The SP 500 Breaks its 5 Week Winning Streak, Are We Due for a Pullback?

WEBVTT100:00:00.160 --> 00:00:04.040Good morning, everybody. Is thattime once again Sunday morning, eight o'clock200:00:04.559 --> 00:00:09.080it's the Money Batter Show with DeanGreenberg. We'll have everybody on today except300:00:09.160 --> 00:00:14.039Dave Sherwood. He was going aheadand he's with his grandchildren, so it's400:00:14.080 --> 00:00:18.920good. We have a lot totalk about. The markets are looking a500:00:18.960 --> 00:00:24.120little bit to the point that theyneed a little neutrality, okay, little600:00:24.120 --> 00:00:28.679floundering around. We've had a hugerun up. A lot of stocks have700:00:28.800 --> 00:00:38.159really run and again it's those AIstocks because the S and P five hundred,800:00:38.159 --> 00:00:44.079which is up five percent, andthe equal weighted SMP is only up900:00:44.119 --> 00:00:52.200one point four percent. So onceagain there's a difference because of the concentration1000:00:53.439 --> 00:00:58.600in all those big tech AI stocks. That doesn't mean it's gonna stop,1100:01:00.719 --> 00:01:07.400but there could be a pullback.That doesn't mean you sell everything. We've1200:01:07.400 --> 00:01:14.200been trimming, we've been hedging becausemarkets have really on those sides and more1300:01:14.959 --> 00:01:19.239have excessively rallied and if there's apullback, they're all going to go down.1400:01:19.079 --> 00:01:22.760So your heads, yourself a littlebit, You trim back those big1500:01:22.799 --> 00:01:27.439positions a little bit, and youmove forward. The Money Matter Show is1600:01:27.439 --> 00:01:32.480brought to you by Greenberg Financial Group. Greenberg Financial Group is both a registered1700:01:32.480 --> 00:01:36.920investment advisory and a broke a dealand they're registered with the SEC, members1800:01:36.959 --> 00:01:41.079of FINA and members of SIPIK.On the show, we talk about different1900:01:41.079 --> 00:01:46.120products, different strategies, and differentideas. Every one of those things have2000:01:46.239 --> 00:01:52.959some type of risk. We highlysuggest you understand your risk prior to investing.2100:01:53.719 --> 00:01:57.640You understand there's a lot of riskout there, even if you've been2200:01:57.640 --> 00:02:00.840in one of these stocks that havegone up one hundred, two hundred,2300:02:00.840 --> 00:02:05.640three hundred points, because there couldbe a pullback at any time. So2400:02:05.760 --> 00:02:07.520you might be staring at your portfolioand this is great, But if you2500:02:07.520 --> 00:02:14.439don't trim back, if you don'ttake some profits, then it pulls back.2600:02:14.639 --> 00:02:17.240Then you're in that mode of ohwow, I have to sit and2700:02:17.280 --> 00:02:20.199wait. I gotta wait for agood bad If it gets back, they'll2800:02:20.240 --> 00:02:24.560sell. Don't do that. Sella little bit and be upset if it2900:02:24.599 --> 00:02:29.280goes higher with yourself. But thenyou still remember, oh I still have3000:02:29.400 --> 00:02:34.240some you got one hundred shares,come back to seventy five, you got3100:02:34.240 --> 00:02:38.680five hundred shares, cut back tothree point fifty. Just take a little3200:02:38.719 --> 00:02:42.960off the table. If they haverun and your allocation has exceeded what you3300:02:43.039 --> 00:02:51.599really wanted to be at. What'sinteresting about these markets is that for some3400:02:51.680 --> 00:02:58.520reason, the media keeps saying thateveryone wants a rate cut from the Fed.3500:02:58.560 --> 00:03:02.719That's why we're going higher the ratecut. And they expected four of3600:03:02.719 --> 00:03:07.120them, six of them, eightof them this year. And I've said3700:03:07.159 --> 00:03:10.120from the beginning of the end oflast year in the beginning of this year,3800:03:10.159 --> 00:03:17.000I don't see a rate cut.A rate cut would mean that we3900:03:17.120 --> 00:03:22.000have a slowing economy, and theeconomics, to me have said, we4000:03:22.080 --> 00:03:25.840aren't slowing, and if we don'tneed a rate cut, why try to4100:03:25.879 --> 00:03:32.879stimulate inflation. And then the otherday of Monday, last Monday, when4200:03:32.919 --> 00:03:39.919they realize the CPI number came invery very hot, the markets fell off4300:03:42.000 --> 00:03:44.919because they said, oh, they'renot going to raise lower rates right away.4400:03:45.080 --> 00:03:49.479Well, no kidding, and that'swhat they're waiting for. And they4500:03:49.520 --> 00:03:53.879decide not to raise rates. Ikeep saying raising them, I mean lower4600:03:53.960 --> 00:03:59.000rates, interest rates. Then whatare people going to do? Say,4700:03:59.039 --> 00:04:00.199oh, I got to get outof these stocks, and everybody leaves the4800:04:00.199 --> 00:04:05.520party at the same time. That'swhy you trim, that's why you sell4900:04:05.639 --> 00:04:13.240into these ridiculous rallies that you havein some of these stocks, especially the5000:04:13.240 --> 00:04:17.800ones you know, aren't the kriminal, the clem, the best quality there,5100:04:18.360 --> 00:04:20.680and you know those those are theapples that the meta is that the5200:04:20.720 --> 00:04:27.879Googles and the vidiots. Okay,but there's ways to hedge those, and5300:04:27.920 --> 00:04:36.000that's what we've been doing. You'rein a situation where greed is gonna take5400:04:36.079 --> 00:04:44.439over from fear. But if allof a sudden we start going the other5500:04:44.439 --> 00:04:46.839way, the fear is gonna getgreater than the greed and you're gonna have5600:04:46.879 --> 00:04:51.319everyone leave. I always love togive this analogy. You know, you5700:04:51.319 --> 00:04:56.480have a house, nice house,say thirty five hundred four thousand square feet,5800:04:56.639 --> 00:05:00.480and you have a big party,and one hundred and fifty two hundred5900:05:00.519 --> 00:05:06.199people show up at the party,and how do they get there? How6000:05:06.199 --> 00:05:12.160do they come in? They allcome through the front door because not everybody6100:05:12.560 --> 00:05:16.319is coming in at the same time, so it's orderly. You're able to6200:05:16.360 --> 00:05:19.720say hi, You're able to geta drink, They pass around food,6300:05:20.160 --> 00:05:25.199everybody's mingling. You start filling upthe other rooms, and you have a6400:05:25.279 --> 00:05:33.319nice party going on. All ofa sudden, something happens and everybody has6500:05:33.360 --> 00:05:39.160to leave the party at the sametime. Do you think you all can6600:05:39.199 --> 00:05:42.360go through the same way you gotthere, through the front door. No6700:05:42.480 --> 00:05:46.720way. People start jumping out ofwindows, they go through the back door,6800:05:46.720 --> 00:05:48.800they go through the garage, theygo through the front door. Everywhere6900:05:48.839 --> 00:05:50.839you can get out, you getout. Well, think about that.7000:05:50.879 --> 00:05:57.879With stocks. You go in orderlygoing up. But when people need to7100:05:57.879 --> 00:06:02.360get out and they sell out,what happens. It just gets annihilated and7200:06:02.480 --> 00:06:05.439goes down fast and furious, andfear goes in and says, oh,7300:06:05.480 --> 00:06:12.439I got to get out. Relookat this another time, and you give7400:06:12.519 --> 00:06:15.920up fifty hundred whatever points on.Some of these happen when they start turning7500:06:15.920 --> 00:06:23.920down. That's why you have totrim as it goes higher. That's why7600:06:23.959 --> 00:06:28.079you have to protect as it goeshigher. And a three percent position turns7700:06:28.120 --> 00:06:30.839into a six percent position or aneight percent position. You got to trim7800:06:30.879 --> 00:06:36.399back to what you feel comfortable withwhen you made those allocations to begin with.7900:06:39.439 --> 00:06:44.079That'll make you sell high and thenhave cash the by low. There's8000:06:44.120 --> 00:06:46.160always going to be opportunities. Peoplelaugh when I say, oh it's going8100:06:46.240 --> 00:06:51.560up, it's gonna don't be thatfomo fear missing out guy. You hear8200:06:51.600 --> 00:06:57.480that a lot lately, and Iunderstand it because if you just turn on8300:06:57.560 --> 00:07:03.680CNBC or Fox Business or whatever,CNN, whatever it is, they're talking8400:07:03.759 --> 00:07:11.600about the market's going higher by lookingat the indices, the underpinnings aren't there,8500:07:13.199 --> 00:07:15.319and that's called the breath of themarket, which means it's just a8600:07:15.319 --> 00:07:20.199few stocks now and narrnas are goingup, and that is inevitable to have8700:07:20.319 --> 00:07:25.519a correction. Is a correction threepercent, ten percent? I don't know8800:07:26.120 --> 00:07:30.360until it happens. I know wheresupport levels are, and they hold and8900:07:30.439 --> 00:07:32.600turn those are good buying opportunities.I know if they break them where the9000:07:32.680 --> 00:07:39.360next support level is. But youhave to be protecting yourself as the markets9100:07:39.399 --> 00:07:45.279go higher, not exactly when theyturn lower. You can anti your protection9200:07:45.399 --> 00:07:47.720as it's going lower. You cansell off some stuff with the going lower,9300:07:47.920 --> 00:07:51.759and then you get an average pricewhich is higher than the price you're9400:07:51.759 --> 00:07:58.879doing it. So, with theCPI number and the PPI number both coming9500:07:58.879 --> 00:08:03.000in hotter than expect meeting, wehave inflation on the horizon. Again,9600:08:03.519 --> 00:08:09.120You're not going to see the federizaof lower interest rates, and now they9700:08:09.160 --> 00:08:13.399say, well maybe in the summer, Well, things got to get pretty9800:08:13.439 --> 00:08:20.120damn bad between now and the summerfor them to lower interest rates. It9900:08:20.199 --> 00:08:24.800could happen, because on the otherside you had retail sales the worse you've10000:08:24.800 --> 00:08:28.480seen. But I figured that wasgoing to happen. That's why I said10100:08:28.519 --> 00:08:33.039discrimina consumer discussionary is not an areato be in right now. Let them10200:08:33.080 --> 00:08:35.399pull back. The reason being ispeople put a lot of money on credit10300:08:35.480 --> 00:08:41.240cards for Christmas and wanted to enjoythemselves. The bills come due, and10400:08:41.279 --> 00:08:43.159now they're like, Okay, Ibought for Christmas. I'm not buying for10500:08:43.159 --> 00:08:48.320a while until I reduce these creditcard bills, especially with the interest that's10600:08:48.360 --> 00:08:54.879on there. So if they don'traise if they don't lower interest rates going10700:08:54.919 --> 00:09:01.639into the summer and people start talking, well we still have inflation. Are10800:09:01.679 --> 00:09:03.120they gonna raise interest rates? Idon't think they're gonna do that either.10900:09:05.360 --> 00:09:11.919They start getting into the third quarter, they're not raising interest rates. Lowering11000:09:11.919 --> 00:09:15.279interestrates. I can't believe. Ikeep saying lower interest rates. They're not11100:09:15.320 --> 00:09:20.080gonna do that going into the election. I don't believe. Unless something happens11200:09:20.360 --> 00:09:26.879and the economy absolutely weakens. Theydon't want to make a political issue out11300:09:26.919 --> 00:09:33.240of lowing interest rates in an electionyear. But if some black Swan event11400:09:33.320 --> 00:09:35.799happens and all of a sudden wedry up with liquidity, you can bet11500:09:35.799 --> 00:09:41.480your bottom dollar they were lower interestrates. I just don't see it because11600:09:41.519 --> 00:09:46.960I see the economy doing okay.Then on Friday, they were making all11700:09:46.000 --> 00:09:52.240these excuses about the CPI and thePPI just keep making excuses. The question11800:09:52.480 --> 00:09:58.840is if they came in lower thanexpected, would they use the same excuses11900:10:00.120 --> 00:10:03.679seasonality and this and that to say, well, maybe they shouldn't be coming12000:10:03.720 --> 00:10:09.320down as much. No, theywant to put out a rhetoric that tells12100:10:09.399 --> 00:10:16.159you that things are really good.They don't want to tell you the truth.12200:10:18.159 --> 00:10:22.440And as we've realized over the years, the government just does not tell12300:10:22.440 --> 00:10:30.120you the truth. So I'm goingto tell you the truth. These numbers12400:10:30.200 --> 00:10:35.759show exactly what I thought was goingon. Inflation has not gone away.12500:10:35.919 --> 00:10:41.759It's still there. And how doI know that. I see the bills,12600:10:43.799 --> 00:10:48.240I pay the bills. I seethe grocery bills. I see the12700:10:48.279 --> 00:10:54.759water bills, the electric bills,the gas bills. I see the gasoline12800:10:54.759 --> 00:11:01.919prices. Sure they're down, butthe way up. The average family might12900:11:01.960 --> 00:11:05.519have gotten a little bit of abump in their salary, which is creating13000:11:05.879 --> 00:11:11.600the inflation, but nowhere enough isit giving you the opportunity to take advantage13100:11:13.080 --> 00:11:20.440of where prices are. So weare in a quandary where people do not13200:11:20.519 --> 00:11:22.639have enough money. So then theystart spending on things that they wanted to13300:11:22.759 --> 00:11:26.919on credit cards, and credit carddebt has risen. Interest rates on those13400:11:28.000 --> 00:11:35.039have risen to where it's making italmost impossible for the average family to get13500:11:35.080 --> 00:11:46.080ahead. These are important things tounderstand when you're investing, and it's a13600:11:46.159 --> 00:11:50.799difficult thing because, let's face it, guys, you don't want to miss13700:11:50.799 --> 00:11:54.000out. You want to make themoney, but you don't want to lose.13800:11:54.200 --> 00:12:00.759It's impossible to do both. What'spossible is to allocate and be concerned13900:12:01.480 --> 00:12:05.480about the things that are out there, but stay invested in areas that you14000:12:05.600 --> 00:12:09.519think are the leading edge of wherewe're going. So when I look at14100:12:09.559 --> 00:12:13.639what's going on, do I wantto be in consumer discretion right now?14200:12:13.679 --> 00:12:18.399No, because I don't think theconsumer is going to increase their spending until14300:12:18.440 --> 00:12:22.240they start lowering the debt. Nowthe lower interestrates that will help. Of14400:12:22.320 --> 00:12:28.039course, UNTWOL prices come down.I don't see consumers buying. We are14500:12:28.080 --> 00:12:37.240a consumer oriented economy. Consumers mustbuy for us to grow. Earnings have14600:12:37.360 --> 00:12:39.000been good and they're going to continueto be good and get better. You14700:12:39.039 --> 00:12:48.879know why. Artificial intelligence, robots, there's the future. We're in the14800:12:48.960 --> 00:12:56.000stage right now. I believe inmy life this is the last big stage14900:12:56.360 --> 00:13:01.519of change that we're going to seeon how we just do everyday stuff.15000:13:03.840 --> 00:13:09.519Our first one was in the nineties, as the computers were coming through and15100:13:09.519 --> 00:13:13.559they got better and better and fasterand faster, and opportunities arose and you15200:13:13.600 --> 00:13:16.679were able to go ahead and doso much with that and the Internet.15300:13:18.639 --> 00:13:24.360The next big movement was when theytook all that and put it on our15400:13:24.240 --> 00:13:31.720smartphones, and our smartphones were ableto give us the opportunity to do everything15500:13:31.759 --> 00:13:35.519we do and on these big computersin our health held hand, we can15600:13:35.600 --> 00:13:39.200google anything, we do anything wewant. Well, then, obviously,15700:13:39.360 --> 00:13:45.120along with the good became the bad, and a lot of social media is15800:13:45.240 --> 00:13:50.720false, fake and made up,and you have to disseminate between the truth15900:13:50.759 --> 00:13:54.120and the bad, and a lotof people can't do that. And now16000:13:54.159 --> 00:13:58.639in this next stage, and youhear about it all the time, AIAIAI.16100:14:01.679 --> 00:14:07.159It's not going away, and itcan be dangerous, but I'm gonna16200:14:07.159 --> 00:14:15.120focus on the positive of how it'sgoing to change civilization. First of all,16300:14:15.200 --> 00:14:18.159companies are not going to need asmuch as a labor force. So16400:14:18.320 --> 00:14:22.399sure, we've raised up the prices, but if you're not going to hire16500:14:22.480 --> 00:14:28.720more people because you have AI technologyand robotics taking care of what humans used16600:14:28.759 --> 00:14:31.440to do, you don't need asmany and over time, that's going to16700:14:31.519 --> 00:14:39.679be a lot to the bottom line. Number Two, AI is going to16800:14:39.799 --> 00:14:46.240change the medical field, the manufacturingfield, the gaming field, the entertainment16900:14:46.320 --> 00:14:54.240field, the automobile field, industry. I should say every one of those17000:14:54.279 --> 00:15:00.120are going to change for the better. And it's not just the companies that17100:15:00.159 --> 00:15:03.039are at the forefront, these bigones, they're gonna still be growing because17200:15:03.039 --> 00:15:09.159of this AI. It's the companiesthat are supplying the apples and the MICROSOFCE17300:15:09.240 --> 00:15:13.080and everyone else. And that's whereI have to tell you you gotta be17400:15:13.200 --> 00:15:18.240careful. Every Tom, Dick andHarry is going to try to sell you17500:15:18.639 --> 00:15:24.399the next AI. That's gonna beMicrosoft or Google or Amazon or you name17600:15:24.440 --> 00:15:31.360it. Stay away even if itis stay away unless you do your homework.17700:15:33.480 --> 00:15:37.720Find the ones that actually got contractswith the microsofce the Googles and stuff.17800:15:37.840 --> 00:15:45.120Don't