonmisconceptions that you've seen federal employees have110401:20:13.359 --> 01:20:17.159about their retiring benefits and how canthey be addressed? Well, I think110501:20:17.199 --> 01:20:23.119some of them have to do withthe taxation of the annuity. A lot110601:20:23.159 --> 01:20:27.119of folks are not familiar with howthey're packed, so that's one issue Another110701:20:27.239 --> 01:20:30.159issue is that when they retire,some of their benefits are going to go110801:20:30.239 --> 01:20:33.800away. So some of the thingssuch as the ability to pay for their110901:20:33.800 --> 01:20:38.640health insurance on a pre tax basiswill go away. Some of the other111001:20:38.680 --> 01:20:42.760benefits that they have, such asthe flexible spinning account, will go away.111101:20:43.000 --> 01:20:45.479And those are items that you knowthey can utilize while they're employed,111201:20:45.520 --> 01:20:49.359but after they're retired, those arebenefits that they're not going to have available.111301:20:49.720 --> 01:20:55.079Also, you mentioned the Special RetirementSupplement. That is another area that111401:20:55.159 --> 01:20:58.880people are not often familiar with ofhow they have to qualify for that,111501:20:59.439 --> 01:21:01.399and the fact that if they dogo out and work after they've retired and111601:21:01.399 --> 01:21:04.880they earn income, that some ofthat money could be offset from that.111701:21:05.399 --> 01:21:10.920And then the other one that canbe quite a challenge is if someone has111801:21:11.000 --> 01:21:15.319military service, and whether that's theyretired from the military, they did a111901:21:15.399 --> 01:21:18.279stint in the military, or theyhad some reservist time where they were deployed.112001:21:18.960 --> 01:21:24.960Oftentimes I find that federal employees arenot familiar with the process and the112101:21:25.039 --> 01:21:29.840rationale behind buying or making deposits forthat military service. So there's some of112201:21:29.880 --> 01:21:33.800the unique things that you can expectthat we'll cover in the briefing or the112301:21:33.840 --> 01:21:39.039seminar on the thirteenth there and Tusaw. Yeah. Another one that came to112401:21:39.079 --> 01:21:42.279mind was the sick leave. Right. I think a lot of federal employees112501:21:42.319 --> 01:21:45.319they walk over that just not knowingall the rules behind that. Right,112601:21:45.399 --> 01:21:48.880Jean, I'm sorry you cut outfor just one moment. What did you112701:21:48.920 --> 01:21:53.000say? I said, the sickleave, the calculations and how that might112801:21:53.039 --> 01:21:58.439be added back in, right,Pa. Sickly is something that since twenty112901:21:58.640 --> 01:22:01.079ten, federal employees have been ableto use sickly to enhance their annuity.113001:22:01.800 --> 01:22:08.760And it's a benefit that will allowthem to enhance their annuity, but it113101:22:08.800 --> 01:22:13.359doesn't meet the minimum service requirement.So I'm here in Louisiana and we have113201:22:13.760 --> 01:22:15.239a little saying when we give youa little something extra, we call it113301:22:15.359 --> 01:22:18.840lanyat, and so that's what wewould say that the sickly is. It's113401:22:18.880 --> 01:22:24.520a little lath, a little somethingextra that can allow you to cash in113501:22:24.560 --> 01:22:27.800on your sickly to be paid onit for the rest of your life,113601:22:27.960 --> 01:22:30.640and also if you provide a survivorbenefit for the rest of their lives.113701:22:31.760 --> 01:22:35.600And then another good question that wesaw that from your experience, what are113801:22:35.640 --> 01:22:41.720the most effective resources or tools availablefor federal employees to optimize their retirement plans113901:22:41.720 --> 01:22:45.359and benefits. Well, certainly,I know that some of the tools that114001:22:45.399 --> 01:22:50.239you gentlemen have available to show themthe analysis of their benefits and project out114101:22:50.760 --> 01:22:57.840and that's important. Obviously, theyhave access to OPM dot gov, which114201:22:57.880 --> 01:23:03.079is the imistration for the pension andthe ones who actually calculated and do the114301:23:03.119 --> 01:23:10.760payout. There's TSP dot gov,which is the TSP website. There's a114401:23:10.760 --> 01:23:15.079couple of websites that your listeners maynot be familiar, which is FSA,114501:23:15.199 --> 01:23:17.840feds dot com and ben e fed. Those have to do with the Flexible114601:23:17.840 --> 01:23:23.079Spending account. And so what's comingup here very shortly is the open season,114701:23:23.640 --> 01:23:26.479and so you know, by havinga chance to attend this seminar,114801:23:27.239 --> 01:23:30.920you know you'll pick up on someinformation hopefully before the open season has closed.114901:23:30.920 --> 01:23:34.159Well, the open season will actuallyclose before the seminar. But there115001:23:34.159 --> 01:23:38.239are some items that you do wantto pay attention to, and that would115101:23:38.279 --> 01:23:43.279be making sure that you make theright selection during the open season and that115201:23:43.359 --> 01:23:47.439you really take a look at yourhealth insurance provider, which unfortunately this year115301:23:47.520 --> 01:23:51.479is going up on an average forthe participants of about seven point seven percent,115401:23:53.199 --> 01:23:59.199and then also the ability to enrollin the Flexible Spending Account and as115501:23:59.199 --> 01:24:02.319well as doing you on the dentalprograms that you're currently enrolled in. Awesome.115601:24:02.680 --> 01:24:04.880Well, we are coming up ona break here, Sean. We115701:24:05.000 --> 01:24:10.800really appreciate you coming on the showexplaining your expertise and everything to expect at115801:24:10.840 --> 01:24:15.640our seminar. Again, the workshopis a Federal employee education workshop. It's115901:24:15.640 --> 01:24:19.760going to be held at the TucsonAssociation of Relators on December thirteenth from eight116001:24:19.760 --> 01:24:23.960am to four pm. You caneven possibly get a day off if you116101:24:24.000 --> 01:24:28.680ask your agency for the SF oneeighty two and they offer that. So116201:24:29.000 --> 01:24:31.800again, it's going to be agreat event. Anyone less than ten years116301:24:31.880 --> 01:24:38.680definitely take advantage and take it andfinally have that security that everyone's looking for116401:24:38.880 --> 01:24:42.159as you approach retirement. Thank youeveryone for listening. We'll be back on116501:24:42.199 --> 01:24:47.600the Money Matter Show. Thank you, Sean, Thank you say it's only116601:24:47.680 --> 01:24:54.199a name. Welcome back to theMoney Matter Show. My name is Sebastian116701:24:54.199 --> 01:24:58.960bor Senium here with Dave Sherwood,Todd Click Junior and a good friend Jonathan116801:24:59.079 --> 01:25:03.720Sabilia. Guys, all right,it was a beautiful week. And John,116901:25:03.800 --> 01:25:08.279I mean we we had one ofour first tag team specials, me117001:25:08.279 --> 01:25:12.960and you together. We we didwe we did collaborate on a client.117101:25:13.000 --> 01:25:17.479It was very successful and very productive. Yeah, we're we're looking forward to117201:25:17.560 --> 01:25:21.279doing that into the future because,as Dean said, the way he built117301:25:21.319 --> 01:25:26.359this firm was really in a wayto have almost the whole financial mall in117401:25:26.359 --> 01:25:29.960one place. Right, you haveeverything you need in one stop and we117501:25:30.000 --> 01:25:32.399can take care and service you inany areas that you have. So having117601:25:32.399 --> 01:25:36.159that ability and really, I meanwhen it comes to financial planning, the117701:25:36.279 --> 01:25:42.279most closest cousin probably is a stateplanning. State planning in taxes, right,117801:25:42.479 --> 01:25:45.880both of my specialty. And that'swhy we it's really nice to work117901:25:45.000 --> 01:25:47.399so well. You know, wework well together so well. And that118001:25:47.479 --> 01:25:50.880was always my goal when I firststarted out, was to be part of118101:25:50.920 --> 01:25:56.399a