1 00:00:00,080 --> 00:00:01,240 Speaker 1: On the country. 2 00:00:02,000 --> 00:00:04,120 Speaker 2: I need to know that weather in traffic. Listen, then 3 00:00:04,200 --> 00:00:08,119 Speaker 2: you'll know. On fifty five KRS the talk station. 4 00:00:10,360 --> 00:00:13,880 Speaker 1: Eight'll five fifty five kr ce DE Talk Station, Happy Monday. 5 00:00:14,480 --> 00:00:17,360 Speaker 1: Thanks to all We're financial for loaning out Brian James 6 00:00:17,480 --> 00:00:20,120 Speaker 1: Talk Money Matters. It's time for Money Monday with Brian James. 7 00:00:20,120 --> 00:00:22,119 Speaker 1: Welcome back, Brian, Hope. You had a wonderful weekend. Just 8 00:00:22,160 --> 00:00:23,360 Speaker 1: ignore the Bengals. 9 00:00:23,680 --> 00:00:27,080 Speaker 2: Yeah. We usually start with sports only, but I'm lost. 10 00:00:27,120 --> 00:00:28,520 Speaker 2: I'm just kind of wandering. I don't know what. How 11 00:00:28,520 --> 00:00:30,080 Speaker 2: do we kick this off here today? Yeah? 12 00:00:30,160 --> 00:00:31,840 Speaker 1: Did you have any did you have any hope with 13 00:00:31,920 --> 00:00:35,000 Speaker 1: the so called late game rally? I mean, oh my god, 14 00:00:35,000 --> 00:00:36,800 Speaker 1: the Bengals just got a touchdown. We're going to think 15 00:00:36,800 --> 00:00:38,360 Speaker 1: they had like three minutes left in the game. My 16 00:00:38,400 --> 00:00:40,239 Speaker 1: wife looked at she goes like, they're gonna be able 17 00:00:40,280 --> 00:00:41,120 Speaker 1: to come back from this. 18 00:00:41,440 --> 00:00:43,680 Speaker 2: Wow, the Bengals have figured out to prevent defense and 19 00:00:43,680 --> 00:00:45,600 Speaker 2: we're able to score twice when they were down by 20 00:00:45,640 --> 00:00:48,240 Speaker 2: four scores. Yeah, somehow that's not exciting. 21 00:00:48,280 --> 00:00:51,320 Speaker 1: And thank god the opposing team does commit some penalties 22 00:00:51,360 --> 00:00:54,240 Speaker 1: resulting in or nearing to our benefit. Otherwise, you know, 23 00:00:54,320 --> 00:00:55,800 Speaker 1: you don't even have a glimmer of hope anyway. 24 00:00:56,200 --> 00:00:59,080 Speaker 2: Brian James, Who day, Brian Whoday is what we're really 25 00:00:59,120 --> 00:00:59,840 Speaker 2: trying to say here? 26 00:01:00,040 --> 00:01:00,400 Speaker 1: It is? 27 00:01:00,560 --> 00:01:01,640 Speaker 2: It is all right now. 28 00:01:01,680 --> 00:01:03,520 Speaker 1: I'm looking at the stat at the front of the 29 00:01:03,520 --> 00:01:06,960 Speaker 1: Wall Street Jonal right now. Dal Jones futures up a scosh, 30 00:01:07,080 --> 00:01:10,319 Speaker 1: SMP up a scosh. Nasdaq futures up a scosh. Looks 31 00:01:10,360 --> 00:01:13,440 Speaker 1: like everybody's ignoring the government shutdown. I guess it doesn't 32 00:01:13,480 --> 00:01:17,200 Speaker 1: impact the stock market, or does it? Brian James, Well, and. 33 00:01:17,280 --> 00:01:20,279 Speaker 2: Any headline like that is you can't say it doesn't 34 00:01:20,280 --> 00:01:22,839 Speaker 2: have an impact, because these are things that do trickle 35 00:01:22,880 --> 00:01:26,640 Speaker 2: down eventually, but these aren't immediate impact. We've had shutdowns, 36 00:01:26,640 --> 00:01:29,880 Speaker 2: shutdowns before. This is not a new thing. It's just 37 00:01:29,920 --> 00:01:33,840 Speaker 2: a temper tantrum that happens pretty regularly, like clockwork. Once 38 00:01:33,880 --> 00:01:36,240 Speaker 2: we get in certain political situations. We got to run 39 00:01:36,280 --> 00:01:38,480 Speaker 2: the football back and forth. But no, this is not 40 00:01:38,560 --> 00:01:41,959 Speaker 2: something we're overly concerned about having a major major impact 41 00:01:42,040 --> 00:01:45,959 Speaker 2: on the overall government so that the overall stock market. 42 00:01:46,040 --> 00:01:46,200 Speaker 1: Rather. 