take somebody's word for it.This is we are looking for growth17900:15:45.159 --> 00:15:48.320companies for our growth oriented people.We're looking for opportunities. Of these,18000:15:48.799 --> 00:15:52.960you buy three to four or fiveof them, hopefully two of them are18100:15:52.960 --> 00:15:56.879big, two of them are neutral, and you'll probably lose on one,18200:15:56.080 --> 00:16:03.080but you don't put a lot ofmoney usify allocate. But we're looking for18300:16:03.120 --> 00:16:07.639the opportunities and good quality. Arethe companies that are already making money that18400:16:07.679 --> 00:16:11.000people don't know about, that wecan hold for the next one two,18500:16:11.120 --> 00:16:22.200three years, that are gonna benefitfrom this boom. Excuse me. That's18600:16:22.200 --> 00:16:26.440where you got to be looking totry to make some money while keeping the18700:16:26.480 --> 00:16:34.919great quality stocks. And it's notjust like in you know, Microsoft and18800:16:36.000 --> 00:16:41.039Google and Amazon and all they're theforefront. It's in companies even like deer18900:16:44.200 --> 00:16:49.279deer is going to automate with AI. All the machines and how you how19000:16:49.279 --> 00:16:52.159do you do farming, how doyou do construction? How do you do19100:16:52.240 --> 00:16:57.919things? It's on the forefront.There's things that we can't even think about.19200:16:57.960 --> 00:17:00.759So many people think of A isjust being the vision pro and all19300:17:02.000 --> 00:17:06.200and the and the and the metameta uh verse. That's part of it.19400:17:07.559 --> 00:17:14.279And that's entertainment. And I promiseyou entertainment's gonna change. The movie19500:17:14.279 --> 00:17:17.759theaters are gonna change. The waywe watch TV is gonna change. Everything19600:17:17.799 --> 00:17:23.160we do is gonna change. We'rein the in the beginning stages of a19700:17:23.200 --> 00:17:27.359ball game that's gonna probably last forthe next five, six, seven,19800:17:27.440 --> 00:17:36.200ten years. There'll be downs,they'll w ups. Think about going back19900:17:36.240 --> 00:17:40.960to the computers. You had theibms, you had Compact computer, you20000:17:41.039 --> 00:17:44.559got Apple that had fits and starts, so it really made it. And20100:17:44.599 --> 00:17:48.440you had Dell computer that went upand then almost went out, became private,20200:17:48.519 --> 00:17:51.920came back on. That's the hardware. We got rid of the hard20300:17:52.000 --> 00:17:56.720The hardware isn't the important part.Everyone still needs that, but those are20400:17:56.720 --> 00:18:04.000commodities now. It's the leading edgeof the software. Is what makes Microsoft20500:18:04.119 --> 00:18:11.839so great. It's the cloud thatmade Amazon and Google so great. It's20600:18:11.880 --> 00:18:15.759the AI that they're using for allthis stuff of gathering information. So who20700:18:15.839 --> 00:18:21.920are the companies making the servants whothe company's doing all these things for these20800:18:21.960 --> 00:18:26.440great companies. That's what we're lookingfor. That's where we're trying to go20900:18:27.319 --> 00:18:33.799along with the good companies and allocating. And now you know what, you21000:18:33.799 --> 00:18:37.200can get over four something percent ongovernment bonds. They were up over five21100:18:37.279 --> 00:18:41.799or something of four percent. Wehaven't been able to get that in so21200:18:41.200 --> 00:18:47.079long other than the last year anda half two years. So you can21300:18:47.200 --> 00:18:52.680actually building bond ladders with good corporatesand treasuries that you haven't been able to21400:18:52.680 --> 00:18:56.839do, and you can build themin for three, four, five,21500:18:56.920 --> 00:19:02.759six, seven years. Then there'sother tactics you can use with it.21600:19:02.799 --> 00:19:07.400In case the industrates do come down, you extend out the TLT that will21700:19:07.440 --> 00:19:14.640go up in appreciation, whether that'sUS government bonds and the ETF strategies are21800:19:14.680 --> 00:19:19.960important in these markets. Understanding howto mitigate mitigate risk is important after you21900:19:21.039 --> 00:19:26.279put that whole plan together. Iknow some people don't think they need a22000:19:26.319 --> 00:19:30.839plan. I was one of themtwo a four or five years ago,22100:19:33.279 --> 00:19:34.440and a light bulb went off andsaid, if you have a plan,22200:19:34.480 --> 00:19:40.640that makes managing the money that mucheasier because you know how much income you22300:19:40.720 --> 00:19:44.559got to bring to people. Youknow exactly how much growth if it's there,22400:19:44.680 --> 00:19:47.359so they can go ahead and takethe risk. You know what their22500:19:47.440 --> 00:19:52.119risk tolerances are. You know,if they're getting money off of other investments.22600:19:52.480 --> 00:19:56.240Their pensions is social security when ittakes social security, Hey, we're22700:19:56.279 --> 00:20:00.400getting closer and closer for the peoplethat are six A sixty three years old22800:20:00.640 --> 00:20:04.480that by the time you get yourSocial Security at full retirement age, your22900:20:04.559 --> 00:20:08.319mind's wait to seventy because if you'regonna have to be sixty eight and changed,23000:20:08.440 --> 00:20:15.839your might a's wait to seventy andget the maximum mount. And then23100:20:15.839 --> 00:20:21.200we're gonna have to do tax planning. Here, remember what's coming up.23200:20:23.039 --> 00:20:30.359If they do not go ahead,and and and and and the with the23300:20:30.400 --> 00:20:36.240Trump tax cuts coming up in ayear, what is a year? I23400:20:36.279 --> 00:20:41.559think they have to either extend them, make them permanent, or they go23500:20:41.640 --> 00:20:48.680away. Well, the biggest onein there is your state planning. Everyone's23600:20:48.759 --> 00:20:53.000net worth has been going up andright now it sits a twelve million per23700:20:53.000 --> 00:20:56.319person, So that's pretty good.You have over twenty four million dollars,23800:20:56.359 --> 00:21:00.799then you have to pay a statetaxes. They can go all the way23900:21:00.880 --> 00:21:04.039back down to six million, fivemillion, and I heard talk about one24000:21:04.079 --> 00:21:11.440million dollars a person. If Bidengets back in not to mention the tax24100:21:11.559 --> 00:21:15.240brackets will go up. Then whatare they going to be doing when they24200:21:15.319 --> 00:21:18.960start looking for more taxes? Becausenow with AI and we don't need the24300:21:19.039 --> 00:21:25.880biggest workforce labor as you know,has been an unemployment around three and a24400:21:25.920 --> 00:21:30.920half to three point nine percent forthe last five years, what are we24500:21:30.920 --> 00:21:38.279gonna do. There's no taxation onrobots. In fact, they're probably getting24600:21:38.319 --> 00:21:45.599depreciation. So if you're go todon't sit there and tell us, well,24700:21:45.599 --> 00:21:48.720the rich don't pay when you're allowingthem to have all these tax breaks.24800:21:49.039 --> 00:21:56.119But what I'm afraid of going downthe road them going ahead and saying,24900:21:56.200 --> 00:21:59.279yeah, you can put money awayin your four one k planned but25000:21:59.319 --> 00:22:04.680it's not gonna be tax deduction anymore. Now, that's not gonna be good.25100:22:07.039 --> 00:22:10.160That will raise a lot of moneyfor the government to be able to25200:22:10.160 --> 00:22:14.400pay for Social Security because you know, in ten years the money that is25300:22:14.519 --> 00:22:21.720estimated to flow through it is onlyseventy seven percent of what Social Security be25400:22:21.799 --> 00:22:27.119for be there because people living longer, people living longer. So unless you25500:22:27.119 --> 00:22:30.599want to have to wait till yourseventy five years old. To even get25600:22:30.680 --> 00:22:34.200Social Security, they're gonna have tomake some changes. And the only way25700:22:34.240 --> 00:22:37.920that is is ConA go ahead andsay I'm not raising your taxes, but25800:22:37.960 --> 00:22:42.720they're gonna become creative in raising yourtaxes by taking away things that you don't25900:22:42.759 --> 00:22:48.079pay taxes on. And the fourto one K retirement market could be one26000:22:48.119 --> 00:22:51.519of them, because it's huge,not that you can't put the money in26100:22:51.720 --> 00:22:56.799and not that it can't go aheadand grow tax deferred, okay, and26200:22:56.839 --> 00:23:00.119then you only pay on the moneythat you would actually be making. And26300:23:00.200 --> 00:23:03.599later on it would be almost setup like an annuity. When you buy26400:23:03.640 --> 00:23:08.519an annuity that comes from taxable dollars, but when the money's in the annuity,26500:23:08.519 --> 00:23:12.200you do not pay any taxes onit until you take the money out,26600:23:12.519 --> 00:23:17.200and it's only the money you madeyou gained is the money that you26700:23:17.279 --> 00:23:21.160have to pay taxes on, notthe initial principle. So if you have26800:23:21.200 --> 00:23:22.759a four one K plan that youput a half a million bucks in,26900:23:23.039 --> 00:23:26.079it grows to a million, you'reonly going to pay taxes when you take27000:23:26.119 --> 00:23:30.240out that million, that five hundredthousand, not the first five hundred thousand27100:23:30.880 --> 00:23:34.079because they're going to try to taxthat beforehand. These are all things that27200:23:34.119 --> 00:23:40.920are on the table that we haveto be concerned about. Taxation, mitigating27300:23:41.000 --> 00:23:45.640taxes, mitigating estates is coming upand it's going to be very important,27400:23:45.839 --> 00:23:49.400and that's one of the reasons Ipartnered it up with the Johnson Group Accountants.27500:23:51.279 --> 00:23:53.480Okay, and I partnered up alsoin our office, as you know,27600:23:53.559 --> 00:23:59.599with Jonathan Sabilia, who does allour state planning. It's very important27700:23:59.799 --> 00:24:04.000a part of the planning we dothat we have people in my office that27800:24:04.079 --> 00:24:07.440are able to work with every oneof our clients and we're able to work27900:24:07.480 --> 00:24:15.400with their clients to give them thebest possible outcome mitigating risk, mitigating taxation,28000:24:15.720 --> 00:24:18.880and mitigate their state plan. We'llbe right back. We appreciate you28100:24:18.960 --> 00:24:25.119listening. This is Dean Greenberg andthis is the Money Matty Show. Welcome28200:24:25.119 --> 00:24:26.720back, everybody. This is DeanGreenberg. This is Money Matty Show.28300:24:26.720 --> 00:24:30.000I got Dylan, I got Todd, and I got to see Bostin here28400:24:30.039 --> 00:24:34.039filling in for Dave today. Goodmorning, guys, Good morning. So28500:24:34.119 --> 00:24:37.599this week we had the Dow downjust slightly, SMP down slightly as well,28600:24:37.599 --> 00:24:41.519and NASDAK led the way down atone point three, but the russell28700:24:41.039 --> 00:24:47.160up one point one and the eupero point seven percent. So a reversion28800:24:47.200 --> 00:24:51.440of what we've seen predominantly this yearand last year, actually having the equited28900:24:51.759 --> 00:24:56.880outpace the S and P five hundred. No comments that, all right,29000:24:56.920 --> 00:25:00.359so we'll keep going so on themonth, though obviously the RSP is still29100:25:00.359 --> 00:25:03.559trailing S and PN. On theyear, the RSP is only one point29200:25:03.599 --> 00:25:07.559four versus five percent year to datefor the S and P five hundred.29300:25:07.599 --> 00:25:11.000So all in all, we arestill seeing the Mega seven being taking over.29400:25:11.200 --> 00:25:14.319But this week we've seen a littlereversal. Well. We had the29500:25:14.759 --> 00:25:18.400we had the CPI number come inhot on Monday, and then on Friday29600:25:18.400 --> 00:25:19.960we had the PPI number come inhot. But then we had the retail29700:25:21.000 --> 00:25:25.599sales come in low unexpected. Wehad housing starts, gifts get annihilated.29800:25:25.839 --> 00:25:29.359All right, So there's there's numberson both sides here, and the market29900:25:29.400 --> 00:25:32.240does exactly what he does at time. It goes down and comes back and30000:25:32.240 --> 00:25:34.279then it flounders. What we sawwith the retail sales coming in lower than30100:25:34.359 --> 00:25:40.000expectations, but at higher CPI anda higher PPI shows that services sector was30200:25:40.039 --> 00:25:45.279really what caused inflation to increase somuch, obviously goods when it is not30300:25:45.400 --> 00:25:48.400the reason because we had such alow retail sales that came in. So30400:25:48.640 --> 00:25:52.200the services sector is what's driving theinflation. But yeah, we talk about30500:25:52.200 --> 00:25:56.400the Fed here, what a positionthey're putting themselves in because they came into30600:25:56.440 --> 00:26:00.960this year three or four rate cutsand that's actually what the Fed members priced30700:26:00.000 --> 00:26:03.640in the market thought five or soon the dot plots. On the dot30800:26:03.680 --> 00:26:07.720plots, they that's what they wereprojected, talking about three for the year.30900:26:07.880 --> 00:26:11.400Yeah, but you know the marketwas kind of four and some crazy31000:26:11.440 --> 00:26:15.279people think five or six, right, and so all. And although at31100:26:15.279 --> 00:26:19.039this point it's more and more likelythat they're just gonna keep holding. I31200:26:19.039 --> 00:26:23.759mean, you really have to seeinflation not increasing right for them to even31300:26:23.880 --> 00:26:29.839consider cutting rates, and we're noteven close to that. Ism, Manufacturing,31400:26:29.839 --> 00:26:33.960im services, they all stay strongright now. The economy is slowly31500:26:33.079 --> 00:26:37.720deteriorating, but it's not deteriorating,but it's not really Okay. The tail31600:26:37.759 --> 00:26:41.480sales was way down. Why becausewe all saw in December that they bought31700:26:41.519 --> 00:26:45.680more someth than they needed to becausethey were in a happy mood. Okay,31800:26:45.759 --> 00:26:48.240markets were going up, everybody washappy. Let's put it on credit31900:26:48.240 --> 00:26:51.319card. Well, guess what whenyou get your credit card bill in January,32000:26:51.359 --> 00:26:52.440what do you have to do?You got to pay it. So32100:26:52.480 --> 00:26:55.599when you have to pay it,what do you do? You stop buying?32200:26:56.000 --> 00:26:57.400Yeah, and I mean it's alsoyou're buying all the gifts and everything32300:26:57.400 --> 00:27:00.279for the holidays, anything else youmight need for the hot all day.32400:27:00.319 --> 00:27:02.759So when January comes said, okay, I got to tighten up a little32500:27:02.759 --> 00:27:04.400bit. Regardless of if they havestuff, they just want to tighten up32600:27:04.400 --> 00:27:08.400and not pay as much. Andrates increased a lot throughout the week because32700:27:08.440 --> 00:27:12.000of those high inflation reports. Wehave the two year at four to six32800:27:12.079 --> 00:27:15.799and the ten year is at fourto two. Now the one years almost32900:27:15.880 --> 00:27:18.359back to five handle, so we'vedefinitely seen a big increase. The inversion33000:27:18.519 --> 00:27:23.000has continued to widen on that twoten year spread, so we're not out33100:27:23.000 --> 00:27:26.400of the woods yet when it comesto the inversion. Oil was up this33200:27:26.480 --> 00:27:30.160week. It's now at seventy eightdollars. Barrel gold was down twelve dollars33300:27:30.359 --> 00:27:37.400to twenty twelve, and ounce goldreally hasn't done much of anything because bitcoin33400:27:37.480 --> 00:27:40.599is taken over right now. Ithad an exciting week, it did.33500:27:40.759 --> 00:27:44.640I hear a lot of people sayingthis is the one more big move up33600:27:44.680 --> 00:27:48.279and legan bigcoin. I remember hearingthat last time it was in the fifty33700:27:48.359 --> 00:27:52.039thousand dollars range and stuff, andboom, next thing we saw it was33800:27:52.119 --> 00:27:55.119what ten twelve, seven thousand.Yeah, I appreciate. I don't think33900:27:55.160 --> 00:27:57.640that's going to happen because the etsand now with it well, I mean,34000:27:57.640 --> 00:28:00.160if you remember back in twenty seventeenwhen we first talked about bitcoin,34100:28:00.200 --> 00:28:03.039when you were actually my lacrosse coachat the time, it was at seven34200:28:03.039 --> 00:28:06.240thousand, and it ran up totwenty and then guess what, plumbed it34300:28:06.279 --> 00:28:08.359all the way down the three thousand. Then that next Bowl run it went34400:28:08.359 --> 00:28:11.319from three thousand to sixty four thousand, pim all the way back down to34500:28:11.319 --> 00:28:15.160twelve thousand. Now we're back upto fifty thousand. Are we going to34600:28:15.200 --> 00:28:19.000continuously do this trend of this couldbe on in bitcoin too, and it34700:28:19.039 --> 00:28:23.759could be the start of something.I don't know. I know this for34800:28:23.799 --> 00:28:27.759the last year, all we've beenhearing about is we'll getting rid of the34900:28:27.799 --> 00:28:33.640dollar, didge a little currency.Have you seen the increase of people buying35000:28:33.680 --> 00:28:38.240the dollar in in our currency andthe bonds. Well, if that was35100:28:38.279 --> 00:28:42.359if they thought that it was goingaway, trust me, China and Japan35200:28:42.480 --> 00:28:48.680and all these other countries wouldn't begoing in and having buying record amounts of35300:28:48.240 --> 00:28:52.359our currency and our debt. Yeah, we've talked about this multiple times.35400:28:52.400 --> 00:28:56.880Anyone who actually think there's a threatto the US dollar doesn't really understand how35500:28:56.880 --> 00:28:59.519the system