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

WEBVTT 1 00:00:00.160 --> 00:00:02.879 Welcome to the Money Matters Show. My name is Todd Glick and I'm here 2 00:00:02.919 --> 00:00:07.639 with Sebastian Borsini. The Greenberg clan is out of the office today as well 3 00:00:07.679 --> 00:00:11.560 as David Sherwood, so you are stuck with just me and Todd and Sea 4 00:00:11.560 --> 00:00:13.720 Best. So we look forward. We have a lot of information to get 5 00:00:13.720 --> 00:00:17.199 through today. So we're really excited to bring everything to you because it was 6 00:00:17.199 --> 00:00:20.320 a busy week in markets. You have the young bulls this week. Yeah, 7 00:00:20.399 --> 00:00:23.679 you know it's it's the young bulls for sure. Now people are wondering 8 00:00:23.679 --> 00:00:26.760 where are the Greenbergs. Good, They're just here and locally, they're gonna 9 00:00:26.760 --> 00:00:29.199 be back next week. We don't have to worry about it. Sherwood is 10 00:00:29.199 --> 00:00:33.920 actually out in California taking care of his grandkids. So he loves being out 11 00:00:33.920 --> 00:00:37.079 in California. He's gonna have some great information for us when he comes back, 12 00:00:37.520 --> 00:00:40.920 probably about EV's. Right. He's gonna let us know how many evs 13 00:00:40.960 --> 00:00:44.159 he counted up to and from HeLa Bend and oh, yeah, how long 14 00:00:44.200 --> 00:00:46.759 you stop? Actually no, he doesn't take his electric vehicle. But he 15 00:00:46.799 --> 00:00:49.960 doesn't take his electric vehicle. He's not he's not ready for it yet. 16 00:00:50.039 --> 00:00:53.880 He did tell me that he did up a test trip to HeLa Bend on 17 00:00:54.280 --> 00:00:57.399 an off day about it, Martin Luther King day, right right right at 18 00:00:57.399 --> 00:01:00.399 two and a half hour test drive to see if it's ev you had the 19 00:01:00.520 --> 00:01:03.759 range to make it, and he said, and there's no problems. Okay, 20 00:01:03.840 --> 00:01:06.760 well that's about halfway, so you still got some more to drive and 21 00:01:07.079 --> 00:01:10.599 definitely a big mountain range to get over. But you know, I took 22 00:01:10.640 --> 00:01:15.480 my own hybrid and I still have worries getting over that huge mountain you have 23 00:01:15.519 --> 00:01:18.439 to get over. Preface that you've had a problem. I've had a problems 24 00:01:18.439 --> 00:01:21.719 with my hybrid. But you know, when your battery starts to get low 25 00:01:21.760 --> 00:01:23.719 and you're running up a mountain, it's a scary thing because you realize there's 26 00:01:23.760 --> 00:01:27.200 not much opportunities for anything else. Let's get the most boring part of the 27 00:01:27.200 --> 00:01:32.200 show out of the way with the disclosures. Here we go. The show 28 00:01:32.280 --> 00:01:34.480 sponsored by the Greenbrig Financial Group and you can listen on seven to ninety cannis 29 00:01:34.519 --> 00:01:40.879 See or iHeartRadio. The show discusses different investment products and strategies. Every product 30 00:01:40.879 --> 00:01:44.599 and strategy have some type of inherent risks and we strongly encourage our listeners to 31 00:01:44.640 --> 00:01:49.480 properly understand this risk to determine whether to buy, sell or hold. The 32 00:01:49.519 --> 00:01:52.280 show has been on air for over thirty years. The Greenbrig Financial Group is 33 00:01:52.319 --> 00:01:56.159 registered with the SEC and a member of FINRA and SIPIK. Visit our website 34 00:01:56.159 --> 00:02:00.200 at Greenbrig Financial dot com for some more information. God, I think the 35 00:02:00.200 --> 00:02:02.239 blistereners know we go we go aways back. Oh, we're gonna tell them 36 00:02:02.239 --> 00:02:06.159 about the whole story and just a bit. But we're gonna start out with 37 00:02:06.239 --> 00:02:08.120 some performance numbers on the week. The first thing we'll go through is the 38 00:02:08.199 --> 00:02:10.879 Dow Jones. It was up two point one percent on the week. The 39 00:02:10.960 --> 00:02:14.919 S and P was up two point five percent, the Nasdaq was up two 40 00:02:14.919 --> 00:02:17.120 point one, the Rustle up one point three, and the equal weighted of 41 00:02:17.199 --> 00:02:21.800 one point four. The S and P led the way this week. Big 42 00:02:21.840 --> 00:02:23.719 tech stocks actually had a great week. There's a lot of earnings reports that 43 00:02:23.800 --> 00:02:28.479 came out this week, Meta Apple, Amazons just to name a few, 44 00:02:28.520 --> 00:02:30.919 that really had markets moving as well as we have the big Federal Reserve, 45 00:02:30.919 --> 00:02:35.000 which we'll talk about in just a few minutes. All in although seeing the 46 00:02:35.080 --> 00:02:38.319 S and P five hundred return two point five percent this week, where the 47 00:02:38.360 --> 00:02:40.719 equal weighted S and P five hundred only return one point four percent. What 48 00:02:40.759 --> 00:02:45.439 we see again is the continuation of the trend of twenty twenty three, the 49 00:02:45.520 --> 00:02:49.759 super six outperforming the broad market. And for people who are not aware of 50 00:02:49.759 --> 00:02:53.879 the super six, those are the Microsoft, Apple, Amazon, Google, 51 00:02:53.159 --> 00:02:59.520 Navidia, and I'm missing one but at the end of Tesla because Tesla was 52 00:02:59.560 --> 00:03:02.280 removed. It's not Netflix either. It was Meta and that's who it is. 53 00:03:02.319 --> 00:03:07.919 It's Meta, and those six have just continually outperformed the market, and 54 00:03:07.000 --> 00:03:12.879 we cease that trend continue this week. Gold was up this week twenty dollars 55 00:03:12.919 --> 00:03:15.479 on the week, it's a twenty thirty seven and ounce oil had a very 56 00:03:15.560 --> 00:03:19.560 volatile week and it was down six dollars on the week. It's now at 57 00:03:19.599 --> 00:03:23.240 seventy two dollars a barrel. That's an interesting one commodity to be looking at 58 00:03:23.240 --> 00:03:27.319 because Dave he keeps saying that he thinks oil should be at one hundred and 59 00:03:27.439 --> 00:03:30.879 rightfully, so, you have two wars right now in the in the world 60 00:03:30.039 --> 00:03:34.639 with a huge conflict within the Red Sea right and Red Sea conflict, which 61 00:03:34.639 --> 00:03:38.120 is adding eighty percent cost of transportation. Right voyage expedition. Its just through 62 00:03:38.159 --> 00:03:42.240 the roof. It's going to cost some supply constraints across the whole supply chain. 63 00:03:42.360 --> 00:03:45.000 China seems to continue. I mean, they're not doing great, but 64 00:03:45.039 --> 00:03:47.919 they are coming back online from the pandemic. Should be using plenty of oil. 65 00:03:49.000 --> 00:03:51.520 That I mean, the whole country, the whole world seems to be 66 00:03:51.919 --> 00:03:54.439 using oil. Why are we not seeing that surge in prices? It is 67 00:03:54.479 --> 00:03:59.479 an interesting topic, and obviously a lot of that has to do with productivity 68 00:03:59.479 --> 00:04:03.960 of the actual oil producers. But at the end of the day, with 69 00:04:04.000 --> 00:04:06.879 what we saw last week was such a surgeon oil and we had a five 70 00:04:06.919 --> 00:04:12.800 dollars increase a barrel. This week the exact opposite six dollars decrease. So 71 00:04:12.840 --> 00:04:15.919 we're basically at a wash where we were two weeks ago. But a very 72 00:04:15.000 --> 00:04:19.000 volatile market right now. That continues to be one of the big worries for 73 00:04:19.040 --> 00:04:23.839 the Fed. Obviously that comes up a high inflation is going to have to 74 00:04:23.839 --> 00:04:27.079 come up high, and then that puts them under the pressure. Right Could 75 00:04:27.120 --> 00:04:29.399 you imagine if they came out in March and said, you know what, 76 00:04:29.439 --> 00:04:31.519 we're gonna raise the interest rates. It's going to be a blood bath. 77 00:04:31.879 --> 00:04:34.319 Let's talk about rates a little bit, because what we have right now in 78 00:04:34.399 --> 00:04:38.720 the ten year is it finished at four point zero two percent this week. 79 00:04:38.879 --> 00:04:41.920 The two years at four point three seven percent, So we still have an 80 00:04:41.920 --> 00:04:45.439 inversion. It's very small compared to what it was just six months ago. 81 00:04:45.720 --> 00:04:48.199 But what we are seeing right now is that tenure getting back above before we 82 00:04:48.199 --> 00:04:51.680 saw it actually sell off big time in the middle of the week. But 83 00:04:51.879 --> 00:04:56.560 Friday we got a really strong labor report, which we'll dig into more and 84 00:04:56.639 --> 00:05:00.879 later in the show, but that caused rates to surge on Friday didn't really 85 00:05:00.879 --> 00:05:04.800 impact markets, which was very surprising. But these increase of rates was a 86 00:05:04.839 --> 00:05:09.319 response of the market saying, yeah, maybe this economy is too hot right 87 00:05:09.319 --> 00:05:12.639 now. It's interesting because you know, just getting out of college, we're 88 00:05:12.639 --> 00:05:15.439 todd nothing else than you know, if there's high interest rates, it's not 89 00:05:15.439 --> 00:05:18.240 good for growth stocks. And this was completely opposite of what I've ever been 90 00:05:18.279 --> 00:05:21.560 done. Yeah, I mean the old school way of thinking is when you 91 00:05:21.600 --> 00:05:26.199 put in a valuation of a stock, it's based on the growth and that 92 00:05:26.279 --> 00:05:30.480 growth has a super big dependency on the rate associated with it. So when 93 00:05:30.759 --> 00:05:34.000 when a stock analysis, you know, someone who really does stock analysis, 94 00:05:34.000 --> 00:05:36.560 and they're trying to find what's the true value of a stock. They used 95 00:05:36.560 --> 00:05:42.000 a ten year US government bench rate as the risk free rate, all right, 96 00:05:42.279 --> 00:05:44.839 and then what you're doing is trying to find what's the rate that you're 97 00:05:44.879 --> 00:05:48.160 going to get above that, and then you can find your risk level based 98 00:05:48.160 --> 00:05:53.839 on that. What we see normally historically is when rates come higher, that 99 00:05:53.920 --> 00:05:57.839 means those valuations mathematically have to come down, which makes stocks come down. 100 00:05:58.199 --> 00:06:00.480 We haven't seen that at all, not at all, and so it continues 101 00:06:00.519 --> 00:06:04.560 to boggle some minds, you know. The inverted yield curve continues to bottle 102 00:06:05.199 --> 00:06:10.240 Bogle mindes as well, because we're coming up on that eighteen month mark where 103 00:06:10.319 --> 00:06:15.399 it really starts to Every time the average recession that has happened off this two 104 00:06:15.360 --> 00:06:19.600 to ten year inversion happens around that eighteen month period. So that's going to 105 00:06:19.680 --> 00:06:23.439 be interesting to watch. But when we have an economy red hot like we 106 00:06:23.480 --> 00:06:28.920 have right now, it's hard to see any slowing down. The SMI fifty 107 00:06:28.920 --> 00:06:31.120 two weeks high correct, well, yeah, it's another all time high. 108 00:06:31.160 --> 00:06:33.879 So I have a pretty cool step post time all time high performance. If 109 00:06:33.920 --> 00:06:39.560 you picked a random day a new high was made a year later, up 110 00:06:39.600 --> 00:06:43.560 seven point four percent on average and up about seventy one percent of the time, 111 00:06:43.560 --> 00:06:46.720 which isn't spectacular, but it sure is not bearish, right anything. 112 00:06:46.800 --> 00:06:48.839 But not only that, I mean, the average return in an election year 113 00:06:48.839 --> 00:06:51.839 for the S and P five hundred and four percent. So a lot of 114 00:06:51.879 --> 00:06:56.920 the historical numbers point to the fact that we're going to have a growth year, 115 00:06:56.920 --> 00:06:59.800 but not a year of what we had in twenty three. It's not 116 00:06:59.839 --> 00:07:01.639 so thing where you should expect a twenty three to thirty percent growth in the 117 00:07:02.279 --> 00:07:05.560 markets, but potentially you see something like a five to ten percent growth, 118 00:07:05.839 --> 00:07:11.279 something a little more modest, especially as rates continue to be high. I 119 00:07:11.319 --> 00:07:15.279 mean, it's hard to see huge growth rates that continue to be priced in 120 00:07:15.360 --> 00:07:19.480 this market. The Russell two thousands a really interesting thing that I continue to 121 00:07:19.519 --> 00:07:25.319 look at, and it's lagging so heavy. The small caps are just not 122 00:07:25.480 --> 00:07:29.720 performing anywhere near the big caps. So it doesn't say that we're entering into 123 00:07:29.720 --> 00:07:33.759 this new huge bowlmarket where everything's going up. It's still those very particular stocks 124 00:07:33.879 --> 00:07:38.759 that you know they either have ties to semiconductors or AI. You know, 125 00:07:38.879 --> 00:07:43.720 that's really what's driving this entire market right now. Now, let's go into 126 00:07:43.800 --> 00:07:46.839 what the Federal Reserve talked about this week. Now, this is their first 127 00:07:46.879 --> 00:07:49.399 meeting of twenty twenty four. They left us last year on a hold, 128 00:07:49.399 --> 00:07:53.600 and they continued that theme at this meeting. They held rates. It's now 129 00:07:54.199 --> 00:07:57.759 continues to be at five point five percent. The biggest thing that he was 130 00:07:57.800 --> 00:08:01.199 saying as press conference, there's no chance of him cutting rates in March. 131 00:08:01.240 --> 00:08:05.480 He said, it's not going to happen. And we had a fifty percent 132 00:08:05.480 --> 00:08:09.399 probability of a rate cut coming into this week in March, right, and 133 00:08:09.519 --> 00:08:11.839 it's not gonna happen now. So we just keep seeing those futures drop that. 134 00:08:13.160 --> 00:08:16.079 Yeah, Mark, Yeah, and so it's likely, you know, 135 00:08:16.240 --> 00:08:20.160 nothing in March and probably nothing in the meeting after that. Either. What 136 00:08:20.240 --> 00:08:22.800 were you pricing in to start the year five or six rate cuts? Yeah, 137 00:08:22.800 --> 00:08:24.800 some people thought there were six rate cuts that you know, conservative was 138 00:08:24.800 --> 00:08:28.920 probably around four. All right, So when you have all that projected in, 139 00:08:28.399 --> 00:08:33.240 you know, it's it could be it could be a negative impact on 140 00:08:33.279 --> 00:08:35.559 the market if that doesn't come to fruition, certainly, I mean could and 141 00:08:35.720 --> 00:08:39.799 like you said earlier, if the Fed reverses their tone right, and they 142 00:08:39.840 --> 00:08:43.399 say, Wow, start becoming Look at how hot this labor market is. 143 00:08:43.440 --> 00:08:48.360 Look how hot this CPI is coming in. All the economic reports are strong, 144 00:08:48.399 --> 00:08:50.720 all the earnings reports are coming in strong, and we still have inflation 145 00:08:50.840 --> 00:08:56.120 taken back up to five percent or something like that. That's that really puts 146 00:08:56.159 --> 00:08:58.360 their hands to the fire. I mean, how do they not have the 147 00:08:58.440 --> 00:09:01.759 raise rates in that situations? Hard to see. So if that would where 148 00:09:01.840 --> 00:09:05.960 is to happen, especially if that conflict keeps going on within the Red Sea 149 00:09:05.039 --> 00:09:09.039 and oil prices are to surge. Yeah, that Red Sea conflict continues to 150 00:09:09.080 --> 00:09:13.799 boggle a lot of mines because of how dominant we are in animals every spot 151 00:09:13.799 --> 00:09:16.840 of the world, and for some reason, we're scared to get involved. 152 00:09:18.440 --> 00:09:22.720 For some reason, there's something fishy. It's very fishy because it's you know, 153 00:09:22.759 --> 00:09:26.399 they're their drone strikes and they're and they're messing with these ships and they're 154 00:09:26.440 --> 00:09:31.600 taking longer to go around it. But you know, apparently there's even you 155 00:09:31.639 --> 00:09:35.399 know, US soldiers were hurt. I think Dean talked about it maybe last 156 00:09:35.399 --> 00:09:39.639 week or two weeks ago. It doesn't seem too efficient to be using these 157 00:09:39.639 --> 00:09:41.919 one to two million dollars missiles to attack these drones. But at the same 158 00:09:41.960 --> 00:09:45.039 time, you know, we got to put our foot down at some point. 159 00:09:45.240 --> 00:09:48.240 Well yeah, not only that, when you start having US soldiers getting 160 00:09:48.240 --> 00:09:50.320 injured and killed, I mean, that's when you really have to start absolutely 161 00:09:50.559 --> 00:09:56.519 looking into what's going on over there, because there's a crazy stat about the 162 00:09:56.759 --> 00:10:01.639 level of productivity that comes out of that channel. I mean, I saw 163 00:10:01.639 --> 00:10:05.000 something about you remember the ever Grand conflict went, not the ever conflict, 164 00:10:05.000 --> 00:10:09.080 but the boat of Evergrand that got stuck in the canail and it got in 165 00:10:09.600 --> 00:10:13.240 completely stopped production. That's the same level of production we're seeing going through that 166 00:10:13.279 --> 00:10:18.000 canal that was when that entire ship. You're barely hearing about it. It's 167 00:10:18.039 --> 00:10:20.399 like, I can't really find too much news about the right. Yeah, 168 00:10:20.399 --> 00:10:22.399 when the ever Grand came on you you couldn't hear about it. But now 169 00:10:22.399 --> 00:10:26.480 you're not hearing anything about it. So it's it's certainly interesting that it's not 170 00:10:26.519 --> 00:10:30.759 getting more news coverage than what it is. Other economic reports that hit us 171 00:10:30.759 --> 00:10:35.679 this week was the SMP Case Shiller Home price Index report for November year over 172 00:10:35.759 --> 00:10:39.000 year. It came in at five point four percent. That's lower than expected 173 00:10:39.279 --> 00:10:43.360 at five point eight, but it's higher than the previous reading at four point 174 00:10:43.440 --> 00:10:46.840 nine. Continue to see home prices increasing year over year as those monthly reports 175 00:10:46.879 --> 00:10:50.879 are coming in. And we actually do have a special guest it's going to 176 00:10:50.919 --> 00:10:54.720 come on the show next and I know the special guest because he's my father, 177 00:10:54.799 --> 00:10:56.759 Todd Glick as well works for af Sterling. He's going to be on 178 00:10:56.759 --> 00:11:01.159 the show talking about housing market and what's going went on in that realm as 179 00:11:01.159 --> 00:11:05.200 well. The other economic reports we like to look at is those job reports. 180 00:11:05.240 --> 00:11:07.480 On Wednesday, we got the ADP Employment change and that came in below 181 00:11:07.559 --> 00:11:11.679 expectations, so that was set in the market up to think this labor report 182 00:11:11.720 --> 00:11:13.639 wasn't going to be too hot, and then on Friday the real label report 183 00:11:13.679 --> 00:11:18.080 was released and it was very hot. The average hourly earnings came in at 184 00:11:18.120 --> 00:11:22.720 point six expected was point three okay average, I mean sorry. Non Farm 185 00:11:22.720 --> 00:11:26.399 payrolls came in at three hundred and fifty three thousand expected one hundred and eighty 186 00:11:26.480 --> 00:11:31.120 k and that's even increased in the previous reading of three hundred and thirty three 187 00:11:31.120 --> 00:11:35.039 thousand. So normally with these reports you get revisions that come in the you 188 00:11:35.039 --> 00:11:37.080 know, weeks subsequently. But all in all, I mean, that's a 189 00:11:37.240 --> 00:11:43.519 double of the non farm payrolls then economists were projecting, and so seeing that 190 00:11:43.679 --> 00:11:46.919 is a very hard thing for the Fed to not look at. I mean, 191 00:11:46.919 --> 00:11:52.879 average hourly earnings four point five percent expected four point one. Unemployment rate 192 00:11:52.000 --> 00:11:56.480 is ticked down again. Now it's at three point seven. I believe that's 193 00:11:56.480 --> 00:12:00.000 an all time historic low. It might be three point six, but it's 194 00:12:00.399 --> 00:12:03.039 everything that the labor market says. It's strong. This print on Friday was 195 00:12:05.480 --> 00:12:07.879 it was. It told us there's no chance that the Federal Reserve is gonna 196 00:12:07.879 --> 00:12:13.440 cut rates here. You know they can't. They cannot do it. We're 197 00:12:13.480 --> 00:12:16.080 gonna see inflation again, and it's certainly gonna make some people mass certainly. 