family office, which is basically, you know, these super wealthy people118201:25:56.439 --> 01:26:01.359they just have a one stop shopfinancial and legal in texts home they can118301:26:01.439 --> 01:26:04.479go to where it's all taken careof under one roof. In fact,118401:26:04.520 --> 01:26:08.079I had a buddy I used todo when I did Texas. He was118501:26:08.119 --> 01:26:11.920a lawyer and he left to goto a family office and his job was,118601:26:12.399 --> 01:26:15.600you know, some of the morewealthy people. What his job was118701:26:15.600 --> 01:26:19.199was to one of the clients.He was telling me that was traveling over118801:26:19.239 --> 01:26:25.640to Africa and he had a littlebit of a medical condition. So his118901:26:25.800 --> 01:26:30.720job was to fined every hospital inevery town in Africa that he was going119001:26:30.720 --> 01:26:34.840to go to and contact that hospitalto let him let them know that we're119101:26:34.960 --> 01:26:40.640going to have an American in therethat has a special condition and he may119201:26:40.960 --> 01:26:45.640and he will be there at somepoint to get some sort of testing or119301:26:45.720 --> 01:26:47.399up there. I don't know ifit was dialysis or what, but it119401:26:47.439 --> 01:26:50.520was his job to make sure,you know, his this guy's vacation went119501:26:50.520 --> 01:26:57.119along smoothly. Yeah, I meanit kind of put some picture or color119601:26:57.159 --> 01:27:00.399around that comment. I mean,we do things like house calls, right119701:27:00.439 --> 01:27:02.560and if someone's not able to alwaysdrive, we will drive out and the119801:27:02.680 --> 01:27:06.279SeaBASS as many times droven out toget a signature to a client. And119901:27:06.319 --> 01:27:11.000that's what we're all about. Thatcustomer service that you will not find at120001:27:11.039 --> 01:27:15.039a big house because why would theyoffer it. It's not profitable for them,120101:27:15.319 --> 01:27:18.520Like it and also it's waste oftime for a big wirehouse like that.120201:27:18.560 --> 01:27:21.800Well, for us, it's whatsets us apart. It's what we120301:27:21.880 --> 01:27:27.159focus on. Customer services is numberone. I mean that that's what makes120401:27:27.239 --> 01:27:30.800us so unique. Well, there'sany things make us unique, right,120501:27:30.920 --> 01:27:35.000but customer service, above and beyondthe norm is what we want to bring120601:27:35.079 --> 01:27:39.479to the table. Yeah, wewant we want to say something that we120701:27:39.520 --> 01:27:43.680would do and really you would dothat for us. That's that's the type120801:27:43.720 --> 01:27:45.319of people we want to be.We may not call up the hotel and120901:27:45.520 --> 01:27:48.520the Barbados to let them know you'recoming, but we'll make sure you come121001:27:48.520 --> 01:27:50.359here. You're gonna get you know, we're going to take a look at121101:27:50.399 --> 01:27:55.159every single situation, make sure yourmoney's protected, it's going where you wanted121201:27:55.159 --> 01:27:57.880to go, and grow as fastas it can. Are you and John121301:27:57.880 --> 01:28:00.560anathing to tell us about your littlecollaboration so we get an idea of the121401:28:00.640 --> 01:28:04.880types of things that people might expecthere. Yeah, So essentially a client121501:28:04.920 --> 01:28:09.840came in and their goal was preservationof principle and they came in too inherit,121601:28:10.119 --> 01:28:13.760inherited some money and needed to knowwhat to do with it. Didn't121701:28:13.760 --> 01:28:15.199know what to do with it,and the goal was preservation of principle,121801:28:15.239 --> 01:28:19.119and so me and Dave we satdown and devised a strategy of how we121901:28:19.119 --> 01:28:23.119were going to take part of that. And like we've said many times on122001:28:23.119 --> 01:28:26.800the show, preservation of Principle,it's a great time because you have a122101:28:26.800 --> 01:28:30.760really high interest rates. You havetreasury ladders paying a ravage around five percent122201:28:30.880 --> 