works. At the endof the day, what really backs our35600:28:59.559 --> 00:29:03.160dollar would is what most people's argumentson why we're potentially gonna lose our world35700:29:03.160 --> 00:29:07.680reserve currency. The reason we havethe world deserve currency is one thing our35800:29:07.720 --> 00:29:11.279military. We have the strongest militaryand we put the most money into our35900:29:11.279 --> 00:29:15.200military as well. With that,I want to give a warning to people.36000:29:15.359 --> 00:29:18.599Okay, there's a couple of things. You're gonna be out there and36100:29:18.759 --> 00:29:21.559people are gonna be sending you emails, they're gonna get you on the phone,36200:29:21.599 --> 00:29:23.599they're gonna talk to you, andyou're gonna have different things. The36300:29:23.680 --> 00:29:27.599AI boom, Be careful. Everythingisn't gonna be the next Amazon, Google,36400:29:27.680 --> 00:29:33.359Apple law on the video number one. Number two, don't get sucked36500:29:33.400 --> 00:29:36.759into this gold because the world iscoming to an end by gold. Because36600:29:36.799 --> 00:29:38.480if they have your gold in youriora and this comes to the world and36700:29:38.519 --> 00:29:42.160it's hard asset, I promise youthat guy will risk everything he has because36800:29:42.200 --> 00:29:45.279there is nothing left to take yourgold and go wherever he's gonna go.36900:29:45.440 --> 00:29:48.519That's the funniest thing about the IRAis who cares it's in an IRA?37000:29:48.640 --> 00:29:52.279If the world's ending, it's notreal? What exactly you don't have it,37100:29:52.279 --> 00:29:55.519it's not in your hands. Theyain't giving it to you. There's37200:29:55.559 --> 00:29:57.039no rules at that point. Tothat point, Dane, we had a37300:29:57.119 --> 00:30:00.200question written in this week. Ifyou guys ever need a question answered,37400:30:00.200 --> 00:30:03.279you could write it in. It'sa contact at Greenbrik Financial dot com.37500:30:03.319 --> 00:30:06.880Reagan asked, I've been seeing alot of commercials out there trying to sell37600:30:06.920 --> 00:30:10.680gold and other precious metals. Isnow a good time to buy these sorts37700:30:10.680 --> 00:30:12.960of assets? Then you kind ofjust answered that, well, my first37800:30:14.000 --> 00:30:17.160thing doesn't fit in with your withyour allocation? Is that what you need?37900:30:17.720 --> 00:30:19.359Okay? Is that what you want? If you want protection, there's38000:30:19.400 --> 00:30:23.519other ways to protect your your youryour your investments. Okay, But if38100:30:23.519 --> 00:30:26.200that's what you think, and that'swhat you want having a small position,38200:30:26.240 --> 00:30:30.759and it is fine. What I'msaying is he's every time these commercials come38300:30:30.799 --> 00:30:33.839on, every time that people talkabout him, it always tops out at38400:30:33.839 --> 00:30:37.000someplace. But the biggest one rightnow is let us hold your gold for38500:30:37.119 --> 00:30:41.000you. I'm telling you that guydoesn't know who the hell you are.38600:30:41.319 --> 00:30:45.319He's going to take your gold ifit's that damn da in the in the38700:30:45.400 --> 00:30:48.400in the company, if they haveit in a safe someplace like they say38800:30:48.440 --> 00:30:52.279they do, we have your hotassets, because you can't hold it.38900:30:52.279 --> 00:30:55.000It's got to be with an ioa company. Those things are not going39000:30:55.039 --> 00:30:56.920to be there. And then theAI stuff you got to worry about.39100:30:57.279 --> 00:31:00.640And then the uh well was theother thing we talked, but just now39200:31:00.759 --> 00:31:06.799I thought me too. No,it was mainly Golden AI you're talking about,39300:31:07.279 --> 00:31:07.920and there are I mean. Andalso, I mean, going back39400:31:07.920 --> 00:31:11.359to your point on not everything's goingto be a home run. It's in39500:31:11.519 --> 00:31:14.039recent history. I mean, ifyou're around in the dot com bubble,39600:31:14.039 --> 00:31:15.480there was a lot of those companiesthat went out of business when everything was39700:31:15.519 --> 00:31:19.000going up. They couldn't stand theycouldn't last. But in more recent it's39800:31:19.000 --> 00:31:22.640that twenty twenty boom, whenever allthe spacks came out. We had all39900:31:22.640 --> 00:31:27.720these companies that just exploded anytime theywent anytime they went public, they just40000:31:29.000 --> 00:31:30.519exploded about one hundred percent, andeverybody thought, Okay, they're never going40100:31:30.559 --> 00:31:33.640to go down, because at thatpoint they didn't. But now a lot40200:31:33.640 --> 00:31:37.119of those companies that aren't making anymoney, that are just shouldn't have ever40300:31:37.160 --> 00:31:41.559really gone public. They just itwas part of the craze are now back40400:31:41.559 --> 00:31:44.680down to their evaluations being a pennystock and not a good company. And40500:31:44.720 --> 00:31:45.960people think that they're going to comeall the way back because at one point40600:31:47.000 --> 00:31:49.720they were seven dollars a share.It's not necessarily true likely to go out40700:31:49.720 --> 00:31:52.240of business because they're not a goodcompany and they should have never gone public.40800:31:52.400 --> 00:31:56.319You know, Dean, we weretalking today about AI and the fact40900:31:56.359 --> 00:32:00.000that a lot of these companies whoare purchasing AI and building out these AI41000:32:00.119 --> 00:32:02.400fronts, they're not profitable yet.There's no money coming into the business from41100:32:02.440 --> 00:32:07.599these AI business But what people arebenefiting on AI right now are the suppliers,41200:32:07.960 --> 00:32:10.039the people who supply the AI chips. Those are the companies that,41300:32:10.119 --> 00:32:13.680regardless of if AI works are not, they're going to be making money.41400:32:13.880 --> 00:32:17.599Those AI companies that are coming upthat actually cutting edge. Every venture capital41500:32:17.640 --> 00:32:22.440firm knows who they are, andthey're already getting brought up as private companies41600:32:23.000 --> 00:32:28.160and then being sold out and notgoing public itself. The ones that have41700:32:28.200 --> 00:32:32.640won public are usually not being broughtpublic by the big institutions who can support41800:32:32.680 --> 00:32:37.400them. They need capital. Theydon't have venture capital people who do it,41900:32:37.640 --> 00:32:39.759and it's smaller brokeage firms that tobring them then and then sell the42000:32:39.839 --> 00:32:43.880idea this is AI. It's arisk, but it's going to be there,42100:32:43.880 --> 00:32:45.559you know. That's what we gotto worry about. Yeah, and42200:32:45.559 --> 00:32:50.000we have a lot of earnings reportsthat came out this week, you know.42300:32:50.240 --> 00:32:52.000But further get into that, let'stalk a little bit about super micro42400:32:52.039 --> 00:32:55.319computer. I think this is agreat example of what stocks can do.42500:32:55.759 --> 00:33:00.079How you should be trimming these typeof crazy stocks that really run. How42600:33:00.119 --> 00:33:05.000to really I mean, talk alittle bit about your experience with super microcomputer42700:33:05.119 --> 00:33:09.359and kind of the story behind it. That's the story. We bought it.42800:33:09.599 --> 00:33:13.759I bought it two weeks ago justto trade it with this is not42900:33:13.839 --> 00:33:16.039a type of stock we buy forclients. No, okay, at five43000:33:16.119 --> 00:33:20.920hundred and thirty five dollars. Twoweeks later, I sold it at nine43100:33:21.039 --> 00:33:24.319hundred and thirty nine hundred and eightyseven dollars. The very next day,43200:33:24.359 --> 00:33:29.440I went to one thousand and seventyseven in the morning and then ended up43300:33:29.480 --> 00:33:34.839the day at eight oh three.Okay. So if you are trading,43400:33:35.039 --> 00:33:38.279that's one thing. If you're investing, it's another if you're putting too much43500:33:38.359 --> 00:33:40.319money. To dude, like,oh yeah, if I bought it at43600:33:40.519 --> 00:33:43.720six hundred, I got out aneight hundred, and I bought a thousand43700:33:43.720 --> 00:33:45.920shares, I made two hundred grand. Well, first of all, that's43800:33:45.960 --> 00:33:51.119six hundred thousand dollars you're putting up, okay to do that, And it's43900:33:51.160 --> 00:33:55.359a very volatile stock, which ninetynine percent the portfolios do not have the44000:33:55.440 --> 00:33:59.519risk tolerance for that, right,yeah, I mean, And last week44100:33:59.519 --> 00:34:01.359alone, at one point it isup forty two percent. With that onenty44200:34:01.480 --> 00:34:05.920seventy seven. It started the weekat seven sixty one and then on Friday44300:34:06.079 --> 00:34:08.840drop twenty percent. Another way toyou know, to hedge around these type44400:34:08.840 --> 00:34:13.440of huge positions that have gone upespecially in taxable accounts where it matters.44500:34:13.840 --> 00:34:17.400You can use inverse funds to helphedge some of yours without actually realizing that44600:34:17.480 --> 00:34:21.239gain something like that. That's notan inverse fund. No, no,44700:34:21.239 --> 00:34:22.719no, I'm just saying. I'msaying, to protect a position that you44800:34:22.800 --> 00:34:27.400have that's run up a lot withoutnecessarily selling it, you could have something44900:34:27.480 --> 00:34:30.360like that in a protection setting.It's not going to be one for one45000:34:30.440 --> 00:34:32.559on that particular stock. If you'rebuying that and it's doing that, you45100:34:32.679 --> 00:34:37.320better not worry about paying taxes becauseotherwise, don't be in that type of45200:34:37.360 --> 00:34:39.159stock. You make that type ofmoney, you take it off, you45300:34:39.199 --> 00:34:42.079trim it, you do it,and then if it pulls back, you45400:34:42.119 --> 00:34:45.519can buy it again. All right, And that's exactly how you look at45500:34:45.519 --> 00:34:49.480it. But that's a whole differentballgame than how you how you invest for45600:34:49.559 --> 00:34:52.960the future. Right. Yeah,that's short term trading. That's not investing45700:34:52.960 --> 00:34:55.440for your retirement. It was aninvestment that turned into a short term trade.45800:34:55.519 --> 00:34:59.480Because anything that goes up four hundredand fifty points in two weeks,45900:34:59.519 --> 00:35:01.840I'm taking. Yeah, you wouldhave to. If you don't, then46000:35:02.159 --> 00:35:05.880you're waiting for it to come backdown. All right, Well, we're46100:35:05.880 --> 00:35:07.239coming up on a break when wecome back on this next ed, and46200:35:07.239 --> 00:35:10.880we've got a lot of earning reportsto run through, and finally we get46300:35:12.000 --> 00:35:14.199that's the end of the earning seasonfor the most part, and being in46400:35:14.239 --> 00:35:16.119a video next week. So that'sa big one that's gonna once not happened.46500:35:16.159 --> 00:35:20.199Everyone's gonna look around and go,Okay, what do we do now?46600:35:20.239 --> 00:35:22.519Where's the money gonna come from?And where are we gonna do it?46700:35:22.800 --> 00:35:25.480And I'm telling you, smart money, it's not gonna keep propelling this46800:35:25.639 --> 00:35:30.840higher because nobody wants to be thatguy that board that stock at the all46900:35:30.920 --> 00:35:36.039time high and watching it come down. So Trim, Trim, Trim.47000:35:36.159 --> 00:35:39.000We'll be right back. I can'ttell you how much we appreciate you're listening47100:35:39.199 --> 00:35:45.559to The Money Matter Show. Welcomeback, everybody, This is the Money47200:35:45.559 --> 00:35:49.559Matter Show. Let's switch it upa little bit. We're gonna have Jonathan,47300:35:49.639 --> 00:35:52.440our state planner, on first uhusually on the second hour, so47400:35:52.480 --> 00:35:57.840maybe some of you don't know he'spart of our team. He obviously brings47500:35:57.840 --> 00:36:00.159a lot to the table with us, and every other week or so we47600:36:00.199 --> 00:36:04.800have them on here to talk aboutwhat's going on, because I'm telling you,47700:36:05.239 --> 00:36:08.880we don't get this. If thetax cuts, those Trump cut they47800:36:08.960 --> 00:36:14.280leave, you're gonna be a busyman. That's right. Big sunset provision47900:36:14.280 --> 00:36:16.199in a year and a half.Wow, a year and nine months,48000:36:17.559 --> 00:36:21.559and you know things are gonna becrazy on your state planning side. I48100:36:21.559 --> 00:36:23.800don't think it'll go all the waydown. The ones I worry about as48200:36:23.800 --> 00:36:30.280a business owner is the one thededuction that might might be gone, which48300:36:30.320 --> 00:36:34.880is which is so basically, ifyou're self employed, you get a twenty48400:36:34.880 --> 00:36:38.440percent haircut right off the net income. And that's that's nice for business owners48500:36:38.480 --> 00:36:42.519because if you make a one hundredthousand dollars a year, it's an automatic48600:36:43.000 --> 00:36:49.400twenty thousand dollars haircut on your netincome. So hopefully Congress acts. I48700:36:49.480 --> 00:36:52.400expect they do, depending on whichadministration. If Trump is in there,48800:36:52.480 --> 00:36:55.119of course they're going to act.If not, you know that. I48900:36:55.159 --> 00:36:59.519don't think the Democrats are going towant to be holding the bag of increased49000:36:59.559 --> 00:37:01.960taxes. Okay, so you sayneither way it's going to happen. I49100:37:01.960 --> 00:37:05.920think it'll happen. Well, thetape, we can't go back and listen.49200:37:06.000 --> 00:37:07.719I was gonna say, I'm like, who would hold the bag?49300:37:07.960 --> 00:37:14.159I mean in the past when theyhave increased taxes, Well, they don't49400:37:14.239 --> 00:37:19.960increase taxes necessarily flat. They've neverincreased taxes, yeah back in nineteen twenty49500:37:20.039 --> 00:37:22.760something, but they haven't had aflat across the board increased to get blasted49600:37:22.800 --> 00:37:27.400for that one. Yeah, you'resaying since nineteen twenty taxes, I haven't49700:37:27.400 --> 00:37:31.039said. So the way we havemodified our tax over the past what fifty49800:37:31.119 --> 00:37:36.400years, we've only had to bemore progressive, meaning less flat tax We'll49900:37:36.519 --> 00:37:38.480people, We'll give you that one. Well, there was the nineteen eighty50000:37:38.519 --> 00:37:44.920six nineteen eighty six tax reform,which basically changed the entire tax code,50100:37:44.920 --> 00:37:49.159which made it so difficult for UStax guys to deal with actual taxes.50200:37:49.480 --> 00:37:52.159And then there was a Trump taxcuts. Those are the two big tax50300:37:52.199 --> 00:37:54.079reformations. Of course, there's littleyou know. They're going to increase taxes50400:37:54.079 --> 00:37:57.559here, they're going to crease taxesthere. But the major reformations were in50500:37:57.599 --> 00:38:01.599twenty seventeen and nineteen eighty six.Loophole would you change clothes right now?50600:38:02.519 --> 00:38:08.599To bring in more taxes? Oh? What was it called? The carried50700:38:08.639 --> 00:38:12.760interest? There you go explain topeople what that is. Well, it50800:38:12.840 --> 00:38:15.280is actually kind of hard to explain. That's why it never goes away.50900:38:15.480 --> 00:38:21.320So you you know, long storyshort, you know these hedge funds,51000:38:21.400 --> 00:38:23.639these guys that are making all thismoney, these billions and billions of dollars,51100:38:23.679 --> 00:38:28.480they're paying twenty percent on their income, whereas you and I would be51200:38:28.480 --> 00:38:31.239paying. And that's because by itgoes into they don't get paid a salary.51300:38:31.360 --> 00:38:35.719W Two, it goes and buyshares and then they sell their shares51400:38:35.760 --> 00:38:40.159off that are long term gains exactly. It's all their work is considered capital51500:38:40.159 --> 00:38:45.199gains, whereas and it's their dayto day job, just like we have.51600:38:45.320 --> 00:38:47.760They should be paying top percentage,just like everybody else, you know.51700:38:49.079 --> 00:38:51.719And so that's one of the bigones. Trump promoted that back in51800:38:51.719 --> 00:38:55.280twenty seventeen. Who's the Christen cinema? She wanted to get rid of it,51900:38:55.320 --> 00:38:59.320and then for some reason she didn'twant to get rid of was she's52000:38:59.320 --> 00:39:00.679the one that says keep it.Well, she's the one that said keep52100:39:00.719 --> 00:39:04.960it exactly and then now what wewe And I asked to that when she52200:39:05.039 --> 00:39:07.880was in Tucson, and I satand I asked that question and she said52300:39:07.880 --> 00:39:10.840to me, well, there wasso much behind it, we needed to52400:39:10.880 --> 00:39:16.480support it to help businesses. Youknow what, that's just a political garbage.52500:39:16.920 --> 00:39:20.639You did it because people that weregiving you money, who I knew52600:39:20.639 --> 00:39:22.280were giving you money, did notwant you to do that, right.52700:39:22.639 --> 00:39:25.920I mean, I heard you lastweek. You know you were saying you52800:39:25.920 --> 00:39:30.559want everybody to pay their fair share. That's not fair share every you know,52900:39:30.679 --> 00:39:32.480No, I said, if you'regoing to say pay your fair share,53000:39:32.519 --> 00:39:36.119let's make it your fair share.And don't keep telling me. I53100:39:36.119 --> 00:39:39.079got to pay so much more percentagewise than you and dollar wise more than53200:39:39.119 --> 00:39:43.920you exactly. And so that's whatcarried interest is. It's not fair share.53300:39:44.239 --> 00:39:46.320And that's what that is. Andyou know what affects only a handful53400:39:46.320 --> 00:39:49.559of people. Would you go toa flat tax? Would I