198 00:12:16.120 --> 00:12:18.720 I mean, when you have a labor report like that, people are making 199 00:12:18.759 --> 00:12:22.759 money, people are working, people aren't getting laid off. That means people 200 00:12:22.799 --> 00:12:26.080 are spending, right, that means the economy is moving. And so at 201 00:12:26.120 --> 00:12:31.639 the end of the day, you can't we're in a good position. So 202 00:12:31.679 --> 00:12:37.679 you're saying higher wages tend to what support stronger consumer spending. Absolutely would have 203 00:12:37.679 --> 00:12:41.759 thought, yeah, absolutely, So all in all, you know, the 204 00:12:41.759 --> 00:12:45.480 Federal Reserve saying what they're saying, it's it's gonna have a big impact for 205 00:12:45.519 --> 00:12:50.080 stocks moving forward. And likely what we're going to see is an event after 206 00:12:50.120 --> 00:12:54.399 event when the FED comes into it saying we're gonna hold, We're gonna hold, 207 00:12:54.399 --> 00:12:56.240 We're gonna hold in the entire four five six rate cuts that we thought 208 00:12:56.279 --> 00:12:58.919 were gonna happen in the beginning of year may turn out to be one or 209 00:13:00.080 --> 00:13:05.000 two, maybe zero, you know, and that I think will eventually be 210 00:13:05.039 --> 00:13:09.720 felt in markets. Now, let's look into something else. This week, 211 00:13:09.799 --> 00:13:11.879 we had a lot of earning, So let's start with some of the earnings 212 00:13:11.879 --> 00:13:15.960 that came out. Let's start with Amazon. Let's start with Amazon. Amazon 213 00:13:16.000 --> 00:13:20.919 Web Services Company's cloud platform grew thirteen percent a year every year, meeting analyst 214 00:13:20.000 --> 00:13:26.840 expectations, and subsequentially revenue of nearly one hundred and seventy billion dollars, easily 215 00:13:26.879 --> 00:13:30.679 beating the projections. Overall revenue climb thirteen point nine percent a year every year. 216 00:13:31.480 --> 00:13:35.120 They're advertising it's just doing amazing. It's up twenty six percent better than 217 00:13:35.120 --> 00:13:37.799 analysts. I've expected that. Amazon's just killing it on all cylinders. They're 218 00:13:37.840 --> 00:13:41.440 just firing. Yeah, and ever since they kind of moved away from their 219 00:13:41.480 --> 00:13:46.120 pharmacy thing, which is the only thing that really didn't kill it. They've 220 00:13:46.159 --> 00:13:48.440 continued to grow at the rate that they're projected. Well, was that again, 221 00:13:48.440 --> 00:13:52.440 I forgot about their pharmacy. It was some pharmacy RX thing that they 222 00:13:52.440 --> 00:13:54.399 really thought was going to take off, kind of like a good r extra. 223 00:13:54.559 --> 00:13:58.639 Yeah, Mark Cubans cost plus drugs, right, you know, at 224 00:13:58.679 --> 00:14:01.200 face value, it makes sense. You think it's it's gonna work. It's 225 00:14:01.240 --> 00:14:05.799 surprising that it didn't. But that was the only really thing that doesn't work. 226 00:14:05.919 --> 00:14:09.240 You know. Dave always talks about these Amazon stores that they're coming out 227 00:14:09.279 --> 00:14:13.879 with and with the palm readers and whole foods. Yeah, it's a very 228 00:14:13.919 --> 00:14:20.279 interesting way to combat the shoplifting. Absolutely. I mean, if you put 229 00:14:20.279 --> 00:14:24.840 a barrier of entry to shoplifting, as in I have to scan my palm 230 00:14:24.840 --> 00:14:28.960 every single time or don't or don't walk into the store, you know it's 231 00:14:30.000 --> 00:14:31.720 there, you can choose a different store, right right, And I think 232 00:14:31.759 --> 00:14:35.960 that is a very interesting way of you know, if you're a business owner, 233 00:14:35.960 --> 00:14:37.399 Oh, I might have to pay a lot of money the security system, 234 00:14:37.440 --> 00:14:41.360 but does it save me money on what I'm losing shoplift that's kind of 235 00:14:41.559 --> 00:14:48.240 gonna navigate towards. It's kind of it opens up vulnerability to these smaller I 236 00:14:48.240 --> 00:14:52.039 guess smaller businesses that don't can't afford something like that. So well we see 237 00:14:52.919 --> 00:14:54.960 people starts to shoplift from mom and Dad's grocery store. I don't know, 238 00:14:56.639 --> 00:15:00.320 yeah, I mean, you know, technology has it does two things. 239 00:15:00.440 --> 00:15:05.039 It either condenses and creates more centralization, or it creates more freedom, more 240 00:15:05.080 --> 00:15:09.360 decentralization. Amaz sometimes have to take the good with the bad. Amazon also 241 00:15:09.440 --> 00:15:13.799 said that it's retail businesses enjoyed a record breaking holiday shopping season. That's kind 242 00:15:13.799 --> 00:15:16.759 of surprising to me, just because I guess, no, it's not. 243 00:15:18.080 --> 00:15:20.679 It's not surprising to me. But I would think that the consumer cares about 244 00:15:20.679 --> 00:15:24.720 their twenty six point four APR in the credit card. But they surely don't. 245 00:15:24.919 --> 00:15:26.720 No, of course not. I mean, when you really think about 246 00:15:26.759 --> 00:15:30.960 what happened in twenty twenty the pandemic hit, no one wants to spend money 247 00:15:30.960 --> 00:15:33.559 because no one knows if they're gonna have a job next year. Twenty twenty 248 00:15:33.639 --> 00:15:37.080 one hits. You're still pretty timid about that. December and you're very close 249 00:15:37.120 --> 00:15:41.440 to that COVID twenty twenty two is where you started to finally maybe get a 250 00:15:41.440 --> 00:15:45.039 little more. I'm gonna make those big purchase items again. Twenty three. 251 00:15:45.120 --> 00:15:48.399 It's like COVID was in the rear vere mirror. Let's have some fun. 252 00:15:48.639 --> 00:15:50.279 We've been pent up. We need to make sure that we get all the 253 00:15:50.320 --> 00:15:52.320 gifts that we haven't got our family in those years. So I feel like 254 00:15:52.360 --> 00:15:56.360 that's kind of what we saw. And I remember reading a report in December 255 00:15:56.360 --> 00:15:58.639 about the doomsday spending, you know, and saying that, you know, 256 00:16:00.000 --> 00:16:03.360 we're just gonna load up those credit cards in December and not really have the 257 00:16:03.399 --> 00:16:06.399 ability to spend much more as we get into twenty twenty four, and that 258 00:16:06.440 --> 00:16:11.440 could eventually hurt some of those retail stocks. We haven't seen that yet either. 259 00:16:11.440 --> 00:16:14.000 It seems like people will just find ways to get more and more credit. 260 00:16:14.360 --> 00:16:18.759 Dean always talks about on the show how he can't find where this extra 261 00:16:18.840 --> 00:16:22.759 money's coming from. Right, there's so much money in this system that continues 262 00:16:22.799 --> 00:16:26.360 to be added and poured into these super six stocks and even the stock market 263 00:16:26.399 --> 00:16:27.360 as a whole. I mean, we're at new time, all new, 264 00:16:27.360 --> 00:16:30.759 all time hives. Gotta be something with I think maybe one or two months 265 00:16:30.759 --> 00:16:33.519 ago, we reade a stat that said that this is the most money that 266 00:16:34.039 --> 00:16:37.399 money markets have ever had. Certainly is a huge part of this is that 267 00:16:37.440 --> 00:16:40.440 money coming out of the money market. I'm saying, you know what, 268 00:16:40.519 --> 00:16:41.799 I have a little bit of fommo. Let's throw it into video, Let's 269 00:16:41.799 --> 00:16:45.799 throw it into meta apple. You know, absolutely, that's part of it. 270 00:16:45.879 --> 00:16:48.639 I mean one hundred percent. Another thing that people don't realize, and 271 00:16:48.679 --> 00:16:51.639 this gets a little more detailed, but the Federal Reserve has a lot of 272 00:16:51.720 --> 00:16:56.320 tools in their bucket to help organizations and companies that don't have the liquidity they 273 00:16:56.360 --> 00:17:00.559 need to take care of some of their obligations. Some of those obligations could 274 00:17:00.600 --> 00:17:06.440 be as simply as paying back the depositors that they owe if they're a bank, 275 00:17:06.519 --> 00:17:10.759 right could be paying off a loan. Certain things happen in organizations where 276 00:17:10.880 --> 00:17:15.200 they have to meet liabilities, and if they can't because of their assets being 277 00:17:15.240 --> 00:17:18.440 a liquid then what happens the Federal Reserve is that last stop option, that 278 00:17:18.640 --> 00:17:22.720 last resort lender, that person that is in the marketplace that has something that 279 00:17:22.759 --> 00:17:26.039 no one else has in the world called a money printer, and they can 280 00:17:26.079 --> 00:17:30.519 do it on the World Reserve currency. When they do that, for all 281 00:17:30.519 --> 00:17:33.799 these regional banks that had trouble last year in March, they were shored up 282 00:17:34.240 --> 00:17:38.079 by this bank reserves cash that was created by the Federal Reserve. A lot 283 00:17:38.119 --> 00:17:41.880 of people think all cash created by the Federal Reserve is inflationary. It's not. 284 00:17:42.119 --> 00:17:47.440 Actually, there's different types of money to FED creates and gets very complicated, 285 00:17:47.480 --> 00:17:48.680 and I'm not going to spend too much time on it, but I'm 286 00:17:48.759 --> 00:17:53.680 just letting you know there's ways for banks to get money that isn't truly money. 287 00:17:53.680 --> 00:17:56.799 It's not money you can take to the grocery store and spend. It's 288 00:17:56.799 --> 00:18:00.240 really just used as collateral. And that's how banks can get around certain liquidity 289 00:18:00.279 --> 00:18:04.880 issues that they found themselves in last year. And that allows the entire system 290 00:18:04.920 --> 00:18:08.599 to not unravel, because when you have to start meeting obligations, what happens. 291 00:18:10.079 --> 00:18:11.759 You have to close accounts, you have to pay off accounts, you 292 00:18:11.799 --> 00:18:15.640 get margin called money gets sucked out of the system. So no one really 293 00:18:15.640 --> 00:18:22.359 wants that. They're okay with basically continuing the charade by posting more debt on 294 00:18:22.400 --> 00:18:25.519 top of debt on top of debt. Therefore, no one ever has to 295 00:18:25.559 --> 00:18:29.000 get that margin call, and the money never actually leaves the system. What 296 00:18:29.119 --> 00:18:33.119 is it the American dream? Leveraging other people's money for your own benefit to 297 00:18:33.160 --> 00:18:37.880 an extent? For sure? Now, Dollar Tree had an interesting week. 298 00:18:38.039 --> 00:18:42.480 Shares of the discount retailer popped nearly two percent on Monday after JP Morgan upgraded 299 00:18:42.519 --> 00:18:48.440 them to overweight from neutral. The bank cited higher profitability and a larger total 300 00:18:48.480 --> 00:18:52.559 addressable markets. Potential tailwinds get removed. Dollar Tree. You know that seems 301 00:18:52.599 --> 00:18:57.200 like continue to be a good value play there. American Airlines, we exited 302 00:18:57.599 --> 00:19:00.599 some of our jets positions a couple of weeks ago. Is we just didn't 303 00:19:00.799 --> 00:19:06.039 see the real catalyst for airlines going forward. It seems everything that could be 304 00:19:06.079 --> 00:19:10.279 good for airlines is right now. Right, there's oils semwi low, people 305 00:19:10.279 --> 00:19:14.079 are traveling, planes are booked up. The only thing that's its cruise shifts 306 00:19:14.119 --> 00:19:17.160 are going right. I mean, the one thing that's interesting is these immigrants. 307 00:19:17.200 --> 00:19:19.920 They are getting free, potentially free airline tickets on these planes. Chip 308 00:19:19.920 --> 00:19:23.240 it into their profits, is it? Or is the government subsidizing these You 309 00:19:23.240 --> 00:19:26.119 know, likely the government's paying for them, which means we're paying for them. 310 00:19:26.160 --> 00:19:32.160 But that's an incredibly interesting story about how many people are is telling us 311 00:19:32.200 --> 00:19:37.559 about these lines of immigrants they're seeing at the airport getting on the same planes 312 00:19:37.559 --> 00:19:41.519 they're getting on to going into random places of the country New York, Florida. 313 00:19:41.279 --> 00:19:45.799 I mean places you would never think they're sending migrants. I think one 314 00:19:45.799 --> 00:19:48.440 of my biggest concerns with that, and I know that you were hesitant to 315 00:19:48.480 --> 00:19:51.920 agree with me on this, is the safety precautions of this. I mean, 316 00:19:52.119 --> 00:19:55.039 we don't know who these people are. We don't know like what what 317 00:19:55.079 --> 00:19:57.039 documentation do they have to bring on to get to get onto the plane. 318 00:19:57.079 --> 00:20:00.240 I know that they have to go through a TSA checkpoint, right Yeah. 319 00:20:00.240 --> 00:20:02.359 I mean, look at the end of the day, our TSA, it's 320 00:20:02.400 --> 00:20:04.000 a fine tooth calm. They're going to find something if they have anything. 321 00:20:04.039 --> 00:20:07.039 But not only that, realized that before they even got to TSA, they 322 00:20:07.880 --> 00:20:11.119 were shaken down by border patrol. So there's a couple levels. You know, 323 00:20:11.160 --> 00:20:15.559 I would worry more about domestic terrorism than immigrants coming over and doing it 324 00:20:15.559 --> 00:20:18.799 through a plane. I mean, that's there's a lot of barriers of entry 325 00:20:18.839 --> 00:20:22.559 there. But in terms of just what we are seeing right now in the 326 00:20:22.680 --> 00:20:26.839 in the division of this country. That's what's scary, because it doesn't seem 327 00:20:26.920 --> 00:20:30.680 like the threat is almost always going to be external at this point, it's 328 00:20:30.680 --> 00:20:34.119 going to come from inside of us because we're so divided, and that's what's 329 00:20:34.160 --> 00:20:37.759 the concern is. But going back to airlines, it doesn't seem like it's 330 00:20:37.799 --> 00:20:41.400 a great place to be in just because everything looks great right now, and 331 00:20:41.400 --> 00:20:45.039 how much better could it get? Where are they going? Where do you 332 00:20:45.039 --> 00:20:48.480 think they're taking them? They're taking them to these sanctuary cities. I mean 333 00:20:48.519 --> 00:20:51.599 technically they are sanctuary cities. They just never got immigrants in the first place, 334 00:20:51.640 --> 00:20:53.960 because if you're an immigrant walking from Mexico to Arizona, who wants to 335 00:20:55.000 --> 00:20:57.160 walk from Arizona New York? I mean that's not realistic. Now they have 336 00:20:57.160 --> 00:21:00.720 the actual opportunity to get to these places, these sanctuary cities quote unquote, 337 00:21:00.759 --> 00:21:03.279 that we're never actually able to be getting to in the first place. What 338 00:21:03.359 --> 00:21:07.119 is a sanctuary city. It's just a city that you know, they're saying 339 00:21:07.119 --> 00:21:11.440 that we're we accept immigrants, we help immigrants, and we help you know, 340 00:21:11.519 --> 00:21:15.720 supply certain benefits that they need to get on their feet. And it's 341 00:21:15.799 --> 00:21:18.000 just as if NYPD doesn't have enough issues as it is, all right, 342 00:21:18.119 --> 00:21:22.160 all right, well it's more of a virtue signaling thing than anything to make 343 00:21:22.200 --> 00:21:25.759 themselves feel good about what they're doing. But yeah, you know, it's 344 00:21:25.920 --> 00:21:29.920 very interesting. I Robot continues to be a slump of a stock because of 345 00:21:29.920 --> 00:21:33.759 what happened with their termination of a planned merger they had with the Amazon, 346 00:21:33.079 --> 00:21:37.519 citing no path to regulatory approval. I Robot also said it would have to 347 00:21:37.559 --> 00:21:41.880 cut thirty one percent of its staff, about three and fifty employees, and 348 00:21:41.920 --> 00:21:45.599 the CEO has stepped down, So it's messed up. Yeah, my opinion. 349 00:21:45.960 --> 00:21:48.200 You know that if they made a good product, let them use it, 350 00:21:48.359 --> 00:21:51.160 let them sell it on Amazon. Yeah. You know, I was 351 00:21:51.160 --> 00:21:55.920 talking to this about a client the other day about regulation has its place, 352 00:21:56.559 --> 00:22:02.720 but in every true sense of regulation, you're impeding technology and impeding research and 353 00:22:02.759 --> 00:22:07.640 development. And what that hurts is the production of new technologies that can be 354 00:22:07.720 --> 00:22:11.279 cru that can really help people in this world. Right. Yes, at 355 00:22:11.279 --> 00:22:14.640 the end of the day, money is the motive, but that money motivation 356 00:22:14.960 --> 00:22:17.400 gives us some of the greatest things that we all use to this day. 357 00:22:17.920 --> 00:22:22.039 Right, So you have to take the good with the bad. Motivation comes 358 00:22:22.079 --> 00:22:25.519 with incentives. Incentives that's going to be money at the end of the day 359 00:22:25.519 --> 00:22:29.039 for these companies to produce the type of things we want. And so these 360 00:22:29.079 --> 00:22:33.079 regulations, to me, it really hurts capitalism at its fine, it's what 361 00:22:33.079 --> 00:22:34.559 it's really supposed to be. It hurts the business owner and it hurts the 362 00:22:34.599 --> 00:22:40.640 consumer that wants the I robot right. So Far I had another great week. 363 00:22:40.720 --> 00:22:44.519 Shares of the financial services provider search twenty one percent after the company reported 364 00:22:44.519 --> 00:22:49.079 its fourth quarter fiscal results. So Far posted earnings of two cents above expectations. 365 00:22:49.119 --> 00:22:52.079 They continue to do really well. I mean for people who don't know, 366 00:22:52.079 --> 00:22:57.319 they had a lot of success when insustrates were low, reconsolidating student loan 367 00:22:57.359 --> 00:23:03.640 debt to smaller rates. But in general they're really good just refinance financial services, 368 00:23:03.640 --> 00:23:04.960 and they're coming in with their own banking and things like that. I 369 00:23:04.960 --> 00:23:07.759 was gonna say, have you ever have you been able to buy stocks through 370 00:23:07.799 --> 00:23:10.880 so FI, because I'm pretty sure that I saw that's a new thing. 371 00:23:11.200 --> 00:23:14.680 I Mean, my my favorite Chargers quarterback Justin Herbert, is one of their 372 00:23:14.720 --> 00:23:18.880 spokespeople at so Far. So I'm always learning more stuff about SOFI than I 373 00:23:18.920 --> 00:23:26.599 don't your chargers sucks least you're though too. Yeah, go Niners economic Well, 374 00:23:26.599 --> 00:23:30.480 actually no, you know what's interesting this week FanDuel talking about sports. 375 00:23:30.480 --> 00:23:34.039 We had a sports gambling FanDuel site. They are actually owned by a company 376 00:23:34.039 --> 00:23:38.759 called Flutter. Flutter iPod on the New York Stock Exchange. I was actually 377 00:23:38.759 --> 00:23:41.640 on another exchange first, but now it's on the New York Stock Exchange. 378 00:23:41.759 --> 00:23:47.240 So if you're looking for another place other than DraftKings, Flutter owns FanDuel. 