01:28:32.880right now for a five year ladder. You have magas that are paying five122301:28:32.920 --> 01:28:36.199point five. So there's a lotof options out there at Vanguard money Market122401:28:36.239 --> 01:28:40.199five point two, So a lotof options out there, and that's what122501:28:40.239 --> 01:28:45.159we are side of our business,right. And then she also needed help122601:28:45.239 --> 01:28:47.640with in a state right, gettingan updated trust. I mean, how122701:28:47.720 --> 01:28:53.119old was the old will and power? Now I wasn't a trust, sorry,122801:28:53.279 --> 01:28:57.359it was Actually she was thinking thatshe needed to trust. And then122901:28:57.399 --> 01:29:00.960you said that you don't need atrust. And I think that's what's so123001:29:00.119 --> 01:29:04.560unique about John is he won't sellyou something you don't need. He will123101:29:04.560 --> 01:29:09.159tell you no, we can dothis a lot more efficiently, right exactly.123201:29:09.239 --> 01:29:10.960And you know I looked at itand I said, you know,123301:29:11.119 --> 01:29:14.800it's they were coming into a lotof money and they were at the financial123401:29:15.720 --> 01:29:18.880They were at a financial level whereyou could do a revocable living trust,123501:29:18.960 --> 01:29:25.800but we avoided that because it wasunnecessary. Everything they had was design beneficiary123601:29:25.840 --> 01:29:31.159designated, meaning you can throw abeneficiary on its ownership and if something happened123701:29:31.159 --> 01:29:34.760to the person who owned it,it would go directly to them, avoiding123801:29:34.800 --> 01:29:39.640probate, which is usually our goal. And so we just made an update123901:29:39.840 --> 01:29:43.680to the will and this specific person, you know, not naming names,124001:29:43.720 --> 01:29:47.720but they had four children. Sincethe original drafting of the will, one124101:29:47.760 --> 01:29:53.199of the children passed away and theywanted to disinherit the other child, so124201:29:53.319 --> 01:29:55.600only two were going to get theassets. So we had to make an124301:29:55.640 --> 01:30:00.720update and make sure that third childdid not receive any any benefit exactly.124401:30:00.800 --> 01:30:05.800And so you know, encompassing allthat in one meeting was it was a124501:30:06.920 --> 01:30:11.479packed full hour, that's for sure, but you know, doing it all124601:30:11.520 --> 01:30:13.880in one meeting, I mean,where else can you get that? Right?124701:30:13.880 --> 01:30:17.039But the client did come in withinherited money that she didn't really need124801:30:17.560 --> 01:30:21.119and didn't know what to do withit, and had the will situation,124901:30:21.199 --> 01:30:26.119and it was all handled right herein one meeting, in one media.125001:30:26.199 --> 01:30:29.039Yeah, they had questions about taxation. And you know, I want to125101:30:29.039 --> 01:30:31.239give my child one hundred thousand dollarsAnd I said, okay, go ahead.125201:30:31.840 --> 01:30:36.039You know there's no tax involved.You're well underneath the unified you know125301:30:36.079 --> 01:30:41.439the exemption amount. Uh. Youknow if you may want to file the125401:30:41.520 --> 01:30:44.600seven or nine, which is agift tax return, just to report the125501:30:44.640 --> 01:30:48.880gift, but you won't know taxeson it. So what about the I125601:30:48.920 --> 01:30:51.840was under the impression of the maximumyou could give to any one person in125701:30:51.880 --> 01:30:58.279one year seventeen grand. Well youcan give So that's the that's the exclusion125801:30:58.279 --> 01:31:00.319about excuse me, I said exemption. That's the exclusion a mount So you125901:31:00.359 --> 01:31:06.039don't have to necessarily file a gifttax return if it's below seventeen thousand dollars126001:31:06.079 --> 01:31:09.640per year. But just because it'sabove that amount doesn't mean you're going to126101:31:09.720 --> 01:31:12.560pay taxes. The Irish just wantsto know about it. Oh, I126201:31:12.600 --> 01:31:16.159say, so, who would thendetermine what the