1 00:00:30,980 --> 00:00:37,430 Suze: September 25, 2022 welcome everybody to the Women and Money 2 00:00:37,430 --> 00:00:42,440 Suze: podcast as well as everyone smart enough to listen. Before 3 00:00:42,440 --> 00:00:45,940 Suze: we begin Suze S chool, I just want to make sure 4 00:00:45,940 --> 00:00:49,559 Suze: that I wish a very happy new year. A happy 5 00:00:49,560 --> 00:00:54,280 Suze: Rosh Hashana to all our Jewish friends out there. 6 00:00:54,960 --> 00:00:59,280 Suze: All right. Are we all ready to begin? 7 00:01:00,000 --> 00:01:03,510 Suze: That was quite the week, wasn't it last week with 8 00:01:03,510 --> 00:01:05,510 Suze: the stock market? Did you follow it? 9 00:01:06,270 --> 00:01:09,490 Suze: Did you see your statements, do you look on your 10 00:01:09,490 --> 00:01:14,070 Suze: computer to see what your money is doing? Maybe yes, maybe. No. 11 00:01:14,520 --> 00:01:15,900 Suze: But if you haven't, 12 00:01:16,610 --> 00:01:20,009 Suze: the market last week had one of its worst weeks 13 00:01:20,010 --> 00:01:23,880 Suze: and it actually essentially brought it to the low of 14 00:01:23,890 --> 00:01:25,610 Suze: June of this year. 15 00:01:26,440 --> 00:01:30,530 Suze: Now, many people are starting to say that these markets 16 00:01:30,540 --> 00:01:32,550 Suze: are going to continue lower 17 00:01:33,500 --> 00:01:37,660 Suze: That things are not going to get better. Sure, sure. 18 00:01:37,660 --> 00:01:39,380 Suze: Maybe we could see it go up a week or 19 00:01:39,380 --> 00:01:42,680 Suze: two next week or the week after that. But the 20 00:01:42,690 --> 00:01:47,150 Suze: intermediate term, the long term people are thinking that it 21 00:01:47,150 --> 00:01:52,980 Suze: is absolutely possible. It could go down maybe another 14% 22 00:01:52,980 --> 00:01:55,670 Suze: from here. Time will tell. 23 00:01:56,540 --> 00:02:01,670 Suze: But it's also important for you to understand what happened 24 00:02:01,670 --> 00:02:06,940 Suze: last week and why? Why did the markets really take? 25 00:02:07,550 --> 00:02:10,590 Suze: And the answer to that question is very simple. 26 00:02:11,350 --> 00:02:15,200 Suze: The Feds continued to raise the Fed funds rate last 27 00:02:15,200 --> 00:02:16,919 Suze: Wednesday was their meeting 28 00:02:17,880 --> 00:02:22,330 Suze: and Chairman Powell came out and announced to everybody that 29 00:02:22,340 --> 00:02:26,500 Suze: they were going to raise another three quarters of 1% 30 00:02:26,550 --> 00:02:29,990 Suze: to bring the Fed funds rate up to about three 31 00:02:29,990 --> 00:02:32,000 Suze: and a quarter percent right in there. 32 00:02:33,110 --> 00:02:38,150 Suze: And not only did he say that he said, and 33 00:02:38,710 --> 00:02:42,859 Suze: we are going to continue to raise the Fed funds 34 00:02:42,860 --> 00:02:43,410 Suze: rate 35 00:02:44,070 --> 00:02:49,770 Suze: until inflation goes down from approximately 8% where it is 36 00:02:49,770 --> 00:02:53,079 Suze: right now down to two or 3%. And we are 37 00:02:53,080 --> 00:02:57,389 Suze: not going to stop until that happens. 38 00:02:58,490 --> 00:03:02,890 Suze: That stance said the way that he said it and 39 00:03:02,889 --> 00:03:05,420 Suze: I didn't exactly quote him. You should go look him 40 00:03:05,419 --> 00:03:07,380 Suze: up if you want his exact quote. But that was 41 00:03:07,380 --> 00:03:09,870 Suze: the essence that was taken away. 42 00:03:10,520 --> 00:03:17,269 Suze: Absolutely freaked all the traders and the money people out 43 00:03:17,320 --> 00:03:21,079 Suze: when it comes to stocks. And why is that? 44 00:03:22,010 --> 00:03:27,230 Suze: It is because when the Feds raise the Fed funds rate, 45 00:03:27,880 --> 00:03:33,239 Suze: most interest rates as you've already experienced, go up mortgage 46 00:03:33,240 --> 00:03:36,590 Suze: rates even though they're not technically connected to the Fed 47 00:03:36,590 --> 00:03:40,010 Suze: funds rate, they're technically connected just so you know, to 48 00:03:40,010 --> 00:03:44,680 Suze: the 10 year treasury, but mortgage rates go up, credit card, 49 00:03:44,680 --> 00:03:48,700 Suze: interest rates go up, interest on your savings accounts, go up, 50 00:03:48,710 --> 00:03:51,820 Suze: interest rate on your credit cards, go up, interest rate 51 00:03:51,830 --> 00:03:55,060 Suze: on everything goes up. 52 00:03:55,820 --> 00:04:00,370 Suze: And why do they want interest rates to go up. 53 00:04:00,380 --> 00:04:03,370 Suze: Just so you know, because obviously that's what they're doing. 54 00:04:03,380 --> 00:04:07,480 Suze: It's because the more it costs you to buy something, 55 00:04:08,240 --> 00:04:12,480 Suze: a home a car, whatever it is 56 00:04:13,150 --> 00:04:16,190 Suze: you're gonna start to say, I'll wait, I'm not gonna 57 00:04:16,190 --> 00:04:20,040 Suze: buy it. And the less you buy, the more the 58 00:04:20,040 --> 00:04:25,109 Suze: economy slows down and then inflation starts to come down 59 00:04:25,120 --> 00:04:29,620 Suze: as well. That is a very simplistic explanation, but I 60 00:04:29,620 --> 00:04:31,990 Suze: think it's one that you understand. 