379 00:23:47.359 --> 00:23:51.480 So that's a fltr is the ticker for that. Used to be on the 380 00:23:52.000 --> 00:23:53.960 London Stock Exchange, now it's on the New York se used to me the 381 00:23:55.039 --> 00:23:56.720 draft things are still front running that whole market. Well, you know, 382 00:23:56.799 --> 00:24:00.319 FanDuel technically owns a little more of the market share of the mobile gambling space, 383 00:24:00.400 --> 00:24:03.799 but DraftKings is right at their hills. Draftings gonna report earnings in a 384 00:24:03.839 --> 00:24:07.319 couple of weeks, potentially could hit profitability for the first time in that company's 385 00:24:07.359 --> 00:24:11.240 history. Very interesting. So we're coming up on the first segment of the 386 00:24:11.240 --> 00:24:15.599 first hour. We appreciate you all listening to the Money Matter Show again. 387 00:24:15.680 --> 00:24:18.880 Dean and Dylan and Dave. We'll all be back next week and we'll be 388 00:24:18.960 --> 00:24:22.400 right back with the second hour, well the second segment of the first hour 389 00:24:22.440 --> 00:24:30.079 of The Money Matters Show. Thanks for listening. Welcome back to The Money 390 00:24:30.079 --> 00:24:33.640 Matter Show. My name is Todd Click Junior. I'm here with Todd Lick 391 00:24:33.839 --> 00:24:40.720 Senior, our special guest as well Sebastian Boarsini. Toddlick sor is the head 392 00:24:40.759 --> 00:24:44.440 of purchasing at a custom home builder named A. F. Sterling here locally 393 00:24:44.440 --> 00:24:47.559 in Tucson. Wanted to bring him on the show because first of all, 394 00:24:47.680 --> 00:24:51.279 he is my father. Second of all, AF Sterling I've actually known for 395 00:24:52.000 --> 00:24:56.039 since I was probably nine ten years old, actually worked with him a couple 396 00:24:56.079 --> 00:25:00.079 of times. Very interesting company, and they're more on the custom side of 397 00:25:00.119 --> 00:25:02.400 home production. You know, when you're looking at home production, you're going 398 00:25:02.440 --> 00:25:04.200 to see the new homes and you're going to see the custom homes. New 399 00:25:04.200 --> 00:25:07.039 homes are those production builders, the Kbs, the d R Hortons, the 400 00:25:07.039 --> 00:25:11.839 Poulties, and then you have some of the custom builders that really tailored to 401 00:25:11.880 --> 00:25:15.759 some of the more optionality style homes that you could have. So Todd Lick, 402 00:25:17.160 --> 00:25:18.559 welcome to the show. Thank you for having me. Appreciate you being 403 00:25:18.599 --> 00:25:22.279 here all right, So first, you know what we want to talk about 404 00:25:22.359 --> 00:25:29.319 is obviously rates rates in those housing world have a huge impact and the easiest 405 00:25:29.359 --> 00:25:33.079 way to describe it is your mortgage payments probably double than what it was two 406 00:25:33.160 --> 00:25:36.599 years ago, so people trying to qualify for homes is harder now. That 407 00:25:36.759 --> 00:25:41.759 usually isn't something that has too much impact in your business because new home builders 408 00:25:41.799 --> 00:25:44.799 are the ones that are really trying to qualify, right, And so the 409 00:25:45.240 --> 00:25:51.480 drs, the Poulty, the KB homes, they're not really necessarily going. 410 00:25:51.680 --> 00:25:56.680 You don't have the big buyers that need they all their buyers need financing predominantly, 411 00:25:56.960 --> 00:25:59.799 right, so they care a lot about rates and impacts their business. 412 00:26:00.480 --> 00:26:03.480 When you get into the custom side, sometimes you're doing cash offers, rates 413 00:26:03.519 --> 00:26:06.319 don't have anything to do with it. Sometimes you're doing a very low financing, 414 00:26:06.400 --> 00:26:07.960 Rates have nothing to do with it. So how has those rates impacted 415 00:26:08.079 --> 00:26:11.319 the custom side of building compared to what you've seen on the new home side. 416 00:26:11.400 --> 00:26:14.720 Yeah, so just to clarify it is Sterling, right, we do 417 00:26:14.799 --> 00:26:18.799 production and custom and we do we dabble, we commercial and recuse of multi 418 00:26:18.799 --> 00:26:26.160 family housing. We're in apartments as well, so we kind of dabble in 419 00:26:26.160 --> 00:26:29.559 a little bit of everything, stay diversified in this market. In this market, 420 00:26:29.559 --> 00:26:32.839 that's ever changing, that's for sure. But the rates, You're right. 421 00:26:33.839 --> 00:26:37.640 We have some subdivisions that are definitely entry level which are in need of 422 00:26:37.640 --> 00:26:41.799 the financing. We have some that are in the custom side that need little 423 00:26:41.799 --> 00:26:45.079 to know financing, to be honest, So you're right, it does change. 424 00:26:45.119 --> 00:26:48.519 But it affects every market no matter what, whether entry level or high 425 00:26:48.599 --> 00:26:53.880 end, it's going to affect you at some point. And the numbers obviously 426 00:26:53.920 --> 00:26:57.640 have shown that even the higher end market, even though it's still there, 427 00:26:57.799 --> 00:27:02.039 it still has people pulled back. They can't afford what they used to be 428 00:27:02.119 --> 00:27:04.799 able to afford. So the rates have definitely took a hit on that. 429 00:27:06.519 --> 00:27:10.240 Another thing I wanted to talk about is labor, right because labor issues have 430 00:27:10.359 --> 00:27:15.440 continuously been a predominant thing in this area because of some of the things that 431 00:27:15.519 --> 00:27:18.920 happened eight years ago, ten years ago, and a lot of it has 432 00:27:18.960 --> 00:27:23.680 to do with immigration policy. We spend a little time talking about how labor 433 00:27:23.720 --> 00:27:26.240 has been impacted, what it was fifteen, ten years ago, what it 434 00:27:26.279 --> 00:27:30.519 looks like now, and what are the struggles So labor is definitely a huge 435 00:27:30.559 --> 00:27:36.680 issue. And to touch base on that, when Tucson was at its highest 436 00:27:36.680 --> 00:27:41.839 point ever building and we were just going nuts, we were just below twelve 437 00:27:41.880 --> 00:27:45.920 thousand permits in Tucson. To put that in perspective, these days were around 438 00:27:47.039 --> 00:27:48.799 the last couple of years have been around thirty four to thirty eight hundred. 439 00:27:49.319 --> 00:27:53.039 Kind of anticipating that again this year. This is coming up year roughly, 440 00:27:53.119 --> 00:27:59.000 depending obviously on rates and the market. The market's there, but we did 441 00:27:59.079 --> 00:28:00.839 what year did you have your high? That was probably around O five oh 442 00:28:00.880 --> 00:28:04.400 six, and then the market crash in like battle seven, and so when 443 00:28:04.400 --> 00:28:08.039 it crashed in oh seven, Uh, that's when really a lot of stuff 444 00:28:08.079 --> 00:28:14.720 declined, right. The market took a huge hit. Labor businesses closed, 445 00:28:14.720 --> 00:28:17.480 a lot of the local businesses, a lot of the contractors closed up shop. 446 00:28:17.480 --> 00:28:19.160 They couldn't they couldn't make it anymore. A lot of our labor left, 447 00:28:19.200 --> 00:28:22.920 the SB ten seventy, the e Verify, A lot of our labor 448 00:28:22.920 --> 00:28:26.759 left to other states. Because that was a huge impact. And talk about 449 00:28:26.759 --> 00:28:30.799 that because I don't think a lot of people know about what was E forty. 450 00:28:32.200 --> 00:28:34.160 Yeah, SB ten seventy and the EVE Air five. So that was. 451 00:28:34.440 --> 00:28:37.799 These were programs that were set up really to kind of bring some of 452 00:28:37.799 --> 00:28:44.039 the labor force from you know, immigrants and have them work on your production. 453 00:28:44.079 --> 00:28:48.920 And obviously they're probably cheaper than regular labor. But that changed at a 454 00:28:48.920 --> 00:28:55.240 certain point. What happened, well, I mean when people left and you 455 00:28:55.279 --> 00:28:57.599 know, it started to try to tick back up again, but people never 456 00:28:57.640 --> 00:29:00.400 came back to Tucson. When they left, they never came back. It 457 00:29:00.480 --> 00:29:04.440 drove people out of Tucson and absolutely the labor force and a huge labor force 458 00:29:04.480 --> 00:29:08.079 for us. We're Hispanics, and so when they're forced out to go find 459 00:29:08.079 --> 00:29:11.440 a living, to make their families, to support their families, you know, 460 00:29:11.519 --> 00:29:15.759 it was outside of the Arizona market. So that really hit us hard 461 00:29:15.759 --> 00:29:19.039 and still hitting us to this day. The market, the labor market's not 462 00:29:19.119 --> 00:29:22.599 going down. It's very thin, it's hard. It's big for the high 463 00:29:22.599 --> 00:29:29.000 schools to be involved with with those programs to bring people up into the into 464 00:29:29.039 --> 00:29:33.200 the trade market because there's a there's a very good living in the trade market. 465 00:29:33.480 --> 00:29:36.720 But I don't think people well, let's recognize I mean SABA, an 466 00:29:36.839 --> 00:29:40.640 organization that Greenberg's with as well as I believe they have Sterling, correct, 467 00:29:40.759 --> 00:29:45.079 we are. Southern Arizona home Builders Association put on a construct Construct Construction Career 468 00:29:45.160 --> 00:29:48.480 Days. I don't know, like I said, construction Career Days, and 469 00:29:48.519 --> 00:29:51.839 there was like what fourteen high schools or something like that all came to this. 470 00:29:51.880 --> 00:29:56.079 It was over four thousand students learning about trades, learning about the things 471 00:29:56.079 --> 00:30:00.240 that they can do. Because we all know everyone wants to be talk stars 472 00:30:00.319 --> 00:30:03.279 or even worse right, that's part of the problem is some of the younger 473 00:30:03.319 --> 00:30:07.880 generation is not going out in the workforce. They want to stay at home, 474 00:30:07.359 --> 00:30:14.279 they want to work from home TikTok stars or other websites. So it's 475 00:30:14.319 --> 00:30:17.119 it's very challenging, and that's what we're trying to do is get the younger 476 00:30:17.119 --> 00:30:22.640 generation to learn about a trade or educate them about the money that's involved in 477 00:30:22.680 --> 00:30:26.720 being involved in a trade. More than that, I think, yeah, 478 00:30:26.759 --> 00:30:29.319 the money part, I mean, it's just a no brainer. If you're 479 00:30:29.359 --> 00:30:32.200 someone who doesn't have a GED, or even if they do have a GD, 480 00:30:32.319 --> 00:30:33.559 but you're having a hard time finding a job that you can really give 481 00:30:33.559 --> 00:30:37.480 you somebody that's holds not their thing. You know, you and I both 482 00:30:37.519 --> 00:30:40.759 went to school and if I wouldn't have went to college. I'd go do 483 00:30:40.880 --> 00:30:44.000 trade because there's so much money in that. I had somebody at my house 484 00:30:44.039 --> 00:30:45.920 the other day, paid him twelve hundred dollars. She was there for two 485 00:30:45.920 --> 00:30:51.160 hours. What happens hard work, right, That's what people are afraid of. 486 00:30:51.279 --> 00:30:53.920 Hard work. It's not easy. There's not something you're going to anything 487 00:30:53.960 --> 00:30:56.480 easy though, exactly. That's the whole point. Everyone's got to work for 488 00:30:56.519 --> 00:31:00.079 someone to work. And it's for anyone listening to this show, or any 489 00:31:00.079 --> 00:31:03.880 one has kids that is listening to the show who don't know what they should 490 00:31:03.880 --> 00:31:07.440 do. Get them in touch with labor. Even get in touch with a 491 00:31:07.480 --> 00:31:10.680 home builder and they'll tell you where they need labor. The moment, especially 492 00:31:10.680 --> 00:31:14.039 with all these college prices just increasing dramatically, Like you know, if you 493 00:31:14.039 --> 00:31:17.640 can't afford it, there's other avenues that you could go about and make money, 494 00:31:18.000 --> 00:31:21.440 exactly, And there's plenty of trade schools, great trade schools here. 495 00:31:22.160 --> 00:31:23.039 You don't have to you don't got to spend all the money in the world 496 00:31:23.079 --> 00:31:27.440 and go send in a gender inequality class, you know exactly. Exactly. 497 00:31:27.440 --> 00:31:30.960 That probably means, you know, rates have been high. That's affected the 498 00:31:30.000 --> 00:31:36.880 market between labor, between labor being high rates being high. Land costers keep 499 00:31:36.920 --> 00:31:40.880 going up. It's hard to make stuff pencils sometimes and so, and it's 500 00:31:40.920 --> 00:31:44.000 pushing people out of the market. Now the market's still there. Arizona is 501 00:31:44.440 --> 00:31:47.720 one of those four affordable states that people want to move to. Good climate, 502 00:31:48.640 --> 00:31:49.799 you can make good living. The problem is two sons a little behind 503 00:31:49.799 --> 00:31:55.079 the curve in regards to job opportunities as well growth. It's a very slow 504 00:31:55.160 --> 00:32:00.559 growth market, but people see opportunity in Arizona to come here and housing, 505 00:32:00.599 --> 00:32:02.240 which is there is a shortage of obviously well. And also you have two 506 00:32:02.240 --> 00:32:07.480 different realms of Arizona, right. You have the metropolis of Phoenix that is 507 00:32:07.559 --> 00:32:12.200 certainly high growth, and there's not different market than TuS On, different market 508 00:32:12.200 --> 00:32:14.839 compared to what Tucson is even the rest of the state. I mean, 509 00:32:14.880 --> 00:32:17.680 really phoenixes is own state compared to what its growth rate is compared to the 510 00:32:17.720 --> 00:32:22.279 rest of absolutely so it makes a big difference in that term. So do 511 00:32:22.279 --> 00:32:27.000 you talk about materials costs just going up exponentially? Do you remember the time 512 00:32:27.039 --> 00:32:30.880 when lumber was just you know, went through the roofs and it's probably it's 513 00:32:30.880 --> 00:32:34.000 gone down since then. So do you still are these still chipping into your 514 00:32:34.000 --> 00:32:37.400 margins much so? Lumber wise is probably back to pre COVID. COVID probably 515 00:32:37.440 --> 00:32:39.799 the worst two years of my home building life. To be honest with you, 516 00:32:39.920 --> 00:32:44.039 I couldn't I couldn't get labor, I couldn't get materials. I got 517 00:32:44.039 --> 00:32:46.200 cost increase every week, couldn't control it. It was take it or leave 518 00:32:46.200 --> 00:32:49.240 it, or we're not showing up. It already a contract or in you 519 00:32:49.319 --> 00:32:52.200 had to fulfill it, and it was like take it or not showing up, 520 00:32:52.240 --> 00:32:53.759 sign it or we're not going. So we were pretty much at the 521 00:32:53.799 --> 00:32:58.759 mercy of the market. So it's definitely come lumbers come back down to a 522 00:32:58.759 --> 00:33:02.359 sustainable rate, and other stuff hasn't. Every year you're still getting an increase 523 00:33:02.400 --> 00:33:07.240 in January from from you know, applying to from electrician, from just a 524 00:33:07.240 --> 00:33:10.400 lot of things, the material, the volatile market, and so you can 525 00:33:10.440 --> 00:33:15.359 only sustain that. Although, like I said, Tucson's relatively cheap in comparison 526 00:33:15.400 --> 00:33:19.039 to the rest of it nationally, but we got to look, we're more 527 00:33:19.319 --> 00:33:22.680 focused on Arizona and locally versus nationally, and nationally you can only take so 528 00:33:22.759 --> 00:33:25.960 much of that information. Although nationally you know they are. It's still building 529 00:33:27.000 --> 00:33:30.799 across the nation is still pretty strong, which is pushing prices and pushing products 530 00:33:30.799 --> 00:33:34.640 to get higher and higher. So are those prices that are going higher and 531 00:33:34.720 --> 00:33:37.799 higher? Can you include labor within? That's just because absolutely labor is a 532 00:33:37.799 --> 00:33:39.519 big part of that driving factor. The only reason that I asked that is 533 00:33:39.519 --> 00:33:43.079 because, like you say, we have a big immigration thing going on here 534 00:33:43.119 --> 00:33:45.279 in Tucson, So that to me, You know, if you could go 535 00:33:45.359 --> 00:33:50.200 find somebody to work for you for a lesser cost, it puts a downward 536 00:33:50.240 --> 00:33:53.880 pressure on price of labor. People. You know that we're working here, 537 00:33:53.960 --> 00:33:57.519 home builders are were working here. They might go elsewhere. They might go 538 00:33:57.559 --> 00:34:00.960 to Montana, who knows right, to be honest, there's a lot of 539 00:34:00.960 --> 00:34:05.480 people doing work here out of state too as well. So but yeah, 540 00:34:05.519 --> 00:34:09.119 the labor market is continue. Some stuff has stabilized, some materials and things 541 00:34:09.159 --> 00:34:13.159 of that nature, but the labor market's still climbing. I mean there's not 542 00:34:13.239 --> 00:34:16.320 There's a very small pool to pool from, and everyone's pulling from that same 543 00:34:16.360 --> 00:34:21.119 pool. So all the rivers are chasing that for that one guy, you 544 00:34:21.159 --> 00:34:22.559 know what I mean, or that little small amount, So there's only so 545 00:34:22.599 --> 00:34:27.079 many. It's not like that pool keeps growing. It's say there's one hundred 546 00:34:27.079 --> 00:34:30.599 people, there's six. You know, there's sixty riffing companies. They're all 547 00:34:30.599 --> 00:34:32.119 pulling from those hundred. They're going jobs. They're pulling guys. And I'll 548 00:34:32.159 --> 00:34:35.440 give you a truck, right, I'll give you ten grand signing bonus. 549 00:34:35.440 --> 00:34:37.599 You stay with us a year and you got to stay competitive. Yeah, 550 00:34:37.639 --> 00:34:39.199 and you got to stay and you got and you know, you're either gonna 551 00:34:39.239 --> 00:34:43.280 rise up or sink. And that's kind of where it's been. So it's 552 00:34:43.320 --> 00:34:45.159 it's been tough. It's been challenging. Like I said, that's why we've 553 00:34:45.199 --> 00:34:47.920 kind of diversified our business. We do the customs, we do production, 554 00:34:49.039 --> 00:34:52.079 we do apartment build we do you know, commercial and multi family. So 555 00:34:52.840 --> 00:34:57.840 in our aspect being a smaller local company, you know that that's kind of 556 00:34:57.840 --> 00:35:01.039 where we have to we don't have We have a different kind of mindset in 557 00:35:01.079 --> 00:35:05.280 regards to the nationals, you know, and nationals have a little more flexibility 558 00:35:05.280 --> 00:35:09.800 in regards to cash flow and and how they can uh uh shift numbers around 559 00:35:09.840 --> 00:35:13.079 and whatnot. How you want to have ever you want to play the game. 560 00:35:13.559 --> 00:35:17.320 But buying down buying down rates is huge for especially in the entry first 561 00:35:17.320 --> 00:35:22.039 time Uh move up market. Uh that's a that's a huge and that's that's 562 00:35:22.039 --> 00:35:23.519 the way they can they can do that. I mean always the first of 563 00:35:23.519 --> 00:35:28.079 the quarter always starts out strong. Permits are gonna be high. They got 564 00:35:28.079 --> 00:35:30.599 to get specs out there, They got to get the numbers rolling, and 565 00:35:30.639 --> 00:35:34.159 as you see, typically as the year goes on, it kind of dips 566 00:35:34.199 --> 00:35:37.400 down because they got to get the front end. It's numbers. It's numbers. 567 00:35:37.440 --> 00:35:40.239 So well, we appreciate all this information. I love having you on 568 00:35:40.280 --> 00:35:44.559 the show. We're coming up on the break here, so I appreciate you 569 00:35:44.599 --> 00:35:47.239 again coming in in your busy schedule, and we will be right back for 570 00:35:47.320 --> 00:35:51.199 the Thang Bang Niner Gang. Let's go, Yeah, go Niners at the 571 00:35:51.199 --> 00:35:53.440 super Bowl. All right, we'll be right back at the second third segment 572 00:35:53.440 --> 00:35:55.679 of the first hour of The Money Matter Show. Thank you for listening. 573 00:36:00.440 --> 00:36:02.079 Welcome back to The Money Matter Show. My name is Todd Glick Junior. 