The Fed and Big Tech, What Dominated Markets This Week?

WEBVTT100:00:00.160 --> 00:00:02.879Welcome to the Money Matters Show.My name is Todd Glick and I'm here200:00:02.919 --> 00:00:07.639with Sebastian Borsini. The Greenberg clanis out of the office today as well300:00:07.679 --> 00:00:11.560as David Sherwood, so you arestuck with just me and Todd and Sea400:00:11.560 --> 00:00:13.720Best. So we look forward.We have a lot of information to get500:00:13.720 --> 00:00:17.199through today. So we're really excitedto bring everything to you because it was600:00:17.199 --> 00:00:20.320a busy week in markets. Youhave the young bulls this week. Yeah,700:00:20.399 --> 00:00:23.679you know it's it's the young bullsfor sure. Now people are wondering800:00:23.679 --> 00:00:26.760where are the Greenbergs. Good,They're just here and locally, they're gonna900:00:26.760 --> 00:00:29.199be back next week. We don'thave to worry about it. Sherwood is1000:00:29.199 --> 00:00:33.920actually out in California taking care ofhis grandkids. So he loves being out1100:00:33.920 --> 00:00:37.079in California. He's gonna have somegreat information for us when he comes back,1200:00:37.520 --> 00:00:40.920probably about EV's. Right. He'sgonna let us know how many evs1300:00:40.960 --> 00:00:44.159he counted up to and from HeLaBend and oh, yeah, how long1400:00:44.200 --> 00:00:46.759you stop? Actually no, hedoesn't take his electric vehicle. But he1500:00:46.799 --> 00:00:49.960doesn't take his electric vehicle. He'snot he's not ready for it yet.1600:00:50.039 --> 00:00:53.880He did tell me that he didup a test trip to HeLa Bend on1700:00:54.280 --> 00:00:57.399an off day about it, MartinLuther King day, right right right at1800:00:57.399 --> 00:01:00.399two and a half hour test driveto see if it's ev you had the1900:01:00.520 --> 00:01:03.759range to make it, and hesaid, and there's no problems. Okay,2000:01:03.840 --> 00:01:06.760well that's about halfway, so youstill got some more to drive and2100:01:07.079 --> 00:01:10.599definitely a big mountain range to getover. But you know, I took2200:01:10.640 --> 00:01:15.480my own hybrid and I still haveworries getting over that huge mountain you have2300:01:15.519 --> 00:01:18.439to get over. Preface that you'vehad a problem. I've had a problems2400:01:18.439 --> 00:01:21.719with my hybrid. But you know, when your battery starts to get low2500:01:21.760 --> 00:01:23.719and you're running up a mountain,it's a scary thing because you realize there's2600:01:23.760 --> 00:01:27.200not much opportunities for anything else.Let's get the most boring part of the2700:01:27.200 --> 00:01:32.200show out of the way with thedisclosures. Here we go. The show2800:01:32.280 --> 00:01:34.480sponsored by the Greenbrig Financial Group andyou can listen on seven to ninety cannis2900:01:34.519 --> 00:01:40.879See or iHeartRadio. The show discussesdifferent investment products and strategies. Every product3000:01:40.879 --> 00:01:44.599and strategy have some type of inherentrisks and we strongly encourage our listeners to3100:01:44.640 --> 00:01:49.480properly understand this risk to determine whetherto buy, sell or hold. The3200:01:49.519 --> 00:01:52.280show has been on air for overthirty years. The Greenbrig Financial Group is3300:01:52.319 --> 00:01:56.159registered with the SEC and a memberof FINRA and SIPIK. Visit our website3400:01:56.159 --> 00:02:00.200at Greenbrig Financial dot com for somemore information. God, I think the3500:02:00.200 --> 00:02:02.239blistereners know we go we go awaysback. Oh, we're gonna tell them3600:02:02.239 --> 00:02:06.159about the whole story and just abit. But we're gonna start out with3700:02:06.239 --> 00:02:08.120some performance numbers on the week.The first thing we'll go through is the3800:02:08.199 --> 00:02:10.879Dow Jones. It was up twopoint one percent on the week. The3900:02:10.960 --> 00:02:14.919S and P was up two pointfive percent, the Nasdaq was up two4000:02:14.919 --> 00:02:17.120point one, the Rustle up onepoint three, and the equal weighted of4100:02:17.199 --> 00:02:21.800one point four. The S andP led the way this week. Big4200:02:21.840 --> 00:02:23.719tech stocks actually had a great week. There's a lot of earnings reports that4300:02:23.800 --> 00:02:28.479came out this week, Meta Apple, Amazons just to name a few,4400:02:28.520 --> 00:02:30.919that really had markets moving as wellas we have the big Federal Reserve,4500:02:30.919 --> 00:02:35.000which we'll talk about in just afew minutes. All in although seeing the4600:02:35.080 --> 00:02:38.319S and P five hundred return twopoint five percent this week, where the4700:02:38.360 --> 00:02:40.719equal weighted S and P five hundredonly return one point four percent. What4800:02:40.759 --> 00:02:45.439we see again is the continuation ofthe trend of twenty twenty three, the4900:02:45.520 --> 00:02:49.759super six outperforming the broad market.And for people who are not aware of5000:02:49.759 --> 00:02:53.879the super six, those are theMicrosoft, Apple, Amazon, Google,5100:02:53.159 --> 00:02:59.520Navidia, and I'm missing one butat the end of Tesla because Tesla was5200:02:59.560 --> 00:03:02.280removed. It's not Netflix either.It was Meta and that's who it is.5300:03:02.319 --> 00:03:07.919It's Meta, and those six havejust continually outperformed the market, and5400:03:07.000 --> 00:03:12.879we cease that trend continue this week. Gold was up this week twenty dollars5500:03:12.919 --> 00:03:15.479on the week, it's a twentythirty seven and ounce oil had a very5600:03:15.560 --> 00:03:19.560volatile week and it was down sixdollars on the week. It's now at5700:03:19.599 --> 00:03:23.240seventy two dollars a barrel. That'san interesting one commodity to be looking at5800:03:23.240 --> 00:03:27.319because Dave he keeps saying that hethinks oil should be at one hundred and5900:03:27.439 --> 00:03:30.879rightfully, so, you have twowars right now in the in the world6000:03:30.039 --> 00:03:34.639with a huge conflict within the RedSea right and Red Sea conflict, which6100:03:34.639 --> 00:03:38.120is adding eighty percent cost of transportation. Right voyage expedition. Its just through6200:03:38.159 --> 00:03:42.240the roof. It's going to costsome supply constraints across the whole supply chain.6300:03:42.360 --> 00:03:45.000China seems to continue. I mean, they're not doing great, but6400:03:45.039 --> 00:03:47.919they are coming back online from thepandemic. Should be using plenty of oil.6500:03:49.000 --> 00:03:51.520That I mean, the whole country, the whole world seems to be6600:03:51.919 --> 00:03:54.439using oil. Why are we notseeing that surge in prices? It is6700:03:54.479 --> 00:03:59.479an interesting topic, and obviously alot of that has to do with productivity6800:03:59.479 --> 00:04:03.960of the actual oil producers. Butat the end of the day, with6900:04:04.000 --> 00:04:06.879what we saw last week was sucha surgeon oil and we had a five7000:04:06.919 --> 00:04:12.800dollars increase a barrel. This weekthe exact opposite six dollars decrease. So7100:04:12.840 --> 00:04:15.919we're basically at a wash where wewere two weeks ago. But a very7200:04:15.000 --> 00:04:19.000volatile market right now. That continuesto be one of the big worries for7300:04:19.040 --> 00:04:23.839the Fed. Obviously that comes upa high inflation is going to have to7400:04:23.839 --> 00:04:27.079come up high, and then thatputs them under the pressure. Right Could7500:04:27.120 --> 00:04:29.399you imagine if they came out inMarch and said, you know what,7600:04:29.439 --> 00:04:31.519we're gonna raise the interest rates.It's going to be a blood bath.7700:04:31.879 --> 00:04:34.319Let's talk about rates a little bit, because what we have right now in7800:04:34.399 --> 00:04:38.720the ten year is it finished atfour point zero two percent this week.7900:04:38.879 --> 00:04:41.920The two years at four point threeseven percent, So we still have an8000:04:41.920 --> 00:04:45.439inversion. It's very small compared towhat it was just six months ago.8100:04:45.720 --> 00:04:48.199But what we are seeing right nowis that tenure getting back above before we8200:04:48.199 --> 00:04:51.680saw it actually sell off big timein the middle of the week. But8300:04:51.879 --> 00:04:56.560Friday we got a really strong laborreport, which we'll dig into more and8400:04:56.639 --> 00:05:00.879later in the show, but thatcaused rates to surge on Friday didn't really8500:05:00.879 --> 00:05:04.800impact markets, which was very surprising. But these increase of rates was a8600:05:04.839 --> 00:05:09.319response of the market saying, yeah, maybe this economy is too hot right8700:05:09.319 --> 00:05:12.639now. It's interesting because you know, just getting out of college, we're8800:05:12.639 --> 00:05:15.439todd nothing else than you know,if there's high interest rates, it's not8900:05:15.439 --> 00:05:18.240good for growth stocks. And thiswas completely opposite of what I've ever been9000:05:18.279 --> 00:05:21.560done. Yeah, I mean theold school way of thinking is when you9100:05:21.600 --> 00:05:26.199put in a valuation of a stock, it's based on the growth and that9200:05:26.279 --> 00:05:30.480growth has a super big dependency onthe rate associated with it. So when9300:05:30.759 --> 00:05:34.000when a stock analysis, you know, someone who really does stock analysis,9400:05:34.000 --> 00:05:36.560and they're trying to find what's thetrue value of a stock. They used9500:05:36.560 --> 00:05:42.000a ten year US government bench rateas the risk free rate, all right,9600:05:42.279 --> 00:05:44.839and then what you're doing is tryingto find what's the rate that you're9700:05:44.879 --> 00:05:48.160going to get above that, andthen you can find your risk level based9800:05:48.160 --> 00:05:53.839on that. What we see normallyhistorically is when rates come higher, that9900:05:53.920 --> 00:05:57.839means those valuations mathematically have to comedown, which makes stocks come down.10000:05:58.199 --> 00:06:00.480We haven't seen that at all,not at all, and so it continues10100:06:00.519 --> 00:06:04.560to boggle some minds, you know. The inverted yield curve continues to bottle10200:06:05.199 --> 00:06:10.240Bogle mindes as well, because we'recoming up on that eighteen month mark where10300:06:10.319 --> 00:06:15.399it really starts to Every time theaverage recession that has happened off this two10400:06:15.360 --> 00:06:19.600to ten year inversion happens around thateighteen month period. So that's going to10500:06:19.680 --> 00:06:23.439be interesting to watch. But whenwe have an economy red hot like we10600:06:23.480 --> 00:06:28.920have right now, it's hard tosee any slowing down. The SMI fifty10700:06:28.920 --> 00:06:31.120two weeks high correct, well,yeah, it's another all time high.10800:06:31.160 --> 00:06:33.879So I have a pretty cool steppost time all time high performance. If10900:06:33.920 --> 00:06:39.560you picked a random day a newhigh was made a year later, up11000:06:39.600 --> 00:06:43.560seven point four percent on average andup about seventy one percent of the time,11100:06:43.560 --> 00:06:46.720which isn't spectacular, but it sureis not bearish, right anything.11200:06:46.800 --> 00:06:48.839But not only that, I mean, the average return in an election year11300:06:48.839 --> 00:06:51.839for the S and P five hundredand four percent. So a lot of11400:06:51.879 --> 00:06:56.920the historical numbers point to the factthat we're going to have a growth year,11500:06:56.920 --> 00:06:59.800but not a year of what wehad in twenty three. It's not11600:06:59.839 --> 00:07:01.639so thing where you should expect atwenty three to thirty percent growth in the11700:07:02.279 --> 00:07:05.560markets, but potentially you see somethinglike a five to ten percent growth,11800:07:05.839 --> 00:07:11.279something a little more modest, especiallyas rates continue to be high. I11900:07:11.319 --> 00:07:15.279mean, it's hard to see hugegrowth rates that continue to be priced in12000:07:15.360 --> 00:07:19.480this market. The Russell two thousandsa really interesting thing that I continue to12100:07:19.519 --> 00:07:25.319look at, and it's lagging soheavy. The small caps are just not12200:07:25.480 --> 00:07:29.720performing anywhere near the big caps.So it doesn't say that we're entering into12300:07:29.720 --> 00:07:33.759this new huge bowlmarket where everything's goingup. It's still those very particular stocks12400:07:33.879 --> 00:07:38.759that you know they either have tiesto semiconductors or AI. You know,12500:07:38.879 --> 00:07:43.720that's really what's driving this entire marketright now. Now, let's go into12600:07:43.800 --> 00:07:46.839what the Federal Reserve talked about thisweek. Now, this is their first12700:07:46.879 --> 00:07:49.399meeting of twenty twenty four. Theyleft us last year on a hold,12800:07:49.399 --> 00:07:53.600and they continued that theme at thismeeting. They held rates. It's now12900:07:54.199 --> 00:07:57.759continues to be at five point fivepercent. The biggest thing that he was13000:07:57.800 --> 00:08:01.199saying as press conference, there's nochance of him cutting rates in March.13100:08:01.240 --> 00:08:05.480He said, it's not going tohappen. And we had a fifty percent13200:08:05.480 --> 00:08:09.399probability of a rate cut coming intothis week in March, right, and13300:08:09.519 --> 00:08:11.839it's not gonna happen now. Sowe just keep seeing those futures drop that.13400:08:13.160 --> 00:08:16.079Yeah, Mark, Yeah, andso it's likely, you know,13500:08:16.240 --> 00:08:20.160nothing in March and probably nothing inthe meeting after that. Either. What13600:08:20.240 --> 00:08:22.800were you pricing in to start theyear five or six rate cuts? Yeah,13700:08:22.800 --> 00:08:24.800some people thought there were six ratecuts that you know, conservative was13800:08:24.800 --> 00:08:28.920probably around four. All right,So when you have all that projected in,13900:08:28.399 --> 00:08:33.240you know, it's it could beit could be a negative impact on14000:08:33.279 --> 00:08:35.559the market if that doesn't come tofruition, certainly, I mean could and14100:08:35.720 --> 00:08:39.799like you said earlier, if theFed reverses their tone right, and they14200:08:39.840 --> 00:08:43.399say, Wow, start becoming Lookat how hot this labor market is.14300:08:43.440 --> 00:08:48.360Look how hot this CPI is comingin. All the economic reports are strong,14400:08:48.399 --> 00:08:50.720all the earnings reports are coming instrong, and we still have inflation14500:08:50.840 --> 00:08:56.120taken back up to five percent orsomething like that. That's that really puts14600:08:56.159 --> 00:08:58.360their hands to the fire. Imean, how do they not have the14700:08:58.440 --> 00:09:01.759raise rates in that situations? Hardto see. So if that would where14800:09:01.840 --> 00:09:05.960is to happen, especially if thatconflict keeps going on within the Red Sea14900:09:05.039 --> 00:09:09.039and oil prices are to surge.Yeah, that Red Sea conflict continues to15000:09:09.080 --> 00:09:13.799boggle a lot of mines because ofhow dominant we are in animals every spot15100:09:13.799 --> 00:09:16.840of the world, and for somereason, we're scared to get involved.15200:09:18.440 --> 00:09:22.720For some reason, there's something fishy. It's very fishy because it's you know,15300:09:22.759 --> 00:09:26.399they're their drone strikes and they're andthey're messing with these ships and they're15400:09:26.440 --> 00:09:31.600taking longer to go around it.But you know, apparently there's even you15500:09:31.639 --> 00:09:35.399know, US soldiers were hurt.I think Dean talked about it maybe last15600:09:35.399 --> 00:09:39.639week or two weeks ago. Itdoesn't seem too efficient to be using these15700:09:39.639 --> 00:09:41.919one to two million dollars missiles toattack these drones. But at the same15800:09:41.960 --> 00:09:45.039time, you know, we gotto put our foot down at some point.15900:09:45.240 --> 00:09:48.240Well yeah, not only that,when you start having US soldiers getting16000:09:48.240 --> 00:09:50.320injured and killed, I mean,that's when you really have to start absolutely16100:09:50.559 --> 00:09:56.519looking into what's going on over there, because there's a crazy stat about the16200:09:56.759 --> 00:10:01.639level of productivity that comes out ofthat channel. I mean, I saw16300:10:01.639 --> 00:10:05.000something about you remember the ever Grandconflict went, not the ever conflict,16400:10:05.000 --> 00:10:09.080but the boat of Evergrand that gotstuck in the canail and it got in16500:10:09.600 --> 00:10:13.240completely stopped production. That's the samelevel of production we're seeing going through that16600:10:13.279 --> 00:10:18.000canal that was when that entire ship. You're barely hearing about it. It's16700:10:18.039 --> 00:10:20.399like, I can't really find toomuch news about the right. Yeah,16800:10:20.399 --> 00:10:22.399when the ever Grand came on youyou couldn't hear about it. But now16900:10:22.399 --> 00:10:26.480you're not hearing anything about it.So it's it's certainly interesting that it's not17000:10:26.519 --> 00:10:30.759getting more news coverage than what itis. Other economic reports that hit us17100:10:30.759 --> 00:10:35.679this week was the SMP Case ShillerHome price Index report for November year over17200:10:35.759 --> 00:10:39.000year. It came in at fivepoint four percent. That's lower than expected17300:10:39.279 --> 00:10:43.360at five point eight, but it'shigher than the previous reading at four point17400:10:43.440 --> 00:10:46.840nine. Continue to see home pricesincreasing year over year as those monthly reports17500:10:46.879 --> 00:10:50.879are coming in. And we actuallydo have a special guest it's going to17600:10:50.919 --> 00:10:54.720come on the show next and Iknow the special guest because he's my father,17700:10:54.799 --> 00:10:56.759Todd Glick as well works for afSterling. He's going to be on17800:10:56.759 --> 00:11:01.159the show talking about housing market andwhat's going went on in that realm as17900:11:01.159 --> 00:11:05.200well. The other economic reports welike to look at is those job reports.18000:11:05.240 --> 00:11:07.480On Wednesday, we got the ADPEmployment change and that came in below18100:11:07.559 --> 00:11:11.679expectations, so that was set inthe market up to think this labor report18200:11:11.720 --> 00:11:13.639wasn't going to be too hot,and then on Friday the real label report18300:11:13.679 --> 00:11:18.080was released and it was very hot. The average hourly earnings came in at18400:11:18.120 --> 00:11:22.720point six expected was point three okayaverage, I mean sorry. Non Farm18500:11:22.720 --> 00:11:26.399payrolls came in at three hundred andfifty three thousand expected one hundred and eighty18600:11:26.480 --> 00:11:31.120k and that's even increased in theprevious reading of three hundred and thirty three18700:11:31.120 --> 00:11:35.039thousand. So normally with these reportsyou get revisions that come in the you18800:11:35.039 --> 00:11:37.080know, weeks subsequently. But allin all, I mean, that's a18900:11:37.240 --> 00:11:43.519double of the non farm payrolls theneconomists were projecting, and so seeing that19000:11:43.679 --> 00:11:46.919is a very hard thing for theFed to not look at. I mean,19100:11:46.919 --> 00:11:52.879average hourly earnings four point five percentexpected four point one. Unemployment rate19200:11:52.000 --> 00:11:56.480is ticked down again. Now it'sat three point seven. I believe