61 00:04:32,650 --> 00:04:38,570 Suze: But the reason that high interest rates are so damaging 62 00:04:38,570 --> 00:04:43,169 Suze: to the stock market is this, if you can remember 63 00:04:43,170 --> 00:04:46,719 Suze: just a few years ago, the interest rate on your 64 00:04:46,720 --> 00:04:51,659 Suze: savings accounts, on Treasuries, even mortgages were essentially nothing. 65 00:04:52,820 --> 00:04:57,890 Suze: The Feds wanted to stimulate the economy. They wanted you 66 00:04:57,890 --> 00:04:58,970 Suze: to spend. 67 00:04:59,560 --> 00:05:04,900 Suze: So to entice you to spend, they brought interest rates all 68 00:05:04,900 --> 00:05:08,380 Suze: the way down to zero. So you could buy things 69 00:05:08,380 --> 00:05:12,210 Suze: that normally you couldn't afford because the interest rate to 70 00:05:12,210 --> 00:05:14,799 Suze: finance those things was so little. 71 00:05:15,380 --> 00:05:18,560 Suze: But at the same time when they brought interest rates 72 00:05:18,560 --> 00:05:24,630 Suze: down to stimulate the economy, they also took away any 73 00:05:24,630 --> 00:05:29,690 Suze: decent interest rate from savings accounts, certificates of deposit, treasury, 74 00:05:29,690 --> 00:05:31,290 Suze: bill bonds, or notes. 75 00:05:32,339 --> 00:05:35,740 Suze: Because interest rates were so low didn't even make sense 76 00:05:35,740 --> 00:05:38,800 Suze: for you to put money in there. If you needed 77 00:05:38,810 --> 00:05:43,010 Suze: a return on your money, you couldn't get it anymore 78 00:05:43,029 --> 00:05:46,339 Suze: in banks or credit unions or Treasury because they weren't 79 00:05:46,339 --> 00:05:49,309 Suze: paying you an interest rate. So then what did all 80 00:05:49,310 --> 00:05:52,380 Suze: of you do? You decided you were going to put 81 00:05:52,380 --> 00:05:54,270 Suze: your money in the stock market 82 00:05:54,670 --> 00:05:58,000 Suze: because in the stock market at least you could get 83 00:05:58,000 --> 00:06:01,630 Suze: dividend yields, you could get growth on your money. The 84 00:06:01,630 --> 00:06:06,960 Suze: economy was growing, everything seemed really great and the market 85 00:06:06,970 --> 00:06:12,549 Suze: went up and up and up and up until inflation 86 00:06:12,560 --> 00:06:14,770 Suze: reared its ugly little head 87 00:06:15,490 --> 00:06:18,770 Suze: And then the Feds had to act as they did 88 00:06:18,770 --> 00:06:22,849 Suze: not believe if you remember the Feds kept saying inflation 89 00:06:22,850 --> 00:06:26,690 Suze: isn't bad we don't need to raise interest rates were fine. 90 00:06:26,690 --> 00:06:29,339 Suze: We have everything under control. They did one of the 91 00:06:29,339 --> 00:06:33,020 Suze: more horrific jobs of forecasting anybody ever could have done. 92 00:06:33,029 --> 00:06:36,410 Suze: But that's what happened all of a sudden they're hit 93 00:06:36,420 --> 00:06:39,570 Suze: with the fact that inflation is out of control. So 94 00:06:39,570 --> 00:06:42,560 Suze: now they're having to raise the Fed funds rate really 95 00:06:42,560 --> 00:06:43,890 Suze: really fast 96 00:06:44,150 --> 00:06:47,840 Suze: in order to get it under control. Then what happened 97 00:06:47,839 --> 00:06:52,980 Suze: when the Feds started to do that raise interest rates? 98 00:06:54,110 --> 00:06:59,039 Suze: That's when the market started to go down and down 99 00:06:59,070 --> 00:07:03,780 Suze: and down. And every time the Feds came back on 100 00:07:03,779 --> 00:07:07,029 Suze: the air after their meeting and they said they're going 101 00:07:07,029 --> 00:07:10,480 Suze: to continue to raise the Fed funds rate by x percent. 102 00:07:10,500 --> 00:07:14,160 Suze: The markets then maybe went up for a little but 103 00:07:14,160 --> 00:07:18,070 Suze: then continued on the track of going down and down 104 00:07:18,090 --> 00:07:19,000 Suze: and down. 105 00:07:19,690 --> 00:07:24,910 Suze: And the reason again that the markets go down is 106 00:07:24,920 --> 00:07:25,720 Suze: this 107 00:07:26,570 --> 00:07:31,470 Suze: because interest rates now are going up and you could 108 00:07:31,470 --> 00:07:35,900 Suze: get great interest rates. The Alliant Credit Union 18 months C. D. Fabulous. 