574 00:36:02.079 --> 00:36:06.719 I'm here with Sebastian Barsinian. We want to bring on toglic Senia one more 575 00:36:06.719 --> 00:36:10.079 time because we've had an interesting topic about the build for rent section here in 576 00:36:10.159 --> 00:36:15.679 Tucson, because as everyone knows, when rates get high, that means mortgage 577 00:36:15.679 --> 00:36:17.599 payments get high. So people first of all might say, wow, these 578 00:36:17.599 --> 00:36:22.239 rents are high, they're equally what mortgage payments would be. Why am I 579 00:36:22.400 --> 00:36:24.320 not just gonna get out there and get a mortgage. Well, what people 580 00:36:24.360 --> 00:36:29.719 don't realize is there's something called qualifying for a mortgage. Yeah, not only 581 00:36:29.760 --> 00:36:31.559 do you have to qualify for the mortgage, there's something else, but to 582 00:36:31.639 --> 00:36:37.280 have the down deposit the down Yeah, that's the problem I think right now, 583 00:36:37.360 --> 00:36:40.239 and that's where the bill for rent is coming into play, is that 584 00:36:40.320 --> 00:36:44.480 it's that's gonna be a big market. People can afford the mortgage or the 585 00:36:44.760 --> 00:36:47.599 or the monthly rent, they just don't have that money for the down payment, 586 00:36:47.599 --> 00:36:51.320 which is huge. And a lot of people are one catastrophe away from 587 00:36:51.360 --> 00:36:54.559 losing losing things. I mean you have a bad accident or a health issue 588 00:36:54.639 --> 00:37:00.039 or something. I mean they don't have that back income or the savings to 589 00:37:00.039 --> 00:37:04.000 be able to financially support themselves for a few months. And so I think 590 00:37:04.039 --> 00:37:07.599 that's this build for rent thing is going to be. As costs continue to 591 00:37:07.639 --> 00:37:12.440 claim, I think that's going to be a bigger bigger market in the Tucson 592 00:37:12.480 --> 00:37:15.760 area. Well, not only that you have home prices increasing, which means 593 00:37:15.760 --> 00:37:20.599 what down payments are constantly getting getting higher and higher yeap, and incomes are 594 00:37:20.599 --> 00:37:23.599 not increasing at the rate inflations and definitely not, definitely not. There's no 595 00:37:23.679 --> 00:37:27.599 way that you're going to be able to qualify better in five years unless you're 596 00:37:27.599 --> 00:37:30.480 getting a huge pay raise, right, unless you get a completely new job 597 00:37:30.599 --> 00:37:35.320 change. Correct, So people do find themselves in this really horrifying situation of 598 00:37:35.440 --> 00:37:38.559 am I ever going to own a home? And so you know, the 599 00:37:38.599 --> 00:37:42.599 build for rent, it doesn't mean that you are building equity into this, 600 00:37:42.719 --> 00:37:45.840 right correct. I mean it's truly a rental home, it is, but 601 00:37:45.880 --> 00:37:49.239 it's an actual home where it's an apartment or a condo and you actually have 602 00:37:49.320 --> 00:37:52.639 a home, so you have a backyard, you have your house, so 603 00:37:52.719 --> 00:37:55.079 it's like you live in a house. But a lot of people don't want 604 00:37:55.119 --> 00:37:58.679 the house, don't want to have that, you know what I mean, 605 00:37:58.760 --> 00:38:01.360 or don't want to have their own house to have to be able to uh 606 00:38:01.639 --> 00:38:06.599 spend on the upkeeping, maintenance and things of a house. So this works 607 00:38:06.599 --> 00:38:08.079 for them, and a lot of people maybe they're only going to be in 608 00:38:08.079 --> 00:38:10.960 two Sun for a couple of years works perfect for them. You know, 609 00:38:12.000 --> 00:38:15.079 they know they're going to spring fold military or even jobs depending on your job, 610 00:38:15.119 --> 00:38:17.960 you move around. So I mean, that's gonna that's gonna affect the 611 00:38:19.000 --> 00:38:22.679 home building market in general as well, I believe. So I'm thinking out 612 00:38:22.719 --> 00:38:27.239 loud here, this company that's producing these build for rent houses, that's a 613 00:38:27.280 --> 00:38:30.639 lot of money you got to put up absolutely right, because that money ain't 614 00:38:30.639 --> 00:38:34.800 coming into you for ten twenty years, and you know down the road before 615 00:38:34.880 --> 00:38:37.719 you really may maybe ten years at break even, twenty years where you start 616 00:38:37.719 --> 00:38:39.559 to see a nice profit, thirty years where you're really rolling, right, 617 00:38:39.599 --> 00:38:44.639 But it takes time for these type of projects. What are the potential pitfalls 618 00:38:44.639 --> 00:38:47.599 you think you think in this new niche of the housing market. Well, 619 00:38:47.679 --> 00:38:51.840 I mean the pitfall obviously is it's, like you said, long term. 620 00:38:51.880 --> 00:38:55.119 If someone pulls out damages to houses or you know, does certain things the 621 00:38:55.159 --> 00:38:58.559 houses, you're you're, like you said, you're left holding the bag. 622 00:38:58.880 --> 00:39:00.360 And it's long term game, right, it's not short term game. You're 623 00:39:00.360 --> 00:39:05.960 looking at the long term future. So obviously you got to have investors deep 624 00:39:05.960 --> 00:39:08.679 pockets and be able to carry this for quite some time. Uh. Like 625 00:39:08.719 --> 00:39:12.400 I said, I think it's gonna affect the new housing market definitely, because 626 00:39:12.840 --> 00:39:15.480 people can't afford it. Costs keep going up. They ain't going down. 627 00:39:15.599 --> 00:39:19.039 We all know that. It's just not even if rates come down a little 628 00:39:19.079 --> 00:39:22.360 bit, that will help, but we foresee it. It's never gonna be 629 00:39:22.360 --> 00:39:23.920 at what it was. Ever. Yeah, that's not how inflation works. 630 00:39:23.960 --> 00:39:27.800 Yeah, exactly, let's call something else. It's called deflation. Yeah, 631 00:39:28.079 --> 00:39:30.679 you ain't getting that yet. Yeah. I mean it may come down half 632 00:39:30.719 --> 00:39:34.679 point or whatever percent whatever, but it's not gonna it's not gonna dip dramatically 633 00:39:34.719 --> 00:39:37.159 like we've had it in the past. So you know, it's like you 634 00:39:37.199 --> 00:39:40.840 said, the inflation's going up. Uh, your salaries aren't going up matching 635 00:39:40.880 --> 00:39:45.239 what inflation is. So it's gonna be in the growth in Tucson. It's 636 00:39:45.239 --> 00:39:47.960 got to grow. We've got and we're behind the cover. We always have 637 00:39:49.039 --> 00:39:52.280 been. Tuson wanted to be a small town, small growth and didn't want 638 00:39:52.320 --> 00:39:54.199 to grow, and now they're being forced to. And now we're and we're 639 00:39:54.280 --> 00:39:59.159 chasing our tails on these on the freeways, on the overpasses, on on 640 00:39:59.159 --> 00:40:02.079 on all these things that we're so not ready for that. I think we 641 00:40:02.199 --> 00:40:07.360 got to get our arms around because it's coming. It is kind of fun 642 00:40:07.400 --> 00:40:09.440 to look at that from a thousand foot overview of what Tucson could be. 643 00:40:10.079 --> 00:40:13.880 I mean, the potential there is is very strong. You have a lot 644 00:40:13.920 --> 00:40:15.960 of Californians, a lot of out of states moving the state for a reason. 645 00:40:16.079 --> 00:40:20.679 I was just out in California with my family and they were saying, 646 00:40:21.079 --> 00:40:22.960 how much you're purchasing your home for. I'm thinking it's you know, it's 647 00:40:23.000 --> 00:40:25.639 pretty good. Three hundred and fifty thousand. That's kind of expensive. You 648 00:40:25.639 --> 00:40:29.800 know, that's not bad. Guess what they were like, three fifty What 649 00:40:29.840 --> 00:40:35.719 are you living in Styx? Like, no, I'm living because there you 650 00:40:35.719 --> 00:40:37.599 can't find a home cheaper than five hundred thousand. That's a port home there. 651 00:40:37.840 --> 00:40:39.639 That ain't a fun huh. I tell you what. It's not just 652 00:40:39.679 --> 00:40:43.920 California. I get a lot of Northwest Seattle, Washing are a lot of 653 00:40:43.920 --> 00:40:45.960 Midwest people want to get out of the snow. They want to get to 654 00:40:45.119 --> 00:40:49.000 an area where where it's good weather, climate too, and it's affordable. 655 00:40:49.079 --> 00:40:52.079 Like I said, you're getting people all over It's it's Nevada Arizona, Texas, 656 00:40:52.079 --> 00:40:54.960 and Florida, I think are the four states that'll continue to flourish. 657 00:40:55.039 --> 00:41:00.920 And there's so much room to grow here Marana forever. Yes, by all, 658 00:41:00.960 --> 00:41:02.119 you still got plenty of room out there. Soder, Well, that's 659 00:41:02.119 --> 00:41:06.800 what you're seeing. The big growth in Tucson is like southeast. You know 660 00:41:06.920 --> 00:41:09.639 those areas where you're kind of you're stretching out Twson more right, where land 661 00:41:09.679 --> 00:41:14.199 is cheaper because you can get land for more value and you could spread that 662 00:41:14.239 --> 00:41:19.159 out. I'm thinking of the from Rana to Castle Grand there's a huge space 663 00:41:19.199 --> 00:41:21.639 there. You know, there's Red Rook. Look how long Red Rock's been 664 00:41:21.679 --> 00:41:24.239 going and it's been going for ten plus years. I bet Red Rock's been 665 00:41:24.239 --> 00:41:27.599 going. I remember when I was probably ten or twelve years old, where 666 00:41:27.599 --> 00:41:30.039 my family was thinking about moving and we want to go look at a house 667 00:41:30.079 --> 00:41:32.119 in Red Rock, and I was just saying, please don't. Because I 668 00:41:34.079 --> 00:41:42.800 say that now I'm already lated. So baseball practice, yeah, no, 669 00:41:42.880 --> 00:41:45.119 I mean, that's that's what's fun to look at. I mean, there's 670 00:41:45.159 --> 00:41:50.039 a potential high speed rail that they've been talking about forever. I'm going between 671 00:41:50.039 --> 00:41:52.360 Tucson and Phoenix. Apparently they might have gotten some funding for I'm not sure 672 00:41:52.400 --> 00:41:55.639 exactly how true that story was that I read, but it's that those sort 673 00:41:55.679 --> 00:42:00.239 of things. I mean, imagine any type of transportation between Tucson and Phoenix, 674 00:42:00.400 --> 00:42:02.920 the type of business that creates between the team changer absolutely that. I 675 00:42:04.000 --> 00:42:08.079 mean, Intel is not really in Phoenix. That semiconductor chip plant is you 676 00:42:08.119 --> 00:42:12.320 know Chandler. It's Chandler, and it's very close to Costa Grant, So 677 00:42:12.320 --> 00:42:15.440 you start to think, you know, that's going to start integrating down as 678 00:42:15.440 --> 00:42:21.000 well, South and things. What's the other one you go to? Costa 679 00:42:21.039 --> 00:42:24.159 grand has their home productions Taiwan semi Conductors. Yeah, North. Yeah, 680 00:42:25.159 --> 00:42:28.360 that doesn't really help, you know, the Tucson area. But we're talking 681 00:42:28.400 --> 00:42:31.760 about the businesses that come from Chandler down to Marana. Those are all gonna 682 00:42:32.079 --> 00:42:36.760 need more and more houses around them as they build out right, because that 683 00:42:36.840 --> 00:42:38.440 needs more labor. And so those are the type of things you start to 684 00:42:38.440 --> 00:42:42.559 look at. Have you driven by that facility, that Intel facility in Chandler, 685 00:42:42.679 --> 00:42:45.800 the Intel one, Yeah, it's PA's It's crazy. It's up close 686 00:42:45.840 --> 00:42:49.719 and personal to it, and there's just you know, fifty thousand things going 687 00:42:49.800 --> 00:42:52.679 up in the air, and it looked like it was booming up there. 688 00:42:52.920 --> 00:42:57.519 It is a city, but it's simply it's a city. There's no doubt 689 00:42:57.599 --> 00:43:00.679 it's a it's a very impressive thing. But you know, all the lifts 690 00:43:00.719 --> 00:43:01.719 are up there like you can't even get it. You go up there and 691 00:43:01.760 --> 00:43:06.239 there's it's just a ridiculous amount. There's labor there. I'll tell you that. 692 00:43:06.679 --> 00:43:09.199 Oh, there's labor there. That's one place they got labor there. 693 00:43:10.400 --> 00:43:15.639 Yeah. I mean, for people who don't realize that Taiwan semi conductor ship 694 00:43:15.679 --> 00:43:19.360 is the largest US foreign investment in the history and it's right here. Wow, 695 00:43:19.440 --> 00:43:22.039 that's right. That's crazy. So it's been a very nice thing to 696 00:43:22.079 --> 00:43:25.400 add to our state. And just imagine the growth that's going to happen in 697 00:43:25.400 --> 00:43:29.400 ten twenty years from now. I mean, we are the little California, 698 00:43:29.880 --> 00:43:32.719 you know, because California is messing up big time, and we're one tsunami 699 00:43:32.760 --> 00:43:38.400 away from being actual California. I'll be with being on the beach b front. 700 00:43:39.320 --> 00:43:44.159 Huma will just be a drive away. Now, it's all fun and 701 00:43:44.199 --> 00:43:46.440 games. But let's talk about some of the regions in Tucsons that are the 702 00:43:46.480 --> 00:43:51.719 hottest pockets for you. What are the areas that are just you you can't 703 00:43:51.760 --> 00:43:54.400 leave right now? Well, I mean a lot of people come to Tucson 704 00:43:54.440 --> 00:43:58.400 and they all think foothills, foot hills, foothills, But foothills is I 705 00:43:58.400 --> 00:44:00.639 mean, we built thousands of homes of fail but as stilling, it's built 706 00:44:00.639 --> 00:44:05.079 out, it's more customs, now and whatnot. So if you're going away 707 00:44:05.079 --> 00:44:07.480 from that, I ain't go. Valley of Moranda and Morana more so, 708 00:44:07.639 --> 00:44:09.480 but they're both keeping a high, big place. So let's specify you. 709 00:44:09.800 --> 00:44:13.960 Well, I think any Sill, Morana, north northwest Morana, I mean 710 00:44:14.000 --> 00:44:19.039 that's that is northwest, yeah, and obviously Gladen Farms area. Gladen Farm, 711 00:44:19.079 --> 00:44:22.840 I mean that's Dove Mountains. Dove Mountains, gorgeous. Dove Mound's been 712 00:44:22.840 --> 00:44:25.000 blowing up over the last ten years, like crazy golf courses all over that 713 00:44:25.039 --> 00:44:30.519 place or something out there. The only thing they have is here to where 714 00:44:30.519 --> 00:44:31.679 it works. They have a nice girl, I'm a bar but yeah, 715 00:44:31.679 --> 00:44:36.719 they don't have much out there that that can continue to get building. Gladen 716 00:44:36.719 --> 00:44:38.119 Farms. You know when you say you have to go into town, that 717 00:44:38.159 --> 00:44:40.599 means you love far. But they're finally getting up there. I finally get 718 00:44:40.599 --> 00:44:45.880 a fries out there. So that's huge. Yeah, I know that's huge 719 00:44:45.960 --> 00:44:47.480 right when I move into my house. Yeah, Actually talking to my parents 720 00:44:47.519 --> 00:44:50.440 about it, it's like, look at Todd, do you get to come 721 00:44:50.480 --> 00:44:52.519 and just reap all the benefits that we've been waiting for. Yeah, all 722 00:44:52.559 --> 00:44:55.760 your hard work in the southeast, the Southeast market Southwest. I'm like, 723 00:44:55.800 --> 00:45:00.119 that market's going to the south because it's you can get more affordable land and 724 00:45:00.159 --> 00:45:05.000 it's in you can build at a different rate down there. So are you're 725 00:45:05.000 --> 00:45:09.760 talking vales huge? Also? You know anything off the ten really honestly going 726 00:45:09.800 --> 00:45:13.960 down there is big. But I've heard saw Rita's flow down their permits, 727 00:45:14.079 --> 00:45:16.440 so Rita's tough. You know, the building municipalities, depending on what your 728 00:45:16.440 --> 00:45:22.679 building, sometimes gets tough. There are certain markets, certain municipalities that are 729 00:45:22.679 --> 00:45:25.199 easier than others that work with you a little bit more. There's some that 730 00:45:25.239 --> 00:45:30.400 aren't that are very challenging. Still so but but uh, I think the 731 00:45:30.480 --> 00:45:31.719 new like it's getting back to what you said, the new up and coming 732 00:45:31.719 --> 00:45:35.880 area is definitely or Valium Morana. Uh. You pay a little bit more 733 00:45:35.880 --> 00:45:38.679 in there, but you can see what they're building. They have a certain 734 00:45:38.719 --> 00:45:43.239 growth, and they don't let buildings look out of place. They want them 735 00:45:43.320 --> 00:45:45.000 upscale, they want them, you know with Stone Veneer, they want them 736 00:45:45.039 --> 00:45:49.239 looking nice and doing it the right way, yes, right, whereas some 737 00:45:49.280 --> 00:45:52.519 of these older cities they didn't know what the right way was until they found 738 00:45:52.519 --> 00:45:54.519 out. And now these cities that are just forming now they can do it 739 00:45:54.519 --> 00:45:58.199 all the right way. They don't have to go back and fix things that 740 00:45:58.280 --> 00:46:00.159 you know, City of two Soon's doing. Now. We had a lout 741 00:46:00.199 --> 00:46:02.920 comedian Serta for a long time and Saith has done a lot really good job 742 00:46:02.920 --> 00:46:07.679 in regards to growth down there, and they're growing like crazy too. And 743 00:46:07.679 --> 00:46:12.119 they've done a lot of stuff with infrastructure down there, so they're trying to 744 00:46:12.360 --> 00:46:15.840 keep up and do that too. Yeah. I love that place. There's 745 00:46:15.880 --> 00:46:19.840 not much to complain about down there. Yeah. So well, well again, 746 00:46:19.880 --> 00:46:21.719 we appreciate you being on the show. You brought us a lot of 747 00:46:21.719 --> 00:46:24.719 information today. Thanks for having me appreciate it. Yeah. Absolutely, One 748 00:46:24.760 --> 00:46:29.039 more time for the Niner fans, just so you know, bang Bank nine 749 00:46:29.079 --> 00:46:34.199 a gang. Let's go. Yeah, hopefully we need we need our six 750 00:46:34.280 --> 00:46:37.320 The Chiefs win again. That's back to back, so that's not and no 751 00:46:37.360 --> 00:46:39.960 one wants to back to back champion, So that's s Kelsey and Taylor Swift 752 00:46:39.960 --> 00:46:44.440 ones. So yeah, we need our sixth ring. So that's where we're 753 00:46:44.440 --> 00:46:45.920 going. We're about to put in work. Yeah, it's gonna be a 754 00:46:45.920 --> 00:46:51.320 fun thing. I'm getting the keys to my house on my birthday and my 755 00:46:51.400 --> 00:46:54.519 mom, what a great birthday. B Yeah, that's a great I'm looking 756 00:46:54.559 --> 00:46:58.599 forward to it. And I'm now in Gladen Farms, and yeah, Gladen 757 00:46:58.639 --> 00:47:02.320 Farms continues to be built down. It's a very interesting space in my opinion, 758 00:47:02.360 --> 00:47:07.280 because of how little is out there right now, but how crucial I 759 00:47:07.280 --> 00:47:08.679 think it's gonna be. But how big it's growing in the last five years. 760 00:47:08.679 --> 00:47:12.320 You say how little out there looking at five years ago, That's what 761 00:47:12.320 --> 00:47:14.320 I mean. I mean, if you see the growth rate over the last 762 00:47:14.360 --> 00:47:16.199 five years. Yeah, you've been out to see out there. We didn't 763 00:47:16.199 --> 00:47:19.559 even have a McDonald's. I remember when that first McDonald's went up. It 764 00:47:19.599 --> 00:47:28.320 was the coolest thing ever. I remember I went to your house. That 765 00:47:28.480 --> 00:47:31.679 was the exciting thing. All right. So we're coming up on the break 766 00:47:31.719 --> 00:47:35.920 of the first hour. We appreciate everyone listen. We'll be right back for 767 00:47:35.960 --> 00:47:39.440 the second hour of the Money Matters Show. Thank you for listening. Welcome 768 00:47:39.480 --> 00:47:43.079 back to the Money Matter Show. My name is Todd Glick and I'm here 769 00:47:43.079 --> 00:47:45.280 with Sebastian Boorsini. Wanted to thank again Tod Lick Scena for coming on the 770 00:47:45.280 --> 00:47:49.239 show. It was a fun to have him on talking about Holmes. Had 771 00:47:49.280 --> 00:47:51.960 a lot of information for us. But as we're coming into the second hour, 772 00:47:52.039 --> 00:47:54.079 let's bring up these performance numbers. On the week, dal Jones was 773 00:47:54.159 --> 00:47:57.679 up two point one percent, S and P was up two point five, 774 00:47:58.000 --> 00:48:00.599 Nasdaq was up two point one, Russell two thousand, up one point three 775 00:48:00.599 --> 00:48:04.840 in the RSP up one point four, So largely S and P with what 776 00:48:04.840 --> 00:48:07.599 you're saying two point five on where the equal weight it only had one point 777 00:48:07.599 --> 00:48:10.719 four. Those super six continue to lead the way and dominate the market as 778 00:48:10.719 --> 00:48:15.079 they did in twenty twenty three. We did have all time highs hit for 779 00:48:15.159 --> 00:48:20.079 the DW Jones at thirty eight six five four and the S and P five 780 00:48:20.199 --> 00:48:22.840 hundred at forty nine fifty nine. So it's always nice to see an all 781 00:48:22.840 --> 00:48:27.760 time high on a sheet because it means people are making money, right. 