1 00:00:44,889 --> 00:00:51,290 Suze: November 5th, 2023. Welcome everybody to the Women and Money 2 00:00:51,299 --> 00:00:57,369 Suze: podcast as well as everybody smart enough to listen, Suze 3 00:00:57,380 --> 00:01:02,029 Suze: O here and today is Suze School. You know what 4 00:01:02,040 --> 00:01:07,569 Suze: else today is today happens to be daylight savings time 5 00:01:08,139 --> 00:01:10,649 Suze: and you know, I live my life and I think 6 00:01:10,660 --> 00:01:14,709 Suze: I've told you this before by a saying that 7 00:01:15,379 --> 00:01:21,800 Suze: I always need to see the sunrise and the sun set. 8 00:01:22,250 --> 00:01:26,679 Suze: So especially during daylight savings time, at least for a while, 9 00:01:27,019 --> 00:01:30,639 Suze: that's something that actually is easier to do in terms 10 00:01:30,650 --> 00:01:33,900 Suze: of the sunrise. And it's something that maybe all of 11 00:01:33,910 --> 00:01:37,870 Suze: you should start to participate in as well. 12 00:01:38,599 --> 00:01:43,300 Suze: Now, maybe you're sitting there wondering why Suze, why do 13 00:01:43,309 --> 00:01:46,410 Suze: I need to see the sun rise and the sun set? 14 00:01:47,029 --> 00:01:52,769 Suze: And that is because in life, we should never ever 15 00:01:52,779 --> 00:01:55,290 Suze: take anything for granted. 16 00:01:56,089 --> 00:01:59,129 Suze: We should never take it for granted that the sun 17 00:01:59,139 --> 00:02:02,000 Suze: is going to rise and the sun is going to set. 18 00:02:02,370 --> 00:02:07,410 Suze: We should never take for granted any of Mother Nature's Marvels. 19 00:02:07,419 --> 00:02:11,229 Suze: We should not take for granted our health. We should 20 00:02:11,240 --> 00:02:13,668 Suze: not take for granted our freedom. 21 00:02:13,929 --> 00:02:17,529 Suze: We should not take for granted our jobs and that 22 00:02:17,538 --> 00:02:19,910 Suze: we're always gonna be able to work and make money. 23 00:02:19,919 --> 00:02:23,710 Suze: So therefore, you don't need to save money. We should 24 00:02:23,720 --> 00:02:28,229 Suze: never take our loved ones for granted or our money 25 00:02:28,240 --> 00:02:31,830 Suze: and what we do with it. So to that end, 26 00:02:32,210 --> 00:02:33,929 Suze: it's important for you 27 00:02:34,508 --> 00:02:37,619 Suze: to not take for granted that money just will be 28 00:02:37,630 --> 00:02:39,649 Suze: money and you can do this with it and do 29 00:02:39,660 --> 00:02:44,100 Suze: that with it and not understanding why you are doing that, 30 00:02:44,229 --> 00:02:46,610 Suze: which you need to do with money. 31 00:02:47,389 --> 00:02:51,979 Suze: So before I ask you to take out your Suze notebooks, 32 00:02:52,270 --> 00:02:55,520 Suze: I understand very well that many of you have been 33 00:02:55,529 --> 00:02:58,350 Suze: writing me and you want to know about I bonds. 34 00:02:58,389 --> 00:03:01,888 Suze: Should you continue to invest in I bonds since they 35 00:03:01,899 --> 00:03:05,649 Suze: just gave the new interest rate for them? On November 1st, 36 00:03:06,149 --> 00:03:09,330 Suze: should you sell bonds that you already have to buy 37 00:03:09,339 --> 00:03:14,550 Suze: new ones? So many questions. So on Thursday, for Ask 38 00:03:14,559 --> 00:03:20,330 Suze: KT and Suze anything, we will be answering all your 39 00:03:20,339 --> 00:03:23,210 Suze: questions on I bonds. 