109 00:07:35,900 --> 00:07:38,480 Suze: You should check it out. You could also if you 110 00:07:38,480 --> 00:07:41,480 Suze: want to tie your money up longer get 44 and 111 00:07:41,480 --> 00:07:42,700 Suze: a quarter percent 112 00:07:43,360 --> 00:07:46,770 Suze: and T notes all those kinds of things. But we'll 113 00:07:46,770 --> 00:07:49,930 Suze: talk about that in a little bit but as interest 114 00:07:49,930 --> 00:07:51,850 Suze: rates started to go up 115 00:07:52,530 --> 00:07:56,560 Suze: because the Fed started to raise them, everybody and the 116 00:07:56,560 --> 00:08:00,130 Suze: markets started to go down because people were afraid of 117 00:08:00,130 --> 00:08:03,540 Suze: the economy, people started to think, oh 118 00:08:04,310 --> 00:08:07,400 Suze: why not take my money out of the stock market, 119 00:08:07,720 --> 00:08:11,600 Suze: that's maybe a little risky. And get a high interest 120 00:08:11,600 --> 00:08:16,050 Suze: rate in fixed income investments such as bonds or Treasuries 121 00:08:16,050 --> 00:08:17,390 Suze: or things like that. 122 00:08:18,650 --> 00:08:20,840 Suze: Not only that, 123 00:08:21,540 --> 00:08:25,630 Suze: but what was also very interesting is that we live 124 00:08:25,640 --> 00:08:29,650 Suze: in a time when we really, really are a global 125 00:08:29,660 --> 00:08:30,510 Suze: economy 126 00:08:31,070 --> 00:08:34,339 Suze: and it's not just what happens here in the United States, 127 00:08:34,610 --> 00:08:39,150 Suze: it's what happens in europe is what happens in their 128 00:08:39,160 --> 00:08:41,200 Suze: economy as well. 129 00:08:41,950 --> 00:08:45,530 Suze: So over the past few months, you know that europe 130 00:08:45,530 --> 00:08:48,059 Suze: has been having a very hard time. I've been telling 131 00:08:48,059 --> 00:08:51,969 Suze: you that on the podcast because of the threat of 132 00:08:51,970 --> 00:08:55,579 Suze: the cut off of oil and natural gas, because of 133 00:08:55,580 --> 00:08:59,459 Suze: Russia and Ukraine and everybody's support of Ukraine. 134 00:09:00,000 --> 00:09:02,819 Suze: And while that has been happening, 135 00:09:03,690 --> 00:09:08,880 Suze: the Euro as well as the pound, their currencies, the 136 00:09:08,880 --> 00:09:12,870 Suze: euro for most of Europe, the pound for England has 137 00:09:12,870 --> 00:09:17,939 Suze: been going down and down and down in value. 138 00:09:18,620 --> 00:09:23,929 Suze: And that is because people over there have been taking 139 00:09:23,929 --> 00:09:29,220 Suze: their money sending it over here to the United States 140 00:09:29,230 --> 00:09:34,130 Suze: to buy Treasuries to buy certain things here, making our 141 00:09:34,130 --> 00:09:37,819 Suze: dollar go up and up and up. So right now 142 00:09:37,820 --> 00:09:40,400 Suze: we have an incredibly strong dollar 143 00:09:40,710 --> 00:09:44,740 Suze: and the Euro and pound is going down now, I 144 00:09:44,740 --> 00:09:47,260 Suze: just want you to put a pin in everything I'm 145 00:09:47,260 --> 00:09:49,070 Suze: saying at this moment in time. 146 00:09:49,650 --> 00:09:52,050 Suze: Do you remember when the Euro if you traveled to 147 00:09:52,050 --> 00:09:56,959 Suze: Europe was way up there, $1. 27. I mean it's 148 00:09:56,960 --> 00:10:01,000 Suze: been all over the place. Do you know right now 149 00:10:01,059 --> 00:10:05,710 Suze: if you went to Europe, do you know the euro 150 00:10:05,710 --> 00:10:11,170 Suze: is only 96 cents on the dollar. Our dollar is 151 00:10:11,170 --> 00:10:14,959 Suze: worth more than the euro at this point in time. 152 00:10:15,170 --> 00:10:17,490 Suze: So if you went over there and you bought something 153 00:10:17,490 --> 00:10:23,590 Suze: for €200 it actually would only cost you $193. 154 00:10:37,620 --> 00:10:40,160 Suze: The reason I'm also telling you this, I know I'm 155 00:10:40,160 --> 00:10:42,650 Suze: side tracking you but you just have to follow me 156 00:10:42,650 --> 00:10:46,350 Suze: on everything these days is that if you are planning 157 00:10:46,350 --> 00:10:49,540 Suze: to travel because so many of you are going over 158 00:10:49,540 --> 00:10:51,660 Suze: there now and you are traveling 159 00:10:52,880 --> 00:10:57,579 Suze: just make sure that if you use your credit card 160 00:10:58,490 --> 00:11:03,510 Suze: that you are not charged money for the conversion fees. 161 00:11:03,670 --> 00:11:07,880 Suze: If I were you when I went over there 162 00:11:08,410 --> 00:11:11,900 Suze: and I wanted to buy something I would go to 163 00:11:11,900 --> 00:11:16,349 Suze: an A. T. M. machine put in my debit card 164 00:11:16,350 --> 00:11:19,490 Suze: or however you're going to get money out whatever kind 165 00:11:19,490 --> 00:11:23,770 Suze: of card you may have and I would withdraw euros 166 00:11:23,780 --> 00:11:28,699 Suze: and then I would pay in cash in euros that 167 00:11:28,710 --> 00:11:32,640 Suze: is the most intelligent and cost effective way to do 168 00:11:32,640 --> 00:11:35,520 Suze: it if you're going to travel at this point in 169 00:11:35,520 --> 00:11:36,250 Suze: time 170 00:11:36,700 --> 00:11:40,660 Suze: now. Where the heck was I? Alright, let me go 171 00:11:40,660 --> 00:11:44,329 Suze: back to what I was saying money from overseas is 172 00:11:44,330 --> 00:11:45,620 Suze: pouring in here. 173 00:11:46,450 --> 00:11:51,170 Suze: Everything is coming here but not into the stock market 174 00:11:51,190 --> 00:11:57,490 Suze: into the bond market now I just have to reiterate 175 00:11:58,330 --> 00:12:01,280 Suze: that I think this is a process that's going to 176 00:12:01,280 --> 00:12:06,040 Suze: stay around for a while. I am very, very aware 177 00:12:06,480 --> 00:12:08,679 