1 00:00:34,510 --> 00:00:38,500 Suze: August 14, 2022. 2 00:00:39,110 --> 00:00:43,059 Suze: Welcome everybody to Suze School here on the Women and 3 00:00:43,060 --> 00:00:44,180 Suze: Money Podcast 4 00:00:44,880 --> 00:00:48,790 Suze: as well as everyone else smart enough to listen. There's 5 00:00:48,790 --> 00:00:50,740 Suze: a few things that I just want to talk to 6 00:00:50,740 --> 00:00:55,010 Suze: you about before I go into Suze School today. 7 00:00:55,710 --> 00:00:56,440 Suze: First: 8 00:00:57,120 --> 00:01:02,930 Suze: It was so sweet that Colo's birthday was August 11 9 00:01:03,550 --> 00:01:05,840 Suze: and on Colo's birthday 10 00:01:06,520 --> 00:01:10,740 Suze: my sister in law, Lynn Stender who is this incredible artist, 11 00:01:10,750 --> 00:01:16,080 Suze: painted for Colo on his birthday. A little picture of 12 00:01:16,080 --> 00:01:17,770 Suze: his dog Toby 13 00:01:18,500 --> 00:01:23,290 Suze: and I was videotaping it and he opened the present. 14 00:01:23,300 --> 00:01:27,370 Suze: He looked at it and he started to cry. Well 15 00:01:27,380 --> 00:01:29,890 Suze: I thought that was so touching because the truth of 16 00:01:29,890 --> 00:01:33,430 Suze: the matter is I just love one big strong men 17 00:01:33,440 --> 00:01:37,200 Suze: or anybody for that matter. They cry from their heart 18 00:01:37,450 --> 00:01:41,100 Suze: because their heart has been touched and cola really couldn't 19 00:01:41,100 --> 00:01:44,030 Suze: even talk. He was so moved 20 00:01:44,530 --> 00:01:47,860 Suze: and I thought I know I'm going to post that 21 00:01:47,870 --> 00:01:51,630 Suze: on my Women and Money app which hopefully all of 22 00:01:51,630 --> 00:01:55,820 Suze: you are participating in. You just download it by going to 23 00:01:55,840 --> 00:01:59,520 Suze: Apple Apps or Google Play, because I only post certain 24 00:01:59,520 --> 00:02:03,490 Suze: things there and nowhere else. And I thought all of 25 00:02:03,490 --> 00:02:05,190 Suze: you would enjoy seeing it 26 00:02:06,230 --> 00:02:09,180 Suze: and you did. A lot of people saw it. 27 00:02:10,320 --> 00:02:12,300 Suze: But the problem was 28 00:02:13,389 --> 00:02:17,400 Suze: many of you thought that he was crying because his 29 00:02:17,400 --> 00:02:19,820 Suze: little doggie Toby had died 30 00:02:20,450 --> 00:02:23,300 Suze: and I just want to tell all of you Toby 31 00:02:23,300 --> 00:02:27,680 Suze: did not die. Toby is absolutely fine 32 00:02:28,260 --> 00:02:34,480 Suze: and the reason that Colo was crying was because it 33 00:02:34,480 --> 00:02:39,410 Suze: reminded him of how much he misses Toby. He loves Toby. 34 00:02:39,419 --> 00:02:42,500 Suze: Toby is like his son, even though he has three 35 00:02:42,500 --> 00:02:49,089 Suze: other kids. He loves Toby and it reminded him of Annie, 36 00:02:49,090 --> 00:02:51,960 Suze: his wife and how much he missed them. 37 00:02:52,360 --> 00:02:56,520 Suze: And he started to cry because he felt that and 38 00:02:56,520 --> 00:03:01,040 Suze: he also felt so much love that Lynn had gone 39 00:03:01,050 --> 00:03:06,810 Suze: to the trouble of hand painting something for him and 40 00:03:06,810 --> 00:03:11,430 Suze: that moves him, it moves him. How much we all 41 00:03:11,440 --> 00:03:14,920 Suze: love him as well. He can't really believe it, 42 00:03:15,570 --> 00:03:18,900 Suze: He just can't believe it. He walks around everybody and 43 00:03:18,900 --> 00:03:23,810 Suze: he says Suze, I'm the luckiest person in this entire world. 