40 00:03:25,119 --> 00:03:30,299 Suze: But for now, take out your Suze notebooks because I 41 00:03:30,309 --> 00:03:33,740 Suze: have a feeling that you may need them. 42 00:03:34,669 --> 00:03:39,639 Suze: You know, over the past many, many podcasts, I've tried 43 00:03:39,649 --> 00:03:44,889 Suze: to teach you about what a normal yield rate curve 44 00:03:44,899 --> 00:03:51,229 Suze: is and an inverted yield rate curve. And very simply, 45 00:03:51,660 --> 00:03:56,009 Suze: it's normally you are paid for risk 46 00:03:56,789 --> 00:04:00,529 Suze: and one of the elements of risk is time, 47 00:04:01,399 --> 00:04:05,380 Suze: the longer that you are willing to lend any entity, 48 00:04:05,389 --> 00:04:10,059 Suze: whether it be a government, a corporation, your friend, whatever 49 00:04:10,070 --> 00:04:15,080 Suze: it may be, the longer the term of the loan, 50 00:04:15,600 --> 00:04:19,369 Suze: usually the more risk you are taking and you are 51 00:04:19,380 --> 00:04:23,540 Suze: taking more of a risk because anything can happen from 52 00:04:23,549 --> 00:04:27,058 Suze: the time that you lend an entity money and the 53 00:04:27,070 --> 00:04:30,769 Suze: time that they have to pay you your principal back, 54 00:04:31,609 --> 00:04:34,359 Suze: I mean, I've had that happen to me, I lent 55 00:04:34,369 --> 00:04:36,190 Suze: my cousin money 56 00:04:36,899 --> 00:04:40,519 Suze: and he was doing great. He was paying it back 57 00:04:41,410 --> 00:04:44,519 Suze: and then he got into trouble and then he couldn't 58 00:04:44,529 --> 00:04:46,510 Suze: pay me back any more. 59 00:04:47,320 --> 00:04:51,140 Suze: So I took a risk and truthfully the risk was, 60 00:04:51,149 --> 00:04:56,420 Suze: I never got the majority of my money back. So 61 00:04:56,428 --> 00:05:01,859 Suze: when you invest in short periods, there's less risk because 62 00:05:01,869 --> 00:05:05,500 Suze: you usually have the ability to get your money back. 63 00:05:06,250 --> 00:05:09,970 Suze: The longer out you go, the more risk there is. 64 00:05:09,980 --> 00:05:14,429 Suze: So let's just talk about treasuries right now and a 65 00:05:14,440 --> 00:05:18,920 Suze: treasury is where you are lending the government money so 66 00:05:18,928 --> 00:05:21,989 Suze: that they can pay their bills and do other things 67 00:05:22,000 --> 00:05:22,709 Suze: with it. 68 00:05:23,570 --> 00:05:29,220 Suze: And the longer out you go in a normal situation, 69 00:05:29,320 --> 00:05:34,919 Suze: the more of an interest rate you will be paid again, 70 00:05:34,928 --> 00:05:41,859 Suze: a normal yield rate curve is that bills which are 71 00:05:41,869 --> 00:05:43,299 Suze: very short term 72 00:05:43,988 --> 00:05:46,429 Suze: pay you less than notes. 73 00:05:47,220 --> 00:05:51,409 Suze: Notes are usually from two years to 10 years. They 74 00:05:51,420 --> 00:05:55,890 Suze: pay you more than bills, but they pay you less 75 00:05:55,899 --> 00:06:03,269 Suze: normally than bonds that are 20, 30 year bonds. What started 76 00:06:03,279 --> 00:06:06,329 Suze: to happen a little while ago, 77 00:06:07,149 --> 00:06:14,579 Suze: the yield rate curve inverted where you were getting more 78 00:06:14,589 --> 00:06:20,779 Suze: for treasury bills than you were for treasury notes as 79 00:06:20,790 --> 00:06:26,428 Suze: well as treasury bonds. The worst had it got. Actually, 80 00:06:26,440 --> 00:06:31,570 Suze: this inversion happened around July 3rd of this year 81 00:06:32,160 --> 00:06:35,130 Suze: and it was as bad as it had gotten back 82 00:06:35,140 --> 00:06:40,750 Suze: in 1981. And that's a long time ago. But around 83 00:06:40,760 --> 00:06:42,100 Suze: July 3rd, 84 00:06:43,260 --> 00:06:47,289 Suze: you could have done a two year Treasury Note 85 00:06:48,109 --> 00:06:57,369 Suze: for 4.9% but a 10 year treasury note was at 3.8%. 