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

WEBVTT 1 00:00:00.160 --> 00:00:04.040 Good morning, everybody. Is that time once again Sunday morning, eight o'clock 2 00:00:04.559 --> 00:00:09.080 it's the Money Batter Show with Dean Greenberg. We'll have everybody on today except 3 00:00:09.160 --> 00:00:14.039 Dave Sherwood. He was going ahead and he's with his grandchildren, so it's 4 00:00:14.080 --> 00:00:18.920 good. We have a lot to talk about. The markets are looking a 5 00:00:18.960 --> 00:00:24.120 little bit to the point that they need a little neutrality, okay, little 6 00:00:24.120 --> 00:00:28.679 floundering around. We've had a huge run up. A lot of stocks have 7 00:00:28.800 --> 00:00:38.159 really run and again it's those AI stocks because the S and P five hundred, 8 00:00:38.159 --> 00:00:44.079 which is up five percent, and the equal weighted SMP is only up 9 00:00:44.119 --> 00:00:52.200 one point four percent. So once again there's a difference because of the concentration 10 00:00:53.439 --> 00:00:58.600 in all those big tech AI stocks. That doesn't mean it's gonna stop, 11 00:01:00.719 --> 00:01:07.400 but there could be a pullback. That doesn't mean you sell everything. We've 12 00:01:07.400 --> 00:01:14.200 been trimming, we've been hedging because markets have really on those sides and more 13 00:01:14.959 --> 00:01:19.239 have excessively rallied and if there's a pullback, they're all going to go down. 14 00:01:19.079 --> 00:01:22.760 So your heads, yourself a little bit, You trim back those big 15 00:01:22.799 --> 00:01:27.439 positions a little bit, and you move forward. The Money Matter Show is 16 00:01:27.439 --> 00:01:32.480 brought to you by Greenberg Financial Group. Greenberg Financial Group is both a registered 17 00:01:32.480 --> 00:01:36.920 investment advisory and a broke a deal and they're registered with the SEC, members 18 00:01:36.959 --> 00:01:41.079 of FINA and members of SIPIK. On the show, we talk about different 19 00:01:41.079 --> 00:01:46.120 products, different strategies, and different ideas. Every one of those things have 20 00:01:46.239 --> 00:01:52.959 some type of risk. We highly suggest you understand your risk prior to investing. 21 00:01:53.719 --> 00:01:57.640 You understand there's a lot of risk out there, even if you've been 22 00:01:57.640 --> 00:02:00.840 in one of these stocks that have gone up one hundred, two hundred, 23 00:02:00.840 --> 00:02:05.640 three hundred points, because there could be a pullback at any time. So 24 00:02:05.760 --> 00:02:07.520 you might be staring at your portfolio and this is great, But if you 25 00:02:07.520 --> 00:02:14.439 don't trim back, if you don't take some profits, then it pulls back. 26 00:02:14.639 --> 00:02:17.240 Then you're in that mode of oh wow, I have to sit and 27 00:02:17.280 --> 00:02:20.199 wait. I gotta wait for a good bad If it gets back, they'll 28 00:02:20.240 --> 00:02:24.560 sell. Don't do that. Sell a little bit and be upset if it 29 00:02:24.599 --> 00:02:29.280 goes higher with yourself. But then you still remember, oh I still have 30 00:02:29.400 --> 00:02:34.240 some you got one hundred shares, come back to seventy five, you got 31 00:02:34.240 --> 00:02:38.680 five hundred shares, cut back to three point fifty. Just take a little 32 00:02:38.719 --> 00:02:42.960 off the table. If they have run and your allocation has exceeded what you 33 00:02:43.039 --> 00:02:51.599 really wanted to be at. What's interesting about these markets is that for some 34 00:02:51.680 --> 00:02:58.520 reason, the media keeps saying that everyone wants a rate cut from the Fed. 35 00:02:58.560 --> 00:03:02.719 That's why we're going higher the rate cut. And they expected four of 36 00:03:02.719 --> 00:03:07.120 them, six of them, eight of them this year. And I've said 37 00:03:07.159 --> 00:03:10.120 from the beginning of the end of last year in the beginning of this year, 38 00:03:10.159 --> 00:03:17.000 I don't see a rate cut. A rate cut would mean that we 39 00:03:17.120 --> 00:03:22.000 have a slowing economy, and the economics, to me have said, we 40 00:03:22.080 --> 00:03:25.840 aren't slowing, and if we don't need a rate cut, why try to 41 00:03:25.879 --> 00:03:32.879 stimulate inflation. And then the other day of Monday, last Monday, when 42 00:03:32.919 --> 00:03:39.919 they realize the CPI number came in very very hot, the markets fell off 43 00:03:42.000 --> 00:03:44.919 because they said, oh, they're not going to raise lower rates right away. 44 00:03:45.080 --> 00:03:49.479 Well, no kidding, and that's what they're waiting for. And they 45 00:03:49.520 --> 00:03:53.879 decide not to raise rates. I keep saying raising them, I mean lower 46 00:03:53.960 --> 00:03:59.000 rates, interest rates. Then what are people going to do? Say, 47 00:03:59.039 --> 00:04:00.199 oh, I got to get out of these stocks, and everybody leaves the 48 00:04:00.199 --> 00:04:05.520 party at the same time. That's why you trim, that's why you sell 49 00:04:05.639 --> 00:04:13.240 into these ridiculous rallies that you have in some of these stocks, especially the 50 00:04:13.240 --> 00:04:17.800 ones you know, aren't the kriminal, the clem, the best quality there, 51 00:04:18.360 --> 00:04:20.680 and you know those those are the apples that the meta is that the 52 00:04:20.720 --> 00:04:27.879 Googles and the vidiots. Okay, but there's ways to hedge those, and 53 00:04:27.920 --> 00:04:36.000 that's what we've been doing. You're in a situation where greed is gonna take 54 00:04:36.079 --> 00:04:44.439 over from fear. But if all of a sudden we start going the other 55 00:04:44.439 --> 00:04:46.839 way, the fear is gonna get greater than the greed and you're gonna have 56 00:04:46.879 --> 00:04:51.319 everyone leave. I always love to give this analogy. You know, you 57 00:04:51.319 --> 00:04:56.480 have a house, nice house, say thirty five hundred four thousand square feet, 58 00:04:56.639 --> 00:05:00.480 and you have a big party, and one hundred and fifty two hundred 59 00:05:00.519 --> 00:05:06.199 people show up at the party, and how do they get there? How 60 00:05:06.199 --> 00:05:12.160 do they come in? They all come through the front door because not everybody 61 00:05:12.560 --> 00:05:16.319 is coming in at the same time, so it's orderly. You're able to 62 00:05:16.360 --> 00:05:19.720 say hi, You're able to get a drink, They pass around food, 63 00:05:20.160 --> 00:05:25.199 everybody's mingling. You start filling up the other rooms, and you have a 64 00:05:25.279 --> 00:05:33.319 nice party going on. All of a sudden, something happens and everybody has 65 00:05:33.360 --> 00:05:39.160 to leave the party at the same time. Do you think you all can 66 00:05:39.199 --> 00:05:42.360 go through the same way you got there, through the front door. No 67 00:05:42.480 --> 00:05:46.720 way. People start jumping out of windows, they go through the back door, 68 00:05:46.720 --> 00:05:48.800 they go through the garage, they go through the front door. Everywhere 69 00:05:48.839 --> 00:05:50.839 you can get out, you get out. Well, think about that. 70 00:05:50.879 --> 00:05:57.879 With stocks. You go in orderly going up. But when people need to 71 00:05:57.879 --> 00:06:02.360 get out and they sell out, what happens. It just gets annihilated and 72 00:06:02.480 --> 00:06:05.439 goes down fast and furious, and fear goes in and says, oh, 73 00:06:05.480 --> 00:06:12.439 I got to get out. Relook at this another time, and you give 74 00:06:12.519 --> 00:06:15.920 up fifty hundred whatever points on. Some of these happen when they start turning 75 00:06:15.920 --> 00:06:23.920 down. That's why you have to trim as it goes higher. That's why 76 00:06:23.959 --> 00:06:28.079 you have to protect as it goes higher. And a three percent position turns 77 00:06:28.120 --> 00:06:30.839 into a six percent position or an eight percent position. You got to trim 78 00:06:30.879 --> 00:06:36.399 back to what you feel comfortable with when you made those allocations to begin with. 79 00:06:39.439 --> 00:06:44.079 That'll make you sell high and then have cash the by low. There's 80 00:06:44.120 --> 00:06:46.160 always going to be opportunities. People laugh when I say, oh it's going 81 00:06:46.240 --> 00:06:51.560 up, it's gonna don't be that fomo fear missing out guy. You hear 82 00:06:51.600 --> 00:06:57.480 that a lot lately, and I understand it because if you just turn on 83 00:06:57.560 --> 00:07:03.680 CNBC or Fox Business or whatever, CNN, whatever it is, they're talking 84 00:07:03.759 --> 00:07:11.600 about the market's going higher by looking at the indices, the underpinnings aren't there, 85 00:07:13.199 --> 00:07:15.319 and that's called the breath of the market, which means it's just a 86 00:07:15.319 --> 00:07:20.199 few stocks now and narrnas are going up, and that is inevitable to have 87 00:07:20.319 --> 00:07:25.519 a correction. Is a correction three percent, ten percent? I don't know 88 00:07:26.120 --> 00:07:30.360 until it happens. I know where support levels are, and they hold and 89 00:07:30.439 --> 00:07:32.600 turn those are good buying opportunities. I know if they break them where the 90 00:07:32.680 --> 00:07:39.360 next support level is. But you have to be protecting yourself as the markets 91 00:07:39.399 --> 00:07:45.279 go higher, not exactly when they turn lower. You can anti your protection 92 00:07:45.399 --> 00:07:47.720 as it's going lower. You can sell off some stuff with the going lower, 93 00:07:47.920 --> 00:07:51.759 and then you get an average price which is higher than the price you're 94 00:07:51.759 --> 00:07:58.879 doing it. So, with the CPI number and the PPI number both coming 95 00:07:58.879 --> 00:08:03.000 in hotter than expect meeting, we have inflation on the horizon. Again, 96 00:08:03.519 --> 00:08:09.120 You're not going to see the federiza of lower interest rates, and now they 97 00:08:09.160 --> 00:08:13.399 say, well maybe in the summer, Well, things got to get pretty 98 00:08:13.439 --> 00:08:20.120 damn bad between now and the summer for them to lower interest rates. It 99 00:08:20.199 --> 00:08:24.800 could happen, because on the other side you had retail sales the worse you've 100 00:08:24.800 --> 00:08:28.480 seen. But I figured that was going to happen. That's why I said 101 00:08:28.519 --> 00:08:33.039 discrimina consumer discussionary is not an area to be in right now. Let them 102 00:08:33.080 --> 00:08:35.399 pull back. The reason being is people put a lot of money on credit 103 00:08:35.480 --> 00:08:41.240 cards for Christmas and wanted to enjoy themselves. The bills come due, and 104 00:08:41.279 --> 00:08:43.159 now they're like, Okay, I bought for Christmas. I'm not buying for 105 00:08:43.159 --> 00:08:48.320 a while until I reduce these credit card bills, especially with the interest that's 106 00:08:48.360 --> 00:08:54.879 on there. So if they don't raise if they don't lower interest rates going 107 00:08:54.919 --> 00:09:01.639 into the summer and people start talking, well we still have inflation. Are 108 00:09:01.679 --> 00:09:03.120 they gonna raise interest rates? I don't think they're gonna do that either. 109 00:09:05.360 --> 00:09:11.919 They start getting into the third quarter, they're not raising interest rates. Lowering 110 00:09:11.919 --> 00:09:15.279 interestrates. I can't believe. I keep saying lower interest rates. They're not 111 00:09:15.320 --> 00:09:20.080 gonna do that going into the election. I don't believe. Unless something happens 112 00:09:20.360 --> 00:09:26.879 and the economy absolutely weakens. They don't want to make a political issue out 113 00:09:26.919 --> 00:09:33.240 of lowing interest rates in an election year. But if some black Swan event 114 00:09:33.320 --> 00:09:35.799 happens and all of a sudden we dry up with liquidity, you can bet 115 00:09:35.799 --> 00:09:41.480 your bottom dollar they were lower interest rates. I just don't see it because 116 00:09:41.519 --> 00:09:46.960 I see the economy doing okay. Then on Friday, they were making all 117 00:09:46.000 --> 00:09:52.240 these excuses about the CPI and the PPI just keep making excuses. The question 118 00:09:52.480 --> 00:09:58.840 is if they came in lower than expected, would they use the same excuses 119 00:10:00.120 --> 00:10:03.679 seasonality and this and that to say, well, maybe they shouldn't be coming 120 00:10:03.720 --> 00:10:09.320 down as much. No, they want to put out a rhetoric that tells 121 00:10:09.399 --> 00:10:16.159 you that things are really good. They don't want to tell you the truth. 122 00:10:18.159 --> 00:10:22.440 And as we've realized over the years, the government just does not tell 123 00:10:22.440 --> 00:10:30.120 you the truth. So I'm going to tell you the truth. These numbers 124 00:10:30.200 --> 00:10:35.759 show exactly what I thought was going on. Inflation has not gone away. 125 00:10:35.919 --> 00:10:41.759 It's still there. And how do I know that. I see the bills, 126 00:10:43.799 --> 00:10:48.240 I pay the bills. I see the grocery bills. I see the 127 00:10:48.279 --> 00:10:54.759 water bills, the electric bills, the gas bills. I see the gasoline 128 00:10:54.759 --> 00:11:01.919 prices. Sure they're down, but the way up. The average family might 129 00:11:01.960 --> 00:11:05.519 have gotten a little bit of a bump in their salary, which is creating 130 00:11:05.879 --> 00:11:11.600 the inflation, but nowhere enough is it giving you the opportunity to take advantage 131 00:11:13.080 --> 00:11:20.440 of where prices are. So we are in a quandary where people do not 132 00:11:20.519 --> 00:11:22.639 have enough money. So then they start spending on things that they wanted to 133 00:11:22.759 --> 00:11:26.919 on credit cards, and credit card debt has risen. Interest rates on those 134 00:11:28.000 --> 00:11:35.039 have risen to where it's making it almost impossible for the average family to get 135 00:11:35.080 --> 00:11:46.080 ahead. These are important things to understand when you're investing, and it's a 136 00:11:46.159 --> 00:11:50.799 difficult thing because, let's face it, guys, you don't want to miss 137 00:11:50.799 --> 00:11:54.000 out. You want to make the money, but you don't want to lose. 138 00:11:54.200 --> 00:12:00.759 It's impossible to do both. What's possible is to allocate and be concerned 139 00:12:01.480 --> 00:12:05.480 about the things that are out there, but stay invested in areas that you 140 00:12:05.600 --> 00:12:09.519 think are the leading edge of where we're going. So when I look at 141 00:12:09.559 --> 00:12:13.639 what's going on, do I want to be in consumer discretion right now? 142 00:12:13.679 --> 00:12:18.399 No, because I don't think the consumer is going to increase their spending until 143 00:12:18.440 --> 00:12:22.240 they start lowering the debt. Now the lower interestrates that will help. Of 144 00:12:22.320 --> 00:12:28.039 course, UNTWOL prices come down. I don't see consumers buying. We are 145 00:12:28.080 --> 00:12:37.240 a consumer oriented economy. Consumers must buy for us to grow. Earnings have 146 00:12:37.360 --> 00:12:39.000 been good and they're going to continue to be good and get better. You 147 00:12:39.039 --> 00:12:48.879 know why. Artificial intelligence, robots, there's the future. We're in the 148 00:12:48.960 --> 00:12:56.000 stage right now. I believe in my life this is the last big stage 149 00:12:56.360 --> 00:13:01.519 of change that we're going to see on how we just do everyday stuff. 150 00:13:03.840 --> 00:13:09.519 Our first one was in the nineties, as the computers were coming through and 151 00:13:09.519 --> 00:13:13.559 they got better and better and faster and faster, and opportunities arose and you 152 00:13:13.600 --> 00:13:16.679 were able to go ahead and do so much with that and the Internet. 153 00:13:18.639 --> 00:13:24.360 The next big movement was when they took all that and put it on our 154 00:13:24.240 --> 00:13:31.720 smartphones, and our smartphones were able to give us the opportunity to do everything 155 00:13:31.759 --> 00:13:35.519 we do and on these big computers in our health held hand, we can 156 00:13:35.600 --> 00:13:39.200 google anything, we do anything we want. Well, then, obviously, 157 00:13:39.360 --> 00:13:45.120 along with the good became the bad, and a lot of social media is 158 00:13:45.240 --> 00:13:50.720 false, fake and made up, and you have to disseminate between the truth 159 00:13:50.759 --> 00:13:54.120 and the bad, and a lot of people can't do that. And now 160 00:13:54.159 --> 00:13:58.639 in this next stage, and you hear about it all the time, AIAIAI. 161 00:14:01.679 --> 00:14:07.159 It's not going away, and it can be dangerous, but I'm gonna 162 00:14:07.159 --> 00:14:15.120 focus on the positive of how it's going to change civilization. First of all, 163 00:14:15.200 --> 00:14:18.159 companies are not going to need as much as a labor force. So 164 00:14:18.320 --> 00:14:22.399 sure, we've raised up the prices, but if you're not going to hire 165 00:14:22.480 --> 00:14:28.720 more people because you have AI technology and robotics taking care of what humans used 166 00:14:28.759 --> 00:14:31.440 to do, you don't need as many and over time, that's going to 167 00:14:31.519 --> 00:14:39.679 be a lot to the bottom line. Number Two, AI is going to 168 00:14:39.799 --> 00:14:46.240 change the medical field, the manufacturing field, the gaming field, the entertainment 169 00:14:46.320 --> 00:14:54.240 field, the automobile field, industry. I should say every one of those 170 00:14:54.279 --> 00:15:00.120 are going to change for the better. And it's not just the companies that 171 00:15:00.159 --> 00:15:03.039 are at the forefront, these big ones, they're gonna still be growing because 172 00:15:03.039 --> 00:15:09.159 of this AI. It's the companies that are supplying the apples and the MICROSOFCE 173 00:15:09.240 --> 00:15:13.080 and everyone else. And that's where I have to tell you you gotta be 174 00:15:13.200 --> 00:15:18.240 careful. Every Tom, Dick and Harry is going to try to sell you 175 00:15:18.639 --> 00:15:24.399 the next AI. That's gonna be Microsoft or Google or Amazon or you name 176 00:15:24.440 --> 00:15:31.360 it. Stay away even if it is stay away unless you do your homework. 177 00:15:33.480 --> 00:15:37.720 Find the ones that actually got contracts with the microsofce the Googles and stuff. 