Suze: that a year, year and a half ago I started 178 00:12:08,679 --> 00:12:10,960 Suze: to say to you get out of long term bonds, 179 00:12:10,970 --> 00:12:13,280 Suze: I don't want you in bonds, I don't want you 180 00:12:13,280 --> 00:12:17,800 Suze: in bond funds and just get out and hopefully you did. 181 00:12:18,050 --> 00:12:20,280 Suze: And now maybe you have cash. 182 00:12:21,000 --> 00:12:24,150 Suze: Now what I'm saying to you little by little 183 00:12:25,100 --> 00:12:31,970 Suze: you need to start getting back into bonds into possibly 184 00:12:31,980 --> 00:12:35,640 Suze: bond funds as well not to say that they might 185 00:12:35,640 --> 00:12:39,449 Suze: not continue down. But when the bond market turns it 186 00:12:39,450 --> 00:12:41,600 Suze: turns very quickly 187 00:12:42,400 --> 00:12:46,870 Suze: and I just have to believe that sooner than later 188 00:12:46,880 --> 00:12:49,730 Suze: interest rates are going to have to start to come 189 00:12:49,730 --> 00:12:53,700 Suze: down again because the feds are going to reach their 190 00:12:53,700 --> 00:12:55,630 Suze: target hopefully 191 00:12:56,230 --> 00:12:59,309 Suze: and when they start to come down 192 00:12:59,880 --> 00:13:03,020 Suze: then the price of your bonds and bond funds will 193 00:13:03,030 --> 00:13:09,030 Suze: also go up and increase in value. Now I've given 194 00:13:09,030 --> 00:13:12,870 Suze: you a Suze School on that before. But basically here 195 00:13:12,870 --> 00:13:15,910 Suze: are two things you have to remember with bonds. When 196 00:13:15,920 --> 00:13:20,830 Suze: interest rates go down, the value of bonds go up 197 00:13:20,840 --> 00:13:23,160 Suze: and when interest rates go up, 198 00:13:23,790 --> 00:13:29,850 Suze: the value of bonds go down. Short term maturity bonds 199 00:13:30,610 --> 00:13:36,710 Suze: don't move as much as longer term maturity bonds. Short 200 00:13:36,710 --> 00:13:41,620 Suze: term maturity bonds can be one year, two years, three years. 201 00:13:42,640 --> 00:13:49,309 Suze: Long term bonds usually are 20 and 30 years. So 202 00:13:49,309 --> 00:13:54,819 Suze: the longer the maturity, the more up and down movement 203 00:13:54,830 --> 00:13:58,020 Suze: it will have, the more lost, the more gain when 204 00:13:58,030 --> 00:14:03,709 Suze: interest rates move, the shorter the maturity. When interest rates move, 205 00:14:04,300 --> 00:14:08,950 Suze: the less you'll see in terms of the movement of price. 206 00:14:08,960 --> 00:14:12,860 Suze: So really the less gain, the less loss you will have, 207 00:14:12,870 --> 00:14:19,150 Suze: especially in comparison to long term bonds or bond funds. 208 00:14:20,170 --> 00:14:24,370 Suze: So my original advice to you came when interest rates 209 00:14:24,370 --> 00:14:27,000 Suze: were at zero and they had no place to go. 210 00:14:27,000 --> 00:14:28,050 Suze: But up 211 00:14:28,920 --> 00:14:33,120 Suze: now interest rates are up and they're probably going to 212 00:14:33,120 --> 00:14:35,490 Suze: go up a little bit more. So again, might want 213 00:14:35,490 --> 00:14:36,960 Suze: a dollar cost average. 214 00:14:37,680 --> 00:14:41,650 Suze: But I've now changed what I've told you 215 00:14:42,240 --> 00:14:44,120 Suze: about bonds. 216 00:14:44,790 --> 00:14:49,400 Suze: How many of you have written in and asked me 217 00:14:49,410 --> 00:14:54,400 Suze: to do an entire podcast on how to buy Treasury 218 00:14:54,400 --> 00:14:58,620 Suze: bills notes and bonds. And I told you that I 219 00:14:58,630 --> 00:15:03,380 Suze: absolutely would do that. And in fact, I thought today's 220 00:15:03,380 --> 00:15:08,090 Suze: podcast was going to be all about that until the 221 00:15:08,090 --> 00:15:11,950 Suze: stock market really just sank so bad last week. It 222 00:15:11,950 --> 00:15:13,430 Suze: wasn't even funny, 223 00:15:14,170 --> 00:15:16,880 Suze: but it was brought to my attention 224 00:15:17,500 --> 00:15:21,810 Suze: that there is a YouTube out there by a woman 225 00:15:21,810 --> 00:15:25,570 Suze: that goes under Diamond Nest Egg. So if you go 226 00:15:25,570 --> 00:15:29,990 Suze: to YouTube search for Diamond Nest Egg that she has 227 00:15:30,000 --> 00:15:36,570 Suze: an extraordinary video on how to buy T bills T 228 00:15:36,570 --> 00:15:38,410 Suze: bonds and T notes. 229 00:15:39,030 --> 00:15:41,990 Suze: And so I went to it and I watched it 230 00:15:42,000 --> 00:15:45,300 Suze: and I have to tell you she did the most 231 00:15:45,310 --> 00:15:49,180 Suze: incredible job. I mean I don't know her, she doesn't 232 00:15:49,180 --> 00:15:52,310 Suze: know me, she doesn't even know I've watched her video 233 00:15:52,320 --> 00:15:55,380 Suze: and I start watching other videos of hers. She has 234 00:15:55,380 --> 00:15:58,670 Suze: them on I bonds, she has all kinds of videos 235 00:15:58,680 --> 00:16:00,660 Suze: on bonds 236 00:16:01,340 --> 00:16:05,770 Suze: and I loved them. And I realized that for you 237 00:16:05,770 --> 00:16:10,230 Suze: to really understand how to buy a Treasury bill bond 238 00:16:10,240 --> 00:16:13,730 Suze: or note whether it be at Treasury direct dot gov 239 00:16:13,740 --> 00:16:17,640 Suze: or at a brokerage firm. You need to kind of 240 00:16:17,640 --> 00:16:20,240 Suze: visually see how to do it. 241 00:16:20,890 --> 00:16:23,780 Suze: And given that this is a podcast that even if 242 00:16:23,780 --> 00:16:25,810 Suze: I just explained it to you, 243 00:16:26,330 --> 00:16:30,420 Suze: Her explanation of how to do it is so great. 