86 00:06:57,910 --> 00:07:02,808 Suze: So there was essentially a 1.1% difference 87 00:07:03,570 --> 00:07:09,409 Suze: that's also known as 109 basis points. All right. So 88 00:07:09,440 --> 00:07:17,399 Suze: 109 basis points equates to about a 1.1% difference. Now, 89 00:07:17,410 --> 00:07:20,140 Suze: what you need to understand 90 00:07:20,959 --> 00:07:25,600 Suze: is that for some reason, the yield curve is really 91 00:07:25,609 --> 00:07:30,809 Suze: based on the difference between the two year note and 92 00:07:30,820 --> 00:07:32,739 Suze: the 10 year note. 93 00:07:33,420 --> 00:07:38,208 Suze: If the 10 year note starts to go up. Usually 94 00:07:38,220 --> 00:07:43,130 Suze: that's what mortgage rates are based on mortgage rates are 95 00:07:43,140 --> 00:07:47,690 Suze: not based on what the fed funds are doing. They're 96 00:07:47,700 --> 00:07:53,339 Suze: based on what's happening with the 10 year note. And 97 00:07:53,350 --> 00:07:56,369 Suze: I am sure that you will see because the 10 98 00:07:56,380 --> 00:07:58,700 Suze: year note now has started to come down, 99 00:07:59,209 --> 00:08:03,910 Suze: that mortgage rates will not be in the 8% area anymore. 100 00:08:03,989 --> 00:08:08,390 Suze: They will now be back in the 7% area. So 101 00:08:08,399 --> 00:08:14,859 Suze: truthfully when looking at interest rates, I want you to 102 00:08:14,869 --> 00:08:20,190 Suze: pay attention to the two year Treasury note versus the 103 00:08:20,200 --> 00:08:22,470 Suze: 10 year Treasury note. 104 00:08:23,230 --> 00:08:28,730 Suze: So in July, we had what was called a major 105 00:08:28,809 --> 00:08:35,770 Suze: inverted yield curve. All right, because you were being paid 1% 106 00:08:35,780 --> 00:08:40,530 Suze: more for a two year note than a 10 year note. 107 00:08:41,619 --> 00:08:45,799 Suze: Now, what you have to understand when we have an 108 00:08:45,809 --> 00:08:49,400 Suze: inverted yield curve, everybody freaks out 109 00:08:50,109 --> 00:08:54,929 Suze: and they freak out because normally when the yield curve 110 00:08:54,940 --> 00:08:56,530 Suze: is inverted, 111 00:08:57,700 --> 00:09:07,679 Suze: that means it is a recessionary signal that usually recession follows. However, 112 00:09:07,690 --> 00:09:14,169 Suze: most people truly don't understand how the yield curve in 113 00:09:14,239 --> 00:09:21,059 Suze: regards to a recession actually works. It's not like we 114 00:09:21,070 --> 00:09:24,320 Suze: get an inverted yield curve and immediately 115 00:09:25,109 --> 00:09:26,690 Suze: a recession happens. 116 00:09:27,580 --> 00:09:31,979 Suze: It's usually 12 to 18 months, maybe two years after 117 00:09:31,989 --> 00:09:35,760 Suze: the beginning of the inverted yield curve. 118 00:09:36,630 --> 00:09:41,449 Suze: Now, really what happens and this is what is happening 119 00:09:41,460 --> 00:09:42,609 Suze: right now 120 00:09:43,609 --> 00:09:48,820 Suze: is when the yield curve starts to flatten out, 121 00:09:50,159 --> 00:09:56,219 Suze: not where it's really inverted dramatically anymore, it starts to 122 00:09:56,229 --> 00:09:57,580 Suze: flatten out 123 00:09:58,330 --> 00:10:05,479 Suze: that is actually after an inverted yield curve more dangerous 124 00:10:06,049 --> 00:10:08,479 Suze: than when it's really being inverted. 125 00:10:09,400 --> 00:10:12,880 Suze: And the reason is there has never been a time 126 00:10:13,270 --> 00:10:18,659 Suze: when the inverted yield curve flattened out as it is 127 00:10:18,669 --> 00:10:23,618 Suze: right now. It's flattening out where maybe a year or 128 00:10:23,630 --> 00:10:27,289 Suze: so from now or six months or eight months from now. 129 00:10:27,299 --> 00:10:29,859 Suze: A recession hasn't happened. 130 00:10:30,580 --> 00:10:32,880 Suze: You cannot take it for granted 131 00:10:34,030 --> 00:10:37,940 Suze: that just because the feds did not raise interest rates 132 00:10:37,950 --> 00:10:43,950 Suze: last week, interest rates are possibly starting to come down. Inflation. 