tax would be? Would126301:31:16.159 --> 01:31:20.000it be based upon the recipient's taxbracket? No, it's going to be126401:31:20.039 --> 01:31:24.800based It's not going to be basedon the tax bracket. The gift will126501:31:24.800 --> 01:31:29.479be basically be tied into your statetax and it will be tax at forty126601:31:29.520 --> 01:31:33.439percent if you go over the unifiedcredit amount. We see all the time,126701:31:34.079 --> 01:31:38.199and you know what's going on outthere in the real world where people126801:31:38.199 --> 01:31:42.319are giving their kids fifty dollars onehundred down dollars and nobody's saying the thing126901:31:42.359 --> 01:31:47.039about it. So the reality ofit is as a taxpayer, fortunately there's127001:31:47.039 --> 01:31:51.119no way to track that, orunfortunately there's no way to track that.127101:31:51.920 --> 01:31:58.720One great thing I'm doing for aclient this week is they have a business127201:31:59.159 --> 01:32:02.199and they have young kids kids,And what we're doing is, you know,127301:32:02.239 --> 01:32:06.399you're able to give a child undereighteen, give they're able to work127401:32:06.439 --> 01:32:11.680for the company, and you're ableto pay them. And if you if127501:32:11.720 --> 01:32:15.079you pay them less than thirteen thousand, eight hundred dollars, they won't have127601:32:15.119 --> 01:32:20.079to pay taxes. So that'll bea deduction on your business income return and127701:32:20.119 --> 01:32:24.840they'll be able to receive the incomeand not have to pay any taxes.127801:32:24.880 --> 01:32:28.359But what's great about that is that'stheir an income. What can you do127901:32:28.399 --> 01:32:30.760with their an income? Put intoa wroth? And if you put a128001:32:30.840 --> 01:32:35.239raw six thousand dollars into a wrothat fifteen years old, at fifteen years128101:32:35.239 --> 01:32:40.199old, and then a six thousandat sixteen and six and six thousand at128201:32:40.239 --> 01:32:45.359seventeen compound interest at sixty five.What do you think that number is about?128301:32:45.880 --> 01:32:49.680Well, I mean six thousand aboutnine percent starting nine about two million.128401:32:49.720 --> 01:32:54.439I think it's about one point sevenmillion dollars, So I was pretty128501:32:54.439 --> 01:32:58.680close. That's doing the six thousanddollars into a roth every year for how128601:32:58.760 --> 01:33:01.000long? If you just put eighteenthousand dollars and let it sit there at128701:33:01.079 --> 01:33:06.640nine percent compound interest after fifty years? Yeah, So that's all you ever128801:33:06.680 --> 01:33:10.399put in, is the eighteen thousanddollars went. I went on and I128901:33:10.479 --> 01:33:13.760checked it today. It's about onepoint seven million dollars. That's amazing.129001:33:14.119 --> 01:33:16.760And that's that I mean. Iremember Dean telling me that with his son129101:33:16.840 --> 01:33:20.680Matthew, he would Matthew was amodel, a baby model for you know,129201:33:20.920 --> 01:33:25.239and he would pay him earned incomeand then they used that as started129301:33:25.239 --> 01:33:29.079the wroth. And so using thattype of idea, and if you're a129401:33:29.079 --> 01:33:31.479business owner, you have so manyoptions available to you, you need to129501:33:31.520 --> 01:33:35.079have an expert so you can actuallyknow if you're taking advantage of all the129601:33:35.079 --> 01:33:40.520benefits available to including how to whattype of a business that you are,129701:33:40.720 --> 01:33:45.159right, that's we've talked about thata little bit. Whether you're a chapter129801:33:45.239 --> 01:33:48.439as corp. Yeah, it doesn'tmatter. It could be any business as129901:33:48.479 --> 01:33:53.720long if you have an employee,you can pay them payroll and it'll reduce130001:33:53.760 --> 01:33:59.000your net income and by thirteen thousandand eight to fifty whatever you want to130101:33:59.039 --> 01:34:01.399pay them, whatever they're in earnedincome is and then they'll be able to130201:34:01.439 --> 01:34:04.279take it. They'll