that's19300:11:56.480 --> 00:12:00.000an all time historic low. Itmight be three point six, but it's19400:12:00.399 --> 00:12:03.039everything that the labor market says.It's strong. This print on Friday was19500:12:05.480 --> 00:12:07.879it was. It told us there'sno chance that the Federal Reserve is gonna19600:12:07.879 --> 00:12:13.440cut rates here. You know theycan't. They cannot do it. We're19700:12:13.480 --> 00:12:16.080gonna see inflation again, and it'scertainly gonna make some people mass certainly.19800:12:16.120 --> 00:12:18.720I mean, when you have alabor report like that, people are making19900:12:18.759 --> 00:12:22.759money, people are working, peoplearen't getting laid off. That means people20000:12:22.799 --> 00:12:26.080are spending, right, that meansthe economy is moving. And so at20100:12:26.120 --> 00:12:31.639the end of the day, youcan't we're in a good position. So20200:12:31.679 --> 00:12:37.679you're saying higher wages tend to whatsupport stronger consumer spending. Absolutely would have20300:12:37.679 --> 00:12:41.759thought, yeah, absolutely, Soall in all, you know, the20400:12:41.759 --> 00:12:45.480Federal Reserve saying what they're saying,it's it's gonna have a big impact for20500:12:45.519 --> 00:12:50.080stocks moving forward. And likely whatwe're going to see is an event after20600:12:50.120 --> 00:12:54.399event when the FED comes into itsaying we're gonna hold, We're gonna hold,20700:12:54.399 --> 00:12:56.240We're gonna hold in the entire fourfive six rate cuts that we thought20800:12:56.279 --> 00:12:58.919were gonna happen in the beginning ofyear may turn out to be one or20900:13:00.080 --> 00:13:05.000two, maybe zero, you know, and that I think will eventually be21000:13:05.039 --> 00:13:09.720felt in markets. Now, let'slook into something else. This week,21100:13:09.799 --> 00:13:11.879we had a lot of earning,So let's start with some of the earnings21200:13:11.879 --> 00:13:15.960that came out. Let's start withAmazon. Let's start with Amazon. Amazon21300:13:16.000 --> 00:13:20.919Web Services Company's cloud platform grew thirteenpercent a year every year, meeting analyst21400:13:20.000 --> 00:13:26.840expectations, and subsequentially revenue of nearlyone hundred and seventy billion dollars, easily21500:13:26.879 --> 00:13:30.679beating the projections. Overall revenue climbthirteen point nine percent a year every year.21600:13:31.480 --> 00:13:35.120They're advertising it's just doing amazing.It's up twenty six percent better than21700:13:35.120 --> 00:13:37.799analysts. I've expected that. Amazon'sjust killing it on all cylinders. They're21800:13:37.840 --> 00:13:41.440just firing. Yeah, and eversince they kind of moved away from their21900:13:41.480 --> 00:13:46.120pharmacy thing, which is the onlything that really didn't kill it. They've22000:13:46.159 --> 00:13:48.440continued to grow at the rate thatthey're projected. Well, was that again,22100:13:48.440 --> 00:13:52.440I forgot about their pharmacy. Itwas some pharmacy RX thing that they22200:13:52.440 --> 00:13:54.399really thought was going to take off, kind of like a good r extra.22300:13:54.559 --> 00:13:58.639Yeah, Mark Cubans cost plus drugs, right, you know, at22400:13:58.679 --> 00:14:01.200face value, it makes sense.You think it's it's gonna work. It's22500:14:01.240 --> 00:14:05.799surprising that it didn't. But thatwas the only really thing that doesn't work.22600:14:05.919 --> 00:14:09.240You know. Dave always talks aboutthese Amazon stores that they're coming out22700:14:09.279 --> 00:14:13.879with and with the palm readers andwhole foods. Yeah, it's a very22800:14:13.919 --> 00:14:20.279interesting way to combat the shoplifting.Absolutely. I mean, if you put22900:14:20.279 --> 00:14:24.840a barrier of entry to shoplifting,as in I have to scan my palm23000:14:24.840 --> 00:14:28.960every single time or don't or don'twalk into the store, you know it's23100:14:30.000 --> 00:14:31.720there, you can choose a differentstore, right right, And I think23200:14:31.759 --> 00:14:35.960that is a very interesting way ofyou know, if you're a business owner,23300:14:35.960 --> 00:14:37.399Oh, I might have to paya lot of money the security system,23400:14:37.440 --> 00:14:41.360but does it save me money onwhat I'm losing shoplift that's kind of23500:14:41.559 --> 00:14:48.240gonna navigate towards. It's kind ofit opens up vulnerability to these smaller I23600:14:48.240 --> 00:14:52.039guess smaller businesses that don't can't affordsomething like that. So well we see23700:14:52.919 --> 00:14:54.960people starts to shoplift from mom andDad's grocery store. I don't know,23800:14:56.639 --> 00:15:00.320yeah, I mean, you know, technology has it does two things.23900:15:00.440 --> 00:15:05.039It either condenses and creates more centralization, or it creates more freedom, more24000:15:05.080 --> 00:15:09.360decentralization. Amaz sometimes have to takethe good with the bad. Amazon also24100:15:09.440 --> 00:15:13.799said that it's retail businesses enjoyed arecord breaking holiday shopping season. That's kind24200:15:13.799 --> 00:15:16.759of surprising to me, just becauseI guess, no, it's not.24300:15:18.080 --> 00:15:20.679It's not surprising to me. ButI would think that the consumer cares about24400:15:20.679 --> 00:15:24.720their twenty six point four APR inthe credit card. But they surely don't.24500:15:24.919 --> 00:15:26.720No, of course not. Imean, when you really think about24600:15:26.759 --> 00:15:30.960what happened in twenty twenty the pandemichit, no one wants to spend money24700:15:30.960 --> 00:15:33.559because no one knows if they're gonnahave a job next year. Twenty twenty24800:15:33.639 --> 00:15:37.080one hits. You're still pretty timidabout that. December and you're very close24900:15:37.120 --> 00:15:41.440to that COVID twenty twenty two iswhere you started to finally maybe get a25000:15:41.440 --> 00:15:45.039little more. I'm gonna make thosebig purchase items again. Twenty three.25100:15:45.120 --> 00:15:48.399It's like COVID was in the rearvere mirror. Let's have some fun.25200:15:48.639 --> 00:15:50.279We've been pent up. We needto make sure that we get all the25300:15:50.320 --> 00:15:52.320gifts that we haven't got our familyin those years. So I feel like25400:15:52.360 --> 00:15:56.360that's kind of what we saw.And I remember reading a report in December25500:15:56.360 --> 00:15:58.639about the doomsday spending, you know, and saying that, you know,25600:16:00.000 --> 00:16:03.360we're just gonna load up those creditcards in December and not really have the25700:16:03.399 --> 00:16:06.399ability to spend much more as weget into twenty twenty four, and that25800:16:06.440 --> 00:16:11.440could eventually hurt some of those retailstocks. We haven't seen that yet either.25900:16:11.440 --> 00:16:14.000It seems like people will just findways to get more and more credit.26000:16:14.360 --> 00:16:18.759Dean always talks about on the showhow he can't find where this extra26100:16:18.840 --> 00:16:22.759money's coming from. Right, there'sso much money in this system that continues26200:16:22.799 --> 00:16:26.360to be added and poured into thesesuper six stocks and even the stock market26300:16:26.399 --> 00:16:27.360as a whole. I mean,we're at new time, all new,26400:16:27.360 --> 00:16:30.759all time hives. Gotta be somethingwith I think maybe one or two months26500:16:30.759 --> 00:16:33.519ago, we reade a stat thatsaid that this is the most money that26600:16:34.039 --> 00:16:37.399money markets have ever had. Certainlyis a huge part of this is that26700:16:37.440 --> 00:16:40.440money coming out of the money market. I'm saying, you know what,26800:16:40.519 --> 00:16:41.799I have a little bit of fommo. Let's throw it into video, Let's26900:16:41.799 --> 00:16:45.799throw it into meta apple. Youknow, absolutely, that's part of it.27000:16:45.879 --> 00:16:48.639I mean one hundred percent. Anotherthing that people don't realize, and27100:16:48.679 --> 00:16:51.639this gets a little more detailed,but the Federal Reserve has a lot of27200:16:51.720 --> 00:16:56.320tools in their bucket to help organizationsand companies that don't have the liquidity they27300:16:56.360 --> 00:17:00.559need to take care of some oftheir obligations. Some of those obligations could27400:17:00.600 --> 00:17:06.440be as simply as paying back thedepositors that they owe if they're a bank,27500:17:06.519 --> 00:17:10.759right could be paying off a loan. Certain things happen in organizations where27600:17:10.880 --> 00:17:15.200they have to meet liabilities, andif they can't because of their assets being27700:17:15.240 --> 00:17:18.440a liquid then what happens the FederalReserve is that last stop option, that27800:17:18.640 --> 00:17:22.720last resort lender, that person thatis in the marketplace that has something that27900:17:22.759 --> 00:17:26.039no one else has in the worldcalled a money printer, and they can28000:17:26.079 --> 00:17:30.519do it on the World Reserve currency. When they do that, for all28100:17:30.519 --> 00:17:33.799these regional banks that had trouble lastyear in March, they were shored up28200:17:34.240 --> 00:17:38.079by this bank reserves cash that wascreated by the Federal Reserve. A lot28300:17:38.119 --> 00:17:41.880of people think all cash created bythe Federal Reserve is inflationary. It's not.28400:17:42.119 --> 00:17:47.440Actually, there's different types of moneyto FED creates and gets very complicated,28500:17:47.480 --> 00:17:48.680and I'm not going to spend toomuch time on it, but I'm28600:17:48.759 --> 00:17:53.680just letting you know there's ways forbanks to get money that isn't truly money.28700:17:53.680 --> 00:17:56.799It's not money you can take tothe grocery store and spend. It's28800:17:56.799 --> 00:18:00.240really just used as collateral. Andthat's how banks can get around certain liquidity28900:18:00.279 --> 00:18:04.880issues that they found themselves in lastyear. And that allows the entire system29000:18:04.920 --> 00:18:08.599to not unravel, because when youhave to start meeting obligations, what happens.29100:18:10.079 --> 00:18:11.759You have to close accounts, youhave to pay off accounts, you29200:18:11.799 --> 00:18:15.640get margin called money gets sucked outof the system. So no one really29300:18:15.640 --> 00:18:22.359wants that. They're okay with basicallycontinuing the charade by posting more debt on29400:18:22.400 --> 00:18:25.519top of debt on top of debt. Therefore, no one ever has to29500:18:25.559 --> 00:18:29.000get that margin call, and themoney never actually leaves the system. What29600:18:29.119 --> 00:18:33.119is it the American dream? Leveragingother people's money for your own benefit to29700:18:33.160 --> 00:18:37.880an extent? For sure? Now, Dollar Tree had an interesting week.29800:18:38.039 --> 00:18:42.480Shares of the discount retailer popped nearlytwo percent on Monday after JP Morgan upgraded29900:18:42.519 --> 00:18:48.440them to overweight from neutral. Thebank cited higher profitability and a larger total30000:18:48.480 --> 00:18:52.559addressable markets. Potential tailwinds get removed. Dollar Tree. You know that seems30100:18:52.599 --> 00:18:57.200like continue to be a good valueplay there. American Airlines, we exited30200:18:57.599 --> 00:19:00.599some of our jets positions a coupleof weeks ago. Is we just didn't30300:19:00.799 --> 00:19:06.039see the real catalyst for airlines goingforward. It seems everything that could be30400:19:06.079 --> 00:19:10.279good for airlines is right now.Right, there's oils semwi low, people30500:19:10.279 --> 00:19:14.079are traveling, planes are booked up. The only thing that's its cruise shifts30600:19:14.119 --> 00:19:17.160are going right. I mean,the one thing that's interesting is these immigrants.30700:19:17.200 --> 00:19:19.920They are getting free, potentially freeairline tickets on these planes. Chip30800:19:19.920 --> 00:19:23.240it into their profits, is it? Or is the government subsidizing these You30900:19:23.240 --> 00:19:26.119know, likely the government's paying forthem, which means we're paying for them.31000:19:26.160 --> 00:19:32.160But that's an incredibly interesting story abouthow many people are is telling us31100:19:32.200 --> 00:19:37.559about these lines of immigrants they're seeingat the airport getting on the same planes31200:19:37.559 --> 00:19:41.519they're getting on to going into randomplaces of the country New York, Florida.31300:19:41.279 --> 00:19:45.799I mean places you would never thinkthey're sending migrants. I think one31400:19:45.799 --> 00:19:48.440of my biggest concerns with that,and I know that you were hesitant to31500:19:48.480 --> 00:19:51.920agree with me on this, isthe safety precautions of this. I mean,31600:19:52.119 --> 00:19:55.039we don't know who these people are. We don't know like what what31700:19:55.079 --> 00:19:57.039documentation do they have to bring onto get to get onto the plane.31800:19:57.079 --> 00:20:00.240I know that they have to gothrough a TSA checkpoint, right Yeah.31900:20:00.240 --> 00:20:02.359I mean, look at the endof the day, our TSA, it's32000:20:02.400 --> 00:20:04.000a fine tooth calm. They're goingto find something if they have anything.32100:20:04.039 --> 00:20:07.039But not only that, realized thatbefore they even got to TSA, they32200:20:07.880 --> 00:20:11.119were shaken down by border patrol.So there's a couple levels. You know,32300:20:11.160 --> 00:20:15.559I would worry more about domestic terrorismthan immigrants coming over and doing it32400:20:15.559 --> 00:20:18.799through a plane. I mean,that's there's a lot of barriers of entry32500:20:18.839 --> 00:20:22.559there. But in terms of justwhat we are seeing right now in the32600:20:22.680 --> 00:20:26.839in the division of this country.That's what's scary, because it doesn't seem32700:20:26.920 --> 00:20:30.680like the threat is almost always goingto be external at this point, it's32800:20:30.680 --> 00:20:34.119going to come from inside of usbecause we're so divided, and that's what's32900:20:34.160 --> 00:20:37.759the concern is. But going backto airlines, it doesn't seem like it's33000:20:37.799 --> 00:20:41.400a great place to be in justbecause everything looks great right now, and33100:20:41.400 --> 00:20:45.039how much better could it get?Where are they going? Where do you33200:20:45.039 --> 00:20:48.480think they're taking them? They're takingthem to these sanctuary cities. I mean33300:20:48.519 --> 00:20:51.599technically they are sanctuary cities. Theyjust never got immigrants in the first place,33400:20:51.640 --> 00:20:53.960because if you're an immigrant walking fromMexico to Arizona, who wants to33500:20:55.000 --> 00:20:57.160walk from Arizona New York? Imean that's not realistic. Now they have33600:20:57.160 --> 00:21:00.720the actual opportunity to get to theseplaces, these sanctuary cities quote unquote,33700:21:00.759 --> 00:21:03.279that we're never actually able to begetting to in the first place. What33800:21:03.359 --> 00:21:07.119is a sanctuary city. It's justa city that you know, they're saying33900:21:07.119 --> 00:21:11.440that we're we accept immigrants, wehelp immigrants, and we help you know,34000:21:11.519 --> 00:21:15.720supply certain benefits that they need toget on their feet. And it's34100:21:15.799 --> 00:21:18.000just as if NYPD doesn't have enoughissues as it is, all right,34200:21:18.119 --> 00:21:22.160all right, well it's more ofa virtue signaling thing than anything to make34300:21:22.200 --> 00:21:25.759themselves feel good about what they're doing. But yeah, you know, it's34400:21:25.920 --> 00:21:29.920very interesting. I Robot continues tobe a slump of a stock because of34500:21:29.920 --> 00:21:33.759what happened with their termination of aplanned merger they had with the Amazon,34600:21:33.079 --> 00:21:37.519citing no path to regulatory approval.I Robot also said it would have to34700:21:37.559 --> 00:21:41.880cut thirty one percent of its staff, about three and fifty employees, and34800:21:41.920 --> 00:21:45.599the CEO has stepped down, Soit's messed up. Yeah, my opinion.34900:21:45.960 --> 00:21:48.200You know that if they made agood product, let them use it,35000:21:48.359 --> 00:21:51.160let them sell it on Amazon.Yeah. You know, I was35100:21:51.160 --> 00:21:55.920talking to this about a client theother day about regulation has its place,35200:21:56.559 --> 00:22:02.720but in every true sense of regulation, you're impeding technology and impeding research and35300:22:02.759 --> 00:22:07.640development. And what that hurts isthe production of new technologies that can be35400:22:07.720 --> 00:22:11.279cru that can really help people inthis world. Right. Yes, at35500:22:11.279 --> 00:22:14.640the end of the day, moneyis the motive, but that money motivation35600:22:14.960 --> 00:22:17.400gives us some of the greatest thingsthat we all use to this day.35700:22:17.920 --> 00:22:22.039Right, So you have to takethe good with the bad. Motivation comes35800:22:22.079 --> 00:22:25.519with incentives. Incentives that's going tobe money at the end of the day35900:22:25.519 --> 00:22:29.039for these companies to produce the typeof things we want. And so these36000:22:29.079 --> 00:22:33.079regulations, to me, it reallyhurts capitalism at its fine, it's what36100:22:33.079 --> 00:22:34.559it's really supposed to be. Ithurts the business owner and it hurts the36200:22:34.599 --> 00:22:40.640consumer that wants the I robot right. So Far I had another great week.36300:22:40.720 --> 00:22:44.519Shares of the financial services provider searchtwenty one percent after the company reported36400:22:44.519 --> 00:22:49.079its fourth quarter fiscal results. SoFar posted earnings of two cents above expectations.36500:22:49.119 --> 00:22:52.079They continue to do really well.I mean for people who don't know,36600:22:52.079 --> 00:22:57.319they had a lot of success wheninsustrates were low, reconsolidating student loan36700:22:57.359 --> 00:23:03.640debt to smaller rates. But ingeneral they're really good just refinance financial services,36800:23:03.640 --> 00:23:04.960and they're coming in with their ownbanking and things like that. I36900:23:04.960 --> 00:23:07.759was gonna say, have you everhave you been able to buy stocks through37000:23:07.799 --> 00:23:10.880so FI, because I'm pretty surethat I saw that's a new thing.37100:23:11.200 --> 00:23:14.680I Mean, my my favorite Chargersquarterback Justin Herbert, is one of their37200:23:14.720 --> 00:23:18.880spokespeople at so Far. So I'malways learning more stuff about SOFI than I37300:23:18.920 --> 00:23:26.599don't your chargers sucks least you're thoughtoo. Yeah, go Niners economic Well,37400:23:26.599 --> 00:23:30.480actually no, you know what's interestingthis week FanDuel talking about sports.37500:23:30.480 --> 00:23:34.039We had a sports gambling FanDuel site. They are actually owned by a company37600:23:34.039 --> 00:23:38.759called Flutter. Flutter iPod on theNew York Stock Exchange. I was actually37700:23:38.759 --> 00:23:41.640on another exchange first, but nowit's on the New York Stock Exchange.37800:23:41.759 --> 00:23:47.240So if you're looking for another placeother than DraftKings, Flutter owns FanDuel.37900:23:47.359 --> 00:23:51.480So that's a fltr is the tickerfor that. Used to be on the38000:23:52.000 --> 00:23:53.960London Stock Exchange, now it's onthe New York se used to me the38100:23:55.039 --> 00:23:56.720draft things are still front running thatwhole market. Well, you know,38200:23:56.799 --> 