178 00:15:37.840 --> 00:15:45.120 Don't take somebody's word for it. This is we are looking for growth 179 00:15:45.159 --> 00:15:48.320 companies for our growth oriented people. We're looking for opportunities. Of these, 180 00:15:48.799 --> 00:15:52.960 you buy three to four or five of them, hopefully two of them are 181 00:15:52.960 --> 00:15:56.879 big, two of them are neutral, and you'll probably lose on one, 182 00:15:56.080 --> 00:16:03.080 but you don't put a lot of money usify allocate. But we're looking for 183 00:16:03.120 --> 00:16:07.639 the opportunities and good quality. Are the companies that are already making money that 184 00:16:07.679 --> 00:16:11.000 people don't know about, that we can hold for the next one two, 185 00:16:11.120 --> 00:16:22.200 three years, that are gonna benefit from this boom. Excuse me. That's 186 00:16:22.200 --> 00:16:26.440 where you got to be looking to try to make some money while keeping the 187 00:16:26.480 --> 00:16:34.919 great quality stocks. And it's not just like in you know, Microsoft and 188 00:16:36.000 --> 00:16:41.039 Google and Amazon and all they're the forefront. It's in companies even like deer 189 00:16:44.200 --> 00:16:49.279 deer is going to automate with AI. All the machines and how you how 190 00:16:49.279 --> 00:16:52.159 do you do farming, how do you do construction? How do you do 191 00:16:52.240 --> 00:16:57.919 things? It's on the forefront. There's things that we can't even think about. 192 00:16:57.960 --> 00:17:00.759 So many people think of A is just being the vision pro and all 193 00:17:02.000 --> 00:17:06.200 and the and the and the meta meta uh verse. That's part of it. 194 00:17:07.559 --> 00:17:14.279 And that's entertainment. And I promise you entertainment's gonna change. The movie 195 00:17:14.279 --> 00:17:17.759 theaters are gonna change. The way we watch TV is gonna change. Everything 196 00:17:17.799 --> 00:17:23.160 we do is gonna change. We're in the in the beginning stages of a 197 00:17:23.200 --> 00:17:27.359 ball game that's gonna probably last for the next five, six, seven, 198 00:17:27.440 --> 00:17:36.200 ten years. There'll be downs, they'll w ups. Think about going back 199 00:17:36.240 --> 00:17:40.960 to the computers. You had the ibms, you had Compact computer, you 200 00:17:41.039 --> 00:17:44.559 got Apple that had fits and starts, so it really made it. And 201 00:17:44.599 --> 00:17:48.440 you had Dell computer that went up and then almost went out, became private, 202 00:17:48.519 --> 00:17:51.920 came back on. That's the hardware. We got rid of the hard 203 00:17:52.000 --> 00:17:56.720 The hardware isn't the important part. Everyone still needs that, but those are 204 00:17:56.720 --> 00:18:04.000 commodities now. It's the leading edge of the software. Is what makes Microsoft 205 00:18:04.119 --> 00:18:11.839 so great. It's the cloud that made Amazon and Google so great. It's 206 00:18:11.880 --> 00:18:15.759 the AI that they're using for all this stuff of gathering information. So who 207 00:18:15.839 --> 00:18:21.920 are the companies making the servants who the company's doing all these things for these 208 00:18:21.960 --> 00:18:26.440 great companies. That's what we're looking for. That's where we're trying to go 209 00:18:27.319 --> 00:18:33.799 along with the good companies and allocating. And now you know what, you 210 00:18:33.799 --> 00:18:37.200 can get over four something percent on government bonds. They were up over five 211 00:18:37.279 --> 00:18:41.799 or something of four percent. We haven't been able to get that in so 212 00:18:41.200 --> 00:18:47.079 long other than the last year and a half two years. So you can 213 00:18:47.200 --> 00:18:52.680 actually building bond ladders with good corporates and treasuries that you haven't been able to 214 00:18:52.680 --> 00:18:56.839 do, and you can build them in for three, four, five, 215 00:18:56.920 --> 00:19:02.759 six, seven years. Then there's other tactics you can use with it. 216 00:19:02.799 --> 00:19:07.400 In case the industrates do come down, you extend out the TLT that will 217 00:19:07.440 --> 00:19:14.640 go up in appreciation, whether that's US government bonds and the ETF strategies are 218 00:19:14.680 --> 00:19:19.960 important in these markets. Understanding how to mitigate mitigate risk is important after you 219 00:19:21.039 --> 00:19:26.279 put that whole plan together. I know some people don't think they need a 220 00:19:26.319 --> 00:19:30.839 plan. I was one of them two a four or five years ago, 221 00:19:33.279 --> 00:19:34.440 and a light bulb went off and said, if you have a plan, 222 00:19:34.480 --> 00:19:40.640 that makes managing the money that much easier because you know how much income you 223 00:19:40.720 --> 00:19:44.559 got to bring to people. You know exactly how much growth if it's there, 224 00:19:44.680 --> 00:19:47.359 so they can go ahead and take the risk. You know what their 225 00:19:47.440 --> 00:19:52.119 risk tolerances are. You know, if they're getting money off of other investments. 226 00:19:52.480 --> 00:19:56.240 Their pensions is social security when it takes social security, Hey, we're 227 00:19:56.279 --> 00:20:00.400 getting closer and closer for the people that are six A sixty three years old 228 00:20:00.640 --> 00:20:04.480 that by the time you get your Social Security at full retirement age, your 229 00:20:04.559 --> 00:20:08.319 mind's wait to seventy because if you're gonna have to be sixty eight and changed, 230 00:20:08.440 --> 00:20:15.839 your might a's wait to seventy and get the maximum mount. And then 231 00:20:15.839 --> 00:20:21.200 we're gonna have to do tax planning. Here, remember what's coming up. 232 00:20:23.039 --> 00:20:30.359 If they do not go ahead, and and and and and the with the 233 00:20:30.400 --> 00:20:36.240 Trump tax cuts coming up in a year, what is a year? I 234 00:20:36.279 --> 00:20:41.559 think they have to either extend them, make them permanent, or they go 235 00:20:41.640 --> 00:20:48.680 away. Well, the biggest one in there is your state planning. Everyone's 236 00:20:48.759 --> 00:20:53.000 net worth has been going up and right now it sits a twelve million per 237 00:20:53.000 --> 00:20:56.319 person, So that's pretty good. You have over twenty four million dollars, 238 00:20:56.359 --> 00:21:00.799 then you have to pay a state taxes. They can go all the way 239 00:21:00.880 --> 00:21:04.039 back down to six million, five million, and I heard talk about one 240 00:21:04.079 --> 00:21:11.440 million dollars a person. If Biden gets back in not to mention the tax 241 00:21:11.559 --> 00:21:15.240 brackets will go up. Then what are they going to be doing when they 242 00:21:15.319 --> 00:21:18.960 start looking for more taxes? Because now with AI and we don't need the 243 00:21:19.039 --> 00:21:25.880 biggest workforce labor as you know, has been an unemployment around three and a 244 00:21:25.920 --> 00:21:30.920 half to three point nine percent for the last five years, what are we 245 00:21:30.920 --> 00:21:38.279 gonna do. There's no taxation on robots. In fact, they're probably getting 246 00:21:38.319 --> 00:21:45.599 depreciation. So if you're go to don't sit there and tell us, well, 247 00:21:45.599 --> 00:21:48.720 the rich don't pay when you're allowing them to have all these tax breaks. 248 00:21:49.039 --> 00:21:56.119 But what I'm afraid of going down the road them going ahead and saying, 249 00:21:56.200 --> 00:21:59.279 yeah, you can put money away in your four one k planned but 250 00:21:59.319 --> 00:22:04.680 it's not gonna be tax deduction anymore. Now, that's not gonna be good. 251 00:22:07.039 --> 00:22:10.160 That will raise a lot of money for the government to be able to 252 00:22:10.160 --> 00:22:14.400 pay for Social Security because you know, in ten years the money that is 253 00:22:14.519 --> 00:22:21.720 estimated to flow through it is only seventy seven percent of what Social Security be 254 00:22:21.799 --> 00:22:27.119 for be there because people living longer, people living longer. So unless you 255 00:22:27.119 --> 00:22:30.599 want to have to wait till your seventy five years old. To even get 256 00:22:30.680 --> 00:22:34.200 Social Security, they're gonna have to make some changes. And the only way 257 00:22:34.240 --> 00:22:37.920 that is is ConA go ahead and say I'm not raising your taxes, but 258 00:22:37.960 --> 00:22:42.720 they're gonna become creative in raising your taxes by taking away things that you don't 259 00:22:42.759 --> 00:22:48.079 pay taxes on. And the four to one K retirement market could be one 260 00:22:48.119 --> 00:22:51.519 of them, because it's huge, not that you can't put the money in 261 00:22:51.720 --> 00:22:56.799 and not that it can't go ahead and grow tax deferred, okay, and 262 00:22:56.839 --> 00:23:00.119 then you only pay on the money that you would actually be making. And 263 00:23:00.200 --> 00:23:03.599 later on it would be almost set up like an annuity. When you buy 264 00:23:03.640 --> 00:23:08.519 an annuity that comes from taxable dollars, but when the money's in the annuity, 265 00:23:08.519 --> 00:23:12.200 you do not pay any taxes on it until you take the money out, 266 00:23:12.519 --> 00:23:17.200 and it's only the money you made you gained is the money that you 267 00:23:17.279 --> 00:23:21.160 have to pay taxes on, not the initial principle. So if you have 268 00:23:21.200 --> 00:23:22.759 a four one K plan that you put a half a million bucks in, 269 00:23:23.039 --> 00:23:26.079 it grows to a million, you're only going to pay taxes when you take 270 00:23:26.119 --> 00:23:30.240 out that million, that five hundred thousand, not the first five hundred thousand 271 00:23:30.880 --> 00:23:34.079 because they're going to try to tax that beforehand. These are all things that 272 00:23:34.119 --> 00:23:40.920 are on the table that we have to be concerned about. Taxation, mitigating 273 00:23:41.000 --> 00:23:45.640 taxes, mitigating estates is coming up and it's going to be very important, 274 00:23:45.839 --> 00:23:49.400 and that's one of the reasons I partnered it up with the Johnson Group Accountants. 275 00:23:51.279 --> 00:23:53.480 Okay, and I partnered up also in our office, as you know, 276 00:23:53.559 --> 00:23:59.599 with Jonathan Sabilia, who does all our state planning. It's very important 277 00:23:59.799 --> 00:24:04.000 a part of the planning we do that we have people in my office that 278 00:24:04.079 --> 00:24:07.440 are able to work with every one of our clients and we're able to work 279 00:24:07.480 --> 00:24:15.400 with their clients to give them the best possible outcome mitigating risk, mitigating taxation, 280 00:24:15.720 --> 00:24:18.880 and mitigate their state plan. We'll be right back. We appreciate you 281 00:24:18.960 --> 00:24:25.119 listening. This is Dean Greenberg and this is the Money Matty Show. Welcome 282 00:24:25.119 --> 00:24:26.720 back, everybody. This is Dean Greenberg. This is Money Matty Show. 283 00:24:26.720 --> 00:24:30.000 I got Dylan, I got Todd, and I got to see Bostin here 284 00:24:30.039 --> 00:24:34.039 filling in for Dave today. Good morning, guys, Good morning. So 285 00:24:34.119 --> 00:24:37.599 this week we had the Dow down just slightly, SMP down slightly as well, 286 00:24:37.599 --> 00:24:41.519 and NASDAK led the way down at one point three, but the russell 287 00:24:41.039 --> 00:24:47.160 up one point one and the e upero point seven percent. So a reversion 288 00:24:47.200 --> 00:24:51.440 of what we've seen predominantly this year and last year, actually having the equited 289 00:24:51.759 --> 00:24:56.880 outpace the S and P five hundred. No comments that, all right, 290 00:24:56.920 --> 00:25:00.359 so we'll keep going so on the month, though obviously the RSP is still 291 00:25:00.359 --> 00:25:03.559 trailing S and PN. On the year, the RSP is only one point 292 00:25:03.599 --> 00:25:07.559 four versus five percent year to date for the S and P five hundred. 293 00:25:07.599 --> 00:25:11.000 So all in all, we are still seeing the Mega seven being taking over. 294 00:25:11.200 --> 00:25:14.319 But this week we've seen a little reversal. Well. We had the 295 00:25:14.759 --> 00:25:18.400 we had the CPI number come in hot on Monday, and then on Friday 296 00:25:18.400 --> 00:25:19.960 we had the PPI number come in hot. But then we had the retail 297 00:25:21.000 --> 00:25:25.599 sales come in low unexpected. We had housing starts, gifts get annihilated. 298 00:25:25.839 --> 00:25:29.359 All right, So there's there's numbers on both sides here, and the market 299 00:25:29.400 --> 00:25:32.240 does exactly what he does at time. It goes down and comes back and 300 00:25:32.240 --> 00:25:34.279 then it flounders. What we saw with the retail sales coming in lower than 301 00:25:34.359 --> 00:25:40.000 expectations, but at higher CPI and a higher PPI shows that services sector was 302 00:25:40.039 --> 00:25:45.279 really what caused inflation to increase so much, obviously goods when it is not 303 00:25:45.400 --> 00:25:48.400 the reason because we had such a low retail sales that came in. So 304 00:25:48.640 --> 00:25:52.200 the services sector is what's driving the inflation. But yeah, we talk about 305 00:25:52.200 --> 00:25:56.400 the Fed here, what a position they're putting themselves in because they came into 306 00:25:56.440 --> 00:26:00.960 this year three or four rate cuts and that's actually what the Fed members priced 307 00:26:00.000 --> 00:26:03.640 in the market thought five or so on the dot plots. On the dot 308 00:26:03.680 --> 00:26:07.720 plots, they that's what they were projected, talking about three for the year. 309 00:26:07.880 --> 00:26:11.400 Yeah, but you know the market was kind of four and some crazy 310 00:26:11.440 --> 00:26:15.279 people think five or six, right, and so all. And although at 311 00:26:15.279 --> 00:26:19.039 this point it's more and more likely that they're just gonna keep holding. I 312 00:26:19.039 --> 00:26:23.759 mean, you really have to see inflation not increasing right for them to even 313 00:26:23.880 --> 00:26:29.839 consider cutting rates, and we're not even close to that. Ism, Manufacturing, 314 00:26:29.839 --> 00:26:33.960 im services, they all stay strong right now. The economy is slowly 315 00:26:33.079 --> 00:26:37.720 deteriorating, but it's not deteriorating, but it's not really Okay. The tail 316 00:26:37.759 --> 00:26:41.480 sales was way down. Why because we all saw in December that they bought 317 00:26:41.519 --> 00:26:45.680 more someth than they needed to because they were in a happy mood. Okay, 318 00:26:45.759 --> 00:26:48.240 markets were going up, everybody was happy. Let's put it on credit 319 00:26:48.240 --> 00:26:51.319 card. Well, guess what when you get your credit card bill in January, 320 00:26:51.359 --> 00:26:52.440 what do you have to do? You got to pay it. So 321 00:26:52.480 --> 00:26:55.599 when you have to pay it, what do you do? You stop buying? 322 00:26:56.000 --> 00:26:57.400 Yeah, and I mean it's also you're buying all the gifts and everything 323 00:26:57.400 --> 00:27:00.279 for the holidays, anything else you might need for the hot all day. 324 00:27:00.319 --> 00:27:02.759 So when January comes said, okay, I got to tighten up a little 325 00:27:02.759 --> 00:27:04.400 bit. Regardless of if they have stuff, they just want to tighten up 326 00:27:04.400 --> 00:27:08.400 and not pay as much. And rates increased a lot throughout the week because 327 00:27:08.440 --> 00:27:12.000 of those high inflation reports. We have the two year at four to six 328 00:27:12.079 --> 00:27:15.799 and the ten year is at four to two. Now the one years almost 329 00:27:15.880 --> 00:27:18.359 back to five handle, so we've definitely seen a big increase. The inversion 330 00:27:18.519 --> 00:27:23.000 has continued to widen on that two ten year spread, so we're not out 331 00:27:23.000 --> 00:27:26.400 of the woods yet when it comes to the inversion. Oil was up this 332 00:27:26.480 --> 00:27:30.160 week. It's now at seventy eight dollars. Barrel gold was down twelve dollars 333 00:27:30.359 --> 00:27:37.400 to twenty twelve, and ounce gold really hasn't done much of anything because bitcoin 334 00:27:37.480 --> 00:27:40.599 is taken over right now. It had an exciting week, it did. 335 00:27:40.759 --> 00:27:44.640 I hear a lot of people saying this is the one more big move up 336 00:27:44.680 --> 00:27:48.279 and legan bigcoin. I remember hearing that last time it was in the fifty 337 00:27:48.359 --> 00:27:52.039 thousand dollars range and stuff, and boom, next thing we saw it was 338 00:27:52.119 --> 00:27:55.119 what ten twelve, seven thousand. Yeah, I appreciate. I don't think 339 00:27:55.160 --> 00:27:57.640 that's going to happen because the ets and now with it well, I mean, 340 00:27:57.640 --> 00:28:00.160 if you remember back in twenty seventeen when we first talked about bitcoin, 341 00:28:00.200 --> 00:28:03.039 when you were actually my lacrosse coach at the time, it was at seven 342 00:28:03.039 --> 00:28:06.240 thousand, and it ran up to twenty and then guess what, plumbed it 343 00:28:06.279 --> 00:28:08.359 all the way down the three thousand. Then that next Bowl run it went 344 00:28:08.359 --> 00:28:11.319 from three thousand to sixty four thousand, pim all the way back down to 345 00:28:11.319 --> 00:28:15.160 twelve thousand. Now we're back up to fifty thousand. Are we going to 346 00:28:15.200 --> 00:28:19.000 continuously do this trend of this could be on in bitcoin too, and it 347 00:28:19.039 --> 00:28:23.759 could be the start of something. I don't know. I know this for 348 00:28:23.799 --> 00:28:27.759 the last year, all we've been hearing about is we'll getting rid of the 349 00:28:27.799 --> 00:28:33.640 dollar, didge a little currency. Have you seen the increase of people buying 350 00:28:33.680 --> 00:28:38.240 the dollar in in our currency and the bonds. Well, if that was 351 00:28:38.279 --> 00:28:42.359 if they thought that it was going away, trust me, China and Japan 352 00:28:42.480 --> 00:28:48.680 and all these other countries wouldn't be going in and having buying record amounts of 353 00:28:48.240 --> 00:28:52.359 our currency and our debt. Yeah, we've talked about this multiple times. 