133 00:10:44,090 --> 00:10:48,319 Suze: The feds are indicating that inflation and their moves are 134 00:10:48,330 --> 00:10:51,250 Suze: taking hold. So they're kind of happy with that, which 135 00:10:51,260 --> 00:10:54,030 Suze: is why by the way, the stock market went up 136 00:10:54,039 --> 00:10:56,049 Suze: so much last week, 137 00:10:57,309 --> 00:11:01,950 Suze: you cannot take it for granted that these signs are 138 00:11:01,960 --> 00:11:05,239 Suze: absolute great signs for you. 139 00:11:06,320 --> 00:11:10,659 Suze: If you now look at the two year and the 140 00:11:10,669 --> 00:11:12,299 Suze: 10 year notes, 141 00:11:12,950 --> 00:11:18,890 Suze: you could do a two year note for approximately 4.85% 142 00:11:19,140 --> 00:11:25,890 Suze: but a 10 year note for about 4.58%. So we're 143 00:11:25,900 --> 00:11:28,590 Suze: actually closer. That's pretty flat 144 00:11:30,109 --> 00:11:36,059 Suze: and therefore things could possibly start to become more recessionary 145 00:11:36,309 --> 00:11:39,849 Suze: in six or eight months. So you need to prepare 146 00:11:39,859 --> 00:11:40,450 Suze: for that. 147 00:11:41,609 --> 00:11:47,369 Suze: So what do I think about interest rates? I think 148 00:11:47,380 --> 00:11:51,439 Suze: what you're going to see happen with interest rates is 149 00:11:51,450 --> 00:11:56,580 Suze: that interest rates are going to start to come down here, 150 00:11:56,590 --> 00:11:57,750 Suze: but not for long, 151 00:11:58,500 --> 00:12:01,960 Suze: they will come down for a while. We'll have to 152 00:12:01,969 --> 00:12:05,590 Suze: see what they tell us when they do. But after 153 00:12:05,599 --> 00:12:06,988 Suze: they have come down, 154 00:12:07,940 --> 00:12:10,400 Suze: I don't think they're gonna stay down. 155 00:12:11,030 --> 00:12:14,848 Suze: I think they will then turn around and go right 156 00:12:14,989 --> 00:12:21,848 Suze: back up again. But I don't know when that will be, 157 00:12:22,650 --> 00:12:25,750 Suze: you know, when I told all of you a little 158 00:12:25,760 --> 00:12:30,799 Suze: bit ago to start dipping your toes into the 30 159 00:12:31,030 --> 00:12:35,429 Suze: year bond, especially if it was over 5% 160 00:12:36,219 --> 00:12:40,250 Suze: and it hit five per cent twice over that since 161 00:12:40,260 --> 00:12:41,559 Suze: I've told you that 162 00:12:42,270 --> 00:12:47,010 Suze: it's now approximately at 4.7%. 163 00:12:47,710 --> 00:12:51,979 Suze: So what's interesting about that? Is that many of you 164 00:12:51,989 --> 00:12:56,890 Suze: hear me say a 30 year bond and your response 165 00:12:56,900 --> 00:13:01,650 Suze: to that is Suze, I'm gonna be dead in 30 years. 166 00:13:02,039 --> 00:13:06,049 Suze: I'm not gonna hold that for 30 years. I have 167 00:13:06,059 --> 00:13:10,809 Suze: never said to you that if you buy a 20 168 00:13:10,820 --> 00:13:15,010 Suze: or 30 year bond that I expect you to keep 169 00:13:15,020 --> 00:13:16,250 Suze: it forever, 170 00:13:17,229 --> 00:13:20,840 Suze: I told you that if interest rates start to come down, 171 00:13:20,849 --> 00:13:24,750 Suze: which essentially they have right now on the 30 year 172 00:13:24,760 --> 00:13:26,000 Suze: bond anyway, 173 00:13:26,880 --> 00:13:31,349 Suze: that you will make good money. Now, if all of 174 00:13:31,359 --> 00:13:35,239 Suze: you who took advantage of the 30 year bond, once 175 00:13:35,250 --> 00:13:38,719 Suze: it was at 5% or a little over, you would 176 00:13:38,729 --> 00:13:42,919 Suze: see that if you looked at your balance right now, 177 00:13:42,929 --> 00:13:48,510 Suze: you are approximately up 3% on your money in less 178 00:13:48,520 --> 00:13:49,609 Suze: than a month 179 00:13:50,760 --> 00:13:54,760 Suze: and many of you are making three or 4% on 180 00:13:54,770 --> 00:13:57,380 Suze: your money. If you hold it for an entire year. 181 00:13:58,239 --> 00:14:02,489 Suze: So there will also come a time when you will 182 00:14:02,500 --> 00:14:05,020 Suze: sell that 30 year bond 183 00:14:05,840 --> 00:14:10,900 Suze: and maybe at that point, just wait, go into shorter term. 184 00:14:10,909 --> 00:14:14,439 Suze: We don't know yet, go into longer term later on. 185 00:14:14,559 --> 00:14:18,780 Suze: But we will deal with this economy as it happens. 