00:24:00.319FanDuel technically owns a little more ofthe market share of the mobile gambling space,38300:24:00.400 --> 00:24:03.799but DraftKings is right at their hills. Draftings gonna report earnings in a38400:24:03.839 --> 00:24:07.319couple of weeks, potentially could hitprofitability for the first time in that company's38500:24:07.359 --> 00:24:11.240history. Very interesting. So we'recoming up on the first segment of the38600:24:11.240 --> 00:24:15.599first hour. We appreciate you alllistening to the Money Matter Show again.38700:24:15.680 --> 00:24:18.880Dean and Dylan and Dave. We'llall be back next week and we'll be38800:24:18.960 --> 00:24:22.400right back with the second hour,well the second segment of the first hour38900:24:22.440 --> 00:24:30.079of The Money Matters Show. Thanksfor listening. Welcome back to The Money39000:24:30.079 --> 00:24:33.640Matter Show. My name is ToddClick Junior. I'm here with Todd Lick39100:24:33.839 --> 00:24:40.720Senior, our special guest as wellSebastian Boarsini. Toddlick sor is the head39200:24:40.759 --> 00:24:44.440of purchasing at a custom home buildernamed A. F. Sterling here locally39300:24:44.440 --> 00:24:47.559in Tucson. Wanted to bring himon the show because first of all,39400:24:47.680 --> 00:24:51.279he is my father. Second ofall, AF Sterling I've actually known for39500:24:52.000 --> 00:24:56.039since I was probably nine ten yearsold, actually worked with him a couple39600:24:56.079 --> 00:25:00.079of times. Very interesting company,and they're more on the custom side of39700:25:00.119 --> 00:25:02.400home production. You know, whenyou're looking at home production, you're going39800:25:02.440 --> 00:25:04.200to see the new homes and you'regoing to see the custom homes. New39900:25:04.200 --> 00:25:07.039homes are those production builders, theKbs, the d R Hortons, the40000:25:07.039 --> 00:25:11.839Poulties, and then you have someof the custom builders that really tailored to40100:25:11.880 --> 00:25:15.759some of the more optionality style homesthat you could have. So Todd Lick,40200:25:17.160 --> 00:25:18.559welcome to the show. Thank youfor having me. Appreciate you being40300:25:18.599 --> 00:25:22.279here all right, So first,you know what we want to talk about40400:25:22.359 --> 00:25:29.319is obviously rates rates in those housingworld have a huge impact and the easiest40500:25:29.359 --> 00:25:33.079way to describe it is your mortgagepayments probably double than what it was two40600:25:33.160 --> 00:25:36.599years ago, so people trying toqualify for homes is harder now. That40700:25:36.759 --> 00:25:41.759usually isn't something that has too muchimpact in your business because new home builders40800:25:41.799 --> 00:25:44.799are the ones that are really tryingto qualify, right, And so the40900:25:45.240 --> 00:25:51.480drs, the Poulty, the KBhomes, they're not really necessarily going.41000:25:51.680 --> 00:25:56.680You don't have the big buyers thatneed they all their buyers need financing predominantly,41100:25:56.960 --> 00:25:59.799right, so they care a lotabout rates and impacts their business.41200:26:00.480 --> 00:26:03.480When you get into the custom side, sometimes you're doing cash offers, rates41300:26:03.519 --> 00:26:06.319don't have anything to do with it. Sometimes you're doing a very low financing,41400:26:06.400 --> 00:26:07.960Rates have nothing to do with it. So how has those rates impacted41500:26:08.079 --> 00:26:11.319the custom side of building compared towhat you've seen on the new home side.41600:26:11.400 --> 00:26:14.720Yeah, so just to clarify itis Sterling, right, we do41700:26:14.799 --> 00:26:18.799production and custom and we do wedabble, we commercial and recuse of multi41800:26:18.799 --> 00:26:26.160family housing. We're in apartments aswell, so we kind of dabble in41900:26:26.160 --> 00:26:29.559a little bit of everything, staydiversified in this market. In this market,42000:26:29.559 --> 00:26:32.839that's ever changing, that's for sure. But the rates, You're right.42100:26:33.839 --> 00:26:37.640We have some subdivisions that are definitelyentry level which are in need of42200:26:37.640 --> 00:26:41.799the financing. We have some thatare in the custom side that need little42300:26:41.799 --> 00:26:45.079to know financing, to be honest, So you're right, it does change.42400:26:45.119 --> 00:26:48.519But it affects every market no matterwhat, whether entry level or high42500:26:48.599 --> 00:26:53.880end, it's going to affect youat some point. And the numbers obviously42600:26:53.920 --> 00:26:57.640have shown that even the higher endmarket, even though it's still there,42700:26:57.799 --> 00:27:02.039it still has people pulled back.They can't afford what they used to be42800:27:02.119 --> 00:27:04.799able to afford. So the rateshave definitely took a hit on that.42900:27:06.519 --> 00:27:10.240Another thing I wanted to talk aboutis labor, right because labor issues have43000:27:10.359 --> 00:27:15.440continuously been a predominant thing in thisarea because of some of the things that43100:27:15.519 --> 00:27:18.920happened eight years ago, ten yearsago, and a lot of it has43200:27:18.960 --> 00:27:23.680to do with immigration policy. Wespend a little time talking about how labor43300:27:23.720 --> 00:27:26.240has been impacted, what it wasfifteen, ten years ago, what it43400:27:26.279 --> 00:27:30.519looks like now, and what arethe struggles So labor is definitely a huge43500:27:30.559 --> 00:27:36.680issue. And to touch base onthat, when Tucson was at its highest43600:27:36.680 --> 00:27:41.839point ever building and we were justgoing nuts, we were just below twelve43700:27:41.880 --> 00:27:45.920thousand permits in Tucson. To putthat in perspective, these days were around43800:27:47.039 --> 00:27:48.799the last couple of years have beenaround thirty four to thirty eight hundred.43900:27:49.319 --> 00:27:53.039Kind of anticipating that again this year. This is coming up year roughly,44000:27:53.119 --> 00:27:59.000depending obviously on rates and the market. The market's there, but we did44100:27:59.079 --> 00:28:00.839what year did you have your high? That was probably around O five oh44200:28:00.880 --> 00:28:04.400six, and then the market crashin like battle seven, and so when44300:28:04.400 --> 00:28:08.039it crashed in oh seven, Uh, that's when really a lot of stuff44400:28:08.079 --> 00:28:14.720declined, right. The market tooka huge hit. Labor businesses closed,44500:28:14.720 --> 00:28:17.480a lot of the local businesses,a lot of the contractors closed up shop.44600:28:17.480 --> 00:28:19.160They couldn't they couldn't make it anymore. A lot of our labor left,44700:28:19.200 --> 00:28:22.920the SB ten seventy, the eVerify, A lot of our labor44800:28:22.920 --> 00:28:26.759left to other states. Because thatwas a huge impact. And talk about44900:28:26.759 --> 00:28:30.799that because I don't think a lotof people know about what was E forty.45000:28:32.200 --> 00:28:34.160Yeah, SB ten seventy and theEVE Air five. So that was.45100:28:34.440 --> 00:28:37.799These were programs that were set upreally to kind of bring some of45200:28:37.799 --> 00:28:44.039the labor force from you know,immigrants and have them work on your production.45300:28:44.079 --> 00:28:48.920And obviously they're probably cheaper than regularlabor. But that changed at a45400:28:48.920 --> 00:28:55.240certain point. What happened, well, I mean when people left and you45500:28:55.279 --> 00:28:57.599know, it started to try totick back up again, but people never45600:28:57.640 --> 00:29:00.400came back to Tucson. When theyleft, they never came back. It45700:29:00.480 --> 00:29:04.440drove people out of Tucson and absolutelythe labor force and a huge labor force45800:29:04.480 --> 00:29:08.079for us. We're Hispanics, andso when they're forced out to go find45900:29:08.079 --> 00:29:11.440a living, to make their families, to support their families, you know,46000:29:11.519 --> 00:29:15.759it was outside of the Arizona market. So that really hit us hard46100:29:15.759 --> 00:29:19.039and still hitting us to this day. The market, the labor market's not46200:29:19.119 --> 00:29:22.599going down. It's very thin,it's hard. It's big for the high46300:29:22.599 --> 00:29:29.000schools to be involved with with thoseprograms to bring people up into the into46400:29:29.039 --> 00:29:33.200the trade market because there's a there'sa very good living in the trade market.46500:29:33.480 --> 00:29:36.720But I don't think people well,let's recognize I mean SABA, an46600:29:36.839 --> 00:29:40.640organization that Greenberg's with as well asI believe they have Sterling, correct,46700:29:40.759 --> 00:29:45.079we are. Southern Arizona home BuildersAssociation put on a construct Construct Construction Career46800:29:45.160 --> 00:29:48.480Days. I don't know, likeI said, construction Career Days, and46900:29:48.519 --> 00:29:51.839there was like what fourteen high schoolsor something like that all came to this.47000:29:51.880 --> 00:29:56.079It was over four thousand students learningabout trades, learning about the things47100:29:56.079 --> 00:30:00.240that they can do. Because weall know everyone wants to be talk stars47200:30:00.319 --> 00:30:03.279or even worse right, that's partof the problem is some of the younger47300:30:03.319 --> 00:30:07.880generation is not going out in theworkforce. They want to stay at home,47400:30:07.359 --> 00:30:14.279they want to work from home TikTokstars or other websites. So it's47500:30:14.319 --> 00:30:17.119it's very challenging, and that's whatwe're trying to do is get the younger47600:30:17.119 --> 00:30:22.640generation to learn about a trade oreducate them about the money that's involved in47700:30:22.680 --> 00:30:26.720being involved in a trade. Morethan that, I think, yeah,47800:30:26.759 --> 00:30:29.319the money part, I mean,it's just a no brainer. If you're47900:30:29.359 --> 00:30:32.200someone who doesn't have a GED,or even if they do have a GD,48000:30:32.319 --> 00:30:33.559but you're having a hard time findinga job that you can really give48100:30:33.559 --> 00:30:37.480you somebody that's holds not their thing. You know, you and I both48200:30:37.519 --> 00:30:40.759went to school and if I wouldn'thave went to college. I'd go do48300:30:40.880 --> 00:30:44.000trade because there's so much money inthat. I had somebody at my house48400:30:44.039 --> 00:30:45.920the other day, paid him twelvehundred dollars. She was there for two48500:30:45.920 --> 00:30:51.160hours. What happens hard work,right, That's what people are afraid of.48600:30:51.279 --> 00:30:53.920Hard work. It's not easy.There's not something you're going to anything48700:30:53.960 --> 00:30:56.480easy though, exactly. That's thewhole point. Everyone's got to work for48800:30:56.519 --> 00:31:00.079someone to work. And it's foranyone listening to this show, or any48900:31:00.079 --> 00:31:03.880one has kids that is listening tothe show who don't know what they should49000:31:03.880 --> 00:31:07.440do. Get them in touch withlabor. Even get in touch with a49100:31:07.480 --> 00:31:10.680home builder and they'll tell you wherethey need labor. The moment, especially49200:31:10.680 --> 00:31:14.039with all these college prices just increasingdramatically, Like you know, if you49300:31:14.039 --> 00:31:17.640can't afford it, there's other avenuesthat you could go about and make money,49400:31:18.000 --> 00:31:21.440exactly, And there's plenty of tradeschools, great trade schools here.49500:31:22.160 --> 00:31:23.039You don't have to you don't gotto spend all the money in the world49600:31:23.079 --> 00:31:27.440and go send in a gender inequalityclass, you know exactly. Exactly.49700:31:27.440 --> 00:31:30.960That probably means, you know,rates have been high. That's affected the49800:31:30.000 --> 00:31:36.880market between labor, between labor beinghigh rates being high. Land costers keep49900:31:36.920 --> 00:31:40.880going up. It's hard to makestuff pencils sometimes and so, and it's50000:31:40.920 --> 00:31:44.000pushing people out of the market.Now the market's still there. Arizona is50100:31:44.440 --> 00:31:47.720one of those four affordable states thatpeople want to move to. Good climate,50200:31:48.640 --> 00:31:49.799you can make good living. Theproblem is two sons a little behind50300:31:49.799 --> 00:31:55.079the curve in regards to job opportunitiesas well growth. It's a very slow50400:31:55.160 --> 00:32:00.559growth market, but people see opportunityin Arizona to come here and housing,50500:32:00.599 --> 00:32:02.240which is there is a shortage ofobviously well. And also you have two50600:32:02.240 --> 00:32:07.480different realms of Arizona, right.You have the metropolis of Phoenix that is50700:32:07.559 --> 00:32:12.200certainly high growth, and there's notdifferent market than TuS On, different market50800:32:12.200 --> 00:32:14.839compared to what Tucson is even therest of the state. I mean,50900:32:14.880 --> 00:32:17.680really phoenixes is own state compared towhat its growth rate is compared to the51000:32:17.720 --> 00:32:22.279rest of absolutely so it makes abig difference in that term. So do51100:32:22.279 --> 00:32:27.000you talk about materials costs just goingup exponentially? Do you remember the time51200:32:27.039 --> 00:32:30.880when lumber was just you know,went through the roofs and it's probably it's51300:32:30.880 --> 00:32:34.000gone down since then. So doyou still are these still chipping into your51400:32:34.000 --> 00:32:37.400margins much so? Lumber wise isprobably back to pre COVID. COVID probably51500:32:37.440 --> 00:32:39.799the worst two years of my homebuilding life. To be honest with you,51600:32:39.920 --> 00:32:44.039I couldn't I couldn't get labor,I couldn't get materials. I got51700:32:44.039 --> 00:32:46.200cost increase every week, couldn't controlit. It was take it or leave51800:32:46.200 --> 00:32:49.240it, or we're not showing up. It already a contract or in you51900:32:49.319 --> 00:32:52.200had to fulfill it, and itwas like take it or not showing up,52000:32:52.240 --> 00:32:53.759sign it or we're not going.So we were pretty much at the52100:32:53.799 --> 00:32:58.759mercy of the market. So it'sdefinitely come lumbers come back down to a52200:32:58.759 --> 00:33:02.359sustainable rate, and other stuff hasn't. Every year you're still getting an increase52300:33:02.400 --> 00:33:07.240in January from from you know,applying to from electrician, from just a52400:33:07.240 --> 00:33:10.400lot of things, the material,the volatile market, and so you can52500:33:10.440 --> 00:33:15.359only sustain that. Although, likeI said, Tucson's relatively cheap in comparison52600:33:15.400 --> 00:33:19.039to the rest of it nationally,but we got to look, we're more52700:33:19.319 --> 00:33:22.680focused on Arizona and locally versus nationally, and nationally you can only take so52800:33:22.759 --> 00:33:25.960much of that information. Although nationallyyou know they are. It's still building52900:33:27.000 --> 00:33:30.799across the nation is still pretty strong, which is pushing prices and pushing products53000:33:30.799 --> 00:33:34.640to get higher and higher. Soare those prices that are going higher and53100:33:34.720 --> 00:33:37.799higher? Can you include labor within? That's just because absolutely labor is a53200:33:37.799 --> 00:33:39.519big part of that driving factor.The only reason that I asked that is53300:33:39.519 --> 00:33:43.079because, like you say, wehave a big immigration thing going on here53400:33:43.119 --> 00:33:45.279in Tucson, So that to me, You know, if you could go53500:33:45.359 --> 00:33:50.200find somebody to work for you fora lesser cost, it puts a downward53600:33:50.240 --> 00:33:53.880pressure on price of labor. People. You know that we're working here,53700:33:53.960 --> 00:33:57.519home builders are were working here.They might go elsewhere. They might go53800:33:57.559 --> 00:34:00.960to Montana, who knows right,to be honest, there's a lot of53900:34:00.960 --> 00:34:05.480people doing work here out of statetoo as well. So but yeah,54000:34:05.519 --> 00:34:09.119the labor market is continue. Somestuff has stabilized, some materials and things54100:34:09.159 --> 00:34:13.159of that nature, but the labormarket's still climbing. I mean there's not54200:34:13.239 --> 00:34:16.320There's a very small pool to poolfrom, and everyone's pulling from that same54300:34:16.360 --> 00:34:21.119pool. So all the rivers arechasing that for that one guy, you54400:34:21.159 --> 00:34:22.559know what I mean, or thatlittle small amount, So there's only so54500:34:22.599 --> 00:34:27.079many. It's not like that poolkeeps growing. It's say there's one hundred54600:34:27.079 --> 00:34:30.599people, there's six. You know, there's sixty riffing companies. They're all54700:34:30.599 --> 00:34:32.119pulling from those hundred. They're goingjobs. They're pulling guys. And I'll54800:34:32.159 --> 00:34:35.440give you a truck, right,I'll give you ten grand signing bonus.54900:34:35.440 --> 00:34:37.599You stay with us a year andyou got to stay competitive. Yeah,55000:34:37.639 --> 00:34:39.199and you got to stay and yougot and you know, you're either gonna55100:34:39.239 --> 00:34:43.280rise up or sink. And that'skind of where it's been. So it's55200:34:43.320 --> 00:34:45.159it's been tough. It's been challenging. Like I said, that's why we've55300:34:45.199 --> 00:34:47.920kind of diversified our business. Wedo the customs, we do production,55400:34:49.039 --> 00:34:52.079we do apartment build we do youknow, commercial and multi family. So55500:34:52.840 --> 00:34:57.840in our aspect being a smaller localcompany, you know that that's kind of55600:34:57.840 --> 00:35:01.039where we have to we don't haveWe have a different kind of mindset in55700:35:01.079 --> 00:35:05.280regards to the nationals, you know, and nationals have a little more flexibility55800:35:05.280 --> 00:35:09.800in regards to cash flow and andhow they can uh uh shift numbers around55900:35:09.840 --> 00:35:13.079and whatnot. How you want tohave ever you want to play the game.56000:35:13.559 --> 00:35:17.320But buying down buying down rates ishuge for especially in the entry first56100:35:17.320 --> 00:35:22.039time Uh move up market. Uhthat's a that's a huge and that's that's56200:35:22.039 --> 00:35:23.519the way they can they can dothat. I mean always the first of56300:35:23.519 --> 00:35:28.079the quarter always starts out strong.Permits are gonna be high. They got56400:35:28.079 --> 00:35:30.599to get specs out there, Theygot to get the numbers rolling, and56500:35:30.639 --> 00:35:34.159as you see, typically as theyear goes on, it kind of dips56600:35:34.199 --> 00:35:37.400down because they got to get thefront end. It's numbers. It's numbers.56700:35:37.440 --> 00:35:40.239So well, we appreciate all thisinformation. I love having you on56800:35:40.280 --> 00:35:44.559the show. We're coming up onthe break here, so I appreciate you56900:35:44.599 --> 00:35:47.239again coming in in your busy schedule, and we will be right back for57000:35:47.320 --> 00:35:51.199the Thang Bang Niner Gang. Let'sgo, Yeah, go Niners at the57100:35:51.199 --> 00:35:53.440super Bowl. All right, we'llbe right back at the second third segment57200:35:53.440 --> 00:35:55.679of the first hour of The MoneyMatter Show. Thank you for listening.57300:36:00.440 --> 00:36:02.079Welcome back to The Money Matter Show. My name is Todd Glick Junior.57400:36:02.079 --> 00:36:06.719I'm here with Sebastian