44 00:03:24,800 --> 00:03:27,480 Suze: He said "I just can't even believe my life." 45 00:03:28,160 --> 00:03:30,880 Suze: and that always comes out in tears. 46 00:03:31,480 --> 00:03:35,730 Suze: So with that said it was so sweet that so 47 00:03:35,730 --> 00:03:38,460 Suze: many of you wrote and that many of you were 48 00:03:38,460 --> 00:03:42,150 Suze: moved because it reminded you of your little furry friend 49 00:03:42,150 --> 00:03:45,330 Suze: that you lost. But I just want you to know 50 00:03:45,390 --> 00:03:49,630 Suze: that Toby is safe and sound living in Colombia with 51 00:03:49,640 --> 00:03:54,980 Suze: Annie and that sooner than later here, in December, Colo 52 00:03:54,980 --> 00:03:57,770 Suze: will get to go home and spend quite a bit 53 00:03:57,770 --> 00:03:59,550 Suze: of time with them. 54 00:04:00,000 --> 00:04:02,980 Suze: The next thing that I want to tell you about 55 00:04:02,990 --> 00:04:09,710 Suze: is the podcast of July 31st which was on Inherited 56 00:04:09,720 --> 00:04:15,170 Suze: I R. A. S. I did another podcast with KT 57 00:04:15,180 --> 00:04:19,960 Suze: on August 11th about this same topic but I still 58 00:04:19,960 --> 00:04:24,190 Suze: got so many emails that you sent in to ask 59 00:04:24,190 --> 00:04:29,430 Suze: Suze podcast at gmail dot com. Still totally confused. 60 00:04:29,860 --> 00:04:33,240 Suze: So I went back and I listened to the July 61 00:04:33,240 --> 00:04:36,690 Suze: 31 podcast and I have to tell you, I did 62 00:04:36,690 --> 00:04:40,510 Suze: not do the best of jobs on that podcast. I 63 00:04:40,510 --> 00:04:44,690 Suze: wasn't as clear as I really needed to be. So 64 00:04:44,690 --> 00:04:48,930 Suze: I went back and I edited that podcast to hopefully 65 00:04:48,930 --> 00:04:53,390 Suze: make it really clear. So you're not confused about it. 66 00:04:53,440 --> 00:04:56,420 Suze: So I ask all of you if you're interested in 67 00:04:56,420 --> 00:04:58,779 Suze: this topic and all of you should be, 68 00:04:59,020 --> 00:05:01,820 Suze: to go back and listen once again to the July 69 00:05:01,820 --> 00:05:06,580 Suze: 31 podcast as well as the August 11th one and 70 00:05:06,580 --> 00:05:09,540 Suze: make sure you listen closely. 71 00:05:10,510 --> 00:05:15,280 Suze: One more thing before Suze School. Now. I know that 72 00:05:15,279 --> 00:05:18,820 Suze: a lot of you think that this market is going 73 00:05:18,820 --> 00:05:21,810 Suze: to go straight up and I get that you think 74 00:05:21,810 --> 00:05:25,510 Suze: that because you're all writing me about it. I have 75 00:05:25,510 --> 00:05:27,640 Suze: said in the past and I just want to repeat 76 00:05:27,640 --> 00:05:31,969 Suze: it one more time that I have no doubt that 77 00:05:31,970 --> 00:05:34,750 Suze: this market is going to continue to go up for 78 00:05:34,750 --> 00:05:37,870 Suze: the next week, two weeks, three weeks or whatever it 79 00:05:37,870 --> 00:05:38,679 Suze: may be, 80 00:05:39,170 --> 00:05:43,570 Suze: but I also have no doubt that comes sooner than later. 81 00:05:43,810 --> 00:05:47,240 Suze: It's going to hit a point where I do think 82 00:05:47,250 --> 00:05:50,140 Suze: it's going to come all the way back down again. 83 00:05:50,200 --> 00:05:52,210 Suze: Might not be until October 84 00:05:52,760 --> 00:05:55,679 Suze: but I do think that is going to happen. 