244 00:16:30,430 --> 00:16:31,890 Suze: It's not even funny 245 00:16:32,610 --> 00:16:36,100 Suze: on the Women and Money app which you, by the 246 00:16:36,100 --> 00:16:40,530 Suze: way can download by going to Apple Apps or Google 247 00:16:40,530 --> 00:16:41,240 Suze: Play 248 00:16:41,770 --> 00:16:46,740 Suze: on the wall there. I will link to this particular 249 00:16:46,740 --> 00:16:50,940 Suze: airing of her YouTube channel where she shows you how 250 00:16:50,950 --> 00:16:55,800 Suze: to buy T bills, bonds and notes. If you don't 251 00:16:55,800 --> 00:16:58,060 Suze: want to go to the app to do it fine 252 00:16:58,060 --> 00:17:01,290 Suze: go to YouTube and again search for Diamond Nest Egg 253 00:17:01,300 --> 00:17:05,540 Suze: and see among all of her videos. Search for it 254 00:17:05,550 --> 00:17:07,410 Suze: and you will find this one, 255 00:17:07,730 --> 00:17:10,620 Suze: but I have to tell you after you watch it, 256 00:17:10,730 --> 00:17:15,800 Suze: you will really know how to buy t bills, bonds 257 00:17:15,800 --> 00:17:21,290 Suze: and notes either with a brokerage firm or on treasury 258 00:17:21,300 --> 00:17:25,090 Suze: direct dot gov. Now you know, 259 00:17:26,490 --> 00:17:30,480 Suze: you know the other day I gave an audio seminar 260 00:17:30,490 --> 00:17:36,699 Suze: for the AARP and the moderator Neil asked me a 261 00:17:36,700 --> 00:17:41,140 Suze: question and he said, Suze a lot of our members 262 00:17:41,140 --> 00:17:45,230 Suze: want to know as you're getting older what is the 263 00:17:45,230 --> 00:17:48,620 Suze: correct asset allocation for them, 264 00:17:49,340 --> 00:17:52,710 Suze: So if they're older, should they have 70% in bonds 265 00:17:52,710 --> 00:17:56,540 Suze: and 30% in stocks or what is the correct asset allocation? 266 00:17:57,350 --> 00:18:00,659 Suze: And I said I don't believe in asset allocation. I 267 00:18:00,660 --> 00:18:05,369 Suze: believe in diversification but not asset allocation. Again, if you 268 00:18:05,369 --> 00:18:10,670 Suze: don't know asset allocation is you decide you're gonna have 30% 269 00:18:10,670 --> 00:18:14,189 Suze: of your money that's safe and sound maybe in bonds, 270 00:18:14,200 --> 00:18:18,609 Suze: you're going to have 50% of your money for growth 271 00:18:18,619 --> 00:18:22,660 Suze: in stock, so you're getting an amount of money and 272 00:18:22,660 --> 00:18:26,210 Suze: you're allocating it towards a certain type of asset. 273 00:18:26,359 --> 00:18:33,070 Suze: that asset could be real estate stocks, bonds, Cryptocurrency gold, 274 00:18:33,080 --> 00:18:34,730 Suze: things like that. 275 00:18:35,800 --> 00:18:38,790 Suze: And there are rules of thumb that the older you get, 276 00:18:38,800 --> 00:18:42,710 Suze: the more you should have safe and sound in bonds 277 00:18:42,850 --> 00:18:47,379 Suze: because bonds supposedly don't lose money. Alright. 278 00:18:48,160 --> 00:18:51,689 Suze: And I said, I don't believe in asset allocation, I 279 00:18:51,690 --> 00:18:54,750 Suze: believe in economy allocation 280 00:18:55,640 --> 00:18:59,990 Suze: I invest according to what's happening in the economy, 281 00:19:00,560 --> 00:19:03,580 Suze: It's not a judge that determines what you should do 282 00:19:03,580 --> 00:19:07,300 Suze: with your money. It's how much money do you have? 283 00:19:07,310 --> 00:19:09,750 Suze: Do you have enough? Do you not have enough? Does 284 00:19:09,750 --> 00:19:13,390 Suze: your money scare you? Do you enjoy investing? It matters 285 00:19:13,400 --> 00:19:16,740 Suze: based on you and what's happening in the economy at 286 00:19:16,740 --> 00:19:18,680 Suze: the time that it's happening 287 00:19:19,320 --> 00:19:22,139 Suze: and when interest rates are at zero, 288 00:19:23,119 --> 00:19:27,680 Suze: that in my opinion isn't necessarily the time to stay 289 00:19:27,690 --> 00:19:31,210 Suze: invested in bond funds in particular 290 00:19:31,869 --> 00:19:34,750 Suze: because if interest rates go up and they always go 291 00:19:34,750 --> 00:19:36,130 Suze: up and they always go down. 292 00:19:36,920 --> 00:19:39,840 Suze: If they go up, the value of your bond fund 293 00:19:39,850 --> 00:19:41,740 Suze: is going to go down. 294 00:19:42,320 --> 00:19:45,290 Suze: So a year, year and a half ago, whenever I started, 295 00:19:45,300 --> 00:19:48,370 Suze: it was obvious what was going on. That's why I 296 00:19:48,369 --> 00:19:50,090 Suze: said I don't like them. 