Barsinian. Wewant to bring on toglic Senia one more57500:36:06.719 --> 00:36:10.079time because we've had an interesting topicabout the build for rent section here in57600:36:10.159 --> 00:36:15.679Tucson, because as everyone knows,when rates get high, that means mortgage57700:36:15.679 --> 00:36:17.599payments get high. So people firstof all might say, wow, these57800:36:17.599 --> 00:36:22.239rents are high, they're equally whatmortgage payments would be. Why am I57900:36:22.400 --> 00:36:24.320not just gonna get out there andget a mortgage. Well, what people58000:36:24.360 --> 00:36:29.719don't realize is there's something called qualifyingfor a mortgage. Yeah, not only58100:36:29.760 --> 00:36:31.559do you have to qualify for themortgage, there's something else, but to58200:36:31.639 --> 00:36:37.280have the down deposit the down Yeah, that's the problem I think right now,58300:36:37.360 --> 00:36:40.239and that's where the bill for rentis coming into play, is that58400:36:40.320 --> 00:36:44.480it's that's gonna be a big market. People can afford the mortgage or the58500:36:44.760 --> 00:36:47.599or the monthly rent, they justdon't have that money for the down payment,58600:36:47.599 --> 00:36:51.320which is huge. And a lotof people are one catastrophe away from58700:36:51.360 --> 00:36:54.559losing losing things. I mean youhave a bad accident or a health issue58800:36:54.639 --> 00:37:00.039or something. I mean they don'thave that back income or the savings to58900:37:00.039 --> 00:37:04.000be able to financially support themselves fora few months. And so I think59000:37:04.039 --> 00:37:07.599that's this build for rent thing isgoing to be. As costs continue to59100:37:07.639 --> 00:37:12.440claim, I think that's going tobe a bigger bigger market in the Tucson59200:37:12.480 --> 00:37:15.760area. Well, not only thatyou have home prices increasing, which means59300:37:15.760 --> 00:37:20.599what down payments are constantly getting gettinghigher and higher yeap, and incomes are59400:37:20.599 --> 00:37:23.599not increasing at the rate inflations anddefinitely not, definitely not. There's no59500:37:23.679 --> 00:37:27.599way that you're going to be ableto qualify better in five years unless you're59600:37:27.599 --> 00:37:30.480getting a huge pay raise, right, unless you get a completely new job59700:37:30.599 --> 00:37:35.320change. Correct, So people dofind themselves in this really horrifying situation of59800:37:35.440 --> 00:37:38.559am I ever going to own ahome? And so you know, the59900:37:38.599 --> 00:37:42.599build for rent, it doesn't meanthat you are building equity into this,60000:37:42.719 --> 00:37:45.840right correct. I mean it's trulya rental home, it is, but60100:37:45.880 --> 00:37:49.239it's an actual home where it's anapartment or a condo and you actually have60200:37:49.320 --> 00:37:52.639a home, so you have abackyard, you have your house, so60300:37:52.719 --> 00:37:55.079it's like you live in a house. But a lot of people don't want60400:37:55.119 --> 00:37:58.679the house, don't want to havethat, you know what I mean,60500:37:58.760 --> 00:38:01.360or don't want to have their ownhouse to have to be able to uh60600:38:01.639 --> 00:38:06.599spend on the upkeeping, maintenance andthings of a house. So this works60700:38:06.599 --> 00:38:08.079for them, and a lot ofpeople maybe they're only going to be in60800:38:08.079 --> 00:38:10.960two Sun for a couple of yearsworks perfect for them. You know,60900:38:12.000 --> 00:38:15.079they know they're going to spring foldmilitary or even jobs depending on your job,61000:38:15.119 --> 00:38:17.960you move around. So I mean, that's gonna that's gonna affect the61100:38:19.000 --> 00:38:22.679home building market in general as well, I believe. So I'm thinking out61200:38:22.719 --> 00:38:27.239loud here, this company that's producingthese build for rent houses, that's a61300:38:27.280 --> 00:38:30.639lot of money you got to putup absolutely right, because that money ain't61400:38:30.639 --> 00:38:34.800coming into you for ten twenty years, and you know down the road before61500:38:34.880 --> 00:38:37.719you really may maybe ten years atbreak even, twenty years where you start61600:38:37.719 --> 00:38:39.559to see a nice profit, thirtyyears where you're really rolling, right,61700:38:39.599 --> 00:38:44.639But it takes time for these typeof projects. What are the potential pitfalls61800:38:44.639 --> 00:38:47.599you think you think in this newniche of the housing market. Well,61900:38:47.679 --> 00:38:51.840I mean the pitfall obviously is it's, like you said, long term.62000:38:51.880 --> 00:38:55.119If someone pulls out damages to housesor you know, does certain things the62100:38:55.159 --> 00:38:58.559houses, you're you're, like yousaid, you're left holding the bag.62200:38:58.880 --> 00:39:00.360And it's long term game, right, it's not short term game. You're62300:39:00.360 --> 00:39:05.960looking at the long term future.So obviously you got to have investors deep62400:39:05.960 --> 00:39:08.679pockets and be able to carry thisfor quite some time. Uh. Like62500:39:08.719 --> 00:39:12.400I said, I think it's gonnaaffect the new housing market definitely, because62600:39:12.840 --> 00:39:15.480people can't afford it. Costs keepgoing up. They ain't going down.62700:39:15.599 --> 00:39:19.039We all know that. It's justnot even if rates come down a little62800:39:19.079 --> 00:39:22.360bit, that will help, butwe foresee it. It's never gonna be62900:39:22.360 --> 00:39:23.920at what it was. Ever.Yeah, that's not how inflation works.63000:39:23.960 --> 00:39:27.800Yeah, exactly, let's call somethingelse. It's called deflation. Yeah,63100:39:28.079 --> 00:39:30.679you ain't getting that yet. Yeah. I mean it may come down half63200:39:30.719 --> 00:39:34.679point or whatever percent whatever, butit's not gonna it's not gonna dip dramatically63300:39:34.719 --> 00:39:37.159like we've had it in the past. So you know, it's like you63400:39:37.199 --> 00:39:40.840said, the inflation's going up.Uh, your salaries aren't going up matching63500:39:40.880 --> 00:39:45.239what inflation is. So it's gonnabe in the growth in Tucson. It's63600:39:45.239 --> 00:39:47.960got to grow. We've got andwe're behind the cover. We always have63700:39:49.039 --> 00:39:52.280been. Tuson wanted to be asmall town, small growth and didn't want63800:39:52.320 --> 00:39:54.199to grow, and now they're beingforced to. And now we're and we're63900:39:54.280 --> 00:39:59.159chasing our tails on these on thefreeways, on the overpasses, on on64000:39:59.159 --> 00:40:02.079on all these things that we're sonot ready for that. I think we64100:40:02.199 --> 00:40:07.360got to get our arms around becauseit's coming. It is kind of fun64200:40:07.400 --> 00:40:09.440to look at that from a thousandfoot overview of what Tucson could be.64300:40:10.079 --> 00:40:13.880I mean, the potential there isis very strong. You have a lot64400:40:13.920 --> 00:40:15.960of Californians, a lot of outof states moving the state for a reason.64500:40:16.079 --> 00:40:20.679I was just out in California withmy family and they were saying,64600:40:21.079 --> 00:40:22.960how much you're purchasing your home for. I'm thinking it's you know, it's64700:40:23.000 --> 00:40:25.639pretty good. Three hundred and fiftythousand. That's kind of expensive. You64800:40:25.639 --> 00:40:29.800know, that's not bad. Guesswhat they were like, three fifty What64900:40:29.840 --> 00:40:35.719are you living in Styx? Like, no, I'm living because there you65000:40:35.719 --> 00:40:37.599can't find a home cheaper than fivehundred thousand. That's a port home there.65100:40:37.840 --> 00:40:39.639That ain't a fun huh. Itell you what. It's not just65200:40:39.679 --> 00:40:43.920California. I get a lot ofNorthwest Seattle, Washing are a lot of65300:40:43.920 --> 00:40:45.960Midwest people want to get out ofthe snow. They want to get to65400:40:45.119 --> 00:40:49.000an area where where it's good weather, climate too, and it's affordable.65500:40:49.079 --> 00:40:52.079Like I said, you're getting peopleall over It's it's Nevada Arizona, Texas,65600:40:52.079 --> 00:40:54.960and Florida, I think are thefour states that'll continue to flourish.65700:40:55.039 --> 00:41:00.920And there's so much room to growhere Marana forever. Yes, by all,65800:41:00.960 --> 00:41:02.119you still got plenty of room outthere. Soder, Well, that's65900:41:02.119 --> 00:41:06.800what you're seeing. The big growthin Tucson is like southeast. You know66000:41:06.920 --> 00:41:09.639those areas where you're kind of you'restretching out Twson more right, where land66100:41:09.679 --> 00:41:14.199is cheaper because you can get landfor more value and you could spread that66200:41:14.239 --> 00:41:19.159out. I'm thinking of the fromRana to Castle Grand there's a huge space66300:41:19.199 --> 00:41:21.639there. You know, there's RedRook. Look how long Red Rock's been66400:41:21.679 --> 00:41:24.239going and it's been going for tenplus years. I bet Red Rock's been66500:41:24.239 --> 00:41:27.599going. I remember when I wasprobably ten or twelve years old, where66600:41:27.599 --> 00:41:30.039my family was thinking about moving andwe want to go look at a house66700:41:30.079 --> 00:41:32.119in Red Rock, and I wasjust saying, please don't. Because I66800:41:34.079 --> 00:41:42.800say that now I'm already lated.So baseball practice, yeah, no,66900:41:42.880 --> 00:41:45.119I mean, that's that's what's funto look at. I mean, there's67000:41:45.159 --> 00:41:50.039a potential high speed rail that they'vebeen talking about forever. I'm going between67100:41:50.039 --> 00:41:52.360Tucson and Phoenix. Apparently they mighthave gotten some funding for I'm not sure67200:41:52.400 --> 00:41:55.639exactly how true that story was thatI read, but it's that those sort67300:41:55.679 --> 00:42:00.239of things. I mean, imagineany type of transportation between Tucson and Phoenix,67400:42:00.400 --> 00:42:02.920the type of business that creates betweenthe team changer absolutely that. I67500:42:04.000 --> 00:42:08.079mean, Intel is not really inPhoenix. That semiconductor chip plant is you67600:42:08.119 --> 00:42:12.320know Chandler. It's Chandler, andit's very close to Costa Grant, So67700:42:12.320 --> 00:42:15.440you start to think, you know, that's going to start integrating down as67800:42:15.440 --> 00:42:21.000well, South and things. What'sthe other one you go to? Costa67900:42:21.039 --> 00:42:24.159grand has their home productions Taiwan semiConductors. Yeah, North. Yeah,68000:42:25.159 --> 00:42:28.360that doesn't really help, you know, the Tucson area. But we're talking68100:42:28.400 --> 00:42:31.760about the businesses that come from Chandlerdown to Marana. Those are all gonna68200:42:32.079 --> 00:42:36.760need more and more houses around themas they build out right, because that68300:42:36.840 --> 00:42:38.440needs more labor. And so thoseare the type of things you start to68400:42:38.440 --> 00:42:42.559look at. Have you driven bythat facility, that Intel facility in Chandler,68500:42:42.679 --> 00:42:45.800the Intel one, Yeah, it'sPA's It's crazy. It's up close68600:42:45.840 --> 00:42:49.719and personal to it, and there'sjust you know, fifty thousand things going68700:42:49.800 --> 00:42:52.679up in the air, and itlooked like it was booming up there.68800:42:52.920 --> 00:42:57.519It is a city, but it'ssimply it's a city. There's no doubt68900:42:57.599 --> 00:43:00.679it's a it's a very impressive thing. But you know, all the lifts69000:43:00.719 --> 00:43:01.719are up there like you can't evenget it. You go up there and69100:43:01.760 --> 00:43:06.239there's it's just a ridiculous amount.There's labor there. I'll tell you that.69200:43:06.679 --> 00:43:09.199Oh, there's labor there. That'sone place they got labor there.69300:43:10.400 --> 00:43:15.639Yeah. I mean, for peoplewho don't realize that Taiwan semi conductor ship69400:43:15.679 --> 00:43:19.360is the largest US foreign investment inthe history and it's right here. Wow,69500:43:19.440 --> 00:43:22.039that's right. That's crazy. Soit's been a very nice thing to69600:43:22.079 --> 00:43:25.400add to our state. And justimagine the growth that's going to happen in69700:43:25.400 --> 00:43:29.400ten twenty years from now. Imean, we are the little California,69800:43:29.880 --> 00:43:32.719you know, because California is messingup big time, and we're one tsunami69900:43:32.760 --> 00:43:38.400away from being actual California. I'llbe with being on the beach b front.70000:43:39.320 --> 00:43:44.159Huma will just be a drive away. Now, it's all fun and70100:43:44.199 --> 00:43:46.440games. But let's talk about someof the regions in Tucsons that are the70200:43:46.480 --> 00:43:51.719hottest pockets for you. What arethe areas that are just you you can't70300:43:51.760 --> 00:43:54.400leave right now? Well, Imean a lot of people come to Tucson70400:43:54.440 --> 00:43:58.400and they all think foothills, foothills, foothills, But foothills is I70500:43:58.400 --> 00:44:00.639mean, we built thousands of homesof fail but as stilling, it's built70600:44:00.639 --> 00:44:05.079out, it's more customs, nowand whatnot. So if you're going away70700:44:05.079 --> 00:44:07.480from that, I ain't go.Valley of Moranda and Morana more so,70800:44:07.639 --> 00:44:09.480but they're both keeping a high,big place. So let's specify you.70900:44:09.800 --> 00:44:13.960Well, I think any Sill,Morana, north northwest Morana, I mean71000:44:14.000 --> 00:44:19.039that's that is northwest, yeah,and obviously Gladen Farms area. Gladen Farm,71100:44:19.079 --> 00:44:22.840I mean that's Dove Mountains. DoveMountains, gorgeous. Dove Mound's been71200:44:22.840 --> 00:44:25.000blowing up over the last ten years, like crazy golf courses all over that71300:44:25.039 --> 00:44:30.519place or something out there. Theonly thing they have is here to where71400:44:30.519 --> 00:44:31.679it works. They have a nicegirl, I'm a bar but yeah,71500:44:31.679 --> 00:44:36.719they don't have much out there thatthat can continue to get building. Gladen71600:44:36.719 --> 00:44:38.119Farms. You know when you sayyou have to go into town, that71700:44:38.159 --> 00:44:40.599means you love far. But they'refinally getting up there. I finally get71800:44:40.599 --> 00:44:45.880a fries out there. So that'shuge. Yeah, I know that's huge71900:44:45.960 --> 00:44:47.480right when I move into my house. Yeah, Actually talking to my parents72000:44:47.519 --> 00:44:50.440about it, it's like, lookat Todd, do you get to come72100:44:50.480 --> 00:44:52.519and just reap all the benefits thatwe've been waiting for. Yeah, all72200:44:52.559 --> 00:44:55.760your hard work in the southeast,the Southeast market Southwest. I'm like,72300:44:55.800 --> 00:45:00.119that market's going to the south becauseit's you can get more affordable land and72400:45:00.159 --> 00:45:05.000it's in you can build at adifferent rate down there. So are you're72500:45:05.000 --> 00:45:09.760talking vales huge? Also? Youknow anything off the ten really honestly going72600:45:09.800 --> 00:45:13.960down there is big. But I'veheard saw Rita's flow down their permits,72700:45:14.079 --> 00:45:16.440so Rita's tough. You know,the building municipalities, depending on what your72800:45:16.440 --> 00:45:22.679building, sometimes gets tough. Thereare certain markets, certain municipalities that are72900:45:22.679 --> 00:45:25.199easier than others that work with youa little bit more. There's some that73000:45:25.239 --> 00:45:30.400aren't that are very challenging. Stillso but but uh, I think the73100:45:30.480 --> 00:45:31.719new like it's getting back to whatyou said, the new up and coming73200:45:31.719 --> 00:45:35.880area is definitely or Valium Morana.Uh. You pay a little bit more73300:45:35.880 --> 00:45:38.679in there, but you can seewhat they're building. They have a certain73400:45:38.719 --> 00:45:43.239growth, and they don't let buildingslook out of place. They want them73500:45:43.320 --> 00:45:45.000upscale, they want them, youknow with Stone Veneer, they want them73600:45:45.039 --> 00:45:49.239looking nice and doing it the rightway, yes, right, whereas some73700:45:49.280 --> 00:45:52.519of these older cities they didn't knowwhat the right way was until they found73800:45:52.519 --> 00:45:54.519out. And now these cities thatare just forming now they can do it73900:45:54.519 --> 00:45:58.199all the right way. They don'thave to go back and fix things that74000:45:58.280 --> 00:46:00.159you know, City of two Soon'sdoing. Now. We had a lout74100:46:00.199 --> 00:46:02.920comedian Serta for a long time andSaith has done a lot really good job74200:46:02.920 --> 00:46:07.679in regards to growth down there,and they're growing like crazy too. And74300:46:07.679 --> 00:46:12.119they've done a lot of stuff withinfrastructure down there, so they're trying to74400:46:12.360 --> 00:46:15.840keep up and do that too.Yeah. I love that place. There's74500:46:15.880 --> 00:46:19.840not much to complain about down there. Yeah. So well, well again,74600:46:19.880 --> 00:46:21.719we appreciate you being on the show. You brought us a lot of74700:46:21.719 --> 00:46:24.719information today. Thanks for having meappreciate it. Yeah. Absolutely, One74800:46:24.760 --> 00:46:29.039more time for the Niner fans,just so you know, bang Bank nine74900:46:29.079 --> 00:46:34.199a gang. Let's go. Yeah, hopefully we need we need our six75000:46:34.280 --> 00:46:37.320The Chiefs win again. That's backto back, so that's not and no75100:46:37.360 --> 00:46:39.960one wants to back to back champion, So that's s Kelsey and Taylor Swift75200:46:39.960 --> 00:46:44.440ones. So yeah, we needour sixth ring. So that's where we're75300:46:44.440 --> 00:46:45.920going. We're about to put inwork. Yeah, it's gonna be a75400:46:45.920 --> 00:46:51.320fun thing. I'm getting the keysto my house on my birthday and my75500:46:51.400 --> 00:46:54.519mom, what a great birthday.B Yeah, that's a great I'm looking75600:46:54.559 --> 00:46:58.599forward to it. And I'm nowin Gladen Farms, and yeah, Gladen75700:46:58.639 --> 00:47:02.320Farms continues to be built down.It's a very interesting space in my opinion,75800:47:02.360 --> 00:47:07.280because of how little is out thereright now, but how crucial I75900:47:07.280 --> 00:47:08.679think it's gonna be. But howbig it's growing in the last five years.76000:47:08.679 --> 00:47:12.320You say how little out there lookingat five years ago, That's what76100:47:12.320 --> 00:47:14.320I mean. I mean, ifyou see the growth rate over the last76200:47:14.360 --> 00:47:16.199five years. Yeah, you've beenout to see out there. We didn't76300:47:16.199 --> 00:47:19.559even have a McDonald's. I rememberwhen that first McDonald's went up. It76400:47:19.599 --> 00:47:28.320was the coolest thing ever. Iremember I went to your house. That76500:47:28.480 --> 00:47:31.679was the exciting thing. All right. So we're coming up on the break76600:47:31.719 --> 00:47:35.920of the first hour. We appreciateeveryone listen. We'll be right back for76700:47:35.960 --> 00:47:39.440the second hour of the Money MattersShow. Thank you for listening. Welcome76800:47:39.480 --> 00:47:43.079back to the Money Matter Show.My name is Todd Glick and I'm here76900:47:43.079 --> 00:47:45.280with Sebastian Boorsini. Wanted to thankagain Tod Lick Scena for coming on the77000:47:45.280 --> 00:47:49.239show. It was a fun tohave him on talking about Holmes. Had77100:47:49.280 --> 00:47:51.960a