782 00:48:27.920 --> 00:48:32.119 So we continue to go through this earning season and it has been fun because 783 00:48:32.199 --> 00:48:35.880 this week it was all about the big companies. So we had Google, 784 00:48:36.320 --> 00:48:38.760 we had Meta, we had Amazon, and we had Apple. We already 785 00:48:38.760 --> 00:48:43.639 talked about Amazon, So let's go into Apple. Okay. Apple earnings of 786 00:48:43.719 --> 00:48:45.920 two dollars and eighteen cents per share and revenue of one hundred and twenty billion 787 00:48:45.960 --> 00:48:51.920 both beat fact set consensus. Fiscal quarter one iPhone revenue of sixty nine point 788 00:48:51.920 --> 00:48:54.480 seven billion came in ahead of consensus of sixty seven point nine billion. It 789 00:48:54.519 --> 00:48:58.800 was up year over year. I'm pretty impressed with that, just because a 790 00:48:58.800 --> 00:49:00.800 lot of people were talking about, you know, the China's slowing economy. 791 00:49:00.880 --> 00:49:05.400 Well know what they said. You remember China said you can't buy Apple phones 792 00:49:05.400 --> 00:49:07.920 if you're working for the Chinese guy. Yeah. Yeah, So everyone thought, 793 00:49:07.960 --> 00:49:09.519 oh, this is gonna be a big impact for the Chinese market for 794 00:49:09.559 --> 00:49:13.840 Apple, and they're gonna slump on sales. Nobody cares. Didn't look like 795 00:49:13.840 --> 00:49:16.320 it right, looked like they did it fine. But to that point, 796 00:49:16.400 --> 00:49:22.159 China revenue felt did fall thirteen percent year over year, but not as much 797 00:49:22.159 --> 00:49:23.880 as expected. Obvious partly due to the strong dollar, I think, he 798 00:49:23.960 --> 00:49:28.800 said, and then he emphasized the company's strength in iPhone popularity there, even 799 00:49:28.840 --> 00:49:30.199 with what you just said. Yeah, at the end of the day, 800 00:49:30.239 --> 00:49:34.440 the great a good product's gonna win over a product that's forced to you, 801 00:49:34.519 --> 00:49:37.880 right, right, We've seen that many times. Good unless you live in 802 00:49:37.239 --> 00:49:40.800 obviously China is a very authoritarian regime. You kind of forced to do it. 803 00:49:40.960 --> 00:49:44.199 If you have a choice, you're gonna pick up a better product if 804 00:49:44.239 --> 00:49:45.599 you can. Talking about those things that Apple's coming out with, I mean 805 00:49:45.599 --> 00:49:49.960 they just came out with their Vision Pro. This Apple car was that stock 806 00:49:50.079 --> 00:49:55.320 that's rallied what thirty percent today, I'll pull it up. It is something. 807 00:49:55.679 --> 00:50:00.000 But essentially they produced the actual technology behind the Vision Pro, like the 808 00:50:00.079 --> 00:50:06.760 actual glasses part of it. Copin Corporation is what they is, what they're 809 00:50:06.800 --> 00:50:09.239 called, And so they were up on some noise from some contracts that they 810 00:50:09.239 --> 00:50:13.079 were awarded and people are starting to think, you know what, maybe Apple's 811 00:50:13.079 --> 00:50:16.679 going to buy this thing out. I would increase your balance sheet quite a 812 00:50:16.719 --> 00:50:22.639 bit. Yeah, certainly. Copin is a company that engaged in the development, 813 00:50:22.639 --> 00:50:27.079 manufacturing, and sale of wearable technologies, which include components and systems such 814 00:50:27.119 --> 00:50:30.400 as the one like l O LED displays that you that are used in the 815 00:50:30.400 --> 00:50:36.079 the Vision Pro. So that's why that company and any type of company that 816 00:50:36.119 --> 00:50:39.679 has production inputs into this Vision Pro I think is going to have a lot 817 00:50:39.719 --> 00:50:45.480 of success moving forward. So, Todd, do you remember when Dean and 818 00:50:45.519 --> 00:50:47.800 Dave were talking to us about how you know there's going to be companies out 819 00:50:47.800 --> 00:50:52.159 there that you think are never going to go down, right? So as 820 00:50:52.320 --> 00:50:54.840 I think they One of the big ones that they were talking about was IBM, 821 00:50:55.159 --> 00:51:00.239 right, and we talked about how they weren't really implementing any new things 822 00:51:00.280 --> 00:51:04.400 within their system. They didn't know how to make money in any different ways. 823 00:51:04.440 --> 00:51:07.599 So Apple, they got a whole bunch of things coming out. I 824 00:51:07.920 --> 00:51:10.079 encourage any of the listeners out there that if you haven't seen that video for 825 00:51:10.119 --> 00:51:14.440 the Vision Pro headset, you go watch that. Yeah, it looks kind 826 00:51:14.480 --> 00:51:15.960 of ridiculous when you're wearing it right now. It's a big, giant, 827 00:51:16.039 --> 00:51:20.239 you know thing. It's kind of like you're wearing snowboard goggles in a sense. 828 00:51:20.880 --> 00:51:23.519 But where are we going to go from here? Yeah? I mean 829 00:51:23.599 --> 00:51:27.000 you talked about the car insurance premiums. You talked too, well, let's 830 00:51:27.039 --> 00:51:29.719 paying the picture for us, right right? I mean, what this Vision 831 00:51:29.760 --> 00:51:34.000 Pro is is not a virtual reality headset like the one that came out with 832 00:51:34.119 --> 00:51:37.679 Meta in Oculus. Okay, that's not what we're talking about. It's actually 833 00:51:37.679 --> 00:51:40.280 something called augmented reality. It's not this third world that you go buy property 834 00:51:40.320 --> 00:51:44.440 in. It's fake. Yeah, it's not this virtual world that's called VR. 835 00:51:44.719 --> 00:51:49.039 Right, So that's what Meta produced. It's called arkay augmented reality. 836 00:51:49.119 --> 00:51:52.039 Augmented reality means it's true reality, but then you see stuff on top of 837 00:51:52.119 --> 00:51:58.320 reality that isn't really there. Right. Imagine an iPhone notification popping up while 838 00:51:58.360 --> 00:52:00.639 you look at a tree or something like that. That's augmented reality. Now, 839 00:52:00.679 --> 00:52:05.119 these vision programs, but some people might love it. Well, let's 840 00:52:05.159 --> 00:52:07.800 think about this, right, Let's let's really think about this, because these 841 00:52:07.920 --> 00:52:12.119 vision pros what they're gonna be is you can look at a picture by just 842 00:52:12.159 --> 00:52:15.039 tapping your fingers fingers together, okay, sliding with your hands, sliding with 843 00:52:15.119 --> 00:52:19.840 your hands. You can play a video with your hands, you can scroll 844 00:52:19.880 --> 00:52:23.039 with your eyes. And then when you really extrapolate what this means for the 845 00:52:23.119 --> 00:52:29.840 future, technology doesn't get bigger, it goes smaller and smaller and smaller, 846 00:52:30.119 --> 00:52:35.000 right, And so what you see with what potentially is this huge snow goggle 847 00:52:35.079 --> 00:52:38.400 thing that's very abrasive and the other one really wants to that turns into just 848 00:52:38.480 --> 00:52:44.360 sunglasses, turns into just contacts. Maybe it's just a head piece, a 849 00:52:44.360 --> 00:52:47.199 little bluetooth headphone looking thing. Maybe it looks like a hearing aid. Whatever 850 00:52:47.280 --> 00:52:51.880 it may be, it's going to be small enough to not really have any 851 00:52:51.920 --> 00:52:54.840 impact on your day to day life, but actually have a huge impact on 852 00:52:54.880 --> 00:52:58.519 your every day, every day life, because you're gonna be able to see 853 00:52:58.519 --> 00:53:01.320 the world in so much different levels. I mean, you're gonna be able 854 00:53:01.760 --> 00:53:06.400 to pay for things by thinking about it, by looking at it. You're 855 00:53:06.400 --> 00:53:07.599 not gonna have a wallet. You're not gonna have a material wallet. What 856 00:53:07.679 --> 00:53:13.679 did this iPhone do? It made things immaterial Your calculator, your camera, 857 00:53:14.079 --> 00:53:19.599 your phone, contact list, all your games right, all your pictures, 858 00:53:19.639 --> 00:53:22.199 your catalogs, your phone albums. Where are they now? From one thing 859 00:53:22.280 --> 00:53:27.719 in your pocket? It's called immaterialization. Blockbuster, what happened to them? 860 00:53:28.119 --> 00:53:32.519 They immaterially got destroyed by someone that's immaterial Netflix all right, Sears? What 861 00:53:32.599 --> 00:53:36.000 happened to them? They thought, oh, you know, brick and mortars 862 00:53:36.000 --> 00:53:38.239 the way to go. They got destroyed by an immaterial company called Amazon. 863 00:53:38.599 --> 00:53:45.239 Okay, technology leads to immaterial and it takes all these very expensive building blocks 864 00:53:45.239 --> 00:53:51.119 of reality and makes them into these cloud based Think about libraries, that's where 865 00:53:51.119 --> 00:53:53.840 we stored our information. Where are they now in your phone? The cloud? 866 00:53:54.400 --> 00:53:58.840 Even better, it's not even a real That's what I'm talking about, 867 00:53:58.920 --> 00:54:01.559 right. We are making these things that we do on the every day that 868 00:54:01.599 --> 00:54:07.559 are so sometimes have a lot of friction involved, and they're gonna become less 869 00:54:07.760 --> 00:54:12.360 friction and it's gonna produce so much benefits for society. It's awesome to create 870 00:54:12.400 --> 00:54:15.679 a lot more problems for society. That's what technology brings. It's not just 871 00:54:15.800 --> 00:54:17.519 good. It is bad. And I'm not saying it's all gonna be fun 872 00:54:17.519 --> 00:54:22.119 in games. Will there be security risks? Absolutely? Will there be risk 873 00:54:22.199 --> 00:54:25.480 with governments taking more control than they should have. Absolutely. I mean, 874 00:54:25.559 --> 00:54:30.159 technology is not a two one way street. It is a two way street, 875 00:54:30.199 --> 00:54:31.079 and we have to be realized of that. But we can't be scared 876 00:54:31.119 --> 00:54:35.119 of it either, because where we are today is because of all the technology 877 00:54:35.159 --> 00:54:38.440 we've produced. And it's really exciting to see the things Apple is producing. 878 00:54:39.239 --> 00:54:45.880 Because Steve Jobs' vision for the entire iPhone was just that making something that had 879 00:54:45.960 --> 00:54:49.920 so many components and put it into one device, and that was that iPhone 880 00:54:49.960 --> 00:54:53.119 smartphone, And now it really makes us a cyborg if you think about it. 881 00:54:53.280 --> 00:54:57.280 People are so worried about I'm never gonna put a neurolink in my head. 882 00:54:57.360 --> 00:55:00.480 It's like this iPhone right now, or any smart phone you have, 883 00:55:00.599 --> 00:55:02.599 it's an extension of you that is part of your identity. And anyone who 884 00:55:02.639 --> 00:55:06.599 says that it's not go a year without that phone and see how it makes 885 00:55:06.639 --> 00:55:08.880 you feel right right at the end of the day. It is a part 886 00:55:08.880 --> 00:55:14.440 of many humans identities at this point, and we are pseudoficial cyborgs because of 887 00:55:14.480 --> 00:55:16.480 it. And that trend isn't going to slow down. Talk a little bit 888 00:55:16.480 --> 00:55:20.519 about that insurance premium that it was just an idea that I thought it was. 889 00:55:20.679 --> 00:55:23.360 It's a fascinating idea because A Black Mirror is a very famous show on 890 00:55:23.440 --> 00:55:30.519 Netflix who had actually an episode about an insurance company theoretically being able to prove 891 00:55:30.559 --> 00:55:32.840 all their insurance claims. Because imagine if we had a world where everyone had 892 00:55:34.199 --> 00:55:37.320 basically a recording those vision pros. But in yeah, imagine everyone has vision 893 00:55:37.320 --> 00:55:40.800 pros and the vision for pro records everything you do. So if you ever 894 00:55:40.840 --> 00:55:45.880 had a problem with insurance, coming like how did this car accident happen? 895 00:55:45.039 --> 00:55:49.119 Well, let me see your visual trouble, let me see your history. 896 00:55:49.360 --> 00:55:52.519 Oh, you give me permission to see your vision. Pro your insurance premiums 897 00:55:52.519 --> 00:55:55.679 become cheaper because we have more information than we otherwise would have, right, 898 00:55:55.760 --> 00:55:59.440 I mean, think about what Progressive is doing with put plugging that thing into 899 00:55:59.480 --> 00:56:02.800 your car so they can understand. They're like, why wouldn't you want a 900 00:56:02.920 --> 00:56:07.039 unique price? Why do you want to have this average price that's based on 901 00:56:07.119 --> 00:56:12.920 the average person in your demographic. Why wouldn't you want something that's specifically tailored 902 00:56:12.960 --> 00:56:15.960 to you. Well, if you're someone who drives crazy, obviously you don't 903 00:56:15.960 --> 00:56:20.239 want that. But that's the kind of thing that's really interesting because insurance premiums 904 00:56:20.800 --> 00:56:23.199 any insurance company, right, Oh, you said you're putting in this claim, 905 00:56:23.280 --> 00:56:28.000 prove it. But not only that. Imagine murder cases, right, 906 00:56:29.039 --> 00:56:32.199 any any criminal case you would be able to then if you find the person 907 00:56:32.280 --> 00:56:36.000 or find the headset, be able to put it. Imagine if the headset 908 00:56:36.000 --> 00:56:38.360 automatically uploads to the cloud, so you don't even need the original headset, 909 00:56:38.639 --> 00:56:43.599 right. I mean the type of stuff that could be coming out with this 910 00:56:44.519 --> 00:56:47.239 is game changing. Imagine what this could lead in twenty years, That's what 911 00:56:47.280 --> 00:56:50.880 I mean. I mean, this iPhone eventually will not be in your pocket 912 00:56:50.880 --> 00:56:52.719 anymore because it's going to be in the form of your vision pro Super cool 913 00:56:52.719 --> 00:56:55.159 to think about. And I got to give a little bit of a shout 914 00:56:55.159 --> 00:57:00.000 out to my business school, Eler. You know you're at the University of 915 00:57:00.039 --> 00:57:04.119 Arizona. I remember my first year, before I even started classes, I 916 00:57:04.119 --> 00:57:07.679 walked in and I was looking around dollar the halls and they had this new 917 00:57:07.679 --> 00:57:10.039 building or this new little classroom and what did it say on it back in 918 00:57:10.079 --> 00:57:19.079 twenty nineteen May of twenty nineteen Artificial intelligence, right, And so I remember 919 00:57:19.119 --> 00:57:22.400 towards the end of my time there at Eller, it started shifting towards this 920 00:57:22.480 --> 00:57:27.039 augmented reality. How could we go about this? You know? Where where's 921 00:57:27.079 --> 00:57:30.039 this? Where's there's where is there areas to monetize this, you know? 922 00:57:30.119 --> 00:57:35.239 And so you see it in I think Amazon or any of the Living or 923 00:57:36.360 --> 00:57:37.760 like if you go to buy a couch or something like that, you are 924 00:57:37.840 --> 00:57:40.880 able to put that couch within your home if you want right, and not 925 00:57:40.960 --> 00:57:45.239 only that, Imagine a world where you know, you go up to buy 926 00:57:45.239 --> 00:57:49.559 something you shouldn't buy, and then a big notification pops up says, hey, 927 00:57:50.320 --> 00:57:52.760 before you buy this, just realize you're account going to go negative if 928 00:57:52.800 --> 00:57:54.239 you do. How many people do that? Stop? Oh? If you 929 00:57:54.280 --> 00:57:57.960 buy this is how much interest is going to accrue over the next twenty years 930 00:57:58.000 --> 00:58:00.079 if you don't pay it off. Like those little things could be such game 931 00:58:00.159 --> 00:58:05.960 changers. Imagine the level of consciousness that can be added to humans day to 932 00:58:06.039 --> 00:58:07.920 day life because a lot of times people just go through life and they don't 933 00:58:07.960 --> 00:58:13.239 realize all the signs that are coming to them and they're just not reading them. 934 00:58:13.639 --> 00:58:15.679 This technology could really help a lot, could also hurt a lot. 935 00:58:15.719 --> 00:58:19.239 And not saying I know, there's a lot of listeners saying you know, 936 00:58:19.320 --> 00:58:22.280 this sounds scary. Sounds scary, and I understand this. It does. 937 00:58:22.480 --> 00:58:25.800 I understand that, but it's also very exciting. But what's even scarier is 938 00:58:25.840 --> 00:58:30.039 not being able to adopt it and being so scared that I you know, 939 00:58:30.119 --> 00:58:31.719 yes, just don't be closed mind about of it. This is where the 940 00:58:31.760 --> 00:58:37.519 world's going only fear fear itself. Let's talk about next we have Meta Meta. 941 00:58:37.519 --> 00:58:40.400 Oh my goodness, what a week it had, What a week, 942 00:58:40.519 --> 00:58:44.639 What a year it's had. I think last year closed and I want to 943 00:58:44.679 --> 00:58:46.239 say, just off the top of my head, around one hundred and twenty 944 00:58:46.280 --> 00:58:50.199 eight dollars this time last year. What did it close out today? Four 945 00:58:50.320 --> 00:58:53.000 seventy for eighty. It's just ridiculous. It's going really hard. Earnings of 946 00:58:53.079 --> 00:58:57.039 five dollars and thirty three cents per share, in revenue of forty point one 947 00:58:57.039 --> 00:59:00.840 to one billion, both easily beat the facts that can say this revenue rose 948 00:59:00.880 --> 00:59:04.360 twenty four point seven year over year. And this is all Admidst of all 949 00:59:04.760 --> 00:59:08.400 amid Zuckerberg, you know, just getting absolutely destroyed for putting pouring so much 950 00:59:08.400 --> 00:59:13.199 money into these new yeahs. And also he was just on Capitol Hill and 951 00:59:13.199 --> 00:59:17.800 got destroyed by the congressmen and women that were tested persecuting. I don't know 952 00:59:17.840 --> 00:59:21.360 what they call it. But at the end of the day, what happened 953 00:59:21.360 --> 00:59:23.840 with METAW was last year they had a real issues with spending too much money 954 00:59:23.840 --> 00:59:29.519 on some of these VR spaces and then profit centers of not making profit right, 955 00:59:29.559 --> 00:59:30.880 so they had to cut that out. They cut a lot of their 956 00:59:30.920 --> 00:59:35.800 workforce, and they basically said this year is going to be based on being 957 00:59:36.320 --> 00:59:39.599 physically responsible. Yeah, and they did just that. And not only that, 958 00:59:39.800 --> 00:59:43.800 what happened. I believe they offered dividen Yeah, I was gonna say, 959 00:59:43.840 --> 00:59:45.480 what else do you think did? They initiated a fifty cent cash David 960 00:59:45.599 --> 00:59:50.840 und per sure of outstanding stock payable March twenty six. It's a fifty million 961 00:59:50.840 --> 00:59:53.960 dollars fifty billion dollars buy back plan increase. And I saw I heard a 962 00:59:54.000 --> 00:59:59.039 really interesting comment on a CNBC talking head about why would they do this? 963 00:59:59.280 --> 01:00:01.360 Right? And one of the megacaps have started to do this now, and 964 01:00:01.519 --> 01:00:06.760 I think the reason they're doing it is to show responsibly that they are not 965 01:00:06.800 --> 01:00:08.760 going to be spending on things that aren't going to bring them money. So 966 01:00:08.800 --> 01:00:13.320 there gets to a point when you make so much money out of business that 967 01:00:13.400 --> 01:00:16.320 if you can't find where to put that money to compound at the same rate 968 01:00:16.360 --> 01:00:20.119 your business is growing at, what do you do make your investors happy? 