354 00:28:52.400 --> 00:28:56.880 Anyone who actually think there's a threat to the US dollar doesn't really understand how 355 00:28:56.880 --> 00:28:59.519 the system works. At the end of the day, what really backs our 356 00:28:59.559 --> 00:29:03.160 dollar would is what most people's arguments on why we're potentially gonna lose our world 357 00:29:03.160 --> 00:29:07.680 reserve currency. The reason we have the world deserve currency is one thing our 358 00:29:07.720 --> 00:29:11.279 military. We have the strongest military and we put the most money into our 359 00:29:11.279 --> 00:29:15.200 military as well. With that, I want to give a warning to people. 360 00:29:15.359 --> 00:29:18.599 Okay, there's a couple of things. You're gonna be out there and 361 00:29:18.759 --> 00:29:21.559 people are gonna be sending you emails, they're gonna get you on the phone, 362 00:29:21.599 --> 00:29:23.599 they're gonna talk to you, and you're gonna have different things. The 363 00:29:23.680 --> 00:29:27.599 AI boom, Be careful. Everything isn't gonna be the next Amazon, Google, 364 00:29:27.680 --> 00:29:33.359 Apple law on the video number one. Number two, don't get sucked 365 00:29:33.400 --> 00:29:36.759 into this gold because the world is coming to an end by gold. Because 366 00:29:36.799 --> 00:29:38.480 if they have your gold in your iora and this comes to the world and 367 00:29:38.519 --> 00:29:42.160 it's hard asset, I promise you that guy will risk everything he has because 368 00:29:42.200 --> 00:29:45.279 there is nothing left to take your gold and go wherever he's gonna go. 369 00:29:45.440 --> 00:29:48.519 That's the funniest thing about the IRA is who cares it's in an IRA? 370 00:29:48.640 --> 00:29:52.279 If the world's ending, it's not real? What exactly you don't have it, 371 00:29:52.279 --> 00:29:55.519 it's not in your hands. They ain't giving it to you. There's 372 00:29:55.559 --> 00:29:57.039 no rules at that point. To that point, Dane, we had a 373 00:29:57.119 --> 00:30:00.200 question written in this week. If you guys ever need a question answered, 374 00:30:00.200 --> 00:30:03.279 you could write it in. It's a contact at Greenbrik Financial dot com. 375 00:30:03.319 --> 00:30:06.880 Reagan asked, I've been seeing a lot of commercials out there trying to sell 376 00:30:06.920 --> 00:30:10.680 gold and other precious metals. Is now a good time to buy these sorts 377 00:30:10.680 --> 00:30:12.960 of assets? Then you kind of just answered that, well, my first 378 00:30:14.000 --> 00:30:17.160 thing doesn't fit in with your with your allocation? Is that what you need? 379 00:30:17.720 --> 00:30:19.359 Okay? Is that what you want? If you want protection, there's 380 00:30:19.400 --> 00:30:23.519 other ways to protect your your your your your investments. Okay, But if 381 00:30:23.519 --> 00:30:26.200 that's what you think, and that's what you want having a small position, 382 00:30:26.240 --> 00:30:30.759 and it is fine. What I'm saying is he's every time these commercials come 383 00:30:30.799 --> 00:30:33.839 on, every time that people talk about him, it always tops out at 384 00:30:33.839 --> 00:30:37.000 someplace. But the biggest one right now is let us hold your gold for 385 00:30:37.119 --> 00:30:41.000 you. I'm telling you that guy doesn't know who the hell you are. 386 00:30:41.319 --> 00:30:45.319 He's going to take your gold if it's that damn da in the in the 387 00:30:45.400 --> 00:30:48.400 in the company, if they have it in a safe someplace like they say 388 00:30:48.440 --> 00:30:52.279 they do, we have your hot assets, because you can't hold it. 389 00:30:52.279 --> 00:30:55.000 It's got to be with an io a company. Those things are not going 390 00:30:55.039 --> 00:30:56.920 to be there. And then the AI stuff you got to worry about. 391 00:30:57.279 --> 00:31:00.640 And then the uh well was the other thing we talked, but just now 392 00:31:00.759 --> 00:31:06.799 I thought me too. No, it was mainly Golden AI you're talking about, 393 00:31:07.279 --> 00:31:07.920 and there are I mean. And also, I mean, going back 394 00:31:07.920 --> 00:31:11.359 to your point on not everything's going to be a home run. It's in 395 00:31:11.519 --> 00:31:14.039 recent history. I mean, if you're around in the dot com bubble, 396 00:31:14.039 --> 00:31:15.480 there was a lot of those companies that went out of business when everything was 397 00:31:15.519 --> 00:31:19.000 going up. They couldn't stand they couldn't last. But in more recent it's 398 00:31:19.000 --> 00:31:22.640 that twenty twenty boom, whenever all the spacks came out. We had all 399 00:31:22.640 --> 00:31:27.720 these companies that just exploded anytime they went anytime they went public, they just 400 00:31:29.000 --> 00:31:30.519 exploded about one hundred percent, and everybody thought, Okay, they're never going 401 00:31:30.559 --> 00:31:33.640 to go down, because at that point they didn't. But now a lot 402 00:31:33.640 --> 00:31:37.119 of those companies that aren't making any money, that are just shouldn't have ever 403 00:31:37.160 --> 00:31:41.559 really gone public. They just it was part of the craze are now back 404 00:31:41.559 --> 00:31:44.680 down to their evaluations being a penny stock and not a good company. And 405 00:31:44.720 --> 00:31:45.960 people think that they're going to come all the way back because at one point 406 00:31:47.000 --> 00:31:49.720 they were seven dollars a share. It's not necessarily true likely to go out 407 00:31:49.720 --> 00:31:52.240 of business because they're not a good company and they should have never gone public. 408 00:31:52.400 --> 00:31:56.319 You know, Dean, we were talking today about AI and the fact 409 00:31:56.359 --> 00:32:00.000 that a lot of these companies who are purchasing AI and building out these AI 410 00:32:00.119 --> 00:32:02.400 fronts, they're not profitable yet. There's no money coming into the business from 411 00:32:02.440 --> 00:32:07.599 these AI business But what people are benefiting on AI right now are the suppliers, 412 00:32:07.960 --> 00:32:10.039 the people who supply the AI chips. Those are the companies that, 413 00:32:10.119 --> 00:32:13.680 regardless of if AI works are not, they're going to be making money. 414 00:32:13.880 --> 00:32:17.599 Those AI companies that are coming up that actually cutting edge. Every venture capital 415 00:32:17.640 --> 00:32:22.440 firm knows who they are, and they're already getting brought up as private companies 416 00:32:23.000 --> 00:32:28.160 and then being sold out and not going public itself. The ones that have 417 00:32:28.200 --> 00:32:32.640 won public are usually not being brought public by the big institutions who can support 418 00:32:32.680 --> 00:32:37.400 them. They need capital. They don't have venture capital people who do it, 419 00:32:37.640 --> 00:32:39.759 and it's smaller brokeage firms that to bring them then and then sell the 420 00:32:39.839 --> 00:32:43.880 idea this is AI. It's a risk, but it's going to be there, 421 00:32:43.880 --> 00:32:45.559 you know. That's what we got to worry about. Yeah, and 422 00:32:45.559 --> 00:32:50.000 we have a lot of earnings reports that came out this week, you know. 423 00:32:50.240 --> 00:32:52.000 But further get into that, let's talk a little bit about super micro 424 00:32:52.039 --> 00:32:55.319 computer. I think this is a great example of what stocks can do. 425 00:32:55.759 --> 00:33:00.079 How you should be trimming these type of crazy stocks that really run. How 426 00:33:00.119 --> 00:33:05.000 to really I mean, talk a little bit about your experience with super microcomputer 427 00:33:05.119 --> 00:33:09.359 and kind of the story behind it. That's the story. We bought it. 428 00:33:09.599 --> 00:33:13.759 I bought it two weeks ago just to trade it with this is not 429 00:33:13.839 --> 00:33:16.039 a type of stock we buy for clients. No, okay, at five 430 00:33:16.119 --> 00:33:20.920 hundred and thirty five dollars. Two weeks later, I sold it at nine 431 00:33:21.039 --> 00:33:24.319 hundred and thirty nine hundred and eighty seven dollars. The very next day, 432 00:33:24.359 --> 00:33:29.440 I went to one thousand and seventy seven in the morning and then ended up 433 00:33:29.480 --> 00:33:34.839 the day at eight oh three. Okay. So if you are trading, 434 00:33:35.039 --> 00:33:38.279 that's one thing. If you're investing, it's another if you're putting too much 435 00:33:38.359 --> 00:33:40.319 money. To dude, like, oh yeah, if I bought it at 436 00:33:40.519 --> 00:33:43.720 six hundred, I got out an eight hundred, and I bought a thousand 437 00:33:43.720 --> 00:33:45.920 shares, I made two hundred grand. Well, first of all, that's 438 00:33:45.960 --> 00:33:51.119 six hundred thousand dollars you're putting up, okay to do that, And it's 439 00:33:51.160 --> 00:33:55.359 a very volatile stock, which ninety nine percent the portfolios do not have the 440 00:33:55.440 --> 00:33:59.519 risk tolerance for that, right, yeah, I mean, And last week 441 00:33:59.519 --> 00:34:01.359 alone, at one point it is up forty two percent. With that onenty 442 00:34:01.480 --> 00:34:05.920 seventy seven. It started the week at seven sixty one and then on Friday 443 00:34:06.079 --> 00:34:08.840 drop twenty percent. Another way to you know, to hedge around these type 444 00:34:08.840 --> 00:34:13.440 of huge positions that have gone up especially in taxable accounts where it matters. 445 00:34:13.840 --> 00:34:17.400 You can use inverse funds to help hedge some of yours without actually realizing that 446 00:34:17.480 --> 00:34:21.239 gain something like that. That's not an inverse fund. No, no, 447 00:34:21.239 --> 00:34:22.719 no, I'm just saying. I'm saying, to protect a position that you 448 00:34:22.800 --> 00:34:27.400 have that's run up a lot without necessarily selling it, you could have something 449 00:34:27.480 --> 00:34:30.360 like that in a protection setting. It's not going to be one for one 450 00:34:30.440 --> 00:34:32.559 on that particular stock. If you're buying that and it's doing that, you 451 00:34:32.679 --> 00:34:37.320 better not worry about paying taxes because otherwise, don't be in that type of 452 00:34:37.360 --> 00:34:39.159 stock. You make that type of money, you take it off, you 453 00:34:39.199 --> 00:34:42.079 trim it, you do it, and then if it pulls back, you 454 00:34:42.119 --> 00:34:45.519 can buy it again. All right, And that's exactly how you look at 455 00:34:45.519 --> 00:34:49.480 it. But that's a whole different ballgame than how you how you invest for 456 00:34:49.559 --> 00:34:52.960 the future. Right. Yeah, that's short term trading. That's not investing 457 00:34:52.960 --> 00:34:55.440 for your retirement. It was an investment that turned into a short term trade. 458 00:34:55.519 --> 00:34:59.480 Because anything that goes up four hundred and fifty points in two weeks, 459 00:34:59.519 --> 00:35:01.840 I'm taking. Yeah, you would have to. If you don't, then 460 00:35:02.159 --> 00:35:05.880 you're waiting for it to come back down. All right, Well, we're 461 00:35:05.880 --> 00:35:07.239 coming up on a break when we come back on this next ed, and 462 00:35:07.239 --> 00:35:10.880 we've got a lot of earning reports to run through, and finally we get 463 00:35:12.000 --> 00:35:14.199 that's the end of the earning season for the most part, and being in 464 00:35:14.239 --> 00:35:16.119 a video next week. So that's a big one that's gonna once not happened. 465 00:35:16.159 --> 00:35:20.199 Everyone's gonna look around and go, Okay, what do we do now? 466 00:35:20.239 --> 00:35:22.519 Where's the money gonna come from? And where are we gonna do it? 467 00:35:22.800 --> 00:35:25.480 And I'm telling you, smart money, it's not gonna keep propelling this 468 00:35:25.639 --> 00:35:30.840 higher because nobody wants to be that guy that board that stock at the all 469 00:35:30.920 --> 00:35:36.039 time high and watching it come down. So Trim, Trim, Trim. 470 00:35:36.159 --> 00:35:39.000 We'll be right back. I can't tell you how much we appreciate you're listening 471 00:35:39.199 --> 00:35:45.559 to The Money Matter Show. Welcome back, everybody, This is the Money 472 00:35:45.559 --> 00:35:49.559 Matter Show. Let's switch it up a little bit. We're gonna have Jonathan, 473 00:35:49.639 --> 00:35:52.440 our state planner, on first uh usually on the second hour, so 474 00:35:52.480 --> 00:35:57.840 maybe some of you don't know he's part of our team. He obviously brings 475 00:35:57.840 --> 00:36:00.159 a lot to the table with us, and every other week or so we 476 00:36:00.199 --> 00:36:04.800 have them on here to talk about what's going on, because I'm telling you, 477 00:36:05.239 --> 00:36:08.880 we don't get this. If the tax cuts, those Trump cut they 478 00:36:08.960 --> 00:36:14.280 leave, you're gonna be a busy man. That's right. Big sunset provision 479 00:36:14.280 --> 00:36:16.199 in a year and a half. Wow, a year and nine months, 480 00:36:17.559 --> 00:36:21.559 and you know things are gonna be crazy on your state planning side. I 481 00:36:21.559 --> 00:36:23.800 don't think it'll go all the way down. The ones I worry about as 482 00:36:23.800 --> 00:36:30.280 a business owner is the one the deduction that might might be gone, which 483 00:36:30.320 --> 00:36:34.880 is which is so basically, if you're self employed, you get a twenty 484 00:36:34.880 --> 00:36:38.440 percent haircut right off the net income. And that's that's nice for business owners 485 00:36:38.480 --> 00:36:42.519 because if you make a one hundred thousand dollars a year, it's an automatic 486 00:36:43.000 --> 00:36:49.400 twenty thousand dollars haircut on your net income. So hopefully Congress acts. I 487 00:36:49.480 --> 00:36:52.400 expect they do, depending on which administration. If Trump is in there, 488 00:36:52.480 --> 00:36:55.119 of course they're going to act. If not, you know that. I 489 00:36:55.159 --> 00:36:59.519 don't think the Democrats are going to want to be holding the bag of increased 490 00:36:59.559 --> 00:37:01.960 taxes. Okay, so you say neither way it's going to happen. I 491 00:37:01.960 --> 00:37:05.920 think it'll happen. Well, the tape, we can't go back and listen. 492 00:37:06.000 --> 00:37:07.719 I was gonna say, I'm like, who would hold the bag? 493 00:37:07.960 --> 00:37:14.159 I mean in the past when they have increased taxes, Well, they don't 494 00:37:14.239 --> 00:37:19.960 increase taxes necessarily flat. They've never increased taxes, yeah back in nineteen twenty 495 00:37:20.039 --> 00:37:22.760 something, but they haven't had a flat across the board increased to get blasted 496 00:37:22.800 --> 00:37:27.400 for that one. Yeah, you're saying since nineteen twenty taxes, I haven't 497 00:37:27.400 --> 00:37:31.039 said. So the way we have modified our tax over the past what fifty 498 00:37:31.119 --> 00:37:36.400 years, we've only had to be more progressive, meaning less flat tax We'll 499 00:37:36.519 --> 00:37:38.480 people, We'll give you that one. Well, there was the nineteen eighty 500 00:37:38.519 --> 00:37:44.920 six nineteen eighty six tax reform, which basically changed the entire tax code, 501 00:37:44.920 --> 00:37:49.159 which made it so difficult for US tax guys to deal with actual taxes. 502 00:37:49.480 --> 00:37:52.159 And then there was a Trump tax cuts. Those are the two big tax 503 00:37:52.199 --> 00:37:54.079 reformations. Of course, there's little you know. They're going to increase taxes 504 00:37:54.079 --> 00:37:57.559 here, they're going to crease taxes there. But the major reformations were in 505 00:37:57.599 --> 00:38:01.599 twenty seventeen and nineteen eighty six. Loophole would you change clothes right now? 506 00:38:02.519 --> 00:38:08.599 To bring in more taxes? Oh? What was it called? The carried 507 00:38:08.639 --> 00:38:12.760 interest? There you go explain to people what that is. Well, it 508 00:38:12.840 --> 00:38:15.280 is actually kind of hard to explain. That's why it never goes away. 509 00:38:15.480 --> 00:38:21.320 So you you know, long story short, you know these hedge funds, 510 00:38:21.400 --> 00:38:23.639 these guys that are making all this money, these billions and billions of dollars, 511 00:38:23.679 --> 00:38:28.480 they're paying twenty percent on their income, whereas you and I would be 512 00:38:28.480 --> 00:38:31.239 paying. And that's because by it goes into they don't get paid a salary. 513 00:38:31.360 --> 00:38:35.719 W Two, it goes and buy shares and then they sell their shares 514 00:38:35.760 --> 00:38:40.159 off that are long term gains exactly. It's all their work is considered capital 515 00:38:40.159 --> 00:38:45.199 gains, whereas and it's their day to day job, just like we have. 516 00:38:45.320 --> 00:38:47.760 They should be paying top percentage, just like everybody else, you know. 517 00:38:49.079 --> 00:38:51.719 And so that's one of the big ones. Trump promoted that back in 518 00:38:51.719 --> 00:38:55.280 twenty seventeen. Who's the Christen cinema? She wanted to get rid of it, 519 00:38:55.320 --> 00:38:59.320 and then for some reason she didn't want to get rid of was she's 520 00:38:59.320 --> 00:39:00.679 the one that says keep it. Well, she's the one that said keep 521 00:39:00.719 --> 00:39:04.960 it exactly and then now what we we And I asked to that when she 522 00:39:05.039 --> 00:39:07.880 was in Tucson, and I sat and I asked that question and she said 523 00:39:07.880 --> 00:39:10.840 to me, well, there was so much behind it, we needed to 524 00:39:10.880 --> 00:39:16.480 support it to help businesses. You know what, that's just a political garbage. 525 00:39:16.920 --> 00:39:20.639 You did it because people that were giving you money, who I knew 526 00:39:20.639 --> 00:39:22.280 were giving you money, did not want you to do that, right. 527 00:39:22.639 --> 00:39:25.920 I mean, I heard you last week. You know you were saying you 528 00:39:25.920 --> 00:39:30.559 want everybody to pay their fair share. That's not fair share every you know, 529 00:39:30.679 --> 00:39:32.480 No, I said, if you're going to say pay your fair share, 530 00:39:32.519 --> 00:39:36.119 let's make it your fair share. And don't keep telling me. I 531 00:39:36.119 --> 00:39:39.079 got to pay so much more percentage wise than you and dollar wise more than 532 00:39:39.119 --> 00:39:43.920 you exactly. And so that's what carried interest is. It's not fair share. 