lot of information for us.But as we're coming into the second hour,77200:47:52.039 --> 00:47:54.079let's bring up these performance numbers.On the week, dal Jones was77300:47:54.159 --> 00:47:57.679up two point one percent, Sand P was up two point five,77400:47:58.000 --> 00:48:00.599Nasdaq was up two point one,Russell two thousand, up one point three77500:48:00.599 --> 00:48:04.840in the RSP up one point four, So largely S and P with what77600:48:04.840 --> 00:48:07.599you're saying two point five on wherethe equal weight it only had one point77700:48:07.599 --> 00:48:10.719four. Those super six continue tolead the way and dominate the market as77800:48:10.719 --> 00:48:15.079they did in twenty twenty three.We did have all time highs hit for77900:48:15.159 --> 00:48:20.079the DW Jones at thirty eight sixfive four and the S and P five78000:48:20.199 --> 00:48:22.840hundred at forty nine fifty nine.So it's always nice to see an all78100:48:22.840 --> 00:48:27.760time high on a sheet because itmeans people are making money, right.78200:48:27.920 --> 00:48:32.119So we continue to go through thisearning season and it has been fun because78300:48:32.199 --> 00:48:35.880this week it was all about thebig companies. So we had Google,78400:48:36.320 --> 00:48:38.760we had Meta, we had Amazon, and we had Apple. We already78500:48:38.760 --> 00:48:43.639talked about Amazon, So let's gointo Apple. Okay. Apple earnings of78600:48:43.719 --> 00:48:45.920two dollars and eighteen cents per shareand revenue of one hundred and twenty billion78700:48:45.960 --> 00:48:51.920both beat fact set consensus. Fiscalquarter one iPhone revenue of sixty nine point78800:48:51.920 --> 00:48:54.480seven billion came in ahead of consensusof sixty seven point nine billion. It78900:48:54.519 --> 00:48:58.800was up year over year. I'mpretty impressed with that, just because a79000:48:58.800 --> 00:49:00.800lot of people were talking about,you know, the China's slowing economy.79100:49:00.880 --> 00:49:05.400Well know what they said. Youremember China said you can't buy Apple phones79200:49:05.400 --> 00:49:07.920if you're working for the Chinese guy. Yeah. Yeah, So everyone thought,79300:49:07.960 --> 00:49:09.519oh, this is gonna be abig impact for the Chinese market for79400:49:09.559 --> 00:49:13.840Apple, and they're gonna slump onsales. Nobody cares. Didn't look like79500:49:13.840 --> 00:49:16.320it right, looked like they didit fine. But to that point,79600:49:16.400 --> 00:49:22.159China revenue felt did fall thirteen percentyear over year, but not as much79700:49:22.159 --> 00:49:23.880as expected. Obvious partly due tothe strong dollar, I think, he79800:49:23.960 --> 00:49:28.800said, and then he emphasized thecompany's strength in iPhone popularity there, even79900:49:28.840 --> 00:49:30.199with what you just said. Yeah, at the end of the day,80000:49:30.239 --> 00:49:34.440the great a good product's gonna winover a product that's forced to you,80100:49:34.519 --> 00:49:37.880right, right, We've seen thatmany times. Good unless you live in80200:49:37.239 --> 00:49:40.800obviously China is a very authoritarian regime. You kind of forced to do it.80300:49:40.960 --> 00:49:44.199If you have a choice, you'regonna pick up a better product if80400:49:44.239 --> 00:49:45.599you can. Talking about those thingsthat Apple's coming out with, I mean80500:49:45.599 --> 00:49:49.960they just came out with their VisionPro. This Apple car was that stock80600:49:50.079 --> 00:49:55.320that's rallied what thirty percent today,I'll pull it up. It is something.80700:49:55.679 --> 00:50:00.000But essentially they produced the actual technologybehind the Vision Pro, like the80800:50:00.079 --> 00:50:06.760actual glasses part of it. CopinCorporation is what they is, what they're80900:50:06.800 --> 00:50:09.239called, And so they were upon some noise from some contracts that they81000:50:09.239 --> 00:50:13.079were awarded and people are starting tothink, you know what, maybe Apple's81100:50:13.079 --> 00:50:16.679going to buy this thing out.I would increase your balance sheet quite a81200:50:16.719 --> 00:50:22.639bit. Yeah, certainly. Copinis a company that engaged in the development,81300:50:22.639 --> 00:50:27.079manufacturing, and sale of wearable technologies, which include components and systems such81400:50:27.119 --> 00:50:30.400as the one like l O LEDdisplays that you that are used in the81500:50:30.400 --> 00:50:36.079the Vision Pro. So that's whythat company and any type of company that81600:50:36.119 --> 00:50:39.679has production inputs into this Vision ProI think is going to have a lot81700:50:39.719 --> 00:50:45.480of success moving forward. So,Todd, do you remember when Dean and81800:50:45.519 --> 00:50:47.800Dave were talking to us about howyou know there's going to be companies out81900:50:47.800 --> 00:50:52.159there that you think are never goingto go down, right? So as82000:50:52.320 --> 00:50:54.840I think they One of the bigones that they were talking about was IBM,82100:50:55.159 --> 00:51:00.239right, and we talked about howthey weren't really implementing any new things82200:51:00.280 --> 00:51:04.400within their system. They didn't knowhow to make money in any different ways.82300:51:04.440 --> 00:51:07.599So Apple, they got a wholebunch of things coming out. I82400:51:07.920 --> 00:51:10.079encourage any of the listeners out therethat if you haven't seen that video for82500:51:10.119 --> 00:51:14.440the Vision Pro headset, you gowatch that. Yeah, it looks kind82600:51:14.480 --> 00:51:15.960of ridiculous when you're wearing it rightnow. It's a big, giant,82700:51:16.039 --> 00:51:20.239you know thing. It's kind oflike you're wearing snowboard goggles in a sense.82800:51:20.880 --> 00:51:23.519But where are we going to gofrom here? Yeah? I mean82900:51:23.599 --> 00:51:27.000you talked about the car insurance premiums. You talked too, well, let's83000:51:27.039 --> 00:51:29.719paying the picture for us, rightright? I mean, what this Vision83100:51:29.760 --> 00:51:34.000Pro is is not a virtual realityheadset like the one that came out with83200:51:34.119 --> 00:51:37.679Meta in Oculus. Okay, that'snot what we're talking about. It's actually83300:51:37.679 --> 00:51:40.280something called augmented reality. It's notthis third world that you go buy property83400:51:40.320 --> 00:51:44.440in. It's fake. Yeah,it's not this virtual world that's called VR.83500:51:44.719 --> 00:51:49.039Right, So that's what Meta produced. It's called arkay augmented reality.83600:51:49.119 --> 00:51:52.039Augmented reality means it's true reality,but then you see stuff on top of83700:51:52.119 --> 00:51:58.320reality that isn't really there. Right. Imagine an iPhone notification popping up while83800:51:58.360 --> 00:52:00.639you look at a tree or somethinglike that. That's augmented reality. Now,83900:52:00.679 --> 00:52:05.119these vision programs, but some peoplemight love it. Well, let's84000:52:05.159 --> 00:52:07.800think about this, right, Let'slet's really think about this, because these84100:52:07.920 --> 00:52:12.119vision pros what they're gonna be isyou can look at a picture by just84200:52:12.159 --> 00:52:15.039tapping your fingers fingers together, okay, sliding with your hands, sliding with84300:52:15.119 --> 00:52:19.840your hands. You can play avideo with your hands, you can scroll84400:52:19.880 --> 00:52:23.039with your eyes. And then whenyou really extrapolate what this means for the84500:52:23.119 --> 00:52:29.840future, technology doesn't get bigger,it goes smaller and smaller and smaller,84600:52:30.119 --> 00:52:35.000right, And so what you seewith what potentially is this huge snow goggle84700:52:35.079 --> 00:52:38.400thing that's very abrasive and the otherone really wants to that turns into just84800:52:38.480 --> 00:52:44.360sunglasses, turns into just contacts.Maybe it's just a head piece, a84900:52:44.360 --> 00:52:47.199little bluetooth headphone looking thing. Maybeit looks like a hearing aid. Whatever85000:52:47.280 --> 00:52:51.880it may be, it's going tobe small enough to not really have any85100:52:51.920 --> 00:52:54.840impact on your day to day life, but actually have a huge impact on85200:52:54.880 --> 00:52:58.519your every day, every day life, because you're gonna be able to see85300:52:58.519 --> 00:53:01.320the world in so much different levels. I mean, you're gonna be able85400:53:01.760 --> 00:53:06.400to pay for things by thinking aboutit, by looking at it. You're85500:53:06.400 --> 00:53:07.599not gonna have a wallet. You'renot gonna have a material wallet. What85600:53:07.679 --> 00:53:13.679did this iPhone do? It madethings immaterial Your calculator, your camera,85700:53:14.079 --> 00:53:19.599your phone, contact list, allyour games right, all your pictures,85800:53:19.639 --> 00:53:22.199your catalogs, your phone albums.Where are they now? From one thing85900:53:22.280 --> 00:53:27.719in your pocket? It's called immaterialization. Blockbuster, what happened to them?86000:53:28.119 --> 00:53:32.519They immaterially got destroyed by someone that'simmaterial Netflix all right, Sears? What86100:53:32.599 --> 00:53:36.000happened to them? They thought,oh, you know, brick and mortars86200:53:36.000 --> 00:53:38.239the way to go. They gotdestroyed by an immaterial company called Amazon.86300:53:38.599 --> 00:53:45.239Okay, technology leads to immaterial andit takes all these very expensive building blocks86400:53:45.239 --> 00:53:51.119of reality and makes them into thesecloud based Think about libraries, that's where86500:53:51.119 --> 00:53:53.840we stored our information. Where arethey now in your phone? The cloud?86600:53:54.400 --> 00:53:58.840Even better, it's not even areal That's what I'm talking about,86700:53:58.920 --> 00:54:01.559right. We are making these thingsthat we do on the every day that86800:54:01.599 --> 00:54:07.559are so sometimes have a lot offriction involved, and they're gonna become less86900:54:07.760 --> 00:54:12.360friction and it's gonna produce so muchbenefits for society. It's awesome to create87000:54:12.400 --> 00:54:15.679a lot more problems for society.That's what technology brings. It's not just87100:54:15.800 --> 00:54:17.519good. It is bad. AndI'm not saying it's all gonna be fun87200:54:17.519 --> 00:54:22.119in games. Will there be securityrisks? Absolutely? Will there be risk87300:54:22.199 --> 00:54:25.480with governments taking more control than theyshould have. Absolutely. I mean,87400:54:25.559 --> 00:54:30.159technology is not a two one waystreet. It is a two way street,87500:54:30.199 --> 00:54:31.079and we have to be realized ofthat. But we can't be scared87600:54:31.119 --> 00:54:35.119of it either, because where weare today is because of all the technology87700:54:35.159 --> 00:54:38.440we've produced. And it's really excitingto see the things Apple is producing.87800:54:39.239 --> 00:54:45.880Because Steve Jobs' vision for the entireiPhone was just that making something that had87900:54:45.960 --> 00:54:49.920so many components and put it intoone device, and that was that iPhone88000:54:49.960 --> 00:54:53.119smartphone, And now it really makesus a cyborg if you think about it.88100:54:53.280 --> 00:54:57.280People are so worried about I'm nevergonna put a neurolink in my head.88200:54:57.360 --> 00:55:00.480It's like this iPhone right now,or any smart phone you have,88300:55:00.599 --> 00:55:02.599it's an extension of you that ispart of your identity. And anyone who88400:55:02.639 --> 00:55:06.599says that it's not go a yearwithout that phone and see how it makes88500:55:06.639 --> 00:55:08.880you feel right right at the endof the day. It is a part88600:55:08.880 --> 00:55:14.440of many humans identities at this point, and we are pseudoficial cyborgs because of88700:55:14.480 --> 00:55:16.480it. And that trend isn't goingto slow down. Talk a little bit88800:55:16.480 --> 00:55:20.519about that insurance premium that it wasjust an idea that I thought it was.88900:55:20.679 --> 00:55:23.360It's a fascinating idea because A BlackMirror is a very famous show on89000:55:23.440 --> 00:55:30.519Netflix who had actually an episode aboutan insurance company theoretically being able to prove89100:55:30.559 --> 00:55:32.840all their insurance claims. Because imagineif we had a world where everyone had89200:55:34.199 --> 00:55:37.320basically a recording those vision pros.But in yeah, imagine everyone has vision89300:55:37.320 --> 00:55:40.800pros and the vision for pro recordseverything you do. So if you ever89400:55:40.840 --> 00:55:45.880had a problem with insurance, cominglike how did this car accident happen?89500:55:45.039 --> 00:55:49.119Well, let me see your visualtrouble, let me see your history.89600:55:49.360 --> 00:55:52.519Oh, you give me permission tosee your vision. Pro your insurance premiums89700:55:52.519 --> 00:55:55.679become cheaper because we have more informationthan we otherwise would have, right,89800:55:55.760 --> 00:55:59.440I mean, think about what Progressiveis doing with put plugging that thing into89900:55:59.480 --> 00:56:02.800your car so they can understand.They're like, why wouldn't you want a90000:56:02.920 --> 00:56:07.039unique price? Why do you wantto have this average price that's based on90100:56:07.119 --> 00:56:12.920the average person in your demographic.Why wouldn't you want something that's specifically tailored90200:56:12.960 --> 00:56:15.960to you. Well, if you'resomeone who drives crazy, obviously you don't90300:56:15.960 --> 00:56:20.239want that. But that's the kindof thing that's really interesting because insurance premiums90400:56:20.800 --> 00:56:23.199any insurance company, right, Oh, you said you're putting in this claim,90500:56:23.280 --> 00:56:28.000prove it. But not only that. Imagine murder cases, right,90600:56:29.039 --> 00:56:32.199any any criminal case you would beable to then if you find the person90700:56:32.280 --> 00:56:36.000or find the headset, be ableto put it. Imagine if the headset90800:56:36.000 --> 00:56:38.360automatically uploads to the cloud, soyou don't even need the original headset,90900:56:38.639 --> 00:56:43.599right. I mean the type ofstuff that could be coming out with this91000:56:44.519 --> 00:56:47.239is game changing. Imagine what thiscould lead in twenty years, That's what91100:56:47.280 --> 00:56:50.880I mean. I mean, thisiPhone eventually will not be in your pocket91200:56:50.880 --> 00:56:52.719anymore because it's going to be inthe form of your vision pro Super cool91300:56:52.719 --> 00:56:55.159to think about. And I gotto give a little bit of a shout91400:56:55.159 --> 00:57:00.000out to my business school, Eler. You know you're at the University of91500:57:00.039 --> 00:57:04.119Arizona. I remember my first year, before I even started classes, I91600:57:04.119 --> 00:57:07.679walked in and I was looking arounddollar the halls and they had this new91700:57:07.679 --> 00:57:10.039building or this new little classroom andwhat did it say on it back in91800:57:10.079 --> 00:57:19.079twenty nineteen May of twenty nineteen Artificialintelligence, right, And so I remember91900:57:19.119 --> 00:57:22.400towards the end of my time thereat Eller, it started shifting towards this92000:57:22.480 --> 00:57:27.039augmented reality. How could we goabout this? You know? Where where's92100:57:27.079 --> 00:57:30.039this? Where's there's where is thereareas to monetize this, you know?92200:57:30.119 --> 00:57:35.239And so you see it in Ithink Amazon or any of the Living or92300:57:36.360 --> 00:57:37.760like if you go to buy acouch or something like that, you are92400:57:37.840 --> 00:57:40.880able to put that couch within yourhome if you want right, and not92500:57:40.960 --> 00:57:45.239only that, Imagine a world whereyou know, you go up to buy92600:57:45.239 --> 00:57:49.559something you shouldn't buy, and thena big notification pops up says, hey,92700:57:50.320 --> 00:57:52.760before you buy this, just realizeyou're account going to go negative if92800:57:52.800 --> 00:57:54.239you do. How many people dothat? Stop? Oh? If you92900:57:54.280 --> 00:57:57.960buy this is how much interest isgoing to accrue over the next twenty years93000:57:58.000 --> 00:58:00.079if you don't pay it off.Like those little things could be such game93100:58:00.159 --> 00:58:05.960changers. Imagine the level of consciousnessthat can be added to humans day to93200:58:06.039 --> 00:58:07.920day life because a lot of timespeople just go through life and they don't93300:58:07.960 --> 00:58:13.239realize all the signs that are comingto them and they're just not reading them.93400:58:13.639 --> 00:58:15.679This technology could really help a lot, could also hurt a lot.93500:58:15.719 --> 00:58:19.239And not saying I know, there'sa lot of listeners saying you know,93600:58:19.320 --> 00:58:22.280this sounds scary. Sounds scary,and I understand this. It does.93700:58:22.480 --> 00:58:25.800I understand that, but it's alsovery exciting. But what's even scarier is93800:58:25.840 --> 00:58:30.039not being able to adopt it andbeing so scared that I you know,93900:58:30.119 --> 00:58:31.719yes, just don't be closed mindabout of it. This is where the94000:58:31.760 --> 00:58:37.519world's going only fear fear itself.Let's talk about next we have Meta Meta.94100:58:37.519 --> 00:58:40.400Oh my goodness, what a weekit had, What a week,94200:58:40.519 --> 00:58:44.639What a year it's had. Ithink last year closed and I want to94300:58:44.679 --> 00:58:46.239say, just off the top ofmy head, around one hundred and twenty94400:58:46.280 --> 00:58:50.199eight dollars this time last year.What did it close out today? Four94500:58:50.320 --> 00:58:53.000seventy for eighty. It's just ridiculous. It's going really hard. Earnings of94600:58:53.079 --> 00:58:57.039five dollars and thirty three cents pershare, in revenue of forty point one94700:58:57.039 --> 00:59:00.840to one billion, both easily beatthe facts that can say this revenue rose94800:59:00.880 --> 00:59:04.360twenty four point seven year over year. And this is all Admidst of all94900:59:04.760 --> 00:59:08.400amid Zuckerberg, you know, justgetting absolutely destroyed for putting pouring so much95000:59:08.400 --> 00:59:13.199money into these new yeahs. Andalso he was just on Capitol Hill and95100:59:13.199 --> 00:59:17.800got destroyed by the congressmen and womenthat were tested persecuting. I don't know95200:59:17.840 --> 00:59:21.360what they call it. But atthe end of the day, what happened95300:59:21.360 --> 00:59:23.840with METAW was last year they hada real issues with spending too much money95400:59:23.840 --> 00:59:29.519on some of these VR spaces andthen profit centers of not making profit right,95500:59:29.559 --> 00:59:30.880so they had to cut that out. They cut a lot of their95600:59:30.920 --> 00:59:35.800workforce, and they basically said thisyear is going to be based on being95700:59:36.320 --> 00:59:39.599physically responsible. Yeah, and theydid just that. And not only that,95800:59:39.800 --> 00:59:43.800what happened. I believe they offereddividen Yeah, I was gonna say,95900:59:43.840 --> 00:59:45.480what else do you think did?They initiated a fifty cent cash David96000:59:45.599 --> 00:59:50.840und per sure of outstanding stock payableMarch twenty six. It's a fifty million96100:59:50.840 --> 00:59:53.960dollars fifty billion dollars buy back planincrease. And I saw I heard a96200:59:54.000 --> 00:59:59.039really interesting comment on a CNBC talkinghead about why would they do this?96300:59:59.280 --> 01:00:01.360Right? And one of the megacapshave started to do this now, and96401:00:01.519 --> 01:00:06.760I think the reason they're doing itis to show responsibly that they are not96501:00:06.800 --> 01:00:08.760going to be spending on things thataren't going to bring them money. So96601:00:08.800 --> 01:00:13.320there gets to a point when youmake so much money out of business that96701:00:13.400 --> 01:00:16.320if you can't find where to putthat money to compound at the same rate96801:00:16.360 --> 01:00:20.119your business is growing at, whatdo you do make your investors happy?96901:00:20.199 --> 01:00:23.800Give it back to your investors,right, because then that makes them more.97001:00:24.960 --> 01:00:29.159They look at it saying you're notgoing to be irresponsible with me giving97101:00:29.159 --> 01:00:30.440you extra cash. You potentially arejust going to give it, right,97201:00:30.440 --> 01:00:35.280back. So it's one hundred percentthat they did this to build rapport.97301:00:35.559 --> 01:00:37.920Yeah, that's it. That's it. And so they did a great job97401:00:37.920 --> 01:00:42.480in the stock rallied on it.Yeah, and you know, they probably97501:00:42.480 --> 01:00:45.079did a lot of buybacks as wellwhen they were at the eighty eight hundred97601:00:45.079 --> 01:00:47.280dollars level, and they probably makea lot of money on those buybacks.97701:00:47.360 --> 01:00:52.280I'm sure they're killing it. Anotherearnings This one isn't a mega cap or97801:00:52.320 --> 01:00:55.480anything like that, but Novo,Yeah, I had a great earnings release97901:00:55.519 --> 01:00:58.840and I don't really want to gotoo much into the numbers. They did98001:00:58.840 --> 01:01:00.639good, but it's this is morefor Dave. I hope you're listening to98101:01:00.719 --> 01:01:06.199Dave. So we've we talked aboutNovo, and we've talked about Eli Lilly,98201:01:06.280 --> 01:01:09.280these anti obesity diabetes drugs, andwe've gotten them right, we've gone98301:01:09.280 --> 01:01:15.960them wrong. I just want tosolidify what they have Eli Lilly. They98401:01:15.960 --> 01:01:19.760have something called zet Bounce. Thisis their drug for obesity. They also98501:01:19.800 --> 01:01:24.039have Manjaro, they have a drugfor diabetes. These are all turned and98601:01:24.280 --> 01:01:29.840pardon me if I'm pronouncing this incorrectly, but it's turned zeppetites. Okay,98701:01:29.840 --> 01:01:32.760this patents for these drugs, Andin twenty thirty nine Novo, you have98801:01:32.840 --> 01:01:37.599we GOV that's that's for obesity.You have Ozepic, which is for diabetes.98901:01:37.159 --> 01:01:40.400Okay, these are semig glutides,these patents, and in twenty thirty99001:01:40.400 --> 01:01:45.960three, So I'm just really ata loss, and I know We've talked99101:01:45.960 --> 01:01:50.039about this so many times before,is why are these compound pharmacies allowed to99201:01:50.079 --> 01:01:53.119do this? Why it doesn't whyare they allowed to change something? And99301:01:53.239 --> 01:01:58.320ad salt, you know, theythese companies spend billions of dollars are R99401:01:58.360 --> 01:02:01.119and D. I would be soupset if I spent this much money on99501:02:01.239 --> 01:02:06.519R and D and there's you know, fifty other replicates on well Fox News99601:02:06.679 --> 01:02:08.880the Devil's advocate to that point,if it's so easily replicatable, then it99701:02:08.920 --> 01:02:12.400probably shouldn't have been patented in thefirst place, because the whole point of99801:02:12.400 --> 01:02:15.960a patent is saying that it's notreplicatable. But that's not true. In99901:02:15.960 --> 01:02:19.400the pharmaceutical industry, it is.I mean, you're the way you get100001:02:19.400 --> 01:02:22.239your patent's based on your compounds,and so something that can't basically be changed,100101:02:22.280 --> 01:02:24.880then how special is your compound?No, but any company that gets100201:02:25.480 --> 01:02:30.320any pharmaceutical drug. They could justtake that drug and backwards engineer it and100301:02:30.320 --> 01:02:31.960make it. You know, ohyou can't if it's the same way.100401:02:32.119 --> 01:02:36.239You can't make a patented drug theexact same way. That is a patent100501:02:36.280 --> 01:02:39.639infringement. But technically, if allthese compound farmers either doing they're changing three100601:02:39.719 --> 01:02:44.559or four ingredients, then they aretechnically playing by the rules. It's not100701:02:44.639 --> 01:02:49.480the exact same patented drug, it'ssomething else. But it brings me back100801:02:49.480 --> 01:02:52.400to my point. Let's talk abouteloquists. That's a drug adfiser's you know,100901:02:52.440 --> 01:02:57.639you don't see anybody else advertising forwhatever that type of drug is.101001:02:58.039 --> 01:03:00.920You don't see it. Well,Also, there's two levels of this one101101:03:00.440 --> 01:03:05.960the demand two. How easy isit replicatable? What do you mean with101201:03:06.000 --> 01:03:08.599the demands the diff for both drugsor it's just ridiculous. Okay, but101301:03:08.679 --> 01:03:15.199one may be easily more replicatable.Okay, okay, So creating a what's101401:03:15.239 --> 01:03:19.360the other one, lizit was theone you just mentionedde no no. The101501:03:19.800 --> 01:03:23.159the other one eloquist eloquest. Ifeloquist is a lot more money to reproduce101601:03:23.199 --> 01:03:27.559in a different compound pharmacy, right, it's entry into the market. And101701:03:27.760 --> 01:03:30.880then that's why it is interesting.I mean, if it's it's easily replicatable101801:03:30.920 --> 01:03:36.119drug, that's why not to mentionso that on that point of turs epetite101901:03:36.199 --> 01:03:39.039versus semi glutide serves epetites, that'scoming out with a bunch of a bunch102001:03:39.039 --> 01:03:43.519of studies. That's just way moreefficient than the semic glutides, and it's102101:03:43.559 --> 01:03:45.239a cause for concern for Novo.But at the same time, you also102201:03:45.320 --> 01:03:51.519need a lot more milligrams and dosageof the turs eppetite, which causes me102301:03:51.559 --> 01:03:54.039to believe all in all, right, now it seems that Eli Lilly potentially102401:03:54.039 --> 01:03:58.320has the better one. Yes,but like I'm saying, you need more102501:03:58.360 --> 01:04:02.079milligrams of the tursuppetite, which soundsbetter for you, Lily if you think102601:04:02.079 --> 01:04:04.440about it. Yes, but doesit cost more? You know, does102701:04:04.440 --> 01:04:09.559it feed into their margin? It'sprobably better for you. I like your102801:04:09.559 --> 01:04:12.960devil's out played here. I understandwhat you're saying. Let's talk about Google.102901:04:13.000 --> 01:04:16.800Google reported earnings. They beat expectations, but the market didn't care.103001:04:16.920 --> 01:04:20.400They didn't have the guidance they werelooking for, and the stock did drop103101:04:20.760 --> 01:04:26.159on the week. It actually hada pretty It finished up one hundred and103201:04:26.199 --> 01:04:33.440forty three dollars a share. Sonot having the performance report, resurgence that103301:04:33.559 --> 01:04:38.400was looking for kind of has comeback in. Microsoft tell you that No,103401:04:38.599 --> 01:04:43.960No, Meta and Amazon are theones that absolutely exploded higher this week.103501:04:44.679 --> 01:04:46.960So now I want to talk alittle bit about our newsletter. We103601:04:47.000 --> 01:04:51.159have our newsletter that comes out everymonth on the first of the month,103701:04:51.199 --> 01:04:54.920well around the first of the month. You can get signed up on that103801:04:54.920 --> 01:04:59.679newsletter by going to our Greenberg Financialdot com website and at the bottom of103901:04:59.679 --> 01:05:02.480the page you can sign up forthe newsletter by just putting your email in.104001:05:02.719 --> 01:05:05.280You can always go to our websiteto learn more about what we're going104101:05:05.400 --> 01:05:09.760and what we're doing here at thefirm. We have all of our social104201:05:09.840 --> 01:05:14.599media's tagged to the website. OurYouTube, we constantly are putting new updates104301:05:14.599 --> 01:05:19.000on there. I do my weeklymarket summary. Sebastian always post our TV104401:05:19.119 --> 01:05:25.960shows that air on Sundays. OurTV shows air on NBC the air at104501:05:26.079 --> 01:05:30.320nine am and as well as tenthirty pm. And if you ever missed104601:05:30.360 --> 01:05:32.239one of those and you want tocheck it out, you want you didn't104701:05:32.239 --> 01:05:34.719want to miss that, you couldgo to our YouTube page and yeah,104801:05:34.760 --> 01:05:40.360they're all there. So certainly goto our YouTube page and all of our104901:05:40.639 --> 01:05:43.599You can follow us on Facebook,Instagram, LinkedIn, Twitter or whatever you105001:05:44.119 --> 01:05:46.920like or use. We're on allof them. Not also mentioning we have105101:05:47.039 --> 01:05:51.239our radio shows that we do eachSaturday at six thirty, twelve and twelve105201:05:51.239 --> 01:05:56.480thirty, which are the audio formatof our TV shows. We're actually going105301:05:56.559 --> 01:05:59.880to be going up in March tofilm some new TV shows, so excited105401:06:00.000 --> 01:06:01.840about that. But going back toour newsletter, I wrote a piece this105501:06:01.880 --> 01:06:08.320week about five ways to maximize yourretirement savings for tax efficiency. So I105601:06:08.360 --> 01:06:11.360think this is a good one togo into as we enter tax season,105701:06:11.519 --> 01:06:15.480but also helping people realize some ofthe potential areas they are missing out on105801:06:15.480 --> 01:06:18.039what where they could be saving sometaxes right or at least being more efficient105901:06:18.079 --> 01:06:21.880with them. So the first oneI like to talk about is tax advantage106001:06:21.880 --> 01:06:27.239accounts. These are very simple fourto one k's iras, and there's different106101:06:27.280 --> 01:06:30.760types. You have the traditional fourto one k, which is funded by106201:06:30.760 --> 01:06:33.320pre tax dollars. That means thatmoney's going in before it hits your paycheck,106301:06:34.000 --> 01:06:36.559but when you take it out onceyou finally do retire, you're going106401:06:36.599 --> 01:06:41.559to pay income tax rate whatever thatincome tax rate is. Then, same106501:06:41.559 --> 01:06:45.239thing happens with iras. It's pretax money, so you actually get a106601:06:45.320 --> 01:06:48.199deduction because obviously you've already got yourpaycheck. If you're putting into an IRA,106701:06:48.599 --> 01:06:51.880you'll get a deduction on your incomeand that's how you save on that.106801:06:53.320 --> 01:06:55.440Now, there's other types of fourto one k's. It's something called106901:06:55.440 --> 01:06:58.960a wroth four oh one K,and that's tax differently because that money is107001:06:58.960 --> 01:07:01.320actually going to go into that accountpost tax. Mean you've already paid the107101:07:01.360 --> 01:07:03.920taxes on it, but then whenit's in that account, it's going to107201:07:03.960 --> 01:07:08.400grow tax free, and when youfinally do take it out, it's also107301:07:08.480 --> 01:07:12.039tax free. Same thing with thewroth iray. The only thing different is107401:07:12.079 --> 01:07:15.239it comes after your paycheck. You'regonna put it in there. There's no107501:07:15.360 --> 01:07:17.280tax deduction the first year, butit grows tax free, and then when107601:07:17.280 --> 01:07:19.800you finally take it out, it'stax rushing too. Todd, I have107701:07:19.840 --> 01:07:25.039a lot of friends that are aroundour age that have trouble with investing in107801:07:25.079 --> 01:07:29.480wrap, holding their money hostage ina roth IRA because they can't take it107901:07:29.519 --> 01:07:33.320out until they're no older. Yeah, explain to them a little bit about108001:07:33.320 --> 01:07:36.840that tax benefit. Yeah. Well, let's first of all say that they're108101:07:36.840 --> 01:07:40.760wrong. Okay, you put onethousand dollars in a roth iray, you108201:07:40.760 --> 01:07:43.840can take a thousand dollars out wheneveryou want. You can always take out108301:07:43.880 --> 01:07:46.320the principle you take out the gains. You can't take out the gains,108401:07:46.519 --> 01:07:49.360all right. There are some provisionsyou can take out the gains if you108501:07:49.360 --> 01:07:53.280wait five years and certain things,but that's too granular for this. But108601:07:53.480 --> 01:07:58.239what I mean by that is,I know for what really matters is the108701:07:58.280 --> 01:08:00.840wroth irays are the best used tobe when you're young, because you're growing108801:08:00.840 --> 01:08:04.119tax free. There's no way youare going to get tax savings in an108901:08:04.159 --> 01:08:08.320IRA that are going to come closeto the potential tax savings you would see109001:08:08.519 --> 01:08:12.639after forty years of tax free growth. It's just not comparable. So anyone109101:08:12.679 --> 01:08:16.159even below the age of fifty,I normally say do the roth unless they're109201:08:16.159 --> 01:08:18.600in a high really high income.I was gonna say, there's there there109301:08:18.680 --> 01:08:21.079might be a point, you know, take advantage of it while you're young,109401:08:21.119 --> 01:08:25.239that you could invest. I thinkwhat for twenty twenty four seven thousand109501:08:25.279 --> 01:08:29.600dollars now a year yep into thisroth Ira. There's there might be a109601:08:29.640 --> 01:08:31.159time that you and your spouse aremaking too much money and you go over109701:08:31.159 --> 01:08:34.760that threshold and cannot invest into thisanymore. That's stripped away. Well,109801:08:35.000 --> 01:08:38.039if you want those games, yougot to do it through your four one109901:08:38.119 --> 01:08:41.359K or open up a brokerage accountand get tax when you pull it out.110001:08:41.439 --> 01:08:43.560Yeah. Well, it's always funnywhen you hear people saying like,110101:08:43.800 --> 01:08:46.239I can't spend, I can't affordto invest, and they're making eighty thousand110201:08:46.239 --> 01:08:49.119and three years later they're married,they're making you know, two hundred and110301:08:49.159 --> 01:08:51.520forty thousand combined, and they stillcan't find on any to invest, and110401:08:51.520 --> 01:08:55.600it's like what happened? You know? Eventually you have to sacrifice. It110501:08:55.600 --> 01:08:58.199doesn't feel good, okay, goingto working out at the end of the110601:08:58.279 --> 01:09:00.880day, it doesn't feel no onewants to do. There might be a110701:09:00.920 --> 01:09:01.760couple of days you feel good.Yeah, yeah, let's go have some110801:09:01.760 --> 01:09:04.560fun at the gym. Most ofthe time it sucks. No one wants110901:09:04.600 --> 01:09:08.199to do the hard things in life, but it sets you up for the111001:09:08.239 --> 01:09:12.920future. If you are responsible todayand you delay your instant gratification. The111101:09:13.000 --> 01:09:15.600gratification at the end of the roadfeels so much better. It's not about111201:09:16.000 --> 01:09:19.439the finish line, it's about thejourney. Look at the long term,111301:09:19.520 --> 01:09:23.800you know, just don't always belooking at tomorrow. You gotta think a111401:09:23.800 --> 01:09:26.479little bit ahead. Yeah, Imean, you want to live life like111501:09:26.520 --> 01:09:29.119it's your last, but also understandthat you could possibly live for the next111601:09:29.199 --> 01:09:33.079forty right. Another thing I liketo talk about Roth Iray conversions. A111701:09:33.119 --> 01:09:38.000lot of client in here who wassaying, you know how to Roth conversions.111801:09:38.000 --> 01:09:40.159I didn't know if it made sensefor me, and then we went111901:09:40.199 --> 01:09:45.319into the software and I found reallytwo things in my opinion. One,112001:09:45.479 --> 01:09:48.680if you're before rm DS, there'spotentially opportunities to save on taxes with Roth112101:09:48.720 --> 01:09:53.800conversions. After r and DS,I have not seen many scenarios where it112201:09:53.800 --> 01:09:57.079makes sense to do or Roth conversionthat's normally seventy three at this point for112301:09:57.119 --> 01:10:00.600people. I also say this,anyone low fifty rock conversions can make a112401:10:00.640 --> 01:10:03.479lot of sense because we're talking aboutthe same thing tax free growth. Right112501:10:03.600 --> 01:10:06.600over a twenty year period, youcan beat whatever taxes you could have saved112601:10:08.079 --> 01:10:12.119on the jump. But after youget fifty, A lot of financial advisors,112701:10:12.399 --> 01:10:15.479they differ in opinions. That's wherethe financial plan comes in because I112801:10:15.520 --> 01:10:18.319cannot tell you whether it's going tomake sense for you or not. This112901:10:18.359 --> 01:10:23.600particular individual, he wasn't showing alot of income when he retired, meaning113001:10:23.720 --> 01:10:26.000he didn't turn on sold security toyou. He's not gonna turn on sold113101:10:26.000 --> 01:10:29.119security twenty seventy, so he's notshowing any income there. He doesn't have113201:10:29.159 --> 01:10:32.479any pensions, so technically in retirementhe's not showing any income. So in113301:10:32.479 --> 01:10:36.079those scenarios, we can be reallystrategic on how much money we're going to113401:10:36.119 --> 01:10:40.119put in these rock conversions, andwe can save a whole bunch of taxes113501:10:40.119 --> 01:10:43.079before those r and ds hit andbefore the solid security starts adding to our113601:10:43.079 --> 01:10:46.039earned income. Those are the typeof things that the financial plan gives you.113701:10:46.119 --> 01:10:49.199We can't do that unless we havethe financial plan. Okay, tax113801:10:49.199 --> 01:10:53.159efficient asked thet allocation. It's somethingthat we really help with, and that's113901:10:53.199 --> 01:10:57.720all about making sure that certain accountsthat are tax efficient have certain investments to114001:10:57.760 --> 01:11:00.840have high growth. If you canhave a high growth, if you have114101:11:00.880 --> 01:11:03.079a large capital gain and a taxefficient account, that's better than having a114201:11:03.199 --> 01:11:08.399high capital gain in a tax inefficientat tax account like a brokerage account.114301:11:08.439 --> 01:11:12.039For example. Number four is harvestingtax losses, again something we do.114401:11:12.720 --> 01:11:14.920That's something where we look at theend of the year try to see whether114501:11:15.039 --> 01:11:19.199or not it makes sense to potentiallytake some of those tax loss harvests into114601:11:19.239 --> 01:11:23.239the next year and how that couldbenefit us and lack. Lastly, I114701:11:23.359 --> 01:11:27.880talk about required minimum distribution planning rand ds. They can also be qualified114801:11:27.960 --> 01:11:31.399charitable distributions. They could be qualifieddistributions. There's a lot of ways to114901:11:31.479 --> 01:11:34.119work around r and ds. Youhave to still take them at the end115001:11:34.119 --> 01:11:38.000of the day, but there's strategiesinvolved where you can see that you don't115101:11:38.039 --> 01:11:40.760If you don't necessarily want to paythe taxes, good give it to the115201:11:40.840 --> 01:11:43.680charity. The charity doesn't have topay taxes either and everyone has a good115301:11:43.680 --> 01:11:45.479time. But that doesn't mean youget the money either. So if you115401:11:45.520 --> 01:11:48.079ever have interesting questions about rm andds, feel free