43 00:01:46,240 --> 00:01:48,760 Speaker 2: The longest shutdown we ever had was in twenty eighteen, 44 00:01:48,800 --> 00:01:50,920 Speaker 2: and that lasted about thirty five days. The rest of 45 00:01:50,960 --> 00:01:53,720 Speaker 2: them average about five to seven days, So who knows 46 00:01:53,760 --> 00:01:55,480 Speaker 2: where we're going to be. We're already several days into 47 00:01:55,520 --> 00:01:57,440 Speaker 2: this one, and it doesn't seem to be any much 48 00:01:57,480 --> 00:01:59,200 Speaker 2: willingness to come to the table. But it does not 49 00:01:59,360 --> 00:02:02,480 Speaker 2: benefit anyone to permanently shut down the government. That doesn't 50 00:02:02,480 --> 00:02:05,040 Speaker 2: help either side, no matter what, where, which aislier, or 51 00:02:05,040 --> 00:02:07,480 Speaker 2: which side of the ASL you're on. But so so 52 00:02:07,560 --> 00:02:10,440 Speaker 2: the anticipation is that eventually we're going to sort ourselves 53 00:02:10,480 --> 00:02:12,640 Speaker 2: out and come to some kind of begrudging agreement and 54 00:02:12,680 --> 00:02:13,560 Speaker 2: move on with our lives. 55 00:02:13,600 --> 00:02:16,320 Speaker 1: Well, I've seen the cost of the government shutdown, you know, 56 00:02:16,440 --> 00:02:18,919 Speaker 1: translated into like the impact on the economy that grow 57 00:02:19,200 --> 00:02:24,959 Speaker 1: GDP like fifteen billion dollars a week. I mean, part 58 00:02:24,960 --> 00:02:26,920 Speaker 1: of me wants to suggest that I did earlier in 59 00:02:26,919 --> 00:02:29,679 Speaker 1: the program that well, you know, there's the make work 60 00:02:29,720 --> 00:02:32,360 Speaker 1: that the government creates. In other words, you know, they 61 00:02:32,639 --> 00:02:37,880 Speaker 1: they create opportunities and create new businesses from a whole cloth. 62 00:02:37,919 --> 00:02:40,160 Speaker 1: I mean, you know, tell people you have to capture carbon. 63 00:02:40,240 --> 00:02:41,600 Speaker 1: The next thing, you know, there's a whole bunch of 64 00:02:41,600 --> 00:02:44,720 Speaker 1: businesses popping up that are serving the purpose of capturing carbon, 65 00:02:44,760 --> 00:02:48,239 Speaker 1: which wasn't even an issue five minutes prior, so they 66 00:02:48,240 --> 00:02:51,160 Speaker 1: do impact what we do and how we live our lives. 67 00:02:51,440 --> 00:02:53,840 Speaker 1: Brian I was arguing about the tax code. How many 68 00:02:53,919 --> 00:02:56,480 Speaker 1: accountants are employed because the tax code is so blank 69 00:02:56,520 --> 00:02:57,360 Speaker 1: and complicated. 70 00:02:57,520 --> 00:03:00,440 Speaker 2: Yeah, it was three presidential elections to go on that 71 00:03:00,480 --> 00:03:02,360 Speaker 2: specific topic. I believe that we were all going to 72 00:03:02,360 --> 00:03:04,360 Speaker 2: be doing them on index cards. He did kind of 73 00:03:04,400 --> 00:03:06,720 Speaker 2: go away. It did. The Into It lobby had an 74 00:03:06,720 --> 00:03:08,200 Speaker 2: awful lot to do with that. Into It being the 75 00:03:08,200 --> 00:03:09,280 Speaker 2: company behind TurboTax. 76 00:03:09,360 --> 00:03:12,320 Speaker 1: There you go and an entire multi multi Can you 77 00:03:12,360 --> 00:03:14,840 Speaker 1: imagine how much impact of the gross domestic product if 78 00:03:14,880 --> 00:03:17,359 Speaker 1: you got rid of accountants and the need for them, 79 00:03:17,400 --> 00:03:19,880 Speaker 1: because you well turned the tax code into something that's 80 00:03:19,919 --> 00:03:21,880 Speaker 1: easy to do by yourself without any assistance. 81 00:03:22,360 --> 00:03:25,080 Speaker 2: They can't do that. Oh my god, we all die. 82 00:03:25,440 --> 00:03:29,799 Speaker 2: The federal government is the largest customer of everybody's business 83 00:03:29,800 --> 00:03:32,320 Speaker 2: on the face of the earth. It simply is, there's 84 00:03:32,360 --> 00:03:34,680 Speaker 2: just that much money that circulates through the United States 85 00:03:34,680 --> 00:03:39,320 Speaker 2: federal government. So yes, as these as we slow things down, 86 00:03:39,480 --> 00:03:40,800 Speaker 2: then you know, we have a lot of people who 87 00:03:40,840 --> 00:03:43,080 Speaker 2: are now unemployed because the departments were shut down. Some 88 00:03:43,120 --> 00:03:44,880 Speaker 2: of them are coming back to work because courts are 89 00:03:44,960 --> 00:03:46,800 Speaker 2: ruling that they shouldn't have been unemployed in the first place. 