go to53500:39:49.559 --> 00:39:54.039a flat tax? No? Whyother than the fact the accounting would have53600:39:54.079 --> 00:39:58.280to change the way they do businessvery first day of a tax. In53700:39:58.800 --> 00:40:00.920college, you learn about the wherewith all the pay right. I believe53800:40:00.920 --> 00:40:05.159if you make ten thousand dollars andyou tax them at twenty five percent,53900:40:05.199 --> 00:40:07.039they got seventy five hundred dollars leftover. I don't believe in that.54000:40:07.559 --> 00:40:10.559Okay, no, no, no, no, no, no. First54100:40:10.599 --> 00:40:15.199of all, wouldn't be twenty fivepercent? Okay, you can do ten54200:40:15.559 --> 00:40:19.480twelve, and then if you wanttoo a certain amount, you can rebate54300:40:19.519 --> 00:40:22.559it to them, right, okay, But the flat tax, everybody pays54400:40:22.559 --> 00:40:28.000the same thing. Yes, butthere could be a level under fifty grand54500:40:28.239 --> 00:40:30.480that you get that we baited acertain percentage, because if you only make54600:40:30.519 --> 00:40:34.000it twelve grand, you ain't payingtaxes. There are so many schools of54700:40:34.000 --> 00:40:37.320thought on taxation. Flat tax makesit easy. I just believe that.54800:40:37.480 --> 00:40:42.119You know, obviously I don't.You know, I'm not four taxes,54900:40:42.159 --> 00:40:45.519but I see the benefits. Ilook outside paved roads, you know,55000:40:45.760 --> 00:40:49.719infrastructure taxes pays that in a house. Would we get that money? Yeah,55100:40:49.760 --> 00:40:53.480but that doesn't come from a federaltax. Okay, they might give55200:40:53.559 --> 00:40:57.599us some back money as a stateand stuff that most of the roads and55300:40:57.639 --> 00:41:00.119stuff come from a state tax.We fund the you know, how do55400:41:00.119 --> 00:41:05.440we pay veterans? How do wepay the military? I'm okay with a55500:41:05.679 --> 00:41:10.320with a sales tax that is higher, okay, a usage tax. You55600:41:10.320 --> 00:41:14.159know, you want to buy somethingthat's one hundred grand, you pay more55700:41:14.159 --> 00:41:16.039than somebody that can afford that,that's fine. Well to me, the55800:41:16.119 --> 00:41:20.440only reason we're talking about tax isbecause of how many benefits we give out.55900:41:20.519 --> 00:41:22.760You don't give out as much benefits. You don't need as much tax.56000:41:22.800 --> 00:41:23.760I know, I look at theI look at the benefits side.56100:41:23.800 --> 00:41:27.440So my both my brother's a military, my dad's military. But I hope56200:41:27.440 --> 00:41:30.559that family's military. They get paidthrough my paycheck. What they should do56300:41:31.039 --> 00:41:34.440is every time somebody gets a Wtwo. Now, what they do in56400:41:34.440 --> 00:41:37.599some European countries is you know howwhen you get your W two it says56500:41:37.639 --> 00:41:43.079federal income ten thousand dollars of federalwithholding ten thousand, Social Security ten thousand,56600:41:43.159 --> 00:41:47.920Medicare ten thousand whatever in Europe.In some places in Europe they break56700:41:47.920 --> 00:41:51.960it out on their W two whereeverything goes. So if you saw ten56800:41:52.000 --> 00:41:57.199percent goes to who knows, somesort of program that you you don't agree56900:41:57.239 --> 00:42:00.719with, at least there's some transparencythere could see where your money. Do57000:42:00.760 --> 00:42:04.599you want to talk about programs youget? You get Social Security, if57100:42:04.599 --> 00:42:07.480you're working, you get Social Security, okay, and you at your fully57200:42:07.519 --> 00:42:12.599time and age, you're still gettinga paycheck and they're taking out Social Security,57300:42:13.239 --> 00:42:15.360right, and you get a SocialSecurity check that you get, you57400:42:15.440 --> 00:42:21.519get taxed on. That's fair.I'm paying my own Social Security check and57500:42:21.559 --> 00:42:23.199I'm paying the check and I'm gettingpaid fides. You know where that started.57600:42:23.840 --> 00:42:27.639We're just talking a couple of minutesago, nineteen eighty six per format57700:42:27.639 --> 00:42:30.559that would pay a tax on SocialSecurity. But during the nineteen nineteen eighty57800:42:30.599 --> 00:42:34.400six per form they started a taxingSocial Security. You know, to your57900:42:34.440 --> 00:42:36.599point, John, we had aclient in here talking about how they knew58000:42:36.679 --> 00:42:39.119someone in Denmark who paid like somethingcrazy like fifty five percent in taxes.58100:42:39.440 --> 00:42:43.719But they don't have any problem.They love paying their taxes because they actually58200:42:43.719 --> 00:42:46.280believe in their politicians. They knowwhere that money's going because they have the58300:42:46.280 --> 00:42:51.639transparency of the programs that are beingfunded through their tax paying dollars, so58400:42:51.800 --> 00:42:54.679benefits you know. Well, that'swhat I'm saying is when you have transparency,58500:42:54.679 --> 00:42:58.800when you agree with where your taxpaying dollars are going, you're a58600:42:58.840 --> 00:43:00.960little more inclined to act. Wepay. Then when you don't agree with58700:43:01.000 --> 00:43:04.599where the money's going in the firstplace, that's when people have a real58800:43:05.039 --> 00:43:07.880challenge to tax. It's all it'sall about transparency. Where's my money going?58900:43:07.920 --> 00:43:10.559And I think that's what the biggestissue with taxation is nobody knows where59000:43:10.559 --> 00:43:14.840their money's really going. Right,Listen, just where twenty twenty twenty four59100:43:14.960 --> 00:43:17.599we're in, right? Yeah?What are people for state taxing benefits?59200:43:17.639 --> 00:43:20.880Is there anything that they really needto look at it? There's been any59300:43:20.960 --> 00:43:24.639changes in it on the estate side, you know, other than the inflation59400:43:24.719 --> 00:43:29.719adjustment you know right now where youknow, I want people to be prepared59500:43:29.719 --> 00:43:31.719because I said I think they're goingto act, but that's just me speculating.59600:43:32.079 --> 00:43:34.880So well, we'll get into tooalve. If they act, we'll59700:43:34.880 --> 00:43:37.039be able to talk about strategies onhow to protect people. And if they59800:43:37.079 --> 00:43:42.039don't act, you know that whatis it now? Forty almost fourteen million59900:43:42.039 --> 00:43:46.440dollars? Now it'll be down topossibly five, possibly three, who knows,60000:43:46.599 --> 00:43:50.159you know whatever that's not it's butit's supposed to be a lot less.60100:43:50.320 --> 00:43:52.880And five million dollars is a bigdeal because after anything over five million60200:43:52.920 --> 00:43:57.800dollars is a forty percent of statetax. So to help compensate that,60300:43:57.920 --> 00:44:01.719would you think maybe starting insurance policiesnow are a good idea? Or do60400:44:01.760 --> 00:44:07.039you wait until that actual laws changed. Well, if you're well, if60500:44:07.199 --> 00:44:09.639you know I don't, there's there'sa different trust that you can set up.60600:44:09.679 --> 00:44:15.079But you know, one way tolock in to fourteen million dollars is60700:44:15.079 --> 00:44:19.840to place into an irrevocable trust.Some call them slats, spousal lifetime access60800:44:19.840 --> 00:44:22.679trust. But the thing is isthat you know, if you only have60900:44:22.719 --> 00:44:24.800twenty million dollars, you know,I don't recommend setting up one of those61000:44:24.840 --> 00:44:29.480trusts because you're going to need accessto that. It's limited access trust,61100:44:29.559 --> 00:44:32.800right, And you know, Ithink the starting points about fifty million dollars,61200:44:32.800 --> 00:44:36.679So you know, we don't care. But if you're if you're up61300:44:36.719 --> 00:44:38.039there in age and you want tolock in that number, and you're hoving61400:44:38.079 --> 00:44:42.480around ten twelve million dollars, maybeyou could take advantage, throw some in61500:44:42.519 --> 00:44:45.559there, maybe ten million, andlive on the other two and then you61600:44:45.599 --> 00:44:49.480could lock in that twelve to fourteenmillion dollars. So if you do pass,61700:44:50.440 --> 00:44:52.039you won't be subject to the statetax if it does go down in61800:44:52.079 --> 00:44:54.480twenty twenty six. I could justhear, like a lot of the people61900:44:54.519 --> 00:44:59.800listening right now, I wish Ihad that problem twenty million. I wish62000:44:59.800 --> 00:45:01.639I had fourteen million, then I'llworry about it. And that's the thing62100:45:01.719 --> 00:45:05.800is that you know, ninety ninepercent of my clients don't have that issue,62200:45:05.880 --> 00:45:07.239right, you know, and there'syou. And then we have issues62300:45:07.239 --> 00:45:12.639where people over prepare, over youknow, do too much to state planning.62400:45:13.079 --> 00:45:15.800You know, we had that oneclient come in. They did way62500:45:15.840 --> 00:45:17.320too much. I had two milliondollars. And I'm not saying that's nothing,62600:45:20.239 --> 00:45:23.360but you know, for all theseseparate trusts that they're setting up with62700:45:23.480 --> 00:45:25.920just two million dollars, you know, the only people that are getting paid62800:45:25.920 --> 00:45:29.480at the attorneys, right, itdoesn't really equal the tax savings on the62900:45:29.480 --> 00:45:32.280other side. You just need abasic basic estate plan, right. I63000:45:32.360 --> 00:45:35.920mean you can look at a buildinga Christmas tree, but you don't need63100:45:35.960 --> 00:45:37.079two of them, right, right. And you know, you guys,63200:45:37.199 --> 00:45:42.119apparently we're all taking trips up toNorth you know, Sholo, and you63300:45:42.159 --> 00:45:45.599know that's where one of those housesare located and stuck in an irrevocable trust.63400:45:46.400 --> 00:45:50.840Right, and now they're having accent. They're having trouble getting that out63500:45:50.840 --> 00:45:53.519of an irrevocable trust. That's overplanning, okay, because they weren't subject63600:45:53.559 --> 00:45:57.920to the estate tax. Well,as we go up on taxis and business63700:45:57.920 --> 00:46:00.880owners are looking at their income rightnow and they're saying, how do I63800:46:01.039 --> 00:46:05.960limit next year's income? One ofthe ways is if they're not already escorp,63900:46:06.159 --> 00:46:07.239switch into an escorp. If youdon't have a four to one K64000:46:07.320 --> 00:46:10.039plan, start a four one Kplan. What are some of the things64100:46:10.239 --> 00:46:15.800business owners should be looking at orthinking about retirements? You know, setting64200:46:15.880 --> 00:46:17.440up exactly if you're a business owner, if I mean if you're part of64300:46:17.440 --> 00:46:22.639a partnership, you know, setup set up some retirements where you can64400:46:22.679 --> 00:46:24.480bring that down. You know,we have a client right now. We're64500:46:24.519 --> 00:46:30.800going to start talking about setting upspecial retirement plans where they can significantly reduce64600:46:30.840 --> 00:46:37.480their net income for the year anddefer it to retirement so when they're making64700:46:37.599 --> 00:46:39.880less. You know, we're talkingabout the top tax rate, so when64800:46:39.880 --> 00:46:43.840they're making less, they can startpulling that money out. All right,64900:46:43.840 --> 00:46:45.119listen, we're gonna have to wrapit up. Thanks a lot, Jonathan.65000:46:45.199 --> 00:46:46.880You want to get in touch youknow, way to get them right65100:46:46.880 --> 00:46:50.760here with the green Brook Financial Group. We'll put you in touch with him.65200:46:50.840 --> 00:46:52.280He can help you on the stateplanning way to go, what to65300:46:52.360 --> 00:46:57.360do and make sure I try it. He'll also be part of April second,65400:46:57.880 --> 00:47:00.920green Brook Financial Group some posium.We're going to be planning, mitigating65500:47:01.119 --> 00:47:05.039and doing everything just the way youneed it. We'll be right back.65600:47:05.760 --> 00:47:09.400It is the Money Many Show.Oh, welcome back everybody to the second65700:47:09.400 --> 00:47:15.440hour of the Money Matter Show.Talk about April second. Yeah, April65800:47:15.440 --> 00:47:17.519second. We've got a really funsymposium we're going to put on at La65900:47:17.519 --> 00:47:21.400Paloma. It's going to be reallya big event that's going to go over66000:47:21.599 --> 00:47:24.840tax mitigation, a state planning mitigation, as well as how to look at66100:47:24.880 --> 00:47:29.800your portfolio risk mitigation as we arehinering into these all time high markets.66200:47:29.920 --> 00:47:31.840So we're going to have Johnson andJohnson Accounting Group there, We're going to66300:47:31.880 --> 00:47:37.079have Jonathan Sabilia from Edward Law Firmthere. We're going to have ourselves talking66400:47:37.119 --> 00:47:40.719about financial planning. And also we'llhave the host of the knst Am Talk66500:47:40.760 --> 00:47:45.840show, J. T. Harristhere to talk about the political environment as66600:47:45.880 --> 00:47:50.039we round into November and the bigelection. In fact, one of the66700:47:50.039 --> 00:47:52.760craziest things about this year's election,not just for America but for the world.66800:47:53.360 --> 00:47:58.280This year is the most democratic electionsin any year in the history of66900:47:58.280 --> 00:48:00.599the world. So there's gonna bea lot of changes that happened this year,67000:48:00.639 --> 00:48:04.360and so coming to this event willnot only give you insights on that67100:48:04.400 --> 00:48:07.920front, but also insights onto yourown financial plan and how to mitigate the67200:48:08.000 --> 00:48:12.599risk that could be on the horizon. Yep. And that's going to be67300:48:12.639 --> 00:48:15.800a La poloma from twelve to threeon April second. So if you want67400:48:15.800 --> 00:48:17.760more information, you can give usa call five to zero five for four67500:48:17.880 --> 00:48:22.119four to nine zero nine. Thisweek, the Dow was down point one67600:48:22.199 --> 00:48:24.840percent, the S and P fivehundred was down point four the Nasdaq down67700:48:24.880 --> 00:48:29.159one point three. Russell two thousandled the way up at one point one67800:48:29.199 --> 00:48:32.840percent higher, and the equal weightedwas up ero point seven percent. The67900:48:32.880 --> 00:48:37.679real news this week was at CPIand PPI and the lower retail sales.68000:48:37.719 --> 00:48:40.039But all in all we had alot of earning supports, so let's dive68100:48:40.079 --> 00:48:44.079into them. The first one wasRivian Automotive. On Monday, the stock68200:48:44.159 --> 00:48:49.159sank three point five percent following adowngrade from Barclays to equal from overweight.68300:48:49.239 --> 00:48:52.559Let's talk about ev since Dave isn'there real quick, you know, at68400:48:52.599 --> 00:48:55.920the end of the day. Heloves talking about those evs. It is68500:48:55.960 --> 00:49:00.679wild how much. But he isgoing to not be going to California this68600:49:00.760 --> 00:49:02.639week, so I guess we won'tknow how many EV cars are coming.68700:49:02.840 --> 00:49:09.079But at the we continuously talk aboutthe fact that until EV's actually changed the68800:49:09.119 --> 00:49:15.559fact that their inputs are from carbonemitting inputs, it doesn't really change any68900:49:15.840 --> 00:49:20.119chance or earnings were profitable, right, No, they're not profitable. We69000:49:20.159 --> 00:49:22.920had Cocola shares were a little changeafter the beverage giant post mixed results for69100:49:22.960 --> 00:49:28.360the fourth quarter. Company posted adjustedearnings forty nine cents per share. Revenue69200:49:28.360 --> 00:49:30.960came in at ten point eight billion. It makes sense the coc Cola should69300:49:31.000 --> 00:49:37.440be doing all right right here,doesn't just a good company. We had69400:49:37.440 --> 00:49:40.840Shopify shares down more than twelve percent, even after the e commerce company posted69500:49:40.880 --> 00:49:45.960a fourth quarter beat on top andbottom lines. Shopifa is that company that69600:49:45.159 --> 00:49:51.280is kind of like an Amazon ofsorts for small businesses. We've heard some69700:49:51.320 --> 00:49:55.119crazy stories about people who use Shopify, who use Amazon drop shipping to as69800:49:55.119 --> 00:49:59.719they're essentially their only jobs, anda lot of people making a lot of69900:49:59.719 --> 00:50:01.599money. You and I Todd raninto a story of some high school kid70000:50:02.199 --> 00:50:06.960up in scott Still he's making whatI think he cleared like ninety thousand dollars70100:50:07.000 --> 00:50:09.199in sales just drop shipping doesn't evenhave to pick up a finger pick a70200:50:09.239 --> 00:50:13.159finger up. Yeah, And sofor people who don't know what drop shipping70300:50:13.280 --> 00:50:16.280is, it's like a imagine youcreate these you know, these shirts that70400:50:16.320 --> 00:50:21.920you don't actually manufacture. You're justtelling a manufacturer how to make you you're70500:50:21.960 --> 00:50:24.400producing it safe in India for youknow, two dollars a shirt, but70600:50:24.440 --> 00:50:29.639you're selling him in America for tendollars a shirt that the manufacturer sends it70700:50:29.639 --> 00:50:30.880directly to the person. You're notinvolved. You're just kind of like the70800:50:30.880 --> 00:50:35.639broker. And the only thing thathe really worked on was probably the design,70900:50:36.039 --> 00:50:38.800right, you know, marketing thatthrough TikTok and whatnot. But the71000:50:38.840 --> 00:50:45.639kid's smart, Go go go him. Zoom Info Technologies the market intelligence stock71100:50:45.760 --> 00:50:50.320skyrocket at fifteen percent on strong earningsand