85 00:05:56,390 --> 00:05:59,660 Suze: So how do you deal with that? You deal with 86 00:05:59,660 --> 00:06:04,540 Suze: that by dollar cost averaging, you deal with that by 87 00:06:04,540 --> 00:06:11,010 Suze: not stopping investing. If you have 7, 10 2030 years 88 00:06:11,020 --> 00:06:13,870 Suze: or longer until you need this money, 89 00:06:14,670 --> 00:06:19,100 Suze: you just keep doing it month in and month out. 90 00:06:19,110 --> 00:06:23,510 Suze: Which is why I decided I wanted to do Suze 91 00:06:23,510 --> 00:06:27,000 Suze: School today on dollar cost averaging 92 00:06:27,680 --> 00:06:33,190 Suze: the difference between dividends and interest and why I like 93 00:06:33,190 --> 00:06:37,380 Suze: the Vanguard Total Stock Market Index so much and if 94 00:06:37,380 --> 00:06:43,450 Suze: there's time why I like Devon, the energy stock so much. 95 00:06:43,960 --> 00:06:47,320 Suze: So let's see if I can get into it very, 96 00:06:47,320 --> 00:06:52,880 Suze: very quickly. First, I just want you all to understand 97 00:06:52,890 --> 00:06:56,560 Suze: the difference between dividends and interest 98 00:06:57,260 --> 00:07:01,680 Suze: interest is when you put money into a savings account, 99 00:07:01,740 --> 00:07:05,530 Suze: like the Ultimate Opportunity Savings account that I want all 100 00:07:05,529 --> 00:07:09,159 Suze: of you to be doing at my alliant dot com 101 00:07:09,180 --> 00:07:12,970 Suze: where you're putting money in every single month, maybe you're 102 00:07:12,970 --> 00:07:15,640 Suze: putting in that $100 every month that I want you 103 00:07:15,640 --> 00:07:19,000 Suze: to do. And not only will you get that $100 104 00:07:19,000 --> 00:07:20,850 Suze: at the end of 12 months, 105 00:07:21,540 --> 00:07:27,860 Suze: But they're paying you a 1.4% interest rate. Your value 106 00:07:27,860 --> 00:07:31,170 Suze: doesn't fluctuate based on what's happening in the stock market. 107 00:07:31,180 --> 00:07:35,720 Suze: You're getting interest on your money 108 00:07:36,610 --> 00:07:40,820 Suze: and it only fluctuates because it's going up because of 109 00:07:40,820 --> 00:07:46,360 Suze: the interest it's earning. It can never ever go down. 110 00:07:46,890 --> 00:07:51,810 Suze: So your balance when you're making interest, the balance can 111 00:07:51,810 --> 00:07:57,100 Suze: never ever go down. That's what interest happens to be. 112 00:07:57,110 --> 00:07:59,610 Suze: By the way, listen to the end of this podcast 113 00:07:59,620 --> 00:08:03,370 Suze: and you'll hear everything that you need to know about. 114 00:08:03,380 --> 00:08:07,050 Suze: The Ultimate Opportunity Savings account and why you all should 115 00:08:07,050 --> 00:08:08,520 Suze: be doing it anyway, 116 00:08:09,080 --> 00:08:10,280 Suze: Dividends. 117 00:08:11,450 --> 00:08:16,010 Suze: Dividends are when you buy an exchange traded fund, maybe 118 00:08:16,020 --> 00:08:19,810 Suze: a no load mutual fund, maybe you're buying an individual 119 00:08:19,810 --> 00:08:20,660 Suze: stock 120 00:08:21,360 --> 00:08:25,060 Suze: and some of the stocks within the exchange traded fund 121 00:08:25,070 --> 00:08:30,560 Suze: or mutual fund pay you income known as a dividend 122 00:08:30,570 --> 00:08:34,570 Suze: every quarter. Sometimes they do it every month, but let's 123 00:08:34,570 --> 00:08:36,690 Suze: say it's an individual stock 124 00:08:37,410 --> 00:08:40,910 Suze: and they have enough money that they want to return 125 00:08:40,910 --> 00:08:45,910 Suze: some of that money to the investors in that stock 126 00:08:45,920 --> 00:08:49,480 Suze: and they return it to you in the form of 127 00:08:49,490 --> 00:08:51,000 Suze: a dividend. 