90 00:03:46,920 --> 00:03:50,800 Speaker 2: I'm referring, of course, to federal workers here just during 91 00:03:50,800 --> 00:03:53,160 Speaker 2: this year as we've shut things down, So yeah, there's 92 00:03:53,200 --> 00:03:56,240 Speaker 2: definitely an impact there. And so this government shut down 93 00:03:56,280 --> 00:03:59,440 Speaker 2: started on October first, and it is already silenced that 94 00:03:59,480 --> 00:04:02,160 Speaker 2: most sequential release of this month, that is the September 95 00:04:02,200 --> 00:04:05,080 Speaker 2: Employment report. So if this lasts for three more weeks, 96 00:04:05,080 --> 00:04:07,600 Speaker 2: the September CPI inflation numbers are also going to have 97 00:04:07,640 --> 00:04:10,480 Speaker 2: to be withheld, and the October labor survey is not 98 00:04:10,520 --> 00:04:12,520 Speaker 2: going to get announced either, because we don't do these 99 00:04:12,520 --> 00:04:15,280 Speaker 2: things anymore during a shutdown. So we're thinking this is 100 00:04:15,320 --> 00:04:18,960 Speaker 2: pretty much transitory. We've been through this before, and prior 101 00:04:19,000 --> 00:04:22,280 Speaker 2: episodes of shutdowns suggest that these furloughed workers will come 102 00:04:22,320 --> 00:04:25,000 Speaker 2: back with back pay, so that that is what has 103 00:04:25,000 --> 00:04:26,880 Speaker 2: happened in the past. So you're exactly correct. A call 104 00:04:26,920 --> 00:04:29,080 Speaker 2: out if we're not doing things and that means money 105 00:04:29,120 --> 00:04:31,760 Speaker 2: is not circulating the way it normally does. That is 106 00:04:31,800 --> 00:04:34,800 Speaker 2: absolutely true. But historically speaking, we've brought these workers back 107 00:04:34,839 --> 00:04:38,080 Speaker 2: and given them their backpay, so that should settle itself 108 00:04:38,120 --> 00:04:38,839 Speaker 2: out well. 109 00:04:38,880 --> 00:04:41,159 Speaker 1: And you know, I know the blame game is being pointed, 110 00:04:41,160 --> 00:04:43,880 Speaker 1: and I think at least in so far as US 111 00:04:43,960 --> 00:04:47,080 Speaker 1: keeping continuing funding levels from last year's budget levels, those 112 00:04:47,080 --> 00:04:50,120 Speaker 1: are the Democrats numbers. That seems to be the right 113 00:04:50,160 --> 00:04:52,599 Speaker 1: step for the Republicans. Dude, we're giving you everything you 114 00:04:52,640 --> 00:04:54,960 Speaker 1: wanted last year, and we're going to continue that until 115 00:04:55,160 --> 00:04:58,720 Speaker 1: and here's my problem, we finish up the twelve appropriations bill. 116 00:04:58,839 --> 00:05:00,520 Speaker 1: So both sides are blaming me because they don't do 117 00:05:00,560 --> 00:05:03,359 Speaker 1: their damn job. They haven't done to twelve appropriations bills 118 00:05:03,520 --> 00:05:06,120 Speaker 1: since like nineteen ninety seven or something crazy like that, 119 00:05:06,240 --> 00:05:08,440 Speaker 1: so you know, damn all of them. 120 00:05:08,760 --> 00:05:10,680 Speaker 2: Yeah, I completely agree. I think I think we've just 121 00:05:10,760 --> 00:05:14,080 Speaker 2: had a point of just just absolute dysfunction. The necessity 122 00:05:14,160 --> 00:05:18,039 Speaker 2: of moving forward will force a break at some point. 123 00:05:18,080 --> 00:05:20,159 Speaker 2: Somebody's going to have to blink, because this is just 124 00:05:20,200 --> 00:05:22,840 Speaker 2: one gigantic game of chicken. We can't shut down the 125 00:05:22,880 --> 00:05:25,800 Speaker 2: federal government for months upon months or years upon years. 126 00:05:25,800 --> 00:05:27,320 Speaker 2: It simply isn't going to work that way, and it's 127 00:05:27,360 --> 00:05:30,680 Speaker 2: going to hurt everyone, which means nobody gets reelected. That's 128 00:05:30,680 --> 00:05:31,920 Speaker 2: what we're doing right now. I think we're in the 129 00:05:31,960 --> 00:05:34,160 Speaker 2: phase of this where we have to fight, fight, fight, fight, 130 00:05:34,200 --> 00:05:37,400 Speaker 2: fight so that and give no ground whatsoever so that 131 00:05:37,400 --> 00:05:39,320 Speaker 2: we will get reelected. We haven't hit the point yet 132 00:05:39,320 --> 00:05:42,359 Speaker 2: where voters demand, hey, get together and sort this stuff 133 00:05:42,360 --> 00:05:43,840 Speaker 2: out so we can all move on with our lives. 134 00:05:43,920 --> 00:05:46,880 Speaker 2: Right now, everybody is simply posturing themselves for their own reelections. 135 00:05:46,920 --> 00:05:49,400 Speaker 1: Well, and going back to the word, eventually, the markets 136 00:05:49,400 --> 00:05:54,159 Speaker 1: will eventually start to react to this shutdown. Obviously it 137 00:05:54,160 --> 00:05:55,880 Speaker 1: hasn't happened yet. I don't know what they're going to 138 00:05:55,920 --> 00:05:58,120 Speaker 1: do this week. But assuming for the sake of discussion, 139 00:05:58,160 --> 00:06:01,679 Speaker 1: we have to look back to that longest government shutdown period. 