the slightly better than expected first corner71200:50:50.480 --> 00:50:54.079earnings per share outlook. As zoominfo reported earnings of twenty six cents per71300:50:54.119 --> 00:50:57.760share. Talk a little bit aboutthe sports betting world. You got pen71400:50:57.920 --> 00:51:00.960Entertainment. They plunge fourteen percent off. Their company, which owns ESPN Bets71500:51:01.000 --> 00:51:06.920sports gambling platform, fell short ofanalyst quarterly earnings forecast. The big well71600:51:06.960 --> 00:51:09.199not winner, I should say,but Draft Kings they did decent right.71700:51:09.320 --> 00:51:15.599They held in there after reporting anightsense drop, i mean loss on their71800:51:15.599 --> 00:51:17.840earnings. They were supposed to bereporting profitabilities for the first time its history.71900:51:17.920 --> 00:51:22.199That's really the thing to keep inmind with DraftKings and even Fandel Fandal72000:51:22.360 --> 00:51:28.119just became profitable two quarters ago.It's now on the New York Stock Exchange72100:51:28.159 --> 00:51:30.639as as of a couple of weeksago. It's a flutter is their parent72200:51:30.679 --> 00:51:36.559company, and that's FanDuel's parent company, and they've been trading in Europe,72300:51:36.559 --> 00:51:39.599but they just came on to theNew York Stock Exchange. And it's gonna72400:51:39.599 --> 00:51:45.320give a lot of competition to DraftKingsbecause they're pretty much they're the closest and72500:51:45.840 --> 00:51:47.719similarity to what they're doing. BecauseI mean, you got MGMs, Caesars,72600:51:47.840 --> 00:51:52.760got Win, but they all dealwith hotels and just breaking mortar casinos72700:51:52.800 --> 00:51:58.360as well. DraftKings and Flutter wellFANDU are really the only online seems exclusive72800:51:58.639 --> 00:52:01.960Besides they have they have the sportsbooks up in Phoenix and a couple others,72900:52:01.960 --> 00:52:05.440but mainly they're on their phone.They're on the app and that's where73000:52:05.440 --> 00:52:07.760they make their money. So they'rethe biggest competitors. And FanDuel is the73100:52:07.840 --> 00:52:13.760largest online sports gambling ones, sothen them coming public in the US really73200:52:13.760 --> 00:52:17.639does give a lot of competition todraft games. It's surprising to see ESPN73300:52:17.679 --> 00:52:21.599being the big lagger here. Youknow, it's pretty new. Yeah,73400:52:21.639 --> 00:52:25.599in a sense. I mean thatwas so ESPN BET was Barstools sports gambling73500:52:27.079 --> 00:52:30.239and then they sold the penn NationalGaming bought it back and then partner with73600:52:30.440 --> 00:52:34.880ESPN. It just never has beenthe most I mean, hard Rock Bet73700:52:35.000 --> 00:52:37.559just came out with it too,hard rock hard rock. Yeah, those73800:52:37.599 --> 00:52:40.039casinos just came out with one.They're all trying to get. It's getting73900:52:40.039 --> 00:52:45.599diluted, but they're all still.ESPN BET and DraftKings and panduel are the74000:52:45.679 --> 00:52:51.719really the three major ones ones thatare online only. Yeah. The thing74100:52:51.719 --> 00:52:54.559they remember about DraftKings and Fanduels.They're spending so much money on marketing because74200:52:54.559 --> 00:52:58.400they're trying to get all these people. But as we saw in reports about74300:52:58.400 --> 00:53:00.719the Super Bowl, there has beenall time. I'm betting on super Bowl.74400:53:00.960 --> 00:53:05.480That's not because the casinos, right, that's not because people are you74500:53:05.519 --> 00:53:07.119know, headed to Vegas because thesuper Bowl is there. This year share74600:53:07.119 --> 00:53:09.320that probably had a little bit ofincrease to it. But at the end74700:53:09.320 --> 00:53:15.000of the day, of these increasein betting is directly due to mobile gambling.74800:53:15.079 --> 00:53:19.000And I mean it's also every yearthere's more states legalizing gambling, So74900:53:19.039 --> 00:53:22.840that's just going to be continuously getmore revenues. And that's why these investors75000:53:22.880 --> 00:53:25.719are hypothecating the growth. And thoughthey're not profitable. DraftKings has never been75100:53:25.760 --> 00:53:30.599profitable, continues to not be profitable, but the potential of what's going to75200:53:30.639 --> 00:53:34.559be in there in that are legalright now, so you still have to75300:53:34.559 --> 00:53:37.639go. Speaking of the super Bowl, do you think that super Bowl ticket75400:53:37.679 --> 00:53:42.559prices are accounted for in CPI numbers? So those things went through the roof.75500:53:42.880 --> 00:53:46.119Yeah, but it's just their averages. But let's talk a little bit75600:53:46.119 --> 00:53:52.480about mobile game mobile ride share stocks, Lift and Uber lift shares surged twenty75700:53:52.480 --> 00:53:57.360one percent and actually finished the weekup thirty seven percent. This week,75800:53:58.559 --> 00:54:02.519the right Haling Company posted stronger thanexpected fourth quarter results and issued better than75900:54:02.559 --> 00:54:07.519expected guidance. In the most recentquarter, Lift posted adjusted earnings of eighteen76000:54:07.559 --> 00:54:10.440cents per Sure they would have beenjust not doing well and compared relative to76100:54:10.559 --> 00:54:15.280Uber. But obviously this week reallyin surprise investors, they totally messed up76200:54:15.280 --> 00:54:19.519on the earning. They had ayeah, they had a spoof. They76300:54:19.599 --> 00:54:23.079served forty percent right after earnings becausethey reported that they just destroyed it,76400:54:23.159 --> 00:54:25.719right, They're like out of zeroor something. Yeah, yeah, exactly76500:54:25.719 --> 00:54:29.199out of the zero. And thenabout an hour later the CFO came out76600:54:29.239 --> 00:54:30.280and said that was a mistake,so they dropped back down to normal.76700:54:30.320 --> 00:54:32.599And then they ended up going youwant the short cellars that you're stuck,76800:54:32.760 --> 00:54:36.400just do that perfect exact And that'swhat we were talking about. It.76900:54:36.480 --> 00:54:38.079If they got stopped out of that, there's a there's a suit on that.77000:54:39.079 --> 00:54:42.480Yeah. But they I mean,like I said, thirty seven percent77100:54:42.519 --> 00:54:45.519in one week, a really bigincrease for lyft. Uber was up ten77200:54:45.559 --> 00:54:50.400percent this week. They did also, I believe, report earnings and they77300:54:50.519 --> 00:54:52.599beat expectations as well. It's notride haling, but it's in the same77400:54:53.360 --> 00:54:57.719category sort of. Door Dass droppedeight percent out they reported a larger loss77500:54:57.719 --> 00:55:00.639in the fourth quarter they lost thirtypercent to share and they were thought they77600:55:00.639 --> 00:55:05.239were gonna left only sixteen. Andyou know, another kind of in that77700:55:05.280 --> 00:55:08.840same sector is Instacart. You know, they they just kind of came online77800:55:08.920 --> 00:55:13.199public I think two quarters ago,three quarters ago. It's gonna be interesting77900:55:13.199 --> 00:55:16.000to see that whole space. Justmakes sense that trend does continue into the78000:55:16.039 --> 00:55:23.400future. Years left Uber door Dashpeople are not getting less lazy. Yeah,78100:55:23.440 --> 00:55:28.079I mean DoorDash has is doing.I mean Instacard had to lay off78200:55:28.079 --> 00:55:30.639a ton of employees because they're strugglingright now, and DoorDash is really taking78300:55:30.719 --> 00:55:35.760stronghold on that. I guess UberEast too. But grocery stores are starting78400:55:35.760 --> 00:55:37.440to do their own deliveries, right, you don't have to go through door78500:55:37.519 --> 00:55:40.000Dash, you can just call Safewayor something. Those calls door Dash and78600:55:40.079 --> 00:55:44.639Instacart. I'm pretty sure they're talkingabout how inflation is impacting their thinning the78700:55:44.679 --> 00:55:49.159margins obviously, you know, withthe Walmart increase their prices on apples or78800:55:49.159 --> 00:55:52.079whatever, that's gonna in the marginelsewhere, right, Yes, I mean78900:55:52.119 --> 00:55:55.320the same idea as Airbnb. Theirmargins are dropping because and then they have79000:55:55.360 --> 00:55:59.320to put it into the cleaning feedswhere they're getting their money from. Yeah,79100:56:00.440 --> 00:56:02.440well let's talk about Ambaba since Deillnesjust brought it up. The vacation79200:56:02.519 --> 00:56:07.119property rentals stock slump four percent evenafter posting stronger than expected revenue and optimics79300:56:07.239 --> 00:56:12.599optimistic guidance. However, the stockdid finished the week up at three percent79400:56:12.599 --> 00:56:17.079on the week. We're not usingairb actually virbo this week, sholo,79500:56:17.199 --> 00:56:22.840But Airbnb has come back a lotfrom kind of that that Midsummer last year's79600:56:22.840 --> 00:56:27.679slump that they experienced. Walmart interestingtimes ahead for it. They report on79700:56:27.719 --> 00:56:30.960Tuesday on the twenty sixth, orreport on Tuesday, and then on the79800:56:30.960 --> 00:56:32.519twenty sixth they're set to do athree for one stock split. Is this79900:56:32.559 --> 00:56:37.400gonna make the stock price a littlebit more attractive to investors, we'll see.80000:56:37.760 --> 00:56:42.000Not to mention, Walmart is alsoin talks to buy TV maker Visio80100:56:42.039 --> 00:56:45.960for over two billion dollars. Ifthis goes through, Walmart can potentially control80200:56:45.000 --> 00:56:49.280twenty two percent of the US TVmarket. I think that we saw this80300:56:49.400 --> 00:56:54.559play into Roku's earnings a little bitbecause they reported on Friday. Shares plunged80400:56:54.599 --> 00:56:59.280more than fifteen percent, and mostlydue to guidance. As media media pointed80500:56:59.320 --> 00:57:04.679out, Roku is growing competition intheir advertising arena. So to that point,80600:57:04.800 --> 00:57:07.960if Walmart buys Visio, okay,the news is negative for Roku because80700:57:08.000 --> 00:57:14.280it sells TV, their TVs andstreaming devices through Walmart, which Roku has80800:57:14.280 --> 00:57:19.199an exclusive deal had an exclusive dealwith Walmart to sell products fulfilled by Walmart's80900:57:19.239 --> 00:57:22.880on Roku devices. If Roku orif Walmart buys Visio, you would imagine81000:57:22.880 --> 00:57:27.119that they were going to take thatcontract and put it you know, obviously81100:57:28.000 --> 00:57:30.639use Viseos instead of Roku. Yeah, exactly. Think that's going to hurt81200:57:30.679 --> 00:57:34.880Roke a little bit and shares shareprice saw that on Friday. Yeah,81300:57:34.920 --> 00:57:37.880and they also had a wider lossand expected. I mean, so earnings81400:57:37.199 --> 00:57:39.760are coming out mixed. You know, there's a lot of tech that are81500:57:40.039 --> 00:57:45.360beating it, but you're seeing earningsslow down and depends on what the company81600:57:45.400 --> 00:57:46.599is like. You can see Rokuhave a little struggle ahead to and it's81700:57:46.679 --> 00:57:51.119mainly when you see these earnings reports. A lot of what you got to81800:57:51.159 --> 00:57:53.960look at as the guidance because theycould have beat earnings for the previous quarter,81900:57:54.079 --> 00:57:57.440but what are they talking about goinginto the next rest of the year.82000:57:57.800 --> 00:58:00.199They're saying, we beat earnings.Last quarter is great quarter, but82100:58:00.280 --> 00:58:05.039now we're not seeing we're seeing aprojection of projected down quarter, projected down82200:58:05.079 --> 00:58:07.760half of the year. That's whystocks tend to drop a lot. If82300:58:07.800 --> 00:58:10.159you see why, if you're wonderingwhy they beat earnings and then they drop,82400:58:10.280 --> 00:58:14.320is because of the guidance that fromthe Ernie's calls that a lot of82500:58:14.360 --> 00:58:15.920people don't listen to, but obviouslythe analysts do. And that's really what82600:58:15.960 --> 00:58:19.840you got to pay attention to,more so than just the previous numbers,82700:58:19.840 --> 00:58:22.320because's all about the stocks are allabout the future, right projections, We'll82800:58:22.360 --> 00:58:27.360talking about a world and cook countryfilled with credit. You thinking that upstarts82900:58:27.400 --> 00:58:30.679should have had a pretty good quarter, but they The online lender saw it83000:58:30.719 --> 00:58:35.239share slide fourteen percent after it reporteda fourth quarter adjusted loss of eleven cents83100:58:35.239 --> 00:58:39.280per share. It finished the weekdown twenty three percent. They're getting absolutely83200:58:39.360 --> 00:58:45.840crushed. They're flooding money into theauto lending portion of it. And my83300:58:45.960 --> 00:58:47.280dad, he works in the carbusiness, we talked. I talked to83400:58:47.320 --> 00:58:52.719him quite a bit about Upstart andit's not even one of the lenders at83500:58:52.840 --> 00:58:57.920any of the dealerships here in Tucson. They don't look at Upstart. Yeah83600:58:58.079 --> 00:59:00.440me looking at Upstart, I thinktwenty six is a nice floor and that83700:59:00.519 --> 00:59:06.239stuck. I think you're right aboutit. And it's an interesting one because,83800:59:06.360 --> 00:59:10.400you know, anything that has thewords artificial intelligence behind it usually has83900:59:10.440 --> 00:59:14.920been getting a bid Upstart to notfor those that don't know, Upstart uses84000:59:15.840 --> 00:59:21.800rather than using Fico scores for lending, they use an artificial intelligence software.84100:59:22.480 --> 00:59:27.199MGM Grand joined the list of companieswho blamed the United Auto Workers strike for84200:59:27.239 --> 00:59:30.840a reason that they reported a weekquarter shares dip more than three percent,84300:59:30.920 --> 00:59:35.280even after the casino operator beat fourthquarter expectations on top and bottom lines because84400:59:35.440 --> 00:59:38.599MGM's China business exceeded. However,the casino business in US was hurt from84500:59:38.639 --> 00:59:43.400the impact of the workers strike inDetroit. How that makes sense, I'm84600:59:43.440 --> 00:59:47.159not sure, but apparently people don'tgo to Vegas when they're striking. Well,84700:59:47.440 --> 00:59:52.159you know, I'll talk about theauto industry, you know, for84800:59:52.320 --> 00:59:55.519it's interesting right now, you know, and they don't want to go all84900:59:55.519 --> 01:00:02.920in with the ev stuff now andthey we evaluated their entire planning that they85001:00:02.920 --> 01:00:06.440put together of where they want tobe and what they want to do,85101:00:07.119 --> 01:00:09.320and they should tell us something.Yeah, you know, we kind of85201:00:09.360 --> 01:00:13.719hit a saturated market of some ofthese evs. Even though Tesla had a85301:00:13.800 --> 01:00:17.239nice little bounce back from the midone eighties to two hundred this week,85401:00:17.280 --> 01:00:21.800it's still it's going to be alittle tough going forward, I think unless85501:00:21.800 --> 01:00:25.000they keep coming up with new ways. The big key that is we both85601:00:25.079 --> 01:00:30.960know is going to be the batteriesand the ability to longer batteries and the85701:00:30.960 --> 01:00:34.840ability to charge them quickly. Notonly that, but Tesla has the charges85801:00:34.920 --> 01:00:36.960going for them. At some pointthey're going to be the gas station.85901:00:37.079 --> 01:00:38.960You know. Yeah, at somepoint maybe if they get there. All86001:00:39.039 --> 01:00:43.239right, So, you know,all these companies we run through and it's86101:00:43.280 --> 01:00:45.159confusing for a lot of people.Half the stuff is gibberous to them.86201:00:45.159 --> 01:00:47.760What really matters at the end ofthe day is their financial plan. What86301:00:47.800 --> 01:00:52.360we do here at Greenberg Financial,what makes us different is the fact that86401:00:52.360 --> 01:00:55.119we're actually planners and the money managers. Not only that, but we put86501:00:55.199 --> 01:00:59.599into everything that's going to involve inyour financial life when it comes to taxes86601:00:59.639 --> 01:01:02.480from a date to even things suchas car insurance, even the little stuff86701:01:02.559 --> 01:01:06.280we can help you with. Sowhen you call us, not only do86801:01:06.320 --> 01:01:09.159you get that free financial plan,but you also understand what level of risk86901:01:09.199 --> 01:01:13.239you're currently at, what level ofrisk your current portfolio is at, what87001:01:13.360 --> 01:01:15.559type of changes should be made,where your income buckets are going to be87101:01:15.599 --> 01:01:20.079coming from, how to plan fortaxes in retirement, how's that going to87201:01:20.119 --> 01:01:22.960be different from when you're working.Are there any possibilities for raw conversions?87301:01:23.280 --> 01:01:28.159Do we need a plan for qualifiedcharitable distributions or not? These are so87401:01:28.239 --> 01:01:30.159many complex things that if you tryto do it by yourself, I'm sure87501:01:30.199 --> 01:01:34.880you can try, but it's notgoing to be as sophisticated or accurate as87601:01:34.880 --> 01:01:37.559it possibly could be. So again, when you give us a call,87701:01:37.880 --> 01:01:39.400you're going to get a free financialplan, You're going to get a review87801:01:39.679 --> 01:01:44.039of your risk tolerance, and areview of your current portfolio, all free87901:01:44.039 --> 01:01:45.840of costs, just because we're herefor the people and we want to make88001:01:45.880 --> 01:01:52.000sure that you're prepared for what possiblycould be on the horizon, and really88101:01:52.159 --> 01:01:54.559in what's going on right now.The biggest thing we keep seeing people every88201:01:54.559 --> 01:02:00.679single