186 00:14:19,489 --> 00:14:23,940 Suze: This is very different than a stock market where you 187 00:14:23,950 --> 00:14:27,390 Suze: buy a stock. And if it's good stock, you're probably 188 00:14:27,400 --> 00:14:32,210 Suze: gonna hold it for a long, long time when it 189 00:14:32,219 --> 00:14:37,750 Suze: comes to a long term bond. And these types of 190 00:14:37,760 --> 00:14:42,359 Suze: interest rate cycles where it is not straight down from 191 00:14:42,369 --> 00:14:46,929 Suze: here and gonna stay down like it was from 1981 192 00:14:46,940 --> 00:14:47,979 Suze: till recently. 193 00:14:48,659 --> 00:14:53,130 Suze: This is where it will be higher for longer, but 194 00:14:53,140 --> 00:14:57,260 Suze: it will come down and then go back up. So 195 00:14:57,270 --> 00:15:00,390 Suze: we will take advantage of it when it makes sense 196 00:15:00,400 --> 00:15:05,320 Suze: to do so. So what should you be doing right 197 00:15:05,330 --> 00:15:08,869 Suze: now if you happen to have cash? 198 00:15:09,669 --> 00:15:11,809 Suze: All right, I want you to listen to me 199 00:15:13,109 --> 00:15:16,909 Suze: last week, KT and I had a long talk with 200 00:15:16,919 --> 00:15:17,969 Suze: Dennis Devine. 201 00:15:18,809 --> 00:15:22,599 Suze: And if you don't know him is the CEO of 202 00:15:22,609 --> 00:15:27,390 Suze: Alliant Credit Union. And we should all congratulate him because 203 00:15:27,400 --> 00:15:32,229 Suze: he along with 10 other CEOs got the CEO of 204 00:15:32,239 --> 00:15:36,710 Suze: the Year award for many reasons, but he is an 205 00:15:36,719 --> 00:15:41,530 Suze: incredible CEO because he really, really cares about you. 206 00:15:42,289 --> 00:15:46,429 Suze: And the reason that we had this conversation with him 207 00:15:46,869 --> 00:15:50,049 Suze: was he had a question that he wanted to ask 208 00:15:50,059 --> 00:15:50,419 Suze: me 209 00:15:51,359 --> 00:15:56,690 Suze: and the question was very interesting. He said to me, Suze, 210 00:15:57,159 --> 00:15:58,780 Suze: what is it 211 00:15:59,549 --> 00:16:04,849 Suze: that your listeners really want at this period of time? 212 00:16:05,710 --> 00:16:09,330 Suze: And I said, well, truthfully, Denis, in my opinion, 213 00:16:10,049 --> 00:16:13,669 Suze: they want to be able to invest their money, know 214 00:16:13,679 --> 00:16:15,770 Suze: that it's a good interest rate. They don't want to 215 00:16:15,780 --> 00:16:19,250 Suze: go out necessarily very long. Maybe they don't want to 216 00:16:19,260 --> 00:16:22,489 Suze: do my strategy of 30 year or 20 year bonds. 217 00:16:22,619 --> 00:16:26,229 Suze: They just wanna know that they can invest their money, 218 00:16:26,559 --> 00:16:28,979 Suze: get the highest rate possible 219 00:16:29,760 --> 00:16:33,940 Suze: and have access to it possibly within a two year 220 00:16:33,950 --> 00:16:35,090 Suze: period of time 221 00:16:35,979 --> 00:16:41,590 Suze: and not have to keep reinvesting it and worried about 222 00:16:41,789 --> 00:16:44,929 Suze: every three months. If it matures, will interest rates still 223 00:16:44,940 --> 00:16:48,359 Suze: be the same. Will they go down? They just want 224 00:16:48,369 --> 00:16:54,469 Suze: safety and they want security period. That's what I think 225 00:16:54,479 --> 00:16:55,190 Suze: they want. 226 00:16:56,369 --> 00:16:59,599 Suze: So he said, what does that look like for you? 227 00:16:59,799 --> 00:17:02,190 Suze: And I said, well, you know, Denis, I've been telling 228 00:17:02,200 --> 00:17:05,389 Suze: everybody that I would go out longer. 