not have topay taxes on it. And then you130301:34:04.319 --> 01:34:11.039start that roth and so an individualdoesn't pay income tax until their income exceeds130401:34:11.119 --> 01:34:14.159that thirteen thousand and eight fifty.Is that the twenty twenty three Yes,130501:34:14.439 --> 01:34:17.720okay, and this particular child.Let's say you have two children working for130601:34:17.760 --> 01:34:21.640the company getting paid thirteen thousand,eight hundred. What do they have to130701:34:21.680 --> 01:34:25.560do? I mean, do theyactually have to show up? Well,130801:34:25.600 --> 01:34:29.039they got to do a job.Okay. You know. Let's maybe you've130901:34:29.039 --> 01:34:30.880got a couple of young kids thatyou want to put on the website and131001:34:30.920 --> 01:34:34.960have their pictures marketing. You know, I'm a family business. You know,131101:34:35.039 --> 01:34:40.960that could be considered some sort ofthat's considered employee. Have them cleaned,131201:34:41.119 --> 01:34:44.399you know, clean up the trashevery once in a while, it's131301:34:44.720 --> 01:34:47.399or maybe you just have them participatein some sort of in some of the131401:34:47.399 --> 01:34:50.159actual day to day stuff. Idon't know, that's that's something you're gonna131501:34:50.159 --> 01:34:53.520have to make it. I don'twant to travel down that road. No,131601:34:53.640 --> 01:34:55.640I get it, I get it. I'm just scariously. You can't131701:34:55.680 --> 01:34:58.920just give them thirteen thousand, eighthundred. They actually have to be performing131801:34:59.039 --> 01:35:03.479a duty and and I guess intheory the duty would have to have that131901:35:03.680 --> 01:35:08.880value to you, right, Youcan't have them come in once a month132001:35:08.920 --> 01:35:11.880and empty the trash and pay themthirteen thousand, eight hundred. Yeah,132101:35:11.920 --> 01:35:15.079the irs, I'm sniffing around thelast. What they're doing day to day?132201:35:15.640 --> 01:35:17.800Well, and that's like so manythings in life. You know,132301:35:17.880 --> 01:35:23.720if it's not a problem unless youget caught. And so if you and132401:35:24.079 --> 01:35:27.279what we always were big advocates hereplayed by the rules, right, that's132501:35:27.359 --> 01:35:30.359that's the best way to stay outof troubles. But that's why I prefaced132601:35:30.359 --> 01:35:32.079it. I said, have themcome to a job and then pay them132701:35:32.079 --> 01:35:35.960earned income thirteen and fifty dollars.Right now, I want to make sure132801:35:36.000 --> 01:35:42.000that everyone understood that that was thecase, and that you and you you132901:35:42.039 --> 01:35:46.199shouldn't be giving money over and aboveseventeen thousand without filing the appropriate return.133001:35:46.319 --> 01:35:51.199So I think it's a judge LikeJudge Judy said, if you if you133101:35:51.279 --> 01:35:56.039play by the rules, you don'tneed a good memory. You know that's133201:35:56.079 --> 01:35:58.439right. I think there's something tobe said for that. All right,133301:35:58.479 --> 01:36:01.640So we're coming at the end ofanother show. Anybody got any gems of133401:36:01.760 --> 01:36:05.720wisdom here? Fifty two week highon Lulu Lemon last week after they were133501:36:05.720 --> 01:36:11.359added to the S and P fivehundred something good happening to somebody. That133601:36:11.479 --> 01:36:14.680curve is not no curve no more. It's basically a line of this point133701:36:14.760 --> 01:36:18.319seventeen basis points on that on thatyield curve. We appreciate your taking time133801:36:18.359 --> 01:36:20.399to listen to us. So againwe're coming to the end of the show.133901:36:20.479 --> 01:36:25.960Jonathan, thank you. Welcome atGreenberg Financial. We want to be134001:36:26.000 --> 01:36:29.720happy, and everybody want to behappy. Yeah, most important thing.134101:36:29.920 --> 01:36:32.640I think it would be healthy.But at the end of the day,134201:36:33.279 --> 01:36:39.479what we're trying to be here atGreenberg Financial is probitable. See you next week.