140 00:06:01,760 --> 00:06:04,080 Speaker 1: How long did it take, if you recall, for the 141 00:06:04,120 --> 00:06:07,400 Speaker 1: markets to actually reflect the shutdown in the numbers. 142 00:06:08,120 --> 00:06:11,039 Speaker 2: So it really wasn't that big of a deal. In 143 00:06:11,400 --> 00:06:13,640 Speaker 2: back in twenty eighteen when when the federal government shut 144 00:06:13,640 --> 00:06:15,960 Speaker 2: down for just a few weeks, well thirty five days 145 00:06:16,000 --> 00:06:18,520 Speaker 2: or so it was. So that was the longest one 146 00:06:18,520 --> 00:06:20,800 Speaker 2: in history, and it did have a real impact, but 147 00:06:20,839 --> 00:06:23,680 Speaker 2: it was pretty temporary. So the shutdown started December twenty 148 00:06:23,720 --> 00:06:26,920 Speaker 2: second of eighteen and ended January twenty fifth of nineteen, 149 00:06:27,440 --> 00:06:30,159 Speaker 2: and this was over, we were already in a broader 150 00:06:30,160 --> 00:06:32,360 Speaker 2: market sell off that was happening due to trade tensions 151 00:06:32,360 --> 00:06:35,400 Speaker 2: and federal rate hikes. In December of twenty eighteen, that month, 152 00:06:35,440 --> 00:06:37,800 Speaker 2: the S and P five hundred had dropped nearly ten percent, 153 00:06:38,320 --> 00:06:40,320 Speaker 2: and that was the worst December since the Great Depression 154 00:06:40,320 --> 00:06:43,000 Speaker 2: at that time. But that was before the actual shutdown, right, 155 00:06:43,200 --> 00:06:45,960 Speaker 2: So by late January of twenty nineteen, when it was over, 156 00:06:46,000 --> 00:06:47,800 Speaker 2: the market had come back sharply. The S and P 157 00:06:47,880 --> 00:06:50,839 Speaker 2: five hundred rebounded about eight percent within two weeks, and 158 00:06:50,880 --> 00:06:53,720 Speaker 2: it just looked more It looked at that time more 159 00:06:53,880 --> 00:06:57,120 Speaker 2: like a temporary market swing. Where we always talk about 160 00:06:57,120 --> 00:06:59,919 Speaker 2: the market can handle bad news. It loves good news. 161 00:07:00,120 --> 00:07:02,800 Speaker 2: What it can't handle, what it absolutely hates is no news. 162 00:07:02,960 --> 00:07:06,080 Speaker 2: So while we're wondering exactly what's going on, the market 163 00:07:06,120 --> 00:07:08,480 Speaker 2: will wander and money will find its way to less 164 00:07:08,560 --> 00:07:11,200 Speaker 2: risky assets until we can tell exactly what's coming till 165 00:07:11,200 --> 00:07:12,840 Speaker 2: we can kind of see through the fog a little bit. 166 00:07:12,880 --> 00:07:15,800 Speaker 1: So once the government shutdowns over that quote unquote threat 167 00:07:15,840 --> 00:07:19,280 Speaker 1: to the economy is alleviated and things returned to normal. 168 00:07:19,800 --> 00:07:22,240 Speaker 1: Once the government opens back up. Under the twenty nineteen law, 169 00:07:22,280 --> 00:07:24,320 Speaker 1: every federal employee is going to get their back pay. 170 00:07:24,400 --> 00:07:26,520 Speaker 1: They're not going to be deprived to pay. So that's 171 00:07:26,560 --> 00:07:28,440 Speaker 1: over with. When we reflect back on all the government 172 00:07:28,440 --> 00:07:30,280 Speaker 1: shutdowns that we've lived through and even knows that we 173 00:07:30,320 --> 00:07:32,880 Speaker 1: haven't personally lived through, we see that the world did 174 00:07:32,880 --> 00:07:35,800 Speaker 1: not end and everything kind of came back to status quo. 175 00:07:35,960 --> 00:07:41,200 Speaker 1: So there's no I mean, to the average my average listener, 176 00:07:41,400 --> 00:07:43,960 Speaker 1: they're like, screw it, I don't care that the government 177 00:07:44,000 --> 00:07:46,680 Speaker 1: shut down because it always goes back to the way 178 00:07:46,680 --> 00:07:48,600 Speaker 1: it was beforehand and nobody ultimately gets hurt. 179 00:07:48,760 --> 00:07:51,280 Speaker 2: Yeah, and I am your average listener. I am my 180 00:07:51,400 --> 00:07:53,160 Speaker 2: own client, and that's the way I think about my 181 00:07:53,200 --> 00:07:55,320 Speaker 2: own family and my own dollars. There's nothing going on 182 00:07:55,360 --> 00:07:57,280 Speaker 2: in the headlines right now that causes me to say, 183 00:07:57,320 --> 00:07:59,120 Speaker 2: you know what, I really need to go deal with 184 00:07:59,160 --> 00:08:02,480 Speaker 2: my portfolio or something different, change my financial life around that. 185 00:08:02,480 --> 00:08:04,400 Speaker 2: That's just not the case. This is no fun to 186 00:08:04,440 --> 00:08:06,560 Speaker 2: go through and it's gonna hurt. There's no way, there's 187 00:08:06,880 --> 00:08:09,160 Speaker 2: no sacrifice that's gonna be made. So, for example, in 188 00:08:09,200 --> 00:08:12,240 Speaker 2: that year, the estimate is that by federal workers missing 189 00:08:12,320 --> 00:08:15,000 Speaker 2: those paychecks, even though they got backpay, that still pulled 190 00:08:15,040 --> 00:08:18,280 Speaker 2: about about eleven billion dollars out of the GDP. That quarter, 191 00:08:19,080 --> 00:08:22,160 Speaker 2: but about about eight billion of it was recovered when 192 00:08:22,160 --> 00:08:24,920 Speaker 2: those paychecks finally went out again, meaning the net loss 193 00:08:25,000 --> 00:08:27,800 Speaker 2: was three billion dollars worth of economic activity. That is 194 00:08:27,880 --> 00:08:31,720 Speaker 2: nothing when we talk about trillions. So I'm not holding 195 00:08:31,760 --> 00:08:33,960 Speaker 2: my breath that there's really gonna be anything all that momentous. 196 00:08:33,960 --> 00:08:35,520 Speaker 2: Don't run around and change your four O one K 197 00:08:35,679 --> 00:08:36,600 Speaker 2: based on these headlines. 198 00:08:36,800 --> 00:08:39,439 Speaker 1: Well, and I suppose it suggests to politicians who think 199 00:08:39,440 --> 00:08:41,400 Speaker 1: they're going to get some sort of leg up based 200 00:08:41,440 --> 00:08:46,960 Speaker 1: upon the government shutdown being someone else's fault. We don't 201 00:08:47,000 --> 00:08:49,480 Speaker 1: care enough out here about the government shutdown to make 202 00:08:49,520 --> 00:08:52,000 Speaker 1: that resonate as a political message. I know it's politics 203 00:08:52,000 --> 00:08:53,959 Speaker 1: brought out money, Brian, but that's kind of what I'm 204 00:08:53,960 --> 00:08:54,680 Speaker 1: concluding here. 205 00:08:55,160 --> 00:08:56,640 Speaker 2: Yeah, I would. I would say that's the case. Now 206 00:08:56,760 --> 00:08:59,520 Speaker 2: this drags on and on and on, then absolutely it 207 00:08:59,559 --> 00:09:01,600 Speaker 2: will start to trickle through. That's when people are going 208 00:09:01,640 --> 00:09:03,000 Speaker 2: to start to notice. But right now and then, I 209 00:09:03,040 --> 00:09:04,959 Speaker 2: think the first people place people would see that is 210 00:09:05,000 --> 00:09:06,880 Speaker 2: in there for in case, because the market would start 211 00:09:06,880 --> 00:09:08,439 Speaker 2: to say, you know what, this has gone on too long. 212 00:09:08,920 --> 00:09:10,840 Speaker 2: We're going to pull back here a little bit. But 213 00:09:10,880 --> 00:09:12,640 Speaker 2: that is not We're nowhere near that stage right now. 214 00:09:12,800 --> 00:09:15,120 Speaker 1: But we may be near the cost of living adjustment 215 00:09:15,120 --> 00:09:18,439 Speaker 1: and Social Security and maybe, just maybe this shutdown may 216 00:09:18,520 --> 00:09:20,719 Speaker 1: have an impact on snapping wick benefits. Brian's going to 217 00:09:20,760 --> 00:09:22,959 Speaker 1: answer those two questions in the next segment. Stick around. 218 00:09:23,360 --> 00:09:25,200 Speaker 1: It's just shy of eight fifteen right now, and it's 219 00:09:25,240 --> 00:09:27,760 Speaker 1: opportunity for you to mention wall Zimmer Heating and cooling. 220 00:09:27,800 --> 00:09:29,679 Speaker 1: Who's been the trusted name, hey Monday with all the 221 00:09:29,920 --> 00:09:33,640 Speaker 1: financials Brian Jane financial planner he is, and someone who's 222 00:09:33,640 --> 00:09:35,240 Speaker 1: going to tell about this, tell us about this government 223 00:09:35,240 --> 00:09:37,599 Speaker 1: shutdown is going to impact social Security, is going to 224 00:09:37,720 --> 00:09:40,280 Speaker 1: impact SNAP and work benefits. Let's start with social Security. 