day sitting down doing their planfor them whether they do business or not88301:02:00.760 --> 01:02:04.519with us. It's not the pointwe're helping them. They're getting to the88401:02:04.519 --> 01:02:09.000point. We're making them realize wherethey sit today and if the markets go88501:02:09.119 --> 01:02:12.519down, where they'll be, Ifthe markets go up, where they'll be,88601:02:13.280 --> 01:02:17.360And we need to go ahead andmake sure that you are in that88701:02:17.440 --> 01:02:22.239position. Ask yourself, you knowwhere am I? How am I allocated?88801:02:22.480 --> 01:02:24.039Am I two risky? Not toorisky? Is it giving me your88901:02:24.079 --> 01:02:29.440income? Could it give me moreincome? How long can my portfolio subsidize89001:02:29.440 --> 01:02:32.199me if I'm not using it?Am I positioned correctly for the growth?89101:02:32.239 --> 01:02:37.239There's so much on the portfolio.But before we get there, are you89201:02:37.320 --> 01:02:42.159mitigating your taxes? Are you preparedfor the estate planning coming out? Do89301:02:42.199 --> 01:02:45.199you have enough insurance in what you'redoing? There's so much that goes into89401:02:45.199 --> 01:02:47.800it. Are you going to takesocial Security? Or did you take social89501:02:47.800 --> 01:02:52.360Security? Where it's going? Howmuch are you being taxed on it when89601:02:52.400 --> 01:02:57.000you should be taking it? Andall those other things go into one simple89701:02:57.039 --> 01:02:59.920plan. Yeah, we were doinga financial plan this last week. Of89801:03:00.119 --> 01:03:02.679the interesting things that came up wasthe fact that she was a federal employee89901:03:02.679 --> 01:03:07.079and didn't really know what her currentpension was going to be as you just90001:03:07.159 --> 01:03:12.239kind of joined the government place.And so what we really wanted to show90101:03:12.239 --> 01:03:15.960where was the fact that we cancalculate federal employees because we do specialize in90201:03:15.000 --> 01:03:20.559federal employees. We have a softwarethat works directly in. It's not the90301:03:20.679 --> 01:03:25.239OPM calculation that's the office that actuallycalculates the pension figures for you, but90401:03:25.280 --> 01:03:30.760it's a close calculation that mimics exactlywhat they do, so we can come90501:03:30.920 --> 01:03:34.400pretty close to an estimate of whatyou should be expecting. And that really90601:03:34.400 --> 01:03:37.960helps us understand what the plan forwhen it comes to income gaps. Right,90701:03:37.000 --> 01:03:39.320if you're getting forty thousand from apension, great, but if you're90801:03:39.320 --> 01:03:44.239spending sixty where's the other twenty goingto come from? If SOLI Security isn't90901:03:44.239 --> 01:03:45.599going to get turned on right awayin retirement, how are we going to91001:03:45.599 --> 01:03:47.880bridge that gap for a couple ofyears until it does get turned on.91101:03:49.000 --> 01:03:51.840It's not even in ten years fromnow they wanted to be seventy seven percent91201:03:51.880 --> 01:03:53.400of the funds come in, we'llbe able to pay for Social Security,91301:03:53.599 --> 01:03:57.880is what they're estimating. So there'sgoing to be changes over the next five91401:03:58.400 --> 01:04:00.480to ten years on how we're goingto be taxed to be able to pay91501:04:00.519 --> 01:04:04.480for it, and everyone keeps cuttaking that and kicking the can down the91601:04:04.519 --> 01:04:09.679down the road, and they betterstart realizing. The people within ten years91701:04:09.719 --> 01:04:13.199they're going to get their solid security, but the people twenty thirty years from91801:04:13.199 --> 01:04:15.920now, we got to start planningon how this is going to happen and91901:04:15.000 --> 01:04:18.559work. So we can kind ofuse an actuary and they get less so92001:04:18.599 --> 01:04:21.280there's more money going in now andthey can start putting more of their own92101:04:21.280 --> 01:04:25.199money away and growing. You know, for federal employee employees, there's a92201:04:25.239 --> 01:04:28.119lot of decisions you have to makewhen it comes to Fegley, when it92301:04:28.159 --> 01:04:30.880comes to FEHB, and then whenit comes to your TSP as well as92401:04:30.920 --> 01:04:35.119first so all those complex things.It's it's really hard to make all those92501:04:35.119 --> 01:04:40.079decisions by yourself without someone that reallyunderstands how it's going to work, with92601:04:40.159 --> 01:04:43.440your other side of your plan,your other assets that you could have into92701:04:43.480 --> 01:04:45.559the picture as well. So whenyou give us a call, is a92801:04:45.559 --> 01:04:47.119federal employee, not only if youget that financial plan, but you'll get92901:04:47.119 --> 01:04:50.559an in depth analysis of your benefits. So feel free to give us a93001:04:50.599 --> 01:04:54.960call five to zero five, fourto four, four nine zero nine.93101:04:55.840 --> 01:04:59.960And it's real simple, guys.I mean it's we got a nice little93201:05:00.079 --> 01:05:02.360building. You drive right up,you can walk right through, take an93301:05:02.400 --> 01:05:08.079elevator up, walk up the stairs, comfortable place, coffee, you name93401:05:08.159 --> 01:05:11.599it. You can just be hereand we sit down and we take the93501:05:11.679 --> 01:05:16.440time to explain everything to you.We will not rush you, will not93601:05:16.559 --> 01:05:19.920push you out, and we willnot hound you. All you need to93701:05:19.960 --> 01:05:25.480do is realize where you're at.Do we think that people will eventually do93801:05:25.559 --> 01:05:28.400business with us, Yes, ofcourse, you know, that's why we're93901:05:28.440 --> 01:05:31.280in business. But not everybody wantsto, not everybody needs to. Some94001:05:31.320 --> 01:05:33.960people can just do it on thesales. People are happy where they are.94101:05:34.199 --> 01:05:38.599But at the end of the day, we know once you come through94201:05:38.639 --> 01:05:42.280our doors and we put a plantogether and we show you what we would94301:05:42.320 --> 01:05:45.599be doing, you're going to learnsomething absolutely, yeah, exactly, And94401:05:45.639 --> 01:05:49.280that's our whole goal is education ofyour financial plan, because we want you94501:05:49.360 --> 01:05:53.639to be as knowledge it as youcan about what you's going into retirement or94601:05:53.639 --> 01:05:57.159how you're going to live through retirementwith your money. And if you want94701:05:57.199 --> 01:06:00.079a little sample piece again that Aprilsecond event will get you exactly what kind94801:06:00.079 --> 01:06:02.000of we do, how we doit. But not only that, you94901:06:02.039 --> 01:06:05.119also get to meet the tax countantsof the estate planning counts. So that's95001:06:05.159 --> 01:06:09.519why that's so beneficial coming up onApril second. All right, So let's95101:06:09.519 --> 01:06:12.039talk a little bit about Germany,because I want to get on my soap95201:06:12.039 --> 01:06:15.280box real quick about their energy strategy, which to me is one of the95301:06:15.280 --> 01:06:18.599worst in the world. Germany's energystrategy is one of the greatest mysteries of95401:06:18.599 --> 01:06:23.559our time because the country only dischargesless than two percent of the global carbon95501:06:23.599 --> 01:06:27.920emissions that we experience in the world. Yet the elite there within its established95601:06:27.960 --> 01:06:31.320have none less embarked on what amountsto an economic suicide mission. Their help95701:06:31.360 --> 01:06:34.000bent on saving the planet, butnever mind, the rest of the world95801:06:34.039 --> 01:06:40.000will happily absorb every gram of fossilfuel that Germany pretends to be temporarily abating.95901:06:40.840 --> 01:06:45.000Among the most illogical moves by therolling cluss there in Germany was proactively96001:06:45.039 --> 01:06:48.000dismantling the twenty two gigawatts of theworld's best run nuclear actors. Back in96101:06:48.039 --> 01:06:53.119the eighties and nineties, nuclear inGermany led the world. I mean they96201:06:53.239 --> 01:06:58.360dominated, they were manufacturing powerhouse.Now in twenty twenty three, they've completely96301:06:58.360 --> 01:07:02.280offlined their entire nuclear generators. Nota single nuclear generator is online anymore in96401:07:02.320 --> 01:07:06.159Germany. So they're predominantly relying oncoal now, so they're not using fossil96501:07:06.159 --> 01:07:09.960fuels and all their energy is comingfrom coal. But guess what, they96601:07:09.960 --> 01:07:13.199want to have a mandate meaning thatthey're no longer going to use any coal96701:07:13.280 --> 01:07:15.639by twenty thirty. So what happensthen, well, they got to use96801:07:15.639 --> 01:07:18.760some type of energy, So they'reeither going to go right back to fossil96901:07:18.760 --> 01:07:21.760fuels or have to go right backto the nuclear power plants that they did97001:07:21.960 --> 01:07:28.119that they offline only because of fear. So what you're saying is we're not97101:07:28.159 --> 01:07:31.760the only lion government out there.Yes, and Germany is one of the97201:07:31.760 --> 01:07:39.159most democratically socialistic progression in all countries. They also in the government lies,97301:07:39.400 --> 01:07:42.320oh we're gonna get this done.But so the power people in power think97401:07:42.320 --> 01:07:45.119they're gonna do this. It doesn'tlike you know, what people want,97501:07:45.400 --> 01:07:48.239no wars, what people want none, none of their families being killed.97601:07:48.440 --> 01:07:51.599That's what they want. Okay,it on the switch and get it.97701:07:51.840 --> 01:07:55.599Okay, they want clean energy,they don't need to just have all this97801:07:55.679 --> 01:08:00.239other stuff. Most people do notwant to go paying for all this until97901:08:00.280 --> 01:08:03.880it's proven. You know. It'sthe fear tactics. And that's what really98001:08:04.360 --> 01:08:06.840it's so crazy. I mean,we see it all the time with this98101:08:06.920 --> 01:08:13.039nuclear they predominantly produce fear, andthat's why we don't actually have it.98201:08:13.039 --> 01:08:15.800It's the best renewable energy that wecould be producing right now with everything you're98301:08:15.840 --> 01:08:19.640still just scared about, like anotherchernobyl happening really is for what it seems98401:08:19.680 --> 01:08:24.000like, yep. And you knowit's the same thing with climate change,98501:08:24.079 --> 01:08:28.199right it's fear driven. Not tomention the fact that the world goes through98601:08:28.359 --> 01:08:30.600eras of hot and then cold,and that's how the world works. It's98701:08:30.600 --> 01:08:33.920always done that, going back millionsand hundreds of millions of years before we98801:08:33.960 --> 01:08:39.159ever existed. We have no plantsin the United States right now, Okay,98901:08:39.560 --> 01:08:43.479that are working. People don't talkabout them. What was the last99001:08:43.479 --> 01:08:45.880time what was the last one thatwent down three mile and it didn't even99101:08:46.159 --> 01:08:50.000three milesian? You know, Icould not tell you in New York,99201:08:50.279 --> 01:08:57.199Pennsylvania, Pennsylvania three miles but itdidn't even escape the thing exactly, but99301:08:57.239 --> 01:09:01.760it works years ago like the safeSo like their whole reason of something that99401:09:01.840 --> 01:09:06.720it doesn't work, it worked withtechnology today. You telling me you can't99501:09:06.720 --> 01:09:11.520put together a great nuclear like weare not USSR, Like we know how99601:09:11.560 --> 01:09:15.600to manage a nuclear actor. Chernobyl'snot gonna happen anymore. Like that was99701:09:15.640 --> 01:09:19.520a failed state that was managing thatnuclear actor. So trying to compare that99801:09:19.560 --> 01:09:25.600to all nuclear actor and Fukushima wasa nuclear reactor in Japan that failed off99901:09:25.640 --> 01:09:29.640an earthquake, and it's an oldversion of a nuclear actor. Like all100001:09:29.640 --> 01:09:36.119these fear tactics is just well,nuclear plants to give us clean energy while100101:09:36.119 --> 01:09:45.800we all keep building fastest supersonic nuclearbumlear bombs, right that are never going100201:09:45.880 --> 01:09:49.520to be used hopefully hopefully, Right, So we spend all this money on100301:09:49.560 --> 01:09:56.520something that's never going to be usedhopefully that happens. Well, that's the100401:09:56.560 --> 01:09:59.760planning. We don't have to planfor, but people do plan for that.100501:10:00.079 --> 01:10:01.159Give me gold, give me abunker, give me food, that100601:10:01.239 --> 01:10:04.600lass for twenty five years. Idon't want to be in a bunker if100701:10:04.600 --> 01:10:09.119the world clows up. Bet onhumanity, all right, don't bet on100801:10:09.199 --> 01:10:11.840the dismantle of humanity we are.Do you got a quality a bunker in100901:10:11.880 --> 01:10:14.560a year from now? What's open? What's going on on? Ye?101001:10:14.680 --> 01:10:17.399Yeah, those movies never look fun. Everybody that's still laught won't even be101101:10:17.479 --> 01:10:21.800able to have kids anymore, right, they'll be too old. And we101201:10:21.920 --> 01:10:25.840go back to the fear of climatechange, the fact that they just they101301:10:26.399 --> 01:10:30.359obviously maybe humans have a small impact. You know, I can obviously to101401:10:30.359 --> 01:10:33.560see that back in China when theystopped polluting when the Olympics happened. In101501:10:33.560 --> 01:10:38.319a way, yeah, the sky'sgot clean. When the pandemic happened,101601:10:38.319 --> 01:10:41.520the sky's got clean for a coupleof years. But that does not impact101701:10:41.560 --> 01:10:45.159the real predominant changes of the world. The world is on its own cycle101801:10:45.199 --> 01:10:46.439and we have very little to do. Just worry about a little pollution,101901:10:46.600 --> 01:10:51.000but let's not worry about the virusis getting out that killed half of the102001:10:53.199 --> 01:10:57.359people that we probably created. Yeah, yeah, man made creating or whatever102101:10:57.359 --> 01:11:00.479the what do they call those gainof function real data function virus says,102201:11:00.560 --> 01:11:06.479let's do that, but let's notworry about that. Yeah, we will102301:11:06.479 --> 01:11:12.079live in a very stupid world thatis controlled by governments that want more money,102401:11:12.279 --> 01:11:15.279right right, I want them rightthat want money and power. All102501:11:15.359 --> 01:11:18.119right, we'll be back. Weappreciate you listening. You know how to102601:11:18.119 --> 01:11:24.000get in touch with us. GreenbergFinancial Group will be We'll talk to you102701:11:24.039 --> 01:11:28.239soon. We'll be right back.Welcome back, everybody. This is Dean102801:11:28.279 --> 01:11:30.680Greenberg. This is the Money MatterShow. As you know, we always102901:11:30.760 --> 01:11:35.039work here at Greenberg Financial word Team, and we've added to our team lately103001:11:35.239 --> 01:11:38.720and you know, over the nextcouple of months, we're going to keep103101:11:38.720 --> 01:11:43.279bringing you our team members. Notonly do you know our planning guys and103201:11:43.319 --> 01:11:46.319the investment guys, but as youknow, we brought on John Sabilia to103301:11:46.640 --> 01:11:50.720do the estate planning. He's gothis own estate planning firm and taxation and103401:11:50.720 --> 01:11:55.359stuff, and he's been with usnow about a year. And I've been103501:11:55.399 --> 01:11:58.760looking for a couple of accountants thatyou heard Joel on next week last week103601:11:58.760 --> 01:12:02.399and now with brother Si is herewith us and Joel, and there's a103701:12:02.439 --> 01:12:06.000lot of stuff we have to talkabout for people, for taxes and moving103801:12:06.039 --> 01:12:11.359forward. But the cool thing isis putting this partnership together. I like103901:12:11.399 --> 01:12:14.760them, they like us. It'sperfect because we both want to grow.104001:12:15.159 --> 01:12:18.399We both feel that the client comesfirst. We both will sit with you104101:12:18.600 --> 01:12:23.279and talk to you before we chargeyou. If you do business with us,104201:12:23.279 --> 01:12:28.039of course we charge you and thenand just go from there. So104301:12:28.079 --> 01:12:31.439the mentality is right, it's aclient comes first, right, and we104401:12:31.479 --> 01:12:34.800all know what we're doing with alot of experience in there. So it's104501:12:34.800 --> 01:12:39.720good. Welcome Si and welcome Joel. See you guys again, great to104601:12:39.760 --> 01:12:43.119be back. Good. All right, So we're coming up on tax season.104701:12:43.199 --> 01:12:45.359Obviously, the biggest thing that peoplewant to be talking about is how104801:12:45.359 --> 01:12:49.680do I make my taxable income lower? So let's talk a little bit about104901:12:49.680 --> 01:12:55.039the strategies. Most oftentimes the predominantone is retirement funding, right, so105001:12:55.079 --> 01:12:59.159let's talk a little bit about whatthose accounts are, what type of deduction105101:12:59.279 --> 01:13:01.399you are normally gonna be able tosee? Absolutely? So yeah, in105201:13:01.399 --> 01:13:03.880general, as the theme comes up, and you're spot on, Todd,105301:13:03.880 --> 01:13:06.720people don't generally come to the officeand say, you know what, how105401:13:06.760 --> 01:13:10.439do I pay more in taxes?I'd really like you to help me with105501:13:10.479 --> 01:13:14.359this. Doesn't matter what side ofthe aisle you're on. Everybody comes in105601:13:14.399 --> 01:13:18.479and oh, I wouldn't wind payingmore taxes? Go ahead. No one's105701:13:18.479 --> 01:13:23.439stopping you. No, no,uh, it hasn't happened yet. I'll105801:13:23.439 --> 01:13:30.600have