229 00:17:06,540 --> 00:17:09,689 Suze: I would go out 18 months, I would go out 230 00:17:09,699 --> 00:17:13,390 Suze: two years. I would lock up the money, especially if 231 00:17:13,400 --> 00:17:16,719 Suze: we're talking about a certificate of deposit. 232 00:17:17,619 --> 00:17:23,060 Suze: I said, but you have to be more competitive than 233 00:17:23,069 --> 00:17:27,979 Suze: a two year treasury note. You just have to be Dennis. 234 00:17:28,689 --> 00:17:32,750 Suze: And he listened and I said you need to be 235 00:17:32,760 --> 00:17:37,659 Suze: more competitive than almost anybody out there as well. 236 00:17:38,589 --> 00:17:43,709 Suze: So he came back and he said, ok, try this 237 00:17:43,719 --> 00:17:46,000 Suze: one on for size Suzie. 238 00:17:46,640 --> 00:17:51,889 Suze: He said, what if we did an 18 month certificate 239 00:17:51,900 --> 00:17:56,140 Suze: of deposit for 5.30% 240 00:17:57,319 --> 00:18:02,790 Suze: for under 75,000 and for those who can deposit 75,000 241 00:18:02,800 --> 00:18:07,780 Suze: or more, we give them 5.35%. 242 00:18:08,689 --> 00:18:11,260 Suze: And I said, well, that would be pretty great. Dennis, 243 00:18:11,270 --> 00:18:17,149 Suze: given that the two year treasury note is only at 4.8% 244 00:18:17,160 --> 00:18:18,550 Suze: right around there. 245 00:18:19,530 --> 00:18:23,489 Suze: That would be really great because that's really three quarters 246 00:18:23,500 --> 00:18:26,429 Suze: of a percent, maybe a percent more depending when people 247 00:18:26,439 --> 00:18:27,030 Suze: buy it. 248 00:18:27,939 --> 00:18:29,800 Suze: He said, ok, done. 249 00:18:30,579 --> 00:18:34,689 Suze: I said, are you kidding? He said, no, I'm not kidding. Done. 250 00:18:34,699 --> 00:18:38,050 Suze: You can tell everybody Sunday, which is today 251 00:18:38,930 --> 00:18:43,430 Suze: that they can do that. So two things I want 252 00:18:43,439 --> 00:18:47,790 Suze: to say to you, ok, if you have never deposited 253 00:18:47,800 --> 00:18:53,310 Suze: money with Alliant Credit Union, all of you are eligible 254 00:18:53,319 --> 00:18:56,430 Suze: to do. So you don't have to be a member 255 00:18:56,439 --> 00:19:00,770 Suze: of any organization, do anything. You just would go to 256 00:19:00,780 --> 00:19:04,459 Suze: my alliant dot com. You would sign up 257 00:19:04,880 --> 00:19:07,579 Suze: and there's a way for every one of you to 258 00:19:07,589 --> 00:19:11,750 Suze: be a member. And that's simply by joining foster to 259 00:19:11,760 --> 00:19:16,979 Suze: success for foster kids. And Alliant Credit Union pays that 260 00:19:16,989 --> 00:19:22,540 Suze: nonprofit $5 for you. So you're doing good by helping 261 00:19:22,550 --> 00:19:26,739 Suze: yourself and you're a member of Alliant Credit Union for 262 00:19:26,750 --> 00:19:32,169 Suze: new members of Alliant Credit Union. The 18 month is 263 00:19:32,180 --> 00:19:33,489 Suze: at 5.30. 264 00:19:34,550 --> 00:19:40,629 Suze: Again, 5.35% for those of you for $75,000 or more 265 00:19:41,000 --> 00:19:45,050 Suze: for those of you. However, and listen to me closely, 266 00:19:45,579 --> 00:19:49,839 Suze: you're already a member of Alliant Credit Union. Maybe you've 267 00:19:49,849 --> 00:19:54,209 Suze: already bought short term CDs or whatever it is there 268 00:19:55,189 --> 00:19:59,719 Suze: for you. You get to choose if you want an 269 00:19:59,729 --> 00:20:05,329 Suze: 18 month, a 19 month, a 20 month, a 21 month, 270 00:20:05,339 --> 00:20:12,219 Suze: a 22 month or 23 month certificate of deposit. This 271 00:20:12,229 --> 00:20:16,699 Suze: is only for people who are already members of Alliant 272 00:20:16,709 --> 00:20:21,020 Suze: Credit Union. So you could, if you wanted to, 273 00:20:21,979 --> 00:20:26,729 Suze: you could put $1000 in each