225 00:09:41,080 --> 00:09:44,280 Speaker 1: The Social Security recipients are eligible for a nice sizable 226 00:09:44,320 --> 00:09:47,040 Speaker 1: cost of living adjustment. Unlike Joe Strecker, they get one, 227 00:09:47,120 --> 00:09:49,640 Speaker 1: but the Bureau of Labor Statistics has to do some 228 00:09:49,760 --> 00:09:52,880 Speaker 1: number crunching before that can happen. I guess the BLS 229 00:09:52,960 --> 00:09:55,040 Speaker 1: is kind of shut down during the shutdown, so we 230 00:09:55,080 --> 00:09:56,760 Speaker 1: aren't going to get the stats needed to do a 231 00:09:56,800 --> 00:09:57,679 Speaker 1: COLA adjustment. 232 00:09:58,080 --> 00:10:00,600 Speaker 2: Yeah, go figure, right, So as soon as as soon 233 00:10:00,640 --> 00:10:02,719 Speaker 2: as we need the we need some new numbers here. 234 00:10:02,760 --> 00:10:04,840 Speaker 2: We don't have them because we did choose to not 235 00:10:04,920 --> 00:10:08,480 Speaker 2: report them here very recently. So this is good. So 236 00:10:08,520 --> 00:10:11,120 Speaker 2: this shutdown that began October first, that could delay the 237 00:10:11,160 --> 00:10:14,080 Speaker 2: announcement of the twenty twenty six Social Security COLA cost 238 00:10:14,120 --> 00:10:16,280 Speaker 2: of living adjustments that normally happens right in the middle 239 00:10:16,280 --> 00:10:18,679 Speaker 2: of October. And like you said, it's a Bureau of 240 00:10:18,720 --> 00:10:22,520 Speaker 2: Labor Statistics. They were told to suspend data collection until 241 00:10:22,520 --> 00:10:26,120 Speaker 2: we can sort things out, supposedly and the specifically for 242 00:10:26,200 --> 00:10:28,839 Speaker 2: the September CPI. That's the last piece we need to 243 00:10:29,960 --> 00:10:32,719 Speaker 2: finish off that COLA calculation. Now importantly, I want to 244 00:10:32,720 --> 00:10:34,840 Speaker 2: make sure that that nobody is hearing me saying that 245 00:10:34,920 --> 00:10:35,719 Speaker 2: checks aren't going to go out. 246 00:10:35,720 --> 00:10:37,640 Speaker 1: That's got anohing no no, no, no no no, yeah, yeah, 247 00:10:37,760 --> 00:10:41,640 Speaker 1: very important qualification. You will get your Social Security check, 248 00:10:42,000 --> 00:10:44,360 Speaker 1: it just may not be increased for the cola. 249 00:10:44,400 --> 00:10:45,560 Speaker 2: But how much money. 250 00:10:45,679 --> 00:10:47,480 Speaker 1: Let's just cut to the chase on this one, Brian, 251 00:10:47,520 --> 00:10:49,720 Speaker 1: because I saw the article that you provided in connection 252 00:10:49,800 --> 00:10:52,880 Speaker 1: with this. You know I seniors are entitled to this. 253 00:10:52,960 --> 00:10:55,680 Speaker 1: It's going to be delayed. It'll probably come up eventually 254 00:10:55,679 --> 00:10:58,280 Speaker 1: when the government opens back up. But can you live 255 00:10:58,360 --> 00:11:01,800 Speaker 1: without maybe fifty four dollars additional money? In your payment 256 00:11:01,840 --> 00:11:02,320 Speaker 1: each month. 257 00:11:02,480 --> 00:11:05,080 Speaker 2: Yeah, let's recall that this this wasn't a whopper that 258 00:11:05,160 --> 00:11:07,600 Speaker 2: was coming anyway. So analysts had already been projecting about 259 00:11:07,640 --> 00:11:10,280 Speaker 2: a two point seven to two point eight percent increase 260 00:11:10,360 --> 00:11:12,360 Speaker 2: in Social Security, so it wasn't going to be a 261 00:11:12,480 --> 00:11:14,720 Speaker 2: huge change too. Now, now that's a lot for some people. 262 00:11:14,720 --> 00:11:16,880 Speaker 2: I don't mean to say that, no, no, no, every nickel counts. 263 00:11:16,880 --> 00:11:18,880 Speaker 2: But at the same time, this isn't going to put 264 00:11:18,920 --> 00:11:21,920 Speaker 2: somebody on the street instantly. It would be nice if 265 00:11:21,920 --> 00:11:23,559 Speaker 2: we could get our stuff together as a country and 266 00:11:23,559 --> 00:11:25,240 Speaker 2: figure out exactly how we're going to move forward on 267 00:11:25,280 --> 00:11:26,760 Speaker 2: these things. But I guess we're going to go through 268 00:11:26,840 --> 00:11:28,800 Speaker 2: some convulsions before we get there. 269 00:11:28,760 --> 00:11:31,560 Speaker 1: But fundamentally the check will come. A question be how 270 00:11:31,640 --> 00:11:35,800 Speaker 1: much it is. So now moving over to some critical 271 00:11:35,840 --> 00:11:41,200 Speaker 1: service release for some folks, the SNAP Supplemental Assistance Program 272 00:11:41,240 --> 00:11:43,960 Speaker 1: and WICK benefits. How about these because I know some 273 00:11:43,960 --> 00:11:45,760 Speaker 1: people are suggesting they're not going to go through, but 274 00:11:45,920 --> 00:11:47,959 Speaker 1: in other places I've read now they're going to continue, 275 00:11:48,000 --> 00:11:49,040 Speaker 1: just like sis A security. 