297 00:19:50,660 --> 00:19:53,770 Suze: However now interest rates are starting to go up. I 298 00:19:53,770 --> 00:19:57,900 Suze: know I'm repeating, but the economy is dictating how we 299 00:19:57,900 --> 00:20:03,300 Suze: should invest and bonds are coming back in favor. That 300 00:20:03,300 --> 00:20:07,399 Suze: was a very short edition of a Suze School for that. 301 00:20:08,100 --> 00:20:12,359 Suze: But I think it's very important that you understand why 302 00:20:12,359 --> 00:20:16,990 Suze: I'm asking you the number one pay attention to really 303 00:20:16,990 --> 00:20:19,899 Suze: set your parameters because I do think it's going to 304 00:20:19,900 --> 00:20:24,440 Suze: be a very tough year or two. I do think 305 00:20:24,450 --> 00:20:28,330 Suze: again you might see short term spikes but I think 306 00:20:28,330 --> 00:20:32,570 Suze: in the long run you have to be careful 307 00:20:33,359 --> 00:20:35,230 Suze: you know I just want to say one other thing 308 00:20:35,230 --> 00:20:39,189 Suze: and by the way if you want to listen to 309 00:20:39,200 --> 00:20:44,160 Suze: that webinar that I did with AARP it is online 310 00:20:44,170 --> 00:20:48,070 Suze: all you have to do is go to A. A. R. P. 311 00:20:48,070 --> 00:20:53,660 Suze: Dot org slash coronavirus. I know. 312 00:20:53,980 --> 00:20:58,840 Suze: They started those seminars webinars or whatever they're called back 313 00:20:58,850 --> 00:21:01,460 Suze: during the pandemic and I think they have them every 314 00:21:01,460 --> 00:21:04,600 Suze: two weeks. But I thought it was a very very 315 00:21:04,609 --> 00:21:08,280 Suze: interesting session and one that I think you really should 316 00:21:08,280 --> 00:21:09,200 Suze: listen to 317 00:21:09,790 --> 00:21:15,270 Suze: because AARP really right now is fighting for your Social 318 00:21:15,270 --> 00:21:19,250 Suze: Security for health for all kinds of things. I like 319 00:21:19,250 --> 00:21:21,879 Suze: them obviously they don't know that I'm saying this I 320 00:21:21,880 --> 00:21:25,219 Suze: was not paid to talk for them. It's just an 321 00:21:25,220 --> 00:21:29,450 Suze: organization that I think has resources that could possibly help 322 00:21:29,450 --> 00:21:32,880 Suze: you if you want to listen now you have the U. R. L. 323 00:21:32,880 --> 00:21:34,150 Suze: That you can do. So 324 00:21:34,310 --> 00:21:38,830 Suze: back to the question at hand which was and somebody 325 00:21:38,830 --> 00:21:41,920 Suze: called in and they said to me you know Suze 326 00:21:41,950 --> 00:21:45,320 Suze: I have money in the stock market and it's going 327 00:21:45,320 --> 00:21:46,010 Suze: down 328 00:21:46,640 --> 00:21:47,450 Suze: and 329 00:21:48,060 --> 00:21:51,000 Suze: I want to possibly do an ira rollover with it, 330 00:21:51,000 --> 00:21:54,740 Suze: I'm retiring but I don't want to lose money and 331 00:21:54,740 --> 00:21:59,800 Suze: I'm afraid that if I sell anything right now that 332 00:21:59,800 --> 00:22:03,320 Suze: I'll never make it back and so I'm just totally 333 00:22:03,320 --> 00:22:05,550 Suze: lost at what I should do. I don't want to 334 00:22:05,550 --> 00:22:06,740 Suze: lose money. 335 00:22:07,390 --> 00:22:10,219 Suze: You know, I have a saying everybody that it's your 336 00:22:10,220 --> 00:22:13,429 Suze: profound fear of loss that keeps you from gain. 337 00:22:14,430 --> 00:22:18,400 Suze: You have to look at your situation and you can't 338 00:22:18,400 --> 00:22:21,150 Suze: think to yourself, oh my God, if I sell now, 339 00:22:21,160 --> 00:22:24,040 Suze: I'm never going to make my money back and I 340 00:22:24,040 --> 00:22:26,740 Suze: am not telling you by the way to sell right now. 341 00:22:26,770 --> 00:22:30,070 Suze: But there are some of you out there who do 342 00:22:30,080 --> 00:22:32,950 Suze: need the money that you have invested in the stock 343 00:22:32,950 --> 00:22:33,600 Suze: market 344 00:22:34,270 --> 00:22:36,960 Suze: And you're gonna need it maybe in the next year 345 00:22:36,960 --> 00:22:40,100 Suze: two or 3 and I will repeat this till I'm 346 00:22:40,100 --> 00:22:43,660 Suze: blue in the face that money that you need in 347 00:22:43,660 --> 00:22:47,250 Suze: a short period of time is not money that belongs 348 00:22:47,260 --> 00:22:51,790 Suze: in the stock market. Not here, not now, not ever. 349 00:22:52,440 --> 00:22:55,750 Suze: And so this is not the time if you're retiring 350 00:22:55,760 --> 00:22:58,390 Suze: and you need that money and what is it when 351 00:22:58,390 --> 00:23:01,419 Suze: I mean need it, you need it to send your 352 00:23:01,420 --> 00:23:04,990 Suze: kids to school, you need it to pay off your 353 00:23:04,990 --> 00:23:09,369 Suze: car loan, you need it to maybe pay down your mortgage, 354 00:23:09,380 --> 00:23:12,390 Suze: you need it to fix up your house because your 355 00:23:12,390 --> 00:23:15,520 Suze: windows are leaking and winter is coming, you need it 356 00:23:15,520 --> 00:23:19,710 Suze: for something and you're going to actually use it. 357 00:23:20,460 --> 00:23:23,790 Suze: That is not money that belongs in the stock market. 