128 00:08:51,610 --> 00:08:55,179 Suze: Now they don't have to give you a dividend, but 129 00:08:55,179 --> 00:08:58,690 Suze: if they want to give you a dividend, they declare 130 00:08:58,700 --> 00:09:02,069 Suze: a dividend of a specific amount of money and they 131 00:09:02,070 --> 00:09:08,110 Suze: usually pay that to you every single quarter. However, the 132 00:09:08,110 --> 00:09:11,880 Suze: value of that stock can go up can go down. 133 00:09:11,890 --> 00:09:16,050 Suze: So your balance isn't safe, so to speak. Your original 134 00:09:16,050 --> 00:09:17,130 Suze: investment 135 00:09:17,400 --> 00:09:20,400 Suze: isn't safe where it just stays with what you put 136 00:09:20,410 --> 00:09:23,380 Suze: in it. Like when you put it in the Alliant 137 00:09:23,380 --> 00:09:24,570 Suze: credit union, 138 00:09:25,250 --> 00:09:29,260 Suze: so that is a dividend versus interest. 139 00:09:30,020 --> 00:09:35,819 Suze: Series I Bonds are paying you interest, Devon the energy 140 00:09:35,820 --> 00:09:40,420 Suze: stock is paying you a dividend, but Devon can go 141 00:09:40,429 --> 00:09:44,540 Suze: up and down in value. The dividend can go up 142 00:09:44,550 --> 00:09:49,340 Suze: or down, so everything can fluctuate there. Now interest can 143 00:09:49,340 --> 00:09:54,330 Suze: go up and down, but your balance can never go 144 00:09:54,340 --> 00:09:57,589 Suze: down if it's in a savings account 145 00:09:58,179 --> 00:10:04,220 Suze: or an I Bond or something like that. Next. So we 146 00:10:04,220 --> 00:10:06,970 Suze: know what I think about the stock market, 147 00:10:07,520 --> 00:10:10,760 Suze: we know the dividends versus interest right now. 148 00:10:11,300 --> 00:10:15,280 Suze: So why do I like dollar cost averaging? 149 00:10:16,040 --> 00:10:21,720 Suze: Which means you put a specific sum of money every 150 00:10:21,720 --> 00:10:24,860 Suze: month or every three months or every six months. You 151 00:10:24,860 --> 00:10:29,920 Suze: choose the time frame into an investment that you want 152 00:10:29,920 --> 00:10:30,679 Suze: to make 153 00:10:31,240 --> 00:10:35,010 Suze: and you do that every month or every quarter or 154 00:10:35,010 --> 00:10:39,070 Suze: whatever month in, month out year in year out. 155 00:10:39,640 --> 00:10:44,120 Suze: And when you are buying something, if the price of 156 00:10:44,120 --> 00:10:49,260 Suze: what you're buying has gone up your dollars, buy less shares, 157 00:10:49,270 --> 00:10:52,710 Suze: if the price of what you are buying goes down, 158 00:10:52,750 --> 00:10:57,650 Suze: your dollars, buy more shares just to give you a 159 00:10:57,660 --> 00:11:02,489 Suze: very simple example is let's say you're buying something 160 00:11:02,980 --> 00:11:08,670 Suze: at $10 a share and you're buying $100 worth every 161 00:11:08,670 --> 00:11:13,210 Suze: single month at $10 a share. You're able to buy 162 00:11:13,220 --> 00:11:17,240 Suze: 10 shares. Now all of a sudden it's gone up 163 00:11:17,240 --> 00:11:22,150 Suze: to what $20 a share. So your $100 will only 164 00:11:22,150 --> 00:11:26,520 Suze: buy you five shares. But let's say it goes down 165 00:11:26,520 --> 00:11:32,949 Suze: to $5 a share, then your $100 buys you 20 shares. 166 00:11:33,309 --> 00:11:37,530 Suze: So when the price goes down, you buy more shares, 167 00:11:37,540 --> 00:11:41,720 Suze: when the price goes up, you're able to buy less shares. 