one of those maturities 274 00:20:26,739 --> 00:20:29,800 Suze: and get your 5.30% 275 00:20:30,449 --> 00:20:35,829 Suze: or again, 5.35. If in fact, you put in $75,000 276 00:20:35,839 --> 00:20:40,010 Suze: or more or you could just take advantage and do 277 00:20:40,020 --> 00:20:45,750 Suze: a 23 month one, which is almost identical obviously to 278 00:20:45,760 --> 00:20:47,939 Suze: a two year treasury 279 00:20:49,000 --> 00:20:52,719 Suze: in terms of maturity and you would be getting and 280 00:20:52,729 --> 00:21:01,010 Suze: locking in 5.30 or 5.35 for that entire time, which 281 00:21:01,020 --> 00:21:04,599 Suze: I think is a good period of time. 282 00:21:06,010 --> 00:21:10,750 Suze: That's a lot different than the 4.8 or 4.7 or 283 00:21:10,760 --> 00:21:14,639 Suze: whatever treasuries happen to be at. 284 00:21:15,390 --> 00:21:19,790 Suze: Now. One of the reasons that interest rates in treasuries 285 00:21:19,910 --> 00:21:21,770 Suze: are starting to go down. 286 00:21:22,489 --> 00:21:26,699 Suze: And if you look at the trajectory of treasuries and 287 00:21:26,709 --> 00:21:29,939 Suze: what has been happening out there and why they are 288 00:21:29,949 --> 00:21:33,680 Suze: going down, I think it is very possible that you 289 00:21:33,689 --> 00:21:39,030 Suze: could see the 10 year go to 4.5 or 4.3. 290 00:21:40,150 --> 00:21:43,079 Suze: And so, will it go up again or not? I 291 00:21:43,089 --> 00:21:43,760 Suze: don't know. 292 00:21:44,680 --> 00:21:49,300 Suze: However, that is why I think it's kind of important 293 00:21:49,550 --> 00:21:53,729 Suze: that if you want a certificate of deposit, if you 294 00:21:53,739 --> 00:21:57,579 Suze: want it at Alliant Credit Union, if you want it 295 00:21:57,589 --> 00:22:02,619 Suze: with a CEO, that really cares what CEO asks the question. 296 00:22:02,630 --> 00:22:05,619 Suze: What is it that your listeners want and then gives 297 00:22:05,630 --> 00:22:09,739 Suze: it to me. Are you kidding me? Anyway, I would 298 00:22:09,750 --> 00:22:13,569 Suze: go to my alliant dot com 299 00:22:14,410 --> 00:22:18,119 Suze: and that is what I would do or go into 300 00:22:18,130 --> 00:22:22,430 Suze: your account that you already have there and take advantage 301 00:22:22,439 --> 00:22:25,229 Suze: of this because truthfully given that it's one of the 302 00:22:25,239 --> 00:22:27,829 Suze: highest interest rates around right now, 303 00:22:28,550 --> 00:22:34,589 Suze: I don't know how long that will keep. It's important 304 00:22:34,739 --> 00:22:40,319 Suze: that you really understand what's happening in the economy, why 305 00:22:40,329 --> 00:22:44,930 Suze: it's happening and what you should do about it. So, 306 00:22:44,939 --> 00:22:49,458 Suze: since I have a few minutes left in this podcast, 307 00:22:49,709 --> 00:22:53,909 Suze: you also may be wondering why Suze, because I want 308 00:22:53,920 --> 00:22:56,169 Suze: you to understand how things work. 309 00:22:56,959 --> 00:23:02,659 Suze: Why Susie are interest rates coming down? What are the 310 00:23:02,670 --> 00:23:06,699 Suze: reasons that the markets right now are going up? 311 00:23:07,469 --> 00:23:12,239 Suze: It's very, very simple is that the main reason that 312 00:23:12,250 --> 00:23:17,010 Suze: the yield on the US Treasury note fell on Friday 313 00:23:17,099 --> 00:23:21,930 Suze: was after the jobs report came up. It showed that 314 00:23:21,939 --> 00:23:24,329 Suze: the labor market was cooling. 315 00:23:25,150 --> 00:23:30,800 Suze: It also showed that non-farm payrolls, meaning people who don't 316 00:23:30,810 --> 00:23:36,349 Suze: work on the farms, it grew less than expected. The 317 00:23:36,359 --> 00:23:42,609 Suze: unemployment rate edged a little bit higher and wages, the 318 00:23:42,619 --> 00:23:47,380 Suze: wages that we have to pay people just rose slightly 319 00:23:47,390 --> 00:23:50,869 Suze: but less than what was forecasted. 