533 00:39:44.239 --> 00:39:46.320 And that's what that is. And you know what affects only a handful 534 00:39:46.320 --> 00:39:49.559 of people. Would you go to a flat tax? Would I go to 535 00:39:49.559 --> 00:39:54.039 a flat tax? No? Why other than the fact the accounting would have 536 00:39:54.079 --> 00:39:58.280 to change the way they do business very first day of a tax. In 537 00:39:58.800 --> 00:40:00.920 college, you learn about the where with all the pay right. I believe 538 00:40:00.920 --> 00:40:05.159 if you make ten thousand dollars and you tax them at twenty five percent, 539 00:40:05.199 --> 00:40:07.039 they got seventy five hundred dollars left over. I don't believe in that. 540 00:40:07.559 --> 00:40:10.559 Okay, no, no, no, no, no, no. First 541 00:40:10.599 --> 00:40:15.199 of all, wouldn't be twenty five percent? Okay, you can do ten 542 00:40:15.559 --> 00:40:19.480 twelve, and then if you want too a certain amount, you can rebate 543 00:40:19.519 --> 00:40:22.559 it to them, right, okay, But the flat tax, everybody pays 544 00:40:22.559 --> 00:40:28.000 the same thing. Yes, but there could be a level under fifty grand 545 00:40:28.239 --> 00:40:30.480 that you get that we baited a certain percentage, because if you only make 546 00:40:30.519 --> 00:40:34.000 it twelve grand, you ain't paying taxes. There are so many schools of 547 00:40:34.000 --> 00:40:37.320 thought on taxation. Flat tax makes it easy. I just believe that. 548 00:40:37.480 --> 00:40:42.119 You know, obviously I don't. You know, I'm not four taxes, 549 00:40:42.159 --> 00:40:45.519 but I see the benefits. I look outside paved roads, you know, 550 00:40:45.760 --> 00:40:49.719 infrastructure taxes pays that in a house. Would we get that money? Yeah, 551 00:40:49.760 --> 00:40:53.480 but that doesn't come from a federal tax. Okay, they might give 552 00:40:53.559 --> 00:40:57.599 us some back money as a state and stuff that most of the roads and 553 00:40:57.639 --> 00:41:00.119 stuff come from a state tax. We fund the you know, how do 554 00:41:00.119 --> 00:41:05.440 we pay veterans? How do we pay the military? I'm okay with a 555 00:41:05.679 --> 00:41:10.320 with a sales tax that is higher, okay, a usage tax. You 556 00:41:10.320 --> 00:41:14.159 know, you want to buy something that's one hundred grand, you pay more 557 00:41:14.159 --> 00:41:16.039 than somebody that can afford that, that's fine. Well to me, the 558 00:41:16.119 --> 00:41:20.440 only reason we're talking about tax is because of how many benefits we give out. 559 00:41:20.519 --> 00:41:22.760 You don't give out as much benefits. You don't need as much tax. 560 00:41:22.800 --> 00:41:23.760 I know, I look at the I look at the benefits side. 561 00:41:23.800 --> 00:41:27.440 So my both my brother's a military, my dad's military. But I hope 562 00:41:27.440 --> 00:41:30.559 that family's military. They get paid through my paycheck. What they should do 563 00:41:31.039 --> 00:41:34.440 is every time somebody gets a W two. Now, what they do in 564 00:41:34.440 --> 00:41:37.599 some European countries is you know how when you get your W two it says 565 00:41:37.639 --> 00:41:43.079 federal income ten thousand dollars of federal withholding ten thousand, Social Security ten thousand, 566 00:41:43.159 --> 00:41:47.920 Medicare ten thousand whatever in Europe. In some places in Europe they break 567 00:41:47.920 --> 00:41:51.960 it out on their W two where everything goes. So if you saw ten 568 00:41:52.000 --> 00:41:57.199 percent goes to who knows, some sort of program that you you don't agree 569 00:41:57.239 --> 00:42:00.719 with, at least there's some transparency there could see where your money. Do 570 00:42:00.760 --> 00:42:04.599 you want to talk about programs you get? You get Social Security, if 571 00:42:04.599 --> 00:42:07.480 you're working, you get Social Security, okay, and you at your fully 572 00:42:07.519 --> 00:42:12.599 time and age, you're still getting a paycheck and they're taking out Social Security, 573 00:42:13.239 --> 00:42:15.360 right, and you get a Social Security check that you get, you 574 00:42:15.440 --> 00:42:21.519 get taxed on. That's fair. I'm paying my own Social Security check and 575 00:42:21.559 --> 00:42:23.199 I'm paying the check and I'm getting paid fides. You know where that started. 576 00:42:23.840 --> 00:42:27.639 We're just talking a couple of minutes ago, nineteen eighty six per format 577 00:42:27.639 --> 00:42:30.559 that would pay a tax on Social Security. But during the nineteen nineteen eighty 578 00:42:30.599 --> 00:42:34.400 six per form they started a taxing Social Security. You know, to your 579 00:42:34.440 --> 00:42:36.599 point, John, we had a client in here talking about how they knew 580 00:42:36.679 --> 00:42:39.119 someone in Denmark who paid like something crazy like fifty five percent in taxes. 581 00:42:39.440 --> 00:42:43.719 But they don't have any problem. They love paying their taxes because they actually 582 00:42:43.719 --> 00:42:46.280 believe in their politicians. They know where that money's going because they have the 583 00:42:46.280 --> 00:42:51.639 transparency of the programs that are being funded through their tax paying dollars, so 584 00:42:51.800 --> 00:42:54.679 benefits you know. Well, that's what I'm saying is when you have transparency, 585 00:42:54.679 --> 00:42:58.800 when you agree with where your tax paying dollars are going, you're a 586 00:42:58.840 --> 00:43:00.960 little more inclined to act. We pay. Then when you don't agree with 587 00:43:01.000 --> 00:43:04.599 where the money's going in the first place, that's when people have a real 588 00:43:05.039 --> 00:43:07.880 challenge to tax. It's all it's all about transparency. Where's my money going? 589 00:43:07.920 --> 00:43:10.559 And I think that's what the biggest issue with taxation is nobody knows where 590 00:43:10.559 --> 00:43:14.840 their money's really going. Right, Listen, just where twenty twenty twenty four 591 00:43:14.960 --> 00:43:17.599 we're in, right? Yeah? What are people for state taxing benefits? 592 00:43:17.639 --> 00:43:20.880 Is there anything that they really need to look at it? There's been any 593 00:43:20.960 --> 00:43:24.639 changes in it on the estate side, you know, other than the inflation 594 00:43:24.719 --> 00:43:29.719 adjustment you know right now where you know, I want people to be prepared 595 00:43:29.719 --> 00:43:31.719 because I said I think they're going to act, but that's just me speculating. 596 00:43:32.079 --> 00:43:34.880 So well, we'll get into too alve. If they act, we'll 597 00:43:34.880 --> 00:43:37.039 be able to talk about strategies on how to protect people. And if they 598 00:43:37.079 --> 00:43:42.039 don't act, you know that what is it now? Forty almost fourteen million 599 00:43:42.039 --> 00:43:46.440 dollars? Now it'll be down to possibly five, possibly three, who knows, 600 00:43:46.599 --> 00:43:50.159 you know whatever that's not it's but it's supposed to be a lot less. 601 00:43:50.320 --> 00:43:52.880 And five million dollars is a big deal because after anything over five million 602 00:43:52.920 --> 00:43:57.800 dollars is a forty percent of state tax. So to help compensate that, 603 00:43:57.920 --> 00:44:01.719 would you think maybe starting insurance policies now are a good idea? Or do 604 00:44:01.760 --> 00:44:07.039 you wait until that actual laws changed. Well, if you're well, if 605 00:44:07.199 --> 00:44:09.639 you know I don't, there's there's a different trust that you can set up. 606 00:44:09.679 --> 00:44:15.079 But you know, one way to lock in to fourteen million dollars is 607 00:44:15.079 --> 00:44:19.840 to place into an irrevocable trust. Some call them slats, spousal lifetime access 608 00:44:19.840 --> 00:44:22.679 trust. But the thing is is that you know, if you only have 609 00:44:22.719 --> 00:44:24.800 twenty million dollars, you know, I don't recommend setting up one of those 610 00:44:24.840 --> 00:44:29.480 trusts because you're going to need access to that. It's limited access trust, 611 00:44:29.559 --> 00:44:32.800 right, And you know, I think the starting points about fifty million dollars, 612 00:44:32.800 --> 00:44:36.679 So you know, we don't care. But if you're if you're up 613 00:44:36.719 --> 00:44:38.039 there in age and you want to lock in that number, and you're hoving 614 00:44:38.079 --> 00:44:42.480 around ten twelve million dollars, maybe you could take advantage, throw some in 615 00:44:42.519 --> 00:44:45.559 there, maybe ten million, and live on the other two and then you 616 00:44:45.599 --> 00:44:49.480 could lock in that twelve to fourteen million dollars. So if you do pass, 617 00:44:50.440 --> 00:44:52.039 you won't be subject to the state tax if it does go down in 618 00:44:52.079 --> 00:44:54.480 twenty twenty six. I could just hear, like a lot of the people 619 00:44:54.519 --> 00:44:59.800 listening right now, I wish I had that problem twenty million. I wish 620 00:44:59.800 --> 00:45:01.639 I had fourteen million, then I'll worry about it. And that's the thing 621 00:45:01.719 --> 00:45:05.800 is that you know, ninety nine percent of my clients don't have that issue, 622 00:45:05.880 --> 00:45:07.239 right, you know, and there's you. And then we have issues 623 00:45:07.239 --> 00:45:12.639 where people over prepare, over you know, do too much to state planning. 624 00:45:13.079 --> 00:45:15.800 You know, we had that one client come in. They did way 625 00:45:15.840 --> 00:45:17.320 too much. I had two million dollars. And I'm not saying that's nothing, 626 00:45:20.239 --> 00:45:23.360 but you know, for all these separate trusts that they're setting up with 627 00:45:23.480 --> 00:45:25.920 just two million dollars, you know, the only people that are getting paid 628 00:45:25.920 --> 00:45:29.480 at the attorneys, right, it doesn't really equal the tax savings on the 629 00:45:29.480 --> 00:45:32.280 other side. You just need a basic basic estate plan, right. I 630 00:45:32.360 --> 00:45:35.920 mean you can look at a building a Christmas tree, but you don't need 631 00:45:35.960 --> 00:45:37.079 two of them, right, right. And you know, you guys, 632 00:45:37.199 --> 00:45:42.119 apparently we're all taking trips up to North you know, Sholo, and you 633 00:45:42.159 --> 00:45:45.599 know that's where one of those houses are located and stuck in an irrevocable trust. 634 00:45:46.400 --> 00:45:50.840 Right, and now they're having accent. They're having trouble getting that out 635 00:45:50.840 --> 00:45:53.519 of an irrevocable trust. That's over planning, okay, because they weren't subject 636 00:45:53.559 --> 00:45:57.920 to the estate tax. Well, as we go up on taxis and business 637 00:45:57.920 --> 00:46:00.880 owners are looking at their income right now and they're saying, how do I 638 00:46:01.039 --> 00:46:05.960 limit next year's income? One of the ways is if they're not already escorp, 639 00:46:06.159 --> 00:46:07.239 switch into an escorp. If you don't have a four to one K 640 00:46:07.320 --> 00:46:10.039 plan, start a four one K plan. What are some of the things 641 00:46:10.239 --> 00:46:15.800 business owners should be looking at or thinking about retirements? You know, setting 642 00:46:15.880 --> 00:46:17.440 up exactly if you're a business owner, if I mean if you're part of 643 00:46:17.440 --> 00:46:22.639 a partnership, you know, set up set up some retirements where you can 644 00:46:22.679 --> 00:46:24.480 bring that down. You know, we have a client right now. We're 645 00:46:24.519 --> 00:46:30.800 going to start talking about setting up special retirement plans where they can significantly reduce 646 00:46:30.840 --> 00:46:37.480 their net income for the year and defer it to retirement so when they're making 647 00:46:37.599 --> 00:46:39.880 less. You know, we're talking about the top tax rate, so when 648 00:46:39.880 --> 00:46:43.840 they're making less, they can start pulling that money out. All right, 649 00:46:43.840 --> 00:46:45.119 listen, we're gonna have to wrap it up. Thanks a lot, Jonathan. 650 00:46:45.199 --> 00:46:46.880 You want to get in touch you know, way to get them right 651 00:46:46.880 --> 00:46:50.760 here with the green Brook Financial Group. We'll put you in touch with him. 652 00:46:50.840 --> 00:46:52.280 He can help you on the state planning way to go, what to 653 00:46:52.360 --> 00:46:57.360 do and make sure I try it. He'll also be part of April second, 654 00:46:57.880 --> 00:47:00.920 green Brook Financial Group some posium. We're going to be planning, mitigating 655 00:47:01.119 --> 00:47:05.039 and doing everything just the way you need it. We'll be right back. 656 00:47:05.760 --> 00:47:09.400 It is the Money Many Show. Oh, welcome back everybody to the second 657 00:47:09.400 --> 00:47:15.440 hour of the Money Matter Show. Talk about April second. Yeah, April 658 00:47:15.440 --> 00:47:17.519 second. We've got a really fun symposium we're going to put on at La 659 00:47:17.519 --> 00:47:21.400 Paloma. It's going to be really a big event that's going to go over 660 00:47:21.599 --> 00:47:24.840 tax mitigation, a state planning mitigation, as well as how to look at 661 00:47:24.880 --> 00:47:29.800 your portfolio risk mitigation as we are hinering into these all time high markets. 662 00:47:29.920 --> 00:47:31.840 So we're going to have Johnson and Johnson Accounting Group there, We're going to 663 00:47:31.880 --> 00:47:37.079 have Jonathan Sabilia from Edward Law Firm there. We're going to have ourselves talking 664 00:47:37.119 --> 00:47:40.719 about financial planning. And also we'll have the host of the knst Am Talk 665 00:47:40.760 --> 00:47:45.840 show, J. T. Harris there to talk about the political environment as 666 00:47:45.880 --> 00:47:50.039 we round into November and the big election. In fact, one of the 667 00:47:50.039 --> 00:47:52.760 craziest things about this year's election, not just for America but for the world. 668 00:47:53.360 --> 00:47:58.280 This year is the most democratic elections in any year in the history of 669 00:47:58.280 --> 00:48:00.599 the world. So there's gonna be a lot of changes that happened this year, 670 00:48:00.639 --> 00:48:04.360 and so coming to this event will not only give you insights on that 671 00:48:04.400 --> 00:48:07.920 front, but also insights onto your own financial plan and how to mitigate the 672 00:48:08.000 --> 00:48:12.599 risk that could be on the horizon. Yep. And that's going to be 673 00:48:12.639 --> 00:48:15.800 a La poloma from twelve to three on April second. So if you want 674 00:48:15.800 --> 00:48:17.760 more information, you can give us a call five to zero five for four 675 00:48:17.880 --> 00:48:22.119 four to nine zero nine. This week, the Dow was down point one 676 00:48:22.199 --> 00:48:24.840 percent, the S and P five hundred was down point four the Nasdaq down 677 00:48:24.880 --> 00:48:29.159 one point three. Russell two thousand led the way up at one point one 678 00:48:29.199 --> 00:48:32.840 percent higher, and the equal weighted was up ero point seven percent. The 679 00:48:32.880 --> 00:48:37.679 real news this week was at CPI and PPI and the lower retail sales. 680 00:48:37.719 --> 00:48:40.039 But all in all we had a lot of earning supports, so let's dive 681 00:48:40.079 --> 00:48:44.079 into them. The first one was Rivian Automotive. On Monday, the stock 682 00:48:44.159 --> 00:48:49.159 sank three point five percent following a downgrade from Barclays to equal from overweight. 683 00:48:49.239 --> 00:48:52.559 Let's talk about ev since Dave isn't here real quick, you know, at 684 00:48:52.599 --> 00:48:55.920 the end of the day. He loves talking about those evs. It is 685 00:48:55.960 --> 00:49:00.679 wild how much. But he is going to not be going to California this 686 00:49:00.760 --> 00:49:02.639 week, so I guess we won't know how many EV cars are coming. 687 00:49:02.840 --> 00:49:09.079 But at the we continuously talk about the fact that until EV's actually changed the 688 00:49:09.119 --> 00:49:15.559 fact that their inputs are from carbon emitting inputs, it doesn't really change any 689 00:49:15.840 --> 00:49:20.119 chance or earnings were profitable, right, No, they're not profitable. We 690 00:49:20.159 --> 00:49:22.920 had Cocola shares were a little change after the beverage giant post mixed results for 691 00:49:22.960 --> 00:49:28.360 the fourth quarter. Company posted adjusted earnings forty nine cents per share. Revenue 692 00:49:28.360 --> 00:49:30.960 came in at ten point eight billion. It makes sense the coc Cola should 693 00:49:31.000 --> 00:49:37.440 be doing all right right here, doesn't just a good company. We had 694 00:49:37.440 --> 00:49:40.840 Shopify shares down more than twelve percent, even after the e commerce company posted 695 00:49:40.880 --> 00:49:45.960 a fourth quarter beat on top and bottom lines. Shopifa is that company that 696 00:49:45.159 --> 00:49:51.280 is kind of like an Amazon of sorts for small businesses. We've heard some 697 00:49:51.320 --> 00:49:55.119 crazy stories about people who use Shopify, who use Amazon drop shipping to as 698 00:49:55.119 --> 00:49:59.719 they're essentially their only jobs, and a lot of people making a lot of 699 00:49:59.719 --> 00:50:01.599 money. You and I Todd ran into a story of some high school kid 700 00:50:02.199 --> 00:50:06.960 up in scott Still he's making what I think he cleared like ninety thousand dollars 701 00:50:07.000 --> 00:50:09.199 in sales just drop shipping doesn't even have to pick up a finger pick a 702 00:50:09.239 --> 00:50:13.159 finger up. Yeah, And so for people who don't know what drop shipping 703 00:50:13.280 --> 00:50:16.280 is, it's like a imagine you create these you know, these shirts that 704 00:50:16.320 --> 00:50:21.920 you don't actually manufacture. You're just telling a manufacturer how to make you you're 705 00:50:21.960 --> 00:50:24.400 producing it safe in India for you know, two dollars a shirt, but 706 00:50:24.440 --> 00:50:29.639 you're selling him in America for ten dollars a shirt that the manufacturer sends it 707 00:50:29.639 --> 00:50:30.880 directly to the person. You're not involved. You're just kind of like the 708 00:50:30.880 --> 00:50:35.639 broker. And the only thing that he really worked on was probably the design, 709 00:50:36.039 --> 00:50:38.800 right, you know, marketing that through TikTok and whatnot. But the 710 00:50:38.840 --> 00:50:45.639 kid's smart, Go go go him. Zoom Info Technologies the market intelligence stock 711 00:50:45.760 --> 00:50:50.320 skyrocket at fifteen percent on strong earnings and the slightly better than expected first corner 712 00:50:50.480 --> 00:50:54.079 earnings per share outlook. As zoom info reported earnings of twenty six cents per 713 00:50:54.119 --> 00:50:57.760 share. Talk a little bit about the sports betting world. You got pen 714 00:50:57.920 --> 00:51:00.960 Entertainment. They plunge fourteen percent off. Their company, which owns ESPN Bets 715 00:51:01.000 --> 00:51:06.920 sports gambling platform, fell short of analyst quarterly earnings forecast. The big well 716 00:51:06.960 --> 00:51:09.199 not winner, I should say, but Draft Kings they did decent right. 