969 01:00:20.199 --> 01:00:23.800 Give it back to your investors, right, because then that makes them more. 970 01:00:24.960 --> 01:00:29.159 They look at it saying you're not going to be irresponsible with me giving 971 01:00:29.159 --> 01:00:30.440 you extra cash. You potentially are just going to give it, right, 972 01:00:30.440 --> 01:00:35.280 back. So it's one hundred percent that they did this to build rapport. 973 01:00:35.559 --> 01:00:37.920 Yeah, that's it. That's it. And so they did a great job 974 01:00:37.920 --> 01:00:42.480 in the stock rallied on it. Yeah, and you know, they probably 975 01:00:42.480 --> 01:00:45.079 did a lot of buybacks as well when they were at the eighty eight hundred 976 01:00:45.079 --> 01:00:47.280 dollars level, and they probably make a lot of money on those buybacks. 977 01:00:47.360 --> 01:00:52.280 I'm sure they're killing it. Another earnings This one isn't a mega cap or 978 01:00:52.320 --> 01:00:55.480 anything like that, but Novo, Yeah, I had a great earnings release 979 01:00:55.519 --> 01:00:58.840 and I don't really want to go too much into the numbers. They did 980 01:00:58.840 --> 01:01:00.639 good, but it's this is more for Dave. I hope you're listening to 981 01:01:00.719 --> 01:01:06.199 Dave. So we've we talked about Novo, and we've talked about Eli Lilly, 982 01:01:06.280 --> 01:01:09.280 these anti obesity diabetes drugs, and we've gotten them right, we've gone 983 01:01:09.280 --> 01:01:15.960 them wrong. I just want to solidify what they have Eli Lilly. They 984 01:01:15.960 --> 01:01:19.760 have something called zet Bounce. This is their drug for obesity. They also 985 01:01:19.800 --> 01:01:24.039 have Manjaro, they have a drug for diabetes. These are all turned and 986 01:01:24.280 --> 01:01:29.840 pardon me if I'm pronouncing this incorrectly, but it's turned zeppetites. Okay, 987 01:01:29.840 --> 01:01:32.760 this patents for these drugs, And in twenty thirty nine Novo, you have 988 01:01:32.840 --> 01:01:37.599 we GOV that's that's for obesity. You have Ozepic, which is for diabetes. 989 01:01:37.159 --> 01:01:40.400 Okay, these are semig glutides, these patents, and in twenty thirty 990 01:01:40.400 --> 01:01:45.960 three, So I'm just really at a loss, and I know We've talked 991 01:01:45.960 --> 01:01:50.039 about this so many times before, is why are these compound pharmacies allowed to 992 01:01:50.079 --> 01:01:53.119 do this? Why it doesn't why are they allowed to change something? And 993 01:01:53.239 --> 01:01:58.320 ad salt, you know, they these companies spend billions of dollars are R 994 01:01:58.360 --> 01:02:01.119 and D. I would be so upset if I spent this much money on 995 01:02:01.239 --> 01:02:06.519 R and D and there's you know, fifty other replicates on well Fox News 996 01:02:06.679 --> 01:02:08.880 the Devil's advocate to that point, if it's so easily replicatable, then it 997 01:02:08.920 --> 01:02:12.400 probably shouldn't have been patented in the first place, because the whole point of 998 01:02:12.400 --> 01:02:15.960 a patent is saying that it's not replicatable. But that's not true. In 999 01:02:15.960 --> 01:02:19.400 the pharmaceutical industry, it is. I mean, you're the way you get 1000 01:02:19.400 --> 01:02:22.239 your patent's based on your compounds, and so something that can't basically be changed, 1001 01:02:22.280 --> 01:02:24.880 then how special is your compound? No, but any company that gets 1002 01:02:25.480 --> 01:02:30.320 any pharmaceutical drug. They could just take that drug and backwards engineer it and 1003 01:02:30.320 --> 01:02:31.960 make it. You know, oh you can't if it's the same way. 1004 01:02:32.119 --> 01:02:36.239 You can't make a patented drug the exact same way. That is a patent 1005 01:02:36.280 --> 01:02:39.639 infringement. But technically, if all these compound farmers either doing they're changing three 1006 01:02:39.719 --> 01:02:44.559 or four ingredients, then they are technically playing by the rules. It's not 1007 01:02:44.639 --> 01:02:49.480 the exact same patented drug, it's something else. But it brings me back 1008 01:02:49.480 --> 01:02:52.400 to my point. Let's talk about eloquists. That's a drug adfiser's you know, 1009 01:02:52.440 --> 01:02:57.639 you don't see anybody else advertising for whatever that type of drug is. 1010 01:02:58.039 --> 01:03:00.920 You don't see it. Well, Also, there's two levels of this one 1011 01:03:00.440 --> 01:03:05.960 the demand two. How easy is it replicatable? What do you mean with 1012 01:03:06.000 --> 01:03:08.599 the demands the diff for both drugs or it's just ridiculous. Okay, but 1013 01:03:08.679 --> 01:03:15.199 one may be easily more replicatable. Okay, okay, So creating a what's 1014 01:03:15.239 --> 01:03:19.360 the other one, lizit was the one you just mentionedde no no. The 1015 01:03:19.800 --> 01:03:23.159 the other one eloquist eloquest. If eloquist is a lot more money to reproduce 1016 01:03:23.199 --> 01:03:27.559 in a different compound pharmacy, right, it's entry into the market. And 1017 01:03:27.760 --> 01:03:30.880 then that's why it is interesting. I mean, if it's it's easily replicatable 1018 01:03:30.920 --> 01:03:36.119 drug, that's why not to mention so that on that point of turs epetite 1019 01:03:36.199 --> 01:03:39.039 versus semi glutide serves epetites, that's coming out with a bunch of a bunch 1020 01:03:39.039 --> 01:03:43.519 of studies. That's just way more efficient than the semic glutides, and it's 1021 01:03:43.559 --> 01:03:45.239 a cause for concern for Novo. But at the same time, you also 1022 01:03:45.320 --> 01:03:51.519 need a lot more milligrams and dosage of the turs eppetite, which causes me 1023 01:03:51.559 --> 01:03:54.039 to believe all in all, right, now it seems that Eli Lilly potentially 1024 01:03:54.039 --> 01:03:58.320 has the better one. Yes, but like I'm saying, you need more 1025 01:03:58.360 --> 01:04:02.079 milligrams of the tursuppetite, which sounds better for you, Lily if you think 1026 01:04:02.079 --> 01:04:04.440 about it. Yes, but does it cost more? You know, does 1027 01:04:04.440 --> 01:04:09.559 it feed into their margin? It's probably better for you. I like your 1028 01:04:09.559 --> 01:04:12.960 devil's out played here. I understand what you're saying. Let's talk about Google. 1029 01:04:13.000 --> 01:04:16.800 Google reported earnings. They beat expectations, but the market didn't care. 1030 01:04:16.920 --> 01:04:20.400 They didn't have the guidance they were looking for, and the stock did drop 1031 01:04:20.760 --> 01:04:26.159 on the week. It actually had a pretty It finished up one hundred and 1032 01:04:26.199 --> 01:04:33.440 forty three dollars a share. So not having the performance report, resurgence that 1033 01:04:33.559 --> 01:04:38.400 was looking for kind of has come back in. Microsoft tell you that No, 1034 01:04:38.599 --> 01:04:43.960 No, Meta and Amazon are the ones that absolutely exploded higher this week. 1035 01:04:44.679 --> 01:04:46.960 So now I want to talk a little bit about our newsletter. We 1036 01:04:47.000 --> 01:04:51.159 have our newsletter that comes out every month on the first of the month, 1037 01:04:51.199 --> 01:04:54.920 well around the first of the month. You can get signed up on that 1038 01:04:54.920 --> 01:04:59.679 newsletter by going to our Greenberg Financial dot com website and at the bottom of 1039 01:04:59.679 --> 01:05:02.480 the page you can sign up for the newsletter by just putting your email in. 1040 01:05:02.719 --> 01:05:05.280 You can always go to our website to learn more about what we're going 1041 01:05:05.400 --> 01:05:09.760 and what we're doing here at the firm. We have all of our social 1042 01:05:09.840 --> 01:05:14.599 media's tagged to the website. Our YouTube, we constantly are putting new updates 1043 01:05:14.599 --> 01:05:19.000 on there. I do my weekly market summary. Sebastian always post our TV 1044 01:05:19.119 --> 01:05:25.960 shows that air on Sundays. Our TV shows air on NBC the air at 1045 01:05:26.079 --> 01:05:30.320 nine am and as well as ten thirty pm. And if you ever missed 1046 01:05:30.360 --> 01:05:32.239 one of those and you want to check it out, you want you didn't 1047 01:05:32.239 --> 01:05:34.719 want to miss that, you could go to our YouTube page and yeah, 1048 01:05:34.760 --> 01:05:40.360 they're all there. So certainly go to our YouTube page and all of our 1049 01:05:40.639 --> 01:05:43.599 You can follow us on Facebook, Instagram, LinkedIn, Twitter or whatever you 1050 01:05:44.119 --> 01:05:46.920 like or use. We're on all of them. Not also mentioning we have 1051 01:05:47.039 --> 01:05:51.239 our radio shows that we do each Saturday at six thirty, twelve and twelve 1052 01:05:51.239 --> 01:05:56.480 thirty, which are the audio format of our TV shows. We're actually going 1053 01:05:56.559 --> 01:05:59.880 to be going up in March to film some new TV shows, so excited 1054 01:06:00.000 --> 01:06:01.840 about that. But going back to our newsletter, I wrote a piece this 1055 01:06:01.880 --> 01:06:08.320 week about five ways to maximize your retirement savings for tax efficiency. So I 1056 01:06:08.360 --> 01:06:11.360 think this is a good one to go into as we enter tax season, 1057 01:06:11.519 --> 01:06:15.480 but also helping people realize some of the potential areas they are missing out on 1058 01:06:15.480 --> 01:06:18.039 what where they could be saving some taxes right or at least being more efficient 1059 01:06:18.079 --> 01:06:21.880 with them. So the first one I like to talk about is tax advantage 1060 01:06:21.880 --> 01:06:27.239 accounts. These are very simple four to one k's iras, and there's different 1061 01:06:27.280 --> 01:06:30.760 types. You have the traditional four to one k, which is funded by 1062 01:06:30.760 --> 01:06:33.320 pre tax dollars. That means that money's going in before it hits your paycheck, 1063 01:06:34.000 --> 01:06:36.559 but when you take it out once you finally do retire, you're going 1064 01:06:36.599 --> 01:06:41.559 to pay income tax rate whatever that income tax rate is. Then, same 1065 01:06:41.559 --> 01:06:45.239 thing happens with iras. It's pre tax money, so you actually get a 1066 01:06:45.320 --> 01:06:48.199 deduction because obviously you've already got your paycheck. If you're putting into an IRA, 1067 01:06:48.599 --> 01:06:51.880 you'll get a deduction on your income and that's how you save on that. 1068 01:06:53.320 --> 01:06:55.440 Now, there's other types of four to one k's. It's something called 1069 01:06:55.440 --> 01:06:58.960 a wroth four oh one K, and that's tax differently because that money is 1070 01:06:58.960 --> 01:07:01.320 actually going to go into that account post tax. Mean you've already paid the 1071 01:07:01.360 --> 01:07:03.920 taxes on it, but then when it's in that account, it's going to 1072 01:07:03.960 --> 01:07:08.400 grow tax free, and when you finally do take it out, it's also 1073 01:07:08.480 --> 01:07:12.039 tax free. Same thing with the wroth iray. The only thing different is 1074 01:07:12.079 --> 01:07:15.239 it comes after your paycheck. You're gonna put it in there. There's no 1075 01:07:15.360 --> 01:07:17.280 tax deduction the first year, but it grows tax free, and then when 1076 01:07:17.280 --> 01:07:19.800 you finally take it out, it's tax rushing too. Todd, I have 1077 01:07:19.840 --> 01:07:25.039 a lot of friends that are around our age that have trouble with investing in 1078 01:07:25.079 --> 01:07:29.480 wrap, holding their money hostage in a roth IRA because they can't take it 1079 01:07:29.519 --> 01:07:33.320 out until they're no older. Yeah, explain to them a little bit about 1080 01:07:33.320 --> 01:07:36.840 that tax benefit. Yeah. Well, let's first of all say that they're 1081 01:07:36.840 --> 01:07:40.760 wrong. Okay, you put one thousand dollars in a roth iray, you 1082 01:07:40.760 --> 01:07:43.840 can take a thousand dollars out whenever you want. You can always take out 1083 01:07:43.880 --> 01:07:46.320 the principle you take out the gains. You can't take out the gains, 1084 01:07:46.519 --> 01:07:49.360 all right. There are some provisions you can take out the gains if you 1085 01:07:49.360 --> 01:07:53.280 wait five years and certain things, but that's too granular for this. But 1086 01:07:53.480 --> 01:07:58.239 what I mean by that is, I know for what really matters is the 1087 01:07:58.280 --> 01:08:00.840 wroth irays are the best used to be when you're young, because you're growing 1088 01:08:00.840 --> 01:08:04.119 tax free. There's no way you are going to get tax savings in an 1089 01:08:04.159 --> 01:08:08.320 IRA that are going to come close to the potential tax savings you would see 1090 01:08:08.519 --> 01:08:12.639 after forty years of tax free growth. It's just not comparable. So anyone 1091 01:08:12.679 --> 01:08:16.159 even below the age of fifty, I normally say do the roth unless they're 1092 01:08:16.159 --> 01:08:18.600 in a high really high income. I was gonna say, there's there there 1093 01:08:18.680 --> 01:08:21.079 might be a point, you know, take advantage of it while you're young, 1094 01:08:21.119 --> 01:08:25.239 that you could invest. I think what for twenty twenty four seven thousand 1095 01:08:25.279 --> 01:08:29.600 dollars now a year yep into this roth Ira. There's there might be a 1096 01:08:29.640 --> 01:08:31.159 time that you and your spouse are making too much money and you go over 1097 01:08:31.159 --> 01:08:34.760 that threshold and cannot invest into this anymore. That's stripped away. Well, 1098 01:08:35.000 --> 01:08:38.039 if you want those games, you got to do it through your four one 1099 01:08:38.119 --> 01:08:41.359 K or open up a brokerage account and get tax when you pull it out. 1100 01:08:41.439 --> 01:08:43.560 Yeah. Well, it's always funny when you hear people saying like, 1101 01:08:43.800 --> 01:08:46.239 I can't spend, I can't afford to invest, and they're making eighty thousand 1102 01:08:46.239 --> 01:08:49.119 and three years later they're married, they're making you know, two hundred and 1103 01:08:49.159 --> 01:08:51.520 forty thousand combined, and they still can't find on any to invest, and 1104 01:08:51.520 --> 01:08:55.600 it's like what happened? You know? Eventually you have to sacrifice. It 1105 01:08:55.600 --> 01:08:58.199 doesn't feel good, okay, going to working out at the end of the 1106 01:08:58.279 --> 01:09:00.880 day, it doesn't feel no one wants to do. There might be a 1107 01:09:00.920 --> 01:09:01.760 couple of days you feel good. Yeah, yeah, let's go have some 1108 01:09:01.760 --> 01:09:04.560 fun at the gym. Most of the time it sucks. No one wants 1109 01:09:04.600 --> 01:09:08.199 to do the hard things in life, but it sets you up for the 1110 01:09:08.239 --> 01:09:12.920 future. If you are responsible today and you delay your instant gratification. The 1111 01:09:13.000 --> 01:09:15.600 gratification at the end of the road feels so much better. It's not about 1112 01:09:16.000 --> 01:09:19.439 the finish line, it's about the journey. Look at the long term, 1113 01:09:19.520 --> 01:09:23.800 you know, just don't always be looking at tomorrow. You gotta think a 1114 01:09:23.800 --> 01:09:26.479 little bit ahead. Yeah, I mean, you want to live life like 1115 01:09:26.520 --> 01:09:29.119 it's your last, but also understand that you could possibly live for the next 1116 01:09:29.199 --> 01:09:33.079 forty right. Another thing I like to talk about Roth Iray conversions. A 1117 01:09:33.119 --> 01:09:38.000 lot of client in here who was saying, you know how to Roth conversions. 1118 01:09:38.000 --> 01:09:40.159 I didn't know if it made sense for me, and then we went 1119 01:09:40.199 --> 01:09:45.319 into the software and I found really two things in my opinion. One, 1120 01:09:45.479 --> 01:09:48.680 if you're before rm DS, there's potentially opportunities to save on taxes with Roth 1121 01:09:48.720 --> 01:09:53.800 conversions. After r and DS, I have not seen many scenarios where it 1122 01:09:53.800 --> 01:09:57.079 makes sense to do or Roth conversion that's normally seventy three at this point for 1123 01:09:57.119 --> 01:10:00.600 people. I also say this, anyone low fifty rock conversions can make a 1124 01:10:00.640 --> 01:10:03.479 lot of sense because we're talking about the same thing tax free growth. Right 1125 01:10:03.600 --> 01:10:06.600 over a twenty year period, you can beat whatever taxes you could have saved 1126 01:10:08.079 --> 01:10:12.119 on the jump. But after you get fifty, A lot of financial advisors, 1127 01:10:12.399 --> 01:10:15.479 they differ in opinions. That's where the financial plan comes in because I 1128 01:10:15.520 --> 01:10:18.319 cannot tell you whether it's going to make sense for you or not. This 1129 01:10:18.359 --> 01:10:23.600 particular individual, he wasn't showing a lot of income when he retired, meaning 1130 01:10:23.720 --> 01:10:26.000 he didn't turn on sold security to you. He's not gonna turn on sold 1131 01:10:26.000 --> 01:10:29.119 security twenty seventy, so he's not showing any income there. He doesn't have 1132 01:10:29.159 --> 01:10:32.479 any pensions, so technically in retirement he's not showing any income. So in 1133 01:10:32.479 --> 01:10:36.079 those scenarios, we can be really strategic on how much money we're going to 1134 01:10:36.119 --> 01:10:40.119 put in these rock conversions, and we can save a whole bunch of taxes 1135 01:10:40.119 --> 01:10:43.079 before those r and ds hit and before the solid security starts adding to our 1136 01:10:43.079 --> 01:10:46.039 earned income. Those are the type of things that the financial plan gives you. 1137 01:10:46.119 --> 01:10:49.199 We can't do that unless we have the financial plan. Okay, tax 1138 01:10:49.199 --> 01:10:53.159 efficient asked thet allocation. It's something that we really help with, and that's 1139 01:10:53.199 --> 01:10:57.720 all about making sure that certain accounts that are tax efficient have certain investments to 1140 01:10:57.760 --> 01:11:00.840 have high growth. If you can have a high growth, if you have 1141 01:11:00.880 --> 01:11:03.079 a large capital gain and a tax efficient account, that's better than having a 1142 01:11:03.199 --> 01:11:08.399 high capital gain in a tax inefficient at tax account like a brokerage account. 1143 01:11:08.439 --> 01:11:12.039 For example. Number four is harvesting tax losses, again something we do. 1144 01:11:12.720 --> 01:11:14.920 That's something where we look at the end of the year try to see whether 1145 01:11:15.039 --> 01:11:19.199 or not it makes sense to potentially take some of those tax loss harvests into 1146 01:11:19.239 --> 01:11:23.239 the next year and how that could benefit us and lack. Lastly, I 1147 01:11:23.359 --> 01:11:27.880 talk about required minimum distribution planning r and ds. They can also be qualified 1148 01:11:27.960 --> 01:11:31.399 charitable distributions. They could be qualified distributions. There's a lot of ways to 1149 01:11:31.479 --> 01:11:34.119 work around r and ds. You have to still take them at the end 1150 01:11:34.119 --> 01:11:38.000 of the day, but there's strategies involved where you can see that you don't 1151 01:11:38.039 --> 01:11:40.760 If you don't necessarily want to pay the taxes, good give it to the 1152 01:11:40.840 --> 01:11:43.680 charity. The charity doesn't have to pay taxes either and everyone has a good 1153 01:11:43.680 --> 01:11:45.479 time. But that doesn't mean you get the money either. So if you 1154 01:11:45.520 --> 01:11:48.079 ever have interesting questions about rm and ds, feel free to let us know. 1155 01:11:48.399 --> 01:11:50.960 Feel free to give us a call about that financial plan. We're doing 1156 01:11:51.000 --> 01:11:55.079 so many of these days because they are so beneficial, they go so much 1157 01:11:55.119 --> 01:11:57.520 into detail. I mean, that's what really people need at the end of 1158 01:11:57.560 --> 01:12:00.520 the day, when they reach retirement, it's a time to start planning. 