to let us know.115501:11:48.399 --> 01:11:50.960Feel free to give us a callabout that financial plan. We're doing115601:11:51.000 --> 01:11:55.079so many of these days because theyare so beneficial, they go so much115701:11:55.119 --> 01:11:57.520into detail. I mean, that'swhat really people need at the end of115801:11:57.560 --> 01:12:00.520the day, when they reach retirement, it's a time to start planning.115901:12:00.800 --> 01:12:02.920If you fail to plan, youplan to fail. Thank you for listening116001:12:02.920 --> 01:12:10.119to us. We'll be right backon the Money Matter Show. Welcome back116101:12:10.159 --> 01:12:12.720to the Money Matter Show. Myname is Todd Glick. I'm here with116201:12:12.760 --> 01:12:15.479the Bashian Borscini again. The GreenbergClan is out of the office. They116301:12:15.479 --> 01:12:18.079are going to be back next weekas well as Dave Sure. We were116401:12:18.079 --> 01:12:21.920looking forward to bringing them back in. I did want to bring up this116501:12:23.079 --> 01:12:28.359very important event that I'm looking forwardto attending on March twenty third. An116601:12:28.439 --> 01:12:31.600organization and I serve on the TucsonJewish Museum, a Holocaust Center. I'm116701:12:31.399 --> 01:12:35.199I'm on the board of directors forthat organization. It's an organization I care116801:12:35.239 --> 01:12:40.079a lot about. First of all, they have the oldest synagogue here in116901:12:39.199 --> 01:12:43.960Arizona State. It was actually formedbefore Arizona was even a state, when117001:12:43.960 --> 01:12:46.119it was a territory. And notonly that, right next door they have117101:12:46.159 --> 01:12:50.479a Holocaust Center which brings in kids, brings in educators and teaches them about117201:12:50.560 --> 01:12:56.000the atrocities of the Holocaust, butalso how easily other societies have fallen into117301:12:56.039 --> 01:12:59.680genocide, and they talk about theeight steps of genocide and how important is117401:12:59.720 --> 01:13:03.039for kids, but not only kids, everyone to realize how easy it is117501:13:03.079 --> 01:13:08.279to other people, how easy itis to be polarized, to have symbolization117601:13:08.359 --> 01:13:12.680get involved, and that is justa slippery slope into those steps of genocide.117701:13:13.079 --> 01:13:15.359At the end of the day,I'm pro human humanity. I'd love117801:13:15.439 --> 01:13:19.520humans. I don't care if you'repurple green or you know, red.117901:13:19.720 --> 01:13:23.560At the end of the day,humans are humans, and that I'm pro118001:13:23.640 --> 01:13:26.600humanity. And so at the endof the day, any killings of humans118101:13:26.640 --> 01:13:31.119that are not needed, it's justdisgusting. And it's this organization that really118201:13:31.239 --> 01:13:35.560highlights those atrocities, but not onlythat tells us how we can move forward,118301:13:35.760 --> 01:13:39.880learn from them, and be betterhumans because of it. They're putting118401:13:39.920 --> 01:13:43.880on a fundraising annual event on Marchtwenty third. It's gonna be from seven118501:13:43.920 --> 01:13:47.880to ten pm on March twenty third, and if you have want information,118601:13:47.960 --> 01:13:51.399feel free to contact me at Toddat Greenberg Financial dot com. It's two118701:13:51.439 --> 01:13:55.840d's, don't spend Todd with oneD. No one likes Todd with It's118801:13:55.840 --> 01:13:59.600Todd at Greenberg Financial dot com.I'll send you a flyer in information how118901:13:59.640 --> 01:14:01.439to get more information on this event. But again, it's a great event.119001:14:01.880 --> 01:14:04.479Looking forward to a fun night there. It's going to be at the119101:14:04.479 --> 01:14:09.600Carriage House downtown. Yeah, I'mreally looking forward to it. We had119201:14:09.600 --> 01:14:13.600a couple of actually just one questionwritten into contact at Greenbrook Financial dot com.119301:14:13.600 --> 01:14:16.479If you ever want to get thatanswer and get a question answered,119401:14:16.520 --> 01:14:18.760just reach out to us, evengive us a call. We'll put it119501:14:18.800 --> 01:14:24.640on the show. Margaret, I'vebeen reading about bitcoin mining after last week's119601:14:24.640 --> 01:14:29.239show and have been reading about theenvironmental impact it has. Could you help119701:14:29.279 --> 01:14:32.520better explain the process of bitcoin mining? Yeah, I mean bigcoin mining is119801:14:32.560 --> 01:14:34.640complex, But at the end ofthe day, hold on, I don't119901:14:34.640 --> 01:14:38.239know if Margaret knows what she justgot herself into. Yeah, no,120001:14:38.880 --> 01:14:40.439I mean at the end of theday. I'm not going to spend too120101:14:40.479 --> 01:14:45.760much time because it's fun. Butbitcoin mining is the confirmation of transactions.120201:14:47.239 --> 01:14:50.960But put it simply, imagine aledger, a piece of paper and I'm120301:14:51.000 --> 01:14:55.640sending I'm sending money to Sebastian andhe's sending money back to me. How120401:14:55.640 --> 01:14:57.640do we keep track of that?Well, we would write it down on120501:14:57.640 --> 01:15:00.399a ledger each time I send youmoney and each time you send money to120601:15:00.439 --> 01:15:01.439me. I mean, that's reallywhat money is at the end of the120701:15:01.520 --> 01:15:06.359day. Money at the very simplestform, is a communication tool to keep120801:15:06.399 --> 01:15:12.159us accountable. That's all it is. And we've started We've used sticks,120901:15:12.520 --> 01:15:15.680we've used beads, we've used seashells. Then we started using gold coins that121001:15:15.760 --> 01:15:19.560got too heavy. Then we startedusing paper debt, and then paper debt121101:15:19.600 --> 01:15:23.800that wasn't backed by anything. Nowit's called fiat currency, and that's where121201:15:23.840 --> 01:15:27.720we are today. So we haveconstantly technology talking about that early in the121301:15:27.760 --> 01:15:30.840show. Money's the same way moneyused to be very inefficient, right,121401:15:30.840 --> 01:15:33.840It used to be only something thatis rare in that region. Well,121501:15:33.840 --> 01:15:36.720when another region comes in and theysee that the other reason that is money.121601:15:36.880 --> 01:15:40.800They bring in something that they havea surplus of and this region that121701:15:40.840 --> 01:15:44.119doesn't have a surplus and they floodthe market. This has happened for many,121801:15:44.159 --> 01:15:45.960many years. Now we're at thepoint where the entire world is pretty121901:15:46.039 --> 01:15:50.079much globally connected, so we knowwhat everything should pretty much be a cast.122001:15:50.399 --> 01:15:55.800There are obviously still arbitrage opportunities inthis world, but very few compared122101:15:55.800 --> 01:15:58.680to what there were fifty years ago. And that's because of globalism, and122201:15:58.720 --> 01:16:01.039that's because of the dollar, Imean not just a dollar money in general.122301:16:01.119 --> 01:16:04.439The more money out there, themore we can hold each other accountable.122401:16:04.600 --> 01:16:09.880However, what happens when the money'smanipulatable, When happens when the money122501:16:09.960 --> 01:16:14.039is corruptible, that's when we don'tknow what's what, what's worth what,122601:16:14.399 --> 01:16:16.600who's playing the rules of the game. Right, It makes you wonder why122701:16:16.640 --> 01:16:20.840the company or companies, but countrieslike Venezuela that you know, have fell122801:16:20.960 --> 01:16:26.119victims to this hyperinflation, and theirdollars are just rampant in the streets,122901:16:26.159 --> 01:16:30.119Like why do they Why are theyso willing to adopt something like this because123001:16:31.000 --> 01:16:35.479obviously obviously it's this pretty beneficial tothem. Argentina, for example, just123101:16:35.880 --> 01:16:40.920put in a new president who's verypro bitcoin and he's looking forward to it.123201:16:41.119 --> 01:16:43.640Not only that, El Savador's president, which there's a lot of problems123301:16:43.640 --> 01:16:45.920without Savage I'm not going to getinto it, but you know, what123401:16:45.039 --> 01:16:48.960he did with bitcoin is the firstcountry to ever do it. They actually123501:16:48.960 --> 01:16:51.520put it on their balance sheet andthey're they're doing pretty good with it.123601:16:51.600 --> 01:16:55.279So at the end of the day, it also brings in a lot of123701:16:55.319 --> 01:16:59.640opportunities for these smaller countries that havejust been taken been taken advantage of by123801:16:59.680 --> 01:17:00.960the World Bank and IMF. Atthe end of the day, yes,123901:17:01.000 --> 01:17:04.479they're great organizations. They do goodthings at times, but they've also done124001:17:04.600 --> 01:17:08.159really bad things to third world countries. And if you look at the track124101:17:08.239 --> 01:17:11.359record of IMF and World Bank,they've done more harm than they've done good.124201:17:11.520 --> 01:17:14.800And that's the reality of it.As far as environmental impacts. Go124301:17:15.039 --> 01:17:18.399to your question mark, I'm gonnaask you to so I plug in a124401:17:18.399 --> 01:17:21.119bitcoin minor. How much energy isthat use? It uses a lot.124501:17:21.319 --> 01:17:28.479I mean it's gonna use on ascale I maybe ten twenty times the amount124601:17:28.520 --> 01:17:31.039of regular computer does. I meanit's a lot. I mean these are124701:17:31.159 --> 01:17:34.039huge. I mean what they're mining. I mean it's not it's not stop124801:17:34.119 --> 01:17:40.239too the no, I have noidea. I have no idea about that.124901:17:40.319 --> 01:17:43.039But I mean, let's think aboutthis for example too. These miners125001:17:43.039 --> 01:17:45.239are getting real hot. When youput a whole bunch in a room,125101:17:45.279 --> 01:17:47.239it gets real hot. So whatdo you need more AC that takes even125201:17:47.279 --> 01:17:53.920more power so it's not a cheapthing to run. That's why we see125301:17:53.960 --> 01:17:58.720with these marathon which is a minorRiot is a bitcoin minor m a R125401:17:58.760 --> 01:18:02.279as a ticker, IoT is theticker. They are bitcoin miners, and125501:18:02.720 --> 01:18:08.319they continuously buy newer plants and newwarehouses to make more bitcoin miners. But125601:18:08.640 --> 01:18:11.600they have a large, a longroad ahead of them because in a couple125701:18:11.640 --> 01:18:14.920of months they're going to have thathappening, so the reward they get for125801:18:15.000 --> 01:18:18.079bitcoins is gonna get cut in half. So, you know, it seems125901:18:18.079 --> 01:18:23.039like there's a I'm not telling youto go out and go out and buy126001:18:23.079 --> 01:18:26.079these stocks because they're highly volatile,and I think that you should probably talk126101:18:26.119 --> 01:18:29.960to the financial advisor before you do. But there's going to be an opportunity126201:18:30.000 --> 01:18:32.159for a lot of these companies.That's these bitcoin miners that have already entered126301:18:32.159 --> 01:18:34.520the game. Because of what youjust said, you know, the happening126401:18:34.560 --> 01:18:39.319is going to take half of theprofits away. It takes a really hard126501:18:40.199 --> 01:18:43.800math equation to figure out can weeven start a bitcoin mining at this spart126601:18:44.119 --> 01:18:46.439you know, like a new companycoming into this into this space, it126701:18:46.479 --> 01:18:49.880would cost so much money to startit up. Think about marathon that's already126801:18:49.880 --> 01:18:54.319implemented and has all this infrastructure already, and I want to you know,126901:18:54.359 --> 01:18:57.920I'm Sebastian. I want to starta company and start mining bitcoin. I127001:18:57.960 --> 01:19:00.880need a lot of money to enterup the game. Yea. Not only127101:19:00.920 --> 01:19:02.439that it's going to push people outof the market. Well, I always127201:19:02.520 --> 01:19:08.279love with bitcoin. The normal argumentis I don't trust, right, And127301:19:08.279 --> 01:19:12.720it's like, okay, well,where's your money right now? Right?127401:19:12.840 --> 01:19:15.199First of all, it's denominated ina currency that you don't trust, that's127501:19:15.279 --> 01:19:18.279back by called the government. Butnot only that, it's in a bank127601:19:18.279 --> 01:19:21.279account, which many people don't trust, you know what I mean, because127701:19:21.319 --> 01:19:25.239they literally don't have your money.They only have ten percent of it based127801:19:25.239 --> 01:19:29.479on fractional reserve banking, So technicallythey don't even really have your money.127901:19:29.520 --> 01:19:33.439But we trust them way more thenwe do something controlled by no humans that128001:19:33.600 --> 01:19:36.720has a code that is incorruptible.You know. The only thing that really128101:19:36.760 --> 01:19:41.359scares me about bitcoin in the futureis quantum computing. If quantum computing comes128201:19:41.359 --> 01:19:44.439about, it could break not onlyBitcoin, but every bank account in the128301:19:44.439 --> 01:19:46.560world. Everything that we run onright now is basically SHAW two fifty six.128401:19:46.600 --> 01:19:50.159It's the security protocol that locks thingsup and keeps people that we don't128501:19:50.159 --> 01:19:55.960want in our stuff out. Buta quantum computer, it can get through128601:19:55.960 --> 01:19:59.960that easily. And that's the scarypart of what potentially could be a great128701:20:00.079 --> 01:20:03.039innovation in bitcoin, but it couldlead to a failure if quantic computing got128801:20:03.079 --> 01:20:08.159to a level that potentially it couldget to. I want to talk a128901:20:08.199 --> 01:20:11.800little more about data because this isa very interesting thing I found this week129001:20:11.840 --> 01:20:16.640about a thirty square mile patch innorthern Virginia that has been dubbed Data Center129101:20:16.720 --> 01:20:23.960Alley. The boom in artificial intelligenceis turbo charging electricity use struggling to keep129201:20:24.039 --> 01:20:29.760up. The power company in thisarea that serves temporarily pause new data center129301:20:29.800 --> 01:20:33.119connections. At one point in twentytwenty two, Virginia's environmental regulations considered a129401:20:33.119 --> 01:20:39.359plan to allow data centers to rundiesel generators during power shortages, but backed129501:20:39.399 --> 01:20:44.600off after it drew strong community opposition. So people who don't know what Data129601:20:44.600 --> 01:20:46.640Center Alley really is, it's acluster of data centers, businesses, and129701:20:46.640 --> 01:20:50.960government organizations in Ashburn, Virginia.This area is also known as the Duals129801:20:51.000 --> 01:20:57.600Technology Corridor due to its proximity tothe Duals International Airport. Data Center Alley129901:20:57.640 --> 01:21:01.760spans across the Fairfax and London Countyin Virginia, but its infrastructure is utilized130001:21:01.840 --> 01:21:08.920all around the globe and estimated seventypercent of the world's Internet traffic travels through130101:21:09.319 --> 01:21:15.279this data center alley each day.Now data center alley, who would have130201:21:15.279 --> 01:21:23.039known thirty miles square thirty square milepatch and that's where seventy percent of the130301:21:23.079 --> 01:21:29.000world's Internet traffic each day runs through. A little interesting what's going on out130401:21:29.039 --> 01:21:38.039there? Maybe a little bit we'lltalk about AI. FINRA, the federal130501:21:38.079 --> 01:21:44.319body of the self regulatory organization cameout with a investor were Alert due to130601:21:44.399 --> 01:21:47.880AIS because they're seeing a number ofred flags that investors should look out for130701:21:48.000 --> 01:21:54.119as warning signs that the investment opportunitymight be bogus, beginning with registration status130801:21:54.359 --> 01:21:57.159of the party making the offer.One of the things they say to look130901:21:57.159 --> 01:22:00.520out for. Pump and dump.Regulators are warning about schemes evolving AI companies131001:22:00.520 --> 01:22:05.039where promoters try to gain interest ina stock through false or misleading information to131101:22:05.119 --> 01:22:09.640drive up the share price and cashout before the hype fades. The other131201:22:09.680 --> 01:22:15.039one they warn deep fakes. Scammersuse AI technology to add a layer of131301:22:15.079 --> 01:22:19.439authenticity to their efforts. These canbe in the form of your grandchild's voice,131401:22:19.520 --> 01:22:25.319your grandparents voice, and try toget into your investment accounts or tell131501:22:25.319 --> 01:22:29.119you to potentially buy something that younever should buy. There's a lot of131601:22:29.119 --> 01:22:32.560problems with deep fakes. Potentially itwill continue, probably we'll see into the131701:22:32.600 --> 01:22:40.359future. Another thing I think Iheard the news story about how essentially there's131801:22:40.560 --> 01:22:46.600one of the what are they calleddeep fix somebody comes out and calls call131901:22:46.680 --> 01:22:49.479somebody's mom and says, hey,I have your daughter hostage and I need132001:22:49.520 --> 01:22:54.720some ransom money. Right. That'sterrifying. That's terrifying, especially if your132101:22:54.800 --> 01:23:01.319daughter's on vacation or something. Yeah, yeah, don't right. The other132201:23:01.359 --> 01:23:06.079one they've warrened about is buzzwords.AI driven investment schemes have a lot of132301:23:06.079 --> 01:23:12.119buzzwords related to them, and thathas regulated concerned. Just because you see132401:23:12.159 --> 01:23:15.880AI connected to a stock, justbecause you see semiconductors connective a stock,132501:23:15.920 --> 01:23:17.880doesn't mean you should be buying it. This really comes back to working with132601:23:17.920 --> 01:23:23.159a financial advisor financial professional in general. You need to have someone that knows132701:23:23.279 --> 01:23:27.359who you are as an investor whoknows your level of risk as an investor,132801:23:27.600 --> 01:23:30.600but more than that, have itbacked on a financial plan. Without132901:23:30.600 --> 01:23:34.800a financial plan, you're never reallygoing to have the true solace that you133001:23:34.800 --> 01:23:39.319need each night to sleep comfortably,because, like I say many times on133101:23:39.359 --> 01:23:42.000the show, if you fail toplan, you plan to fail. When133201:23:42.039 --> 01:23:45.800you have a plan, you knowyou're doing it the most efficient way.133301:23:45.000 --> 01:23:49.399When you don't, you could,but there's that opportunity for a failure at133401:23:49.439 --> 01:23:55.640certain areas. There's so many complexplans we've done lately that people have found133501:23:55.680 --> 01:24:00.279that they thought they could have neverfound a simplicity in their financial life that133601:24:00.319 --> 01:24:04.079we gave them because not only dowe really put everything under one roof in133701:24:04.119 --> 01:24:09.119one picture, we then show themhow that picture could develop in morph over133801:24:09.159 --> 01:24:12.760a twenty year period and what thatand what that you know, picture should133901:24:12.840 --> 01:24:16.000look like in terms of the mostefficient outcome. A couple walked in today134001:24:16.000 --> 01:24:19.840and you know, the husband wasmaking jokes about how she couldn't even sleep134101:24:19.960 --> 01:24:23.840at night, and she walked outof this office. What's happy as can134201:24:23.960 --> 