168 00:11:41,750 --> 00:11:46,530 Suze: But over time you are averaging the cost of what 169 00:11:46,530 --> 00:11:48,790 Suze: you are buying with your dollars. 170 00:11:49,550 --> 00:11:52,809 Suze: So that in the long run you take advantage of 171 00:11:52,809 --> 00:11:57,429 Suze: the fluctuation of the stock or the exchange traded fund 172 00:11:57,440 --> 00:12:02,080 Suze: or a mutual fund that you are buying. Just that simple. 173 00:12:02,110 --> 00:12:05,140 Suze: A lot of you think you should just put all 174 00:12:05,140 --> 00:12:08,449 Suze: your money in at once known as lump sum investing 175 00:12:09,000 --> 00:12:13,290 Suze: and I just think that's dangerous in markets that go up, 176 00:12:13,300 --> 00:12:16,770 Suze: that go down, that go up then go down. I 177 00:12:16,770 --> 00:12:20,900 Suze: just think you're better off, especially if you don't have 178 00:12:20,910 --> 00:12:26,309 Suze: a lot of money to dollar cost average into these markets. 179 00:12:26,780 --> 00:12:30,030 Suze: And again that's what many of you are doing within 180 00:12:30,030 --> 00:12:35,780 Suze: your 401k, 403b, T. S. P. Hopefully your Roth IRA 181 00:12:35,780 --> 00:12:39,100 Suze: hopefully you're only investing in Roth retirement accounts. 182 00:12:39,740 --> 00:12:44,240 Suze: However, that's essentially what you're doing month in and month out. 183 00:12:44,990 --> 00:12:47,940 Suze: I want to give you an example if you had 184 00:12:47,940 --> 00:12:54,760 Suze: dollar cost averaged into the Vanguard Total Stock Market E. T. F. 185 00:12:54,770 --> 00:12:58,740 Suze: Which as many of you know is one of my favorite, 186 00:12:58,750 --> 00:13:02,230 Suze: if not all time favorite E. T. F. s out there. 187 00:13:02,800 --> 00:13:05,490 Suze: And I'll tell you why that is in a few minutes. 188 00:13:05,540 --> 00:13:10,260 Suze: But if you had dollar cost averaged into it, starting 189 00:13:10,270 --> 00:13:13,360 Suze: in January of 2020 190 00:13:13,900 --> 00:13:16,930 Suze: where you would be right now. 191 00:13:17,790 --> 00:13:21,090 Suze: Now in January 2020 192 00:13:21,960 --> 00:13:28,240 Suze: V. T. I was at $163 a share the first 193 00:13:28,250 --> 00:13:29,340 Suze: of the week there. 194 00:13:30,000 --> 00:13:32,640 Suze: And if you had dollar cost average the first of 195 00:13:32,640 --> 00:13:39,680 Suze: the week every month from then until August 1st 2022, 196 00:13:40,330 --> 00:13:44,730 Suze: you would have paid in January 1 63 in February 197 00:13:44,730 --> 00:13:47,290 Suze: you would have paid 150 in March. You would have 198 00:13:47,290 --> 00:13:55,110 Suze: paid 129 in April 145 in May 153 in June 156. 199 00:13:55,120 --> 00:13:56,429 Suze: And on and on 200 00:13:57,070 --> 00:14:04,900 Suze: V. T. I. As the months went on went up 22-33. 201 00:14:04,910 --> 00:14:06,449 Suze: It went up there 202 00:14:06,990 --> 00:14:10,100 Suze: And then it started to also go down to where 203 00:14:10,100 --> 00:14:13,170 Suze: it went down as low as 188. 204 00:14:14,260 --> 00:14:18,270 Suze: Now because you were dollar cost averaging that entire time 205 00:14:18,990 --> 00:14:24,510 Suze: As of August 1, 2022 when it was at 207 206 00:14:24,510 --> 00:14:26,880 Suze: when you would have dollar cost averaged into it. 207 00:14:27,570 --> 00:14:33,510 Suze: Your average price would have been $196 a share. 