717 00:51:09.320 --> 00:51:15.599 They held in there after reporting anight sense drop, i mean loss on their 718 00:51:15.599 --> 00:51:17.840 earnings. They were supposed to be reporting profitabilities for the first time its history. 719 00:51:17.920 --> 00:51:22.199 That's really the thing to keep in mind with DraftKings and even Fandel Fandal 720 00:51:22.360 --> 00:51:28.119 just became profitable two quarters ago. It's now on the New York Stock Exchange 721 00:51:28.159 --> 00:51:30.639 as as of a couple of weeks ago. It's a flutter is their parent 722 00:51:30.679 --> 00:51:36.559 company, and that's FanDuel's parent company, and they've been trading in Europe, 723 00:51:36.559 --> 00:51:39.599 but they just came on to the New York Stock Exchange. And it's gonna 724 00:51:39.599 --> 00:51:45.320 give a lot of competition to DraftKings because they're pretty much they're the closest and 725 00:51:45.840 --> 00:51:47.719 similarity to what they're doing. Because I mean, you got MGMs, Caesars, 726 00:51:47.840 --> 00:51:52.760 got Win, but they all deal with hotels and just breaking mortar casinos 727 00:51:52.800 --> 00:51:58.360 as well. DraftKings and Flutter well FANDU are really the only online seems exclusive 728 00:51:58.639 --> 00:52:01.960 Besides they have they have the sports books up in Phoenix and a couple others, 729 00:52:01.960 --> 00:52:05.440 but mainly they're on their phone. They're on the app and that's where 730 00:52:05.440 --> 00:52:07.760 they make their money. So they're the biggest competitors. And FanDuel is the 731 00:52:07.840 --> 00:52:13.760 largest online sports gambling ones, so then them coming public in the US really 732 00:52:13.760 --> 00:52:17.639 does give a lot of competition to draft games. It's surprising to see ESPN 733 00:52:17.679 --> 00:52:21.599 being the big lagger here. You know, it's pretty new. Yeah, 734 00:52:21.639 --> 00:52:25.599 in a sense. I mean that was so ESPN BET was Barstools sports gambling 735 00:52:27.079 --> 00:52:30.239 and then they sold the penn National Gaming bought it back and then partner with 736 00:52:30.440 --> 00:52:34.880 ESPN. It just never has been the most I mean, hard Rock Bet 737 00:52:35.000 --> 00:52:37.559 just came out with it too, hard rock hard rock. Yeah, those 738 00:52:37.599 --> 00:52:40.039 casinos just came out with one. They're all trying to get. It's getting 739 00:52:40.039 --> 00:52:45.599 diluted, but they're all still. ESPN BET and DraftKings and panduel are the 740 00:52:45.679 --> 00:52:51.719 really the three major ones ones that are online only. Yeah. The thing 741 00:52:51.719 --> 00:52:54.559 they remember about DraftKings and Fanduels. They're spending so much money on marketing because 742 00:52:54.559 --> 00:52:58.400 they're trying to get all these people. But as we saw in reports about 743 00:52:58.400 --> 00:53:00.719 the Super Bowl, there has been all time. I'm betting on super Bowl. 744 00:53:00.960 --> 00:53:05.480 That's not because the casinos, right, that's not because people are you 745 00:53:05.519 --> 00:53:07.119 know, headed to Vegas because the super Bowl is there. This year share 746 00:53:07.119 --> 00:53:09.320 that probably had a little bit of increase to it. But at the end 747 00:53:09.320 --> 00:53:15.000 of the day, of these increase in betting is directly due to mobile gambling. 748 00:53:15.079 --> 00:53:19.000 And I mean it's also every year there's more states legalizing gambling, So 749 00:53:19.039 --> 00:53:22.840 that's just going to be continuously get more revenues. And that's why these investors 750 00:53:22.880 --> 00:53:25.719 are hypothecating the growth. And though they're not profitable. DraftKings has never been 751 00:53:25.760 --> 00:53:30.599 profitable, continues to not be profitable, but the potential of what's going to 752 00:53:30.639 --> 00:53:34.559 be in there in that are legal right now, so you still have to 753 00:53:34.559 --> 00:53:37.639 go. Speaking of the super Bowl, do you think that super Bowl ticket 754 00:53:37.679 --> 00:53:42.559 prices are accounted for in CPI numbers? So those things went through the roof. 755 00:53:42.880 --> 00:53:46.119 Yeah, but it's just their averages. But let's talk a little bit 756 00:53:46.119 --> 00:53:52.480 about mobile game mobile ride share stocks, Lift and Uber lift shares surged twenty 757 00:53:52.480 --> 00:53:57.360 one percent and actually finished the week up thirty seven percent. This week, 758 00:53:58.559 --> 00:54:02.519 the right Haling Company posted stronger than expected fourth quarter results and issued better than 759 00:54:02.559 --> 00:54:07.519 expected guidance. In the most recent quarter, Lift posted adjusted earnings of eighteen 760 00:54:07.559 --> 00:54:10.440 cents per Sure they would have been just not doing well and compared relative to 761 00:54:10.559 --> 00:54:15.280 Uber. But obviously this week really in surprise investors, they totally messed up 762 00:54:15.280 --> 00:54:19.519 on the earning. They had a yeah, they had a spoof. They 763 00:54:19.599 --> 00:54:23.079 served forty percent right after earnings because they reported that they just destroyed it, 764 00:54:23.159 --> 00:54:25.719 right, They're like out of zero or something. Yeah, yeah, exactly 765 00:54:25.719 --> 00:54:29.199 out of the zero. And then about an hour later the CFO came out 766 00:54:29.239 --> 00:54:30.280 and said that was a mistake, so they dropped back down to normal. 767 00:54:30.320 --> 00:54:32.599 And then they ended up going you want the short cellars that you're stuck, 768 00:54:32.760 --> 00:54:36.400 just do that perfect exact And that's what we were talking about. It. 769 00:54:36.480 --> 00:54:38.079 If they got stopped out of that, there's a there's a suit on that. 770 00:54:39.079 --> 00:54:42.480 Yeah. But they I mean, like I said, thirty seven percent 771 00:54:42.519 --> 00:54:45.519 in one week, a really big increase for lyft. Uber was up ten 772 00:54:45.559 --> 00:54:50.400 percent this week. They did also, I believe, report earnings and they 773 00:54:50.519 --> 00:54:52.599 beat expectations as well. It's not ride haling, but it's in the same 774 00:54:53.360 --> 00:54:57.719 category sort of. Door Dass dropped eight percent out they reported a larger loss 775 00:54:57.719 --> 00:55:00.639 in the fourth quarter they lost thirty percent to share and they were thought they 776 00:55:00.639 --> 00:55:05.239 were gonna left only sixteen. And you know, another kind of in that 777 00:55:05.280 --> 00:55:08.840 same sector is Instacart. You know, they they just kind of came online 778 00:55:08.920 --> 00:55:13.199 public I think two quarters ago, three quarters ago. It's gonna be interesting 779 00:55:13.199 --> 00:55:16.000 to see that whole space. Just makes sense that trend does continue into the 780 00:55:16.039 --> 00:55:23.400 future. Years left Uber door Dash people are not getting less lazy. Yeah, 781 00:55:23.440 --> 00:55:28.079 I mean DoorDash has is doing. I mean Instacard had to lay off 782 00:55:28.079 --> 00:55:30.639 a ton of employees because they're struggling right now, and DoorDash is really taking 783 00:55:30.719 --> 00:55:35.760 stronghold on that. I guess Uber East too. But grocery stores are starting 784 00:55:35.760 --> 00:55:37.440 to do their own deliveries, right, you don't have to go through door 785 00:55:37.519 --> 00:55:40.000 Dash, you can just call Safeway or something. Those calls door Dash and 786 00:55:40.079 --> 00:55:44.639 Instacart. I'm pretty sure they're talking about how inflation is impacting their thinning the 787 00:55:44.679 --> 00:55:49.159 margins obviously, you know, with the Walmart increase their prices on apples or 788 00:55:49.159 --> 00:55:52.079 whatever, that's gonna in the margin elsewhere, right, Yes, I mean 789 00:55:52.119 --> 00:55:55.320 the same idea as Airbnb. Their margins are dropping because and then they have 790 00:55:55.360 --> 00:55:59.320 to put it into the cleaning feeds where they're getting their money from. Yeah, 791 00:56:00.440 --> 00:56:02.440 well let's talk about Ambaba since Deillnes just brought it up. The vacation 792 00:56:02.519 --> 00:56:07.119 property rentals stock slump four percent even after posting stronger than expected revenue and optimics 793 00:56:07.239 --> 00:56:12.599 optimistic guidance. However, the stock did finished the week up at three percent 794 00:56:12.599 --> 00:56:17.079 on the week. We're not using airb actually virbo this week, sholo, 795 00:56:17.199 --> 00:56:22.840 But Airbnb has come back a lot from kind of that that Midsummer last year's 796 00:56:22.840 --> 00:56:27.679 slump that they experienced. Walmart interesting times ahead for it. They report on 797 00:56:27.719 --> 00:56:30.960 Tuesday on the twenty sixth, or report on Tuesday, and then on the 798 00:56:30.960 --> 00:56:32.519 twenty sixth they're set to do a three for one stock split. Is this 799 00:56:32.559 --> 00:56:37.400 gonna make the stock price a little bit more attractive to investors, we'll see. 800 00:56:37.760 --> 00:56:42.000 Not to mention, Walmart is also in talks to buy TV maker Visio 801 00:56:42.039 --> 00:56:45.960 for over two billion dollars. If this goes through, Walmart can potentially control 802 00:56:45.000 --> 00:56:49.280 twenty two percent of the US TV market. I think that we saw this 803 00:56:49.400 --> 00:56:54.559 play into Roku's earnings a little bit because they reported on Friday. Shares plunged 804 00:56:54.599 --> 00:56:59.280 more than fifteen percent, and mostly due to guidance. As media media pointed 805 00:56:59.320 --> 00:57:04.679 out, Roku is growing competition in their advertising arena. So to that point, 806 00:57:04.800 --> 00:57:07.960 if Walmart buys Visio, okay, the news is negative for Roku because 807 00:57:08.000 --> 00:57:14.280 it sells TV, their TVs and streaming devices through Walmart, which Roku has 808 00:57:14.280 --> 00:57:19.199 an exclusive deal had an exclusive deal with Walmart to sell products fulfilled by Walmart's 809 00:57:19.239 --> 00:57:22.880 on Roku devices. If Roku or if Walmart buys Visio, you would imagine 810 00:57:22.880 --> 00:57:27.119 that they were going to take that contract and put it you know, obviously 811 00:57:28.000 --> 00:57:30.639 use Viseos instead of Roku. Yeah, exactly. Think that's going to hurt 812 00:57:30.679 --> 00:57:34.880 Roke a little bit and shares share price saw that on Friday. Yeah, 813 00:57:34.920 --> 00:57:37.880 and they also had a wider loss and expected. I mean, so earnings 814 00:57:37.199 --> 00:57:39.760 are coming out mixed. You know, there's a lot of tech that are 815 00:57:40.039 --> 00:57:45.360 beating it, but you're seeing earnings slow down and depends on what the company 816 00:57:45.400 --> 00:57:46.599 is like. You can see Roku have a little struggle ahead to and it's 817 00:57:46.679 --> 00:57:51.119 mainly when you see these earnings reports. A lot of what you got to 818 00:57:51.159 --> 00:57:53.960 look at as the guidance because they could have beat earnings for the previous quarter, 819 00:57:54.079 --> 00:57:57.440 but what are they talking about going into the next rest of the year. 820 00:57:57.800 --> 00:58:00.199 They're saying, we beat earnings. Last quarter is great quarter, but 821 00:58:00.280 --> 00:58:05.039 now we're not seeing we're seeing a projection of projected down quarter, projected down 822 00:58:05.079 --> 00:58:07.760 half of the year. That's why stocks tend to drop a lot. If 823 00:58:07.800 --> 00:58:10.159 you see why, if you're wondering why they beat earnings and then they drop, 824 00:58:10.280 --> 00:58:14.320 is because of the guidance that from the Ernie's calls that a lot of 825 00:58:14.360 --> 00:58:15.920 people don't listen to, but obviously the analysts do. And that's really what 826 00:58:15.960 --> 00:58:19.840 you got to pay attention to, more so than just the previous numbers, 827 00:58:19.840 --> 00:58:22.320 because's all about the stocks are all about the future, right projections, We'll 828 00:58:22.360 --> 00:58:27.360 talking about a world and cook country filled with credit. You thinking that upstarts 829 00:58:27.400 --> 00:58:30.679 should have had a pretty good quarter, but they The online lender saw it 830 00:58:30.719 --> 00:58:35.239 share slide fourteen percent after it reported a fourth quarter adjusted loss of eleven cents 831 00:58:35.239 --> 00:58:39.280 per share. It finished the week down twenty three percent. They're getting absolutely 832 00:58:39.360 --> 00:58:45.840 crushed. They're flooding money into the auto lending portion of it. And my 833 00:58:45.960 --> 00:58:47.280 dad, he works in the car business, we talked. I talked to 834 00:58:47.320 --> 00:58:52.719 him quite a bit about Upstart and it's not even one of the lenders at 835 00:58:52.840 --> 00:58:57.920 any of the dealerships here in Tucson. They don't look at Upstart. Yeah 836 00:58:58.079 --> 00:59:00.440 me looking at Upstart, I think twenty six is a nice floor and that 837 00:59:00.519 --> 00:59:06.239 stuck. I think you're right about it. And it's an interesting one because, 838 00:59:06.360 --> 00:59:10.400 you know, anything that has the words artificial intelligence behind it usually has 839 00:59:10.440 --> 00:59:14.920 been getting a bid Upstart to not for those that don't know, Upstart uses 840 00:59:15.840 --> 00:59:21.800 rather than using Fico scores for lending, they use an artificial intelligence software. 841 00:59:22.480 --> 00:59:27.199 MGM Grand joined the list of companies who blamed the United Auto Workers strike for 842 00:59:27.239 --> 00:59:30.840 a reason that they reported a week quarter shares dip more than three percent, 843 00:59:30.920 --> 00:59:35.280 even after the casino operator beat fourth quarter expectations on top and bottom lines because 844 00:59:35.440 --> 00:59:38.599 MGM's China business exceeded. However, the casino business in US was hurt from 845 00:59:38.639 --> 00:59:43.400 the impact of the workers strike in Detroit. How that makes sense, I'm 846 00:59:43.440 --> 00:59:47.159 not sure, but apparently people don't go to Vegas when they're striking. Well, 847 00:59:47.440 --> 00:59:52.159 you know, I'll talk about the auto industry, you know, for 848 00:59:52.320 --> 00:59:55.519 it's interesting right now, you know, and they don't want to go all 849 00:59:55.519 --> 01:00:02.920 in with the ev stuff now and they we evaluated their entire planning that they 850 01:00:02.920 --> 01:00:06.440 put together of where they want to be and what they want to do, 851 01:00:07.119 --> 01:00:09.320 and they should tell us something. Yeah, you know, we kind of 852 01:00:09.360 --> 01:00:13.719 hit a saturated market of some of these evs. Even though Tesla had a 853 01:00:13.800 --> 01:00:17.239 nice little bounce back from the mid one eighties to two hundred this week, 854 01:00:17.280 --> 01:00:21.800 it's still it's going to be a little tough going forward, I think unless 855 01:00:21.800 --> 01:00:25.000 they keep coming up with new ways. The big key that is we both 856 01:00:25.079 --> 01:00:30.960 know is going to be the batteries and the ability to longer batteries and the 857 01:00:30.960 --> 01:00:34.840 ability to charge them quickly. Not only that, but Tesla has the charges 858 01:00:34.920 --> 01:00:36.960 going for them. At some point they're going to be the gas station. 859 01:00:37.079 --> 01:00:38.960 You know. Yeah, at some point maybe if they get there. All 860 01:00:39.039 --> 01:00:43.239 right, So, you know, all these companies we run through and it's 861 01:00:43.280 --> 01:00:45.159 confusing for a lot of people. Half the stuff is gibberous to them. 862 01:00:45.159 --> 01:00:47.760 What really matters at the end of the day is their financial plan. What 863 01:00:47.800 --> 01:00:52.360 we do here at Greenberg Financial, what makes us different is the fact that 864 01:00:52.360 --> 01:00:55.119 we're actually planners and the money managers. Not only that, but we put 865 01:00:55.199 --> 01:00:59.599 into everything that's going to involve in your financial life when it comes to taxes 866 01:00:59.639 --> 01:01:02.480 from a date to even things such as car insurance, even the little stuff 867 01:01:02.559 --> 01:01:06.280 we can help you with. So when you call us, not only do 868 01:01:06.320 --> 01:01:09.159 you get that free financial plan, but you also understand what level of risk 869 01:01:09.199 --> 01:01:13.239 you're currently at, what level of risk your current portfolio is at, what 870 01:01:13.360 --> 01:01:15.559 type of changes should be made, where your income buckets are going to be 871 01:01:15.599 --> 01:01:20.079 coming from, how to plan for taxes in retirement, how's that going to 872 01:01:20.119 --> 01:01:22.960 be different from when you're working. Are there any possibilities for raw conversions? 873 01:01:23.280 --> 01:01:28.159 Do we need a plan for qualified charitable distributions or not? These are so 874 01:01:28.239 --> 01:01:30.159 many complex things that if you try to do it by yourself, I'm sure 875 01:01:30.199 --> 01:01:34.880 you can try, but it's not going to be as sophisticated or accurate as 876 01:01:34.880 --> 01:01:37.559 it possibly could be. So again, when you give us a call, 877 01:01:37.880 --> 01:01:39.400 you're going to get a free financial plan, You're going to get a review 878 01:01:39.679 --> 01:01:44.039 of your risk tolerance, and a review of your current portfolio, all free 879 01:01:44.039 --> 01:01:45.840 of costs, just because we're here for the people and we want to make 880 01:01:45.880 --> 01:01:52.000 sure that you're prepared for what possibly could be on the horizon, and really 881 01:01:52.159 --> 01:01:54.559 in what's going on right now. The biggest thing we keep seeing people every 882 01:01:54.559 --> 01:02:00.679 single day sitting down doing their plan for them whether they do business or not 883 01:02:00.760 --> 01:02:04.519 with us. It's not the point we're helping them. They're getting to the 884 01:02:04.519 --> 01:02:09.000 point. We're making them realize where they sit today and if the markets go 885 01:02:09.119 --> 01:02:12.519 down, where they'll be, If the markets go up, where they'll be, 886 01:02:13.280 --> 01:02:17.360 And we need to go ahead and make sure that you are in that 887 01:02:17.440 --> 01:02:22.239 position. Ask yourself, you know where am I? How am I allocated? 