320 00:23:51,199 --> 00:23:56,260 Suze: And all of that reinforced the fed in thinking that 321 00:23:56,270 --> 00:24:02,300 Suze: they might be done with rate hikes. So when that happened, 322 00:24:02,489 --> 00:24:06,660 Suze: the benchmark for everything, which is what, what is it, everybody, 323 00:24:06,670 --> 00:24:11,260 Suze: it is The 10 year Treasury note, it fell about 324 00:24:11,270 --> 00:24:14,699 Suze: 30 basis points that week. 325 00:24:15,439 --> 00:24:19,939 Suze: Now, if it fell 30 basis points, what does that mean? 326 00:24:19,949 --> 00:24:23,109 Suze: What is a basis point? You have to know these 327 00:24:23,119 --> 00:24:28,459 Suze: things when you listen to what's happening? If 100 basis 328 00:24:28,469 --> 00:24:35,379 Suze: points is 1% 30 basis points is like 0.31% 329 00:24:36,359 --> 00:24:41,619 Suze: but it fell 30 basis points and it fell to 330 00:24:41,630 --> 00:24:45,939 Suze: a level that the 10 year Treasury Note had not 331 00:24:45,949 --> 00:24:50,609 Suze: seen since last September. And it's well below. Now, 332 00:24:51,489 --> 00:24:54,989 Suze: the 2007 highs of 5% 333 00:24:55,819 --> 00:25:00,198 Suze: and less than forecasted, reinforcing bets that the fed is 334 00:25:00,209 --> 00:25:04,359 Suze: done with rate hikes. So all of those things plus 335 00:25:04,369 --> 00:25:06,520 Suze: other stuff going on 336 00:25:07,989 --> 00:25:13,979 Suze: says that we have to seriously pay attention to what 337 00:25:13,989 --> 00:25:17,500 Suze: interest rates are going to do. And so when I 338 00:25:17,510 --> 00:25:21,900 Suze: look at everything and I look at history and I 339 00:25:21,910 --> 00:25:27,569 Suze: look that right now, we have essentially a flat yield curve. 340 00:25:29,020 --> 00:25:32,319 Suze: We can't take it for granted that we're not going 341 00:25:32,329 --> 00:25:36,718 Suze: to be in a recession because I still think months 342 00:25:36,729 --> 00:25:41,760 Suze: from now it's pretty much pointing that way. So you 343 00:25:42,439 --> 00:25:46,989 Suze: have to not take anything for granted. You have to 344 00:25:47,000 --> 00:25:49,040 Suze: be on top of your money. You have to know 345 00:25:49,050 --> 00:25:53,560 Suze: where it's invested, you have to take advantage of certain things. 346 00:25:53,780 --> 00:25:56,569 Suze: And one thing that is ok for you to be 347 00:25:56,579 --> 00:25:57,958 Suze: taking advantage of 348 00:25:58,300 --> 00:26:02,839 Suze: is the opportunities that the stock market is presenting when 349 00:26:02,849 --> 00:26:05,479 Suze: the stock market goes down. 350 00:26:06,430 --> 00:26:09,448 Suze: Because if you listen just last week to some of 351 00:26:09,459 --> 00:26:12,030 Suze: the stocks that I said as well as some of 352 00:26:12,040 --> 00:26:15,229 Suze: the stocks that I said on the CNBC segment that 353 00:26:15,239 --> 00:26:18,619 Suze: I did. Some of those stocks are already up 20% 354 00:26:18,630 --> 00:26:19,770 Suze: or more. 355 00:26:20,760 --> 00:26:25,579 Suze: So there's opportunities everywhere but you have to know 356 00:26:26,369 --> 00:26:29,969 Suze: where to go, what to do 357 00:26:30,760 --> 00:26:34,819 Suze: and to always see the sun rise and the sun set. 358 00:26:35,469 --> 00:26:38,250 Suze: So for now, there's only one thing that I want 359 00:26:38,260 --> 00:26:43,010 Suze: you to say every single day and that is today. 360 00:26:43,020 --> 00:26:44,329 Suze: Wherever I go, 361 00:26:45,089 --> 00:26:50,589 Suze: I will create a more peaceful, joyful and loving world 362 00:26:51,099 --> 00:26:55,109 Suze: and I promise you if you do that, you will 363 00:26:55,119 --> 00:26:57,589 Suze: be unstoppable.