358 00:23:23,800 --> 00:23:25,909 Suze: If you are going to use it within a 1,2,3 359 00:23:25,910 --> 00:23:30,220 Suze: year period of time back to that. Your profound fear 360 00:23:30,230 --> 00:23:32,580 Suze: of loss keeps you from gain. 361 00:23:33,440 --> 00:23:35,929 Suze: You can't just say 362 00:23:36,730 --> 00:23:40,510 Suze: I don't want to lose money it'll come back. Hope 363 00:23:40,520 --> 00:23:44,010 Suze: is not a financial plan. Many of you still have 364 00:23:44,010 --> 00:23:45,429 Suze: stocks out there 365 00:23:45,990 --> 00:23:49,830 Suze: and you are in retirement or you really are gonna 366 00:23:49,830 --> 00:23:52,800 Suze: need that money. You have to look at it and 367 00:23:52,800 --> 00:23:54,890 Suze: again you have to make a decision what you want 368 00:23:54,890 --> 00:23:55,410 Suze: to do 369 00:23:56,030 --> 00:23:59,490 Suze: but I would not be holding onto stocks that your 370 00:23:59,490 --> 00:24:03,780 Suze: intention is to sell just because you think they're going 371 00:24:03,780 --> 00:24:08,050 Suze: to come back in a relatively short period of time. 372 00:24:08,060 --> 00:24:10,650 Suze: I hope they do. I hope they do for all 373 00:24:10,650 --> 00:24:11,300 Suze: of us. 374 00:24:12,450 --> 00:24:15,180 Suze: I don't think I would place money on that bet. 375 00:24:15,190 --> 00:24:21,179 Suze: So don't be afraid to take action and do something 376 00:24:21,190 --> 00:24:25,220 Suze: that moves your money to somewhere that is safe and sound. 377 00:24:25,880 --> 00:24:28,810 Suze: I was so sad for this woman that called in 378 00:24:28,820 --> 00:24:32,620 Suze: because I can relate that most of you are probably 379 00:24:32,630 --> 00:24:36,520 Suze: in that situation. Again I'm just gonna give you a 380 00:24:36,520 --> 00:24:43,680 Suze: brief guideline if you're young, you're 20,30 40 even 50 381 00:24:43,690 --> 00:24:46,760 Suze: or 60 and 382 00:24:46,930 --> 00:24:52,680 Suze: you are still working. You intend to work for another 5, 10, 383 00:24:52,680 --> 00:24:57,379 Suze: 15 years or longer and you're contributing to a hopefully 384 00:24:57,380 --> 00:25:01,010 Suze: Roth four oh one K. Or 403 B. R. T. S. P. 385 00:25:01,050 --> 00:25:03,670 Suze: And or a Roth Ira 386 00:25:04,390 --> 00:25:09,370 Suze: and you're putting money in every single month. This what's 387 00:25:09,369 --> 00:25:13,730 Suze: happening in the stock market right now is your greatest 388 00:25:13,740 --> 00:25:17,740 Suze: gift you have ever been given because these prices are 389 00:25:17,740 --> 00:25:22,740 Suze: down so low. That honest to God, things are on 390 00:25:22,750 --> 00:25:26,879 Suze: emergency sale and they're probably gonna go lower. So if 391 00:25:26,880 --> 00:25:30,580 Suze: you keep dollar cost averaging and you just keep taking 392 00:25:30,580 --> 00:25:31,780 Suze: advantage of it, 393 00:25:32,540 --> 00:25:36,940 Suze: Good for you. Do not stop. Just make sure you 394 00:25:36,940 --> 00:25:43,080 Suze: are diversified. But if you are older you're 70 80, 395 00:25:43,090 --> 00:25:46,929 Suze: you're invested in the stock market. You see your retirement 396 00:25:46,930 --> 00:25:49,320 Suze: accounts going down and down and down 397 00:25:50,230 --> 00:25:53,230 Suze: and it's keeping you up at night 398 00:25:54,080 --> 00:25:58,320 Suze: and you are just totally getting sick over it. I'm 399 00:25:58,320 --> 00:26:02,730 Suze: here to tell you that money is not worth you 400 00:26:02,730 --> 00:26:04,120 Suze: getting sick over. 401 00:26:04,900 --> 00:26:08,560 Suze: Do you then decide I'm out? I don't want this 402 00:26:08,570 --> 00:26:13,870 Suze: or what amount of money that's in the stock market, 403 00:26:13,880 --> 00:26:18,300 Suze: would you sell to make you feel secure now? I 404 00:26:18,300 --> 00:26:21,300 Suze: went to 50% in cash and I think I told 405 00:26:21,300 --> 00:26:25,369 Suze: you that a month two or three ago because even 406 00:26:25,369 --> 00:26:27,240 Suze: though I have money, 407 00:26:27,560 --> 00:26:30,979 Suze: I didn't like it and like what I saw, so 408 00:26:30,990 --> 00:26:34,280 Suze: I went to 50% in cash and I took my 409 00:26:34,280 --> 00:26:35,330 Suze: chances there. 410 00:26:36,560 --> 00:26:41,869 Suze: Maybe that's what you do because it made me feel secure. 