888 01:02:22.480 --> 01:02:24.039 Am I two risky? Not too risky? Is it giving me your 889 01:02:24.079 --> 01:02:29.440 income? Could it give me more income? How long can my portfolio subsidize 890 01:02:29.440 --> 01:02:32.199 me if I'm not using it? Am I positioned correctly for the growth? 891 01:02:32.239 --> 01:02:37.239 There's so much on the portfolio. But before we get there, are you 892 01:02:37.320 --> 01:02:42.159 mitigating your taxes? Are you prepared for the estate planning coming out? Do 893 01:02:42.199 --> 01:02:45.199 you have enough insurance in what you're doing? There's so much that goes into 894 01:02:45.199 --> 01:02:47.800 it. Are you going to take social Security? Or did you take social 895 01:02:47.800 --> 01:02:52.360 Security? Where it's going? How much are you being taxed on it when 896 01:02:52.400 --> 01:02:57.000 you should be taking it? And all those other things go into one simple 897 01:02:57.039 --> 01:02:59.920 plan. Yeah, we were doing a financial plan this last week. Of 898 01:03:00.119 --> 01:03:02.679 the interesting things that came up was the fact that she was a federal employee 899 01:03:02.679 --> 01:03:07.079 and didn't really know what her current pension was going to be as you just 900 01:03:07.159 --> 01:03:12.239 kind of joined the government place. And so what we really wanted to show 901 01:03:12.239 --> 01:03:15.960 where was the fact that we can calculate federal employees because we do specialize in 902 01:03:15.000 --> 01:03:20.559 federal employees. We have a software that works directly in. It's not the 903 01:03:20.679 --> 01:03:25.239 OPM calculation that's the office that actually calculates the pension figures for you, but 904 01:03:25.280 --> 01:03:30.760 it's a close calculation that mimics exactly what they do, so we can come 905 01:03:30.920 --> 01:03:34.400 pretty close to an estimate of what you should be expecting. And that really 906 01:03:34.400 --> 01:03:37.960 helps us understand what the plan for when it comes to income gaps. Right, 907 01:03:37.000 --> 01:03:39.320 if you're getting forty thousand from a pension, great, but if you're 908 01:03:39.320 --> 01:03:44.239 spending sixty where's the other twenty going to come from? If SOLI Security isn't 909 01:03:44.239 --> 01:03:45.599 going to get turned on right away in retirement, how are we going to 910 01:03:45.599 --> 01:03:47.880 bridge that gap for a couple of years until it does get turned on. 911 01:03:49.000 --> 01:03:51.840 It's not even in ten years from now they wanted to be seventy seven percent 912 01:03:51.880 --> 01:03:53.400 of the funds come in, we'll be able to pay for Social Security, 913 01:03:53.599 --> 01:03:57.880 is what they're estimating. So there's going to be changes over the next five 914 01:03:58.400 --> 01:04:00.480 to ten years on how we're going to be taxed to be able to pay 915 01:04:00.519 --> 01:04:04.480 for it, and everyone keeps cut taking that and kicking the can down the 916 01:04:04.519 --> 01:04:09.679 down the road, and they better start realizing. The people within ten years 917 01:04:09.719 --> 01:04:13.199 they're going to get their solid security, but the people twenty thirty years from 918 01:04:13.199 --> 01:04:15.920 now, we got to start planning on how this is going to happen and 919 01:04:15.000 --> 01:04:18.559 work. So we can kind of use an actuary and they get less so 920 01:04:18.599 --> 01:04:21.280 there's more money going in now and they can start putting more of their own 921 01:04:21.280 --> 01:04:25.199 money away and growing. You know, for federal employee employees, there's a 922 01:04:25.239 --> 01:04:28.119 lot of decisions you have to make when it comes to Fegley, when it 923 01:04:28.159 --> 01:04:30.880 comes to FEHB, and then when it comes to your TSP as well as 924 01:04:30.920 --> 01:04:35.119 first so all those complex things. It's it's really hard to make all those 925 01:04:35.119 --> 01:04:40.079 decisions by yourself without someone that really understands how it's going to work, with 926 01:04:40.159 --> 01:04:43.440 your other side of your plan, your other assets that you could have into 927 01:04:43.480 --> 01:04:45.559 the picture as well. So when you give us a call, is a 928 01:04:45.559 --> 01:04:47.119 federal employee, not only if you get that financial plan, but you'll get 929 01:04:47.119 --> 01:04:50.559 an in depth analysis of your benefits. So feel free to give us a 930 01:04:50.599 --> 01:04:54.960 call five to zero five, four to four, four nine zero nine. 931 01:04:55.840 --> 01:04:59.960 And it's real simple, guys. I mean it's we got a nice little 932 01:05:00.079 --> 01:05:02.360 building. You drive right up, you can walk right through, take an 933 01:05:02.400 --> 01:05:08.079 elevator up, walk up the stairs, comfortable place, coffee, you name 934 01:05:08.159 --> 01:05:11.599 it. You can just be here and we sit down and we take the 935 01:05:11.679 --> 01:05:16.440 time to explain everything to you. We will not rush you, will not 936 01:05:16.559 --> 01:05:19.920 push you out, and we will not hound you. All you need to 937 01:05:19.960 --> 01:05:25.480 do is realize where you're at. Do we think that people will eventually do 938 01:05:25.559 --> 01:05:28.400 business with us, Yes, of course, you know, that's why we're 939 01:05:28.440 --> 01:05:31.280 in business. But not everybody wants to, not everybody needs to. Some 940 01:05:31.320 --> 01:05:33.960 people can just do it on the sales. People are happy where they are. 941 01:05:34.199 --> 01:05:38.599 But at the end of the day, we know once you come through 942 01:05:38.639 --> 01:05:42.280 our doors and we put a plan together and we show you what we would 943 01:05:42.320 --> 01:05:45.599 be doing, you're going to learn something absolutely, yeah, exactly, And 944 01:05:45.639 --> 01:05:49.280 that's our whole goal is education of your financial plan, because we want you 945 01:05:49.360 --> 01:05:53.639 to be as knowledge it as you can about what you's going into retirement or 946 01:05:53.639 --> 01:05:57.159 how you're going to live through retirement with your money. And if you want 947 01:05:57.199 --> 01:06:00.079 a little sample piece again that April second event will get you exactly what kind 948 01:06:00.079 --> 01:06:02.000 of we do, how we do it. But not only that, you 949 01:06:02.039 --> 01:06:05.119 also get to meet the tax countants of the estate planning counts. So that's 950 01:06:05.159 --> 01:06:09.519 why that's so beneficial coming up on April second. All right, So let's 951 01:06:09.519 --> 01:06:12.039 talk a little bit about Germany, because I want to get on my soap 952 01:06:12.039 --> 01:06:15.280 box real quick about their energy strategy, which to me is one of the 953 01:06:15.280 --> 01:06:18.599 worst in the world. Germany's energy strategy is one of the greatest mysteries of 954 01:06:18.599 --> 01:06:23.559 our time because the country only discharges less than two percent of the global carbon 955 01:06:23.599 --> 01:06:27.920 emissions that we experience in the world. Yet the elite there within its established 956 01:06:27.960 --> 01:06:31.320 have none less embarked on what amounts to an economic suicide mission. Their help 957 01:06:31.360 --> 01:06:34.000 bent on saving the planet, but never mind, the rest of the world 958 01:06:34.039 --> 01:06:40.000 will happily absorb every gram of fossil fuel that Germany pretends to be temporarily abating. 959 01:06:40.840 --> 01:06:45.000 Among the most illogical moves by the rolling cluss there in Germany was proactively 960 01:06:45.039 --> 01:06:48.000 dismantling the twenty two gigawatts of the world's best run nuclear actors. Back in 961 01:06:48.039 --> 01:06:53.119 the eighties and nineties, nuclear in Germany led the world. I mean they 962 01:06:53.239 --> 01:06:58.360 dominated, they were manufacturing powerhouse. Now in twenty twenty three, they've completely 963 01:06:58.360 --> 01:07:02.280 offlined their entire nuclear generators. Not a single nuclear generator is online anymore in 964 01:07:02.320 --> 01:07:06.159 Germany. So they're predominantly relying on coal now, so they're not using fossil 965 01:07:06.159 --> 01:07:09.960 fuels and all their energy is coming from coal. But guess what, they 966 01:07:09.960 --> 01:07:13.199 want to have a mandate meaning that they're no longer going to use any coal 967 01:07:13.280 --> 01:07:15.639 by twenty thirty. So what happens then, well, they got to use 968 01:07:15.639 --> 01:07:18.760 some type of energy, So they're either going to go right back to fossil 969 01:07:18.760 --> 01:07:21.760 fuels or have to go right back to the nuclear power plants that they did 970 01:07:21.960 --> 01:07:28.119 that they offline only because of fear. So what you're saying is we're not 971 01:07:28.159 --> 01:07:31.760 the only lion government out there. Yes, and Germany is one of the 972 01:07:31.760 --> 01:07:39.159 most democratically socialistic progression in all countries. They also in the government lies, 973 01:07:39.400 --> 01:07:42.320 oh we're gonna get this done. But so the power people in power think 974 01:07:42.320 --> 01:07:45.119 they're gonna do this. It doesn't like you know, what people want, 975 01:07:45.400 --> 01:07:48.239 no wars, what people want none, none of their families being killed. 976 01:07:48.440 --> 01:07:51.599 That's what they want. Okay, it on the switch and get it. 977 01:07:51.840 --> 01:07:55.599 Okay, they want clean energy, they don't need to just have all this 978 01:07:55.679 --> 01:08:00.239 other stuff. Most people do not want to go paying for all this until 979 01:08:00.280 --> 01:08:03.880 it's proven. You know. It's the fear tactics. And that's what really 980 01:08:04.360 --> 01:08:06.840 it's so crazy. I mean, we see it all the time with this 981 01:08:06.920 --> 01:08:13.039 nuclear they predominantly produce fear, and that's why we don't actually have it. 982 01:08:13.039 --> 01:08:15.800 It's the best renewable energy that we could be producing right now with everything you're 983 01:08:15.840 --> 01:08:19.640 still just scared about, like another chernobyl happening really is for what it seems 984 01:08:19.680 --> 01:08:24.000 like, yep. And you know it's the same thing with climate change, 985 01:08:24.079 --> 01:08:28.199 right it's fear driven. Not to mention the fact that the world goes through 986 01:08:28.359 --> 01:08:30.600 eras of hot and then cold, and that's how the world works. It's 987 01:08:30.600 --> 01:08:33.920 always done that, going back millions and hundreds of millions of years before we 988 01:08:33.960 --> 01:08:39.159 ever existed. We have no plants in the United States right now, Okay, 989 01:08:39.560 --> 01:08:43.479 that are working. People don't talk about them. What was the last 990 01:08:43.479 --> 01:08:45.880 time what was the last one that went down three mile and it didn't even 991 01:08:46.159 --> 01:08:50.000 three milesian? You know, I could not tell you in New York, 992 01:08:50.279 --> 01:08:57.199 Pennsylvania, Pennsylvania three miles but it didn't even escape the thing exactly, but 993 01:08:57.239 --> 01:09:01.760 it works years ago like the safe So like their whole reason of something that 994 01:09:01.840 --> 01:09:06.720 it doesn't work, it worked with technology today. You telling me you can't 995 01:09:06.720 --> 01:09:11.520 put together a great nuclear like we are not USSR, Like we know how 996 01:09:11.560 --> 01:09:15.600 to manage a nuclear actor. Chernobyl's not gonna happen anymore. Like that was 997 01:09:15.640 --> 01:09:19.520 a failed state that was managing that nuclear actor. So trying to compare that 998 01:09:19.560 --> 01:09:25.600 to all nuclear actor and Fukushima was a nuclear reactor in Japan that failed off 999 01:09:25.640 --> 01:09:29.640 an earthquake, and it's an old version of a nuclear actor. Like all 1000 01:09:29.640 --> 01:09:36.119 these fear tactics is just well, nuclear plants to give us clean energy while 1001 01:09:36.119 --> 01:09:45.800 we all keep building fastest supersonic nuclear bumlear bombs, right that are never going 1002 01:09:45.880 --> 01:09:49.520 to be used hopefully hopefully, Right, So we spend all this money on 1003 01:09:49.560 --> 01:09:56.520 something that's never going to be used hopefully that happens. Well, that's the 1004 01:09:56.560 --> 01:09:59.760 planning. We don't have to plan for, but people do plan for that. 1005 01:10:00.079 --> 01:10:01.159 Give me gold, give me a bunker, give me food, that 1006 01:10:01.239 --> 01:10:04.600 lass for twenty five years. I don't want to be in a bunker if 1007 01:10:04.600 --> 01:10:09.119 the world clows up. Bet on humanity, all right, don't bet on 1008 01:10:09.199 --> 01:10:11.840 the dismantle of humanity we are. Do you got a quality a bunker in 1009 01:10:11.880 --> 01:10:14.560 a year from now? What's open? What's going on on? Ye? 1010 01:10:14.680 --> 01:10:17.399 Yeah, those movies never look fun. Everybody that's still laught won't even be 1011 01:10:17.479 --> 01:10:21.800 able to have kids anymore, right, they'll be too old. And we 1012 01:10:21.920 --> 01:10:25.840 go back to the fear of climate change, the fact that they just they 1013 01:10:26.399 --> 01:10:30.359 obviously maybe humans have a small impact. You know, I can obviously to 1014 01:10:30.359 --> 01:10:33.560 see that back in China when they stopped polluting when the Olympics happened. In 1015 01:10:33.560 --> 01:10:38.319 a way, yeah, the sky's got clean. When the pandemic happened, 1016 01:10:38.319 --> 01:10:41.520 the sky's got clean for a couple of years. But that does not impact 1017 01:10:41.560 --> 01:10:45.159 the real predominant changes of the world. The world is on its own cycle 1018 01:10:45.199 --> 01:10:46.439 and we have very little to do. Just worry about a little pollution, 1019 01:10:46.600 --> 01:10:51.000 but let's not worry about the virus is getting out that killed half of the 1020 01:10:53.199 --> 01:10:57.359 people that we probably created. Yeah, yeah, man made creating or whatever 1021 01:10:57.359 --> 01:11:00.479 the what do they call those gain of function real data function virus says, 1022 01:11:00.560 --> 01:11:06.479 let's do that, but let's not worry about that. Yeah, we will 1023 01:11:06.479 --> 01:11:12.079 live in a very stupid world that is controlled by governments that want more money, 1024 01:11:12.279 --> 01:11:15.279 right right, I want them right that want money and power. All 1025 01:11:15.359 --> 01:11:18.119 right, we'll be back. We appreciate you listening. You know how to 1026 01:11:18.119 --> 01:11:24.000 get in touch with us. Greenberg Financial Group will be We'll talk to you 1027 01:11:24.039 --> 01:11:28.239 soon. We'll be right back. Welcome back, everybody. This is Dean 1028 01:11:28.279 --> 01:11:30.680 Greenberg. This is the Money Matter Show. As you know, we always 1029 01:11:30.760 --> 01:11:35.039 work here at Greenberg Financial word Team, and we've added to our team lately 1030 01:11:35.239 --> 01:11:38.720 and you know, over the next couple of months, we're going to keep 1031 01:11:38.720 --> 01:11:43.279 bringing you our team members. Not only do you know our planning guys and 1032 01:11:43.319 --> 01:11:46.319 the investment guys, but as you know, we brought on John Sabilia to 1033 01:11:46.640 --> 01:11:50.720 do the estate planning. He's got his own estate planning firm and taxation and 1034 01:11:50.720 --> 01:11:55.359 stuff, and he's been with us now about a year. And I've been 1035 01:11:55.399 --> 01:11:58.760 looking for a couple of accountants that you heard Joel on next week last week 1036 01:11:58.760 --> 01:12:02.399 and now with brother Si is here with us and Joel, and there's a 1037 01:12:02.439 --> 01:12:06.000 lot of stuff we have to talk about for people, for taxes and moving 1038 01:12:06.039 --> 01:12:11.359 forward. But the cool thing is is putting this partnership together. I like 1039 01:12:11.399 --> 01:12:14.760 them, they like us. It's perfect because we both want to grow. 1040 01:12:15.159 --> 01:12:18.399 We both feel that the client comes first. We both will sit with you 1041 01:12:18.600 --> 01:12:23.279 and talk to you before we charge you. If you do business with us, 1042 01:12:23.279 --> 01:12:28.039 of course we charge you and then and just go from there. So 1043 01:12:28.079 --> 01:12:31.439 the mentality is right, it's a client comes first, right, and we 1044 01:12:31.479 --> 01:12:34.800 all know what we're doing with a lot of experience in there. So it's 1045 01:12:34.800 --> 01:12:39.720 good. Welcome Si and welcome Joel. See you guys again, great to 1046 01:12:39.760 --> 01:12:43.119 be back. Good. All right, So we're coming up on tax season. 