208 00:14:34,320 --> 00:14:36,590 Suze: But during all that time 209 00:14:37,360 --> 00:14:42,690 Suze: It also paid you a dividend, because remember exchange traded 210 00:14:42,690 --> 00:14:47,370 Suze: funds can also pay dividends. It paid you a dividend 211 00:14:47,380 --> 00:14:53,730 Suze: over all of those times accumulated of $5.70 a share. 212 00:14:54,440 --> 00:14:58,470 Suze: So the truth of the matter is that your true 213 00:14:58,470 --> 00:15:03,240 Suze: cost basis in V. T. I. as of today is 214 00:15:03,950 --> 00:15:05,570 Suze: $190 a share. 215 00:15:06,240 --> 00:15:10,420 Suze: And the price of VTI . Today are actually on 216 00:15:10,420 --> 00:15:14,580 Suze: Friday was $215 a share. 217 00:15:15,300 --> 00:15:23,250 Suze: So from January 2020 till now you're still up 14% 218 00:15:23,260 --> 00:15:30,270 Suze: on your money, 14% over 2.5 years now, that's not great. 219 00:15:30,280 --> 00:15:34,260 Suze: That averages about 5% a year the time you know 220 00:15:34,260 --> 00:15:38,880 Suze: since you've been in there but it's still a positive return. 221 00:15:39,970 --> 00:15:43,780 Suze: So it gave you diversification, it gave you a return, 222 00:15:43,790 --> 00:15:46,530 Suze: it will continue to go up, continue to go down 223 00:15:46,620 --> 00:15:50,100 Suze: is paying you a nice dividend. And so that's why 224 00:15:50,100 --> 00:15:54,240 Suze: I like dollar cost averaging because in markets that are 225 00:15:54,240 --> 00:15:57,490 Suze: crazy maybe you don't make as much money as if 226 00:15:57,490 --> 00:16:00,270 Suze: you've just taken all of your money and invested it 227 00:16:00,280 --> 00:16:02,640 Suze: but you're not gonna lose it either 228 00:16:03,190 --> 00:16:05,470 Suze: Because you know you could have gotten in when it 229 00:16:05,470 --> 00:16:10,630 Suze: was at $241 a share. Now it's at $215 and 230 00:16:10,630 --> 00:16:14,170 Suze: you would be down considerably on your money. 231 00:16:15,020 --> 00:16:18,800 Suze: So I like the diversification of it. I like dollar 232 00:16:18,800 --> 00:16:22,800 Suze: cost averaging but still why do I like V. T. I. 233 00:16:22,800 --> 00:16:24,020 Suze: so much? 234 00:16:24,550 --> 00:16:28,580 Suze: I want all of you to be seriously diversified. 235 00:16:29,350 --> 00:16:33,460 Suze: But when these markets start to go up big, if 236 00:16:33,460 --> 00:16:37,130 Suze: you look at what goes up big it's usually the 237 00:16:37,130 --> 00:16:40,960 Suze: technology stocks, the growth stocks 238 00:16:41,880 --> 00:16:44,400 Suze: but you don't want all of your money just in 239 00:16:44,410 --> 00:16:47,190 Suze: technology you want diversification. 240 00:16:47,780 --> 00:16:52,900 Suze: But with V. T. I. Their top 10 holdings out 241 00:16:52,900 --> 00:16:55,690 Suze: of the thousands of stocks that they have in there 242 00:16:55,700 --> 00:17:03,860 Suze: are Apple, Microsoft, Amazon, Alphabet which is Google, Tesla right. United Health, 243 00:17:03,870 --> 00:17:08,650 Suze: Johnson and Johnson, Berkshire Hatheway, Meta which is Facebook, things 244 00:17:08,650 --> 00:17:09,620 Suze: like that. 245 00:17:10,140 --> 00:17:14,189 Suze: And those are the stocks that are skyrocketing right now. 246 00:17:14,930 --> 00:17:18,040 Suze: And so I like that you get to participate in 247 00:17:18,040 --> 00:17:24,590 Suze: that at the same time that you have incredible diversification . 