to make sure I do it. But you're spot on on the retirement105901:13:30.640 --> 01:13:34.319accounts and whatnot. So do wegenerally look at it in three different areas106001:13:34.479 --> 01:13:40.439of how you can affect the taxsavings, when, how and to what106101:13:40.600 --> 01:13:43.680extent. So when you pay thetaxes is one of the major factors,106201:13:43.680 --> 01:13:46.039and that's retirement plans and things likethat come into play where you can defer106301:13:46.520 --> 01:13:50.119in control to when right you canput it into a ROTH. Still take106401:13:50.159 --> 01:13:54.279the tax hit now, but protectthe upside on the future, on the106501:13:54.319 --> 01:14:00.239future or traditional save that tax moneynow. And I've always told people that106601:14:00.479 --> 01:14:03.520tax free growth that time period iswhat really matters, right because if you're106701:14:03.520 --> 01:14:08.720below fifty, it's really easy tooutpace that tax hit today that you're going106801:14:08.800 --> 01:14:11.439to you know, gonna be feelingbecause that tax free growth is going to106901:14:11.520 --> 01:14:15.199offset that throughout the years. Itis just looking at the growth when that107001:14:15.319 --> 01:14:18.399But some people aren't eligible for theWROTH, and there's a back door depending107101:14:18.439 --> 01:14:23.680on some of the circumstances that someonemight be exposed to. But it's a107201:14:23.720 --> 01:14:29.039common misunderstanding that you don't have anoption to get into a ross based on107301:14:29.119 --> 01:14:33.279income. Sometimes I hear about thatbackdoor loth Okay, yep, without going107401:14:33.319 --> 01:14:38.159down a bad path, talk tome about the back door wealth. Yeah,107501:14:38.239 --> 01:14:41.199So keeping it real simple and there'slogistics to everything, right, But107601:14:42.399 --> 01:14:45.880if you don't have a traditional iracurrently, and that becomes a factor in107701:14:45.640 --> 01:14:47.760the in the details of it,which we'll stay out of for now,107801:14:48.760 --> 01:14:54.039you can put monies into a traditionalira and then convert it to a roth.107901:14:54.319 --> 01:14:57.920The money's going into the traditional iraare not deductible because you're not qualified,108001:14:58.199 --> 01:15:00.239but the conversion to roth is qualified, and so they call it the108101:15:00.279 --> 01:15:05.119back door. Oh so you couldput money into Why can't you put in108201:15:05.479 --> 01:15:10.119because you make too much money orsomething? First off, so because you108301:15:10.119 --> 01:15:14.279can't put tax deductible, but youcan put after tax money into an IRA108401:15:15.600 --> 01:15:18.319and then just take that and moveit into a wroth and you already paid108501:15:18.359 --> 01:15:20.479the taxes, right, you don'thave to pay them again. There you108601:15:20.520 --> 01:15:30.079go. Why haven't I done that? Because because it's not as simple as108701:15:30.079 --> 01:15:32.520that, right, Because if youdo have an IRA, could possibly there's108801:15:32.520 --> 01:15:35.960other rules involved and things like that. You make sure you the conversion if108901:15:35.960 --> 01:15:39.880you have a traditional position, theconversion into the wroth has to be done109001:15:39.880 --> 01:15:42.840on a pro radit basis of what'squalified non qualified. And now I'm in109101:15:42.840 --> 01:15:45.640my accounting rabbit hole? Should Ijust keep going? But if you no,109201:15:45.640 --> 01:15:47.119No, If you have a regularIRA though okay, which a lot109301:15:47.159 --> 01:15:50.399of people do, but you can'tput any more in there? Could you109401:15:50.439 --> 01:15:56.000open up this non deductible ioway,you'd have to do it in a roundabout109501:15:56.000 --> 01:16:00.520way? No, okay, Sothat's not a backdoor back door. There's109601:16:00.520 --> 01:16:03.079only one backdoor. There's one paththrough the back door, but there's you109701:16:03.159 --> 01:16:05.600know, you can move your moneysinto a four to one K or other109801:16:05.640 --> 01:16:12.000position that is not a traditional position. And they're before liberating the traditional to109901:16:12.079 --> 01:16:14.479be able to do the back door. So there's ways to get there,110001:16:15.359 --> 01:16:16.880it's just not through the So Ithink what you're saying here is if the110101:16:16.920 --> 01:16:19.960pre tax four one k there regularfour one KVE it's in there, you110201:16:20.000 --> 01:16:23.920can do the back door if theplan has a wroth four one K part110301:16:23.920 --> 01:16:28.439of it there all right, Sowithin the four one K structures you are110401:16:28.439 --> 01:16:30.439limited to the plans themselves, buton the IRA side of it, and110501:16:30.479 --> 01:16:34.439on the IRA side. It disregardsthe four to one K storyline. Okay,110601:16:34.560 --> 01:16:38.199so really the simplest thing is ifyou don't have an IOA because you110701:16:38.279 --> 01:16:41.199make too much money, because obviouslyif you're not making that much money,110801:16:41.199 --> 01:16:43.359you're not filling it up. You'renot going to do the back door either.110901:16:43.760 --> 01:16:45.520But if you if you're filling upall your timing plans and you want111001:16:45.560 --> 01:16:48.920to put another what is it,seven thousand dollars now, yeah, eight111101:16:48.920 --> 01:16:53.359thousand for over fifty Yeah, okay, then there's a way to back door111201:16:53.399 --> 01:16:57.079this thing. Yep. Okay,all right, I'm going to do that.111301:16:57.840 --> 01:17:00.600Yep. It's it's a great opportunity. Now, four one ks are111401:17:00.640 --> 01:17:04.960the biggest opportunity for tax savings becausethe limits of them. Right, So111501:17:05.520 --> 01:17:09.960those limits, I believe that fortwenty four is twenty three thousand, I111601:17:10.039 --> 01:17:13.239get the right twenty two five,twenty two five, for twenty three,111701:17:13.680 --> 01:17:16.079twenty three, and then over fiftyyou can get up to what thirty thirty111801:17:16.119 --> 01:17:20.079total seven and a half more.So you know, taking off thirty thousand,111901:17:20.119 --> 01:17:24.239your tax blow income potentially is alot more than eight thousand, it112001:17:24.319 --> 01:17:27.880is, right, So that's whynormally fall do you recommend that four on112101:17:27.960 --> 01:17:30.720K is kind of the first betto go to, or is do you112201:17:30.800 --> 01:17:33.199have an IRA first? Or how'sthat strategy? It look like you bet.112301:17:33.239 --> 01:17:35.760So if you were to give mejust purely from a tax all lse112401:17:35.800 --> 01:17:40.279equal storyline, the number one thingyou would do is fully fun in HSA112501:17:40.319 --> 01:17:44.920if you qualify. It is theonly thing I know that is never taxed.112601:17:45.600 --> 01:17:47.359You don't your tax free money goesin, you don't pay tax on112701:17:47.399 --> 01:17:50.880the money that you earn to putit fund it. It accumulates tax free,112801:17:50.880 --> 01:17:54.159and when you take it out,if it's for medical related purposes,112901:17:54.199 --> 01:17:57.439it comes out tax free, nevertaxed anywhere. The only thing I know113001:17:57.479 --> 01:18:00.039that does that. Do you saidif you have Medicare? Yep, well,113101:18:00.199 --> 01:18:03.399any Medicare related costs, so itcould be deductions, it could be113201:18:03.840 --> 01:18:10.079anything I have to build is theMedicare bill premium? Is that able?113301:18:10.319 --> 01:18:12.800So if you have it pre funded, you can't have an HSA at the113401:18:12.800 --> 01:18:15.840time that you're actively in Medicare.But if you have a pre existing plan,113501:18:15.880 --> 01:18:17.439you could have a billion dollars inan HSA and fund everything you have113601:18:17.520 --> 01:18:21.840medical related so by the time youstart, by the time you start medicare.113701:18:21.960 --> 01:18:25.880The HSA has to be drained,not drained. You could have a113801:18:25.920 --> 01:18:29.560billion, it can be already inthere, it just can't. Then okay,113901:18:29.720 --> 01:18:35.239after you start, you can't backdoor keep your post side door roof.114001:18:35.359 --> 01:18:38.960I don't know, tell me howto climb. Hsas again, are114101:18:39.039 --> 01:18:42.359limited to a kind of small limitfor most plans, right, it's like114201:18:42.760 --> 01:18:45.359seven or something they are. It'sI want to say, it's seventy seven114301:18:45.399 --> 01:18:48.960to fifty for family plus a thousandketchup if fifty year older, I think114401:18:48.960 --> 01:18:51.720on that one, and then thirtyeight fifty for non family, right,114501:18:51.840 --> 01:18:56.800yeap, So it is relatively limited. So first HSA, so then yeah,114601:18:56.920 --> 01:18:58.880or then you get into the hey, does your four one K have114701:18:58.920 --> 01:19:00.640a match? You have somebody's otherthings? Hey, grab that match because114801:19:00.640 --> 01:19:05.000that's real money too. But asfar as otherwise, yes, okay,114901:19:05.119 --> 01:19:10.479max out that HSA then for onek yep. And then if we have115001:19:10.560 --> 01:19:14.600leftover money where we go then hey, ira, even if you have to115101:19:14.640 --> 01:19:17.159back door, okay, And thenif there's any more money after that,115201:19:17.439 --> 01:19:21.359is there anything else I could do? There's a whole plethora of things you115301:19:21.359 --> 01:19:25.039can do during the tax here atthe end of the tax year. As115401:19:25.039 --> 01:19:28.560we're sitting here mostly talking twenty twentythree people coming into the office or looking115501:19:28.560 --> 01:19:32.359to have you know, what happenedlast year be addressed. The other things115601:19:32.479 --> 01:19:36.359are to look forward to next year. An example of that I would have115701:19:36.399 --> 01:19:42.520people consider, particularly for the smallbusiness owners, review their corporate structure type.115801:19:42.600 --> 01:19:45.479So an S corporation election, forexample, has to be filed by115901:19:45.479 --> 01:19:51.079March fifteenth to qualify for that calendaryear forward, and that has incredible potential116001:19:51.760 --> 01:19:57.720savings and structural value things to consider. Yeah, we talked about that multiple116101:19:57.760 --> 01:20:00.560times with John about the S corp. Not only on the tax savings,116201:20:00.560 --> 01:20:02.800but then the ability to have retirementplans set up as formal k's and all116301:20:02.840 --> 01:20:08.279kinds of profit sharing the things thatcould be added is very beneficial for business116401:20:08.279 --> 01:20:13.720owners. So what were the threethings? When? How? And then116501:20:13.760 --> 01:20:15.640to what extent? To what extent? So have we covered to what extent?116601:20:15.720 --> 01:20:19.279Ye? Not yet? Okay,So the remaining gem there is one116701:20:19.319 --> 01:20:23.520of the beauties of being in Arizona. So we hear it often referred to116801:20:23.560 --> 01:20:28.800as Arizona tax credits, and there'sa lot of confusion about this everywhere.116901:20:29.239 --> 01:20:31.880Regularly we spend a lot of timein the office and trained everybody in the117001:20:31.920 --> 01:20:35.760office to be generally familiar to explainthis to folks. And I would characterize117101:20:35.760 --> 01:20:41.640it slightly differently to help people understand, and that is that Arizona tax payers117201:20:42.199 --> 01:20:45.039get to say where their tax moneysgo. If you think there's a homeless117301:20:45.039 --> 01:20:48.439problem, you can say, yourtax money goes to homeless problem. You117401:20:48.439 --> 01:20:51.920think education should be funded better,you can say your tax money goes to117501:20:51.920 --> 01:20:57.000fund education and so forth. Andpeople don't really understand that they hear tax117601:20:57.039 --> 01:21:00.359credit. They're confused and whatnot.But that's what it is. You get117701:21:00.399 --> 01:21:03.840to say. If you're a taxpayer, there's four categories where you can say,117801:21:03.880 --> 01:21:06.760up to a certain amount, whereyour tax money goes. And as117901:21:06.920 --> 01:21:12.359a married couple, what can youcontribute it's a married couple. Those four118001:21:12.399 --> 01:21:16.680categories total almost five thousand dollars.Okay, so four hundred I know can118101:21:16.720 --> 01:21:21.960go to a public school, that'scorrect, right, yep. Which if118201:21:21.960 --> 01:21:25.600you need someplace to go, Iknow a good football team and down at118301:21:25.640 --> 01:21:30.439Tucson Eye to deliver your four hundreddollars. FULD appreciate it. It's a118401:21:30.479 --> 01:21:32.039tax credit, so you pay itin you get it out. Yep.118501:21:32.079 --> 01:21:35.680It's huge saying hey, Arizona,want my tax money to help fund twoths118601:21:35.680 --> 01:21:41.920on high school football, not highschool football, the other ones that you118701:21:41.960 --> 01:21:45.359could be saving on our So theother categories, there's also the non public118801:21:45.359 --> 01:21:51.000schools and that total is twenty sixo nine for married and then there's general118901:21:51.079 --> 01:21:56.600charitable organizations which is eight hundred andforty one, and qualified foster care organizations119001:21:56.600 --> 01:21:59.760which is one thy fifty one andthose last two who had been eight hundred119101:21:59.760 --> 01:22:02.600and firs for a long time,but they've started adjusting those for inflation with119201:22:02.680 --> 01:22:09.680twenty twenty three teens two the qualifiedcharitable organizations and the qualified foster care words119301:22:09.960 --> 01:22:13.000and what was the other full theeight hundred and fifty one? I thought119401:22:13.000 --> 01:22:15.800that's what that was for. Yep. The eight forty one is the qualified119501:22:15.880 --> 01:22:20.199charitable org And what's the difference betweenthem and the other qualified profitable so the119601:22:20.279 --> 01:22:28.039foster care So there's a okay subcategoryfor foster care specifically okay, And something119701:22:28.079 --> 01:22:30.359that I like to bring up withour financial planning software is our ability to119801:22:30.520 --> 01:22:34.239look at taxes throughout retirement. Seeingthat you're going to have sold security earned119901:22:34.279 --> 01:22:36.520income, you can play with allthe other earned income that can show up,120001:22:36.520 --> 01:22:40.439but then we can play with thingslike raw conversions, seeing how much120101:22:40.479 --> 01:22:43.760we do, what kind of bracketthat sends them into, and also potentially120201:22:43.800 --> 01:22:46.039what type of tax savings we couldbe looking at, because our software will120301:22:46.079 --> 01:22:50.319also project out what growth will happenin that wrath based on a Monte Carlo120401:22:50.359 --> 01:22:55.520simulation. So talk to us.I know I sent you that the tax120501:22:55.560 --> 01:22:58.920planning tool. What are the kindof things that you know people should be120601:22:58.960 --> 01:23:02.760thinking about in retirement with qualified charitabledistributions of who else? Roth conversions?120701:23:03.239 --> 01:23:06.159Yeah, absolutely spot on. Ithink the key takeaway there, Todd is120801:23:06.279 --> 01:23:11.640there's a number of dynamic considerations andthat's really where the financial plan comes into120901:23:11.640 --> 01:23:15.680the storyline, and then the taxconsideration of that being a key component of121001:23:15.720 --> 01:23:18.439that overall plan and strategy. Thereare a very large number of them,121101:23:18.439 --> 01:23:24.119and maybe we'll have a chance toexplore that in future conversations, but I121201:23:24.119 --> 01:23:27.479think one that you that I wouldcall out up front here is the qualified121301:23:27.560 --> 01:23:30.560charitable distribution so that when you aresubject rm DS, that is an opportunity121401:23:30.600 --> 01:23:35.159to really understand. We'll continue thatafter the break with coming up Johnson Brothers.121501:23:35.159 --> 01:23:39.800I appreciate you being here, Joelon Si. This is the Moneymount121601:23:39.800 --> 01:23:42.800of Show. We appreciate you listening. Stay tuned. We've got some more121701:23:42.840 --> 01:23:45.560stuff to talk about in the nextsegment. Welcome back, everybody. This121801:23:45.640 --> 01:23:50.800is Dean Greenberg Money Mattery Show.Well here with the Johnson Brothers accountants CPAs.121901:23:51.640 --> 01:23:57.159What else you do consulting business taxes? And now it's a tax season.122001:23:57.479 --> 01:24:01.640What are you seeing? Mostly we'reseeing all kinds of excited people who122101:24:02.239 --> 01:24:06.119are our new best friends again forthe start of the year. Well,122201:24:06.119 --> 01:24:10.640that's always fun, you know.I want to talk a little bit about122301:24:10.640 --> 01:24:14.079it, like joint accounts, broker'saccounts, because right now ten percent of122401:24:14.079 --> 01:24:17.960the stocks by market size is equalsseventy five percent of the US stock market.122501:24:18.079 --> 01:24:21.359What that means is a lot ofpeople have huge positions in Microsoft,122601:24:21.439 --> 01:24:25.479right Google, Apple, things thatthey bought twenty years ago now have these122701:24:25.560 --> 01:24:29.760huge unrealized gains that they don't wantto take because the message with they're earned122801:24:29.800 --> 01:24:34.920income. What are some strategies you'veever seen with these potential unearned capital gains?122901:24:35.199 --> 01:24:40.720How to mitigate those risks and howto plan around them throughout retirement.123001:24:42.680 --> 01:24:45.920So it depends first on what typeof accounts those are in. So if123101:24:45.960 --> 01:24:48.359they're in retirement type of accounts,then who cares right right or roll?123201:24:49.359 --> 01:24:56.319When they're outside of the retirement