276 00:11:49,280 --> 00:11:52,000 Speaker 2: Yeah, so there's two different programs happening here. So there's 277 00:11:52,040 --> 00:11:54,840 Speaker 2: SNAP and WICK is the one that's more at risk 278 00:11:54,920 --> 00:11:57,560 Speaker 2: because of the way it works, So WICK stands for women, infants, 279 00:11:57,600 --> 00:12:01,720 Speaker 2: and children, and that basically is very specific to single 280 00:12:01,760 --> 00:12:05,120 Speaker 2: women and children up to age five. This is a 281 00:12:05,200 --> 00:12:08,040 Speaker 2: discretionary program, so this means that it has to be 282 00:12:08,120 --> 00:12:10,760 Speaker 2: voted on yearly from Congress to stay funded. So as 283 00:12:10,800 --> 00:12:13,240 Speaker 2: soon as the government shuts down, it goes away immediately. 284 00:12:13,760 --> 00:12:15,520 Speaker 2: That could run out of funds within one or two 285 00:12:15,559 --> 00:12:17,439 Speaker 2: weeks according on this is from that's from the White 286 00:12:17,480 --> 00:12:20,360 Speaker 2: House's own budget office. That will affect food assistance for 287 00:12:20,360 --> 00:12:23,600 Speaker 2: about six million mothers and young children nationwide. Now, the 288 00:12:23,640 --> 00:12:27,840 Speaker 2: other one is SNAP. That's the Supplemental Nutritional Program and 289 00:12:28,440 --> 00:12:31,080 Speaker 2: all the different states. It's federal money, but the states 290 00:12:31,120 --> 00:12:34,400 Speaker 2: administer it. Some states have their own program called something else, 291 00:12:34,640 --> 00:12:38,480 Speaker 2: so for example, California called SNAP. CalFresh, Ohio simply chooses 292 00:12:38,520 --> 00:12:41,960 Speaker 2: to call SNAP SNAP to keep it simple. So October's payments, 293 00:12:41,960 --> 00:12:44,280 Speaker 2: so these are EBT cards. You see signs at the 294 00:12:44,280 --> 00:12:48,400 Speaker 2: cash register reflecting EBT cards. That's the SNAP program. October's 295 00:12:48,440 --> 00:12:51,160 Speaker 2: payments were already loaded onto those EBT debit cards, so 296 00:12:51,160 --> 00:12:53,199 Speaker 2: it's not going to affect this month. But if Congress 297 00:12:53,200 --> 00:12:56,040 Speaker 2: doesn't act soon, then November's SNAP benefits could be delayed 298 00:12:56,120 --> 00:12:58,480 Speaker 2: or reduced. So if you're on Wick, then you might 299 00:12:58,520 --> 00:13:00,800 Speaker 2: be you might want to start paying attention to the 300 00:13:00,800 --> 00:13:02,560 Speaker 2: headlines here. If you're on Snap, you've got a few 301 00:13:02,559 --> 00:13:03,440 Speaker 2: more weeks. 302 00:13:04,120 --> 00:13:05,480 Speaker 1: Well that's fair enough. 303 00:13:05,920 --> 00:13:07,720 Speaker 2: So ultimately we don't care. 304 00:13:07,840 --> 00:13:09,520 Speaker 1: In the real world, most people are not going to 305 00:13:09,520 --> 00:13:12,280 Speaker 1: be completely impacted by this, probably won't even realize the 306 00:13:12,320 --> 00:13:14,040 Speaker 1: government shut down until it opens back up. 307 00:13:14,040 --> 00:13:14,280 Speaker 2: Again. 308 00:13:14,320 --> 00:13:15,880 Speaker 1: You're a little about your life so the way you 309 00:13:15,920 --> 00:13:19,480 Speaker 1: went about them before the government shut down, So that. 310 00:13:19,520 --> 00:13:22,240 Speaker 2: Is a true statement. Again again, I'm not seeing anything 311 00:13:22,280 --> 00:13:24,559 Speaker 2: here that should cause somebody out to run out there 312 00:13:24,559 --> 00:13:26,880 Speaker 2: and go run their lives differently, to make different decisions. 313 00:13:27,000 --> 00:13:30,319 Speaker 2: These are simply headlines as we go through, everybody getting 314 00:13:30,360 --> 00:13:33,480 Speaker 2: their say in Congress, and hopefully we will get through 315 00:13:33,520 --> 00:13:34,520 Speaker 2: this sooner rather than later. 