248 00:17:25,070 --> 00:17:27,189 Suze: That's why I like it so much. 249 00:17:27,850 --> 00:17:31,580 Suze: So it's really important that if you are invested in 250 00:17:31,580 --> 00:17:36,190 Suze: the stock market that you have diversification if you own 251 00:17:36,200 --> 00:17:40,550 Suze: individual stocks, you have to own at least 25 stocks 252 00:17:40,660 --> 00:17:43,720 Suze: because you never want more than 4% of your money 253 00:17:43,730 --> 00:17:45,970 Suze: in one individual stock. 254 00:17:46,690 --> 00:17:49,550 Suze: And so either you can do that or buy an 255 00:17:49,550 --> 00:17:52,690 Suze: exchange traded fund like V. T. I. 256 00:17:53,260 --> 00:17:56,320 Suze: Or even diversify more like buying E. T. F. S. 257 00:17:56,320 --> 00:18:00,280 Suze: That are made up of staple stocks only like XLP 258 00:18:00,290 --> 00:18:04,899 Suze: which will absolutely stand up if we go into recession 259 00:18:05,520 --> 00:18:07,710 Suze: and things like that. 260 00:18:08,670 --> 00:18:12,580 Suze: So I just want you to think about that for 261 00:18:12,580 --> 00:18:13,470 Suze: a second here 262 00:18:14,300 --> 00:18:17,160 Suze: which brings me now to Devon. 263 00:18:17,800 --> 00:18:21,270 Suze: You've been hearing me talk about Devon symbol D. V. 264 00:18:21,270 --> 00:18:24,890 Suze: N a lot lately. I started to talk about it 265 00:18:24,890 --> 00:18:28,510 Suze: way back when but really I brought it up again 266 00:18:28,510 --> 00:18:31,639 Suze: two or three weeks ago and I brought it up 267 00:18:31,640 --> 00:18:36,810 Suze: again because it had fallen down to $56 a share 268 00:18:37,450 --> 00:18:40,909 Suze: and what an incredible price for that stock it's an 269 00:18:40,910 --> 00:18:44,930 Suze: energy stock to be at because it was paid a 270 00:18:44,930 --> 00:18:50,030 Suze: really large dividend and the lower a stock falls and 271 00:18:50,030 --> 00:18:53,380 Suze: when you buy it, the higher the dividend yield to 272 00:18:53,380 --> 00:18:56,590 Suze: you happens to be because you didn't pay as much 273 00:18:56,590 --> 00:19:01,000 Suze: for it as remember everybody gets the same dividend no 274 00:19:01,000 --> 00:19:04,380 Suze: matter what price you pay for that stock. 275 00:19:05,330 --> 00:19:09,000 Suze: So I really wanted you to take advantage of it. 276 00:19:09,010 --> 00:19:11,600 Suze: Did I want you to put all of your money 277 00:19:11,600 --> 00:19:16,619 Suze: into devon? No, did I want you to remain diversified? 278 00:19:16,630 --> 00:19:22,180 Suze: Yes but you can't be overly invested in energy stocks. 279 00:19:22,250 --> 00:19:26,770 Suze: That's not smart either because energy stocks like Devon and 280 00:19:26,780 --> 00:19:31,130 Suze: can be hit. But I wanted it for the dividend 281 00:19:31,740 --> 00:19:34,250 Suze: and many of you wrote me and said oh you 282 00:19:34,250 --> 00:19:36,840 Suze: were buying it for growth and I was like you 283 00:19:36,840 --> 00:19:39,609 Suze: should not be buying this, I wanted you to buy 284 00:19:39,609 --> 00:19:41,000 Suze: it for the dividend. 285 00:19:41,609 --> 00:19:45,970 Suze: Now, is it possible that Devon can grow? Of course 286 00:19:45,980 --> 00:19:49,330 Suze: it is. I mean since we talked about it two 287 00:19:49,330 --> 00:19:52,410 Suze: weeks ago or whatever, it's up 17%. 