accounts, any capital gain and loss can potentially123301:24:56.359 --> 01:25:00.359offset any other capital gain and loss. So you just look through the actrum123401:25:00.439 --> 01:25:05.000in the consideration for a given clientand scenario where there might be lost opportunities123501:25:05.079 --> 01:25:10.079that they can couple to the gainsand just sort of batch those storylines together.123601:25:10.479 --> 01:25:13.920The other thing, honestly that we'vebeen talking more and more with people123701:25:13.960 --> 01:25:17.199about is as you look at therate horizon, the tax structure horizon,123801:25:17.640 --> 01:25:21.680right now, cap gains are ata nice relative low rate, and we've123901:25:21.680 --> 01:25:28.680actually had more conversations about actually takingthe cap gains hits now versus deferral section124001:25:28.760 --> 01:25:30.760ten thirty one. You know,you pick your type of deferral story in124101:25:30.840 --> 01:25:36.760order to capture even at a taxhit currently the ones that exist today versus124201:25:36.800 --> 01:25:40.319the higher ones probable tomorrow. Yeah, so I explained more about like the124301:25:40.359 --> 01:25:43.439tax horizon right now, long termgains are roughly fifteen percent, and then124401:25:43.479 --> 01:25:45.880shorts and games are obviously more.But what about what are you seeing on124501:25:45.920 --> 01:25:48.680the horizon. I mean, obviouslythey're not going to go lower, right,124601:25:48.680 --> 01:25:51.479I don't know if I haven't seenanything specific numbers. I don't know124701:25:51.520 --> 01:25:58.279if you have. So there's alarge number of numbers being talked about,124801:25:58.319 --> 01:26:00.960which is common for this time ofthe year, when we're an election year124901:26:00.000 --> 01:26:04.199and so forth. The platforms arebeing established, the rhetoric associated with,125001:26:04.359 --> 01:26:09.039hey, I have education as myfocus, let's say, and how am125101:26:09.079 --> 01:26:12.800I going to fund that storyline?And then how do you That's where you125201:26:12.880 --> 01:26:15.880juggle some of that backstory and thetax structures, So those will start coming125301:26:15.960 --> 01:26:20.720up on the horizon here they allbasically say higher. I mean, if125401:26:20.720 --> 01:26:25.079you look at the federal numbers,what's the twenty twenty three budget look like.125501:26:25.199 --> 01:26:29.239You get two point two trillion fromindividual income taxes, You get another125601:26:29.279 --> 01:26:32.399one point eight trillion round numbers fromSocial Security Medicare. So four trillion of125701:26:32.439 --> 01:26:36.600the four point four trillion federal budgetround numbers is all through this individual tax125801:26:36.680 --> 01:26:41.000direct line. And they're already spendingone point seven trillion more than that,125901:26:41.079 --> 01:26:44.079which is basically the total Social SecurityMedicare that were holding from everybody. So126001:26:44.159 --> 01:26:45.600just double all that, right,So you know, as long as everybody's126101:26:45.600 --> 01:26:48.800comfortable taxes going up forty five percentor so, don't worry about a thing.126201:26:48.960 --> 01:26:51.439Just roll with it. It's goingto be great. Well now the126301:26:51.479 --> 01:26:55.279time, I mean it didn't getmuch legs, but they were talking about126401:26:55.359 --> 01:26:58.479tax and unrealized gains, which Imean, I don't think that could ever126501:26:58.520 --> 01:27:01.479go through. Yeah, a lotof people off. Yes, well,126601:27:01.479 --> 01:27:04.680then we'd have to worry about talkingabout realized gains, unrealized gains and losses.126701:27:04.720 --> 01:27:08.279I mean they're really just trying tohelp us, aren't they. Yeah,126801:27:08.279 --> 01:27:11.199I mean yes, but I don'tknow how they could ever go through126901:27:11.199 --> 01:27:14.479with that, how would even reallywork in that sense? But yeah,127001:27:14.479 --> 01:27:15.680I mean talking about all the taxesand stuff. So you guys just bought127101:27:15.840 --> 01:27:19.800your new firm and talk about thewhole process with bringing new clients on and127201:27:19.800 --> 01:27:25.000how you're going about that. Yeah, what can a client experience or expect?127301:27:26.039 --> 01:27:30.119Yeah? Absolutely, So we areblessed to be taking over from a127401:27:30.159 --> 01:27:35.479practitioner who practiced very well and asyou all know from your relationship with them,127501:27:36.079 --> 01:27:41.840and so it's a very continued carryingthe torch forward. We have a127601:27:41.880 --> 01:27:45.359great team in place, some ofthe infrastructure he had is continuing on with127701:27:45.439 --> 01:27:51.000us, and they should expect avery welcoming, a very client oriented,127801:27:51.039 --> 01:27:57.960customer service supporting response. You knowa lot of people I've always talked about127901:27:57.960 --> 01:28:00.159it. You don't want a mechanicon the other side of you, right,128001:28:00.199 --> 01:28:03.479someone who just constantly find issues,find more reasons to charge you more128101:28:03.520 --> 01:28:06.399and more money. And so Ithink the reason that we get along so128201:28:06.560 --> 01:28:11.479well is the fact that you're goingto give the clients straight what they actually128301:28:11.479 --> 01:28:15.000need to know, right, notthe minutia, not trying to sound smarter128401:28:15.079 --> 01:28:17.439than they are, or trying toconfuse them to make them feel like,128501:28:17.520 --> 01:28:20.199yeah, they actually do need topay you this money. It's just giving128601:28:20.239 --> 01:28:23.560them straight what you need to know, how you need to know it,128701:28:23.680 --> 01:28:26.399and what to do for it,right. Yeah. And further too,128801:28:26.439 --> 01:28:30.319that's those things absolutely, And furtherto that, it's the opportunities, looking128901:28:30.359 --> 01:28:34.760at the opportunities rather of what theyshould be considering forward. Right. The129001:28:34.800 --> 01:28:41.479opportunity of going through their circumstances fortax purposes gives us the insight to help129101:28:42.039 --> 01:28:45.720them navigate that future. Right.So we talked a little bit about twenty129201:28:45.760 --> 01:28:49.000twenty three taxes and what we cando and there's a number of there's some129301:28:49.039 --> 01:28:53.000opportunities, but not nearly as manyas there are during the year. Yeah,129401:28:53.039 --> 01:28:55.840and that all calms back to thefinancial plan that we keep harping on,129501:28:55.880 --> 01:28:59.119because without that, you are shootingat the hip. You have no129601:28:59.239 --> 01:29:02.159idea what potential tax implications you'd beputting yourself in. But more than that,129701:29:02.199 --> 01:29:05.039when it comes to taxable income,it also affects in retirement, your129801:29:05.079 --> 01:29:08.720medicare premiums, right, how muchyou're going to be paying on that,129901:29:09.039 --> 01:29:12.199what type of tax rate you couldbe paying on, roth conversions, all130001:29:12.239 --> 01:29:15.279types of things that could be strategizedto really help you into the future.130101:29:15.319 --> 01:29:19.479I always talk about with rock conversions, if you've started r and ds,130201:29:19.520 --> 01:29:24.079it's really hard for them to makesense because you have so much earned income130301:29:24.119 --> 01:29:27.239at that point. It's you can'treally see it. For most people,130401:29:27.279 --> 01:29:30.880I see if they can retire andhaven't turned on Social Security and they haven't130501:29:30.920 --> 01:29:33.199started rm ds, that's that windowwhere you could, you know, make130601:29:33.279 --> 01:29:38.279some some changes. But other thanthat, once once you kind of turn130701:29:38.319 --> 01:29:41.359on SoSE security, aren't Rock conversionsdon't really seem to do it for me.130801:29:42.039 --> 01:29:44.880Yeah, it depends on the individualcircumstance. But as a general rule,130901:29:44.920 --> 01:29:46.520I think you're spot on. SoI mean in sense you're working in131001:29:46.520 --> 01:29:49.279tandem with the financial plan that wedo with our clients. It helps you131101:29:49.319 --> 01:29:54.760a lot right on how you couldgo about their taxes absolutely without one without131201:29:54.800 --> 01:29:57.720the other. You're sitting on aone legged stool, and it's an incredible131301:29:57.760 --> 01:30:00.399balance act. Yeah, yeah,exactly. And that's why we to bring131401:30:00.439 --> 01:30:02.279everything together so we can give youthe holistic plan of what you're looking at131501:30:02.319 --> 01:30:05.239financially, through the investment side,through the tax side, through the state131601:30:05.239 --> 01:30:09.239planning side. That's why we've beentrying so long to get this all together.131701:30:09.680 --> 01:30:12.439Yes, and then we can diveinto a little bit of the minutia131801:30:12.479 --> 01:30:15.720of what you're talking about with esCorp. Because we have a lot of131901:30:15.760 --> 01:30:18.520business owners that talk that listen tothis show. What are the things they132001:30:18.520 --> 01:30:23.840need to know about classification on theirbusinesses and things that they're positentially missing out132101:30:23.840 --> 01:30:25.600on. I mean, for onethat I keep harping on, it's the132201:30:25.600 --> 01:30:28.920four one K tax credits. Imean, they are literally paying for your132301:30:28.920 --> 01:30:31.560four one K the first three years, almost five years they're in their real132401:30:31.600 --> 01:30:34.000credits. It's not the doctor,and then you get the deductions of the132501:30:34.000 --> 01:30:36.760match on top of that. Soit's for the first five year, it's132601:30:36.800 --> 01:30:41.640all but benefits for you. Whydo you think, you know, businesses132701:30:41.680 --> 01:30:45.359aren't taking advantage of that, orwhat are some of the pitfalls you're seeing?132801:30:45.359 --> 01:30:48.760If I had to speculate why they'renot taking advantage, I don't think132901:30:48.840 --> 01:30:54.119they properly are informed on what thatopportunity really looks like, like you just133001:30:54.159 --> 01:30:57.359described, and some of those thingsare relatively new. Credit for the four133101:30:57.359 --> 01:31:00.479to one K set up and soforth, that's all recent vintage, so133201:31:00.560 --> 01:31:04.479that I think awareness is a keypart on that, and then having someone133301:31:04.520 --> 01:31:09.720capable to do it right, understandingsomeone who can carry that plan, hold133401:31:09.720 --> 01:31:12.039that plan, and what the logisticsof it are. So if you go133501:31:12.119 --> 01:31:15.520back and forward K legacy a littlebit, the burden of a foreign K133601:31:15.680 --> 01:31:18.960plan wasn't insignificant, right, butthe opportunities now in the way it's structured,133701:31:19.039 --> 01:31:21.640I think that that is more ofa thing of the past. Yeah.133801:31:21.680 --> 01:31:26.039I mean the people we partner withvest Well, they make it so133901:31:26.199 --> 01:31:29.800easy and they're a fintech company,which that's how every thing's going these days,134001:31:29.880 --> 01:31:32.680right, making things mobile and everythingis so easy where they take care134101:31:32.680 --> 01:31:35.560of the administration side, the recordkeeping, that business owner doesn't have to134201:31:35.560 --> 01:31:40.319worry about any of the administrative burden. And then Greenberg Financial takes care of134301:31:40.319 --> 01:31:44.239the investment side, the fiduciary side, making sure all the investments are suitable134401:31:44.399 --> 01:31:46.880and actually educating their employees about theiroptions as well. But from a business134501:31:46.880 --> 01:31:50.399owner's standpoint, the only thing youneed to do is get some fidelity bond134601:31:50.399 --> 01:31:53.760coverage for your phone K plan.That's about it, you know what I134701:31:53.840 --> 01:31:57.760mean. And then you can sitback accept in deductions on an employer basis,134801:31:57.800 --> 01:32:00.560and also the credits that you're goingto get in the first couple of134901:32:00.640 --> 01:32:03.520years for setting up the plan,yep, And that's all upfront, and135001:32:03.560 --> 01:32:06.119then you actually have a plan andnow you set those moneiess aside, and135101:32:06.119 --> 01:32:09.720now you're not paying income tax onthat depend on the plan type where auth135201:32:09.720 --> 01:32:14.439they're traditional, and it's just anincredible sequence of value propositions from there.135301:32:14.520 --> 01:32:16.039Yeah. Because then also as abusiness owner, your W two can get135401:32:16.079 --> 01:32:18.520lowered as well, because if youdon't have a W two, you're probably135501:32:18.560 --> 01:32:23.960what sole proprietorship right now commonly,So what are the things that those people135601:32:24.039 --> 01:32:26.319are sole proprietors right now, whatare they missing out on them? They135701:32:26.319 --> 01:32:30.600don't know. On the other side, you always have to look at the135801:32:30.640 --> 01:32:33.600scenario. There's nuances within the codewith regards to types of businesses and things135901:32:33.640 --> 01:32:38.119that go in and out on differentstructures, so it's not always a one136001:32:38.199 --> 01:32:42.760form fits all, but there areincredible number of deductions and flow throughs that136101:32:42.800 --> 01:32:46.039you can get and moneies that youcan save with some of these other structures.136201:32:47.359 --> 01:32:53.199For example, would be if youbring one hundred thousand dollars in your136301:32:53.199 --> 01:32:56.039business on the bottom line, andthat's on your schedule, See, you136401:32:56.079 --> 01:32:59.159pay the self employment tax, youpay the income tax, you pay everything136501:32:59.199 --> 01:33:04.520on the whole whole themount If reallyonly half of that was legitimately salary moneies136601:33:04.520 --> 01:33:09.800and the rest of it was gainsthat you had as being the owner of136701:33:09.840 --> 01:33:13.640the business, then if you werein a different structure, just talking to136801:33:13.680 --> 01:33:15.680the tax side of this, rightthen you would not be subject to the136901:33:15.680 --> 01:33:18.640self employment tax on the part thatwas the business earnings. You still pay137001:33:18.640 --> 01:33:23.680the income tax, but the selfemployment's fifteen percent, So in that scenario,137101:33:23.720 --> 01:33:27.199is seventy five hundred dollars less thantax bill in a one hundred KSE137201:33:27.199 --> 01:33:30.880scenario where fifty salary and fifties flowthrough. And that's coming back to working137301:33:30.960 --> 01:33:33.960with a professional. I think youhit the nail on the head people just137401:33:34.000 --> 01:33:38.640not being advised. I mean,these are very complex structures, and people137501:33:38.720 --> 01:33:41.520don't go to school to learn aboutwhat an escore business or proprietorship. They137601:33:41.520 --> 01:33:44.359go to school how to make abusiness and how to build a business,137701:33:44.359 --> 01:33:46.079how to sustain a business, andthen they get to the tax sided things137801:33:46.119 --> 01:33:48.680and they're like, yeah, Ihate this part. So you know,137901:33:49.039 --> 01:33:53.560this is why it really makes senseto get in contact with these people because138001:33:53.560 --> 01:33:56.520not only would they meet with youfree at first to make sure that they138101:33:56.520 --> 01:33:59.760can help you and see how theycan help you, but then also you138201:33:59.800 --> 01:34:02.119can meet with us free financial plan. We work in tandem with each other.138301:34:02.159 --> 01:34:05.760We'll make sure that you are puttingyourself in the best possible position to138401:34:05.840 --> 01:34:10.720succeed throughout retirement. Yep. I'mjust worried about Dylan last week. He138501:34:10.800 --> 01:34:13.000was saying how you wanted to doall the accounting work and all that kind138601:34:13.000 --> 01:34:15.399of stuff. Yeah right, yeah, that's exactly what I was saying.138701:34:15.119 --> 01:34:18.159I'm good on that you guys cankeep all that. What's uh, But138801:34:18.680 --> 01:34:23.680so what's your typical client Do youwork more with business owners or individual taxes?138901:34:23.800 --> 01:34:28.640What are you looking for? Justanybody? So we are about Tucson,139001:34:29.039 --> 01:34:31.520and when you look at Tucson,Uh, we have the individuals.139101:34:31.960 --> 01:34:35.520There's certainly a volume of our clientelethat is individual base. There is a139201:34:35.560 --> 01:34:42.760lot of small business owners in Tucson, people working incredibly hard, and those139301:34:42.880 --> 01:34:45.560are the folks that we find.We were able to make the a tremendous139401:34:45.600 --> 01:34:50.239value proposition toward help bridge that gap, that balance between For example, if139501:34:50.239 --> 01:34:55.119you don't know the flow through structuresand how to consider the structures for your139601:34:55.119 --> 01:34:59.720business, you could be paying justtremendously more in taxes alone, never mind139701:34:59.760 --> 01:35:02.319some of the other considerations. Well, we're coming up on the end of139801:35:02.319 --> 01:35:05.399the show and I'm going to leavethe listeners with this. Only fourteen percent139901:35:05.399 --> 01:35:11.319of American voters say they're better offfinancially under the current administration. Those fourteen140001:35:11.319 --> 01:35:14.239percent probably have a financial plan.So at the end of the day,140101:35:14.600 --> 01:35:18.199it's really important to you know,stay happy. At the end of the140201:35:18.279 --> 01:35:21.319day, we all want to behealthy. But Greenberg Financial Group, what140301:35:21.359 --> 01:35:25.399we really try to do is stayprofitable.