1159 01:12:00.800 --> 01:12:02.920 If you fail to plan, you plan to fail. Thank you for listening 1160 01:12:02.920 --> 01:12:10.119 to us. We'll be right back on the Money Matter Show. Welcome back 1161 01:12:10.159 --> 01:12:12.720 to the Money Matter Show. My name is Todd Glick. I'm here with 1162 01:12:12.760 --> 01:12:15.479 the Bashian Borscini again. The Greenberg Clan is out of the office. They 1163 01:12:15.479 --> 01:12:18.079 are going to be back next week as well as Dave Sure. We were 1164 01:12:18.079 --> 01:12:21.920 looking forward to bringing them back in. I did want to bring up this 1165 01:12:23.079 --> 01:12:28.359 very important event that I'm looking forward to attending on March twenty third. An 1166 01:12:28.439 --> 01:12:31.600 organization and I serve on the Tucson Jewish Museum, a Holocaust Center. I'm 1167 01:12:31.399 --> 01:12:35.199 I'm on the board of directors for that organization. It's an organization I care 1168 01:12:35.239 --> 01:12:40.079 a lot about. First of all, they have the oldest synagogue here in 1169 01:12:39.199 --> 01:12:43.960 Arizona State. It was actually formed before Arizona was even a state, when 1170 01:12:43.960 --> 01:12:46.119 it was a territory. And not only that, right next door they have 1171 01:12:46.159 --> 01:12:50.479 a Holocaust Center which brings in kids, brings in educators and teaches them about 1172 01:12:50.560 --> 01:12:56.000 the atrocities of the Holocaust, but also how easily other societies have fallen into 1173 01:12:56.039 --> 01:12:59.680 genocide, and they talk about the eight steps of genocide and how important is 1174 01:12:59.720 --> 01:13:03.039 for kids, but not only kids, everyone to realize how easy it is 1175 01:13:03.079 --> 01:13:08.279 to other people, how easy it is to be polarized, to have symbolization 1176 01:13:08.359 --> 01:13:12.680 get involved, and that is just a slippery slope into those steps of genocide. 1177 01:13:13.079 --> 01:13:15.359 At the end of the day, I'm pro human humanity. I'd love 1178 01:13:15.439 --> 01:13:19.520 humans. I don't care if you're purple green or you know, red. 1179 01:13:19.720 --> 01:13:23.560 At the end of the day, humans are humans, and that I'm pro 1180 01:13:23.640 --> 01:13:26.600 humanity. And so at the end of the day, any killings of humans 1181 01:13:26.640 --> 01:13:31.119 that are not needed, it's just disgusting. And it's this organization that really 1182 01:13:31.239 --> 01:13:35.560 highlights those atrocities, but not only that tells us how we can move forward, 1183 01:13:35.760 --> 01:13:39.880 learn from them, and be better humans because of it. They're putting 1184 01:13:39.920 --> 01:13:43.880 on a fundraising annual event on March twenty third. It's gonna be from seven 1185 01:13:43.920 --> 01:13:47.880 to ten pm on March twenty third, and if you have want information, 1186 01:13:47.960 --> 01:13:51.399 feel free to contact me at Todd at Greenberg Financial dot com. It's two 1187 01:13:51.439 --> 01:13:55.840 d's, don't spend Todd with one D. No one likes Todd with It's 1188 01:13:55.840 --> 01:13:59.600 Todd at Greenberg Financial dot com. I'll send you a flyer in information how 1189 01:13:59.640 --> 01:14:01.439 to get more information on this event. But again, it's a great event. 1190 01:14:01.880 --> 01:14:04.479 Looking forward to a fun night there. It's going to be at the 1191 01:14:04.479 --> 01:14:09.600 Carriage House downtown. Yeah, I'm really looking forward to it. We had 1192 01:14:09.600 --> 01:14:13.600 a couple of actually just one question written into contact at Greenbrook Financial dot com. 1193 01:14:13.600 --> 01:14:16.479 If you ever want to get that answer and get a question answered, 1194 01:14:16.520 --> 01:14:18.760 just reach out to us, even give us a call. We'll put it 1195 01:14:18.800 --> 01:14:24.640 on the show. Margaret, I've been reading about bitcoin mining after last week's 1196 01:14:24.640 --> 01:14:29.239 show and have been reading about the environmental impact it has. Could you help 1197 01:14:29.279 --> 01:14:32.520 better explain the process of bitcoin mining? Yeah, I mean bigcoin mining is 1198 01:14:32.560 --> 01:14:34.640 complex, But at the end of the day, hold on, I don't 1199 01:14:34.640 --> 01:14:38.239 know if Margaret knows what she just got herself into. Yeah, no, 1200 01:14:38.880 --> 01:14:40.439 I mean at the end of the day. I'm not going to spend too 1201 01:14:40.479 --> 01:14:45.760 much time because it's fun. But bitcoin mining is the confirmation of transactions. 1202 01:14:47.239 --> 01:14:50.960 But put it simply, imagine a ledger, a piece of paper and I'm 1203 01:14:51.000 --> 01:14:55.640 sending I'm sending money to Sebastian and he's sending money back to me. How 1204 01:14:55.640 --> 01:14:57.640 do we keep track of that? Well, we would write it down on 1205 01:14:57.640 --> 01:15:00.399 a ledger each time I send you money and each time you send money to 1206 01:15:00.439 --> 01:15:01.439 me. I mean, that's really what money is at the end of the 1207 01:15:01.520 --> 01:15:06.359 day. Money at the very simplest form, is a communication tool to keep 1208 01:15:06.399 --> 01:15:12.159 us accountable. That's all it is. And we've started We've used sticks, 1209 01:15:12.520 --> 01:15:15.680 we've used beads, we've used seashells. Then we started using gold coins that 1210 01:15:15.760 --> 01:15:19.560 got too heavy. Then we started using paper debt, and then paper debt 1211 01:15:19.600 --> 01:15:23.800 that wasn't backed by anything. Now it's called fiat currency, and that's where 1212 01:15:23.840 --> 01:15:27.720 we are today. So we have constantly technology talking about that early in the 1213 01:15:27.760 --> 01:15:30.840 show. Money's the same way money used to be very inefficient, right, 1214 01:15:30.840 --> 01:15:33.840 It used to be only something that is rare in that region. Well, 1215 01:15:33.840 --> 01:15:36.720 when another region comes in and they see that the other reason that is money. 1216 01:15:36.880 --> 01:15:40.800 They bring in something that they have a surplus of and this region that 1217 01:15:40.840 --> 01:15:44.119 doesn't have a surplus and they flood the market. This has happened for many, 1218 01:15:44.159 --> 01:15:45.960 many years. Now we're at the point where the entire world is pretty 1219 01:15:46.039 --> 01:15:50.079 much globally connected, so we know what everything should pretty much be a cast. 1220 01:15:50.399 --> 01:15:55.800 There are obviously still arbitrage opportunities in this world, but very few compared 1221 01:15:55.800 --> 01:15:58.680 to what there were fifty years ago. And that's because of globalism, and 1222 01:15:58.720 --> 01:16:01.039 that's because of the dollar, I mean not just a dollar money in general. 1223 01:16:01.119 --> 01:16:04.439 The more money out there, the more we can hold each other accountable. 1224 01:16:04.600 --> 01:16:09.880 However, what happens when the money's manipulatable, When happens when the money 1225 01:16:09.960 --> 01:16:14.039 is corruptible, that's when we don't know what's what, what's worth what, 1226 01:16:14.399 --> 01:16:16.600 who's playing the rules of the game. Right, It makes you wonder why 1227 01:16:16.640 --> 01:16:20.840 the company or companies, but countries like Venezuela that you know, have fell 1228 01:16:20.960 --> 01:16:26.119 victims to this hyperinflation, and their dollars are just rampant in the streets, 1229 01:16:26.159 --> 01:16:30.119 Like why do they Why are they so willing to adopt something like this because 1230 01:16:31.000 --> 01:16:35.479 obviously obviously it's this pretty beneficial to them. Argentina, for example, just 1231 01:16:35.880 --> 01:16:40.920 put in a new president who's very pro bitcoin and he's looking forward to it. 1232 01:16:41.119 --> 01:16:43.640 Not only that, El Savador's president, which there's a lot of problems 1233 01:16:43.640 --> 01:16:45.920 without Savage I'm not going to get into it, but you know, what 1234 01:16:45.039 --> 01:16:48.960 he did with bitcoin is the first country to ever do it. They actually 1235 01:16:48.960 --> 01:16:51.520 put it on their balance sheet and they're they're doing pretty good with it. 1236 01:16:51.600 --> 01:16:55.279 So at the end of the day, it also brings in a lot of 1237 01:16:55.319 --> 01:16:59.640 opportunities for these smaller countries that have just been taken been taken advantage of by 1238 01:16:59.680 --> 01:17:00.960 the World Bank and IMF. At the end of the day, yes, 1239 01:17:01.000 --> 01:17:04.479 they're great organizations. They do good things at times, but they've also done 1240 01:17:04.600 --> 01:17:08.159 really bad things to third world countries. And if you look at the track 1241 01:17:08.239 --> 01:17:11.359 record of IMF and World Bank, they've done more harm than they've done good. 1242 01:17:11.520 --> 01:17:14.800 And that's the reality of it. As far as environmental impacts. Go 1243 01:17:15.039 --> 01:17:18.399 to your question mark, I'm gonna ask you to so I plug in a 1244 01:17:18.399 --> 01:17:21.119 bitcoin minor. How much energy is that use? It uses a lot. 1245 01:17:21.319 --> 01:17:28.479 I mean it's gonna use on a scale I maybe ten twenty times the amount 1246 01:17:28.520 --> 01:17:31.039 of regular computer does. I mean it's a lot. I mean these are 1247 01:17:31.159 --> 01:17:34.039 huge. I mean what they're mining. I mean it's not it's not stop 1248 01:17:34.119 --> 01:17:40.239 too the no, I have no idea. I have no idea about that. 1249 01:17:40.319 --> 01:17:43.039 But I mean, let's think about this for example too. These miners 1250 01:17:43.039 --> 01:17:45.239 are getting real hot. When you put a whole bunch in a room, 1251 01:17:45.279 --> 01:17:47.239 it gets real hot. So what do you need more AC that takes even 1252 01:17:47.279 --> 01:17:53.920 more power so it's not a cheap thing to run. That's why we see 1253 01:17:53.960 --> 01:17:58.720 with these marathon which is a minor Riot is a bitcoin minor m a R 1254 01:17:58.760 --> 01:18:02.279 as a ticker, IoT is the ticker. They are bitcoin miners, and 1255 01:18:02.720 --> 01:18:08.319 they continuously buy newer plants and new warehouses to make more bitcoin miners. But 1256 01:18:08.640 --> 01:18:11.600 they have a large, a long road ahead of them because in a couple 1257 01:18:11.640 --> 01:18:14.920 of months they're going to have that happening, so the reward they get for 1258 01:18:15.000 --> 01:18:18.079 bitcoins is gonna get cut in half. So, you know, it seems 1259 01:18:18.079 --> 01:18:23.039 like there's a I'm not telling you to go out and go out and buy 1260 01:18:23.079 --> 01:18:26.079 these stocks because they're highly volatile, and I think that you should probably talk 1261 01:18:26.119 --> 01:18:29.960 to the financial advisor before you do. But there's going to be an opportunity 1262 01:18:30.000 --> 01:18:32.159 for a lot of these companies. That's these bitcoin miners that have already entered 1263 01:18:32.159 --> 01:18:34.520 the game. Because of what you just said, you know, the happening 1264 01:18:34.560 --> 01:18:39.319 is going to take half of the profits away. It takes a really hard 1265 01:18:40.199 --> 01:18:43.800 math equation to figure out can we even start a bitcoin mining at this spart 1266 01:18:44.119 --> 01:18:46.439 you know, like a new company coming into this into this space, it 1267 01:18:46.479 --> 01:18:49.880 would cost so much money to start it up. Think about marathon that's already 1268 01:18:49.880 --> 01:18:54.319 implemented and has all this infrastructure already, and I want to you know, 1269 01:18:54.359 --> 01:18:57.920 I'm Sebastian. I want to start a company and start mining bitcoin. I 1270 01:18:57.960 --> 01:19:00.880 need a lot of money to enter up the game. Yea. Not only 1271 01:19:00.920 --> 01:19:02.439 that it's going to push people out of the market. Well, I always 1272 01:19:02.520 --> 01:19:08.279 love with bitcoin. The normal argument is I don't trust, right, And 1273 01:19:08.279 --> 01:19:12.720 it's like, okay, well, where's your money right now? Right? 1274 01:19:12.840 --> 01:19:15.199 First of all, it's denominated in a currency that you don't trust, that's 1275 01:19:15.279 --> 01:19:18.279 back by called the government. But not only that, it's in a bank 1276 01:19:18.279 --> 01:19:21.279 account, which many people don't trust, you know what I mean, because 1277 01:19:21.319 --> 01:19:25.239 they literally don't have your money. They only have ten percent of it based 1278 01:19:25.239 --> 01:19:29.479 on fractional reserve banking, So technically they don't even really have your money. 1279 01:19:29.520 --> 01:19:33.439 But we trust them way more then we do something controlled by no humans that 1280 01:19:33.600 --> 01:19:36.720 has a code that is incorruptible. You know. The only thing that really 1281 01:19:36.760 --> 01:19:41.359 scares me about bitcoin in the future is quantum computing. If quantum computing comes 1282 01:19:41.359 --> 01:19:44.439 about, it could break not only Bitcoin, but every bank account in the 1283 01:19:44.439 --> 01:19:46.560 world. Everything that we run on right now is basically SHAW two fifty six. 1284 01:19:46.600 --> 01:19:50.159 It's the security protocol that locks things up and keeps people that we don't 1285 01:19:50.159 --> 01:19:55.960 want in our stuff out. But a quantum computer, it can get through 1286 01:19:55.960 --> 01:19:59.960 that easily. And that's the scary part of what potentially could be a great 1287 01:20:00.079 --> 01:20:03.039 innovation in bitcoin, but it could lead to a failure if quantic computing got 1288 01:20:03.079 --> 01:20:08.159 to a level that potentially it could get to. I want to talk a 1289 01:20:08.199 --> 01:20:11.800 little more about data because this is a very interesting thing I found this week 1290 01:20:11.840 --> 01:20:16.640 about a thirty square mile patch in northern Virginia that has been dubbed Data Center 1291 01:20:16.720 --> 01:20:23.960 Alley. The boom in artificial intelligence is turbo charging electricity use struggling to keep 1292 01:20:24.039 --> 01:20:29.760 up. The power company in this area that serves temporarily pause new data center 1293 01:20:29.800 --> 01:20:33.119 connections. At one point in twenty twenty two, Virginia's environmental regulations considered a 1294 01:20:33.119 --> 01:20:39.359 plan to allow data centers to run diesel generators during power shortages, but backed 1295 01:20:39.399 --> 01:20:44.600 off after it drew strong community opposition. So people who don't know what Data 1296 01:20:44.600 --> 01:20:46.640 Center Alley really is, it's a cluster of data centers, businesses, and 1297 01:20:46.640 --> 01:20:50.960 government organizations in Ashburn, Virginia. This area is also known as the Duals 1298 01:20:51.000 --> 01:20:57.600 Technology Corridor due to its proximity to the Duals International Airport. Data Center Alley 1299 01:20:57.640 --> 01:21:01.760 spans across the Fairfax and London County in Virginia, but its infrastructure is utilized 1300 01:21:01.840 --> 01:21:08.920 all around the globe and estimated seventy percent of the world's Internet traffic travels through 1301 01:21:09.319 --> 01:21:15.279 this data center alley each day. Now data center alley, who would have 1302 01:21:15.279 --> 01:21:23.039 known thirty miles square thirty square mile patch and that's where seventy percent of the 1303 01:21:23.079 --> 01:21:29.000 world's Internet traffic each day runs through. A little interesting what's going on out 1304 01:21:29.039 --> 01:21:38.039 there? Maybe a little bit we'll talk about AI. FINRA, the federal 1305 01:21:38.079 --> 01:21:44.319 body of the self regulatory organization came out with a investor were Alert due to 1306 01:21:44.399 --> 01:21:47.880 AIS because they're seeing a number of red flags that investors should look out for 1307 01:21:48.000 --> 01:21:54.119 as warning signs that the investment opportunity might be bogus, beginning with registration status 1308 01:21:54.359 --> 01:21:57.159 of the party making the offer. One of the things they say to look 1309 01:21:57.159 --> 01:22:00.520 out for. Pump and dump. Regulators are warning about schemes evolving AI companies 1310 01:22:00.520 --> 01:22:05.039 where promoters try to gain interest in a stock through false or misleading information to 1311 01:22:05.119 --> 01:22:09.640 drive up the share price and cash out before the hype fades. The other 1312 01:22:09.680 --> 01:22:15.039 one they warn deep fakes. Scammers use AI technology to add a layer of 1313 01:22:15.079 --> 01:22:19.439 authenticity to their efforts. These can be in the form of your grandchild's voice, 1314 01:22:19.520 --> 01:22:25.319 your grandparents voice, and try to get into your investment accounts or tell 1315 01:22:25.319 --> 01:22:29.119 you to potentially buy something that you never should buy. There's a lot of 1316 01:22:29.119 --> 01:22:32.560 problems with deep fakes. Potentially it will continue, probably we'll see into the 1317 01:22:32.600 --> 01:22:40.359 future. Another thing I think I heard the news story about how essentially there's 1318 01:22:40.560 --> 01:22:46.600 one of the what are they called deep fix somebody comes out and calls call 1319 01:22:46.680 --> 01:22:49.479 somebody's mom and says, hey, I have your daughter hostage and I need 1320 01:22:49.520 --> 01:22:54.720 some ransom money. Right. That's terrifying. That's terrifying, especially if your 1321 01:22:54.800 --> 01:23:01.319 daughter's on vacation or something. Yeah, yeah, don't right. The other 1322 01:23:01.359 --> 01:23:06.079 one they've warrened about is buzzwords. AI driven investment schemes have a lot of 1323 01:23:06.079 --> 01:23:12.119 buzzwords related to them, and that has regulated concerned. Just because you see 1324 01:23:12.159 --> 01:23:15.880 AI connected to a stock, just because you see semiconductors connective a stock, 1325 01:23:15.920 --> 01:23:17.880 doesn't mean you should be buying it. This really comes back to working with 1326 01:23:17.920 --> 01:23:23.159 a financial advisor financial professional in general. You need to have someone that knows 1327 01:23:23.279 --> 01:23:27.359 who you are as an investor who knows your level of risk as an investor, 1328 01:23:27.600 --> 01:23:30.600 but more than that, have it backed on a financial plan. Without 1329 01:23:30.600 --> 01:23:34.800 a financial plan, you're never really going to have the true solace that you 1330 01:23:34.800 --> 01:23:39.319 need each night to sleep comfortably, because, like I say many times on 1331 01:23:39.359 --> 01:23:42.000 the show, if you fail to plan, you plan to fail. When 1332 01:23:42.039 --> 01:23:45.800 you have a plan, you know you're doing it the most efficient way. 1333 01:23:45.000 --> 01:23:49.399 When you don't, you could, but there's that opportunity for a failure at 1334 01:23:49.439 --> 01:23:55.640 certain areas. There's so many complex plans we've done lately that people have found 1335 01:23:55.680 --> 01:24:00.279 that they thought they could have never found a simplicity in their financial life that 1336 01:24:00.319 --> 01:24:04.079 we gave them because not only do we really put everything under one roof in 1337 01:24:04.119 --> 01:24:09.119 one picture, we then show them how that picture could develop in morph over 1338 01:24:09.159 --> 01:24:12.760 a twenty year period and what that and what that you know, picture should 1339 01:24:12.840 --> 01:24:16.000 look like in terms of the most efficient outcome. A couple walked in today 1340 01:24:16.000 --> 01:24:19.840 and you know, the husband was making jokes about how she couldn't even sleep 1341 01:24:19.960 --> 01:24:23.840 at night, and she walked out of this office. What's happy as can 1342 01:24:23.960 --> 01:24:26.800 