288 00:19:53,260 --> 00:19:58,659 Suze: But oil is very volatile right now. Truthfully I think 289 00:19:58,660 --> 00:20:01,980 Suze: Devon will get through it. I think it easily can 290 00:20:01,980 --> 00:20:05,920 Suze: be a stock that's in its seventies but it's not 291 00:20:05,930 --> 00:20:10,090 Suze: about the price of the stock as much as the dividend. Now, 292 00:20:10,090 --> 00:20:11,830 Suze: the question has to be 293 00:20:12,850 --> 00:20:17,399 Suze: This dividend that they're going to pay shortly here um 294 00:20:17,410 --> 00:20:23,280 Suze: of a $1.55 which comes out to be about $5.08 295 00:20:23,290 --> 00:20:26,740 Suze: a year in dividends, is it secure? 296 00:20:27,680 --> 00:20:32,760 Suze: They have tremendous free cash flow on their operations, even 297 00:20:32,770 --> 00:20:39,110 Suze: if we did some serious conservative calculations, worst case scenario, 298 00:20:39,109 --> 00:20:41,960 Suze: the dividend goes down to 4.5 or 5%. 299 00:20:42,960 --> 00:20:46,410 Suze: But I think it's going to stay here. But I 300 00:20:46,410 --> 00:20:50,980 Suze: think income is going to be very necessary for some people, 301 00:20:50,990 --> 00:20:55,460 Suze: especially in retirement. And I think Devon is a great 302 00:20:55,470 --> 00:20:58,450 Suze: way to do it now. With that said, how would 303 00:20:58,450 --> 00:21:01,540 Suze: I own Devon? I would have V. T. I. The 304 00:21:01,540 --> 00:21:04,970 Suze: vanguard total stock market index E. T. F. I might 305 00:21:04,970 --> 00:21:10,080 Suze: have XLP the staple stocks that E. T. F. 306 00:21:10,390 --> 00:21:15,230 Suze: And maybe I would have a very small amount of Devon, 307 00:21:15,440 --> 00:21:19,030 Suze: one might say. As you've asked me before, why not 308 00:21:19,030 --> 00:21:22,909 Suze: just continue to buy XLE . Which is the E. T. F. 309 00:21:22,920 --> 00:21:27,460 Suze: Of energy and gas and things like that. I don't know... 310 00:21:27,470 --> 00:21:29,970 Suze: you can you can absolutely do that. 311 00:21:30,550 --> 00:21:35,020 Suze: But there's a tremendous difference in the dividend between X. L. E. 312 00:21:35,710 --> 00:21:40,450 Suze: And Devon, even though I know XLE is giving you 313 00:21:40,450 --> 00:21:43,710 Suze: more diversification, I'm not asking you to buy a lot 314 00:21:43,710 --> 00:21:47,469 Suze: of Devon, I don't even care if you buy Devon truthfully. 315 00:21:47,750 --> 00:21:52,070 Suze: But again, I'm just being clear once again because so 316 00:21:52,070 --> 00:21:56,469 Suze: many of you've been writing on why I like Devon 317 00:21:57,240 --> 00:21:59,190 Suze: at this point in time. 318 00:22:00,000 --> 00:22:04,320 Suze: All right, so what did we do today? We cleared 319 00:22:04,320 --> 00:22:08,850 Suze: up Colo, we cleared up July 31st, we cleared up 320 00:22:08,850 --> 00:22:14,130 Suze: dividends versus interest. We cleared up dollar cost averaging and 321 00:22:14,130 --> 00:22:17,740 Suze: why I like it. We cleared up the E. T. F. 322 00:22:17,750 --> 00:22:21,959 Suze: Vanguard Total Stock Market index E. T. F. Symbol V. T. I. 323 00:22:22,200 --> 00:22:25,940 Suze: and why I like that. We cleared up Devon 324 00:22:26,450 --> 00:22:28,330 Suze: and hopefully 325 00:22:29,130 --> 00:22:34,060 Suze: we're clear on everything at this moment in time. So 326 00:22:34,060 --> 00:22:39,379 Suze: until next Thursday, when Ms. Travis joins us, there's really 327 00:22:39,380 --> 00:22:41,550 Suze: only one thing that I want for all of you 328 00:22:41,560 --> 00:22:44,889 Suze: and your money and it is this: for you to 329 00:22:44,890 --> 00:22:50,230 Suze: stay Smart, Strong, Safe and Secure. See you soon. Bye 330 00:22:50,230 --> 00:22:51,020 Suze: bye now.