1047 01:12:43.199 --> 01:12:45.359 Obviously, the biggest thing that people want to be talking about is how 1048 01:12:45.359 --> 01:12:49.680 do I make my taxable income lower? So let's talk a little bit about 1049 01:12:49.680 --> 01:12:55.039 the strategies. Most oftentimes the predominant one is retirement funding, right, so 1050 01:12:55.079 --> 01:12:59.159 let's talk a little bit about what those accounts are, what type of deduction 1051 01:12:59.279 --> 01:13:01.399 you are normally gonna be able to see? Absolutely? So yeah, in 1052 01:13:01.399 --> 01:13:03.880 general, as the theme comes up, and you're spot on, Todd, 1053 01:13:03.880 --> 01:13:06.720 people don't generally come to the office and say, you know what, how 1054 01:13:06.760 --> 01:13:10.439 do I pay more in taxes? I'd really like you to help me with 1055 01:13:10.479 --> 01:13:14.359 this. Doesn't matter what side of the aisle you're on. Everybody comes in 1056 01:13:14.399 --> 01:13:18.479 and oh, I wouldn't wind paying more taxes? Go ahead. No one's 1057 01:13:18.479 --> 01:13:23.439 stopping you. No, no, uh, it hasn't happened yet. I'll 1058 01:13:23.439 --> 01:13:30.600 have to make sure I do it. But you're spot on on the retirement 1059 01:13:30.640 --> 01:13:34.319 accounts and whatnot. So do we generally look at it in three different areas 1060 01:13:34.479 --> 01:13:40.439 of how you can affect the tax savings, when, how and to what 1061 01:13:40.600 --> 01:13:43.680 extent. So when you pay the taxes is one of the major factors, 1062 01:13:43.680 --> 01:13:46.039 and that's retirement plans and things like that come into play where you can defer 1063 01:13:46.520 --> 01:13:50.119 in control to when right you can put it into a ROTH. Still take 1064 01:13:50.159 --> 01:13:54.279 the tax hit now, but protect the upside on the future, on the 1065 01:13:54.319 --> 01:14:00.239 future or traditional save that tax money now. And I've always told people that 1066 01:14:00.479 --> 01:14:03.520 tax free growth that time period is what really matters, right because if you're 1067 01:14:03.520 --> 01:14:08.720 below fifty, it's really easy to outpace that tax hit today that you're going 1068 01:14:08.800 --> 01:14:11.439 to you know, gonna be feeling because that tax free growth is going to 1069 01:14:11.520 --> 01:14:15.199 offset that throughout the years. It is just looking at the growth when that 1070 01:14:15.319 --> 01:14:18.399 But some people aren't eligible for the WROTH, and there's a back door depending 1071 01:14:18.439 --> 01:14:23.680 on some of the circumstances that someone might be exposed to. But it's a 1072 01:14:23.720 --> 01:14:29.039 common misunderstanding that you don't have an option to get into a ross based on 1073 01:14:29.119 --> 01:14:33.279 income. Sometimes I hear about that backdoor loth Okay, yep, without going 1074 01:14:33.319 --> 01:14:38.159 down a bad path, talk to me about the back door wealth. Yeah, 1075 01:14:38.239 --> 01:14:41.199 So keeping it real simple and there's logistics to everything, right, But 1076 01:14:42.399 --> 01:14:45.880 if you don't have a traditional ira currently, and that becomes a factor in 1077 01:14:45.640 --> 01:14:47.760 the in the details of it, which we'll stay out of for now, 1078 01:14:48.760 --> 01:14:54.039 you can put monies into a traditional ira and then convert it to a roth. 1079 01:14:54.319 --> 01:14:57.920 The money's going into the traditional ira are not deductible because you're not qualified, 1080 01:14:58.199 --> 01:15:00.239 but the conversion to roth is qualified, and so they call it the 1081 01:15:00.279 --> 01:15:05.119 back door. Oh so you could put money into Why can't you put in 1082 01:15:05.479 --> 01:15:10.119 because you make too much money or something? First off, so because you 1083 01:15:10.119 --> 01:15:14.279 can't put tax deductible, but you can put after tax money into an IRA 1084 01:15:15.600 --> 01:15:18.319 and then just take that and move it into a wroth and you already paid 1085 01:15:18.359 --> 01:15:20.479 the taxes, right, you don't have to pay them again. There you 1086 01:15:20.520 --> 01:15:30.079 go. Why haven't I done that? Because because it's not as simple as 1087 01:15:30.079 --> 01:15:32.520 that, right, Because if you do have an IRA, could possibly there's 1088 01:15:32.520 --> 01:15:35.960 other rules involved and things like that. You make sure you the conversion if 1089 01:15:35.960 --> 01:15:39.880 you have a traditional position, the conversion into the wroth has to be done 1090 01:15:39.880 --> 01:15:42.840 on a pro radit basis of what's qualified non qualified. And now I'm in 1091 01:15:42.840 --> 01:15:45.640 my accounting rabbit hole? Should I just keep going? But if you no, 1092 01:15:45.640 --> 01:15:47.119 No, If you have a regular IRA though okay, which a lot 1093 01:15:47.159 --> 01:15:50.399 of people do, but you can't put any more in there? Could you 1094 01:15:50.439 --> 01:15:56.000 open up this non deductible ioway, you'd have to do it in a roundabout 1095 01:15:56.000 --> 01:16:00.520 way? No, okay, So that's not a backdoor back door. There's 1096 01:16:00.520 --> 01:16:03.079 only one backdoor. There's one path through the back door, but there's you 1097 01:16:03.159 --> 01:16:05.600 know, you can move your moneys into a four to one K or other 1098 01:16:05.640 --> 01:16:12.000 position that is not a traditional position. And they're before liberating the traditional to 1099 01:16:12.079 --> 01:16:14.479 be able to do the back door. So there's ways to get there, 1100 01:16:15.359 --> 01:16:16.880 it's just not through the So I think what you're saying here is if the 1101 01:16:16.920 --> 01:16:19.960 pre tax four one k there regular four one KVE it's in there, you 1102 01:16:20.000 --> 01:16:23.920 can do the back door if the plan has a wroth four one K part 1103 01:16:23.920 --> 01:16:28.439 of it there all right, So within the four one K structures you are 1104 01:16:28.439 --> 01:16:30.439 limited to the plans themselves, but on the IRA side of it, and 1105 01:16:30.479 --> 01:16:34.439 on the IRA side. It disregards the four to one K storyline. Okay, 1106 01:16:34.560 --> 01:16:38.199 so really the simplest thing is if you don't have an IOA because you 1107 01:16:38.279 --> 01:16:41.199 make too much money, because obviously if you're not making that much money, 1108 01:16:41.199 --> 01:16:43.359 you're not filling it up. You're not going to do the back door either. 1109 01:16:43.760 --> 01:16:45.520 But if you if you're filling up all your timing plans and you want 1110 01:16:45.560 --> 01:16:48.920 to put another what is it, seven thousand dollars now, yeah, eight 1111 01:16:48.920 --> 01:16:53.359 thousand for over fifty Yeah, okay, then there's a way to back door 1112 01:16:53.399 --> 01:16:57.079 this thing. Yep. Okay, all right, I'm going to do that. 1113 01:16:57.840 --> 01:17:00.600 Yep. It's it's a great opportunity. Now, four one ks are 1114 01:17:00.640 --> 01:17:04.960 the biggest opportunity for tax savings because the limits of them. Right, So 1115 01:17:05.520 --> 01:17:09.960 those limits, I believe that for twenty four is twenty three thousand, I 1116 01:17:10.039 --> 01:17:13.239 get the right twenty two five, twenty two five, for twenty three, 1117 01:17:13.680 --> 01:17:16.079 twenty three, and then over fifty you can get up to what thirty thirty 1118 01:17:16.119 --> 01:17:20.079 total seven and a half more. So you know, taking off thirty thousand, 1119 01:17:20.119 --> 01:17:24.239 your tax blow income potentially is a lot more than eight thousand, it 1120 01:17:24.319 --> 01:17:27.880 is, right, So that's why normally fall do you recommend that four on 1121 01:17:27.960 --> 01:17:30.720 K is kind of the first bet to go to, or is do you 1122 01:17:30.800 --> 01:17:33.199 have an IRA first? Or how's that strategy? It look like you bet. 1123 01:17:33.239 --> 01:17:35.760 So if you were to give me just purely from a tax all lse 1124 01:17:35.800 --> 01:17:40.279 equal storyline, the number one thing you would do is fully fun in HSA 1125 01:17:40.319 --> 01:17:44.920 if you qualify. It is the only thing I know that is never taxed. 1126 01:17:45.600 --> 01:17:47.359 You don't your tax free money goes in, you don't pay tax on 1127 01:17:47.399 --> 01:17:50.880 the money that you earn to put it fund it. It accumulates tax free, 1128 01:17:50.880 --> 01:17:54.159 and when you take it out, if it's for medical related purposes, 1129 01:17:54.199 --> 01:17:57.439 it comes out tax free, never taxed anywhere. The only thing I know 1130 01:17:57.479 --> 01:18:00.039 that does that. Do you said if you have Medicare? Yep, well, 1131 01:18:00.199 --> 01:18:03.399 any Medicare related costs, so it could be deductions, it could be 1132 01:18:03.840 --> 01:18:10.079 anything I have to build is the Medicare bill premium? Is that able? 1133 01:18:10.319 --> 01:18:12.800 So if you have it pre funded, you can't have an HSA at the 1134 01:18:12.800 --> 01:18:15.840 time that you're actively in Medicare. But if you have a pre existing plan, 1135 01:18:15.880 --> 01:18:17.439 you could have a billion dollars in an HSA and fund everything you have 1136 01:18:17.520 --> 01:18:21.840 medical related so by the time you start, by the time you start medicare. 1137 01:18:21.960 --> 01:18:25.880 The HSA has to be drained, not drained. You could have a 1138 01:18:25.920 --> 01:18:29.560 billion, it can be already in there, it just can't. Then okay, 1139 01:18:29.720 --> 01:18:35.239 after you start, you can't back door keep your post side door roof. 1140 01:18:35.359 --> 01:18:38.960 I don't know, tell me how to climb. Hsas again, are 1141 01:18:39.039 --> 01:18:42.359 limited to a kind of small limit for most plans, right, it's like 1142 01:18:42.760 --> 01:18:45.359 seven or something they are. It's I want to say, it's seventy seven 1143 01:18:45.399 --> 01:18:48.960 to fifty for family plus a thousand ketchup if fifty year older, I think 1144 01:18:48.960 --> 01:18:51.720 on that one, and then thirty eight fifty for non family, right, 1145 01:18:51.840 --> 01:18:56.800 yeap, So it is relatively limited. So first HSA, so then yeah, 1146 01:18:56.920 --> 01:18:58.880 or then you get into the hey, does your four one K have 1147 01:18:58.920 --> 01:19:00.640 a match? You have somebody's other things? Hey, grab that match because 1148 01:19:00.640 --> 01:19:05.000 that's real money too. But as far as otherwise, yes, okay, 1149 01:19:05.119 --> 01:19:10.479 max out that HSA then for one k yep. And then if we have 1150 01:19:10.560 --> 01:19:14.600 leftover money where we go then hey, ira, even if you have to 1151 01:19:14.640 --> 01:19:17.159 back door, okay, And then if there's any more money after that, 1152 01:19:17.439 --> 01:19:21.359 is there anything else I could do? There's a whole plethora of things you 1153 01:19:21.359 --> 01:19:25.039 can do during the tax here at the end of the tax year. As 1154 01:19:25.039 --> 01:19:28.560 we're sitting here mostly talking twenty twenty three people coming into the office or looking 1155 01:19:28.560 --> 01:19:32.359 to have you know, what happened last year be addressed. The other things 1156 01:19:32.479 --> 01:19:36.359 are to look forward to next year. An example of that I would have 1157 01:19:36.399 --> 01:19:42.520 people consider, particularly for the small business owners, review their corporate structure type. 1158 01:19:42.600 --> 01:19:45.479 So an S corporation election, for example, has to be filed by 1159 01:19:45.479 --> 01:19:51.079 March fifteenth to qualify for that calendar year forward, and that has incredible potential 1160 01:19:51.760 --> 01:19:57.720 savings and structural value things to consider. Yeah, we talked about that multiple 1161 01:19:57.760 --> 01:20:00.560 times with John about the S corp. Not only on the tax savings, 1162 01:20:00.560 --> 01:20:02.800 but then the ability to have retirement plans set up as formal k's and all 1163 01:20:02.840 --> 01:20:08.279 kinds of profit sharing the things that could be added is very beneficial for business 1164 01:20:08.279 --> 01:20:13.720 owners. So what were the three things? When? How? And then 1165 01:20:13.760 --> 01:20:15.640 to what extent? To what extent? So have we covered to what extent? 1166 01:20:15.720 --> 01:20:19.279 Ye? Not yet? Okay, So the remaining gem there is one 1167 01:20:19.319 --> 01:20:23.520 of the beauties of being in Arizona. So we hear it often referred to 1168 01:20:23.560 --> 01:20:28.800 as Arizona tax credits, and there's a lot of confusion about this everywhere. 1169 01:20:29.239 --> 01:20:31.880 Regularly we spend a lot of time in the office and trained everybody in the 1170 01:20:31.920 --> 01:20:35.760 office to be generally familiar to explain this to folks. And I would characterize 1171 01:20:35.760 --> 01:20:41.640 it slightly differently to help people understand, and that is that Arizona tax payers 1172 01:20:42.199 --> 01:20:45.039 get to say where their tax moneys go. If you think there's a homeless 1173 01:20:45.039 --> 01:20:48.439 problem, you can say, your tax money goes to homeless problem. You 1174 01:20:48.439 --> 01:20:51.920 think education should be funded better, you can say your tax money goes to 1175 01:20:51.920 --> 01:20:57.000 fund education and so forth. And people don't really understand that they hear tax 1176 01:20:57.039 --> 01:21:00.359 credit. They're confused and whatnot. But that's what it is. You get 1177 01:21:00.399 --> 01:21:03.840 to say. If you're a taxpayer, there's four categories where you can say, 1178 01:21:03.880 --> 01:21:06.760 up to a certain amount, where your tax money goes. And as 1179 01:21:06.920 --> 01:21:12.359 a married couple, what can you contribute it's a married couple. Those four 1180 01:21:12.399 --> 01:21:16.680 categories total almost five thousand dollars. Okay, so four hundred I know can 1181 01:21:16.720 --> 01:21:21.960 go to a public school, that's correct, right, yep. Which if 1182 01:21:21.960 --> 01:21:25.600 you need someplace to go, I know a good football team and down at 1183 01:21:25.640 --> 01:21:30.439 Tucson Eye to deliver your four hundred dollars. FULD appreciate it. It's a 1184 01:21:30.479 --> 01:21:32.039 tax credit, so you pay it in you get it out. Yep. 1185 01:21:32.079 --> 01:21:35.680 It's huge saying hey, Arizona, want my tax money to help fund twoths 1186 01:21:35.680 --> 01:21:41.920 on high school football, not high school football, the other ones that you 1187 01:21:41.960 --> 01:21:45.359 could be saving on our So the other categories, there's also the non public 1188 01:21:45.359 --> 01:21:51.000 schools and that total is twenty six o nine for married and then there's general 1189 01:21:51.079 --> 01:21:56.600 charitable organizations which is eight hundred and forty one, and qualified foster care organizations 1190 01:21:56.600 --> 01:21:59.760 which is one thy fifty one and those last two who had been eight hundred 1191 01:21:59.760 --> 01:22:02.600 and firs for a long time, but they've started adjusting those for inflation with 1192 01:22:02.680 --> 01:22:09.680 twenty twenty three teens two the qualified charitable organizations and the qualified foster care words 1193 01:22:09.960 --> 01:22:13.000 and what was the other full the eight hundred and fifty one? I thought 1194 01:22:13.000 --> 01:22:15.800 that's what that was for. Yep. The eight forty one is the qualified 1195 01:22:15.880 --> 01:22:20.199 charitable org And what's the difference between them and the other qualified profitable so the 1196 01:22:20.279 --> 01:22:28.039 foster care So there's a okay subcategory for foster care specifically okay, And something 1197 01:22:28.079 --> 01:22:30.359 that I like to bring up with our financial planning software is our ability to 1198 01:22:30.520 --> 01:22:34.239 look at taxes throughout retirement. Seeing that you're going to have sold security earned 1199 01:22:34.279 --> 01:22:36.520 income, you can play with all the other earned income that can show up, 1200 01:22:36.520 --> 01:22:40.439 but then we can play with things like raw conversions, seeing how much 1201 01:22:40.479 --> 01:22:43.760 we do, what kind of bracket that sends them into, and also potentially 1202 01:22:43.800 --> 01:22:46.039 what type of tax savings we could be looking at, because our software will 1203 01:22:46.079 --> 01:22:50.319 also project out what growth will happen in that wrath based on a Monte Carlo 1204 01:22:50.359 --> 01:22:55.520 simulation. So talk to us. I know I sent you that the tax 1205 01:22:55.560 --> 01:22:58.920 planning tool. What are the kind of things that you know people should be 1206 01:22:58.960 --> 01:23:02.760 thinking about in retirement with qualified charitable distributions of who else? Roth conversions? 1207 01:23:03.239 --> 01:23:06.159 Yeah, absolutely spot on. I think the key takeaway there, Todd is 1208 01:23:06.279 --> 01:23:11.640 there's a number of dynamic considerations and that's really where the financial plan comes into 1209 01:23:11.640 --> 01:23:15.680 the storyline, and then the tax consideration of that being a key component of 1210 01:23:15.720 --> 01:23:18.439 that overall plan and strategy. There are a very large number of them, 1211 01:23:18.439 --> 01:23:24.119 and maybe we'll have a chance to explore that in future conversations, but I 1212 01:23:24.119 --> 01:23:27.479 think one that you that I would call out up front here is the qualified 1213 01:23:27.560 --> 01:23:30.560 charitable distribution so that when you are subject rm DS, that is an opportunity 1214 01:23:30.600 --> 01:23:35.159 to really understand. We'll continue that after the break with coming up Johnson Brothers. 1215 01:23:35.159 --> 01:23:39.800 I appreciate you being here, Joel on Si. This is the Moneymount 1216 01:23:39.800 --> 01:23:42.800 of Show. We appreciate you listening. Stay tuned. We've got some more 1217 01:23:42.840 --> 01:23:45.560 stuff to talk about in the next segment. Welcome back, everybody. This 1218 01:23:45.640 --> 01:23:50.800 is Dean Greenberg Money Mattery Show. Well here with the Johnson Brothers accountants CPAs. 1219 01:23:51.640 --> 01:23:57.159 What else you do consulting business taxes? And now it's a tax season. 1220 01:23:57.479 --> 01:24:01.640 What are you seeing? Mostly we're seeing all kinds of excited people who 1221 01:24:02.239 --> 01:24:06.119 are our new best friends again for the start of the year. Well, 1222 01:24:06.119 --> 01:24:10.640 that's always fun, you know. I want to talk a little bit about 1223 01:24:10.640 --> 01:24:14.079 it, like joint accounts, broker's accounts, because right now ten percent of 1224 01:24:14.079 --> 01:24:17.960 the stocks by market size is equals seventy five percent of the US stock market. 1225 01:24:18.079 --> 01:24:21.359 What that means is a lot of people have huge positions in Microsoft, 1226 01:24:21.439 --> 01:24:25.479 right Google, Apple, things that they bought twenty years ago now have these 1227 01:24:25.560 --> 01:24:29.760 huge unrealized gains that they don't want to take because the message with they're earned 1228 01:24:29.800 --> 01:24:34.920 income. What are some strategies you've ever seen with these potential unearned capital gains? 1229 01:24:35.199 --> 01:24:40.720 How to mitigate those risks and how to plan around them throughout retirement. 