411 00:26:42,869 --> 00:26:47,850 Suze: It made me feel secure. Maybe that's what you do. 412 00:26:48,270 --> 00:26:50,489 Suze: Do you take some of this money 413 00:26:51,240 --> 00:26:56,060 Suze: and do you take 25% or some amount that would 414 00:26:56,060 --> 00:27:00,899 Suze: make you feel secure and just go to cash. Now 415 00:27:00,900 --> 00:27:05,390 Suze: remember when I say go to cash, you might want 416 00:27:05,390 --> 00:27:07,570 Suze: to take some of that money and do what go 417 00:27:07,570 --> 00:27:12,209 Suze: into bonds, go into Treasury notes, go into long term 418 00:27:12,210 --> 00:27:15,690 Suze: bonds or dollar cost average into them over time, 419 00:27:16,250 --> 00:27:18,950 Suze: so that you're getting a good interest rate. And that 420 00:27:18,950 --> 00:27:22,730 Suze: when in fact interest rates do go down, 421 00:27:23,450 --> 00:27:26,010 Suze: the value will go up. Now, I just have to 422 00:27:26,010 --> 00:27:27,240 Suze: say something here 423 00:27:27,970 --> 00:27:31,990 Suze: so many times people think the only way to make 424 00:27:31,990 --> 00:27:36,970 Suze: money is in stocks, that is not true 425 00:27:37,720 --> 00:27:42,050 Suze: when you can catch bonds at a time when interest 426 00:27:42,050 --> 00:27:43,770 Suze: rates are going down, 427 00:27:44,650 --> 00:27:49,859 Suze: then you can also make money in bonds just so 428 00:27:49,859 --> 00:27:53,990 Suze: you know, and while the stock market is fluctuating, you're 429 00:27:53,990 --> 00:27:58,490 Suze: still making an interest rate. So it's just something that 430 00:27:58,490 --> 00:28:02,180 Suze: you need to think about and that's how you decide 431 00:28:02,190 --> 00:28:06,050 Suze: what to invest in based on the economy going back 432 00:28:06,050 --> 00:28:12,570 Suze: to this versus asset allocation by age. Did that make 433 00:28:12,570 --> 00:28:14,160 Suze: sense to you? 434 00:28:14,850 --> 00:28:16,949 Suze: I know that's not a lot of advice that I 435 00:28:16,950 --> 00:28:20,560 Suze: can give you but more than money and what you 436 00:28:20,560 --> 00:28:21,720 Suze: should do with money, 437 00:28:22,270 --> 00:28:25,939 Suze: it's what do you do to make yourself feel secure? 438 00:28:25,950 --> 00:28:31,970 Suze: That is the question at hand. And that is why 439 00:28:31,970 --> 00:28:37,650 Suze: the Suze School also is so important because with knowledge 440 00:28:37,660 --> 00:28:42,940 Suze: with understanding why something happens and when something happens, what 441 00:28:42,940 --> 00:28:48,000 Suze: happens and when that what happens then what happens until 442 00:28:48,580 --> 00:28:53,380 Suze: this happens or that happens and how do you react? 443 00:28:53,390 --> 00:28:56,710 Suze: So that you know what's going to happen versus just 444 00:28:56,710 --> 00:28:59,340 Suze: getting hit off guard. 445 00:29:00,000 --> 00:29:02,040 Suze: That's why it's so important 446 00:29:02,720 --> 00:29:06,620 Suze: so that you can be secure in your knowledge 447 00:29:07,190 --> 00:29:12,480 Suze: and secure in how you feel in your situation, money 448 00:29:12,480 --> 00:29:14,690 Suze: will come and money will go 449 00:29:15,670 --> 00:29:18,810 Suze: and you will figure it out. But if you are 450 00:29:18,810 --> 00:29:20,250 Suze: scared to death 451 00:29:22,380 --> 00:29:24,950 Suze: it's just not worth it. 452 00:29:26,450 --> 00:29:28,970 Suze: So today is Sunday 453 00:29:29,520 --> 00:29:34,900 Suze: and tomorrow is Monday and then Tuesday and on those 454 00:29:34,900 --> 00:29:39,370 Suze: days it was projected that we were going to be 455 00:29:39,370 --> 00:29:45,340 Suze: hit by Hurricane Ian and it was absolutely coming straight 456 00:29:45,350 --> 00:29:49,680 Suze: for us and for now just so you know, don't 457 00:29:49,680 --> 00:29:53,510 Suze: worry about it. For now it has shifted and we 458 00:29:53,510 --> 00:29:56,520 Suze: are totally out of the comb. 459 00:29:57,180 --> 00:30:00,840 Suze: But while it was heading our way, we had to 460 00:30:00,840 --> 00:30:04,800 Suze: prepare for it, we had to make sure that we 461 00:30:04,800 --> 00:30:08,080 Suze: were secure. That we had a plan 462 00:30:08,790 --> 00:30:11,630 Suze: that where are we going to stay, where we going 463 00:30:11,630 --> 00:30:14,240 Suze: to leave? If we were going to leave, where should 464 00:30:14,240 --> 00:30:17,300 Suze: we go? Because the hurricane could go anywhere. So where 465 00:30:17,300 --> 00:30:20,980 Suze: would we go to be safe? And as I think 466 00:30:20,980 --> 00:30:24,220 Suze: about it, it's a lot like what I've been asking 467 00:30:24,220 --> 00:30:27,240 Suze: you to do with money right now, 468 00:30:28,060 --> 00:30:31,830 Suze: you have to know are you secure and if you're 469 00:30:31,830 --> 00:30:36,600 Suze: not secure, what can you do to make yourself feel secure? 470 00:30:36,610 --> 00:30:41,620 Suze: Which is obviously the goal of money, you have to 471 00:30:41,620 --> 00:30:45,680 Suze: make decisions, you have to make moves and you have 472 00:30:45,680 --> 00:30:48,820 Suze: to make sure that those decisions and those moves are 473 00:30:48,820 --> 00:30:52,690 Suze: ones that make you feel secure. 474 00:30:53,740 --> 00:30:57,870 Suze: Alright. Until next time. There's only one thing that I 475 00:30:57,870 --> 00:31:01,360 Suze: want for you and your money, and it's for you 476 00:31:01,360 --> 00:31:07,780 Suze: to be safe, strong and most important, secure. See you soon. 477 00:31:07,790 --> 00:31:08,790 Suze: Bye bye.