be? She said, She's gonna go have a drink. Exactly. We 1343 01:24:26.920 --> 01:24:29.079 love to help people and if we want if you want to be helped, 1344 01:24:29.119 --> 01:24:30.920 feel free to give us a call five to zero five for four four nine 1345 01:24:31.000 --> 01:24:33.319 zero nine. We'll be right back for the last segment of the Money Meta 1346 01:24:33.399 --> 01:24:38.479 Show. Thank you for listening. Welcome back to the Money Matter Show. 1347 01:24:38.520 --> 01:24:41.319 My name is Todd Glick. I'm here with the Basket Barcini and we got 1348 01:24:41.319 --> 01:24:45.119 our regular guest Jonathan Sabilia on the show. We are happy to have you 1349 01:24:45.159 --> 01:24:46.800 back. How are you doing? Pretty good? Guys, how are you 1350 01:24:46.800 --> 01:24:50.199 You know, it's another fabulous day here at the Greenberg Financial Office. How's 1351 01:24:50.199 --> 01:24:53.760 the market? It is doing well? Well. When you're at all time 1352 01:24:53.800 --> 01:24:56.520 highs, it's hard not to smile, right I. I yeah, as 1353 01:24:56.520 --> 01:24:59.560 long as you're invested into the market, you know, that's exactly that's why 1354 01:24:59.600 --> 01:25:03.159 you think diversified. But uh, you know, first before we get into 1355 01:25:03.159 --> 01:25:06.399 some estate planning, I'm not sure if you know. Me and Sebastian we 1356 01:25:06.439 --> 01:25:11.600 go way back. Okay, so we actually met when we were eleven, 1357 01:25:12.079 --> 01:25:15.239 probably maybe even ten, ten eleven years old. We played was that like 1358 01:25:15.239 --> 01:25:20.079 two years ago right right? More like thirteen eleven years ago, but we're 1359 01:25:20.079 --> 01:25:25.399 getting there. We played on the same Broncos team, the same pee wee 1360 01:25:25.520 --> 01:25:29.439 football team for four years when we went all over the country. I have 1361 01:25:29.439 --> 01:25:31.479 had a lot of fun time and we actually I'm not going to bragg or 1362 01:25:31.479 --> 01:25:35.039 anything, but we were back to back to back city champions, state champions, 1363 01:25:35.079 --> 01:25:40.520 and national runners up twice. The runners up I hate, I hate 1364 01:25:40.560 --> 01:25:42.640 to say that part, but we went to Florida. It was a good 1365 01:25:42.680 --> 01:25:45.359 loss in the championship game twice. It was a tough it was really tough 1366 01:25:45.199 --> 01:25:48.840 sadness. I don't think that Totter I ever dreamt this up, but to 1367 01:25:48.880 --> 01:25:51.479 see something like this come to fruition, you know, from being well not 1368 01:25:51.520 --> 01:25:56.720 only that bes we worked together after Broncos at a country club. We were 1369 01:25:56.760 --> 01:26:00.640 servers, and who would have thought, you know, just two three years 1370 01:26:00.640 --> 01:26:03.600 after that, we'd be working at the same financial office together. So it's 1371 01:26:03.600 --> 01:26:08.600 been a great opportunity that we've been awarded and we're definitely taking advantage of it. 1372 01:26:08.680 --> 01:26:11.239 So I guess I have spent way too much time with you. Yeah, 1373 01:26:11.319 --> 01:26:16.159 you spent you know, I'm getting you better. So we're getting there. 1374 01:26:17.399 --> 01:26:21.600 But John estate planning, you know, we're coming up on tax season, 1375 01:26:21.640 --> 01:26:25.039 which is in the state planning. I understand that, but in terms 1376 01:26:25.039 --> 01:26:29.359 of structuring things. It it brings up taxes in a lot of people's minds, 1377 01:26:29.359 --> 01:26:31.359 so they want to start thinking about what are the best ways to structure 1378 01:26:31.399 --> 01:26:35.000 things. You said a lot of things that we normally go over my head 1379 01:26:35.039 --> 01:26:40.840 about charitable remaining trusts, you know, spousal trust. You have a and 1380 01:26:40.960 --> 01:26:44.399 tell me that this week that came over the difference between the descendant and a 1381 01:26:44.439 --> 01:26:47.199 decendent trust, well just two terms and are two total of different people. 1382 01:26:47.279 --> 01:26:51.800 So the decendant is someone who dies and the descendant is the person who descends 1383 01:26:51.840 --> 01:26:58.079 the decendent the beneficiary, right, So if we want to create trust for 1384 01:26:58.119 --> 01:27:03.479 both of them, A decedents trust is a trust that's usually created for a 1385 01:27:03.520 --> 01:27:11.119 surviving spouse and it protects the deceased spouse's share so they can split the assets 1386 01:27:11.159 --> 01:27:15.199 fifty to fifty. Half the assets go to the survivor, the other half 1387 01:27:15.239 --> 01:27:19.439 goes to the decend and trust which is distribute according to the terms of the 1388 01:27:19.640 --> 01:27:25.319 trust document. Then you know there's a descendants trust. And if we want 1389 01:27:25.479 --> 01:27:30.720 assets to sit inside of a trust for the benefit of the beneficiary, you 1390 01:27:30.760 --> 01:27:32.319 know, depending on the terms of the trust, that can and as we 1391 01:27:32.359 --> 01:27:36.479 call it, the descendants trust, or you can call it credit or protection 1392 01:27:36.479 --> 01:27:40.920 trust, whatever you want, but that's those are two different terms. So 1393 01:27:42.159 --> 01:27:45.000 but you always got to be careful, you know, we creating those things 1394 01:27:45.000 --> 01:27:50.800 too. You know, I had the Goldilocks situation just recently all Friday. 1395 01:27:53.279 --> 01:27:56.800 I had one lady that had two little estate planning, and I had one 1396 01:27:56.880 --> 01:28:00.159 lady that had too much of a state planning, you know, and you 1397 01:28:00.159 --> 01:28:04.159 know one you know, she you know, two million dollars is a lot 1398 01:28:04.159 --> 01:28:08.920 of money, but you know, for state planning purposes, you know, 1399 01:28:09.039 --> 01:28:13.600 that's that's not a whole lot when you're when you state taxes is around twelve 1400 01:28:13.640 --> 01:28:18.399 point five million dollars. So she got herself into too much of state planning. 1401 01:28:18.560 --> 01:28:23.520 Now she's doing in that decedents trust, you know, because we created 1402 01:28:23.520 --> 01:28:26.840 two trusts, one for the survivor and one for the deceased spouse. I 1403 01:28:26.840 --> 01:28:30.119 mean this the attorney that she had, you know, is putting notes, 1404 01:28:30.560 --> 01:28:35.239 you know, loans into that trust. He's there's a there's a piece of 1405 01:28:35.279 --> 01:28:40.439 property up in northern Arizona that's stuck there and they can't get it out. 1406 01:28:41.279 --> 01:28:44.119 You know, it's it's too complicated, it's too much of state planning. 1407 01:28:44.199 --> 01:28:45.960 You know, why are we doing that? You know, and you know, 1408 01:28:46.399 --> 01:28:51.880 I'm sure he's getting paid pretty well to help administer that decedents trust for 1409 01:28:53.159 --> 01:28:56.359 you know, and try to get that money out. She had me review 1410 01:28:56.520 --> 01:29:00.279 the trust and I came up with a couple of good ideas as showed her 1411 01:29:00.439 --> 01:29:03.319 the statute that we would rely on. And you know, if she wants 1412 01:29:03.359 --> 01:29:05.359 to go with me, she can. If she's going to bring that information 1413 01:29:05.399 --> 01:29:09.680 to that other attorney, fine, you know, well that's what you always 1414 01:29:09.840 --> 01:29:12.199 you know, put your hat on. Is you care about people. You're 1415 01:29:12.239 --> 01:29:14.960 not going to really at the end of the day, if someone asked you 1416 01:29:15.000 --> 01:29:18.039 a question, you're not going to not answer it because there's no money attached 1417 01:29:18.079 --> 01:29:20.479 to it. You you actually do care about people, and that's why we 1418 01:29:20.520 --> 01:29:24.520 work so well together. I mean we do free financial plans, you do 1419 01:29:24.560 --> 01:29:28.520 free financial free estate consultations. Yeah. The reason we do that is because 1420 01:29:28.520 --> 01:29:31.479 we believe in being educators. And it doesn't always bring us the business at 1421 01:29:31.479 --> 01:29:35.920 the end of the day, but it does bring us the most business because 1422 01:29:36.000 --> 01:29:40.000 that's how referrals work, right, and people really know they're being taken care 1423 01:29:40.039 --> 01:29:42.479 of. When people know there's not an agenda on the other side of a 1424 01:29:42.520 --> 01:29:45.760 decision. They can actually have something called trust right. Yeah, exactly. 1425 01:29:45.800 --> 01:29:48.600 And you know I was talking about the Goldilocks. You know that lady had 1426 01:29:48.600 --> 01:29:51.239 too much estate planning. And then I just had a phone call with a 1427 01:29:51.319 --> 01:29:56.760 lady that it paid two hundred and fifty dollars for an estate plan for a 1428 01:29:56.840 --> 01:29:59.920 trust. And I went and looked with the guy did and holy cow, 1429 01:30:00.640 --> 01:30:04.880 and he's out of business and she can't find him because there is what he 1430 01:30:04.920 --> 01:30:10.359 did to that deed. It does not follow Arizona statute does not have beneficiaries. 1431 01:30:10.479 --> 01:30:13.319 We don't even know who trust these are on a deed. It just 1432 01:30:13.880 --> 01:30:17.039 it's too little disclosure. We may have to go to court just to get 1433 01:30:17.079 --> 01:30:20.439 that into trust or to at least quiet title. We don't know what the 1434 01:30:20.479 --> 01:30:24.079 heck is going on, but you know, she wanted to take the cheap 1435 01:30:24.119 --> 01:30:29.000 way out two hundred and fifty dollars and got this this house that she wants 1436 01:30:29.039 --> 01:30:33.279 to disinherit her other kids and give it to one child. But before we 1437 01:30:33.319 --> 01:30:36.800 can even make any changes to the trust, what she lost and that guy's 1438 01:30:36.880 --> 01:30:42.600 out of business. She has a deed that's totally screwed up because she went 1439 01:30:42.640 --> 01:30:44.880 to some I don't know what who the heck the guy is? I looked 1440 01:30:44.920 --> 01:30:46.079 them up. I think most people they just go on Google, right, 1441 01:30:46.079 --> 01:30:50.039 and they're like, oh, what's a cheap Willson? There you go two 1442 01:30:50.159 --> 01:30:55.840 hundred and fifty dollars. Well, we're gonna you know, first off, 1443 01:30:55.880 --> 01:30:59.479 I'm having her find the trust document. So once we find that out and 1444 01:30:59.560 --> 01:31:02.359 I know that she's a trustee and can make certain determinations. You know, 1445 01:31:02.479 --> 01:31:05.079 I saw the chain of title. I saw it go from her into a 1446 01:31:05.119 --> 01:31:09.680 trust, but doesn't say who the beneficiaries are, doesn't follow the exemption, 1447 01:31:09.800 --> 01:31:13.119 doesn't have the proper exemption on there, doesn't have the beneficiaries on the deed, 1448 01:31:13.119 --> 01:31:15.279 which it has to have in Arizona, doesn't have the trustee listed. 1449 01:31:15.319 --> 01:31:19.920 Who's the trustee? I don't know she has any power right, So she 1450 01:31:20.000 --> 01:31:24.680 went to some guy to fifty thank you. I don't know what he did 1451 01:31:24.720 --> 01:31:27.359 with the two undred fifty dollars, but you know it's under you know, 1452 01:31:27.399 --> 01:31:30.920 that's that's not not getting enough estate planning when you should have had it. 1453 01:31:30.359 --> 01:31:34.760 You know, technically did she even needed trust right? But you know, 1454 01:31:34.840 --> 01:31:39.119 could have just got away with the will and a couple beneficiary deeds and what 1455 01:31:39.199 --> 01:31:42.840 it called it a day. Look how good you're getting with the it's just 1456 01:31:42.920 --> 01:31:45.760 coming right out of here, you know, a couple of beneficiary deeds. 1457 01:31:45.800 --> 01:31:46.640 I like that, as you know I do. You know, sometimes I 1458 01:31:46.680 --> 01:31:49.840 wanted these guys space out in the middle of my conversation because it's not exactly 1459 01:31:49.840 --> 01:31:55.720 the most exciting area law. But you know, oh yeah, it's always 1460 01:31:55.720 --> 01:31:59.600 over your head. You know, I think again when we talk about the 1461 01:31:59.600 --> 01:32:01.079 full pick. Sure, what you know we're trying to build here. It's 1462 01:32:01.119 --> 01:32:04.199 not just money management, it's not just financial planning. It's not just a 1463 01:32:04.239 --> 01:32:09.319 state planning. I mean we are that financial one stop shop where we had 1464 01:32:09.319 --> 01:32:12.479 a client when we came in, you know, a couple of weeks ago, 1465 01:32:12.880 --> 01:32:15.680 he went from us financial planning. Then when I showed him his investment 1466 01:32:15.680 --> 01:32:17.079 accounts, then he went over to you, talked about a state plan then 1467 01:32:17.119 --> 01:32:21.840 went over across the way talked about loans with dave hands. So we really 1468 01:32:21.840 --> 01:32:25.640 do have everything here. We even have tax accounts we can refer you to. 1469 01:32:25.840 --> 01:32:29.640 So there's a lot of benefits here when you call us, you know, 1470 01:32:29.680 --> 01:32:31.640 all we're all we are is a phone call away five two zero five 1471 01:32:31.680 --> 01:32:34.359 four four four nine zero nine, because we really are here to help. 1472 01:32:34.560 --> 01:32:36.920 We're not. At the end of the day, there's no price tag when 1473 01:32:36.960 --> 01:32:40.880 you come into an initial meeting with us. There's never a price tag any 1474 01:32:40.880 --> 01:32:44.279 meeting with us. But eventually there will be a price tag with John if 1475 01:32:44.279 --> 01:32:47.079 there's business to be had. But in terms of us, we charge aum. 1476 01:32:47.399 --> 01:32:51.119 Obviously John works on a different fee schedule, but in the initial meetings 1477 01:32:51.279 --> 01:32:55.960 are one hundred percent free. There are no obligations. It is just to 1478 01:32:55.960 --> 01:32:58.720 see if it's a good fit for us to move forward. And that's the 1479 01:32:58.800 --> 01:33:00.760 benefit that we're offering everyone who's listening. A lot of the time, people 1480 01:33:00.800 --> 01:33:03.319 just you know, they come in for that first initial financial planning meeting, 1481 01:33:03.359 --> 01:33:06.680 we email them the financial planning meeting and they say thank you. I mean, 1482 01:33:06.720 --> 01:33:10.159 don't hear from them, Yeah, that's okay. Well, more than 1483 01:33:10.199 --> 01:33:15.159 anything, it's the it's the level of comfort people find when not only they 1484 01:33:15.199 --> 01:33:18.960 know what happens after they pass away is going to be taken care properly, 1485 01:33:19.399 --> 01:33:24.359 but when they are alive, everything's going to be taken care properly. Those 1486 01:33:24.399 --> 01:33:29.239 are two very stressful parts of someone's life because it's complicated and there's a lot 1487 01:33:29.239 --> 01:33:30.760 of information you need to know, and there's not enough time to know it 1488 01:33:30.840 --> 01:33:34.000 unless you've been doing it all your career. And that's why you need to 1489 01:33:34.039 --> 01:33:38.800 be working with a professional. You know, it's not always about finding the 1490 01:33:38.880 --> 01:33:42.560 cheapest cheap because, as Don says, you're gonna find sometimes in fear your 1491 01:33:42.560 --> 01:33:45.359 service because of it. Yeah, Or you're going to go to an attorney. 1492 01:33:45.359 --> 01:33:47.560 He's got the mahogany walls and he's got the you know, the the 1493 01:33:47.600 --> 01:33:53.319 cigar, the humidifier and you know, the huge staff, and you're going 1494 01:33:53.399 --> 01:33:56.920 to pay a premium, right and you're going to get over estate planning, 1495 01:33:57.159 --> 01:33:59.640 you know, stuff that Oh my goodness. I told I looked at her, 1496 01:33:59.680 --> 01:34:02.159 I said, what did you get yourself into? And you know, 1497 01:34:02.880 --> 01:34:06.760 and I'm gonna do my best to simplify it if she wants, if she 1498 01:34:08.039 --> 01:34:11.319 you know, if she's comfortable of doing it. But I you know, 1499 01:34:11.359 --> 01:34:14.039 I hope she takes my advice and at least process it, and you know 1500 01:34:14.359 --> 01:34:15.880 she can make an informed decision. That's all that matters. You guys, 1501 01:34:15.880 --> 01:34:19.680 meet with me, you know, the first meeting, it's all about informed 1502 01:34:19.680 --> 01:34:23.960 decisions. You know, I inform you what your options are, and then 1503 01:34:24.000 --> 01:34:27.600 I inform you what it's going to cost, and then you either you know, 1504 01:34:27.920 --> 01:34:30.880 go that way or you know, maybe you're just not comfortable doing it 1505 01:34:30.880 --> 01:34:34.000 now, and then we could set something up down the road. But exactly, 1506 01:34:34.199 --> 01:34:36.279 you know. And that's the thing with financial planning too, you know, 1507 01:34:36.399 --> 01:34:42.119 not you know, they feel you out and if they feel comfortable with 1508 01:34:42.159 --> 01:34:44.479 you, guys, they give you their money and they invest it and you 1509 01:34:44.560 --> 01:34:47.600 make it grow. Yep. And financial planning and estate planning, our job 1510 01:34:47.640 --> 01:34:53.000 as professionals is to be making complex things simple. Right. If you ever 1511 01:34:53.239 --> 01:34:58.560 go to an expert or a professional and they they're using all these high buzzwords 1512 01:34:58.560 --> 01:35:01.760 and they're trying to sound smarter than you, that's a red flag. Oftentimes, 1513 01:35:01.800 --> 01:35:03.880 if you have someone who's really trying to, you know, go over 1514 01:35:03.920 --> 01:35:08.079 your head, that's not a good thing to know. They should be trying 1515 01:35:08.119 --> 01:35:12.640 to make things simple so you understand what they are saying. And so that's 1516 01:35:12.680 --> 01:35:15.199 another big thing to look out for, especially when you're interviewing other people around 1517 01:35:15.239 --> 01:35:20.039 town. No matter what it is, anything that someone who just says just 1518 01:35:20.079 --> 01:35:25.840 trust me, I just don't do that in this world anymore. So really 1519 01:35:25.880 --> 01:35:29.880 dig into someone's past and only that dig into how they are saying something and 1520 01:35:30.079 --> 01:35:31.800 what truly that makes you feel like in the trust level that comes along. 1521 01:35:31.920 --> 01:35:34.119 Yeah, I want you to come into my meaning not trusting me and me 1522 01:35:34.199 --> 01:35:38.359 having to prove it. Yeah right, you know, we'll talk about things 1523 01:35:38.399 --> 01:35:41.079 that may I talk about things that make people feel comfortable, you know, 1524 01:35:41.119 --> 01:35:44.479 how to minimize their taxes. Gu I never thought about that, you know. 1525 01:35:45.239 --> 01:35:47.439 Uh, and that's always a good thing. If they asked me for 1526 01:35:47.520 --> 01:35:50.800 financial financial planning. You know, there are some attorneys out there that pedal 1527 01:35:51.840 --> 01:35:57.640 you know, financial plans, attorneys that you shouldn't be doing it. I'll 1528 01:35:57.640 --> 01:35:59.720 take a step back, I said, I don't want to travel down that 1529 01:35:59.800 --> 01:36:01.920 road. But there's a couple of guys down in the other room that we'll 1530 01:36:02.000 --> 01:36:03.920 be happy to sit down with you, take an hour and talk to you 1531 01:36:03.960 --> 01:36:09.439 about that. That's not my specialty. Okay, we'll talk about how getting 1532 01:36:09.520 --> 01:36:12.880 get at your kids right, but these guys are gonna talk to you how 1533 01:36:12.880 --> 01:36:15.159 to make it bigger. Well, we appreciate everyone listening to this Money Matters 1534 01:36:15.159 --> 01:36:18.199 show. We've had a great time and here at Greenberg Financial Group, we 1535 01:36:18.239 --> 01:36:20.840 all try to be healthy, we all try to be happy, but at 1536 01:36:20.840 --> 01:36:25.439 the end of the day, what we really try to do is be profitable. 1537 01:36:25.680 --> 01:36:26.479 See you next week.