1230 01:24:42.680 --> 01:24:45.920 So it depends first on what type of accounts those are in. So if 1231 01:24:45.960 --> 01:24:48.359 they're in retirement type of accounts, then who cares right right or roll? 1232 01:24:49.359 --> 01:24:56.319 When they're outside of the retirement accounts, any capital gain and loss can potentially 1233 01:24:56.359 --> 01:25:00.359 offset any other capital gain and loss. So you just look through the actrum 1234 01:25:00.439 --> 01:25:05.000 in the consideration for a given client and scenario where there might be lost opportunities 1235 01:25:05.079 --> 01:25:10.079 that they can couple to the gains and just sort of batch those storylines together. 1236 01:25:10.479 --> 01:25:13.920 The other thing, honestly that we've been talking more and more with people 1237 01:25:13.960 --> 01:25:17.199 about is as you look at the rate horizon, the tax structure horizon, 1238 01:25:17.640 --> 01:25:21.680 right now, cap gains are at a nice relative low rate, and we've 1239 01:25:21.680 --> 01:25:28.680 actually had more conversations about actually taking the cap gains hits now versus deferral section 1240 01:25:28.760 --> 01:25:30.760 ten thirty one. You know, you pick your type of deferral story in 1241 01:25:30.840 --> 01:25:36.760 order to capture even at a tax hit currently the ones that exist today versus 1242 01:25:36.800 --> 01:25:40.319 the higher ones probable tomorrow. Yeah, so I explained more about like the 1243 01:25:40.359 --> 01:25:43.439 tax horizon right now, long term gains are roughly fifteen percent, and then 1244 01:25:43.479 --> 01:25:45.880 shorts and games are obviously more. But what about what are you seeing on 1245 01:25:45.920 --> 01:25:48.680 the horizon. I mean, obviously they're not going to go lower, right, 1246 01:25:48.680 --> 01:25:51.479 I don't know if I haven't seen anything specific numbers. I don't know 1247 01:25:51.520 --> 01:25:58.279 if you have. So there's a large number of numbers being talked about, 1248 01:25:58.319 --> 01:26:00.960 which is common for this time of the year, when we're an election year 1249 01:26:00.000 --> 01:26:04.199 and so forth. The platforms are being established, the rhetoric associated with, 1250 01:26:04.359 --> 01:26:09.039 hey, I have education as my focus, let's say, and how am 1251 01:26:09.079 --> 01:26:12.800 I going to fund that storyline? And then how do you That's where you 1252 01:26:12.880 --> 01:26:15.880 juggle some of that backstory and the tax structures, So those will start coming 1253 01:26:15.960 --> 01:26:20.720 up on the horizon here they all basically say higher. I mean, if 1254 01:26:20.720 --> 01:26:25.079 you look at the federal numbers, what's the twenty twenty three budget look like. 1255 01:26:25.199 --> 01:26:29.239 You get two point two trillion from individual income taxes, You get another 1256 01:26:29.279 --> 01:26:32.399 one point eight trillion round numbers from Social Security Medicare. So four trillion of 1257 01:26:32.439 --> 01:26:36.600 the four point four trillion federal budget round numbers is all through this individual tax 1258 01:26:36.680 --> 01:26:41.000 direct line. And they're already spending one point seven trillion more than that, 1259 01:26:41.079 --> 01:26:44.079 which is basically the total Social Security Medicare that were holding from everybody. So 1260 01:26:44.159 --> 01:26:45.600 just double all that, right, So you know, as long as everybody's 1261 01:26:45.600 --> 01:26:48.800 comfortable taxes going up forty five percent or so, don't worry about a thing. 1262 01:26:48.960 --> 01:26:51.439 Just roll with it. It's going to be great. Well now the 1263 01:26:51.479 --> 01:26:55.279 time, I mean it didn't get much legs, but they were talking about 1264 01:26:55.359 --> 01:26:58.479 tax and unrealized gains, which I mean, I don't think that could ever 1265 01:26:58.520 --> 01:27:01.479 go through. Yeah, a lot of people off. Yes, well, 1266 01:27:01.479 --> 01:27:04.680 then we'd have to worry about talking about realized gains, unrealized gains and losses. 1267 01:27:04.720 --> 01:27:08.279 I mean they're really just trying to help us, aren't they. Yeah, 1268 01:27:08.279 --> 01:27:11.199 I mean yes, but I don't know how they could ever go through 1269 01:27:11.199 --> 01:27:14.479 with that, how would even really work in that sense? But yeah, 1270 01:27:14.479 --> 01:27:15.680 I mean talking about all the taxes and stuff. So you guys just bought 1271 01:27:15.840 --> 01:27:19.800 your new firm and talk about the whole process with bringing new clients on and 1272 01:27:19.800 --> 01:27:25.000 how you're going about that. Yeah, what can a client experience or expect? 1273 01:27:26.039 --> 01:27:30.119 Yeah? Absolutely, So we are blessed to be taking over from a 1274 01:27:30.159 --> 01:27:35.479 practitioner who practiced very well and as you all know from your relationship with them, 1275 01:27:36.079 --> 01:27:41.840 and so it's a very continued carrying the torch forward. We have a 1276 01:27:41.880 --> 01:27:45.359 great team in place, some of the infrastructure he had is continuing on with 1277 01:27:45.439 --> 01:27:51.000 us, and they should expect a very welcoming, a very client oriented, 1278 01:27:51.039 --> 01:27:57.960 customer service supporting response. You know a lot of people I've always talked about 1279 01:27:57.960 --> 01:28:00.159 it. You don't want a mechanic on the other side of you, right, 1280 01:28:00.199 --> 01:28:03.479 someone who just constantly find issues, find more reasons to charge you more 1281 01:28:03.520 --> 01:28:06.399 and more money. And so I think the reason that we get along so 1282 01:28:06.560 --> 01:28:11.479 well is the fact that you're going to give the clients straight what they actually 1283 01:28:11.479 --> 01:28:15.000 need to know, right, not the minutia, not trying to sound smarter 1284 01:28:15.079 --> 01:28:17.439 than they are, or trying to confuse them to make them feel like, 1285 01:28:17.520 --> 01:28:20.199 yeah, they actually do need to pay you this money. It's just giving 1286 01:28:20.239 --> 01:28:23.560 them straight what you need to know, how you need to know it, 1287 01:28:23.680 --> 01:28:26.399 and what to do for it, right. Yeah. And further too, 1288 01:28:26.439 --> 01:28:30.319 that's those things absolutely, And further to that, it's the opportunities, looking 1289 01:28:30.359 --> 01:28:34.760 at the opportunities rather of what they should be considering forward. Right. The 1290 01:28:34.800 --> 01:28:41.479 opportunity of going through their circumstances for tax purposes gives us the insight to help 1291 01:28:42.039 --> 01:28:45.720 them navigate that future. Right. So we talked a little bit about twenty 1292 01:28:45.760 --> 01:28:49.000 twenty three taxes and what we can do and there's a number of there's some 1293 01:28:49.039 --> 01:28:53.000 opportunities, but not nearly as many as there are during the year. Yeah, 1294 01:28:53.039 --> 01:28:55.840 and that all calms back to the financial plan that we keep harping on, 1295 01:28:55.880 --> 01:28:59.119 because without that, you are shooting at the hip. You have no 1296 01:28:59.239 --> 01:29:02.159 idea what potential tax implications you'd be putting yourself in. But more than that, 1297 01:29:02.199 --> 01:29:05.039 when it comes to taxable income, it also affects in retirement, your 1298 01:29:05.079 --> 01:29:08.720 medicare premiums, right, how much you're going to be paying on that, 1299 01:29:09.039 --> 01:29:12.199 what type of tax rate you could be paying on, roth conversions, all 1300 01:29:12.239 --> 01:29:15.279 types of things that could be strategized to really help you into the future. 1301 01:29:15.319 --> 01:29:19.479 I always talk about with rock conversions, if you've started r and ds, 1302 01:29:19.520 --> 01:29:24.079 it's really hard for them to make sense because you have so much earned income 1303 01:29:24.119 --> 01:29:27.239 at that point. It's you can't really see it. For most people, 1304 01:29:27.279 --> 01:29:30.880 I see if they can retire and haven't turned on Social Security and they haven't 1305 01:29:30.920 --> 01:29:33.199 started rm ds, that's that window where you could, you know, make 1306 01:29:33.279 --> 01:29:38.279 some some changes. But other than that, once once you kind of turn 1307 01:29:38.319 --> 01:29:41.359 on SoSE security, aren't Rock conversions don't really seem to do it for me. 1308 01:29:42.039 --> 01:29:44.880 Yeah, it depends on the individual circumstance. But as a general rule, 1309 01:29:44.920 --> 01:29:46.520 I think you're spot on. So I mean in sense you're working in 1310 01:29:46.520 --> 01:29:49.279 tandem with the financial plan that we do with our clients. It helps you 1311 01:29:49.319 --> 01:29:54.760 a lot right on how you could go about their taxes absolutely without one without 1312 01:29:54.800 --> 01:29:57.720 the other. You're sitting on a one legged stool, and it's an incredible 1313 01:29:57.760 --> 01:30:00.399 balance act. Yeah, yeah, exactly. And that's why we to bring 1314 01:30:00.439 --> 01:30:02.279 everything together so we can give you the holistic plan of what you're looking at 1315 01:30:02.319 --> 01:30:05.239 financially, through the investment side, through the tax side, through the state 1316 01:30:05.239 --> 01:30:09.239 planning side. That's why we've been trying so long to get this all together. 1317 01:30:09.680 --> 01:30:12.439 Yes, and then we can dive into a little bit of the minutia 1318 01:30:12.479 --> 01:30:15.720 of what you're talking about with es Corp. Because we have a lot of 1319 01:30:15.760 --> 01:30:18.520 business owners that talk that listen to this show. What are the things they 1320 01:30:18.520 --> 01:30:23.840 need to know about classification on their businesses and things that they're positentially missing out 1321 01:30:23.840 --> 01:30:25.600 on. I mean, for one that I keep harping on, it's the 1322 01:30:25.600 --> 01:30:28.920 four one K tax credits. I mean, they are literally paying for your 1323 01:30:28.920 --> 01:30:31.560 four one K the first three years, almost five years they're in their real 1324 01:30:31.600 --> 01:30:34.000 credits. It's not the doctor, and then you get the deductions of the 1325 01:30:34.000 --> 01:30:36.760 match on top of that. So it's for the first five year, it's 1326 01:30:36.800 --> 01:30:41.640 all but benefits for you. Why do you think, you know, businesses 1327 01:30:41.680 --> 01:30:45.359 aren't taking advantage of that, or what are some of the pitfalls you're seeing? 1328 01:30:45.359 --> 01:30:48.760 If I had to speculate why they're not taking advantage, I don't think 1329 01:30:48.840 --> 01:30:54.119 they properly are informed on what that opportunity really looks like, like you just 1330 01:30:54.159 --> 01:30:57.359 described, and some of those things are relatively new. Credit for the four 1331 01:30:57.359 --> 01:31:00.479 to one K set up and so forth, that's all recent vintage, so 1332 01:31:00.560 --> 01:31:04.479 that I think awareness is a key part on that, and then having someone 1333 01:31:04.520 --> 01:31:09.720 capable to do it right, understanding someone who can carry that plan, hold 1334 01:31:09.720 --> 01:31:12.039 that plan, and what the logistics of it are. So if you go 1335 01:31:12.119 --> 01:31:15.520 back and forward K legacy a little bit, the burden of a foreign K 1336 01:31:15.680 --> 01:31:18.960 plan wasn't insignificant, right, but the opportunities now in the way it's structured, 1337 01:31:19.039 --> 01:31:21.640 I think that that is more of a thing of the past. Yeah. 1338 01:31:21.680 --> 01:31:26.039 I mean the people we partner with vest Well, they make it so 1339 01:31:26.199 --> 01:31:29.800 easy and they're a fintech company, which that's how every thing's going these days, 1340 01:31:29.880 --> 01:31:32.680 right, making things mobile and everything is so easy where they take care 1341 01:31:32.680 --> 01:31:35.560 of the administration side, the record keeping, that business owner doesn't have to 1342 01:31:35.560 --> 01:31:40.319 worry about any of the administrative burden. And then Greenberg Financial takes care of 1343 01:31:40.319 --> 01:31:44.239 the investment side, the fiduciary side, making sure all the investments are suitable 1344 01:31:44.399 --> 01:31:46.880 and actually educating their employees about their options as well. But from a business 1345 01:31:46.880 --> 01:31:50.399 owner's standpoint, the only thing you need to do is get some fidelity bond 1346 01:31:50.399 --> 01:31:53.760 coverage for your phone K plan. That's about it, you know what I 1347 01:31:53.840 --> 01:31:57.760 mean. And then you can sit back accept in deductions on an employer basis, 1348 01:31:57.800 --> 01:32:00.560 and also the credits that you're going to get in the first couple of 1349 01:32:00.640 --> 01:32:03.520 years for setting up the plan, yep, And that's all upfront, and 1350 01:32:03.560 --> 01:32:06.119 then you actually have a plan and now you set those moneiess aside, and 1351 01:32:06.119 --> 01:32:09.720 now you're not paying income tax on that depend on the plan type where auth 1352 01:32:09.720 --> 01:32:14.439 they're traditional, and it's just an incredible sequence of value propositions from there. 1353 01:32:14.520 --> 01:32:16.039 Yeah. Because then also as a business owner, your W two can get 1354 01:32:16.079 --> 01:32:18.520 lowered as well, because if you don't have a W two, you're probably 1355 01:32:18.560 --> 01:32:23.960 what sole proprietorship right now commonly, So what are the things that those people 1356 01:32:24.039 --> 01:32:26.319 are sole proprietors right now, what are they missing out on them? They 1357 01:32:26.319 --> 01:32:30.600 don't know. On the other side, you always have to look at the 1358 01:32:30.640 --> 01:32:33.600 scenario. There's nuances within the code with regards to types of businesses and things 1359 01:32:33.640 --> 01:32:38.119 that go in and out on different structures, so it's not always a one 1360 01:32:38.199 --> 01:32:42.760 form fits all, but there are incredible number of deductions and flow throughs that 1361 01:32:42.800 --> 01:32:46.039 you can get and moneies that you can save with some of these other structures. 1362 01:32:47.359 --> 01:32:53.199 For example, would be if you bring one hundred thousand dollars in your 1363 01:32:53.199 --> 01:32:56.039 business on the bottom line, and that's on your schedule, See, you 1364 01:32:56.079 --> 01:32:59.159 pay the self employment tax, you pay the income tax, you pay everything 1365 01:32:59.199 --> 01:33:04.520 on the whole whole themount If really only half of that was legitimately salary moneies 1366 01:33:04.520 --> 01:33:09.800 and the rest of it was gains that you had as being the owner of 1367 01:33:09.840 --> 01:33:13.640 the business, then if you were in a different structure, just talking to 1368 01:33:13.680 --> 01:33:15.680 the tax side of this, right then you would not be subject to the 1369 01:33:15.680 --> 01:33:18.640 self employment tax on the part that was the business earnings. You still pay 1370 01:33:18.640 --> 01:33:23.680 the income tax, but the self employment's fifteen percent, So in that scenario, 1371 01:33:23.720 --> 01:33:27.199 is seventy five hundred dollars less than tax bill in a one hundred KSE 1372 01:33:27.199 --> 01:33:30.880 scenario where fifty salary and fifties flow through. And that's coming back to working 1373 01:33:30.960 --> 01:33:33.960 with a professional. I think you hit the nail on the head people just 1374 01:33:34.000 --> 01:33:38.640 not being advised. I mean, these are very complex structures, and people 1375 01:33:38.720 --> 01:33:41.520 don't go to school to learn about what an escore business or proprietorship. They 1376 01:33:41.520 --> 01:33:44.359 go to school how to make a business and how to build a business, 1377 01:33:44.359 --> 01:33:46.079 how to sustain a business, and then they get to the tax sided things 1378 01:33:46.119 --> 01:33:48.680 and they're like, yeah, I hate this part. So you know, 1379 01:33:49.039 --> 01:33:53.560 this is why it really makes sense to get in contact with these people because 1380 01:33:53.560 --> 01:33:56.520 not only would they meet with you free at first to make sure that they 1381 01:33:56.520 --> 01:33:59.760 can help you and see how they can help you, but then also you 1382 01:33:59.800 --> 01:34:02.119 can meet with us free financial plan. We work in tandem with each other. 1383 01:34:02.159 --> 01:34:05.760 We'll make sure that you are putting yourself in the best possible position to 1384 01:34:05.840 --> 01:34:10.720 succeed throughout retirement. Yep. I'm just worried about Dylan last week. He 1385 01:34:10.800 --> 01:34:13.000 was saying how you wanted to do all the accounting work and all that kind 1386 01:34:13.000 --> 01:34:15.399 of stuff. Yeah right, yeah, that's exactly what I was saying. 1387 01:34:15.119 --> 01:34:18.159 I'm good on that you guys can keep all that. What's uh, But 1388 01:34:18.680 --> 01:34:23.680 so what's your typical client Do you work more with business owners or individual taxes? 1389 01:34:23.800 --> 01:34:28.640 What are you looking for? Just anybody? So we are about Tucson, 1390 01:34:29.039 --> 01:34:31.520 and when you look at Tucson, Uh, we have the individuals. 1391 01:34:31.960 --> 01:34:35.520 There's certainly a volume of our clientele that is individual base. There is a 1392 01:34:35.560 --> 01:34:42.760 lot of small business owners in Tucson, people working incredibly hard, and those 1393 01:34:42.880 --> 01:34:45.560 are the folks that we find. We were able to make the a tremendous 1394 01:34:45.600 --> 01:34:50.239 value proposition toward help bridge that gap, that balance between For example, if 1395 01:34:50.239 --> 01:34:55.119 you don't know the flow through structures and how to consider the structures for your 1396 01:34:55.119 --> 01:34:59.720 business, you could be paying just tremendously more in taxes alone, never mind 1397 01:34:59.760 --> 01:35:02.319 some of the other considerations. Well, we're coming up on the end of 1398 01:35:02.319 --> 01:35:05.399 the show and I'm going to leave the listeners with this. Only fourteen percent 1399 01:35:05.399 --> 01:35:11.319 of American voters say they're better off financially under the current administration. Those fourteen 1400 01:35:11.319 --> 01:35:14.239 percent probably have a financial plan. So at the end of the day, 1401 01:35:14.600 --> 01:35:18.199 it's really important to you know, stay happy. At the end of the 1402 01:35:18.279 --> 01:35:21.319 day, we all want to be healthy. But Greenberg Financial Group, what 1403 01:35:21.359 --> 01:35:25.399 we really try to do is stay profitable.