316 00:13:34,600 --> 00:13:37,200 Speaker 1: Hey, real quick here in a completely different direction, the 317 00:13:37,280 --> 00:13:39,720 Speaker 1: catch up provision of four to one K that changed 318 00:13:39,720 --> 00:13:40,600 Speaker 1: this year, didn't it. 319 00:13:41,480 --> 00:13:43,520 Speaker 2: Yeah, So there was a new rule put in place 320 00:13:44,280 --> 00:13:47,199 Speaker 2: to allow for more people to put in to put 321 00:13:47,240 --> 00:13:49,720 Speaker 2: in more money. So there's now the catch up. The 322 00:13:49,720 --> 00:13:52,800 Speaker 2: way it always was was anybody over fifty could put 323 00:13:52,800 --> 00:13:56,000 Speaker 2: a little more into the program. That's currently an extra 324 00:13:56,080 --> 00:13:59,559 Speaker 2: seventy five hundred dollars if you're over fifty. So that 325 00:13:59,600 --> 00:14:01,920 Speaker 2: basic means that you can put in thirty one thousand 326 00:14:02,000 --> 00:14:04,600 Speaker 2: dollars if you're simply over fifty. That's not new, that's 327 00:14:04,640 --> 00:14:06,840 Speaker 2: been there for a while, right. The super catch up 328 00:14:06,920 --> 00:14:09,720 Speaker 2: this is for if you're between ages sixty and sixty three. 329 00:14:09,760 --> 00:14:12,240 Speaker 2: This is a part of Secure Acts two point zero 330 00:14:13,280 --> 00:14:16,760 Speaker 2: basically says that you can put in another eleven two 331 00:14:16,840 --> 00:14:19,840 Speaker 2: hundred and fifty dollars on top of it. So that's 332 00:14:19,880 --> 00:14:21,640 Speaker 2: the big change that came through there. 333 00:14:23,040 --> 00:14:25,640 Speaker 1: I've always scratched my head over why there was a 334 00:14:25,680 --> 00:14:28,600 Speaker 1: maximum contribution to four oh one K in the program. 335 00:14:28,640 --> 00:14:30,760 Speaker 1: Is that so they ensure that we continue to spend 336 00:14:30,800 --> 00:14:33,120 Speaker 1: money in the economy as opposed to socket away for 337 00:14:33,160 --> 00:14:33,680 Speaker 1: our future. 338 00:14:33,960 --> 00:14:37,240 Speaker 2: My best guess on that, Brian, is that, well, I mean, 339 00:14:37,240 --> 00:14:39,120 Speaker 2: I'm just not a guess. This is why, because if 340 00:14:39,160 --> 00:14:41,160 Speaker 2: you're somebody who has that much cash flow and there 341 00:14:41,200 --> 00:14:42,960 Speaker 2: was no limit on it, then we would be sheltering 342 00:14:43,160 --> 00:14:46,440 Speaker 2: billions of dollars, if not trillions via four oh one 343 00:14:46,520 --> 00:14:50,520 Speaker 2: K retirement plans. So it's there to affect the super 344 00:14:50,560 --> 00:14:52,600 Speaker 2: wealthy from being able to benefit too much from tax 345 00:14:52,600 --> 00:14:55,480 Speaker 2: planning and starving the government of revenue that it needs. 346 00:14:56,440 --> 00:14:58,560 Speaker 1: I think the latter point a little bit more starving 347 00:14:58,600 --> 00:15:03,080 Speaker 1: the government of revenue it needs. Oh, we are financial planner, 348 00:15:03,080 --> 00:15:04,560 Speaker 1: will tell you to live within your means. At least 349 00:15:04,560 --> 00:15:05,240 Speaker 1: that'd be my guests. 350 00:15:05,480 --> 00:15:06,920 Speaker 2: We don't have those at the Federal guide. 351 00:15:07,200 --> 00:15:08,920 Speaker 1: Brian James had to take a cheap shot at the 352 00:15:08,960 --> 00:15:12,160 Speaker 1: federal government's reckless spending. Brian James, all with financial appreciate 353 00:15:12,200 --> 00:15:14,400 Speaker 1: them loading out you every Monday at this time to 354 00:15:14,440 --> 00:15:16,560 Speaker 1: talk money matters. And of course we know there's that 355 00:15:16,720 --> 00:15:20,960 Speaker 1: secret group of women who listen intently every Monday. We're 356 00:15:21,000 --> 00:15:22,200 Speaker 1: hanging on your words. 357 00:15:22,440 --> 00:15:23,920 Speaker 2: We are going to we are going to do it 358 00:15:23,960 --> 00:15:25,600 Speaker 2: and say we got a listener request. We're going to 359 00:15:25,640 --> 00:15:28,480 Speaker 2: put a segment together on credit unions we're interested in 360 00:15:28,520 --> 00:15:30,840 Speaker 2: and some social Security updates. So look forward to that 361 00:15:30,880 --> 00:15:31,600 Speaker 2: in the near future. 362 00:15:31,640 --> 00:15:34,200 Speaker 1: They are anxiously awaiting it. And good morning, ladies, even 363 00:15:34,200 --> 00:15:36,640 Speaker 1: though you do remain anonymous. Brian James, Thanks man, We'll 364 00:15:36,640 --> 00:15:37,200 Speaker 1: talk next month.