01:24:26.800be? She said, She's gonnago have a drink. Exactly. We134301:24:26.920 --> 01:24:29.079love to help people and if wewant if you want to be helped,134401:24:29.119 --> 01:24:30.920feel free to give us a callfive to zero five for four four nine134501:24:31.000 --> 01:24:33.319zero nine. We'll be right backfor the last segment of the Money Meta134601:24:33.399 --> 01:24:38.479Show. Thank you for listening.Welcome back to the Money Matter Show.134701:24:38.520 --> 01:24:41.319My name is Todd Glick. I'mhere with the Basket Barcini and we got134801:24:41.319 --> 01:24:45.119our regular guest Jonathan Sabilia on theshow. We are happy to have you134901:24:45.159 --> 01:24:46.800back. How are you doing?Pretty good? Guys, how are you135001:24:46.800 --> 01:24:50.199You know, it's another fabulous dayhere at the Greenberg Financial Office. How's135101:24:50.199 --> 01:24:53.760the market? It is doing well? Well. When you're at all time135201:24:53.800 --> 01:24:56.520highs, it's hard not to smile, right I. I yeah, as135301:24:56.520 --> 01:24:59.560long as you're invested into the market, you know, that's exactly that's why135401:24:59.600 --> 01:25:03.159you think diversified. But uh,you know, first before we get into135501:25:03.159 --> 01:25:06.399some estate planning, I'm not sureif you know. Me and Sebastian we135601:25:06.439 --> 01:25:11.600go way back. Okay, sowe actually met when we were eleven,135701:25:12.079 --> 01:25:15.239probably maybe even ten, ten elevenyears old. We played was that like135801:25:15.239 --> 01:25:20.079two years ago right right? Morelike thirteen eleven years ago, but we're135901:25:20.079 --> 01:25:25.399getting there. We played on thesame Broncos team, the same pee wee136001:25:25.520 --> 01:25:29.439football team for four years when wewent all over the country. I have136101:25:29.439 --> 01:25:31.479had a lot of fun time andwe actually I'm not going to bragg or136201:25:31.479 --> 01:25:35.039anything, but we were back toback to back city champions, state champions,136301:25:35.079 --> 01:25:40.520and national runners up twice. Therunners up I hate, I hate136401:25:40.560 --> 01:25:42.640to say that part, but wewent to Florida. It was a good136501:25:42.680 --> 01:25:45.359loss in the championship game twice.It was a tough it was really tough136601:25:45.199 --> 01:25:48.840sadness. I don't think that TotterI ever dreamt this up, but to136701:25:48.880 --> 01:25:51.479see something like this come to fruition, you know, from being well not136801:25:51.520 --> 01:25:56.720only that bes we worked together afterBroncos at a country club. We were136901:25:56.760 --> 01:26:00.640servers, and who would have thought, you know, just two three years137001:26:00.640 --> 01:26:03.600after that, we'd be working atthe same financial office together. So it's137101:26:03.600 --> 01:26:08.600been a great opportunity that we've beenawarded and we're definitely taking advantage of it.137201:26:08.680 --> 01:26:11.239So I guess I have spent waytoo much time with you. Yeah,137301:26:11.319 --> 01:26:16.159you spent you know, I'm gettingyou better. So we're getting there.137401:26:17.399 --> 01:26:21.600But John estate planning, you know, we're coming up on tax season,137501:26:21.640 --> 01:26:25.039which is in the state planning.I understand that, but in terms137601:26:25.039 --> 01:26:29.359of structuring things. It it bringsup taxes in a lot of people's minds,137701:26:29.359 --> 01:26:31.359so they want to start thinking aboutwhat are the best ways to structure137801:26:31.399 --> 01:26:35.000things. You said a lot ofthings that we normally go over my head137901:26:35.039 --> 01:26:40.840about charitable remaining trusts, you know, spousal trust. You have a and138001:26:40.960 --> 01:26:44.399tell me that this week that cameover the difference between the descendant and a138101:26:44.439 --> 01:26:47.199decendent trust, well just two termsand are two total of different people.138201:26:47.279 --> 01:26:51.800So the decendant is someone who diesand the descendant is the person who descends138301:26:51.840 --> 01:26:58.079the decendent the beneficiary, right,So if we want to create trust for138401:26:58.119 --> 01:27:03.479both of them, A decedents trustis a trust that's usually created for a138501:27:03.520 --> 01:27:11.119surviving spouse and it protects the deceasedspouse's share so they can split the assets138601:27:11.159 --> 01:27:15.199fifty to fifty. Half the assetsgo to the survivor, the other half138701:27:15.239 --> 01:27:19.439goes to the decend and trust whichis distribute according to the terms of the138801:27:19.640 --> 01:27:25.319trust document. Then you know there'sa descendants trust. And if we want138901:27:25.479 --> 01:27:30.720assets to sit inside of a trustfor the benefit of the beneficiary, you139001:27:30.760 --> 01:27:32.319know, depending on the terms ofthe trust, that can and as we139101:27:32.359 --> 01:27:36.479call it, the descendants trust,or you can call it credit or protection139201:27:36.479 --> 01:27:40.920trust, whatever you want, butthat's those are two different terms. So139301:27:42.159 --> 01:27:45.000but you always got to be careful, you know, we creating those things139401:27:45.000 --> 01:27:50.800too. You know, I hadthe Goldilocks situation just recently all Friday.139501:27:53.279 --> 01:27:56.800I had one lady that had twolittle estate planning, and I had one139601:27:56.880 --> 01:28:00.159lady that had too much of astate planning, you know, and you139701:28:00.159 --> 01:28:04.159know one you know, she youknow, two million dollars is a lot139801:28:04.159 --> 01:28:08.920of money, but you know,for state planning purposes, you know,139901:28:09.039 --> 01:28:13.600that's that's not a whole lot whenyou're when you state taxes is around twelve140001:28:13.640 --> 01:28:18.399point five million dollars. So shegot herself into too much of state planning.140101:28:18.560 --> 01:28:23.520Now she's doing in that decedents trust, you know, because we created140201:28:23.520 --> 01:28:26.840two trusts, one for the survivorand one for the deceased spouse. I140301:28:26.840 --> 01:28:30.119mean this the attorney that she had, you know, is putting notes,140401:28:30.560 --> 01:28:35.239you know, loans into that trust. He's there's a there's a piece of140501:28:35.279 --> 01:28:40.439property up in northern Arizona that's stuckthere and they can't get it out.140601:28:41.279 --> 01:28:44.119You know, it's it's too complicated, it's too much of state planning.140701:28:44.199 --> 01:28:45.960You know, why are we doingthat? You know, and you know,140801:28:46.399 --> 01:28:51.880I'm sure he's getting paid pretty wellto help administer that decedents trust for140901:28:53.159 --> 01:28:56.359you know, and try to getthat money out. She had me review141001:28:56.520 --> 01:29:00.279the trust and I came up witha couple of good ideas as showed her141101:29:00.439 --> 01:29:03.319the statute that we would rely on. And you know, if she wants141201:29:03.359 --> 01:29:05.359to go with me, she can. If she's going to bring that information141301:29:05.399 --> 01:29:09.680to that other attorney, fine,you know, well that's what you always141401:29:09.840 --> 01:29:12.199you know, put your hat on. Is you care about people. You're141501:29:12.239 --> 01:29:14.960not going to really at the endof the day, if someone asked you141601:29:15.000 --> 01:29:18.039a question, you're not going tonot answer it because there's no money attached141701:29:18.079 --> 01:29:20.479to it. You you actually docare about people, and that's why we141801:29:20.520 --> 01:29:24.520work so well together. I meanwe do free financial plans, you do141901:29:24.560 --> 01:29:28.520free financial free estate consultations. Yeah. The reason we do that is because142001:29:28.520 --> 01:29:31.479we believe in being educators. Andit doesn't always bring us the business at142101:29:31.479 --> 01:29:35.920the end of the day, butit does bring us the most business because142201:29:36.000 --> 01:29:40.000that's how referrals work, right,and people really know they're being taken care142301:29:40.039 --> 01:29:42.479of. When people know there's notan agenda on the other side of a142401:29:42.520 --> 01:29:45.760decision. They can actually have somethingcalled trust right. Yeah, exactly.142501:29:45.800 --> 01:29:48.600And you know I was talking aboutthe Goldilocks. You know that lady had142601:29:48.600 --> 01:29:51.239too much estate planning. And thenI just had a phone call with a142701:29:51.319 --> 01:29:56.760lady that it paid two hundred andfifty dollars for an estate plan for a142801:29:56.840 --> 01:29:59.920trust. And I went and lookedwith the guy did and holy cow,142901:30:00.640 --> 01:30:04.880and he's out of business and shecan't find him because there is what he143001:30:04.920 --> 01:30:10.359did to that deed. It doesnot follow Arizona statute does not have beneficiaries.143101:30:10.479 --> 01:30:13.319We don't even know who trust theseare on a deed. It just143201:30:13.880 --> 01:30:17.039it's too little disclosure. We mayhave to go to court just to get143301:30:17.079 --> 01:30:20.439that into trust or to at leastquiet title. We don't know what the143401:30:20.479 --> 01:30:24.079heck is going on, but youknow, she wanted to take the cheap143501:30:24.119 --> 01:30:29.000way out two hundred and fifty dollarsand got this this house that she wants143601:30:29.039 --> 01:30:33.279to disinherit her other kids and giveit to one child. But before we143701:30:33.319 --> 01:30:36.800can even make any changes to thetrust, what she lost and that guy's143801:30:36.880 --> 01:30:42.600out of business. She has adeed that's totally screwed up because she went143901:30:42.640 --> 01:30:44.880to some I don't know what whothe heck the guy is? I looked144001:30:44.920 --> 01:30:46.079them up. I think most peoplethey just go on Google, right,144101:30:46.079 --> 01:30:50.039and they're like, oh, what'sa cheap Willson? There you go two144201:30:50.159 --> 01:30:55.840hundred and fifty dollars. Well,we're gonna you know, first off,144301:30:55.880 --> 01:30:59.479I'm having her find the trust document. So once we find that out and144401:30:59.560 --> 01:31:02.359I know that she's a trustee andcan make certain determinations. You know,144501:31:02.479 --> 01:31:05.079I saw the chain of title.I saw it go from her into a144601:31:05.119 --> 01:31:09.680trust, but doesn't say who thebeneficiaries are, doesn't follow the exemption,144701:31:09.800 --> 01:31:13.119doesn't have the proper exemption on there, doesn't have the beneficiaries on the deed,144801:31:13.119 --> 01:31:15.279which it has to have in Arizona, doesn't have the trustee listed.144901:31:15.319 --> 01:31:19.920Who's the trustee? I don't knowshe has any power right, So she145001:31:20.000 --> 01:31:24.680went to some guy to fifty thankyou. I don't know what he did145101:31:24.720 --> 01:31:27.359with the two undred fifty dollars,but you know it's under you know,145201:31:27.399 --> 01:31:30.920that's that's not not getting enough estateplanning when you should have had it.145301:31:30.359 --> 01:31:34.760You know, technically did she evenneeded trust right? But you know,145401:31:34.840 --> 01:31:39.119could have just got away with thewill and a couple beneficiary deeds and what145501:31:39.199 --> 01:31:42.840it called it a day. Lookhow good you're getting with the it's just145601:31:42.920 --> 01:31:45.760coming right out of here, youknow, a couple of beneficiary deeds.145701:31:45.800 --> 01:31:46.640I like that, as you knowI do. You know, sometimes I145801:31:46.680 --> 01:31:49.840wanted these guys space out in themiddle of my conversation because it's not exactly145901:31:49.840 --> 01:31:55.720the most exciting area law. Butyou know, oh yeah, it's always146001:31:55.720 --> 01:31:59.600over your head. You know,I think again when we talk about the146101:31:59.600 --> 01:32:01.079full pick. Sure, what youknow we're trying to build here. It's146201:32:01.119 --> 01:32:04.199not just money management, it's notjust financial planning. It's not just a146301:32:04.239 --> 01:32:09.319state planning. I mean we arethat financial one stop shop where we had146401:32:09.319 --> 01:32:12.479a client when we came in,you know, a couple of weeks ago,146501:32:12.880 --> 01:32:15.680he went from us financial planning.Then when I showed him his investment146601:32:15.680 --> 01:32:17.079accounts, then he went over toyou, talked about a state plan then146701:32:17.119 --> 01:32:21.840went over across the way talked aboutloans with dave hands. So we really146801:32:21.840 --> 01:32:25.640do have everything here. We evenhave tax accounts we can refer you to.146901:32:25.840 --> 01:32:29.640So there's a lot of benefits herewhen you call us, you know,147001:32:29.680 --> 01:32:31.640all we're all we are is aphone call away five two zero five147101:32:31.680 --> 01:32:34.359four four four nine zero nine,because we really are here to help.147201:32:34.560 --> 01:32:36.920We're not. At the end ofthe day, there's no price tag when147301:32:36.960 --> 01:32:40.880you come into an initial meeting withus. There's never a price tag any147401:32:40.880 --> 01:32:44.279meeting with us. But eventually therewill be a price tag with John if147501:32:44.279 --> 01:32:47.079there's business to be had. Butin terms of us, we charge aum.147601:32:47.399 --> 01:32:51.119Obviously John works on a different feeschedule, but in the initial meetings147701:32:51.279 --> 01:32:55.960are one hundred percent free. Thereare no obligations. It is just to147801:32:55.960 --> 01:32:58.720see if it's a good fit forus to move forward. And that's the147901:32:58.800 --> 01:33:00.760benefit that we're offering everyone who's listening. A lot of the time, people148001:33:00.800 --> 01:33:03.319just you know, they come infor that first initial financial planning meeting,148101:33:03.359 --> 01:33:06.680we email them the financial planning meetingand they say thank you. I mean,148201:33:06.720 --> 01:33:10.159don't hear from them, Yeah,that's okay. Well, more than148301:33:10.199 --> 01:33:15.159anything, it's the it's the levelof comfort people find when not only they148401:33:15.199 --> 01:33:18.960know what happens after they pass awayis going to be taken care properly,148501:33:19.399 --> 01:33:24.359but when they are alive, everything'sgoing to be taken care properly. Those148601:33:24.399 --> 01:33:29.239are two very stressful parts of someone'slife because it's complicated and there's a lot148701:33:29.239 --> 01:33:30.760of information you need to know,and there's not enough time to know it148801:33:30.840 --> 01:33:34.000unless you've been doing it all yourcareer. And that's why you need to148901:33:34.039 --> 01:33:38.800be working with a professional. Youknow, it's not always about finding the149001:33:38.880 --> 01:33:42.560cheapest cheap because, as Don says, you're gonna find sometimes in fear your149101:33:42.560 --> 01:33:45.359service because of it. Yeah,Or you're going to go to an attorney.149201:33:45.359 --> 01:33:47.560He's got the mahogany walls and he'sgot the you know, the the149301:33:47.600 --> 01:33:53.319cigar, the humidifier and you know, the huge staff, and you're going149401:33:53.399 --> 01:33:56.920to pay a premium, right andyou're going to get over estate planning,149501:33:57.159 --> 01:33:59.640you know, stuff that Oh mygoodness. I told I looked at her,149601:33:59.680 --> 01:34:02.159I said, what did you getyourself into? And you know,149701:34:02.880 --> 01:34:06.760and I'm gonna do my best tosimplify it if she wants, if she149801:34:08.039 --> 01:34:11.319you know, if she's comfortable ofdoing it. But I you know,149901:34:11.359 --> 01:34:14.039I hope she takes my advice andat least process it, and you know150001:34:14.359 --> 01:34:15.880she can make an informed decision.That's all that matters. You guys,150101:34:15.880 --> 01:34:19.680meet with me, you know,the first meeting, it's all about informed150201:34:19.680 --> 01:34:23.960decisions. You know, I informyou what your options are, and then150301:34:24.000 --> 01:34:27.600I inform you what it's going tocost, and then you either you know,150401:34:27.920 --> 01:34:30.880go that way or you know,maybe you're just not comfortable doing it150501:34:30.880 --> 01:34:34.000now, and then we could setsomething up down the road. But exactly,150601:34:34.199 --> 01:34:36.279you know. And that's the thingwith financial planning too, you know,150701:34:36.399 --> 01:34:42.119not you know, they feel youout and if they feel comfortable with150801:34:42.159 --> 01:34:44.479you, guys, they give youtheir money and they invest it and you150901:34:44.560 --> 01:34:47.600make it grow. Yep. Andfinancial planning and estate planning, our job151001:34:47.640 --> 01:34:53.000as professionals is to be making complexthings simple. Right. If you ever151101:34:53.239 --> 01:34:58.560go to an expert or a professionaland they they're using all these high buzzwords151201:34:58.560 --> 01:35:01.760and they're trying to sound smarter thanyou, that's a red flag. Oftentimes,151301:35:01.800 --> 01:35:03.880if you have someone who's really tryingto, you know, go over151401:35:03.920 --> 01:35:08.079your head, that's not a goodthing to know. They should be trying151501:35:08.119 --> 01:35:12.640to make things simple so you understandwhat they are saying. And so that's151601:35:12.680 --> 01:35:15.199another big thing to look out for, especially when you're interviewing other people around151701:35:15.239 --> 01:35:20.039town. No matter what it is, anything that someone who just says just151801:35:20.079 --> 01:35:25.840trust me, I just don't dothat in this world anymore. So really151901:35:25.880 --> 01:35:29.880dig into someone's past and only thatdig into how they are saying something and152001:35:30.079 --> 01:35:31.800what truly that makes you feel likein the trust level that comes along.152101:35:31.920 --> 01:35:34.119Yeah, I want you to comeinto my meaning not trusting me and me152201:35:34.199 --> 01:35:38.359having to prove it. Yeah right, you know, we'll talk about things152301:35:38.399 --> 01:35:41.079that may I talk about things thatmake people feel comfortable, you know,152401:35:41.119 --> 01:35:44.479how to minimize their taxes. GuI never thought about that, you know.152501:35:45.239 --> 01:35:47.439Uh, and that's always a goodthing. If they asked me for152601:35:47.520 --> 01:35:50.800financial financial planning. You know,there are some attorneys out there that pedal152701:35:51.840 --> 01:35:57.640you know, financial plans, attorneysthat you shouldn't be doing it. I'll152801:35:57.640 --> 01:35:59.720take a step back, I said, I don't want to travel down that152901:35:59.800 --> 01:36:01.920road. But there's a couple ofguys down in the other room that we'll153001:36:02.000 --> 01:36:03.920be happy to sit down with you, take an hour and talk to you153101:36:03.960 --> 01:36:09.439about that. That's not my specialty. Okay, we'll talk about how getting153201:36:09.520 --> 01:36:12.880get at your kids right, butthese guys are gonna talk to you how153301:36:12.880 --> 01:36:15.159to make it bigger. Well,we appreciate everyone listening to this Money Matters153401:36:15.159 --> 01:36:18.199show. We've had a great timeand here at Greenberg Financial Group, we153501:36:18.239 --> 01:36:20.840all try to be healthy, weall try to be happy, but at153601:36:20.840 --> 01:36:25.439the end of the day, whatwe really try to do is be profitable.153701:36:25.680 --> 01:36:26.479See you next week.